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May 31, 2020

Where Does $100 to the Ethics and Public Policy Center Go?

by Anne Paddock

The Ethics and Public Policy Center (EPPC) is a non-profit, tax-exempt 501 (c) (3) organization that is often described as a conservative advocacy group “dedicated to applying the Judeo-Christian moral tradition (defined as the concept of supersession where the Christian covenant or Testament (new) supersedes the Jewish covenant or Testament (old).

Based in Washington, DC, EPPC reported total revenue of $3.9 million in 2018 (down from $4.2 million the prior year) most of which came from contributions, gifts, and grants. Expenses totaled $3.8 million and were categorized (on the Form 990) as follows:

  • $2.1 million (54% of revenue):  Compensation
  • $ .7 million (18% of revenue):  Fees for Services
  • $ .6 million (15% of revenue):  Office-related Expenses
  • $ .4 million (10% of revenue):  Travel/Conferences/Conventions

Compensation is the largest expense for EPPC. 18 employees were compensated $2.1 million which equates to an average compensation of $117,000.  However, only 8 employees received more than $100,000 in compensation with the most highly compensated employees reported to be:

  • $392,066:  M Edward Whelan, President
  • $238,411:  Peter Wehner, Senior Fellow
  • $195,579:  George Wegel, Distinguished Senior Fellow
  • $174,536:  Henry Olsen, Senior Fellow
  • $161,379:  Sylvia Travaglione, Senior Director of Operations
  • $137,549:  Mary Hasson, Kate O’Beirne Fellow
  • $133,786:  Yuval Levin, Vice President and Hertog Fellow
  • $130,239:  Michael Cromartie, Vice President

The above 8 employees received $1.6 million, which equates to an average compensation of $200,000.  If the compensation for the above 8 employees ($1.6 million) is deducted from total compensation ($2.1 million) then $500,000 was used as compensation for 10 employees, which means the average salary of the other employees is $50,000.

6 of the 8 (75%) most highly compensated employees are male while 2 of the 8 (25%) are female.

The second highest expense ($700,000) was for fees for services, almost all of which was for consultants and “honoraria” program service expenses.  2 independent contractors received more than $100,000:

  • $157,167:  Stanley Kurtz of Washington, DC for consulting fees
  • $153,500:  YouGov America, Inc. (a public opinion and data company) of Redwood City, CA for consulting fees

So, it appears that about $310,000 was paid for the above consulting services. It is unclear where the remaining fees for services were specifically spent on (except for $17,000 for accounting).

Using the above information, every $100 in revenue was spent as follows:

 $100:  Revenue

-$ 54:  Compensation

-$ 18:  Fees for Services

-$ 15:  Office-related Expenses

-$ 10:  Travel/Conferences/Conventions

-$ 97:  Total Expenses

 $  3:  Unspent Revenue

As illustrated above, $72 out of every $100 was spent on compensation and fees for services.  An additional $25 out of every $100 was spent on office-related expenses and travel/conferences/conventions.  $3 out of every $100 was not spent and allocated to the general fund which had $5.3 million at year-end.

The bottom line is that revenue is primarily spent on employees and consultants.

To read the IRS Form 990 (2017) for the year ending June 30, 2018, click here.

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