THE REASON FOUNDATION

EIN: 953298239 501(c)(3) Education

LOS ANGELES, CA

Total Revenue
$22,810,664
Total Expenses
$21,964,556
Total Assets
$29,097,754
Net Assets
$21,966,537
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Financial Trends

Organization Details

Formation Year
1978
Legal Domicile
CA
Principal Officer
DAVID NOTT
Phone
3107408579
Tax Period
2024-10-01 to 2025-09-30

THE REASON FOUNDATION, founded in 1978, is a mid-sized nonprofit in the Education sector that reported $22.8M in total revenue in fiscal year 2024. Expenses of $22.0M left a modest 4% surplus.

Mission

REASON FOUNDATION ADVANCES A FREE SOCIETY BY DEVELOPING, APPLYING, AND PROMOTING LIBERTARIAN PRINCIPLES, INCLUDING INDIVIDUAL LIBERTY, FREE MARKETS, AND THE RULE OF LAW. WE USE JOURNALISM AND PUBLIC POLICY RESEARCH TO INFLUENCE THE FRAMEWORKS AND ACTIONS OF POLICYMAKERS, JOURNALISTS, AND OPINION LEADERS.

Program Service Accomplishments

Program 1
Expenses: $7,756,705 Revenue: $742,017

PROMOTING FREE MINDS AND FREE MARKETS SINCE 1968- 11 ISSUES PUBLISHED ONLINE AND IN PRINT- MORE THAN 1,500 ONLINE EXCLUSIVE ARTICLES - 52,000 PAID/REQUESTED COPIES - AVERAGE OF 3.8 MILLION USER...

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PROMOTING FREE MINDS AND FREE MARKETS SINCE 1968- 11 ISSUES PUBLISHED ONLINE AND IN PRINT- MORE THAN 1,500 ONLINE EXCLUSIVE ARTICLES - 52,000 PAID/REQUESTED COPIES - AVERAGE OF 3.8 MILLION USER VISITS PER MONTH AT REASON.COM - SPECIALIZED ONLINE NEWSLETTERS ON GOVERNMENT OVERREACH, SURFACE TRANSPORTATION, AVIATION, EDUCATION FUNDING, MEDIA, AND BREAKING NEWS; AVERAGE OF 9.2 MILLION REASON TV VIDEO VIEWS PER MONTH

Program 2
Expenses: $7,075,812 Revenue: $293,344

REASON WORKS WITH MOTIVATED POLICYMAKERS AND OTHER STAKEHOLDERS TO DEVELOP AND IMPLEMENT MARKET-BASED REFORMS THAT ARE A MODEL FOR POLICYMAKERS AT ALL LEVELS OF GOVERNMENT. OUR PENSION INTEGRITY...

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REASON WORKS WITH MOTIVATED POLICYMAKERS AND OTHER STAKEHOLDERS TO DEVELOP AND IMPLEMENT MARKET-BASED REFORMS THAT ARE A MODEL FOR POLICYMAKERS AT ALL LEVELS OF GOVERNMENT. OUR PENSION INTEGRITY PROJECT EDUCATES POLICYMAKERS AND TAXPAYERS ON PENSION REFORM. WE ACTIVELY WORKED WITH POLICYMAKERS IN 17 STATES ON BEST PRACTICES IN DESIGNING SUSTAINABLE PUBLIC PENSION SYSTEMS. WE PRODUCED THE PENSION SOLVENCY AND PERFORMANCE REPORT AND THE GOLD STANDARD SERIES, CORE PRODUCTS THAT ARE USED TO EDUCATE LEGISLATORS AND EXPAND OUTREACH. WE TESTIFIED 20 TIMES AT THE STATE AND LOCAL LEVELS, SEND A MONTHLY NEWSLETTER FEATURING NATIONAL TRENDS IN PENSION REFORM, AND PRODUCED MORE THAN 50 MEDIA COMMENTARIES. REASON'S EDUCATION TEAM IS A LEADING VOICE IN PROMOTING IMPROVED EDUCATIONAL OUTCOMES FOR ALL CHILDREN VIA SCHOOL CHOICE. OUR TEAM ACTIVELY ENGAGED LEGISLATORS AND STAKEHOLDERS IN 23 STATES, DESIGNING OPEN ENROLLMENT MODELS THAT GIVE FAMILIES GREATER FLEXIBILITY IN CHOOSING BETTER SCHOOLS. WE TESTIFIED 26 TIMES AT THE STATE AND LOCAL LEVELS. OUR DATA ANALYSES ARE WIDELY USED AS BENCHMARKS IN SUPPORT OF CHOICE-CENTERED SCHOOL FUNDING, AND OUR FISCAL ANALYSES INFORM DEBATES ON ACCOUNTABILITY. OUR TRANSPORTATION TEAM COLLABORATED WITH LEGISLATORS IN 8 STATES ON INTERSTATE HIGHWAY TOLLING, PILOT PROJECTS FOR MILEAGE BASED USER FEES, AND MANAGED LANE CONCESSIONS. WE TESTIFIED 20 TIMES AT THE FEDERAL AND STATE LEVELS ON TRANSIT PROGRAMS, CALLING FOR MODERNIZED AIR TRAFFIC CONTROL, EXPANDED PRIVATE INVESTMENT TOOLS, AND DEREGULATION. REASON'S DRUG POLICY TEAM WORKED IN 17 STATES AND AT THE FEDERAL LEVEL TO HELP POLICYMAKERS UNDERSTAND THE CONSEQUENCES OF REGULATING LEGAL CANNABIS, HEMP, AND PSYCHEDELICS MARKETS. WE TESTIFIED 13 TIMES AT THE STATE LEVEL AND PROVIDED RESEARCH SUPPORT TO POLICYMAKERS SEEKING TO FIX THE CHALLENGES OF LEGALIZATION.

