How Americans For Prosperity Spends Revenue (2022)

Americans for Prosperity is actually two organizations:  Americans For Prosperity (AFP) and Americans For Prosperity Foundation (AFPF). Both organizations are tax-exempt non-profit organizations but AFP is a 501 (c) (4) while AFPF is a 501 (c) (3). The primary difference between the two organizations is that donations to AFPF are tax deductible while donations made to AFP are not. In addition, AFP is considered a social welfare organization so they can engage in more lobbying while AFPF is considered an educational organization and is therefore limited in how much they spend on lobbying.

Although both organizations operate out of the same office in Arlington, Virginia and share employees, how a donation was spent depends on which organization received the donation.

AFPF

AFPF reported $19 million in revenue (compared to $12 million in 2021), most of which were contributions and an $8 million settlement. Expenses totaled $8 million (42% of revenue) categorized as follows:

• $3.7 million (20% of revenue):  Compensation
• $2.1  million (11% of revenue):  Fees for Services (primarily “professional fees”)
• $1.4  million (7% of revenue):  Travel and Conferences
• $0.3  million (1% of revenue):  Office-Related
• $0.2 million (1% of revenue):  Grants
• $0.4   million (2% of revenue):  Advertising and Promotion and Other Expenses

As illustrated above, the largest expense for the organization was compensation ($3.7 million) for the 8 employees., which equates to an average compensation of $463,000.  It is unclear how $3.7 million was spent on compensation for the 8 employees because the most highly compensated employee at AFPF was Cynthia Crawford who received $252,611.

Using the above information $100 was spent as follows:

 $100:  Revenue

-$ 20:  Compensation

-$ 11:  Fees for Services (primarily “professional fees”)

-$  7:  Travel and Conferences

-$  1:  Office-Related

-$  1:  Grants

-$  2  Advertising and Promotion and Other Expenses

-$ 42: Total Expenses

 $ 58: Revenue Remaining:  To Fund Balance

As illustrated above, AFPF spent $20 out of every $100 on compensation, $11 out of every $100 on fees for services (primarily legal fees) and $10 out of every $100 on travel, conferences, office-related expenses., and advertising.  $1 of every $100 (or $200,000) went to grants (one grant actually to Cause of Action in Arlington, VA).  In total, $42 out of every $100 in revenue was spent, leaving $58 out of every $100 unspent, thereby increasing the fund balance from $14 million at the beginning of the year to $25 million at year-end.

2 independent contractors were compensated more than $100,000:

• $208,144million to Stand Together Communications, of Arlington, VA for media services
• $231,829 to Quinn Emmanuel Urquhart & Sullivan, of LA, CA for legal services

AFP

AFP reported $112 million in revenue (compared to $114 million in 2021) most of which came from contributions and gifts from related organizations) and $136 million in expenses (121% of revenue) categorized as follows:

• $42 million (37% of revenue):  Compensation
• $13 million (12% of revenue):  Office-Related
• $36 million (32% of revenue):  Advertising
• $13 million (12% of revenue):  Travel and Conferences
• $32 million (28% of revenue):  Fees for Services (primarily consultants)

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

$100:  Revenue

-$ 37:  Compensation

-$ 12:  Office-Related

-$ 32:  Advertising

-$ 12:  Travel and Conferences

-$ 28:  Fees for Services (primarily consultants)

-$121: Subtotal Expenses

As illustrated above, AFP spent $49 out of every $100 on compensation and office-related expenses. 430 employees received $42 million in compensation (an average of $98,000).  $32 of every $100 was spent on advertising while $12 out of every $100 was spent on travel and conferences. $28 out of every $100 was spent on fees for services (primarily consulting fees with specifics not provided on the $32 million spent).  

In summary, AFP spent $121 for every $100 received or $24 million more than they received, resulting in a deterioration in net assets, from $20 million at the beginning of the year to -$4 million at year-end.

31 independent contractors were compensated more than $100,000 with the 5 most highly compensated independent contractors reported as:

• $31 million to Stand Together Communications, of Arlington, VA for media services
• $21 million to 360 LLC, of Arlington, VA for data services
• $ 5 million to Talent Wave, of Denver, CO for temp services
• $ 3 million to People Who Think, of Mandeville, LA for printing
• $ 2 million to Stampede America, of Key Largo, FL for grassroots training

AFPF and AFP

As stated above, AFPF and AFP are separate organizations regulated by rules to maintain their non-profit tax exempt status. Since both organizations operate out of the same office and share staff and expenses, a theoretical combining of their revenue and expenses would look like this:

The combined revenue of both organizations was $131 million while expenses were  $144 million:

The $144 million in expenses were collectively classified as follows:

• $46 million (35% of revenue):  Compensation
• $13 million (10% of revenue):  Office
• $14 million (11% of revenue):  Travel and Conferences
• $37 million (28% of revenue):  Advertising
• $34 million (26% of revenue):  Fees for Services

As illustrated above, compensation ($46 million) for the 438 employees was the highest expense, an average of $105,000, although 112 employees received more than $100,000 in compensation with the most highly compensated employee the President and CEO, Emily Seidel who received $839,745.

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

 $100:  Revenue

-$ 35:  Compensation

-$ 10:  Office

-$ 11:  Travel and Conferences

-$28:  Advertising

-$ 26:  Fees for Services

-$110:  Total Expenses of both organizations

-$  10:  Excess Expenses 

As illustrated above, the primary expenses for both organizations were compensation, fees, and advertising.   Collectively, $89 out of every $100 in revenue were spent on these three expenses.

So, to answer the question, $100 in revenue was primarily spent on compensating staff, fees for outside services,, and  advertising.  The bottom line is the organizations spent about $13 million more than they raised (or about $110 for every $100 in revenue).

To read the IRS Form 990 (2022) for AFP, click here.

To read the IRS Form 990 (2022) for AFPF, click here.