FreedomWorks Inc 521349353 2006 031BD087Searchable

Form 990 Department of the Treasury Internal Revenue Service

Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung

benefit trust or private foundation) • The organization may have to use a copy of this return to satisfy state reporting requirements.

A For the 2006 calendar year, or tax year beginning and ending

OMB No 1545-0047

2006 Open to Public

Inspection

B Check,, Please C Name of organization D Employer identification number applicable

use IRS [x]Address label or

FreedomWorks Inc. 52-1349353 change print or DName type

Number and street (or P.O. box 11 ma1l 1s not delivered to street address) .J, Room/suite E Telephone number change See 01rnt1al Specific 601 Pennsvlvania Avenue. NW N. Buildin 700 202-783-3870 return

OF1nal lnstruc-City or town, state or country, and ZIP + 4 F Accountlng method D Cash [xJ Accrual return t1ons

DAmended return Washinaton DC 20004 D Other • (soecoM

DApplocatoon • Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable trusts Hand I are not appltcable to section 527 organizations. pending must attach a completed Schedule A (Form 990 or 990-EZ).

H(a) Is this a group return for affiliates? Dves CxJNo

G Website: ..._www. f reedomworks. ora H(b} If "Yes,' enter number of affiliates• NLA J Organization type (check only one)• [xJ 501(c) ( 4 l..,... (onsertno) D 4947(aH1l or D 521 H(c) Are all affiliates included? N/A Dves DNo

K Check here • D 11 the organization 1s not a 509(a)(3) supporting organization and its gross (If 'No; attach a list.)

H(d) Is this a separate return filed by an or-receipts are normally not more than $25,000. A return 1s not required, but 11 the organization gamzat1on covered by a group ruling? Dves CxJNo chooses to file a return, be sure to file a complete return. I Grouo Exemot1on Number..._ NIA

M Check• D 11 the organization 1s not required to attach L Gross receipts: Add Imes 6b, Bb, 9b, and 10b to lme 12 • 6 165.233. Sch. B (Form 990, 990-EZ, or 990-PF).

I Part 11 Revenue, Expenses, and Changes in Net Assets or Fund Balances 1 Contributions, gifts, grants, and similar amounts received:

a Contributions to donor advised funds 1a

b Direct public support (not included on lme 1a) 1b 5 862.198. c Indirect public support (not included on lme 1a) 1c

d Government contributions (grants) (not included on line 1a) 1d e Total (add Imes 1a through 1d) (cash$ 5i862i198. noncash $ ) 1e 5.862 198.

2 Program service revenue mcludmg government fees and contracts (from Part VII, line 93) 2

3 Membership dues and assessments 3 4 Interest on savings and temporary cash investments 4 25 168. 5 D1v1dends and interest from securities 5

6 a Gross rents See Statement 1 l 6a I 132.918. b Less: rental expenses 6b

Cl) c Net rental income or (loss). Subtract lme 6b from lme 6a 6c 132 918. :,

7 Other investment income (describe • l 7 c ~ 8 a Gross amount from sales of assets other (Al Securities (Bl Other Cl)

a: than inventory Ba

b Less: cost or other basis and sales expenses Sb c Gam or (loss) (attach schedule) Be d Net gam or (loss). Combine line Be, columns (A) and (B) Bd

9 Special events and act1v1t1es (attach schedule). If any amount 1s from gaming, check here • D

a Gross revenue (not including S 01 contnbubons 1eported on lme 1 b) J 9a .J

b Less: direct expenses other than fundratsmg expenses 9b c Net income or (loss) from special events. Subtract line 9b from hne 9a 9c

10 a Gross sales of inventory, less returns and allowances I 1oa I b Less: cost of goods sold 10b c Gross profit or (loss) from sales of inventory (attach schedule). Subtract lme 10b from lme 10a 10c

11 Other revenue (from Part VII, lme 103) - 11 144 949. 12 Total revenue. Add Imes 1e 2 3 4 5 6c 7 Bd 9c, 10c and~ 12 6.165 233. 13 Program services (from lme 44, column (B)) 1 \rU::v'-' v ---- 13 5.461 994.

Cl) E- fQ.1, Cl) 14 Management and general (from lme 44, column (C)) 14 638,331. Cl) c

Fundra1smg (from line 44, column (D)) ~ 'ii 100? ~\ 406 873. Cl) 15 15 Cl. )( 16 Payments to affiliates (attach schedule) 16 w

17 Total exoenses. Add Imes 16 and 44 column (Al \~ ~ff'\(" 17 6.507,198. 18 Excess or (def1c1t) for the year Subtract lme 17 from lme 12 l QL;W~""'"' = - 18 <341 965.

