Allman Associates Inc. 9600 Great Hills Trail, Suite 150W Austin, TX 78759 (512) 502?3077 THE TEXAS DEMOCRACY FOUNDATION 307 WEST 7th STREET AUSTIN, TX 78701 Dear Emily, Enclosed is the 2014 US Form 990, Return of Organization Exempt from Income Tax, for THE TEXAS DEMOCRACY FOUNDATION for the tax year ending June 30, 2015. Your 2014 US. Form 990, Return of Organization Exempt from Income Tax, return has been electronically ?led. We very much appreciate the opportunity to serve you. If you have any questions regarding this return, please do not hesitate to call. Since 1y, ope ter .Allman, CPA OMB NO, 1545-00?7 990 2014 Return of Organization Exempt From Income Tax Under section 501 527, or ofthe Internal Revenue Code (eXcept private foundations) Do not enter social security numbers on this farm as it may be made public. pawl Information about Form 990 and its instructions is at 5- . ?nspectio - A For the 2914 calendar year, or tax Year beginning Jul 1 2014, and ending Jun 3 0 2 0 15 Name-aruoarrza?on THE TEXAS DEMOCRACY FOUNDATION Address change Doing business as 74-2 5 9 8 8 3 Name change Number and street (or no. box ll mall Is not delivered to street address) Room/suite Telephone number Initialretum 307 WEST 7th STREET (512) 477-43746 Fm] relumllerminaled Clty or town. slate orprovince. country. and ZIP orlorelgn postal code Amended return AUSTIN TX 787 Gross recelpts 1 045 494 . Application pending Name and address of principal officer: '5 this agroup return 101' Hus ?rm SUSAN LONGLEY 301 WEST 7TH STREET AUSTIN ex 78701 ?m Yes No II attach allst. (see instructions) 1 I501lc) )4 ?nsenno.) {union} or 1 I527 WGbSiteZ 1" WW. TEXASOBSERVER.CRG Hie) Group exemption number 5 Form oforganizallon: lX'Corporatlon ITmst I Association I Other? 'LYearottormatlon: 1991 I State of legal domicile: TX [Part2] ISummary 1 Briefly describe the organization?s mission or most signi?cant activities: 2g goggle, AND ENCOURAGE use sausages; 91: seems assess sensuous esti?saiv?' some I: i $113. 9.1339311. a n. .. 2 Check this box [371? the organization discontinued Its operations or disposed of more-than 25% of its net assets. ?5 3 Number?of voting members of the goiterning body (Part VI. line is) 3 11 j: 4 Number of independent voting members of the governing body (Part VI, line 1b) 4 5 Total nurnber or individuals employed in calendar year 2014 (Part V, line 2a) 5 15 g; 6 Total number of volunteers {estimate if necessary) 5 5 2 7a Total unrelated bueiness revenue from Part column (0), line 12 . . 7a 0 Net unrelated business taxable income from Form BSD-T, line 84 7b 0 Prior Year Current Year 0 8 Contr?outions and grants (Part line 1hProgram service revenue (Part line 2gInvesbnent income (Part vut, column (A), ?tness424. D: 11 Other revenue {Part column (A), lines 5, Bo. Bo, 9c, 10c. and 11sTotal revenue - add lines 8 through 11 (must equal Part column (A), line 12Grants and similar amounts paid "(Part IX. column (A), lines 1-3) 1 4 Benefits paid to or for members (Part IX, column (A). line 4) 15 Salaries, other compensation. employee benefits (Part IX. column (A), lines 5-10Professional fees (Part IX, column (A). line tie) Total fundraising expenses (Part ix. column (D). line 25Other expenses (Part IX. column (A), lines 11a?1 1 d. 11f~24ej Total expenses. Add lines 13-17 (must equal Part column (A). line 25Revenue less expenses. Subtract line 18 from line 12 ?128 Beginning of Current Year End of Year ?g 20 Total assets (Partx, line 16) 934,628. 331,199_ 21 Total liabilities (Part X, line 26?'15 22 Net assets orfund balances. Subtract line 21 from line 20 . . 785 4'P'artll [Signature?lock ESSEIcii?E?i?iif?lliitlb?? be? my ?Midge? 15 a? Ul/l/ lanolin Sign Signature 01 o??l?ar i 1 Date I Here 121le WS 311le were Type cr-print name?and title. Preparers name as? (PW Dale check 11 Paid Peter . Allman, CPA 05/ 16/ 6 sell-employed P00 648533 Preparer Finn's name Allman E: Assocfatbsb?nc . Use Only 9 so 0 Great Hills Trail Suite 15 on omen 46-297 9080 Austin TX 78759 Phonetic. (512) 502?3077 May the discuss this return with the preparer shoWn above? (see instructions) IXI Yes I I No BAA For Paperwork Raunction Act Notice, See the separate Instructions. Tealmm 05/221114 Form 990 (2014) Form 990 (2014) Part III 1 THE TEXAS DEMOCRACY FOUNDATION Statement of Program Service Accomplishments Page 2 74-2619883 Check if Schedule O contains a response or note to any line in this Part III Briefly describe the organization’s mission: TO FOSTER,PROMOTE AND ENCOURAGE THE ADVANCEMENT OF PUBLIC AFFAIRS, GOVERNMENT LITERATURE AND THE ARTS THROUGH THE PUBLICATION OF THE TEXAS OBSERVER, A MONTHLY PERIODICAL ADDRESSING PUBLIC AFFAIRS. 2 3 4 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? Yes X If ’Yes,’ describe these new services on Schedule O. Did the organization cease conducting, or make significant changes in how it conducts, any program services? Yes X If ’Yes,’ describe these changes on Schedule O. Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. $ 749,187. including grants of $ PUBLISHED MONTHLY JOURNAL, THE TEXAS OBSERVER, SERVING 5,000 SUBSCRIBERS, DISTRIBUTING AN ADDITIONAL 500 COPIES THROUGH BOOKSTORES. FURNISHED COPIES TO EDUCATIONAL INSTITUTIONS UPON REQUEST FOR USE IN CLASSROOMS. 4 a (Code: ) (Expenses 4 b (Code: ) (Expenses $ including grants of 4 c (Code: ) (Expenses $ including grants of 4 d Other program services. (Describe in Schedule O.) (Expenses $ including grants of $ 4 e Total program service expenses G 749,187. BAA TEEA0102 No ) (Revenue $ $ ) (Revenue $ ) $ ) (Revenue $ ) 0. ) (Revenue 05/28/14 No $ 129,875. ) ) Form 990 (2014) Form 990 (2014) Part IV THE TEXAS DEMOCRACY FOUNDATION Checklist of Required Schedules Page 3 74-2619883 Yes No 1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If ’Yes,’ complete Schedule A 1 2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? 2 3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If ’Yes,’ complete Schedule C, Part I 3 X Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If ’Yes,’ complete Schedule C, Part II 4 X Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If ’Yes,’ complete Schedule C, Part III 5 X Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If ’Yes,’ complete Schedule D, Part I 6 X Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If ’Yes,’ complete Schedule D, Part II 7 X Did the organization maintain collections of works of art, historical treasures, or other similar assets? If ’Yes,’ complete Schedule D, Part III 8 X Did the organization report an amount in Part X, line 21, for escrow or custodial account liability; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If ’Yes,’ complete Schedule D, Part IV 9 X 10 X 4 5 6 7 8 9 10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If ’Yes,’ complete Schedule D, Part V 11 X X If the organization’s answer to any of the following questions is ’Yes’, then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. a Did the organization report an amount for land, buildings and equipment in Part X, line 10? If ’Yes,’ complete Schedule D, Part VI 11 a b Did the organization report an amount for investments ' other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If ’Yes,’ complete Schedule D, Part VII 11 b X c Did the organization report an amount for investments ' program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If ’Yes,’ complete Schedule D, Part VIII 11 c X d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If ’Yes,’ complete Schedule D, Part IX 11 d e Did the organization report an amount for other liabilities in Part X, line 25? If ’Yes,’ complete Schedule D, Part X 11 e f Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If ’Yes,’ complete Schedule D, Part X 11 f X 12a X 12 b 14a X X X 14b X Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other assistance to or for any foreign organization? If ’Yes,’ complete Schedule F, Parts II and IV 15 X Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other assistance to or for foreign individuals? If ’Yes,’ complete Schedule F, Parts III and IV 16 X Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If ’Yes,’ complete Schedule G, Part I (see instructions) 17 X Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If ’Yes,’ complete Schedule G, Part II 18 