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{{#badges: Front groups|Tobaccowiki}}
{{#badges: Front groups|Tobaccowiki}}
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'''FreedomWorks''' is a non-profit organization heavily involved with the [[Tea Party movement funding| Tea Party]] movement.
Joshua Holland [http://www.alternet.org/economy/145459/public_is_ready_to_raise_taxes_on_corporations_and_the_rich,_oregon_vote_shows Public Is Ready to Raise Taxes on Corporations and the Rich, Oregon Vote Shows] Alternet/Economy. January 27, 2010
It does not disclose its corporate donors, and its leaders are drawn heavily from the leadership of the Republican party and right-wing operatives. In 2006, the ''Washington Post'' revealed that from 2001 - 2006 FreedomWorks engaged in a hidden deal with insurance brokers whereby the brokers would sell high-deductible insurance policies and tax-free medical savings plans to individuals at a group discount, and those who purchased the plans would automatically be added FreedomWorks membership list. Customers unaware of the membership arrangement, for which they were charged extra fees. Membership was a condition of getting the discounted insurance plan. The arrangement was credited with helping increase the number of "members" FreedomWorks could claim belonged to the organization. About 16,000 people "joined" the organization in this manner, causing $638,040 to flow into FreedomWorks' coffers over 5 1/2 years in the form of monthly checks for "association fees" collected by the Medical Savings Insurance Company, that were forwarded to FreedomWorks.
Jonathan Weisman [http://www.washingtonpost.com/wp-dyn/content/article/2006/07/22/AR2006072200683.html With Insurance Policy Comes Membership], ''Washington Post,'' July 23, 2006, Page A05
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'''FreedomWorks''' is a non-profit organization heavily involved with the [[Tea Party movement funding| Tea Party]] movement.
Joshua Holland [http://www.alternet.org/economy/145459/public_is_ready_to_raise_taxes_on_corporations_and_the_rich,_oregon_vote_shows Public Is Ready to Raise Taxes on Corporations and the Rich, Oregon Vote Shows] Alternet/Economy. January 27, 2010
It does not disclose its corporate donors, and its leaders are drawn heavily from the leadership of the Republican party and right-wing operatives. In 2006, the ''Washington Post'' revealed that from 2001 - 2006 FreedomWorks engaged in a hidden deal with insurance brokers whereby the brokers would sell high-deductible insurance policies and tax-free medical savings plans to individuals at a group discount, and those who purchased the plans would automatically be added FreedomWorks membership list. Customers unaware of the membership arrangement, for which they were charged extra fees. Membership was a condition of getting the discounted insurance plan. The arrangement was credited with helping increase the number of "members" FreedomWorks could claim belonged to the organization. About 16,000 people "joined" the organization in this manner, causing $638,040 to flow into FreedomWorks'
s
coffers over 5 1/2 years in the form of monthly checks for "association fees" collected by the Medical Savings Insurance Company, that were forwarded to FreedomWorks.
Jonathan Weisman [http://www.washingtonpost.com/wp-dyn/content/article/2006/07/22/AR2006072200683.html With Insurance Policy Comes Membership], ''Washington Post,'' July 23, 2006, Page A05
==Founding==
==Founding==
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===Created from merger of CSE and Empower America in 2004===
===Created from merger of CSE and Empower America in 2004===
In July 2004, FreedomWorks was created from the merger of [[Citizens for a Sound Economy]] (CSE) and [[Empower America]].
[http://web.archive.org/web/20040725031033/http://www.freedomworks.org/release.php ""Citizens for a Sound Economy (CSE) and Empower America Merge to Form FreedomWorks"], Media release, undated, archived from July 25, 2004.
In July 2004, FreedomWorks was created from the merger of [[Citizens for a Sound Economy]] (CSE) and [[Empower America]].
[http://web.archive.org/web/20040725031033/http://www.freedomworks.org/release.php ""Citizens for a Sound Economy (CSE) and Empower America Merge to Form FreedomWorks"], Media release, undated, archived from July 25, 2004.