Cl)

Q)'ti 19 Net assets or fund balances at begmnmg of year (from hne 73,""""""' (A)) 19 1. 608 320. >

z~ 20 Other changes m net assets or fund balances (attach explanation) See Statement < 21 Net assets or fund balances at end of year. Combine Imes 18, 19, and 20

623001 01-1s-01 LHA For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

1 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc.

2 20

21

<14.560. >

Form 990 (2006) cf> FREEDOMl Cp

1. 251 795.

Form 990 (2006) FreedomWorks Inc. 52-1349353 Pa e2 Part .II Statement of

Functional Expenses All organizations must complete column (A). Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others.

Do not include amounts reported on /me (A) Total (B) Program (C) Management (D) Fundra1smg 6b, Bb, 9b, 10b, or 16 of Part I services and general

22a Grants paid from donor advised funds

(attach schedule)

(cash $ 0 • noncash S 0. If this amount includes foreign grants, check here .... o 22a

22b Other grants and allocations (attach schedule

(cash $ 0 • noncash $ 0. If this amount includes foreign grants, check here .... D 22b

23 Specific assistance to 1nd1v1duals (attach

schedule) 23

24 Benefits paid to or for members (attach

schedule) 24 25a Compensation of current officers, directors, key

employees, etc. listed m Part V-A St.mt 4 25a 353.612. 198.647. 74 317. 80.648. b Compensation of former officers, directors, key

employees, etc. listed m Part V-B 25b 0. 0. 0. 0 . c Compensation and other d1stnbut1ons, not included

above, to d1squalif1ed persons (as defined under

section 4958(1)(1)) and persons described m

section 4958(c)(3)(B) 25c

26 Salaries and wages of employees not

included on hnes 25a, b, and c 26 561 640. 342,668. 191 771. 27 201. 27 Pension plan contnbut1ons not included on

hnes 25a, b, and c 27 17 528. 11 203. 5 790. 535. 28 Employee benefits not included on lines

25a-27 28 61 196. 37 377. 19 232. 4.587. 29 Payroll taxes 29 53 964. 29,543. 17 642. 6,779. 30 Professional fundra1s1ng fees 30 62 336. 62 336. 31 Accounting fees 31 30 318. 6.755. 23 563. 32 Legal fees 32 80 158. 2 333. 77.825. 33 Supplies 33 8 238. 2 632. 5 311. 295. 34 Telephone 34 45 915. 33 121. 9 505. 3.289. 35 Postage and sh1pp1ng 35 73 442. 10.309. 2 384. 60 749. 36 Occupancy 36 288 621. 158 052. 94 325. 36.244. 37 Equipment rental and maintenance 37 9 967. 5.395. 2 989. 1.583. 38 Pnnt1ng and publications 38 135 877. 30 918. 1 934. 103.025. 39 Travel 39 126 729. 107.206. 9 090. 10.433. 40 Conferences, conventions, and meetings 40 5 439. 5 339. 100. 41 Interest 41

42 Deprec1at1on, depletion, etc. (attach schedule) 42 18 950. 10 375. 6 195. 2.380. 43 Other expenses not covered above (1tem1ze)

a 43a

b 43b

c 43c

d 43d

e 43e f 431 g See Statement 3 43g 4.573.268. 4.407,785. 96 358. 69,125.

44 Total functional expenses. Add Imes 22a through 43g. (Drgamzat1ons completing columns (B)-(D), carry these totals to Imes 13-15) 44 6.507.198. 5.461.994. 638 331. 406.873.

Joint Costs. Check .... D 1f you are following SOP 98·2

Are any Jomt costs from a combined educational campaign and fundra1smg sohc1tallon reported m (B) Program services? .... D Yes [xJ No

If "Yes,' enter (i) the aggregate amount of these Jomt costs$ N /A ; (ii) the amount allocated to Program services $ __ --=-N'--'/-"A=---(iiil the amount allocated to Management and general$ N /A ; and (iv) the amount allocated to Fundra1smg $ N /A g~:1f:;1_11 Form 990 (2006)

2 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOMl

Form 990 2006 FreedomWorks Inc. 52-1349353 Pa e3 Part .Ill Statement of Program Service Accomplishments (See the mstruct,ons.J

Form 990 1s available for public 1nspect1on and, for some people, serves as the primary or sole source of information about a particular organization.

How the public perceives an organization 1n such cases may be determined by the information presented on its return. Therefore, please make sure the

return 1s complete and accurate and fully describes, 1n Part Ill, the organization's programs and accomplishments.