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If ’Yes,’ complete Schedule G, Part III 19 12 a Did the organization obtain separate, independent audited financial statements for the tax year? If ’Yes,’ complete Schedule D, Parts XI, and XII b Was the organization included in consolidated, independent audited financial statements for the tax year? If ’Yes,’ and if the organization answered ’No’ to line 12a, then completing Schedule D, Parts XI and XII is optional 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If ’Yes,’ complete Schedule E 14 a Did the organization maintain an office, employees, or agents outside of the United States? b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If ’Yes,’ complete Schedule F, Parts I and IV 15 16 17 18 19 20 a Did the organization operate one or more hospital facilities? If ’Yes,’ complete Schedule H b If ’Yes’ to line 20a, did the organization attach a copy of its audited financial statements to this return? BAA TEEA0103 05/28/14 X X X 13 20 X X X 20 b Form 990 (2014) Form 990 (2014) Part IV THE TEXAS DEMOCRACY FOUNDATION Checklist of Required Schedules (continued) Page 4 74-2619883 Yes 21 22 23 No Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic government on Part IX, column (A), line 1? If ’Yes,’ complete Schedule I, Parts I and II 21 X Did the organization report more than $5,000 of grants or other assistance to or for domestic individuals on Part IX, column (A), line 2? If ’Yes,’ complete Schedule I, Parts I and III 22 X Did the organization answer ’Yes’ to Part VII, Section A, line 3, 4, or 5 about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If ’Yes,’ complete Schedule J 23 X 24a 24b X 24 a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If ’Yes,’ answer lines 24b through 24d and complete Schedule K. If ’No, ’go to line 25a b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? d Did the organization act as an ’on behalf of’ issuer for bonds outstanding at any time during the year? 25 a Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If ’Yes,’ complete Schedule L, Part I b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If ’Yes,’ complete Schedule L, Part I 24c 24d 25a X 25b X 26 Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? If ’Yes’, complete Schedule L, Part II 26 X 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If ’Yes,’ complete Schedule L, Part III 27 X Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee? If ’Yes,’ complete Schedule L, Part IV 28a X b A family member of a current or former officer, director, trustee, or key employee? If ’Yes,’ complete Schedule L, Part IV 28b X 28c 29 X X Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If ’Yes,’ complete Schedule M Did the organization liquidate, terminate, or dissolve and cease operations? If ’Yes,’ complete Schedule N, Part I 30 31 X X Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If ’Yes,’ complete Schedule N, Part II 32 X Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If ’Yes,’ complete Schedule R, Part I 33 X 34 35a X X 35b X Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If ’Yes,’ complete Schedule R, Part V, line 2 36 X Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If ’Yes,’ complete Schedule R, Part VI 37 X 28 c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If ’Yes,’ complete Schedule L, Part IV 29 Did the organization receive more than $25,000 in non-cash contributions? If ’Yes,’ complete Schedule M 30 31 32 33 Was the organization related to any tax-exempt or taxable entity? If ’Yes,’ complete Schedule R, Part II, III, or IV, and Part V, line 1 35 a Did the organization have a controlled entity within the meaning of section 512(b)(13)? 34 b If ’Yes’ to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If ’Yes,’ complete Schedule R, Part V, line 2 36 37 38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11b and 19? Note. All Form 990 filers are required to complete Schedule O BAA TEEA0104 05/28/14 X 38 Form 990 (2014) Form 990 (2014) THE TEXAS DEMOCRACY FOUNDATION Part V Statements Regarding Other IRS Filings and Tax Compliance Page 5 74-2619883 Check if Schedule O contains a response or note to any line in this Part V Yes 1 a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable b Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable 1a 1b c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? 2 a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, filed for the calendar year ending with or within the year covered by this return 2a b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions) 3 a Did the organization have unrelated business gross income of $1,000 or more during the year? b If ’Yes’ has it filed a Form 990-T for this year? If ’No’ to line 3b, provide an explanation in Schedule O No 39 0 1c X 2b X 15 3a 3b X 4a X 5a 5b 5c X X 6 a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible as charitable contributions? 6a X b If ’Yes,’ did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? 7 Organizations that may receive deductible contributions under section 170(c). 6b 4 a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? b If ’Yes,’ enter the name of the foreign country: G See instructions for filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts. (FBAR) 5 a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? c If ’Yes,’ to line 5a or 5b, did the organization file Form 8886-T? a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? b If ’Yes,’ did the organization notify the donor of the value of the goods or services provided? c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? d If ’Yes,’ indicate the number of Forms 8282 filed during the year 7d e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? 8 Sponsoring organizations maintaining donor advised funds. Did a donor advised fund maintained by the sponsoring organization have excess business holdings at any time during the year? 9 Sponsoring organizations maintaining donor advised funds. a Did the sponsoring organization make any taxable distributions under section 4966? b Did the sponsoring organization make a distribution to a donor, donor advisor, or related person? 10 Section 501(c)(7) organizations. Enter: a Initiation fees and capital contributions included on Part VIII, line 12 10 a b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities 10 b 11 Section 501(c)(12) organizations. Enter: a Gross income from members or shareholders 11 a b Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) 11 b 12 a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? b If ’Yes,’ enter the amount of tax-exempt interest received or accrued during the year 12 b 13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in more than one state? Note. See the instructions for additional information the organization must report on Schedule O. b Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans 13 b c Enter the amount of reserves on hand 13 c 14 a Did the organization receive any payments for indoor tanning services during the tax year? b If ’Yes,’ has it filed a Form 720 to report these payments? If ’No,’ provide an explanation in Schedule O BAA TEEA0105 05/28/14 7a 7b X X 7c X 7e 7f X X 7g 7h 8 9a 9b 12 a 13 a X 14 a 14 b Form 990 (2014) Form 990 (2014) Page 6 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part VI Governance, Management, and Disclosure For each ’Yes’ response to lines 2 through 7b below, and for a ’No’ response to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response or note to any line in this Part VI X Section A. Governing Body and Management Yes 1 a Enter the number of voting members of the governing body at the end of the tax year 1a If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O. b Enter the number of voting members included in line 1a, above, who are independent 1b 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? 5 Did the organization become aware during the year of a significant diversion of the organization’s assets? 6 Did the organization have members or stockholders? 7 a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? No 13 13 X 2 3 b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body? b Each committee with authority to act on behalf of the governing body? 