CharityWatch's rating of Environmental Defense Action Fund (EDF Action) includes the financial activities of the 501(c)(4) tax-exempt, social welfare organization (tax ID #90-0080500). CharityWatch provides a separate rating for Environmental Defense Fund (EDF), the related 501(c)(3) public charity (tax ID #11-6107128).
According to the Environmental Defense Action Fund (EDF Action) audit of September 30, 2024 (Note 6, Related Parties): "EDF Action received grants of $5,371,270 for the year ended September 30, 2024 from EDF Inc., representing a portion of the grassroots lobbying and the direct lobbying allowances permitted by EDF Inc. as a 501(c)(3) organization..."
According to EDF Action's IRS Form 990, Schedule R, Part V, Transactions with Related Organizations, EDF Action reports providing a "gift, grant, or capital contribution to related organization(s)" of $7,350,000 to EDF Action Votes, Inc., a related Section 527 political action fund. This grant represents 27.2% of Total Expenses, and 31.6% of Program Expenses for EDF Action during fiscal 2024.
CharityWatch separates the ratings for 501(c)(4) & 501(c)(3) organizations, even when they are included together in a consolidated audit, due to their differing treatments under the IRS tax code. For more information on this topic, please see our sections on Types of Non-Profits, Tax Status, and Treatment of Related Organizations, which can be found on the Our Process page. CharityWatch's methodology is not designed to rate political action committees. For more information about things to consider when donating to organizations that have related public charity and social welfare entities, read "Sorting Out Nonprofit Pairs." |