2023-02-13T08:14:31-06:00 2022-03-31 366055558 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2021-04-01 131621786 AMERICAN ASSOCIATION OF ADVERTISING AGENCIES AMER 2128500770 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 JAMES O'DONNELL EVP FINANCE & TREASURER 2128500770 2023-02-13 1 JAMES ODONNELL XXX-XX-XXXX SCOTT THOMPSETT P00741490 2125990100 3 AAL1 IAL1 2021 2023-03-07 01:45:13Z 4A'S MARLA KAPLOWITZ PRESCEO 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 23646805 0 X WWW.AAAA.ORG X 1917 NY WE EMPOWER MEMBERS TO DRIVE COMMERCE, SPARK CONNECTIONS, & SHAPE CULTURE THROUGH CREATIVITY. 28 27 74 0 0 0 0 0 12315352 13405793 991366 2080183 198646 839936 13505364 16325912 34575 43000 0 0 8599579 10293156 0 0 0 4827546 5519185 13461700 15855341 43664 470571 16913177 18840338 9435216 11591890 7477961 7248448 X THE 4A'S WAS ESTABLISHED IN 1917 TO PROMOTE, ADVANCE, AND DEFEND THE INTERESTS OF OUR MEMBER AGENCIES, EMPLOYEES AND THE ADVERTISING AND MARKETING INDUSTRIES OVERALL. TODAY THE ORGANIZATION SERVES MORE THAN 600 MEMBER AGENCIES ACROSS 1,200 OFFICES (CONTINUED ON SCHEDULE O). 0 0 SEE SCHEDULE O SEE SCHEDULE O SEE SCHEDULE O AAAA PROVIDES COUNTLESS OTHER SERVICES, INCLUDING MANAGEMENT STUDIES, TO APPROXIMATELY 600 MEMBER COMPANIES. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 14 0 1 74 1 0 0 0 0 0 0 0 0 X 28 27 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 X JAMES O'DONNELL 2128500713 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 X MARLA KAPLOWITZ PRESIDENT & CEO 40.00 5.00 X X 958282 0 26621 CHRISTINE FRUECHTE SECRETARY/TREASURER 1.00 0.00 X X 0 0 0 BARRY WACKSMAN CHAIR 1.00 0.00 X X 0 0 0 ABBEY KLAASSEN VICE CHAIR 1.00 0.00 X X 0 0 0 SHARON NAPIER VICE CHAIR 1.00 0.00 X X 0 0 0 MARIE-CLAIRE BARKER DIRECTOR-AT-LARGE (THRU 01/22) 1.00 0.00 X 0 0 0 LAURA MANESS DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 KATHY RING DIRECTOR-AT-LARGE (THRU 05/21) 1.00 0.00 X 0 0 0 ROB SCHWARTZ DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 STEVE WILLIAMS DIRECTOR-AT-LARGE | MLC CHAIR 1.00 0.00 X 0 0 0 MARK BACHMANN CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 KAREN SEAMEN CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 DAISY EXPOSITO EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 ANDREW GRAFF EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 BRAD BENNETT SOUTHERN REGION DR (THRU 05/21) 1.00 0.00 X 0 0 0 BOB MORRISON SOUTHERN REGION DR (THRU 05/21) 1.00 0.00 X 0 0 0 RICHARD WARD SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DAVID ANGELO WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 JOHN GALLEGOS WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 ERIC JOHNSON WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DEVIKA BULCHANDANI DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 CHRIS FOSTER DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 JASON GAIKOWSKI DIRECTOR-AT-LARGE | CX COUNCIL 1.00 0.00 X 0 0 0 JEFF KING CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 ANGELA STEELE EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 