What 1s the organization's primary exempt purpose? .... See Statement 5

All organizations must describe their exempt purpose achievements 1n a clear and concise manner. State the number of

chants served, publications issued, etc. Discuss achievements that are not measurable (Section 501 (c)(3) and (4)

organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others)

a Federal and State Camoaians: Advocacy, research and education on reformina Federal and state oolicies in areas such as taxation social security soendina oolicY, litiaation reform. and other related issues.

!Grants and allocations $ l If this amount includes fore1on orants check here .... b Public Affairs: AdYocacY. research and education on how

reducina Federal reaulations will imorove the economy by disseminatina information throuah orint broadcast media and on-line education.

(Grants and allocations $ l If this amount includes fore1on arants check here

c Other Proarams: Various oroarams aimed at oromotina consumer-focused economic oolicies throuah education and research in both domestic and international economic markets.

(Grants and allocations $ l If this amount includes fore1an arants check here

d

(Grants and allocations $ l If this amount includes fore1on orants check here

e Other program services (attach schedule)

(Grants and allocations $ l If this amount includes fore1on orants check here

f Total of Program Service Expenses (should equal line 44, column (8), Program services)

623021 01-18-07

12160502 739466 FreedomWorks 3

2006.05050 FreedomWorks, Inc.

....

....

....

....

Program Service Expenses

(Required for 501(c)(3) and ( 4) orgs., and

4947(a)(1) trusts; but optional for others.)

D 5 198.677.

D 134 881.

I J 128 436 .

D

D 5,461,994.

Form 990 (2006)

FREEDOMl

Form 990 (2006) FreedomWorks Inc. I Part ,IV I Balance Sheets (See the mstruct,ons.)

Note: Where reqwred, attached schedules and amounts w1thm the descnpt1on column should be for end-of-year amounts only.

45 Cash · non-interest-bearing

46 Savings and temporary cash investments

47 a Accounts receivable 47a 375 690. b Less: allowance for doubtful accounts 47b 2 812.

48 a Pledges receivable 48a

b Less· allowance for doubtful accounts 48b

49 Grants receivable

50 a Receivables from current and former officers, directors, trustees, and

key employees

b Receivables from other d1squahf1ed persons (as defined under section

UI 4958(t)(1)) and persons described 1n section 4958(c)(3 (8) .... Cl)

51 a Other notes and loans receivable I 51 a UI UI

<( b Less: allowance for doubtful accounts 51b

52 Inventories for sale or use

53 Prepaid expenses and deferred charges

54 a Investments - publicly-traded securities Stmt 9 .... Dcost [xJ FMV

b Investments - other securities .... Dcost DFMV

55 a Investments· land, buildings, and

equipment· basis 55a

b Less· accumulated deprec1at1on 55b

56 Investments - other se1

e s1

tatement 6 57 a Land, buildings, and equipment basis 57a 646 330.

b Less· accumulated deprec1at1onStmt 7 57b 511.075. 58 Other assets, including program-related investments

(describe .... Due from related 12arties )

59 Total assets !must eaual hne 74) Add Imes 45 throuah 58

60 Accounts payable and accrued expenses

61 Grants payable

62 Deferred revenue UI Cl) 63 Loans from officers, directors, trustees, and key employees ~ :c 64 a Tax-exempt bond hab1ht1es Ill

b Mortgages and other notes payable ::; 65 Other hab1l1t1es (describe .... See Statement 8 )

66 Total liabilities. Add Imes 60 throuah 65

Organizations that follow SFAS 117, check here .... [xJ and complete Imes

UI 67 through 69 and hnes 73 and 74.

Cl) 67 Unrestricted u c:

68 Temporarily restricted Ill iii Ill 69 Permanently restricted "C

Organizations that do not follow SFAS 117, check here .... Dand c: ~ u.. ... 0

70 UI .... Cl) 71 UI UI <( 72 .... Cl) 73 z

74

623031 01-20-07

complete hnes 70 through 74 .

Capital stock, trust principal, or current funds

Pa1d-1n or capital surplus, or land, building, and equipment fund

Retained earnings, endowment, accumulated income, or other funds

Total net assets or fund balances. Add Imes 67 through 69 or Imes 70 through 72. (Column (A) must equal line 19 and column (B) must equal line 21) Total liabilities and net assets/fund balances. Add Imes 66 and 73

4

(A) Beginning of year

766.128.

473.488.

154.169. 192 039.

357.840.

84.393.

135 938. 2.163 995.

447,259.

108 416.

555 675.

1.158.320. 450 000.

1. 608 320. 2.163.995.

12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc.