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If ’Yes,’ provide the names and addresses in Schedule O 3 X 4 5 6 X X X 7a X 7b X 8 X X 8a 8b X 9 Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) Yes 10 a Did the organization have local chapters, branches, or affiliates? b If ’Yes,’ did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization’s exempt purposes? 11 a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? b Describe in Schedule O the process, if any, used by the organization to review this Form 990. 12 a Did the organization have a written conflict of interest policy? If ’No,’ go to line 13 b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? c Did the organization regularly and consistently monitor and enforce compliance with the policy? If ’Yes,’ describe in Schedule O how this was done 13 Did the organization have a written whistleblower policy? 14 Did the organization have a written document retention and destruction policy? 15 Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization’s CEO, Executive Director, or top management official b Other officers or key employees of the organization If ’Yes’ to line 15a or 15b, describe the process in Schedule O (see instructions). 16 a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? b If ’Yes,’ did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? 10 b 11 a X 12 a X 12 b X 12 c 13 14 X 15 a 15 b X 16 a No X 10 a X X X X 16 b Section C. Disclosure 17 List the states with which a copy of this Form 990 is required to be filed G 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (Section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply. Other (explain in Schedule O) Own website Another’s website X Upon request 19 Describe in Schedule O whether (and if so, how) the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. State the name, address, and telephone number of the person who possesses the organization’s books and records: G 20 The Organization BAA 307 West 7th Street, Austin, TEEA0106 11/13/14 TX 78701 (512) 477-0746 Form 990 (2014) Form 990 (2014) Page 7 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part VII Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check if Schedule O contains a response or note to any line in this Part VII Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1 a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year. ? List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. ? List all of the organization’s current key employees, if any. See instructions for definition of ’key employee.’ ? List the organization’s five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations. ? List all of the organization’s former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. ? List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (C) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) BAA (A) (B) Name and Title Average hours per week (list any hours for related organizations below dotted line) SUSAN LONGLEY PRESIDENT MARY NELL MATHIS TREASURER PETER RAVELLA TREASURER-ELECT GREG WOOLDRIDGE DIRECTOR JIM MARSTON DIRECTOR CARLTON CARL DIRECTOR RON RAPOPORT DIRECTOR MELISSA JONES DIRECTOR HEATHER PAFFE DIRECTOR VINCENT LOVOI DIRECTOR BOB FRUMP DIRECTOR CADE BERNSEN DIRECTOR KATIE SMITH DIRECTOR DAVE MANN EX-EDITOR Position (do not check more than one box, unless person is both an officer and a director/trustee) (D) (E) (F) Reportable compensation from the organization (W-2/1099-MISC) Reportable compensation from related organizations (W-2/1099-MISC) Estimated amount of other compensation from the organization and related organizations 10.00 X X 0. 0. 0. X X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. X 0. 0. 0. 57,500. 0. 5.00 5.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 40.00 X TEEA0107 02/27/14 0. Form 990 (2014) Form 990 (2014) Page 8 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part VII Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (B) (A) Name and title Average hours per week (list any hours for related organiza - tions below dotted line) (C) Position (do not check more than one box, unless person is both an officer and a director/trustee) (D) Reportable compensation from the organization (W-2/1099-MISC) (E) (F) Reportable compensation from related organizations (W-2/1099-MISC) Estimated amount of other compensation from the organization and related organizations (15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) G 1 b Sub-total 57,500. 0. G c Total from continuation sheets to Part VII, Section A G d Total (add lines 1b and 1c) 57,500. 0. 2 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization G Yes 3 0. 0. No Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If ’Yes,’ complete Schedule J for such individual 3 X 4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If ’Yes’ complete Schedule J for such individual 4 X 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If ’Yes,’ complete Schedule J for such person 5 X Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year. (A) Name and business address 2 BAA (B) Description of services (C) Compensation Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization G TEEA0108 03/09/15 Form 990 (2014) Form 990 (2014) THE TEXAS DEMOCRACY FOUNDATION Part VIII Statement of Revenue 74-2619883 Check if Schedule O contains a response or note to any line in this Part VIII (A) Total revenue 1a b c d e Federated campaigns Membership dues Fundraising events Related organizations Government grants (contributions) 1a 1b 1c 1d 1e (B) Related or exempt function revenue (C) Unrelated business revenue Page 9 (D) Revenue excluded from tax under sections 512-514 280,227. f All other contributions, gifts, grants, and similar amounts not included above 1f g Noncash contributions included in lines 1a-1f: $ h Total. Add lines 1a-1f 565,552. G 845,779. Business Code 2 a SUBSCRIPTIONS b c d e f All other program service revenue g Total. Add lines 2a-2f 3 900099 129,875. Investment income (including dividends, interest and other similar amounts) Income from investment of tax-exempt bond proceeds Royalties 4 5 6a b c d (i) Real (ii) Personal (i) Securities (ii) Other Gross rents Less: rental expenses Rental income or (loss) Net rental income or (loss) 7 a Gross amount from sales of assets other than inventory 129,875. 0. 0. G 129,875. G .G G 9,424. 0. 0. 9,424. 43,797. 0. 0. 43,797. 0. -87,295. -692. G b Less: cost or other basis and sales expenses c Gain or (loss) d Net gain or (loss) G 8 a Gross income from fundraising events (not including . $ 280,227. of contributions reported on line 1c). See Part IV, line 18 a b Less: direct expenses b c Net income or (loss) from fundraising events 13,915. 101,210. G 9 a Gross income from gaming activities. See Part IV, line 19 a b Less: direct expenses b c Net income or (loss) from gaming activities 10 a Gross sales of inventory, less returns and allowances a b Less: cost of goods sold b c Net income or (loss) from sales of inventory Miscellaneous Revenue 11 a b c d All other revenue e Total. Add lines 11a-11d 12 Total revenue. See instructions BAA -87,295. G 2,704. 3,396. G -692. 0. 0. 940,888. 129,875. 0. Business Code G G TEEA0109 11/13/14 -34,766. Form 990 (2014) Form 990 (2014) Part IX THE TEXAS DEMOCRACY FOUNDATION Statement of Functional Expenses 74-2619883 Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A). Check if Schedule O contains a response or note to any line in this Part IX (A) (B) (C) Do not include amounts reported on lines Total expenses Program service Management and 6b, 7b, 8b, 9b, and 10b of Part VIII. expenses general expenses 1 Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 2 Grants and other assistance to domestic individuals. See Part IV, line 22 3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 4 Benefits paid to or for members 5 Compensation of current officers, directors, trustees, and key employees 57,500. 44,678. 10,092. 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) 7 Other salaries and wages 421,873. 327,796. 74,039. Pension plan accruals and contributions 8 (include section 401(k) and 403(b) employer contributions) 9 Other employee benefits 47,642. 37,018. 8,361. 10 Payroll taxes 36,354. 28,247. 6,381. 11 Fees for services (non-employees): a Management b Legal c Accounting d Lobbying e Professional fundraising services. See Part IV, line 17 f Investment management fees 3,949. 