Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions. Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
JUDICIAL WATCH INC
Employer identification number
52-1885088
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
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% 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.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II, or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) A person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the supported organization?
................
11g(i)
(ii)
A family member of a person described in (i) above?
......................
11g(ii)
(iii)
A 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
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 in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of monetary support
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 2
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)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
10,984,343
13,226,653
15,355,156
18,336,739
19,098,274
77,001,165
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
10,984,343
13,226,653
15,355,156
18,336,739
19,098,274
77,001,165
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
Public support. Subtract line 5 from line 4.
77,001,165
Section B. Total Support
Calendar year
(or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
7
Amounts from line 4..
10,984,343
13,226,653
15,355,156
18,336,739
19,098,274
77,001,165
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
612,819
1,154,637
1,200,123
894,430
904,503
4,766,512
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
20
32
2,221
466
2,739
11
Total support (Add lines 7 through 10).
81,770,416
12
Gross receipts from related activities, etc. (see instructions)
..................
12
496,834
13
First five years.
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.................................................
Section C. Computation of Public Support Percentage
14
Public support percentage for 2013 (line 6, column (f) divided by line 11, column (f))
.........
14
94.170 %
15
Public support percentage for 2012 Schedule A, Part II, line 14
...............
15
93.800 %
16a
33 1/3% support test—2013.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
.......................
b
33 1/3% support test—2012.
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
.....................
17a
10%-facts-and-circumstances test—2013.
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 IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization
.....................................................
b
10%-facts-and-circumstances test—2012.
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 IV 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
.....................................................
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 3
Part III
Support Schedule for Organizations Described in Section 509(a)(2) (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 year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
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.
7a
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.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
9
Amounts from line 6...
10a
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 IV.)
..
13
Total support. (Add lines 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 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public support percentage for 2013 (line 8, column (f) divided by line 13, column (f))
.........
15
16
Public support percentage from 2012 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2013 (line 10c, column (f) divided by line 13, column (f))
......
17
18
Investment income percentage from 2012 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2013.
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—2012.
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
.....
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 4
Part IV
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).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2013
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
JUDICIAL WATCH INC
Employer identification number
52-1885088
Return Reference
Explanation
FORM 990, PART VI, SECTION B, LINE 11
THE 990 IS PROVIDED TO THE BOARD OF DIRECTORS FOR REVIEW OR COMMENT BEFORE SUBMITTING TO THE PRESIDENT FOR SIGNATURE PRIOR TO FILING.
FORM 990, PART VI, SECTION B, LINE 12C
WHEN THE POLICY WAS REVISED, ALL EMPLOYEES RECEIVED THE POLICY AND WERE REQUIRED TO COMPLETELY READ IT AND COMPLETE THE CONFLICT FORM. EACH NEW EMPLOYEE RECEIVES A COPY OF THE POLICY AND IS REQUIRED TO COMPLETE AND SIGN A FORM. AS THE NEED ARISES, EMPLOYEES UPDATE THEIR CONFLICT FORM. THE BOARD REVIEWS THE CONFLICT FORMS AND DETERMINES THE APPROPRIATE ACTION SUCH AS SEGREGATING CERTAIN JOB FUNCTIONS AND DECISION MAKING THAT MAY GIVE RISE TO THE CONFLICT. ALL EMPLOYEES ARE REQUIRED ANNUALLY TO UPDATE AND SIGN A CONFLICT OF INTEREST FORM. THOSE FORMS ARE REVIEWED BY THE CHIEF OF STAFF AND THE OFFICERS.
FORM 990, PART VI, SECTION B, LINE 15
COMPENSATION IS SET BY THE MANAGEMENT TEAM AND REVIEWED AND APPROVED BY THE BOARD. INDIVIDUALS DO NOT SET THEIR OWN COMPENSATION OR PARTICIPATE IN DECISIONS REGARDING THEIR OWN COMPENSATION. ANNUALLY, TO REVIEW THE COMPENSATION OF OFFICERS, KEY EMPLOYEES AND TOP MANAGEMENT, THE ORGANIZATION PREPARES A SALARY SURVEY USING THE FORM 990S OF COMPARABLY ORGANIZED AND SITUATED 501(C)(3) ORGANIZATIONS. THIS REPORT IS DISTRIBUTED TO THE MANAGEMENT TEAM, THE BOARD AND THE CONTROLLER. THE CHIEF OF STAFF COLLECTS RELEVANT STATISTICS SUCH AS COLA, BUDGET INFORMATION AND CURRENT COMPENSATION FOR THE STAFF. THE MANAGEMENT TEAM THEN SETS AVERAGE RAISE AMOUNTS AND GUIDELINES. THESE AVERAGES/GUIDELINES ARE USED FOR ALL EMPLOYEES INCLUDING OFFICERS, TOP MANAGEMENT POSITIONS AND KEY EMPLOYEES. NO SPECIAL COMPENSATION PACKAGES/ARRANGEMENTS ARE MADE FOR TOP MANAGEMENT, KEY EMPLOYEES OR OFFICERS. THE BOARD'S DECISIONS REGARDING COMPENSATION FOR OFFICERS, TOP MANAGEMENT AND KEY EMPLOYEES ARE DOCUMENTED BY THE CORPORATE SECRETARY IN CORPORATE MINUTES.