52-1349353 Paoe4

(B) End of year

45 288 747. 46

47c 372.878.

48c

49

50a

50b

51c

52

53 273.140. 54a 139 434. 54b

55c

56 0.

57c 135.255.

58 909 610. 59 2.119 064. 60 691 437. 61

62

63

64a

64b

65 175 832.

66 867 269.

67 1.183.457. 68 68 338. 69

70

71

72

73 1. 251 795. 74 2.119.064.

Form 990 (2006)

FREEDOMl

Form990 2006 FreedomWorks Inc. 52-1349353 Pa e5 Part JV-A Reconciliation of Revenue per Audited Financial Statements With Revenue per Return (See the

mstruct,ons.)

a Total revenue, gains, and other support per audited financial statements a 6 150 673. b Amounts included on line a but not on Part I, line 12:

1 Net unrealized gains on investments b1

2 Donated services and use of fac11it1es b2

3 Recoveries of prior year grants b3 4 Other (specify). Net unrealized investment losses b4 <14,560.>

Add lines b1 through b4 b <14 560. c Subtract line b from line a c 6 165 233. d Amounts included on Part I, line 12, but not on line a:

1 Investment expenses not included on Part I, line 6b I d1 I 2 Other (specify): d2

Add lines d1 and d2 d 0. e Total revenue (Part I line 12) Add lines c and d ~ e 6 165.233.

I Part IV-B I Reconciliation of Expenses per Audited Financial Statements With Expenses per Return

a Total expenses and losses per audited f1nanc1al statements a 6 507,198. b Amounts included on line a but not on Part I, line 17

1 Donated services and use of fac11it1es b1

2 Prior year adJustments reported on Part I, line 20 b2

3 Losses reported on Part I, line 20 b3

4 Other (specify). b4 Add lines b1 through b4 b 0.

c Subtract line b from line a c 6,507,198. d Amounts included on Part I, line 17, but not on line a:

1 Investment expenses not included on Part I, line 6b I d1 I 2 Other (specify): d2

Add lines d1 and d2 d 0. e Total exoenses (Part I line 17\ Add lines c and d ~ e 6.507.198.

I Part V-A I Current Officers, Directors, Trustees, and Key Employees (List each person who was an officer, director, trustee, or key employee at any time during the year even 1f they were not compensated.) (See the mstruct,ons.)

(B) Title and average hours (C) Compensation ( D ~Contnbut,ans to (E) Expense (A) Name and address per week devoted to (If not paid, enter e ployee benefit account and plans & deferred pos1t1on ·O· l compensation plans other allowances

Matt Kibbe President 601 Pennsylvania AveJ_NW_#700 North_ Washinaton, DC 20004 18.00 116 755. 8. 021. 4.538. Jugy Mulcahy ______________________ Vice PresideIJ t/Treasur er 601 Pennsylvania AveJ_NW_#700 North_ Washinaton. DC 20004 18.00 53 477. 6.779. 873. Jaci Brown Vice PresideIJ t/Secreta ry 601 Pennsylvania AveJ_NW_#700 North_ Washinaton. DC 20004 18.00 54 013. 6.203. 2 120. Honorable_Richard K._Arm~--------- Board Member 601 Pennsylvania AveJ_NW_#700 North_ Washinaton. DC 20004 4.00 100.833. 0. 0. Honorable_James H._ Burnl~, IV _____ Board Member 601 Pennsylvania AveJ_NW_#700 North_ Washinaton. DC 20004 1. 00 0. 0. o. Thomas Knudsen Board Member 601 Pennsylvania AveJ_NW_#700 North_ Washinaton, DC 20004 1. 00 0. 0. 0 . Richard J._St~hensen ______________ Board Member 601 Pennsylvania AveJ_NW_#700 North_ Washinaton. DC 20004 1. 00 0. 0. 0.

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Form 990 (2006)

623041 01-16-07

5 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

>

Form 990 (2006) FreedomWorks. Inc. 52-1349353 Paae6 I Part .V-A I Current Officers, Directors, Trustees, and Key Employees (continued) Yes No 75 a Enter the total number of officers, directors, and trustees permitted to vote on organization business at board

meetings ~ 7 b Are any officers, directors, trustees, or key employees listed in Form 990, Part V-A, or highest compensated employees

listed 1n Schedule A, Part I, or highest compensated professional and other independent contractors listed 1n Schedule A, Part II-A or 11-8, related to each other through family or business relat1onsh1ps? If "Yes," attach a statement that 1dent1fies the 1nd1v1duals and explains the relat1onsh1p(s) 75b x

c Do any officers, directors, trustees, or key employees listed 1n Form 990, Part V-A, or highest compensated employees listed 1n Schedule A, Part I, or highest compensated professional and other independent contractors listed 1n Schedule A, Part II-A or 11-8, receive compensation from any other organizations, whether tax exempt or taxable, that are related to the organization? See the 1nstruct1ons for the def1nit1on of "related organization." See Statement 11 75c x If "Yes," attach a statement that includes the 1nformat1on described 1n the 1nstruct1ons.

