Foundation for Economic Education does not meet the following 6 Standards for Charity Accountability:
Standard 1 (Oversight of Operations and Staff)
Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
FEE does not meet this Standard because its board of directors does not:
- Receive information about the financial arrangements made with outside fund raising firms and/or consultants hired in the past year.
Standard 6 (Board Policy on Effectiveness)
Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
FEE does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.
Standard 7 (Board Approval of Written Report on Effectiveness)
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
FEE does not meet this Standard because:
- The organization did not produce a written report outlining the results of its June 2019 effectiveness assessment.
Standard 14 (Budget)
Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
FEE does not meet this Standard because, when the organization provided 2020 budget information, it indicated that the budget:
- Did not identify total projected program service expenses, broken down by major program (books and publications, seminars and lectures, and website outreach).
Standard 16 (Annual Report)
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
FEE does not meet this Standard because the 2019 annual report did not include:
- Total expenses for each program in the same categories that appear in the organization’s financial statements (books and publications, seminars and lectures, and website outreach).
Standard 18 (Privacy for Written Appeals & Internet Privacy)
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.
FEE does not meet this Standard because the privacy policy on its website, https://www.fee.org, does not indicate:
- What security measures are in place to protect personal information that is collected.
The BBB Wise Giving Alliance requested but did not receive complete information from the organization and is unable to verify the organization's compliance with the following Standard(s) for Charity Accountability:
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Foundation for Economic Education meets the remaining 13 Standards for Charity Accountability.
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Year, State Incorporated
1946, NY
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Stated Purpose
"to inspire, educate, and connect future leaders with the economic, ethical, and legal principles of a free society."
Foundation for Economic Education (FEE) aims to preserve the foundational ideas and principles of individual liberty, free-market economics, entrepreneurial value creation, private property, limited government, and high moral character for the rising generation. The organization's seminars and lectures promote entrepreneurship, self-responsibility, and a general understanding of economics and public policy. FEE's website outreach shares the study of free-market economics and the philosophy of self-responsibility. The organization's books and publications disseminate results of research and study in the field of economics and the related branches of the social sciences.
For the year ended March 31, 2019, Foundation for Economic Education's program expenses were:
Seminars and lectures |
$2,262,824 |
Website outreach |
$2,157,368 |
Books and publications |
$374,908 |
Total Program Expenses: |
$4,795,100 |
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Chief Executive
Zilvinas Silenas, President
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Compensation*
$0
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Chair of the Board
Wayne Olson
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Chair's Profession / Business Affiliation
Retired Banker and Former Executive Director, Foundation for Economic Education
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Board Size
13
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Paid Staff Size
31
*2018 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
Note: 2018 compensation is not available for Mr. Silenas. The previous President, Lawrence W. Reed, received $188,987 in compensation in 2018.
Method(s) Used:
Direct mail appeals, Grant proposals, Internet, Invitations to fund raising events, Planned giving arrangements, Other
Fundraising costs were 20% of related contributions. (Related contributions, which totaled $4,448,156, are donations received as a result of fundraising activities.)
This organization is tax-exempt under section 501(c) (3) of the Internal Revenue Code.It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
The following information is based on Foundation for Economic Education's audited financial statements for the year ended March 31, 2019.
Source of Funds |
Contributions |
$3,780,646 |
Investment income, net |
$1,015,529 |
Grants and contracts |
$667,510 |
Tuition and seminars revenue |
$150,661 |
Royalties |
$66,932 |
Publications |
$18,105 |
Change in value of split interests |
($18,275) |
Total Income |
$5,681,108 |
- Programs: 77%
- Fundraising: 14%
- Administrative: 9%
Total Income |
$5,681,108 |
Program expenses |
$4,795,100 |
Fundraising expenses |
$910,481 |
Administrative expenses |
$569,045 |
Other expenses |
$0 |
Total expenses: |
$6,274,626 |
Income in Excess of Expenses |
$-593,518 |
Beginning Net Assets |
$8,186,066 |
Other Changes In Net Assets |
$0 |
Ending Net Assets |
$7,592,548 |
Total Liabilities |
$825,937 |
Total Assets |
$8,418,485 |
Note: According to FEE's audited financial statements for the year ended March 31, 2019, the organization received in-kind contributions in the amount of $262,889, in the form of advertising services.