Program 3
Expenses: $3,808,053

PROMOTING FREE MINDS AND FREE MARKETS THROUGH ONLINE VIDEO JOURNALISM.- 984 VIDEOS PRODUCED- AVERAGE OF 10,049,000 VIDEOS PLAYED EACH MONTHPODCASTSREASON PRODUCES MULTIPLE PODCASTS, INCLUDING THE...

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PROMOTING FREE MINDS AND FREE MARKETS THROUGH ONLINE VIDEO JOURNALISM.- 984 VIDEOS PRODUCED- AVERAGE OF 10,049,000 VIDEOS PLAYED EACH MONTHPODCASTSREASON PRODUCES MULTIPLE PODCASTS, INCLUDING THE REASON ROUNDTABLE, A WEEKLY DISCUSSION OF THE WEEK'S BIGGEST STORIES AND THEIR CONNECTION TO THE IDEAS OF FREE MINDS AND FREE MARKETS; THE REASON INTERVIEW WITH NICK GILLESPIE, A WEEKLY CONVERSATION WITH INNOVATIVE AND INTERESTING THINKERS FROM A VARIETY OF DISCIPLINES; FREE MEDIA, WHICH EXAMINES MEDIA BIAS; AND THE MONTHLY SOHO FORUM DEBATES, FEATURING PUBLIC INTELLECTUALS FACING OFF OVER CONTROVERSIAL ISSUES. THE BEST OF REASON MAGAZINE USES AI TO SIMULATE EDITOR-IN-CHIEF KATHERINE MANGU-WARD READING A WEEKLY SELECTION FROM REASON. - AVERAGE OF 596,000 DOWNLOADS PER MONTH

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Trantor Score

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

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Financial Overview (2024)

Revenue Breakdown

Contributions & Grants $20,527,956
Program Service Revenue $1,035,361
Investment Income $1,132,319
Other Revenue $115,028
TOTAL REVENUE $22,810,664

Expense Breakdown

Grants Paid $60,000
Salaries & Benefits $14,159,186
Fundraising Expenses $1,868,752
Program Expenses $19,336,621
Other Expenses $7,745,370
TOTAL EXPENSES $21,964,556

Year-over-Year Comparison

2024 2023 Change
Revenue $22,810,664 $23,300,815 0.0%
Expenses $21,964,556 $19,863,540 +0.1%
Net Income $846,108 $3,437,275 -0.8%
Key Indicators
Grants to Organizations Grants to Individuals Lobbying Political Activity Foreign Activities Donor Advised Fund Schedule B Required
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Governance