d Does the oraanizat1on have a written conflict of interest ool1cv? 75d x I Part V-B I Former Officers, Directors, Trustees, and Key Employees That Received Compensation or Other

Benefits (If any former officer, director, trustee, or key employee received compensation or other benefits (described below) during the year, hst that person below and enter the amount of compensation or other benefits 1n the appropnate column. See the instructions)

(C) Compensation (D) Contributions to (E) Expense (A) Name and address (B) Loans and Advances (11 not paid, employee benefit account and plans & deferred None enter -0-) compensation rilans other allowances

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------------------------------------------------------------------I Part VI I Other Information (See the mstruct,ons.) Yes No 76 Did the organization make a change 1n its act1v1t1es or methods of conducting act1v1t1es? If "Yes," attach a detailed

statement of each change 76 x 77 Were any changes made 1n the organizing or governing documents but not reported to the IRS? 77 x

If "Yes," attach a conformed copy of the changes.

78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? 7Ba x b If "Yes," has 1t filed a tax return on Form 990-T for this year? N/A 7Bb

79 Was there a liqu1dat1on, d1ssolut1on, term1nat1on, or substantial contraction during the year? If "Yes," attach a statement 79 x BO a Is the organization related (other than by assoc1at1on with a statewide or nat1onw1de organization) through common

membership, governing bodies, trustees, officers, etc , to any other exempt or nonexempt organization? BO a x b If "Yes," enter the name of the organization~ See Statement 10

and check whether 1t 1s D exempt or D nonexempt

81 a Enter direct or indirect political expenditures. (See hne 81 1nstruct1ons) I e1a I 0. b Did the oraanizat1on file Form 1120-POL for this vear? 81b x

Form 990 (2006)

623161/01-18-07


------------ ---

Form 990 (2006) FreedomWorks • Inc. 52-1349353 I Part ,VI I Other Information (continued)

82 a Did the organization receive donated services or the use of materials, equipment, or fac1ht1es at no charge or at substantially

less than fair rental value?

b If "Yes," you may 1nd1cate the value of these items here. Do not include this

amount as revenue 1n Part I or as an expense 1n Part II

(See instructions 1n Part Ill ) I 82b I 83 a Did the organization comply with the pubhc 1nspect1on requirements for returns and exemption apphcat1ons?

NIA

b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? N / A 84 a Did the organization sohc1t any contributions or gifts that were not tax deductible?

b If "Yes," did the organization include with every sol1c1tat1on an express statement that such contributions or gifts were not

tax deductible?

85 501 (c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members?

b Did the organization make only in-house lobbying expenditures of $2,000 or less?

If "Yes" was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a

waiver for proxy tax owed for the prior year.

c Dues, assessments, and s1m1lar amounts from members

d Section 162(e) lobbying and poht1cal expenditures

e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices

f Taxable amount of lobbying and poht1cal expenditures (hne 85d less 85e)

g Does the organization elect to pay the section 6033(e) tax on the amount on hne 85f?

85c

85d

85e

85f

h If section 6033(e)(1 )(A) dues notices were sent, does the organization agree to add the amount on line 85f

to its reasonable estimate of dues allocable to nondeductible lobbying and poht1cal expenditures for the

following tax year?

86 501(c)(7) organizations Enter. a lnit1at1on fees and capital contributions included on

line 12

b Gross receipts, included on line 12, for public use of club fac11it1es

87 501 (c)(12) organizations. Enter· a Gross income from members or shareholders

b Gross income from other sources. (Do not net amounts due or paid to other sources

against amounts due or received from them )

86a

86b

87a

87b

NIA NIA NIA NIA N/A

N/A

NIA NIA NIA

NIA 88 a At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership,

or an entity disregarded as separate from the organization under Regulations sections 301. 7701 ·2 and 301 . 7701 ·3?

If "Yes," complete Part IX

Yes No

82a x

83a X 83b

84a X

84b X 85a X 85b X

8511

85h

88a X b At any time during the year, did the organization, directly or 1nd1rectly, own a controlled entity w1th1n the meaning of

section 512(b)(13)? If "Yes," complete Part XI ~ 88b X 89 a 501 (c)(3) organizations Enter Amount of tax imposed on the organization during the year under:

sect1on4911~ N/A ;sect1on4912~ N/A ;sect1on4955 ~-~N~/=A~----b 501(c)(3) and 501(c)(4) orgamzat,ons Did the organization engage 1n any section 4958 excess benefit

transaction during the year or did 1t become aware of an excess benefit transaction from a prior year?

