2021-11-08T08:39:49-06:00 2020-12-31 366055558 GRANT THORNTON LLP 1000 WILSON BOULEVARD SUITE 1400 ARLINGTON VA 22209 990 2020-01-01 208817225 THE AOPA FOUNDATION INC AOPA 3016952000 421 AVIATION WAY FREDERICK MD 21701 ERICA SACCOIA SVP FINANCE 3016952000 2021-11-08 1 ERICA SACCOIA 999009999 MARY TORRETTA P00847851 7038477500 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z MARK BAKER CEOPRESIDENT 421 AVIATION WAY FREDERICK MD 21701 22030992 0 X WWW.AOPA.ORG/FOUNDATION X 2007 MD SEE SCHEDULE O 12 11 11 20 -202 0 8788993 9538456 59000 0 377292 846142 0 0 9225285 10384598 8459333 6500000 0 0 808902 1221242 0 0 837927 1940192 1727504 11208427 9448746 -1983142 935852 37804657 41979653 809846 744133 36994811 41235520 X SEE SCHEDULE O 0 0 7984619 6500000 0 SEE SCHEDULE O 7984619 1 1 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0 0 0 1 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 1 13 0 1 11 1 0 1 1 CJ BD 0 0 0 1 1 1 2 0 0 1 0 0 0 X 12 11 1 0 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 AL AR CA FL GA HI IL KS KY MD MA MI MN MS NH NJ NM NY NC OR PA RI SC TN UT VA WV WI X X ERICA SACCOIA SVP FINANCE 3016952000 421 AVIATION WAY FREDERICK MD 21701 X MARK R BAKER PRESIDENT/CEO 10.00 40.00 X X 0 1513144 115215 JUSTINE A HARRISON SVP - GENERAL COUNSEL FROM 8/2019 10.00 40.00 X 0 428248 27451 GREGORY L COHEN SVP - ADMINISTRATION 10.00 40.00 X 0 335084 37561 ERICA J SACCOIA SVP - FINANCE 10.00 40.00 X 0 317917 28132 MELISSA K RUDINGER EXECUTIVE DIRECTOR 40.00 0.00 X 264093 0 30663 KENNETH M MEAD EVP - GENERAL COUNSEL TO 12/2019 0.00 6.00 X 0 270394 1346 HARVEY W COHEN MAJOR GIFTS OFFICER 40.00 0.00 X 134615 0 0 LILI W LEONARD DIRECTOR - DEVELOP OPERATIONS 40.00 0.00 X 120241 0 20824 AGNES J MACDONALD-HUTCHINS DIRECTOR - MAJOR GIFTS & PLANNED 40.00 0.00 X 102543 0 20008 WILLIAM C TRIMBLE III CHAIRMAN 1.00 1.00 X X 0 0 0 DARRELL W CRATE VICE CHAIRMAN 1.00 1.00 X X 0 0 0 JAMES N HAUSLEIN TREASURER 1.00 1.00 X X 0 0 0 WILLIAM S AYER TRUSTEE 1.00 1.00 X 0 0 0 LAWRENCE D BUHL III TRUSTEE 1.00 1.00 X 0 0 0 MATTHEW J DESCH TRUSTEE 1.00 1.00 X 0 0 0 AMANDA C FARNSWORTH TRUSTEE 1.00 1.00 X 0 0 0 HERMAN NEEL HIPP JR TRUSTEE 1.00 1.00 X 0 0 0 WILLIAM B L HUDSON TRUSTEE 1.00 1.00 X 0 0 0 JAMES G TUTHILL JR TRUSTEE 1.00 1.00 X 0 0 0 LUKE R WIPPLER TRUSTEE 1.00 1.00 X 0 0 0 BURGESS H HAMLET III TRUSTEE TO 08/2020 1.00 1.00 X 0 0 0 621492 2864787 281200 4 1 1 0 CHAPMAN CUBINE AND HUSSEY INC 2000 15TH ST N STE 550 ARLINGTON VA 22201 FUNDRAISING COUNSEL 187740 CAMBRIDGE ASSOCIATES LLC P O BOX 412015 BOSTON MA 022412015 INVESTMENT MANAGER 105372 2 9538456 568227 9538456 235634 -202 235836 12256902 11646394 610508 610508 610508 10384598 0 -202 846344 6500000 6500000 977849 452373 305852 219624 62001 27222 20243 14536 5721 746 4583 392 175671 80727 57355 