Voting Members
21
Independent Members
19
Employees
113
Volunteers
19

Governance Policies

Conflict of Interest Policy
Whistleblower Policy
Document Retention Policy

Special Practices & Reported Activities

Operated a School
Operated a Hospital
Provided First Class Travel
Reported Conflict of Interest
Reported Asset Diversion
Excess Benefit Transaction
Made Political Expenditures
Engaged in Lobbying
Operated Donor Advised Fund
Maintained Art Collections
Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers
8
$2,071,368
Total Directors
23
$802,269
Key Employees
0
$0
Highest Compensated
5
reported
Name Title Hours/Week Role Reportable Comp Other Comp Total
DAVID NOTT PRESIDENT, CEO 40.00
Officer Director
$407,827 $154,268 $562,095
ADRIAN T MOORE VICE PRESIDENT POLICY 40.00
Officer
$256,830 $7,253 $264,083
JONATHAN GRAFF CHIEF FINANCIAL OFFICER 40.00
Officer
$250,251 $9,750 $260,001
LEONARD GILROY VP GOVERNMENT REFORM 40.00
Officer
$250,237 $4,254 $254,491
NICHOLAS GILLESPIE EDITOR AT LARGE 40.00
Highest
$247,174 $7,253 $254,427
KATHERINE MANGU-WARD VP/EDITOR-IN-CHIEF 40.00
Officer
$240,585 $9,750 $250,335
ROBERT POOLE FOUNDER, TRANSPORTATION POLICY 40.00
Officer Director
$240,000 $174 $240,174
MICHAEL ALISSI VP OPERATIONS 40.00
Officer
$230,439 $9,750 $240,189
JACQUELINE PYKE DIRECTOR OF DEVELOPMENT 40.00
Highest
$179,167 $160 $179,327
AARON STEINBERG MARKETING DIRECTOR 40.00
Highest
$179,091 $9,748 $188,839
JAMES EPSTEIN EXECUTIVE EDITOR 40.00
Highest
$173,481 $169 $173,650
CARIN MANN DIR OF DONOR COMMUNICATIONS 40.00
Highest
$157,826 $4,222 $162,048
GEORGE F OHRSTROM BOARD CHAIR 1.00
Officer Director
$0 $0 $0
THEODORE BARNETT TRUSTEE 1.00
Director
$0 $0 $0
THOMAS E BEACH TRUSTEE 1.00
Director
$0 $0 $0
BARON BOND TRUSTEE 1.00
Director
$0 $0 $0
REBECCA DUNN TRUSTEE 1.00
Director
$0 $0 $0
LINDA EDWARDS TRUSTEE 1.00
Director
$0 $0 $0
JONATHAN FARBER TRUSTEE 1.00
Director
$0 $0 $0
PETER FARRELL TRUSTEE 1.00
Director
$0 $0 $0
DEBBI GIBBS TRUSTEE 1.00
Director
$0 $0 $0
WILLIAM GOBLE TRUSTEE 1.00
Director
$0 $0 $0
THOMAS W HAZLETT TRUSTEE 1.00
Director
$0 $0 $0
BRIAN HOOKS TRUSTEE 1.00
Director
$0 $0 $0
JAMES D JAMESON TRUSTEE 1.00
Director
$0 $0 $0
MANUEL S KLAUSNER TRUSTEE 1.00
Director
$0 $0 $0
JAMES LINTOTT TRUSTEE 1.00
Director
$0 $0 $0
TRAVIS MAY TRUSTEE 1.00
Director
$0 $0 $0
STEPHEN MODZELEWSKI TRUSTEE 1.00
Director
$0 $0 $0
CHRIS J RUFER TRUSTEE 1.00
Director
$0 $0 $0
RAYMOND STATA TRUSTEE 1.00
Director
$0 $0 $0
KERRY WELSH TRUSTEE 1.00
Director
$0 $0 $0
FRED M YOUNG JR TRUSTEE 1.00
Director
$0 $0 $0
Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year Revenue Expenses Assets Net Income
2025 $22,810,664 $21,964,556 $29,097,754 $846,108
2024 $23,300,815 $19,863,540 $25,642,938 $3,437,275
2023 $15,456,947 $17,507,487 $19,398,270 $-2,050,540
2022 $15,233,016 $14,980,930 $17,225,914 $252,086
2021 $15,534,857 $13,413,869 $19,282,371 $2,120,988
2020 $16,170,727 $13,074,096 $15,187,245 $3,096,631
2019 $13,905,315 $13,467,708 $11,377,930 $437,607
2018 $12,099,789 $12,690,715 $10,773,512 $-590,926
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