2022-06-14T03:14:12-05:00 2021-07-31 861065772 DELOITTE TAX LLP 925 FOURTH AVENUE SUITE 3300 SEATTLE WA 981041126 990 2020-08-01 956052058 NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC NATI 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 WAYNE ZAHNER CHIEF FINANCIAL OFFICER 3103923777 2022-06-09 1 WAYNE ZAHNER 999009999 JANE M SEARING P00000565 2067167000 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z RECORDING ACADEMY HARVEY MASON JR 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 82803869 0 X WWW.GRAMMY.COM X 1987 DE OUR MISSION IS TO ADVANCE THE ARTS AND SCIENCES OF RECORDING AND TO FOSTER CREATIVE LEADERSHIP. 45 44 186 500 233517 0 1429324 1197707 80379516 63255398 2060897 7321854 1598031 1906590 85467768 73681549 11251682 6045451 0 0 21922476 23157717 0 0 0 56614217 50676506 89788375 79879674 -4320607 -6198125 126159052 144766278 15010200 27658916 111148852 117107362 X OUR MISSION IS TO ADVANCE THE ARTS AND SCIENCES OF RECORDING AND TO FOSTER CREATIVE LEADERSHIP FOR ARTISTIC, CULTURAL, EDUCATIONAL, AND TECHNICAL PROGRESS IN THE RECORDING FIELD. A PRIMARY ACTIVITY OF THE RECORDING ACADEMY IS THE RECOGNITION OF OUTSTANDING CREATIVE AND TECHNICAL ACHIEVEMENTS IN THE RECORDING ARTS OF THOSE DEEMED TO BE MOST WORTHY BY THEIR PEERS THROUGH THE ANNUAL PRESENTATION OF THE GRAMMY AWARDS. 0 0 THE RECORDING ACADEMY PRODUCES THE GRAMMY AWARDS, THE ONLY PEER-PRESENTED AWARD TO HONOR ARTISTIC ACHIEVEMENT, TECHNICAL PROFICIENCY AND EXCELLENCE IN THE RECORDING INDUSTRY, WITHOUT REGARD TO ALBUM SALES OR CHART POSITION. 0 0 0 1 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 X 238 0 1 186 1 1 1 0 0 0 1 1 0 1 0 X 45 44 1 0 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 CA IL NY X X WAYNE J ZAHNER 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 X HARVEY MASON ACTING CEO (FROM 3/20 TO 5/21) CEO (FROM 6/21) 5.00 1.20 X X 0 0 0 ANDREW JOSLYN TRUSTEE 1.00 0.00 X 0 0 0 ANGELIQUE KIDJO TRUSTEE (FROM 7/1/21) 1.00 0.00 X 0 0 0 ANNA FRICK TRUSTEE (FROM 7/1/21) 1.00 0.00 X 0 0 0 BERNARD FREEMAN TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 BETH COHEN TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 CAROLYN MALACHI TRUSTEE 1.00 0.00 X 0 0 0 CAROLYN RIDDICK TRUSTEE 1.00 0.00 X 0 0 0 CHECHE ALARA TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 CHELSEY GREEN TRUSTEE 1.00 0.00 X 0 0 0 CHRISTINE ALBERT CHAIR EMERITUS & TRUSTEE 1.00 0.00 X 0 0 0 CLAUDIA MENKARSKI BRANDT TRUSTEE 1.00 0.00 X 0 0 0 DARRELL BROWN TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 DAVE COBB TRUSTEE (FROM 7/1/21) 1.00 0.00 X 0 0 0 DAVID GROSS TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 DAVID HARRIS TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 DOUGLAS EMERY TRUSTEE 1.00 0.00 X 0 0 0 EMILY LAZAR TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 EVAN BOGART TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 FERDDY CALDERON MOSCOSO TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 FLETCHER FOSTER TRUSTEE 1.00 0.00 X 0 0 0 GEBRE WADDELL TRUSTEE 1.00 0.00 X 0 0 0 GEORGE FLANIGEN IV TRUSTEE 1.00 0.00 X 0 0 0 J IVY TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 JENNIFER HANSON TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 JIMMY DOUGLASS TRUSTEE 1.00 0.00 X 0 0 0 JOHN BURK TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 JOHN HOPKINS TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 JOHN LEGEND TRUSTEE 1.00 0.00 X 0 0 0 JONATHAN MCREYNOLDS TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 JULIA MICHELS TRUSTEE 1.00 0.00 X 0 0 0 JUSTIN ROBERTS TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 KEN SHEPHERD TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 KENNARD GARRETT TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 LARRY BATISTE TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 LESLIE ANN JONES TRUSTEE 1.00 0.00 X 0 0 0 LISA KAPLAN TRUSTEE 1.00 0.00 X 0 0 0 MARCUS BAYLOR TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 MARIA ELISA AYERBE TRUSTEE (FROM 7/1/21) 1.00 0.00 X 0 0 0 MICHAEL ROMANOWSKI TRUSTEE 1.00 0.00 X 0 0 0 NATALIA RAMIREZ TRUSTEE 1.00 0.00 X 0 0 0 OM'MAS KEITH GRAHAM TRUSTEE (TO 5/31/21), SCRTRY/TREASR (FROM 6/1/21) 1.00 0.00 X 0 0 0 PAUL WALL SLAYTON TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 PIPER PAYNE TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 PJ MORTON TRUSTEE 1.00 0.00 X 0 0 0 RICHARD BUTLER VICE CHAIR (FROM 6/1/21) 5.00 0.00 X 0 0 0 RIGGS MORALES TRUSTEE 1.00 0.00 X 0 0 0 SAMANTHA COX TRUSTEE 1.00 0.00 X 0 0 0 SHANNON SANDERS TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 SUE ENNIS TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 SUSAN MARSHALL TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 TAMMY HURT VICE CHAIR (TO 5/31/21), CHAIR (FROM 6/1/21) 5.00 0.00 X 0 0 0 TERRI LYNE CARRINGTON TRUSTEE 1.00 0.00 X 0 0 0 TERRY HEMMINGS SECRETARY/TREASURER (TO 5/31/21) 1.00 0.00 X 0 0 0 TERRY JONES TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 TIM PALMER TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 TK KIDD TRUSTEE 1.00 0.00 X 0 0 0 TRACY GERSHON TRUSTEE (FROM 6/1/21) 1.00 0.00 X 0 0 0 TRACY HAMLIN TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 TREY FANJOY TRUSTEE (TO 5/31/21) 1.00 0.00 X 0 0 0 VON VARGAS TRUSTEE 1.00 0.00 X 0 0 0 YOLANDA ADAMS TRUSTEE 1.00 0.00 X 0 0 0 WAYNE ZAHNER CHIEF FINANCIAL OFFICER 40.00 1.20 X 417694 0 24394 BRANDEN CHAPMAN CHIEF OPERATING OFFICER 40.00 1.20 X 487945 0 34789 DARYL FRIEDMAN CHIEF ADVOCACY & PUBLIC POLICY OFFCR 40.00 0.00 X 478616 0 35284 WILLIAM FREIMUTH CHIEF AWARDS OFFICER 40.00 0.00 X 350241 0 37619 LISA FARRIS CHIEF MARKETING & INNOVATION OFFICER 40.00 0.00 X 306073 0 47651 RICHARD ENGDAHL CHIEF INFORMATION OFFICER 40.00 0.00 X 316516 0 25609 ADAM ROTH SR. VP P'SHIPS & BUSINESS DEVELOPMENT 40.00 0.00 X 301992 0 19015 SHONDA GRANT CHIEF PEOPLE & CULTURE OFFICER 40.00 0.00 X 233281 0 33707 KELLY DARR MANAGING DIRECTOR (ARTIST RELATIONS) 40.00 0.00 X 243027 0 14667 DEBORAH SZULANSKY FORMER OFFICER (PRES./CEO TO 3/2/20) 0.00 0.00 X 205490 0 18366 3340875 0 291101 54 1 1 0 AEG EHRLICH VENTURES LLC 4355 LANAI ROAD ENCINO CA 91436 EVENT PRODUCTION 12927447 FULWELL 73 UK LIMITED 7A BAYHAM STREET