AMANI DUNCAN DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 VITA HARRIS DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 KATE MACNEVIN DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 MEGAN PAGLIUCA DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 HELEN LIN DIRECTOR-AT-LARGE (AS OF 05/21) 1.00 0.00 X 0 0 0 KYLE ALLEN DIRECTOR-AT-LARGE (AS OF 05/21) 1.00 0.00 X 0 0 0 MICHELLE HEADLEY DIRECTOR-AT-LARGE (AS OF 05/21) 1.00 0.00 X 0 0 0 ADAM COTUMACCIO COO 45.00 0.00 X 438066 0 28063 ASHWINI KARANDIKAR EVP (AS OF 04/21) 45.00 0.00 X 425080 0 2250 MOLLIE ROSEN EVP ARM 45.00 0.00 X 391303 0 19613 ALISON PEPPER EVP GOVERNMENT RELATIONS 45.00 0.00 X 361625 0 9402 GREGORY WALKER SVP 45.00 0.00 X 332428 0 7464 BRIAN NIENHAUS SVP MED, CENTRAL REGION 45.00 0.00 X 320987 0 11863 JAMES O'DONNELL EVP FINANCE/TREASURER 45.00 5.00 X 281303 0 21493 SIMON FENWICK EVP DIVERSITY 20.00 20.00 X 261375 0 8223 MARK S PIAZZA THRU 0222 SVP OF NEW BUSINESS DEVELOPMENT 45.00 0.00 X 211458 0 11068 CHARLES FOXGROVER CHIEF DIGITAL OFFICER 45.00 0.00 X 162932 0 14589 DONNA TOBIN THRU 0421 EVP - MAR COM/EVENTS & PARTNERSHIPS 45.00 0.00 X 24006 0 58 JUAN C SUAREZ SVP, MEMBER ENGAGEMENT & DEV., WEST 45.00 0.00 X 253844 0 18715 MATT KASINDORF SVP 45.00 0.00 X 238967 0 14784 HARLEY GRIFFITHS SVP 45.00 0.00 X 217993 0 13265 SALVATORE CONTE VP 45.00 0.00 X 201657 0 15042 MARK CAMPANELLA SVP, ENTERPRISE TECH & DEVELOPMENT 45.00 0.00 X 230091 0 0 5311397 0 222513 29 0 1 0 AMERICAN EXPRESS PO BOX 1270 NEWAWK NJ 071011270 CREDIT CARD 300650 ELEMENT ELEVEN 588 E HWY CC SUITE 1 NIXA MO 65714 DEVELOPER 235937 VENABLE LLP 1290 AVENUE OF AMERICAS 20TH FL NEW YORK NY 10104 LEGAL 227207 NIMBLE USER PO BOX 122145 DALLAS TX 753122145 SOFTWARE PROVIDER 203905 THE SWAY GROUP INC 434 EAST 52ND STREET NEW YORK NY 10022 PR FIRM 192177 8 MEMBERSHIP DUES 900099 11631230 11631230 CONFERENCES & TRAINING 900099 1281222 1281222 PUBLIC. & TAPE SALES 900099 278090 278090 WEBINAR FEES 900099 98901 98901 COUNCILS REVENUE 900099 54750 54750 61600 61600 13405793 812529 812529 8588547 7320893 1267654 1267654 1267654 ADMIN SVCS (RELATED PARTY) 900099 696467 696467 AWARD ENTRY FEES 900099 87575 87575 REV. SHARE 900099 41971 0 41971 13923 13923 839936 16325912 14203758 0 2122154 43000 4324463 4866827 109724 501162 490980 271694 88878 873698 75000 326022 46083 1304237 53574 467673 266317 95098 WRITE-OFF OF LEASEHOLD 882294 PUBLIC & SUBSCRIP. 470525 SPECIAL PROJECTS 226675 DUES & FEES 32078 39339 15855341 3755084 3960874 583233 740768 957971 2077959 0 183956 3081119 2530925 1204003 550194 9693597 10604177 719289 722410 16913177 18840338 2236055 2765723 2967568 4042191 4231593 4783976 9435216 11591890 X 7477961 7248448 7477961 7248448 16913177 18840338 X 470571 -721303 16566 4653 X 0 1 X 1 0 1 1 0 479802 254 479548 1063882 1023315 40567 1537435 1507356 30079 550194 DEFERRED COMPENSATION AGREEMENTS 1565035 DEFERRED RENT 1309078 OTHER LIABILITIES 1909863 4783976 X 15731094 -721303 126485 -594818 16325912 0 16325912 15965260 109919 109919 