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(Although the FreedomWorks' website stated until late 2007 that it was founded in 1984
[http://web.archive.org/web/20071109092431/http://www.freedomworks.org/know/index.php "About FreedomWorks"], FreedomWorks website, archived from November 9, 2007.
, it was CSE that was founded at that time.)
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(Although the FreedomWorks'
s
website stated until late 2007 that it was founded in 1984
[http://web.archive.org/web/20071109092431/http://www.freedomworks.org/know/index.php "About FreedomWorks"], FreedomWorks website, archived from November 9, 2007.
, it was CSE that was founded at that time.)
===Initial press release===
===Initial press release===
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Of Kibbe's memo, Armey says "One of the most fascinating art forms in Washington is that of the perpetrator as victim. Matt Kibbe seems to have maintained it with this memorandum."
David Corn, "http://www.motherjones.com/politics/2012/12/dick-armey-freedomworks-hostile-takeover-memo FreedomWorks Feud: War Inside Tea Party Group Gets Nastier"] ''Mother Jones'', December 24, 2012
Of Kibbe's memo, Armey says "One of the most fascinating art forms in Washington is that of the perpetrator as victim. Matt Kibbe seems to have maintained it with this memorandum."
David Corn, "http://www.motherjones.com/politics/2012/12/dick-armey-freedomworks-hostile-takeover-memo FreedomWorks Feud: War Inside Tea Party Group Gets Nastier"] ''Mother Jones'', December 24, 2012
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Six days after walking in with an anonymous armed man to force key members out of FreedomWorks
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, Dick Armey agreed to an $8 million buyout. It was leveraged by board director Richard Stephenson, and all five targeted employees were back with FreedomWorks within that week. Stephenson is a 73-year-old millionaire residing in Illinois, founder of the for-profit Cancer Treatment Centers of America, and a longtime player in conservative activism.
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Six days after walking in with an anonymous armed man to force key members out of FreedomWorks, Dick Armey agreed to an $8 million buyout. It was leveraged by board director Richard Stephenson, and all five targeted employees were back with FreedomWorks within that week. Stephenson is a 73-year-old millionaire residing in Illinois, founder of the for-profit Cancer Treatment Centers of America, and a longtime player in conservative activism.
''The Washington Post'' notes the episode illustrates the growing role of wealthy donors in swaying the direction of FreedomWorks and other political groups, which increasingly rely on unlimited contributions from corporations and financiers for their financial livelihood. Such gifts are often sent through corporate shells or nonprofit groups that do not have to disclose their donors, making it impossible for the public to know who is funding them.
''The Washington Post'' notes the episode illustrates the growing role of wealthy donors in swaying the direction of FreedomWorks and other political groups, which increasingly rely on unlimited contributions from corporations and financiers for their financial livelihood. Such gifts are often sent through corporate shells or nonprofit groups that do not have to disclose their donors, making it impossible for the public to know who is funding them.
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==Tobacco==
==Tobacco==
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According to the U.K. ''Guardian'', FreedomWorks has received funding from the tobacco conglomerate [[Philip Morris]]. The Guardian also reports that local branches of FreedomWorks' sister organization [[Americans for Prosperity]] have also received tobacco money and opposes smoke-free workplace laws and cigarette taxes.
Ed Pilkington [http://www.guardian.co.uk/world/2009/sep/18/republicans-internet-barack-obama Republicans steal Barack Obama's Internet Campaigning Tricks] UK ''Guardian''. September 18, 2009
Freedomworks also opposes tobacco taxes.
Freedomworks [http://www.freedomworks.org/press-releases/more-government-expansion-in-kansas-in-the-form-of More government expansionin Kansas in the form of tobacco taxes] Press release. January 4, 2010
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According to the U.K. ''Guardian'', FreedomWorks has received funding from the tobacco conglomerate [[Philip Morris]]. The Guardian also reports that local branches of FreedomWorks'
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sister organization [[Americans for Prosperity]] have also received tobacco money and opposes smoke-free workplace laws and cigarette taxes.