LONDON UK NW1 0EY EVENT PRODUCTION 4974200 PROSKAUER ROSE LLP ELEVEN TIMES SQUARE NEW YORK NY 10036 LEGAL SERVICES 3732642 YOUNG BULL PRODUCTIONS INC 333 N GLENOAKS BLVD SUITE 510 BURBANK CA 91502 EVENT PRODUCTION 1500000 GREENBERG TRAURIG LLP- FORUM 3333 PIEDMONT ROAD NE 2500 ATLANTA GA 30305 LEGAL SERVICES 1423788 52 1197707 1197707 TELECAST EVENT INCOME 900099 55217276 55217276 SPONSORSHIP INCOME 711320 7647339 7647339 PUBLICATION INCOME 541800 386308 152791 233517 NARAS RELATED EVENTS 711320 4475 4475 63255398 5645004 5645004 1347835 1347835 10799170 9122320 1676850 1676850 1676850 FILM CLIP INCOME 900099 322431 322431 OTHER INCOME 900099 226733 226733 ANNUITY INCOME 900099 9591 9591 558755 73681549 383999 233517 71866326 6020451 25000 2418223 16459121 360529 2559843 1360001 6743656 421983 150000 636937 3887587 3198526 1986819 1789623 5208254 214352 10236 33644 513679 1076370 EVENT PRODUCTION 21067556 EVENT EXPENSES 1998600 SETTLEMENT PAYMENT 1525175 ENTERTAINMENT 30625 182884 79879674 1538 1288 10040453 8579005 3959319 9154793 3223387 2662599 9384873 7664123 1817191 1720750 89675816 108784536 11382 11456 17429966 13851851 126159052 144766278 4408586 9653089 10513176 17877563 88438 128264 15010200 27658916 X 111148852 117107362 111148852 117107362 126159052 144766278 -6198125 12425698 -269063 0 X X 0 1 X 1 0 1 0 1 1197707 542940 542940 1197707 -654767 89675816 19745657 636937 108784536 87064143 0 3170493 558820 89675816 80446791 4500000 2776667 659315 87064143 75976177 750169 4347271 626826 80446791 65009235 4800011 6741834 574903 75976177 1.00000 1 0 5515031 4332412 1182619 3488744 3310705 178039 381098 21006 360092 1720750 DUE FROM NARAS PROPERTIES, INC. 10420780 DUE FROM GRAMMY MUSEUM FOUNDATION, INC. 2211531 DUE FROM LATIN ACADEMY OF RECORDING ARTS & SCIENCES, INC. 511634 ROYALTY RECEIVABLE DUE FROM LATIN ACADEMY OF RECORDING ARTS & SCIENCES, INC. 441957 OTHER RETIREMENT LIABILITY - 457(B) 128264 DUE FROM MUSICARES FOUNDATION, INC. 109355 BARTER/OTHER INVENTORY 24672 DUE FROM THE LATIN GRAMMY CULTURAL FOUNDATION 3658 13851851 OTHER RETIREMENT LIABILITY - 457(B) 128264 128264 X PART V, LINE 4: THE INTENDED PURPOSE OF THE ENDOWMENT FUND IS TO EVENTUALLY USE ITS INVESTMENT INCOME TOWARDS OPERATIONS IN PROMOTION OF THE MISSION AND GROWTH OF THE RECORDING ACADEMY AS WELL AS PROVIDE OPERATIONAL SUPPORT IN CASE OF A CATASTROPHIC EVENT. PART X, LINE 2: THE RECORDING ACADEMY ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES. FASB ASC 740 PRESCRIBES A COMPREHENSIVE MODEL FOR HOW A COMPANY SHOULD RECOGNIZE, MEASURE, PRESENT, AND DISCLOSE IN ITS COMBINED FINANCIAL STATEMENTS UNCERTAIN TAX POSITIONS THAT THE COMPANY HAS TAKEN, OR EXPECTS TO TAKE, ON A TAX RETURN. DURING THE YEARS ENDED JULY 31, 2021 AND 2020, THE RECORDING ACADEMY DID NOT INCUR A MATERIAL LIABILITY FOR UNRECOGNIZED TAX BENEFITS. PART IX DUE FROM NARAS PROPERTIES, INC.: ON DECEMBER 21, 2016 NARAS PROPERTIES, INC. PURCHASED A RESIDENTIAL PROPERTY IN NEW YORK CITY, NEW YORK ON BEHALF OF THE RECORDING ACADEMY, A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC., TO BE USED BY THE RECORDING ACADEMY