FAIR

CharityWatch's rating of FAIR (Federation for American Immigration Reform) includes the financial activities of the two 501(c)(3) public charities included in the organization's 2020 audited consolidated financial statements: (1) Federation for American Immigration Reform (FAIR) (tax ID #52-1136126), and (2) Immigration Reform Law Institute (tax ID #52-1469956). All significant intercompany balances and transactions have been eliminated in the audit consolidation.

The rating does not include the financial activities of FAIR's related 501(c)(4) tax-exempt, social welfare organization, FAIR Congressional Task Force (tax ID #52-1258403). CharityWatch currently does not issue a separate rating for the Task Force due to its small size. According to the FAIR audited Consolidating Schedule of Activities, the Task Force had only $100,231 in total revenue and $5,528 in total expenses in 2020. The Task Force's 2020 total revenue includes a $100,000 grant received from FAIR, according to FAIR's 2020 tax filing (IRS Form 990, Schedules I & R).

CharityWatch separates the ratings for 501(c)(3) & 501(c)(4) organizations, even when such organizations 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.

According to the Federation for American Immigration Reform (FAIR) consolidated audit of December 31, 2020 (Note 6, Concentration of Risk, Concentration of Credit Risk):

"FAIR and Affiliates also invests in various investment securities that are exposed to various risks, including market, interest rate and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of the investment securities will occur in the near term and such changes could materially affect the amounts reported in the [audited] consolidated financial statements."

According to the Federation for American Immigration Reform (FAIR) consolidated audit of December 31, 2020 (Note 6, Concentration of Risk, Concentration of Revenue):

"During the year ended December 31, 2020, FAIR and Affiliates received $5,455,000 in grants and contributions from five donors. Grants and contributions from the five donors represented approximately 58% of the total operating revenue and support recognized by FAIR and Affiliates for the year ended December 31, 2020. If a significant reduction in funding from these donors were to occur, it might adversely impact FAIR and Affiliates' financial position and ability to carry out its program activities."

According to the Federation for American Immigration Reform (FAIR) consolidated audit of December 31, 2020 (Note 6, Other Risks and Uncertainties):

"The COVID-19 outbreak in the United States has caused business disruption through mandated and voluntary closings of businesses across the country for non-essential services. While the disruption is currently expected to be temporary, there is considerable uncertainty about the duration of closings. FAIR and Affiliates successfully maintained the continuity of its operations by utilizing staff working remotely; however, at this point, the extent to which COVID-19 will continue to impact FAIR and Affiliate's [sic] financial conditions or results of operations is uncertain and being evaluated by management and the Board."

According to the Federation for American Immigration Reform (FAIR) consolidated audit of December 31, 2020 (Note 1 re: Revenue Recognition):

"FAIR and Affiliates received two loans under the Small Business Administration's (SBA) Paycheck Protection Program (PPP). FAIR and Affiliates has elected to record the PPP loan proceeds as conditional contributions...as FAIR and Affiliates has satisfied the eligibility requirements for forgiveness under the PPP, including incurring the necessary qualifying expenditures. As the conditions were satisfied during the year ended December 31, 2020, the loan proceeds were recognized as government grants in the accompanying [audited] consolidated statement of activities."

[The Federation for American Immigration Reform and Affiliates audited Consolidating Schedule of Activities for the year ended December 31, 2020 reports that FAIR received $693,680 in government grants, and Immigration Reform Law Institute (IRLI) received $242,582 in government grants.]

According to the Federation for American Immigration Reform (FAIR) and Immigration Reform Law Institute (IRLI) 2020 tax filings, FAIR and IRLI each report re: Compensation, Supplemental Information (IRS Form 990, Schedule J, Part III):

Regarding nonfixed payments to officers, directors, trustees, key employees and highest compensated employees (Schedule J, Part I, Line 7):

"Officers and other key employees received bonuses that were based on an appraisal of his/her performance. The remaining employees listed also received $500 each in a holiday bonus for the year ended December 31, 2020."

FAIR reports $19,344 in "Bonus & incentive compensation" paid to Daniel A. Stein, Esq., President; his reported total compensation in 2020 is $405,445. FAIR also reports "Bonus & incentive compensation" paid to six other individuals in 2020, with the amounts ranging from $8,151 to $500. The reported total compensation in 2020 for the six individuals ranges from $296,104 to $151,623 (FAIR's IRS Form 990, Schedule J, Part II).

In addition, IRLI reports $20,500 in "Bonus & incentive compensation" paid to Dale Wilcox, Executive Director; his reported total compensation in 2020 is $295,737. IRLI also reports $3,000 in "Bonus & incentive compensation" paid to one other individual, the Director of Litigation; his reported total compensation in 2020 is $160,443 (IRLI's IRS Form 990, Schedule J, Part II).