Ed Pilkington [http://www.guardian.co.uk/world/2009/sep/18/republicans-internet-barack-obama Republicans steal Barack Obama's Internet Campaigning Tricks] UK ''Guardian''. September 18, 2009
Freedomworks also opposes tobacco taxes.
Freedomworks [http://www.freedomworks.org/press-releases/more-government-expansion-in-kansas-in-the-form-of More government expansionin Kansas in the form of tobacco taxes] Press release. January 4, 2010
==Activities==
==Activities==
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=====Social Security=====
=====Social Security=====
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In 2005, FreedomWorks, "a group allied with Bush, sent its members 'Easter recess action kits' that included talking points and sample questions for town-hall meetings," all in favor of [[George W. Bush]]'s push to privatize [[Social Security]].
Ron Hutcheson, "Bush looking for new ways to pitch Social Security plan," Knight Ridder Washington Bureau, July 1, 2005.
"By [FreedomWorks'] own count, the organization supplied about a third of the audience at a recent [pro-privatization] event in Tampa, Fla," reported the ''Saint Paul Pioneer Press'' in March 2005. "At least five of its members have joined Bush on stage."
Ron Hutcheson, "The Social Security Road Show: Bush and His Aides Hit the Streets with a Plan to Fix America's Retirement Ills," ''Saint Paul Pioneer Press'', March 20, 2005.
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In 2005, FreedomWorks, "a group allied with Bush, sent its members 'Easter recess action kits' that included talking points and sample questions for town-hall meetings," all in favor of [[George W. Bush]]'s push to privatize [[Social Security]].
Ron Hutcheson, "Bush looking for new ways to pitch Social Security plan," Knight Ridder Washington Bureau, July 1, 2005.
"By [FreedomWorks'
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] own count, the organization supplied about a third of the audience at a recent [pro-privatization] event in Tampa, Fla," reported the ''Saint Paul Pioneer Press'' in March 2005. "At least five of its members have joined Bush on stage."
Ron Hutcheson, "The Social Security Road Show: Bush and His Aides Hit the Streets with a Plan to Fix America's Retirement Ills," ''Saint Paul Pioneer Press'', March 20, 2005.
In December 2004, FreedomWorks employee [[Sandra Jacques]] was introduced at a White House economic conference as a "single mom" from Iowa who supported the [[George W. Bush|Bush administration]]'s [[Social Security privatization]] plan. According to White House budget director, Jacques was was an example of how Bush promotes his agenda with testimonials from "regular folks." As the ''New York Times'' pointed out, however, "Ms. Jaques is not any random single mother. She is the Iowa state director of a [[conservative]] advocacy group."
Edmund L. ANdrews, [http://www.nytimes.com/2004/12/17/politics/17mom.html "Clamor Grows in the Privatization Debate"], ''New York Times'', December 17, 2004.
In December 2004, FreedomWorks employee [[Sandra Jacques]] was introduced at a White House economic conference as a "single mom" from Iowa who supported the [[George W. Bush|Bush administration]]'s [[Social Security privatization]] plan. According to White House budget director, Jacques was was an example of how Bush promotes his agenda with testimonials from "regular folks." As the ''New York Times'' pointed out, however, "Ms. Jaques is not any random single mother. She is the Iowa state director of a [[conservative]] advocacy group."
Edmund L. ANdrews, [http://www.nytimes.com/2004/12/17/politics/17mom.html "Clamor Grows in the Privatization Debate"], ''New York Times'', December 17, 2004.