AND ITS AFFILIATED TAX EXEMPT ORGANIZATIONS. THE PROPERTY IS IN THE PROCESS OF BEING PLACED INTO USE. 1 GRAMMY MUSEUM FOUNDATION INC 800 WEST OLYMPIC BOULEVARD A245 LOS ANGELES CA 90015 261447714 501(C)(3) 2978684 13346 FMV SIDEWALK PLAQUE REPLACEMENT CONTRIBUTIONS AND PROGRAM SERVICE SUPPORT MUSICARES FOUNDATION INC 3030 OLYMPIC BOULEVARD SANTA MONICA CA 90404 954470909 501(C)(3) 2655852 CONTRIBUTIONS AND PROGRAM SERVICE SUPPORT LATIN GRAMMY CULTURAL FOUNDATION INC 3470 NW 82ND AVENUE STE 700 MIAMI FL 33122 464770436 501(C)(3) 150000 GENERAL SUPPORT MUSIC EDUCATION COALITION INC 202 WASHINGTON STREET STE 322 BROOKLINE MA 02445 814015913 501(C)(3) 149569 GENERAL SUPPORT ARIZONA STATE UNIVERSITY PO BOX 876011 TEMPE AZ 852876011 860196696 GOVERNMENT ENTITY 15000 WOMAN IN THE MIX STUDY BERKLEE COLLEGE OF MUSIC 855 BOYLSTON STREET BOSTON MA 02116 042300472 501(C)(3) 10000 WOMAN IN THE MIX STUDY 6 0 SCHOLARSHIPS 11 25000 CASH VALUE PART I, LINE 2: CHAPTERS OF THE RECORDING ACADEMY MAKE DONATIONS TO VARIOUS CHARITABLE ORGANIZATIONS IN THEIR RESPECTIVE COMMUNITIES. THE CHAPTERS, EITHER THROUGH THEIR LOCAL CHARITABLE GIVING COMMITTEE OR LOCAL EXECUTIVE COMMITTEE, PUT FORTH A PROPOSAL FOR THE LOCAL CHAPTER BOARD TO APPROVE DONATIONS OF THEIR SPECIAL PROJECT FUNDS TO BE USED FOR THIS PURPOSE. THESE FUNDS ARE THE ACCUMULATION OF FUNDS BASED ON EVENTS HELD AT THE LOCAL LEVEL. THESE CHAPTER-APPROVED DISBURSEMENTS OVER $2,500 ARE THEN SENT TO THE NATIONAL FINANCE SUBCOMMITTEE FOR FINAL APPROVAL. A PRESENTATION IS MADE DISCLOSING INFORMATION ABOUT THE BENEFICIARY, ITS TAX-EXEMPT STATUS, THE NATURE OF THE USE OF THE FUNDS AND OTHER PERTINENT INFORMATION. THE FINANCE SUBCOMMITTEE APPROVES ALL DONATIONS OVER $2,500. THE NATIONAL HEADQUARTERS OF THE RECORDING ACADEMY SPONSORS VARIOUS CHARITIES IN THE COMMUNITIES IT SERVES THROUGH PURCHASES OF TABLES AT EVENTS AND/OR ADVERTISEMENTS IN PROGRAM BOOKS AND FROM TIME-TO-TIME MINIMAL CASH DONATIONS. THE RECORDING ACADEMY PROVIDES ASSISTANCE TO ITS AFFILIATED ENTITIES: MUSICARES FOUNDATION, INC., GRAMMY MUSEUM FOUNDATION, INC., AND LATIN GRAMMY CULTURAL FOUNDATION. X 1 1 X X X X X X 1 0 0 BRANDEN CHAPMAN CHIEF OPERATING OFFICER 482385 0 1750 0 3810 0 9750 0 25039 0 522734 0 0 0 DARYL FRIEDMAN CHIEF ADVOCACY & PUBLIC POLICY OFFCR 450544 0 1750 0 26322 0 10250 0 25034 0 513900 0 0 0 WAYNE ZAHNER CHIEF FINANCIAL OFFICER 411702 0 1750 0 4242 0 11813 0 12581 0 442088 0 0 0 WILLIAM FREIMUTH CHIEF AWARDS OFFICER 341669 0 1750 0 6822 0 12580 0 25039 0 387860 0 0 0 LISA FARRIS CHIEF MARKETING & INNOVATION OFFICER 299001 0 1750 0 5322 0 13000 0 34651 0 353724 0 0 0 RICHARD ENGDAHL CHIEF INFORMATION OFFICER 308202 0 1750 0 6564 0 13000 0 12609 0 342125 0 0 0 ADAM ROTH SR. VP P'SHIPS & BUSINESS DEVELOPMEN 266702 0 31750 0 3540 0 5513 0 13502 0 321007 0 0 0 SHONDA GRANT CHIEF PEOPLE & CULTURE OFFICER 227839 0 1750 0 3692 0 7635 0 26072 0 266988 0 0 0 KELLY DARR MANAGING DIRECTOR (ARTIST RELATIONS) 200481 0 0 0 42546 0 4500 0 10167 0 257694 0 0 0 DEBORAH SZULANSKY FORMER OFFICER (PRES./CEO TO 3/2/20) 203918 0 0 0 1572 0 3000 0 15366 0 223856 0 0 0 PART