If "Yes," attach a statement explaining each transaction

c Enter: Amount of tax imposed on the organization managers or d1squalif1ed persons during the year under

sections 4912, 4955, and 4958 ~ 0.

d Enter: Amount of tax on hne 89c, above, reimbursed by the organization ~ 0 •

e All orgamzat,ons At any time during the tax year, was the organization a party to a proh1b1ted tax shelter transaction?

f All organizations Did the organization acquire a direct or 1nd1rect interest 1n any applicable insurance contract?

g For supporting organizations and sponsonng organizations maintaining donor advised funds Did the supporting organization,

or a fund maintained by a sponsoring organization, have excess business holdings at any time during the year? N/ A

89b x

89e x 89f x

8911

90 a List the states with which a copy of this return 1s filed ~---=S'-'e=e;._cS=-=t'-'a=t--=e=-=m==e""n=-t=-....,1=-=2'-----~~-~---------b Number of employees employed 1n the pay period that includes March 12, 2006 I 90b I 2 3

91a Thebooksareincareof~ The Organization Telephoneno.~ (202} 783-3870

Locatedat~ Orqanization's address. Washinoton. DC ZIP+4~20004

b At any time during the calendar year, did the organization have an interest 1n or a signature or other authority over Yes No a f1nanc1al account 1n a foreign country (such as a bank account, securities account, or other f1nanc1al account)? 91b x If "Yes," enter the name of the foreign country ~ NIA See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank

and F1nanc1al Accounts

Form 990 (2006)

623162 / 01-18-07


I

Form 990 2006) FreedomWorks Inc. 52-1349353 ~e8 Part ,VI Other Information (continued) Yes No

c At any time during the calendar year, did the organization ma1nta1n an office outside of the United States? 91c X If "Yes," enter the name of the foreign country ~ _____ N~_A ___________________ _

92 Section 4947(a)(1) nonexempt chantable trusts fl/mg Form 990 m heu of Form 1041- Check here

and enter the amount of tax-exemot interest received or accrued dunna the tax vear ~ I 92 I NIA I Part VII I Analysis of Income-Producing Activities (See the instructions J

Note: Enter gross amounts unless otherwise Unrelated business income Excluded by section 512, 513, or 514 (E)

indicated (A) (B) (C) (D) Related or exempt Business Amount Exclu-

Amount s1on function income 93 Program service revenue· code code

a b

c d

e f Med1care/Med1ca1d payments

g Fees and contracts from government agencies

94 Membership dues and assessments

95 Interest on savings and temporary cash investments 14 25.168. 96 D1v1dends and interest from secunt1es

97 Net rental income or (loss) from real estate.

a debt-financed property

b not debt-financed property 16 132.918. 98 Net rental income or (loss) from personal property

99 Other investment income

100 Gain or (loss) from sales of assets

other than inventory

101 Net income or (loss) from special events

102 Gross profit or (loss) from sales of inventory

103 Other revenue

a List Rental 15 18 443. b Affinity Program 15 126 344. c Other Revenue 01 162. d

e 104 Subtotal (add columns (B), (D), and (E)) 0. 303 035. 0. 105 Total (add line 104, columns (B), (D), and (E)) ~ --~3-=-0..::.3_,_,..::.0..::.3..::.5~. Note: Lme 105 plus /me 1e, Part I, should equal the amount on /me 12, Part I

I Part VIII I Relationship of Activities to the Accomplishment of Exempt Purposes (See the mstruct1ons J Line No Explain how each act1v1ty for which income 1s reported 1n column (E) of Part VII contributed importantly to the accomplishment of the organization's

T exempt purposes (other than by providing funds for such purposes).

I Part IX I Information Regarding Taxable Subsidiaries and Disregarded Entities (See the mstruct1ons.J (A) (BJ (CJ (D) (E)

Name, address, and EIN of colfiorat1on, Percentage of Nature of act1v1t1es Total income End-of-iear partnership, or d1sregarde entity ownership interest asses

Citizens for a Sound % Economv Inc. - 601 % Pennsvlvania Ave. % NW #700N. Washinaton 100% %Dormant I Part X I Information Regarding Transfers Associated with Personal Benefit Contracts (See the mstruct1ons J

(a) Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?

(b) Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?