0. 3,949. g Other. (If line 11g amt exceeds 10% of line 25, column 202,704. 180,731. 21,973. (A) amount, list line 11g expenses on Schedule O) 12 Advertising and promotion 2,999. 2,999. 0. 13 Office expenses 117,742. 81,132. 21,534. 14 Information technology 7,003. 3,502. 3,501. 15 Royalties 16 Occupancy 23,865. 17,543. 5,250. 17 Travel 8,819. 8,819. 0. 18 Payments of travel or entertainment expenses for any federal, state, or local public officials 19 Conferences, conventions, and meetings 20 Interest 21 Payments to affiliates 22 Depreciation, depletion, and amortization 18,989. 14,755. 3,332. 23 Insurance 4,399. 1,967. 2,432. 24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.) a b c d 25 e All other expenses Total functional expenses. Add lines 1 through 24e 26 BAA 953,838. 749,187. 160,844. Page 10 (D) Fundraising expenses 2,730. 20,038. 2,263. 1,726. 0. 0. 0. 15,076. 0. 1,072. 0. 902. 0. 43,807. Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here G if following SOP 98-2 (ASC 958-720) TEEA0110 05/28/14 Form 990 (2014) Form 990 (2014) Part X THE TEXAS DEMOCRACY FOUNDATION Balance Sheet 74-2619883 Page 11 Check if Schedule O contains a response or note to any line in this Part X (A) Beginning of year (B) End of year 1 2 3 4 Cash ' non-interest-bearing Savings and temporary cash investments Pledges and grants receivable, net Accounts receivable, net 5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L 5 6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees’ beneficiary organizations (see instructions). Complete Part II of Schedule L Notes and loans receivable, net Inventories for sale or use Prepaid expenses and deferred charges 6 7 8 9 7 8 9 10 a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D b Less: accumulated depreciation 11 Investments ' publicly traded securities 12 Investments ' other securities. See Part IV, line 11 13 Investments ' program-related. See Part IV, line 11 14 Intangible assets 15 Other assets. See Part IV, line 11 16 17 18 19 20 21 22 23 24 25 26 27 28 29 77,848. 82,969. 12,790. 10 a 10 b 151,467. 116,616. Total assets. Add lines 1 through 15 (must equal line 34) Accounts payable and accrued expenses Grants payable Deferred revenue Tax-exempt bond liabilities Escrow or custodial account liability. Complete Part IV of Schedule D Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L Secured mortgages and notes payable to unrelated third parties Unsecured notes and loans payable to unrelated third parties Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D Total liabilities. Add lines 17 through 25 Organizations that follow SFAS 117 (ASC 958), check here G lines 27 through 29, and lines 33 and 34. Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets X 4,220. 53,515. 508,927. 194,359. 934,628. 16,000. 93,082. 1 2 3 4 10 c 11 12 13 14 15 16 17 18 19 20 21 64,714. 37,618. 51,577. 4,220. 34,851. 443,860. 194,359. 831,199. 94. 74,105. 22 23 24 40,064. 149,146. 25 26 0. 74,199. 781,810. 3,672. 27 28 29 757,000. and complete Organizations that do not follow SFAS 117 (ASC 958), check here G and complete lines 30 through 34. 30 31 32 33 34 Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipment fund Retained earnings, endowment, accumulated income, or other funds Total net assets or fund balances Total liabilities and net assets/fund balances BAA 785,482. 934,628. 30 31 32 33 34 757,000. 831,199. Form 990 (2014) TEEA0111 05/28/14 Form 990 (2014) Part XI 1 2 3 4 5 6 7 8 9 10 THE TEXAS DEMOCRACY FOUNDATION Reconciliation of Net Assets Page 12 74-2619883 Check if Schedule O contains a response or note to any line in this Part XI Total revenue (must equal Part VIII, column (A), line 12) Total expenses (must equal Part IX, column (A), line 25) Revenue less expenses. Subtract line 2 from line 1 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) Net unrealized gains (losses) on investments Donated services and use of facilities Investment expenses Prior period adjustments 1 2 3 4 Other changes in net assets or fund balances (explain in Schedule O) Net assets or fund balances at end of year. Combine lines 3 through 9 (must equal Part X, line 33, column (B)) 5 6 7 8 9 10 940,888. 953,838. -12,950. 785,482. -15,532. 757,000. Part XII Financial Statements and Reporting Check if Schedule O contains a response or note to any line in this Part XII Yes 1 Accounting method used to prepare the Form 990: X Cash Accrual No Other If the organization changed its method of accounting from a prior year or checked ’Other,’ explain in Schedule O. 2 a Were the organization’s financial statements compiled or reviewed by an independent accountant? 2a X If ’Yes,’ check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both: Consolidated basis Both consolidated and separate basis X Separate basis b Were the organization’s financial statements audited by an independent accountant? If ’Yes,’ check a box below to indicate whether the financial statements for the year were audited on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis c If ’Yes’ to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. 3 a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? b If ’Yes,’ did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits BAA TEEA0112 05/28/14 X 2b 2c 3a X X 3b Form 990 (2014) Public Charity Status and Public Support SCHEDULE A (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust. G Attach to Form 990 or Form 990-EZ. G Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990. Name of the organization 2014 Open to Public Inspection Employer identification number THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part I Reason for Public Charity Status (All organizations must complete this part.) See instructions. The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.) 1 A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 2 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital’s name, city, and state: An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 5 170(b)(1)(A)(iv). (Complete Part II.) 6 A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 7 X An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.) 8 A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) 9 10 11 a b c d e f g An organization that normally receives: (1) more than 33-1/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions ' subject to certain exceptions, and (2) no more than 33-1/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.) An organization organized and operated exclusively to test for public safety. See section 509(a)(4). An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g. Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B. Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C. Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E. Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V. Check this box if the organization received a written determination from the IRS that is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization. Enter the number of supported organizations Provide the following information about the supported organization(s). (i) Name of supported organization (ii) EIN (iii) Type of organization (described on lines 1-9 above or IRC section (see instructions)) (iv) Is the organization listed in your governing document? Yes (v) Amount of monetary support (see instructions) (vi) Amount of other support (see instructions) No (A) (B) (C) (D) (E) Total BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. TEEA0401 07/16/14 Schedule A (Form 990 or 990-EZ) 2014 Schedule A (Form 990 or 990-EZ) 2014 Page 2 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part II Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.) Section A. Public Support Calendar year (or fiscal year beginning in) G 1 Gifts, grants, contributions, and membership fees received. (Do not include any ’unusual grants.’) 2 Tax revenues levied for the organization’s benefit and either paid to or expended on its behalf 3 The value of services or facilities furnished by a governmental unit to the organization without charge 4 Total. Add lines 1 through 3 5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) 6 (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 (f) Total 830,141. 