I, LINE 1A THE RECORDING ACADEMY HAS A WRITTEN POLICY REGARDING THE CIRCUMSTANCES IN WHICH FIRST CLASS TRAVEL MAY BE USED. THE ORGANIZATION MAKES IT A PRACTICE TO ROUTINELY USE COACH OR BUSINESS CLASS AIRLINE TRAVEL. THE PRESIDENT/CEO AND ELECTED OFFICERS ARE PERMITTED TO FLY FIRST CLASS, ALTHOUGH THEY ARE ENCOURAGED TO FLY BUSINESS CLASS, IF AVAILABLE, PRIOR TO BOOKING IN FIRST CLASS. FURTHER, THESE INDIVIDUALS ARE ALSO ENCOURAGED TO USE COACH CLASS TRAVEL FOR VERY SHORT TRIPS. OTHER MEMBERS OF SENIOR MANAGEMENT (MANAGING DIRECTORS AND ABOVE) ARE ONLY ALLOWED TO FLY BUSINESS OR FIRST CLASS IF THE FLIGHT IS OVER TWO HOURS IN DURATION. FOR INTERNATIONAL TRAVEL, THE FIRST CHOICE IS BUSINESS CLASS AND THE SECOND CHOICE IS FIRST CLASS FOR ALL MEMBERS OF SENIOR MANAGEMENT (MANAGING DIRECTORS AND ABOVE). THE BOARD OF TRUSTEES MEMBERS ARE OFFERED THE OPPORTUNITY TO FLY FIRST CLASS OR BUSINESS CLASS FOR THE IN-PERSON BOARD MEETINGS EACH YEAR. PART I, LINE 4A KELLY DARR RECEIVED A SEVERANCE OF $161,250 DURING THE YEAR ENDED JULY 31, 2020. PHOENIX RESTORATIONS INC SEE PART V 75000 PRODUCTION 0 SCHEDULE L, PART IV: GEORGE FLANIGEN, IV, TRUSTEE, WAS COMPENSATED BY PHOENIX RESTORATIONS, INC. FOR HIS WORK AS A PRODUCTION CONSULTANT OF THE 63RD GRAMMY AWARDS. FORM 990, PART V, LINE 6B THE ORGANIZATION DOES NOT SOLICIT CONTRIBUTIONS FROM THE GENERAL PUBLIC, HOWEVER, THEY DO ACCEPT SPONSORSHIP INCOME FROM CORPORATE DONORS AS PART OF THEIR EVENTS. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIR OF THE BOARD OF TRUSTEES, VICE CHAIR OF THE BOARD OF TRUSTEES, SECRETARY/TREASURER OF THE BOARD OF TRUSTEES, CHAIR EMERITUS OF THE BOARD OF TRUSTEES AND FOUR (4) SITTING TRUSTEES SELECTED BY THE CHAIR OF THE BOARD OF TRUSTEES IN CONSULTATION WITH THE CHIEF EXECUTIVE OFFICER AND RATIFIED BY THE BOARD OF TRUSTEES. THEY ARE GRANTED UNILATERAL RIGHTS TO CONDUCT BUSINESS ON BEHALF OF THE BOARD OF TRUSTEES. ANY SUCH ACTION SHALL BE COMMUNICATED TO THE ENTIRE BOARD AS PROMPTLY AS THE EXECUTIVE COMMITTEE DEEMS REASONABLY PRACTICABLE. SUCH ACTIONS SHALL NOT INCLUDE: (A)ALTERING MAJOR LEGAL DOCUMENTS SUCH AS, BUT NOT LIMITED TO, THE CERTIFICATE OF INCORPORATION, BYLAWS, OR GOVERNANCE MANUAL; (B)AUTHORIZING MERGERS (OTHER THAN A MERGER OF ANY WHOLLY-OWNED SUBSIDIARY WITH THE RECORDING ACADEMY), ACQUISITIONS, JOINT VENTURES, CONSOLIDATIONS OR DISSOLUTIONS; OR APPROVING THE SALE, LEASE, EXCHANGE OR ENCUMBRANCE OF ANY MATERIAL ASSET OF THE RECORDING ACADEMY THAT IS NOT IN THE ORDINARY COURSE OF BUSINESS OF THE RECORDING ACADEMY; (C)FORMING OR DISSOLVING STANDING AND TRUSTEE-ONLY COMMITTEES OF THE BOARD, OR AMENDING THE CHARTER OF ANY COMMITTEE; (D)TAKING ANY ACTIONS THAT HAVE BEEN EXPRESSLY, BY CHARTER OR RESOLUTIONS, DELEGATED TO ANY OTHER TRUSTEE-ONLY COMMITTEE; AND (E)AMENDING OR REPEALING ANY RESOLUTION OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 2 THE FOLLOWING PEOPLE HAD BUSINESS RELATIONSHIPS: JOHN LEGEND WITH HARVEY MASON JR. TK KIDD WITH JOHN HOPKINS MICHAEL ROMANOWSKI WITH TAMMY HURT MICHAEL ROMANOWSKI WITH LESLIE ANN JONES MATT STILL WITH TAMMY HURT FORM 990, PART VI, SECTION