"You really don't need people to do this. You just need control over the legislature and you need money, and we have both."
Subjects Inside: Article
Application Counts By
AVC Legislative Report, CRS Reports,
Convention of State, Compact for America, COS, CFA--Which States are Which?, The Historic Record of COS, COS, CFA Laws, COS Articles, CRS Reports on COS/CFA, COS, CFA Financial Records, CFA Financials, COS Financials, COS/CFA Financial Conclusions, John
Birch Society, Con-Con, Runaway
Convention, Who Called the Convention, Congressional
Vote on a "Runaway" Convention, "Obey
the Constitution, Only Two More States", Illegal Rescissions, The Phony Burger Letter, The
Madison Letter, Fotheringham Exchange, JBS Articles, Sibley
Lawsuit, General Interest, Article V.org,
Robert Natelson, History
of Article V, Counting the Applications, The Numeric Count History, Congressional Decision of May 5, 1789,
Development of Article V, The Committee of the Whole, The Committee of Detail, August 30, September 10, Committee of Style, September 15, Official Government Documents,
History of FOAVC, Founders,
Page, 14th Amendment, The Electoral Process, Packets
, (Applications grouped by numeric count as required by the Constitution),
Same Subject (Applications grouped by amendment subject, not required by the Constitution for a convention call)
CFA 2014 Tax Return
Compact For America(Action)
Compact for America(Action) filed a 990-N tax form with the Internal Revenue Service for tax year 2014. The form listed the address of the organization as 2710 Ivy
Dell Ct., Houston, TX, 77059. This is the same address listed by
Compact for American Educational Foundation and the Compact for a
Balanced Budget Commission as their physical address. The one page
form states assets for Compact for America(Action) are "normally
or less." Based on CFA documentation CFA(Action) had zero assets,
income and revenue for tax year 2014. Statements by Compact for America
indicated Compact for America(Action) is the only "political" arm of
Compact for America. However all records indicate all operations of CFA
are being conducted by Compact for America Educational Foundation, Inc.
Compact for America Educational Foundation, Inc.
Compact for America Educational Foundation, Inc., filed
a 34 page tax return for tax year 2014. FOAVC is publishing both
a copy of the tax form provided it by Compact for America and a copy
obtained from CitizenAudit.org. Copies of tax pages shown below are
taken from the CFA tax form and are highlighted as appropriate. The
Foundation reported a total of 10 volunteers, gross receipts of $235,362 and assets of $141,865 for tax year 2014.
In its Statement of Program Service Accomplishments (Page 2 of the tax form) the Foundation lists one item:
to give "educational presentations" at two "public policy and
philosophical conferences in Las Vegas, NV and Washington DC." The tax
form requires Compact for America "describe the organization's program
service accomplishments for each of its three largest program services,
as measured by expenses." Compact for America lists no other service
accomplishments that tax year other than stating, "The Foundation's
educational team researched and
wrote nonpartisan policy papers...to advance the Foundation's mission."
FOAVC's research indicates the "nonpartisan policy papers" used "to
advance the Foundation's mission" may not have complied with IRS non partisanship
regulations. The papers appear to fail the required equally presenting
both sides of an issue standard mandated by Internal Revenue Service
The 2014 CFA tax form contains a required Statement of Functional Expenses
(Page 10 of the tax form).
This form itemizes the expenses for the program services
accomplishments described on Page 2 of the tax form. As only one
accomplishment is listed by CFA presumably all expenses for CFA refer
to that one accomplishment described on Page 2 of the tax form which
was to attend two "public policy and philosophical" conferences in Las
Vegas and Washington DC as no other accomplishment is described. The itemized statement lists the entire $44,900 in
management expense under the "program service accomplishments" which
was singularly described as attending two conferences in Las Vegas and
Therefore the itemized statement reveals Compact for America paid two
CFA managers $44,900 for the sole purpose of attending two "public policy and
in Las Vegas and Washington DC. If this were otherwise, the itemized
statement would show partial amounts of the $44,900 in other columns,
such as "management and general expenses." No such figures are shown. While the tax records shows the two managers, Nick Dranias and Chip DeMoss were paid nothing directly by CFA, tax records also show companies exclusively controlled by these two individuals were paid a total of $44,900 in management compensation fees.