FORM 990, PART VI, SECTION C, LINE 19
JUDICIAL WATCH IS REGISTERED IN ALL STATES AND DISTRICTS AS REQUIRED FOR FUND RAISING. DEPENDING ON THE VARIOUS REQUIREMENTS, DIFFERENT DOCUMENTS MAY BE MADE AVAILABLE TO THE PUBLIC THROUGH THOSE VARIOUS GOVERNING BODIES. THE ORGANIZATION DOES NOT DIRECTLY PROVIDE ACCESS TO ITS GOVERNING DOCUMENTS, POLICIES OR FINANCIAL STATEMENTS.
FORM 990, PART IX, LINE 11G
OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 1,253,022. MANAGEMENT AND GENERAL EXPENSES 141,690. FUNDRAISING EXPENSES 1,638,119. TOTAL EXPENSES 3,032,831.
FORM 990, PART X, LINE 5
THE FORMER CHAIRMAN, TREASURER, AND GENERAL COUNSEL OF JUDICIAL WATCH (THE EMPLOYEE), WHOSE EMPLOYMENT CEASED IN SEPTEMBER 2003, ALSO WAS THE PRESIDENT AND SOLE SHAREHOLDER OF KLAYMAN & ASSOCIATES, P.C., (K&A), A FOR-PROFIT PROFESSIONAL LAW FIRM. WHEN THE EMPLOYEE WAS EMPLOYED BY JUDICIAL WATCH, K&A AND JUDICIAL WATCH AGREED TO SHARE CERTAIN EMPLOYEES AND CERTAIN GENERAL AND ADMINISTRATIVE EXPENSES, SUCH AS RENT, TELEPHONE, POSTAGE AND DELIVERY, PHOTOCOPYING, AND SUPPLIES, ETC., IN ORDER TO REDUCE OVERHEAD EXPENSES FOR BOTH ORGANIZATIONS. THESE SHARED EXPENSES WERE ALLOCATED TO EACH ENTITY BASED ON ACTUAL INVOICES, OFFICE SPACE USAGE, AND EMPLOYEE TIME CHARGES. AS OF DECEMBER 31, 2002, THE BALANCE DUE TO JUDICIAL WATCH FOR SHARED EXPENSES WAS $78,810. THIS AMOUNT WAS TO BE PAID TO JUDICIAL WATCH BY MAY 15, 2004, TOGETHER WITH ACCRUED INTEREST AT A RATE OF 8% PER ANNUM, BUT THIS AMOUNT REMAINS UNPAID. JUDICIAL WATCH SUBSEQUENTLY IDENTIFIED ADDITIONAL SHARED EXPENSES IN THE AMOUNT OF $41,501, WHICH REPRESENT SHARED EXPENSES ACCRUED AFTER DECEMBER 31, 2002. THE BALANCE DUE TO JUDICIAL WATCH AS OF DECEMBER 31, 2013, INCLUDING INTEREST OF $177,385 CALCULATED MONTHLY USING A RATE OF 8% PER ANNUM, TOTALS $297,696. WHILE THE EMPLOYEE INITIALLY DID NOT DISPUTE THAT JUDICIAL WATCH WAS OWED $78,810, PLUS INTEREST, FOR SHARED EXPENSES, THE EMPLOYEE HAS SUBSEQUENTLY DISPUTED THAT THE ORGANIZATION IS OWED AMOUNTS FOR SHARED EXPENSES. IN ADDITION, JUDICIAL WATCH ALSO IDENTIFIED EXPENSES INCURRED BY THE EMPLOYEE DURING HIS EMPLOYMENT WITH THE ORGANIZATION FOR WHICH THE ORGANIZATION SEEKS REIMBURSEMENT. AS OF DECEMBER 31, 2013, THESE EXPENSES INCLUDING INTEREST TOTAL $87,328. THE EMPLOYEE DISPUTES THAT THESE EXPENSES ARE OWED. IN JANUARY 2006, HOWEVER, THE EMPLOYEE MADE A PARTIAL PAYMENT OF $4,573. JUDICIAL WATCH BELIEVES ALL OF THE ABOVE RECEIVABLES ARE VALID, PROPER, AND DUE TO THE ORGANIZATION WITHOUT ANY OFFSETS OR DEDUCTIONS. DUE TO LACK OF TIMELY PAYMENT AND UNCERTAINTY OF COLLECTION, JUDICIAL WATCH HAS RECORDED RESERVES AGAINST THESE RECEIVABLES IN THE FULL AMOUNTS OF $297,696 AND $87,328, RESPECTIVELY. THE ESTIMATED NET REALIZABLE AMOUNTS OF ZERO ARE REPORTED IN THE STATEMENTS OF FINANCIAL POSITION AS "DUE FROM RELATED PARTIES, NET."
FORM 990, PART XI, LINE 9:
CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -50,809.
FORM 990, PART XII, LINE 2C
THE PROCESS HAS NOT CHANGED SINCE PREVIOUS YEAR.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.