A, LINE 4 THE FOLLOWING CHANGES WERE MADE DURING THE RECORDING ACADEMY'S TAX YEAR: - THE ORGANIZATION'S GOVERNANCE MANUAL WAS AMENDED TO ELIMINATE THE THREE AUTOMATIC EXCEPTIONS TO THE MEMBERSHIP REQUALIFICATION REQUIREMENT THAT A VOTING MEMBER BE AN ACTIVE MUSIC CREATOR. - THE ORGANIZATION'S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION WAS CORRECTED TO ENSURE THAT THE BOARD OF TRUSTEES DID NOT LOSE THE POWER TO APPROVE AMENDMENTS TO THE AMENDED AND RESTATED CERTIFICATE OF INCORPORATION. - THE ORGANIZATION'S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION WAS AMENDED TO AUTHORIZE THE BOARD OF TRUSTEES TO ADOPT, AMEND, OR REPEAL THE BYLAWS OR ADOPT NEW BYLAWS WITHOUT ANY ACTION ON THE PART OF THE MEMBERSHIP. - THE ORGANIZATION'S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION ("COI") WAS AMENDED TO REMOVE (I) THE VOTING MEMBERS' RIGHT TO PROPOSE COI AMENDMENTS ON THEIR OWN AND ALSO (II) THE VOTING MEMBERS RATIFICATION REQUIREMENT IF ALL THE RECORDING ACADEMY CAN GARNER FOR A COI AMENDMENT IS THE APPROVAL OF A MAJORITY OF THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 6 THERE ARE THREE CATEGORIES OF MEMBERS OF THE RECORDING ACADEMY: (A) VOTING MEMBERS; (B) PROFESSIONAL MEMBERS; AND (C) GRAMMY UNIVERSITY MEMBERS. EACH MEMBERSHIP CLASS HAS ITS OWN RIGHTS AND ESTABLISHED CRITERIA FOR PARTICIPATION AS SET FORTH BY THE ORGANIZATION'S BYLAWS. FORM 990, PART VI, SECTION A, LINE 7A VOTING MEMBERS FROM EACH CHAPTER: THE VOTING MEMBERS FROM EACH CHAPTER SHALL CONSTITUTE A SEPARATE MEMBERSHIP CLASS (THE "CHAPTER VOTING MEMBER MEMBERSHIP CLASS") AT THE TIME AND, AS SUCH, SHALL ELECT THE VOTING MEMBER GOVERNORS FROM SUCH CHAPTER BY A PLURALITY VOTE OF QUALIFIED RETURNED BALLOTS EQUAL TO NOT LESS THAN TEN PERCENT OF THE TOTAL NUMBER OF MEMBERS OF SUCH MEMBERSHIP CLASS. VOTING MEMBERS AND PROFESSIONAL MEMBERS FROM EACH CHAPTER: THE VOTING MEMBERS AND PROFESSIONAL MEMBERS FROM EACH CHAPTER AT THE TIME SHALL CONSTITUTE A SEPARATE MEMBERSHIP CLASS (THE "CHAPTER VOTING MEMBER AND PROFESSIONAL MEMBER MEMBERSHIP CLASS") AND, AS SUCH, SHALL ELECT THE PROFESSIONAL MEMBER GOVERNORS FROM SUCH CHAPTER BY A PLURALITY VOTE OF QUALIFIED RETURN BALLOTS EQUAL TO NOT LESS THAN TEN PERCENT OF THE TOTAL NUMBER OF MEMBERS OF SUCH MEMBERSHIP CLASS. TRUSTEE ELECTIONS: THE MEMBERS FROM EACH CHAPTER WHO AT THE TIME ARE VOTING MEMBER GOVERNORS, PROFESSIONAL MEMBER GOVERNORS, CHAPTER OFFICERS AND TRUSTEES SHALL CONSTITUTE A SEPARATE MEMBERSHIP CLASS (THE "CHAPTER BOARD MEMBERSHIP CLASS"). THE CHAPTER BOARD MEMBERSHIP CLASS SHALL ELECT, BY A PLURALITY VOTE OF A MAJORITY OF THE CHAPTER BOARD MEMBERSHIP CLASS ELIGIBLE TO VOTE: (A) THE TRUSTEES TO BE ELECTED BY SUCH CHAPTER; AND (B) THE CHAPTER OFFICERS OF SUCH CHAPTER. THE VOTING MEMBER AND PROFESSIONAL MEMBER MEMBERSHIP CLASS SHALL ELECT, BY A PLURALITY VOTE OF A MAJORITY OF THE VOTING MEMBER AND PROFESSIONAL MEMBER MEMBERSHIP CLASS ELIGIBLE TO VOTE, THE TRUSTEES TO BE ELECTED BY THE VOTING MEMBER AND PROFESSIONAL MEMBER MEMBERSHIP CLASS. ALL TRUSTEES SHALL HAVE THE SAME ROLES AND RESPONSIBILITIES, REGARDLESS OF WHETHER