535,493. 805,751. 717,178. 845,779. 3,734,342. 830,141. 535,493. 805,751. 717,178. 845,779. 3,734,342. 674,604. Public support. Subtract line 5 from line 4 3,059,738. Section B. Total Support Calendar year (or fiscal year beginning in) G 7 Amounts from line 4 8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources Net income from unrelated business activities, whether or not the business is regularly carried on Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) 9 10 11 (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 830,141. 535,493. 805,751. 717,178. 845,779. 3,734,342. 20,048. 54,832. 86,451. 18,536. 53,221. 233,088. 0. 0. 0. 0. 0. 0. Total support. Add lines 7 through 10 Gross receipts from related activities, etc (see instructions) 12 13 (f) Total 12 3,967,430. 782,827. 14 15 77.12 78.45 First five years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here Section C. Computation of Public Support Percentage 14 15 Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) Public support percentage from 2013 Schedule A, Part II, line 14 16 a 33-1/3% support test ' 2014. If the organization did not check the box on line 13, and the line 14 is 33-1/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization % % X b 33-1/3% support test ' 2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33-1/3% or more, check this box and stop here. The organization qualifies as a publicly supported organization 17 a 10%-facts-and-circumstances test ' 2014. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the ’facts-and-circumstances’ test, check this box and stop here. Explain in Part VI how the organization meets the ’facts-and-circumstances’ test. The organization qualifies as a publicly supported organization b 10%-facts-and-circumstances test ' 2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the ’facts-and-circumstances’ test, check this box and stop here. Explain in Part VI how the organization meets the ’facts-and-circumstances’ test. The organization qualifies as a publicly supported organization 18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions BAA Schedule A (Form 990 or 990-EZ) 2014 TEEA0402 07/16/14 Schedule A (Form 990 or 990-EZ) 2014 Part III THE TEXAS DEMOCRACY FOUNDATION Support Schedule for Organizations Described in Section 509(a)(2) Page 3 74-2619883 (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) Section A. Public Support Calendar year (or fiscal yr beginning in) G 1 Gifts, grants, contributions and membership fees received. (Do not include any ’unusual grants.’) 2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization’s tax-exempt purpose 3 Gross receipts from activities that are not an unrelated trade or business under section 513 . 4 Tax revenues levied for the organization’s benefit and either paid to or expended on its behalf 5 The value of services or facilities furnished by a governmental unit to the organization without charge 6 Total. Add lines 1 through 5 7 a Amounts included on lines 1, 2, and 3 received from disqualified persons b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year c Add lines 7a and 7b 8 Public support (Subtract line 7c from line 6.) (a) 2010 (c) 2012 (b) 2011 (d) 2013 (e) 2014 (f) Total (a) 2010 (b) 2011 (c) 2012 (d) 2013 (e) 2014 Calendar year (or fiscal yr beginning in) G 9 Amounts from line 6 10 a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 c Add lines 10a and 10b 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on 12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) 13 Total support. (Add Iines 9, 10c, 11 and 12.) 14 First five years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here (f) Total Section B. Total Support Section C. Computation of Public Support Percentage 15 16 Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) Public support percentage from 2013 Schedule A, Part III, line 15 15 16 % % Section D. Computation of Investment Income Percentage 17 Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) 17 18 Investment income percentage from 2013 Schedule A, Part III, line 17 18 19 a 33-1/3% support tests ' 2014. If the organization did not check the box on line 14, and line 15 is more than 33-1/3%, and line 17 is not more than 33-1/3%, check this box and stop here. The organization qualifies as a publicly supported organization b 33-1/3% support tests ' 2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33-1/3%, and line 18 is not more than 33-1/3%, check this box and stop here. The organization qualifies as a publicly supported organization 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions BAA TEEA0403 07/17/14 % % Schedule A (Form 990 or 990-EZ) 2014 Schedule A (Form 990 or 990-EZ) 2014 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Supporting Organizations (Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.) Section A. All Supporting Organizations Page 4 Part IV Yes 1 2 Are all of the organization’s supported organizations listed by name in the organization’s governing documents? If ’No,’ describe in Part VI how the supported organizations are designated. If designated by class or purpose, describe the designation. If historic and continuing relationship, explain 1 Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If ’Yes,’ explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2) 2 3 a Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If ’Yes,’ answer (b) and (c) below 3a b Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If ’Yes,’ describe in Part VI when and how the organization made the determination 3b c Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If ’Yes,’ explain in Part VI what controls the organization put in place to ensure such use 3c 4 a Was any supported organization not organized in the United States (’foreign supported organization’)? If ’Yes’ and if you checked 11a or 11b in Part I, answer (b) and (c) below 4a b Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If ’Yes,’ describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations 4b c Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If ’Yes,’ explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes 4c 5 a Did the organization add, substitute, or remove any supported organizations during the tax year? If ’Yes,’ answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization’s organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document) 5a b Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization’s organizing document? 5b c Substitutions only. Was the substitution the result of an event beyond the organization’s control? 5c 6 7 8 Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If ’Yes,’ provide detail in Part VI 6 Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If ’Yes,’ complete Part I of Schedule L (Form 990) 7 Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If ’Yes,’ complete Part I of Schedule L (Form 990) 8 9 a Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If ’Yes,’ provide detail in Part VI 9a b Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If ’Yes,’ provide detail in Part VI 9b c Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If ’Yes,’ provide detail in Part VI 9c 10 a Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If ’Yes,’ answer (b) below 10a b Did the organization, have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings.) BAA TEEA0404 07/17/14 No 10b Schedule A (Form 990 or 990-EZ) 2014 Schedule A (Form 990 or 990-EZ) 2014 Part IV 11 THE TEXAS DEMOCRACY FOUNDATION Supporting Organizations (continued) Page 5 74-2619883 Yes No Yes No Yes No Yes No Yes No Has the organization accepted a gift or contribution from any of the following persons? a A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization? 11a b A family member of a person described in (a) above? 