Note: If 'Yes" to (b), fife Form 8870 and Form 4720 (see mstruct1ons).

623163 01-18-07

8

Dves Dves

[xJ No

[xJ No

Form 990 (2006)

12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

Form990 2006 FreedomWorks Inc. 52-1349353 Pa e9 Part XI Information Regarding Transfers To and From Controlled Entities. Complete only if the organization is a

control/mg organization as defined m section 512(b)(13)

106 Did the reporting organization make any transfers to a controlled entity as defined 1n section 512(b)(13) of the Code? If "Yes,"

complete the schedule below for each controlled ent1tv.

a

b

c

(A) Name, address, of each

controlled entity

Totals

(B) Employer

Identification Number

(C) Description of

transfer

Yes No

(D) Amount of

transfer

x

Yes No 107 Did the reporting organization receive any transfers from a controlled entity as defined in section 512(b)(13) of the Code? If "Yes,"

complete the schedule below for each controlled ent1tv. x

a

b

c

(A) Name, address, of each

controlled entity

Totals

(B) Employer

Identification Number

(C) Description of

transfer

108 Did the organization have a b1nd1ng written contract 1n effect on August 17, 2006, covering the interest, rents, royalties, and

annu1t1es described in auest1on 107 above?

(D) Amount of

transfer

Yes No

x

Please

Sign

Here

Under penalties of pe(Jury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, 1t 1s true, correct, and complete Oeclarat1on of preparer (othzan officer) IS based on all information of which preparer has any knowledge

~ s,,,-(lff!,:' 0 ,;i (i .nl,_, I "''" sf 61_/1)7 11ri.. ~~ :i--1{_ f1. Mu.)c. Jv ~ asu.Yrvr ,.. Type or print name and title ',/

Paid Preparer's llti.. ~ ::::::::> I Date f~r-ck 11 ...... D I Preparer·s SSN or PTIN (See Gen Inst X)

signature ,.. ~ S-2-07 employed...-Preparer's 1-F-.. -m-·s-n-am_e_(_or _________ c ________ c ____ ~----'--..,_~~__,-E-IN~~=~-----------Use Only yours,, Rogers & ompany PLL

seir-employed>, ~8300 Boone Boulevard, Suite 600 address, and z1P+4 Vienna. Virainia 22182 Phone no. ~ ( 7 0 3 ) 8 9 3 - 0 3 0 0

Form 990 (2006)

623164/01-26-07

9 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

2006 DEPRECIATION AND AMORTIZATION REPORT

Form 990 Page 2

Asset No

628102 07-28-06

Description

Various property and lequipment * Total 990 Page 2 Depr

Date Acquired

Va ri es

Method Life Line Unad1usted No Cost Or Basis

SL . 000 16 646,330 .

646,330.

(D) - Asset disposed

20

990

. Bus% Reduction In Basis For Accumulated Current Current Year Exel Basis Deprec1at1on Deprec1at1on Sec 179 Deduction •

646,330. 511,075. o.

0. 646,330. 511,075. o. o.

• ITC, Section 179, Salvage, Bonus, Commercial Rev1tahzat1on Deduction, GO Zone

FreedomWorks, Inc. 52-1349353

Form 990 Rental Income Statement 1

Activity Gross Kind and Location of Property Number Rental Income

Subleasing of facilities 1 132,918.

Total to Form 990, Part I, line 6a 132,918.

Form 990 Other Changes in Net Assets or Fund Balances Statement 2

Description Amount

Net unrealized loss on investments <14,560.>

Total to Form 990, Part I, line 20 <14,560.>

Form 990 Other Expenses Statement 3

Description

Professional fees Advertising Insurance Noncapital expenses Rentals Miscellaneous Novelties Dues Photography Subscriptions Database management Computer services Clipping services Payroll fees

Total to Fm 990, ln 43

(A)

Total

130,226. 4,285,167.

21,564. 8,311.

16,122. 22,605.

525. 2,029.

310. 7,255.

49,706. 26,134.

295. 3,019.

4,573,268.

( B) Program Services

70,602. 4,277,727.

11,810. 1,414. 8,418. 6,799.

525. 983. 310.

4,305. 23,633.

964. 295.

4,407,785.

(C) Management and General

27,596. 6,765. 7,049. 6,897. 2,423.

14,291.

226.

2,922.

25,170.

3,019.

96,358.

(D)

Fundraising

32,028. 675.

2,705.

5,281. 1,515.

820.

28. 26,073.

69,125.

21 Statement(s) l, 2, 3 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

------- ----- --

FreedomWorks, Inc.