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"Speaking as the co-chairman of FreedomWorks" on CNBC in December 2004, Armey "spoke glowingly of 'Rx Outreach,' a national mail order program for low-income people that had just been launched by [[Express Scripts]] Inc., a pharmacy benefit management firm based in Maryland Heights, Mo." At the time, FreedomWorks "had been working with Express Scripts' public relations firm, and a week later issued a news release praising Rx Outreach. Now, Express Scripts says it plans to donate money to Armey's group, though it won't say how much or when."
Deirdre Shesgreen, [http://www.spinwatch.org.uk/-news-by-category-mainmenu-9/157-us-politics/763-nonprofit-group-skirts-lobbying-laws-critics-charge "Nonprofit group skirts lobbying laws, critics charge"], ''St Louis Post-Dispatch'', March 5, 2005.
"Speaking as the co-chairman of FreedomWorks" on CNBC in December 2004, Armey "spoke glowingly of 'Rx Outreach,' a national mail order program for low-income people that had just been launched by [[Express Scripts]] Inc., a pharmacy benefit management firm based in Maryland Heights, Mo." At the time, FreedomWorks "had been working with Express Scripts' public relations firm, and a week later issued a news release praising Rx Outreach. Now, Express Scripts says it plans to donate money to Armey's group, though it won't say how much or when."
Deirdre Shesgreen, [http://www.spinwatch.org.uk/-news-by-category-mainmenu-9/157-us-politics/763-nonprofit-group-skirts-lobbying-laws-critics-charge "Nonprofit group skirts lobbying laws, critics charge"], ''St Louis Post-Dispatch'', March 5, 2005.
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"Critics say the arrangement could call into question FreedomWorks' tax-exempt status because it appears that the group was a 'mouthpiece' for hire," wrote the ''St. Louis Post-Dispatch'', which noted that assertion was "sharply disputed by FreedomWorks." Bill Allison of the [[Center for Public Integrity]] said, "It's rare to see someone pushing a company this directly. It does look like it's more of a commercial for this company than a discussion of policy." Law professor Frances Hill noted that "corporate contributions to nonprofits are not supposed to benefit the donor." Hill added, "What it begins to look like is that the organization is operating for the private benefit of the company."
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"Critics say the arrangement could call into question FreedomWorks'
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tax-exempt status because it appears that the group was a 'mouthpiece' for hire," wrote the ''St. Louis Post-Dispatch'', which noted that assertion was "sharply disputed by FreedomWorks." Bill Allison of the [[Center for Public Integrity]] said, "It's rare to see someone pushing a company this directly. It does look like it's more of a commercial for this company than a discussion of policy." Law professor Frances Hill noted that "corporate contributions to nonprofits are not supposed to benefit the donor." Hill added, "What it begins to look like is that the organization is operating for the private benefit of the company."
====Inconsistency/hypocrisy====
====Inconsistency/hypocrisy====
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===990s===
===990s===
====2008====
====2008====
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FreedomWorks' 2008 financial report to the [[Internal Revenue Service]] listed $4,346,782 in total revenue (including $42,003 from its "affinity program" and $16,828 for "list rental") -- nearly twice the $2,235,030 reported the previous year. The group reported $4,008,312 in total expenses for 2008, compared to $2,070,124 the previous year. In 2008, FreedomWorks reported paying 32 employees.
"[http://www.guidestar.org/FinDocuments/2008/521/349/2008-521349353-05293e09-9O.pdf FreedomWorks 2008 IRS form 990]," via GuideStar.org, accessed September 2009.
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FreedomWorks'
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2008 financial report to the [[Internal Revenue Service]] listed $4,346,782 in total revenue (including $42,003 from its "affinity program" and $16,828 for "list rental") -- nearly twice the $2,235,030 reported the previous year. The group reported $4,008,312 in total expenses for 2008, compared to $2,070,124 the previous year. In 2008, FreedomWorks reported paying 32 employees.
"[http://www.guidestar.org/FinDocuments/2008/521/349/2008-521349353-05293e09-9O.pdf FreedomWorks 2008 IRS form 990]," via GuideStar.org, accessed September 2009.