37589 51007 51007 110312 110312 238460 105484 25818 107158 45293 45293 20773 7537 9264 3972 30017 17029 4013 8975 956 505 185 266 SHARED COSTS & OVERHEAD 672120 584629 33244 54247 PRINT, MAIL & POSTAGE 412806 192306 2490 218010 BAD DEBTS 119401 119401 RENTALS, REPAIRS, MAINT 7917 4160 1564 2193 18442 11901 270 6271 9448746 7984619 626200 837927 X 1867032 1028960 0 838072 3668651 4008928 1453107 712532 5769 26713 0 0 0 0 10714988 15292790 21631354 21580791 330788 357899 37804657 41979653 479058 433234 330788 310899 809846 744133 X 19328114 21718908 17666697 19516612 36994811 41235520 37804657 41979653 935852 3304857 0 X 0 1 X 1 0 X 6223034 7611506 7880805 8788993 9538456 40042794 6223034 7611506 7880805 8788993 9538456 40042794 11404501 28638293 121825 188561 192692 205172 235634 943884 11744 11744 132500 73000 205500 41203922 1431474 0.69500 0.79240 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER - 2016 AMOUNT: $ 0. 2017 AMOUNT: $ 132,500. 2018 AMOUNT: $ 73,000. 2019 AMOUNT: $ 0. 2020 AMOUNT: $ 0. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 13770533 421808 14192341 13694534 75999 13770533 13444534 250000 13694534 13364742 79792 13444534 13309740 55002 13364742 0.18000 0.82000 0 0 0 0 0 0 0 ALTERNATIVE INVESTMENTS 21580791 F 21580791 CHARITABLE GIFT ANNUITY 310899 310899 X 13579143 3304857 3304857 10274286 110312 110312 10384598 9338434 0 9338434 110312 110312 9448746 PART V, LINE 4: ENDOWMENT FUNDS ENDOWMENT FUNDS ARE USED TO SUPPORT AOPA FOUNDATION'S MISSION STATEMENT. SEE FORM 990, PART III FOR DETAILED MISSION STATEMENT. PART X, LINE 2: FIN 48 FOOTNOTE THE FOUNDATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS "MORE-LIKELY-THAN-NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. THE FOUNDATION IS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (THE "CODE") SECTION 501(C)(3), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. THE FOUNDATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS, TO IDENTIFY AND REPORT UNRELATED INCOME, TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS, AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE FOUNDATION HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 7908974 0 0 0 0 0 0 7908974 0 7908974 1 0 1 0 1 0 PART III ACCOUNTING METHOD: X X X X 1 CHAPMAN CUBINE AND HUSSEY INC 2000 15TH ST N STE 550 ARLINGTON VA 22201 ADVISOR 0 0 187740 -187740 187740 -187740 AL AK AR CA CO CT FL GA HI IL KS KY ME MD MA MI MN MS NV NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI SCHEDULE G, PART I, LINE 2B, COLUMN (V) DEVELOPMENT FOR THE AOPA FOUNDATION'S DIRECT RESPONSE CAMPAIGNS. THIS INCLUDES CREATIVE PACKAGE TESTING, MESSAGE TESTING AND MAIL PLAN OPTIMIZATION. 