THEY ARE ELECTED BY THE CHAPTER BOARD MEMBERSHIP CLASS OR THE VOTING AND PROFESSIONAL MEMBER MEMBERSHIP CLASSES. TRUSTEES: THE MEMBERS WHO AT THE TIME ARE TRUSTEES SHALL CONSTITUTE A SEPARATE MEMBERSHIP CLASS (THE "TRUSTEE MEMBERSHIP CLASS"). DURING THE PERIOD A PERSON IS IN OFFICE AS A TRUSTEE OFFICER, SUCH PERSON WILL ALSO BE A TRUSTEE. THE TRUSTEE MEMBERSHIP CLASS SHALL (A) ELECT THE TRUSTEE OFFICERS BY A MAJORITY VOTE OF A SIMPLE QUORUM. IF THERE IS A TIE, THERE SHALL BE RUNOFF ELECTIONS UNTIL A SINGLE CANDIDATE RECEIVES A MAJORITY VOTE OF A SIMPLE QUORUM; (B) HAVE THE POWER, BY A SUPERMAJORITY VOTE OF A SUPERMAJORITY QUORUM, (I) TO REMOVE ANY TRUSTEE FROM OFFICE UNDER SECTION 6.9, (II) TO REMOVE ANY TRUSTEE OFFICER FROM OFFICE UNDER SECTION 7.1.3, AND (III) TO REMOVE ANY GOVERNOR FROM OFFICE UNDER SECTION 9.4.6; (C) HAVE THE POWER TO RATIFY THE COMMITTEE NOMINATIONS UNDER SECTION 6.14; AND (D) HAVE THE POWER TO APPROVE, ADOPT, VOTE ON, CONSENT WITH RESPECT TO, OR RATIFY SUCH MATTERS OR ACTIONS THAT THE CHAIR OR THE EXECUTIVE COMMITTEE DECIDES TO SUBMIT TO THE TRUSTEE MEMBERSHIP CLASS FOR SUCH ACTION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS PREPARED BY DELOITTE TAX LLP, WORKING IN CONJUNCTION WITH THE ORGANIZATION'S FINANCE DEPARTMENT. THE DRAFT OF THE FORM 990 IS REVIEWED BY THE ORGANIZATION'S MANAGEMENT. THE INITIAL DRAFT OF THE FORM 990 IS THEN PROVIDED TO THE RECORDING ACADEMY'S AUDIT/FINANCE COMMITTEE FOR THEIR REVIEW. ANY COMMENTS RESULTING FROM THEIR REVIEW ARE INCORPORATED INTO THE FINAL FILING OF THE FORM 990. THE AUDIT/FINANCE COMMITTEE HAS BEEN AUTHORIZED BY THE BOARD OF TRUSTEES TO REVIEW THE TAX FILINGS AND APPROVE THEM TO BE FILED. A COPY OF THE RETURN IS MAILED TO EACH TRUSTEE AFTER APPROVAL AND BEFORE THE ULTIMATE FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATE SECRETARY DISTRIBUTES THE STATEMENT OF CONFLICT OF INTEREST POLICY AT A TRUSTEES MEETING. THE STATEMENTS ARE COLLECTED BY THE CORPORATE SECRETARY AND THEN A SUMMARY REPORT IS GIVEN TO THE CHAIR OF THE BOARD OF TRUSTEES AND THE PRESIDENT/CHIEF EXECUTIVE OFFICER. ACCORDINGLY, THE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE CHIEF EXECUTIVE OFFICER ARE RESPONSIBLE FOR BOTH MONITORING AND ENFORCING THE CONFLICT OF INTEREST POLICY BASED ON THE STATEMENTS THAT ARE PROVIDED. FORM 990, PART VI, SECTION B, LINE 15A THE PRESIDENT/CEO COMPENSATION WAS DETERMINED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES, FUNCTIONING AS A COMPENSATION COMMITTEE FOR THIS PURPOSE. THE DECISION WAS THEN RATIFIED BY THE BOARD OF TRUSTEES. THE COMMITTEE RELIED UPON THE ADVICE AND EXPERTISE OF LEGAL COUNSEL, AN INDEPENDENT OUTSIDE COMPENSATION CONSULTANT AND COMPARABILITY DATA IN DETERMINING THE COMPENSATION. THE MEETING IN WHICH THOSE DELIBERATIONS WERE CONDUCTED WAS CONTEMPORANEOUSLY DOCUMENTED. FORM 990, PART VI, SECTION B, LINE 15B: COMPENSATION FOR OTHER EMPLOYEES OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. IS SET BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER AND CHIEF PEOPLE AND CULTURE OFFICER. COMPENSATION IS DETERMINED BY THE REVIEW OF THE