15855341 0 15855341 PART X, LINE 2: FIN 48 FOOTNOTE THE AAAA FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE FASB ESTABLISHED CRITERION THAT AN INDIVIDUAL TAX POSITION MUST MEET FOR SOME OR ALL OF THE BENEFITS OF THAT POSITION TO BE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS. THIS STANDARD REQUIRES THE ASSOCIATION TO DETERMINE WHETHER A TAX POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPLICABLE TAXING AUTHORITY, INCLUDING RESOLUTION OF ANY RELATED APPEALS OR LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE AAAA IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(6) OF THE U.S. INTERNAL REVENUE CODE (THE "CODE"), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. THE AAAA HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE AAAA HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND, TO REVIEW OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. 1 THE ADVERTISING COUNCIL INC 815 SECOND AVENUE NEW YORK NY 10017 130417693 501(C)(3) 25000 0 FY22 CONTRIBUTION TO THE AD COUNCIL THE 3 MOVEMENT 952 SCHOOL STREET NAPA CA 94559 473470840 18000 0 SPONSORSHIP PACKAGES: ANNUAL CONFERENCE SPONSORSHIP 1 1 PROCESS FOR MONITORING THE USE OF GRANT FUNDS IN THE U.S. 4A'S PERIODICALLY SPONSORS ORGANIZATIONS SO LONG AS MANAGEMENT DETERMINES THAT THOSE ORGANIZATIONS HAVE GOALS AND OBJECTIVES THAT ALIGN WITH 4A'S TAX-EXEMPT MISSION. AAAA ROUTINELY CONDUCTS BUSINESS WITH THESE ORGANIZATIONS AND RECEIVES ASSURANCES THAT GIFTED FUNDS ARE USED FOR THEIR INTENDED PURPOSES. X X 1 1 X X X X 0 0 0 MARLA KAPLOWITZ PRESIDENT & CEO 643267 0 310000 0 5015 0 8700 0 17921 0 984903 0 0 0 ADAM COTUMACCIO COO 335051 0 103000 0 15 0 8700 0 19363 0 466129 0 0 0 ASHWINI KARANDIKAR EVP (AS OF 04/21) 335065 0 90000 0 15 0 2250 0 0 0 427330 0 0 0 MOLLIE ROSEN EVP ARM 305288 0 86000 0 15 0 8700 0 10913 0 410916 0 0 0 ALISON PEPPER EVP GOVERNMENT RELATIONS 281625 0 80000 0 0 0 8700 0 702 0 371027 0 0 0 GREGORY WALKER SVP 262428 0 70000 0 0 0 7134 0 330 0 339892 0 0 0 BRIAN NIENHAUS SVP MED, CENTRAL REGION 255987 0 65000 0 0 0 0 0 11863 0 332850 0 0 0 JAMES O'DONNELL EVP FINANCE/TREASURER 234288 0 47000 0 15 0 7390 0 14103 0 302796 0 0 0 JUAN C SUAREZ SVP, MEMBER ENGAGEMENT & DEV., WEST 223844 0 30000 0 0 0 4823 0 13892 0 272559 0 0 0 SIMON FENWICK EVP DIVERSITY 261375 0 0 0 0 0 3869 0 4354 0 269598 0 0 0 MATT KASINDORF SVP 220967 0 18000 0 0 0 6175 0 8609 0 253751 0 0 0 HARLEY GRIFFITHS SVP 199993 0 18000 0 0 0 5604 0 7661 0 231258 0 0 0 MARK CAMPANELLA SVP, ENTERPRISE TECH & DEVELOPMENT 199991 0 30000 0 100 0 0 0 0 0 230091 0 0 0 MARK S PIAZZA THRU 0222 SVP OF NEW BUSINESS DEVELOPMENT 211443 0 0 0 15 0 0 0 11068 0 222526 0 0 0 SALVATORE CONTE VP 191657 0 10000 0 0 0 5222 0 9820 0 216699 0 0 0 CHARLES FOXGROVER CHIEF DIGITAL OFFICER 144932 0 18000 0 0 0 4649 0 9940 0 177521 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS THE FOLLOWING INDIVIDUALS RECEIVED TAX GROSS-UP PAYMENTS IN 2021. THESE AMOUNTS ARE INCLUDED IN THEIR TAXABLE WAGES: MARLA KAPLOWITZ $5,015 JAMES O'DONNELL $15 MOLLIE ROSEN $15 ADAM