11b c A 35% controlled entity of a person described in (a) or (b) above? If ’Yes’ to a, b, or c, provide detail in Part VI 11c Section B. Type I Supporting Organizations 1 2 Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If ’No,’ describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year 1 Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If ’Yes,’ explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised, or controlled the supporting organization 2 Section C. Type II Supporting Organizations 1 Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If ’No,’ describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s) 1 Section D. All Type III Supporting Organizations 1 2 3 Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided? 1 Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If ’No,’ explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s) 2 By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If ’Yes,’ describe in Part VI the role the organization’s supported organizations played in this regard 3 Section E. Type III Functionally-Integrated Supporting Organizations 1 Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions): a The organization satisfied the Activities Test. Complete line 2 below. b The organization is the parent of each of its supported organizations. Complete line 3 below. c The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions). 2 Activities Test. Answer (a) and (b) below. a Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If ’Yes,’ then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities 2a b Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If ’Yes,’ explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement 2b 3 Parent of Supported Organizations. Answer (a) and (b) below. a Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI 3a b Did the organization exercise a substantial degree of direction over the policies, programs, and activities of each of its supported organizations? If ’Yes,’ describe in Part VI the role played by the organization in this regard 3b BAA TEEA0405 07/18/14 Schedule A (Form 990 or 990-EZ) 2014 Schedule A (Form 990 or 990-EZ) 2014 Part V 1 THE TEXAS DEMOCRACY FOUNDATION Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations 74-2619883 Page 6 Check here if the organization satisfied the Integral Part Test as a qualifying trust on November 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E. Section A ' Adjusted Net Income 1 Net short-term capital gain 1 2 Recoveries of prior-year distributions 2 3 Other gross income (see instructions) 3 4 Add lines 1 through 3 4 5 Depreciation and depletion 5 6 Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) 6 7 Other expenses (see instructions) 7 8 Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) 8 Section B ' Minimum Asset Amount 1 (A) Prior Year (B) Current Year (optional) (A) Prior Year (B) Current Year (optional) Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year): a Average monthly value of securities 1a b Average monthly cash balances 1b c Fair market value of other non-exempt-use assets 1c d Total (add lines 1a, 1b, and 1c) 1d e Discount claimed for blockage or other factors (explain in detail in Part VI): 2 3 Acquisition indebtedness applicable to non-exempt-use assets Subtract line 2 from line 1d 2 3 4 Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions) 4 5 Net value of non-exempt-use assets (subtract line 4 from line 3) 5 6 Multiply line 5 by .035 6 7 Recoveries of prior-year distributions 7 8 Minimum Asset Amount (add line 7 to line 6) 8 Section C ' Distributable Amount Current Year 1 Adjusted net income for prior year (from Section A, line 8, Column A) 1 2 Enter 85% of line 1 2 3 4 Minimum asset amount for prior year (from Section B, line 8, Column A) 3 4 5 6 7 BAA Enter greater of line 2 or line 3 Income tax imposed in prior year 5 Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) 6 Check here if the current year is the organization’s first as a non-functionally-integrated Type III supporting organization (see instructions). Schedule A (Form 990 or 990-EZ) 2014 TEEA0406 07/18/14 Schedule A (Form 990 or 990-EZ) 2014 Page 7 Part V Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued) Section D ' Distributions 1 Amounts paid to supported organizations to accomplish exempt purposes 2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity 3 4 5 6 7 Administrative expenses paid to accomplish exempt purposes of supported organizations Amounts paid to acquire exempt-use assets Qualified set-aside amounts (prior IRS approval required) Other distributions (describe in Part VI). See instructions Total annual distributions. Add lines 1 through 6 8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions 9 Distributable amount for 2014 from Section C, line 6 10 Current Year Line 8 amount divided by Line 9 amount Section E ' Distribution Allocations (see instructions) 1 Distributable amount for 2014 from Section C, line 6 2 Underdistributions, if any, for years prior to 2014 (reasonable cause required ' see instructions) Excess distributions carryover, if any, to 2014: 3 (i) Excess Distributions (ii) Underdistributions Pre-2014 (iii) Distributable Amount for 2014 a b c d e From 2013 f Total of lines 3a through e g Applied to underdistributions of prior years h Applied to 2014 distributable amount i Carryover from 2009 not applied (see instructions) 4 j Remainder. Subtract lines 3g, 3h, and 3i from 3f Distributions for 2014 from Section D, line 7: $ a Applied to underdistributions of prior years b Applied to 2014 distributable amount c Remainder. Subtract lines 4a and 4b from 4 5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions) 6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions) 7 8 Excess distributions carryover to 2015. Add lines 3j and 4c Breakdown of line 7: a b c d Excess from 2013 e Excess from 2014 BAA Schedule A (Form 990 or 990-EZ) 2014 TEEA0407 10/31/14 Schedule A (Form 990 or 990-EZ) 2014 Part VI Page 8 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part III, line 12. Also complete this part for any additional information. (See instructions). BAA Schedule A (Form 990 or 990-EZ) 2014 TEEA0408 08/18/14 OMB No. 1545-0047 Schedule B (Form 990, 990-EZ, or 990-PF) Schedule of Contributors Department of the Treasury Internal Revenue Service G Attach to Form 990, Form 990-EZ, or Form 990-PF G Information about Schedule B (Form 990, 990-EZ, 990-PF) and its instructions is at www.irs.gov/form990. 2014 Name of the organization Employer identification number THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Organization type (check one): Filers of: Form 990 or 990-EZ Section: X 501(c)( 3 ) (enter number) organization 4947(a)(1) nonexempt charitable trust not treated as a private foundation 527 political organization Form 990-PF 501(c)(3) exempt private foundation 4947(a)(1) nonexempt charitable trust treated as a private foundation 501(c)(3) taxable private foundation Check if your organization is covered by the General Rule or a Special Rule Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions. General Rule For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor’s total contributions. Special Rules X For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33-1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II. For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor, during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I, II, and III. For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor, during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because $ it received nonexclusively religious, charitable, etc., contributions totaling $5,000 or more during the year Caution: An organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990, 990-EZ, or 990-PF), but it must answer ’No’ on Part IV, line 2, of its Form 990; or check the box on line H of its Form 990-EZ or on its Form 990-PF, Part I, line 2, to certify that it does not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF). BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990, 990EZ, or 990-PF. TEEA0701 11/13/14 Schedule B (Form 990, 990-EZ, or 990-PF) (2014) Schedule B (Form 990, 990-EZ, or 990-PF) (2014) Page 1 of 1 Name of organization Employer identification number THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part I Contributors (see instructions). Use duplicate copies of Part I if additional space is needed. (a) Number 1 of Part 1 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person BERNARD AND AUDRE RAPOPORT FOUNDATION X Payroll $ 5400 BOSQUE BLVD, STE. 302 WACO (a) Number 2 TX 50,000. Noncash (Complete Part II for noncash contributions.) 