COMPENSATION OF OTHER EMPLOYEES AT SIMILAR LEVELS. INFORMATION FROM OUTSIDE ORGANIZATIONS IS GATHERED BY THE CHIEF PEOPLE AND CULTURE OFFICER AND BY A GENERAL KNOWLEDGE OF WHAT IS EXPECTED FOR THE POSITION BY THESE THREE INDIVIDUALS. AS IT RELATES TO ANNUAL INCREASES, THE CHIEF PEOPLE AND CULTURE OFFICER AND THE CHIEF FINANCIAL OFFICER HAVE DISCUSSED BENCHMARKING WITH PEOPLE AND CULTURE MANAGEMENT AND THE CHIEF FINANCIAL OFFICER OF SIMILAR ORGANIZATIONS. AGREEMENT IS OBTAINED BETWEEN THESE THREE INDIVIDUALS (CEO, CFO, CHIEF PEOPLE AND CULTURE OFFICER) AS TO THE VALUE OF SERVICES PROVIDED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES THE BYLAWS AVAILABLE ON IT'S WEBSITE. IT DOES NOT MAKE THE CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION A: SALARY INFORMATION REPORTED ON PART VII AND SCHEDULE J IS FOR THE CALENDAR YEAR ENDED WITH OR WITHIN THE FISCAL TAX YEAR, AS REQUIRED BY THE IRS. MS. SZULANSKY'S SALARY INFORMATION IS FOR THE PERIOD OF 1/1/2020 THROUGH SEPARATION DATE OF 3/2/2020. FORM 990, PART XII, LINE 2A & 2B THE ORGANIZATION'S FINANCIAL STATEMENTS WERE AUDITED AS PART OF THE COMBINED FINANCIAL STATEMENTS THAT INCLUDED NARAS PROPERTIES, INC. A RELATED TAX-EXEMPT ORGANIZATION. TANGIBLE PROPERTY REGULATION ELECTIONS SECTION 1.263(A)-1(F) DE MINIMIS SAFE HARBOR ELECTION TAXPAYER IS MAKING THE DE MINIMIS SAFE HARBOR ELECTION UNDER TREAS. REG. 1.263(A)-1(F) FOR ALL ELIGIBLE AMOUNTS PAID OR INCURRED DURING THE TAXABLE YEAR. SECTION 1.263(A)-3(N) CAPITALIZATION ELECTION TAXPAYER HEREBY ELECTS TO CAPITALIZE REPAIR AND MAINTENANCE COSTS UNDER TREAS. REG. 1.263(A)-3(N). THE COSTS WERE INCURRED DURING THE TAXABLE YEAR IN THE ELECTING TAXPAYER'S TRADE OR BUSINESS AND THE ELECTING TAXPAYER TREATS SUCH COSTS AS CAPITAL EXPENDITURES ON ITS BOOKS AND RECORDS. NARAS PROPERTIES INC 3030 OLYMPIC BOULEVARD SANTA MONICA CA 90404 954516666 HOLD TITLE TO REAL PROPERTY CA 501(C)(2) NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC 1 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 1 NARAS PROPERTIES INC D 1700000 CASH VALUE NARAS PROPERTIES INC K 4128124 FMV NARAS PROPERTIES INC S 4337428 FMV SCHEDULE R, PART V: NARAS PROPERTIES, INC. A RELATED SECTION 501(C)(2) TAX-EXEMPT ORGANIZATION CONTROLLED BY THE RECORDING ACADEMY, OWNS THE CORPORATE HEADQUARTERS IN SANTA MONICA, CALIFORNIA USED BY THE RECORDING ACADEMY AND ITS AFFILIATED TAX-EXEMPT ORGANIZATIONS. THE RECORDING ACADEMY PAID RENT FOR ITS USE OF THE CORPORATE HEADQUARTERS. THE VALUE OF THE RENT WAS DETERMINED BASED ON COMPARABLES OF SIMILAR PROPERTIES. NARAS PROPERTIES, INC. ALSO OWNS AN OFFICE BUILDING IN NASHVILLE, TENNESSEE USED BY THE NASHVILLE CHAPTER OF THE RECORDING ACADEMY AND MUSICARES, ONE OF ITS AFFILIATED TAX-EXEMPT ORGANIZATIONS. THE RECORDING ACADEMY PAID RENT FOR ITS USE OF THE PROPERTY. THE VALUE OF THE RENT WAS DETERMINED BASED ON COMPARABLES OF SIMILAR PROPERTIES. ON DECEMBER 21, 2016 NARAS PROPERTIES, INC. PURCHASED A RESIDENTIAL BUILDING IN NEW YORK CITY, NEW YORK. THE NEW YORK CHAPTERS OF THE RECORDING ACADEMY AND MUSICARES WILL UTILIZE THE PROPERTY ONCE RENOVATIONS ARE COMPLETE.