COTUMACCIO $15 MARK S. PIAZZA $15 ASHWINI KARANDIKAR $15 MARK CAMPANELLA $100 HEALTH OR SOCIAL CLUB DUES IN FISCAL YEAR 2022, MARLA KAPLOWITZ RECEIVED A REIMBURSEMENT FOR HEALTH CLUB DUES THAT WAS TAXABLE TO HER AND INCLUDED IN HER TAXABLE WAGES. FORM 990, PART I, LINE 1 (CONTINUED) AND SHAPE CULTURE THROUGH INFINITE CREATIVITY. WE ARE DEDICATED TO, AND VESTED IN, OUR MEMBERS' SUCCESS, JUST AS THEY ARE DEDICATED TO HELPING BRANDS CREATE, DISTRIBUTE, AND MEASURE EFFECTIVE AND INSIGHTFUL ADVERTISING AND MARKETING. AND WE CHAMPION THE INFINITE POWER OF CREATIVITY AND VALUE AGENCIES BRING IN DRIVING BUSINESS GROWTH AND POWERFUL CULTURAL CHANGE. THE 4A'S DRIVES BUSINESS. FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION (CONTINUED) WHICH HELP DIRECT MORE THAN 85% OF TOTAL U.S. ADVERTISING SPEND. THE 4A'S IS COMMITTED TO PROTECTING THE BEST INTERESTS OF ITS MEMBERS, THEIR EMPLOYEES AND THE INDUSTRY AT LARGE. ITS BENEFITS DIVISION INSURES MORE THAN 164,000 AGENCY PROFESSIONALS, AND THE DC OFFICE ADVOCATES FOR POLICIES THAT BEST SUPPORT A THRIVING ADVERTISING INDUSTRY. WITH ITS BEST IN CLASS LEARNING AND CAREER DEVELOPMENT PROGRAMS, THE 4A'S AND ITS FOUNDATION FUEL A ROBUST DIVERSITY PIPELINE OF TALENT FOR ITS MEMBERS AND THE MARKETING AND MEDIA INDUSTRY, FOSTERING THE NEXT GENERATION OF LEADERS. FORM 990, PART III, LINE 4A (CONTINUED): WITH PARTICIPATING 4A'S MEMBERS, 4A'S OPERATES VARIOUS COUNCILS COMMITTED TO PROVIDING LEADERSHIP AND INITIATIVES THAT FOSTER THE EFFECTIVENESS OF ITS MEMBERS AND THE OVERALL ADVERTISING INDUSTRY IN VARIOUS GEOGRAPHICAL AREAS NATIONALLY. THESE OBJECTIVES ARE ACHIEVED THROUGH THE PROVISION OF PROGRAMS IN: MARKETING, COMMUNICATIONS, TRAINING AND DEVELOPMENT, EXECUTIVE LEADERSHIP ENRICHMENT, CREATIVE THOUGHT-LEADERSHIP AND EXECUTIVE NETWORKING OPPORTUNITIES. THE WORKPLACE ENLIGHTENMENT CERTIFICATION PROGRAM IS DESIGNED TO MOVE AGENCIES TOWARD THE HIGHEST STANDARDS OF EQUITY AND INCLUSION. IMPACTING ALL LEVELS OF THE ORGANIZATION; FROM C-SUITE TO ENTRY-LEVEL, IT HELPS ADDRESS A RANGE OF NEEDS FROM BUILDING A DIVERSE TALENT PIPELINE TO ENSURING EQUITABLE PRACTICES. THE PROGRAM FOCUSES ON INCLUSION ACROSS RACE, GENDER, AGE, FAITH, LGTBQIA+, AND PEOPLE WITH DISABILITIES. FORM 990, PART III, LINE 4B (CONTINUED): EDUCATION: 4A'S PROVIDES A LIBRARY WITH UNLIMITED INFORMATION PERTAINING TO PRODUCTS AND COMPANIES; AIDS IN SETTING INDUSTRY STANDARDS; PUTS OUT MANY EDUCATIONAL PUBLICATIONS; AND CONDUCTS TRAINING, SEMINARS, AND MEETINGS. ACCESS CONSUMER INSIGHTS AND MEDIA HABITS, TRENDS IN MEDIA, INTERNATIONAL CONTENT, 10 INDUSTRY VERTICALS, AND FIVE RESEARCH DATABASES. FORM 990, PART III, LINE 4C (CONTINUED): THE 4A'S WASHINGTON, D.C. OFFICE ADVOCATES ON BEHALF OF THE ADVERTISING AGENCY COMMUNITY ON ALL ISSUES THAT COULD AFFECT AGENCIES, FROM NEW TAXES ON DIGITAL ADVERTISING TO PRIVACY LAW CHANGES THAT COULD HINDER AGENCIES ABILITY TO FIND THE BEST AUDIENCES FOR THEIR CLIENTS. FORM 990, PART V, LINE 2A NUMBER OF EMPLOYEES THE ASSOCIATION REPORTED 74 EMPLOYEES ON ITS 2021 FORM W-3; HOWEVER, THE ASSOCIATION NOTES THAT SOME OF THOSE EMPLOYEES PROVIDED SERVICES EXCLUSIVELY TO RELATED ORGANIZATIONS, AAAA BENEFITS, INC. AND TO AN UNRELATED PARTY, THE HEALTH CARE COALITION. THE COSTS OF THOSE SERVICES WERE REIMBURSED IN FULL BY THE DESIGNATED ORGANIZATIONS. PLEASE REFER TO SCHEDULE R FOR MORE DETAIL. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES, INC. IS A TRADE ASSOCIATION WHOSE MEMBERS REPRESENT A WIDE RANGE OF DISCIPLINES WITHIN THE MARKETING COMMUNICATIONS LANDSCAPE. MEMBERS PARTICIPATE IN SHAPING THEIR ORGANIZATION AND ENTIRE INDUSTRY THROUGH THEIR DEDICATED WORK ON COMMITTEES, REGIONS, COUNCILS, AND FORUMS AS WELL AS SERVING ON THE NATIONAL BOARD. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OR STOCKHOLDERS WHO MAY ELECT THE CHAIR OF THE BOARD AND THE SECRETARY-TREASURER SHALL BE ELECTED AT AN ANNUAL MEETING OF THE MEMBERS OF THE ASSOCIATION TO SERVE FOR TWO YEARS. THE VICE-CHAIR SHALL BE ELECTED AT AN ANNUAL MEETING IN YEARS NOT HAVING AN ELECTION OF A CHAIR AND SHALL SERVE FOR ONE YEAR. THE DIRECTORS-AT-LARGE SHALL BE ELECTED TO SERVE FOR A PERIOD OF THREE YEARS. REGIONAL DIRECTORS, NOMINATED BY THE RESPECTIVE REGIONS, SHALL BE ELECTED TO SERVE FOR ONE YEAR. THE DIRECTORS-AT-LARGE SHALL BE DIVIDED INTO THREE CLASSES TO CONSIST OF FOUR IN EACH CLASS. ONE CLASS SHALL BE ELECTED ANNUALLY. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS SUBJECT TO APPROVAL ALL ELECTIONS AND RESOLUTIONS, UNLESS OTHERWISE SPECIFICALLY PROVIDED FOR, SHALL REQUIRE A MAJORITY VOTE OF THE MEMBERS IN ATTENDANCE. TWENTY PERCENT OF THE MEMBERS SHALL CONSTITUTE A QUORUM AT ANY ANNUAL OR SPECIAL MEETING OF THE ASSOCIATION FOR THE TRANSACTION OF BUSINESS. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM, GRANT THORNTON, LLP, IN CONJUNCTION WITH THE ASSOCIATION'S FINANCIAL DEPARTMENT. ONCE COMPLETED, A DRAFT OF THE 2021 FORM 990 IS SENT TO THE MEMBERS OF THE BOARD OF DIRECTORS PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING AND ENFORCEMENT ALL BOARD MEMBERS, OFFICERS AND EMPLOYEES ARE REQUIRED ANNUALLY TO DISCLOSE ANY CONFLICTS OF INTEREST THAT MAY ARISE BY VIRTUE OF THEIR EMPLOYMENT OR BOARD SERVICE WITH THE ASSOCIATION. EACH INDIVIDUAL IS REQUIRED TO SIGN THE CODE OF CONDUCT POLICY ANNUALLY (WHICH ATTESTS TO THEIR INDEPENDENCE). WITHIN THE CODE OF CONDUCT POLICY THERE IS A REQUIREMENT TO DIVULGE ANY CONFLICT. THE SIGNED DOCUMENTS ARE RETAINED BY HUMAN RESOURCES AND THE BOARD SECRETARY. POTENTIAL CONFLICTS OF INTEREST ARE INVESTIGATED IMMEDIATELY. FORM 990, PART VI, SECTION B, LINE 15A PROCESS USED TO DETERMINE EXECUTIVE COMPENSATION THE ASSOCIATION HAS ESTABLISHED A COMPENSATION COMMITTEE TO DETERMINE THE COMPENSATION OF THE TOP MANAGEMENT OFFICIAL. THE COMPENSATION COMMITTEE MEETS ANNUALLY TO APPROVE BOTH RAISES AND BONUSES. THE OVERALL SALARY AND BENEFIT EXPENSES FOR THE NEXT FISCAL YEAR ARE PRESENTED TO THE FULL BOARD OF DIRECTORS IN JANUARY OR MAY. THE BOARD OF DIRECTORS IS REQUIRED TO APPROVE THE BUDGET, BEFORE SALARY INCREASES GO INTO EFFECT. NONE OF THE OFFICERS AND/OR KEY EMPLOYEES MAY HAVE