76710 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person AUDRE RAPOPORT X Payroll $ 5400 BOSQUE BLVD, STE. 302 WACO (a) Number 3 TX 60,000. Noncash (Complete Part II for noncash contributions.) 76719 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person OPEN SOCIETY INSTITUTE X Payroll $ 224 WEST 57TH STREET NEW YORK (a) Number 4 NY 100,000. Noncash (Complete Part II for noncash contributions.) 10019 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person ALEC RHODES X Payroll $ 4015 ROSEDALE AVENUE AUSTIN (a) Number 5 TX 25,000. Noncash (Complete Part II for noncash contributions.) 78756 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person CREEKMORE & ADELE FATH CHARITABLE FOUNDATION X Payroll $ 5401 RIDGE OAK DR. AUSTIN (a) Number TX 100,000. Noncash (Complete Part II for noncash contributions.) 78731 (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll $ Noncash (Complete Part II for noncash contributions.) BAA TEEA0702 07/17/14 Schedule B (Form 990, 990-EZ, or 990-PF) (2014) SCHEDULE D (Form 990) Department of the Treasury Internal Revenue Service Name of the organization OMB No. 1545-0047 Supplemental Financial Statements 2014 G Complete if the organization answered ’Yes,’ to Form 990, Part IV, lines 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. G Attach to Form 990. G Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990. Open to Public Inspection Employer identification number THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part I Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 6. (a) Donor advised funds (b) Funds and other accounts 1 2 3 4 Total number at end of year Aggregate value of contributions to (during year) Aggregate value of grants from (during year) Aggregate value at end of year 5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization’s property, subject to the organization’s exclusive legal control? Yes No 6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? Yes No Part II Conservation Easements. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 7. 1 Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of land for public use (e.g., recreation or education) Preservation of a historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space 2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. Held at the End of the Tax Year a Total number of conservation easements 2a b Total acreage restricted by conservation easements 2b c Number of conservation easements on a certified historic structure included in (a) 2c d Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register 2d 3 Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year G 4 Number of states where property subject to conservation easement is located G 5 6 Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year G Yes No Yes No 7 Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year G$ 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? 9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes the organization’s accounting for conservation easements. Part III Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 8. 1 a If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIII, the text of the footnote to its financial statements that describes these items. b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenue included in Form 990, Part VIII, line 1 $ (ii) Assets included in Form 990, Part X $ 2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: a Revenue included in Form 990, Part VIII, line 1 $ b Assets included in Form 990, Part X $ BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990. TEEA3301 10/28/14 Schedule D (Form 990) 2014 Schedule D (Form 990) 2014 Part III Page 2 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) 3 Using the organization’s acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): a Public exhibition d Loan or exchange programs b Scholarly research e Other c Preservation for future generations 4 Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in Part XIII. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization’s collection? Yes No Part IV Escrow and Custodial Arrangements. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1 a Is the organization an agent, trustee, custodian, or other intermediary for contributions or other assets not included on Form 990, Part X? b If ’Yes,’ explain the arrangement in Part XIII and complete the following table: Yes No Amount c Beginning balance 1c d Additions during the year 1d e Distributions during the year 1e f Ending balance 1f 2 a Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability? b If ’Yes,’ explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII Part V Yes No Endowment Funds. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 10. (a) Current year (b) Prior year (c) Two years back (d) Three years back (e) Four years back 1 a Beginning of year balance b Contributions c Net investment earnings, gains, and losses d Grants or scholarships e Other expenditures for facilities and programs f Administrative expenses g End of year balance 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi-endowment G % b Permanent endowment G % c Temporarily restricted endowment G % The percentages in lines 2a, 2b, and 2c should equal 100%. 3 a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: (i) unrelated organizations (ii) related organizations b If ’Yes’ to 3a(ii), are the related organizations listed as required on Schedule R? 4 Describe in Part XIII the intended uses of the organization’s endowment funds. Yes No 3a(i) 3a(ii) 3b Part VI Land, Buildings, and Equipment. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 11a. See Form 990, Part X, line 10. Description of property (a) Cost or other basis (investment) (b) Cost or other basis (other) 1 a Land b Buildings c Leasehold improvements d Equipment 151,467. e Other Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10c.) BAA TEEA3302 08/25/14 (c) Accumulated depreciation 116,616. (d) Book value 34,851. 34,851. Schedule D (Form 990) 2014 Schedule D (Form 990) 2014 Page 3 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part VII Investments ' Other Securities. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 11b. See Form 990, Part X, line 12. (a) Description of security or category (including name of security) (b) Book value (c) Method of valuation: Cost or end-of-year market value (1) Financial derivatives (2) Closely-held equity interests (3) Other (A) (B) (C) (D) (E) (F) (G) (H) (I) Total. (Column (b) must equal Form 990, Part X, column (B) line 12.) Part VIII Investments ' Program Related. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 11c. See Form 990, Part X, line 13. (a) Description of investment type (b) Book value (c) Method of valuation: Cost or end-of-year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Column (b) must equal Form 990, Part X, column (B) line 13.) Part IX Other Assets. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 11d. See Form 990, Part X, line 15. (a) Description (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (b) Book value RESEARCH, PHOTOGRAPHIC, BUSINESS FILES, TRADEMARKS LITERARY RIGHTS 134,359. 60,000. Total. (Column (b) must equal Form 990, Part X, column (B), line 15.) Part X 194,359. Other Liabilities. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25 (a) Description of liability (1) Federal income taxes (2) ANNUITY PAYABLE (3) (4) (5) (6) (7) (8) (9) (10) (11) (b) Book value 0. Total. (Column (b) must equal Form 990, Part X, column (B) line 25.) 0. 2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization’s financial statements that reports the organization’s liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII BAA TEEA3303 08/25/14 Schedule D (Form 990) 2014 Schedule D (Form 990) 2014 Part XI THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 12a. 1 2 Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: a Net unrealized gains (losses) on investments b Donated services and use of facilities c Recoveries of prior year grants d Other (Describe in Part XIII.) e Add lines 2a through 2d 3 Subtract line 2e from line 1 4 Amounts included on Form 990, Part VIII, line 12, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b b Other (Describe in Part XIII.) c Add lines 4a and 4b 5 Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) Page 4 1 2a 2b 2c 2d 2e 3 4a 4b 4c 5 Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 12a. 1 2 Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: a Donated services and use of facilities b Prior year adjustments c Other losses d Other (Describe in Part XIII.) 1 2a 2b 2c 2d e Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part IX, line 25, but not on line 1: a Investment expenses not included on Form 990, Part VIII, line 7b b Other (Describe in Part XIII.) c Add lines 4a and 4b 5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) 2e 3 3 4 4a 4b 4c 5 Part XIII Supplemental Information. Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information. BAA Schedule D (Form 990) 2014 TEEA3304 10/28/14 SCHEDULE G (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service OMB No. 1545-0047 Supplemental Information Regarding Fundraising or Gaming Activities 2014 Complete if the organization answered ’Yes’ to Form 990, Part IV, lines 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. G Attach to Form 990 or Form 990-EZ. Open to Public Inspection G Information about Schedule G (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990. Name of the organization Employer identification number THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Fundraising Activities. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 17. Form 990-EZ filers are not required to complete this part. 1 Indicate whether the organization raised funds through any of the following activities. Check all that apply. a Mail solicitations e Solicitation of non-government grants Internet and email solicitations Solicitation of government grants b f Part I c Phone solicitations d In-person solicitations g Special fundraising events 2 a Did the organization have a written or oral agreement with any individual (including officers, directors, trustees or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? b If ’Yes,’ list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization. (i) Name and address of individual or entity (fundraiser) (ii) Activity (iii) Did fundraiser have custody or control of contributions? Yes (iv) Gross receipts from activity (v) Amount paid to (or retained by) fundraiser listed in column (i) Yes No (vi) Amount paid to (or retained by) organization No 1 2 3 4 5 6 7 8 9 10 G Total 3 List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing. BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. TEEA3701 09/16/14 Schedule G (Form 990 or 990-EZ) 2014 Schedule G (Form 990 or 990-EZ) 2014 Page 2 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 Part II Fundraising Events. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000. R E V E N U E D I R E C T E X P E N S E S (a) Event #1 (b) Event #2 (c) Other events RABBLE ROUSER MOLLY AWARDS 60TH ANNIVERSARY (event type) (event type) (total number) (d) Total events (add column (a) through column (c)) 1 Gross receipts 37,457. 198,389. 58,296. 294,142. 2 Less: Contributions 23,542. 198,389. 58,296. 280,227. 3 Gross income (line 1 minus line 2) 13,915. 0. 0. 13,915. 4 Cash prizes 5 Noncash prizes 6 Rent/facility costs 7 Food and beverages 8 Entertainment 400. 400. 9 Other direct expenses 28,255. 99,746. 10 11 9,097. 62,394. G G Direct expense summary. Add lines 4 through 9 in column (d) Net income summary. Subtract line 10 from line 3, column (d) 100,146. -86,231. Part III Gaming. Complete if the organization answered ’Yes’ to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a. D I R E C T E X P E N S E S 9 (b) Pull tabs/Instant bingo/progressive bingo (a) Bingo R E V E N U E 1 Gross revenue 2 Cash prizes 3 Noncash prizes 4 Rent/facility costs 5 Other direct expenses 6 Volunteer labor 7 Direct expense summary. Add lines 2 through 5 in column (d) G 8 Net gaming income summary. Subtract line 7 from line 1, column (d) G % Yes No Yes No % Yes No Enter the state(s) in which the organization conducts gaming activities: a Is the organization licensed to conduct gaming activities in each of these states? b If ’No,’ explain: 10 a Were any of the organization’s gaming licenses revoked, suspended or terminated during the tax year? b If ’Yes,’ explain: BAA (d) Total gaming (add column (a) through column (c)) (c) Other gaming TEEA3702 09/16/14 % Yes No Yes No Schedule G (Form 990 or 990-EZ) 2014 Schedule G (Form 990 or 990-EZ) 2014 THE TEXAS DEMOCRACY 11 Does the organization operate gaming activities with nonmembers? 12 FOUNDATION Yes Page 3 No Yes No 74-2619883 Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity formed to administer charitable gaming? 13 Indicate the percentage of gaming activity conducted in: a The organization’s facility 13 a b An outside facility 13 b 14 Enter the name and address of the person who prepares the organization’s gaming/special events books and records: % % Name G Address G 15 a Does the organization have a contact with a third party from whom the organization receives gaming revenue? G $ b If ’Yes,’ enter the amount of gaming revenue received by the organization and the amount of gaming revenue retained by the third party G $ . c If ’Yes,’ enter name and address of the third party: Yes No Name G Address G 16 Gaming manager information: Name G Gaming manager compensation G Description of services provided G Director/officer 17 $ Employee Independent contractor Mandatory distributions a Is the organization required under state law to make charitable distributions from the gaming proceeds to retain the state gaming license? b Enter the amount of distributions required under state law to be distributed to other exempt organizations or spent in the G $ organization’s own exempt activities during the tax year Part IV BAA Yes No Supplemental Information. Provide the explanations required by Part I, line 2b, columns (iii) and (v), and Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also provide any additional information (see instructions). TEEA3703 09/16/14 Schedule G (Form 990 or 990-EZ) 2014 SCHEDULE O (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service Supplemental Information to Form 990 or 990-EZ OMB No. 1545-0047 Complete to provide information for responses to specific questions on Form 990 or 990-EZ or to provide any additional information. G Attach to Form 990 or 990-EZ. G Information about Schedule O (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990. 2014 Name of the organization Open to Public Inspection Employer identification number 74-2619883 THE TEXAS DEMOCRACY FOUNDATION Pt VI, Line 2 TWO BOARD MEMBERS ARE FAMILY MEMBERS. Pt VI, Line 11b THE FORM 990 IS PROVIDED TO THE BOARD BEFORE FILING. EACH BOARD MEMBER IS REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF Pt VI, Line 12c INTEREST AS THE ARISE. THE BOARD SERVES AS THE COMPENSATION COMMITTEE AND REVIEWS THE EXECUTIVE Pt VI, Line 15a PUBLISHER’S COMPENSATION IN PREPARING THE ANNUAL BUDGET. THE ORGANIZATION’S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND Pt VI, Line 19 FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. TEEA4901 08/18/14 Schedule O (Form 990 or 990-EZ) 2014 THE TEXAS DEMOCRACY FOUNDATION 74-2619883 1 Schedule O (Form 990 or 990-EZ), Supplemental Information to Form 990 or 990-EZ Form 990, Page 10, Line 11g Other Service Fees (continued) Description CONTRACTED SERVICES & TEMP WORK WEBSITE DESIGN SERVICES SPECIAL PROJECTS FREELANCE WRITERS (A) Total 19,203. 2,770. 42,050. 15,341. 123,340. (B) Program services 0. 0. 42,050. 15,341. 123,340. (C) Management and general 19,203. 2,770. 0. 0. 0. (D) Fundraising 0. 0. 0. 0. 0. Receive Updated Acknowledgment Statuses Log 05/16/2016 16:19:57--Retrieve Updated Acknowledgment Statuses from the Intuit Host Server for EFIN 704905 democracy foundation.14n (Federal) Filing Accepted This Federal 990 Tax Exempt Ext. Filing was accepted by the agency on Nov. 03, 2015. s:\tax files 14\tx democracy foundation.14n (Federal) Filing Accepted This Federal 990 Tax Exempt Filing was accepted by the agency on May. 16, 2016. Acknowledgments Na me/ Return Type/ SSNIEIN Submission ID Status Date THE TEXAS DEMOCRACY FOUR 990 Fed 1st Extension Accepted 11/03/2015 74-2619883 70490520153070824848 THE TEXAS DEMOCRACY FOUR 990 Fed Return Accepted 05/18/2016 74261988?? 70490520161379245858 05/16/2016 Page 1