The cost for writing "nonpartisan" policy papers appears
to be listed under "educational communication" and is shown as $750. As
this amount is listed separately from the $44,900 listed for management
expenses, it must presumed this expense relates to a payment made to an unnamed
individual who wrote the "nonpartisan" papers. If the managers had
written the papers themselves or the money referred to a time estimate
the $750 would have been listed in the "management and general expenses
column" of the form rather than the "program service expenses" column.
Presumably, the $9,068 printing expenses refers to printing costs for
printing the "nonpartisan" papers presented at the two "public policy
and philosophical" conferences in Las Vegas and Washington DC.
The itemized statement shows a total
of $89,319 was spent to accomplish the program service accomplishment
described on Page 2 of the CFA tax form as attending two "public policy
and philosophical" conferences in Las Vegas and Washington DC. The
expense is itemized as $44,900 for management
expenses, $24,568 in travel expenses, $10,033 in conference,
conventions and meetings costs, $9,068 in printing costs, and $750 for
"educational communication" to attend the conferences.
According to the tax form the cost
presenting CFA material (booth space rental) at the two
conferences was $10,033 or
approximately $5,000 per conference, presumably to reserve presentation
or booth space at the two conferences. Travel expenses are listed as
$24,568 or $12,284 for each individual to attend the two conferences.
According to Internet sources:
Average cost of a hotel room per night in Las Vegas in 2014 was $116.00 or $232 for two people;
Average cost of a hotel room per night in Washington DC was $243 or $486 for two people;
Cost of a
nonstop flight from Houston TX (headquarters of CFA) to Las
Vegas (round trip) $622 or $1244 for two people;
Cost of a nonstop flight from
Houston TX (headquarters of CFA) to Washington DC (round trip) $367 or $734 for two people;
Average cost of a restaurant (in the
casinos) in Las Vegas $50.00 a person or $150 a day per person or $300 for two people;
Average cost of restaurant in Washington DC is $70.00 a person or $210 a day per person or $420 for two people.
Cost of two round trip tickets to Las Vegas,
$1244, Daily costs for two: hotel rooms $232; meals $300. Total daily
expenses = $532.
Cost of two round trip tickets
to Washington DC, $734, Daily costs for two: hotel rooms $486; meals
$420. Total daily expenses = $906.
on the information in the 2014 tax report, approximately $1,978
dollars was spent in airline travel by Compact for America to fly its
two managers to Las Vegas
and Washington DC. Subtracting the $1,978 from the total reported
$24,568 for the two conferences leaves $22,590 or $11,295 in expenses
for each the two CFA representatives while attending the conferences.
Assuming half of the $11,295 was spent
on each trip ($5647) and based on the daily total expenses divided into
the $5647 to obtain the days spent in each city, CFA reported to the
IRS that its two managers were paid $44,900 to spend 10 days in Las
a "public policy and philosophical conference" and six days in
Washington DC at a similar conference.
Page 2 of Schedule C of the tax form states $93,497 was spent for
"exempt purpose expenditures." The form further states that zero money was spent
on lobbying expenditures to influence public opinion (grass roots
lobbying) and zero amount was spent to "influence a legislative body
(direct lobbying). On Part IV, Schedule C (Page 3) Compact for America affirms this statement saying, "No
political campaign activities took place during the year." According to public record the states of Alaska and Georgia enacted laws to become the first two states to join the Compact for Balanced Budget in 2014. Alaska joined the compact on July 21, 2014; Georgia
on April 12, 2014. Compact for America is on record as having written
the compact which was enacted by these two states.
Page Last Updated: 14 AUGUST 2017