Form 990 Officer Compensation Allocation Part II, Line 25a

Employee Name of Officer, etc. Compensation Ben. Plans

Matt Kibbe 116,755. 8,021.

A. Program Services 100,775. 6,923.

B. Management and General 6,690. 460.

c. Fundraising 9,290. 638.


Judy Mulcahy 53,477. 6,779.

A. Program Services

B. Management and General 53,477. 6,779.

c. Fundraising


Jaci Brown 54,013. 6,203.

A. Program Services

B. Management and General

c. Fundraising 54,013. 6,203.

22

Expense Accounts

4,538.

3,917.

260.

361.

Expense Accounts

873.

873.

Expense Accounts

2,120.

2,120.

12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc.

52-1349353

Statement 4

Totals

129,314.

111,615.

7,410.

10,289.

Totals

61,129.

61,129.

Totals

62,336.

62,336.

Statement(s) 4 FREEDOM!

FreedomWorks, Inc.

Name of Officer, etc.

Honorable Richard K. Armey

A. Program Services

B. Management and General

C. Fundraising

Total Program Services

Total Management and General

Total Fundraising

Employee Compensation Ben. Plans

100,833.

87,032.

5,778.

8,023.

Expense Accounts

Total Officer, etc., Compensation Included on Part II, Line 25a

Form 990

Explanation

Statement of Organization's Primary Exempt Purpose Part III

52-1349353

Totals

100,833.

87,032.

5,778.

8,023.

198,647.

74,317.

80,648.

353,612.

Statement 5

Public policy, advocacy and educational organization that supports consumers freedom of choice in a market economy.

Form 990 Other Investments

Description

Total to Form 990, Part IV, line 56, Column B

Valuation Method

Cost

Statement 6

Amount

0.

0.

23 Statement(s) 4, 5, 6 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

FreedomWorks, Inc.

Form 990 Depreciation of Assets Not Held for Investment

Cost or Description Other Basis

Various property and equipment 646,330.

Total to Form 990, Part IV, ln 57 646,330.

Form 990 Other Liabilities

Description

Deferred rent Capital lease obligations

Total to Form 990, Part IV, line 65, Column B

Form 990 Non-Government Securities

Accumulated Depreciation

511,075.

511,075.

Other Publicly

Corporate Security Description Cost/FMV Stocks

Corporate Traded Bonds Securities

Money market funds FMV 139,434.

To Form 990, line 54a, Col B 139,434.

Form 990 Identification of Related Organizations Part VI, Line 80b

52-1349353

Statement 7

Book Value

135,255.

135,255.

Statement 8

Amount

169,862. 5,970.

175,832.

Statement

Total Non-Gov't

Securities

9

139,434.

139,434.

Statement 10

Name of Organization Exempt NonExempt

FreedomWorks Foundation, Inc. FreedomWorks Political Action Committee Oregon CSE Political Action Committee Taxpayer Defense Fund Citizens for PERS Reform The FreedomWorks Fund League of Freedom Voters CSE FreedomWorks, Inc. Judicial Integrity Coalition Citizens for a Sound Economy, Inc.

x x x x x x x x x

x

24 Statement(s) 7, 8, 9, 10 12160502 739466 FreedomWorks 2006.05050 FreedomWorks, Inc. FREEDOM!

FreedomWorks, Inc. 52-1349353

Form 990 Part V-A Officer Compensation from Related Organizations

Statement 11

Officer's Name

Matt Kibbe

Name of Related Organization

FreedomWorks Foundation, Inc.

Relationship Between Organizations

Employee Benefit Plan Expense

Compensation Contribution Account

165,126. 11,344. 6,418.

Employer ID Number

52-1526916

Historical relationship/common officers and board members

Compensation Description

Employee compensation

Officer's Name

Jaci Brown






76,390. 8,773. 2,998.

Employer ID Number

52-1526916






FreedomWorks, Inc.

Officer's Name

Honorable Richard K. Armey




52-1349353



403,333.

Employer ID Number

52-1526916



Non-employee compensation

Officer's Name

Judy Mulcahy






75,632. 9,586. 1,235.

Employer ID Number

52-1526916






• .. FreedomWorks, Inc.

Form 990

States

List of States Receiving Copy of Return Part VI, Line 90

52-1349353

Statement 12

AL,AK,AR,AZ,CA,CO,CT,DE,FL,GA,HI,ID,IL,IN,IA,KS,KY,LA,ME,MD,MA,MI,MN,MS,MO MT,NE,NV,NJ,NM,NY,NC,ND,OH,OK,0R,NH,PA,RI,SC,SD,TN,TX,UT,VT,VA,WA,WV,WI,NH



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