=====Outside contractors=====
=====Outside contractors=====
In 2008, FreedomWorks reported its highest compensated outside contractors as [[George Advertising]] of Oregon, paid $234,560 for "advertising production"; the controversial Republican lobby and PR firm [[DCI Group]] of Arizona, paid $141,178, also for "advertising production"; and [[Morgan, Meredith & Associates]] of Virginia, paid $133,674 for "printing & mailing of direct mail servi[ces]." FreedomWorks also paid [[Clearword Communication Group]] $44,523 in 2008, for "fundraising counsel." In 2008, FreedomWorks reported having financial relationships with two "interested persons": paying Board member Dick Armey $250,000 for "consulting," and paying Matt Kibbe's wife [[Terry Kibbe]] $49,500 for "management."
In 2008, FreedomWorks reported its highest compensated outside contractors as [[George Advertising]] of Oregon, paid $234,560 for "advertising production"; the controversial Republican lobby and PR firm [[DCI Group]] of Arizona, paid $141,178, also for "advertising production"; and [[Morgan, Meredith & Associates]] of Virginia, paid $133,674 for "printing & mailing of direct mail servi[ces]." FreedomWorks also paid [[Clearword Communication Group]] $44,523 in 2008, for "fundraising counsel." In 2008, FreedomWorks reported having financial relationships with two "interested persons": paying Board member Dick Armey $250,000 for "consulting," and paying Matt Kibbe's wife [[Terry Kibbe]] $49,500 for "management."
=====Salaries=====
=====Salaries=====
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Dick Armey's FreedomWorks 2008 salary was reported as $250,000 for 18 hours of work per week, plus $300,000 from related organizations. FreedomWorks' 2008 financial report also lists [[Jaclynne Brown]] as Vice President of External Affairs, with a salary of $56,723 for 17 hours of work per week, plus $73,735 from related organizations and $15,785 in other compensation; and [[Chris Kinnan]] as Vice President of Interactive Technology, with a salary of $59,582 for 17 hours of work per week, plus $77,451 from related organizations and $8,124 in other compensation.
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Dick Armey's FreedomWorks 2008 salary was reported as $250,000 for 18 hours of work per week, plus $300,000 from related organizations. FreedomWorks'
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2008 financial report also lists [[Jaclynne Brown]] as Vice President of External Affairs, with a salary of $56,723 for 17 hours of work per week, plus $73,735 from related organizations and $15,785 in other compensation; and [[Chris Kinnan]] as Vice President of Interactive Technology, with a salary of $59,582 for 17 hours of work per week, plus $77,451 from related organizations and $8,124 in other compensation.
=====Related organizations, tax-exempt and taxable=====
=====Related organizations, tax-exempt and taxable=====
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==FreedomWorks Personnel ==
==FreedomWorks Personnel ==
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FreedomWorks' President and CEO is [[Matt Kibbe]].
[http://www.freedomworks.org/about/staff "About FreedomWorks: Staff"], FreedomWorks website, accessed September 2009.
FreedomWorks was chaired by former U.S. House Majority Leader, Republican [[Dick Armey]] until his resignation on November 30, 2012.
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FreedomWorks'
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President and CEO is [[Matt Kibbe]].
[http://www.freedomworks.org/about/staff "About FreedomWorks: Staff"], FreedomWorks website, accessed September 2009.
FreedomWorks was chaired by former U.S. House Majority Leader, Republican [[Dick Armey]] until his resignation on November 30, 2012.
(The new group was initially co-chaired by [[Richard K. Armey]], [[C. Boyden Gray]] and [[Jack Kemp]]. Former chair at Empower America [[William Bennett]] was a senior fellow focusing on school choice.)
(The new group was initially co-chaired by [[Richard K. Armey]], [[C. Boyden Gray]] and [[Jack Kemp]]. Former chair at Empower America [[William Bennett]] was a senior fellow focusing on school choice.)