How Revenue is Spent at the AFL-CIO
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) is a federation of 55 labor unions that represent nearly 13 million men and women. A non-profit, tax-exempt 501 (c) (5) – a member labor organization, the AFL-CIO is headquartered in Washington, DC.
Key facts about the AFL-CIO include the following information taken from the IRS Form 990’s:
The AFL-CIO has 14 related tax-exempt, non-profit organizations, 9 of whom operate out of the same office address. The other 5 organizations also operate out of a DC based office but at a different street address.
Revenue has been declining over the past 5 years. In 2013, total revenue was $158 million. By 2017, revenue was down to $140 million and by 2018, total revenue was $119 million.
Revenue primarily comes from two sources: memberships dues and royalties. In 2018, $72 million of the $119 million (61%) came from memberships dues while $38 million (32% of total revenue) came from royalties.
Expenses totaled $100 million (84% of total revenue) in 2018 – $19 million less than the revenue raised. The $19 million was added to the general fund which increased from $14 million at the beginning of the year to $34 million at year-end – a significant increase.
The $100 million in expenses can be classified as follows:
- $ 48 million (40% of revenue): Compensation
- $ 18 million (15% of revenue): Grants
- $ 13 million (11% of revenue): Royalties, State Unity Funds
- $ 7 million (6% of revenue): Office-Related Expenses
- $ 6 million (5% of revenue): Travel and Conferences
- $ 4 million (3% of revenue): Fees for Services (primarily “other”)
- $ 4 million (3% of revenue): Other Expenses (i.e. advertising and promotion, interest, etc)
Using the above information, every $100 in revenue was spent as follows:
-$ 40: Compensation
-$ 15: Grants
-$ 11: Royalties, State Unity Funds
-$ 6: Office-Related Expenses
-$ 5: Travel and Conferences
-$ 4: Fees for Services
-$ 3: Other Expenses
-$ 84: Total Expenses
$ 16: Excess Revenue over Expenses: To General Fund
As illustrated above, the AFL-CIO spent $69 out out of every $100 in revenue on organization expenses that include compensation, royalties, office, travel and conferences, fees for services, and other expenses. The largest expense was compensation for which $40 out of every $100 was spent. In terms of employees and total dollars, 448 employees received $48 million in compensation which equates to an average compensation of $107,000. However, only 145 employees received more that $100,000. The most highly compensated employee was Sean McGarvey, who received $544,786 (from an affiliated organization).
$15 out of every $100 was spent on grants – primarily to domestic organizations. 109 grants greater than $5,000 were made, of which 19 were to 501 (c) (3)’s and 90 to other organizations. The recipients of the 10 largest grants were reported to be:
- $6,657,000: Working America, of Washington, DC for operating subsidy and office space
- $ 978,750: National Labor College, of Silver Spring, MD for operating subsidy
- $ 617,000: Alliance for Retired Americans, of Washington, DC for operating subsidy and office space
- $ 300,000: American Center for Int’l Labor Solidarity, of Washington, DC for operational subsidy/office space
- $ 219,000: Florida AFL-CIO, of Tallahassee, FL for solidarity funding grant
- $ 214,109: Dallas AFL-CIO, of Dallas, TX for solidarity funding grant/Culture of Health grant
- $ 200,000: Salidago Foundation, of Northhampton, MA for Lift Fund grant
- $ 200,000: Missouri AFL-CIO, of Jefferson City, MO for solidarity funding grant and program support
- $ 150,000: Ohio AFL-CIO, of Columbus, OH for solidarity funding grant
- $ 150,000: Oregon AFL-CIO, of Portland, OR for solidarity funding grant
To read the IRS Form 990 (2017) for the year ending June 30, 2018, click here.
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