INPUT INTO THEIR OWN COMPENSATION PACKAGES. THE LAST COMPENSATION STUDY WAS PERFORMED IN OCTOBER OF 2021. FORM 990, PART VI, SECTION C, LINE 19 HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC THE ASSOCIATION MAKES ITS CONSTITUTION AVAILABLE TO THE PUBLIC ON ITS WEBSITE. THE ASSOCIATION'S CONFLICT OF INTEREST POLICY, EXEMPTION APPLICATION, BYLAWS, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AND AT MANAGEMENT'S DISCRETION. FORM 990, PART VII COMPENSATION THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES, INC. ALLOCATES A PERCENTAGE OF ITS EXECUTIVE SALARIES TO A RELATED TAXABLE CORPORATION, AAAA BENEFITS, INC. FOR PURPOSES OF PART VII AND SCHEDULE J, ALL SALARY IS BEING REPORTED TO THE ASSOCIATION SINCE IT ISSUES W-2 FORMS TO THE OFFICERS. FOR THE YEAR ENDING 03/31/2022, THE ASSOCIATION ALLOCATED SALARIES EQUAL TO APPROXIMATELY $150,000 TO AAAA BENEFITS, INC. FORM 990, PART XI, LINE 9: NET PERIODIC PENSION BENEFIT 4,653. 4A'S WORKPLACE ENLIGHTENMENT LLC 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 EDUCATION NY 0 0 AAAA AAAA FOUNDATION 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 133949950 SCHOLARSHIPS NY 501(C)(3) LINE 7 N/A 0 ADVERTISING DIGITAL IDENTIFICATION LLC 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 061639073 DIGITAL ID'S NY N/A RELATED 1898397 871281 0 1 0.50000 AAAA BENEFITS INC 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 133439015 EMP BENEFITS NC AAAA C 2951667 5804162 1.00000 1 AAAA INSURANCE COMPANY LTD 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 980207541 INSURANCE BD AAAA C 19342246 29232718 1.00000 1 AAAA GROUP INSURANCE TRUST 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 133685892 SUPPORT SVCS NC AAAA T 1.00000 1 0 0 0 0 0 1 0 0 0 0 0 1 0 1 1 0 1 0 1 AAAA BENEFITS INC F 100000 FMV AAAA BENEFITS INC L 150000 FMV AAAA BENEFITS INC O 309000 FMV AAAA BENEFITS INC S 133500 FMV ADVERTISING DIGITIAL IDENTIFICATION LLC S 500000 FMV AAAA FOUNDATION S 241759 FMV AAAA FOUNDATION L 546467 FMV SCHEDULE R, PART V, LINE 2 THE ASSOCIATION DISCLOSES SEVEN TRANSACTIONS ON SCHEDULE R. THE ASSOCIATION IS REIMBURSED BY AAAA FOUNDATION FOR CERTAIN ADMINISTRATIVE, PROGRAMMATIC AND SUPPORT SERVICES. THESE EXPENSES ARE REIMBURSED AT COST AND THE TOTAL REIMBURSED FOR THE YEAR ENDING MARCH 31, 2022 WAS $241,759. THE ASSOCIATION IS REIMBURSED BY AAAA BENEFITS FOR A PERCENTAGE OF THE SALARY COSTS OF SIX EMPLOYEES, AS WELL AS A PERCENTAGE OF LEGAL AND PAYROLL COSTS. THE ASSOCIATION DOES NOT ASSESS ANY MARK UP ON THESE EXPENSES; THEY ARE REIMBURSED AT COST AND THE TOTAL REIMBURSED FOR THE YEAR ENDING MARCH 31, 2022 WAS $150,000 FOR ADMINISTRATIVE AND SUPPORT SERVICES. THE ASSOCIATION IS ALSO REIMBURSED $309,000 FOR THE YEAR ENDING MARCH 31, 2022 FOR EXPENSES THAT DEAL WITH SALARIES AND EMPLOYEE BENEFITS. THE ASSOCIATION, LIKEWISE, RECEIVED A DIVIDEND FROM AAAA BENEFITS IN THE AMOUNT OF $100,000. THE ASSOCIATION INVESTS IN ADVERTISING DIGITAL IDENTIFICATION LLC; THE DISTRIBUTION FROM THIS INVESTMENT FOR THE YEAR ENDING MARCH 31, 2022 WAS $500,000.