1 AIRCRAFT OWNERS & PILOTS ASSOCIATION 421 AVIATION WAY FREDERICK MD 21701 520636210 501(C)(4) 5532565 GROW PILOT POPULATION AIRCRAFT OWNERS & PILOTS ASSOCIATION 421 AVIATION WAY FREDERICK MD 21701 520636210 501(C)(4) 625000 SAFETY SUPPORT AIRCRAFT OWNERS & PILOTS ASSOCIATION 421 AVIATION WAY FREDERICK MD 21701 520636210 501(C)(4) 285000 AIRPORT SUPPORT AIRCRAFT OWNERS & PILOTS ASSOCIATION 421 AVIATION WAY FREDERICK MD 21701 520636210 501(C)(4) 57435 FMV AIRCRAFT GROW PILOT POPULATION 0 1 PART I, LINE 2: THE AOPA FOUNDATION (FOUNDATION) HAS WRITTEN PROCEDURES FOR REQUESTING FUNDING. THE REQUEST FOR FUNDING MUST CONFORM TO, AND FOSTER THE PURPOSES SET FORTH IN THE FOUNDATION'S ARTICLES OF INCORPORATION. ALL ORGANIZATIONS AWARDED GRANTS BY THE FOUNDATION MUST COMPLETE AND RETURN, UPON COMPLETION OF THE PROJECT, A FINAL REPORT DETAILING AND ACCOUNTING FOR HOW THE GRANT FUNDS WERE SPENT. GRANT FUNDS MAY ONLY BE SPENT IN FURTHERANCE OF THE PROJECT DOCUMENTED ON THE GRANT APPLICATION. ANY UNUSED FUNDS MUST BE RETURNED. 0 1 0 0 0 0 0 1 0 MARK R BAKER PRESIDENT/CEO 0 981712 0 500000 0 31432 0 101518 0 13697 0 1628359 0 0 JUSTINE A HARRISON SVP - GENERAL COUNSEL FROM 8/2019 0 362769 0 40350 0 25129 0 20275 0 7176 0 455699 0 0 GREGORY L COHEN SVP - ADMINISTRATION 0 256059 0 78530 0 495 0 20546 0 17015 0 372645 0 0 ERICA J SACCOIA SVP - FINANCE 0 248168 0 68967 0 782 0 20000 0 8132 0 346049 0 0 MELISSA K RUDINGER EXECUTIVE DIRECTOR 224353 0 37734 0 2006 0 18337 0 12326 0 294756 0 0 0 KENNETH M MEAD EVP - GENERAL COUNSEL TO 12/2019 0 96622 0 172800 0 972 0 1346 0 0 0 271740 0 0 PART I, LINE 4B: NONQUALIFIED RETIREMENT PLAN MARK BAKER PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED 457(F) PLAN, WHICH IS INCLUDED IN PART II, COLUMN C. THE 2020 CONTRIBUTION TO THIS PLAN WAS $80,000. PART I, LINE 7: NONFIXED PAYMENTS TARGET INCENTIVE AMOUNTS, AS A PERCENTAGE OF BASE SALARY, ARE ESTABLISHED BASED ON THE PARTICIPANT'S POSITION. THE ACTUAL BONUS PAID IS PROPOSED BY THE EXECUTIVE MANAGEMENT TEAM AND THE PRESIDENT BASED ON THEIR ASSESSMENT OF THE PARTICIPANT'S INDIVIDUAL PERFORMANCE AND THAT OF THE ORGANIZATION AGAINST PRE-ESTABLISHED GOALS. THE BOARD OF TRUSTEES AND COMPENSATION COMMITTEE REVIEW AND MAKE A FINAL DETERMINATION AS TO THE ACTUAL BONUS AMOUNT PAID TO PARTICIPANTS. NONE OF THE PERSONS MENTIONED ABOVE PARTICIPATE IN THE DELIBERATION OF THEIR COMPENSATION ARRANGEMENT. THE DELIBERATIONS AND DECISIONS OF THESE COMPENSATION ARRANGEMENTS ARE MAINTAINED IN CONTEMPORANEOUS DOCUMENTATION WITH OUR HUMAN RESOURCES DEPARTMENT. THE FOUNDATION DOES NOT COMPENSATE ANY OF ITS OFFICERS. THESE INDIVIDUALS ARE COMPENSATED BY A RELATED ORGANIZATION. PART II: COMPENSATION INFORMATION AOPA FOUNDATION USES THE SERVICES OF AIRCRAFT OWNERS & PILOTS ASSOCIATION'S HUMAN RESOURCES DEPARTMENT IN ORDER TO DETERMINE REASONABLE COMPENSATION OF ITS EMPLOYEES. THE COMPENSATION LEVELS AND SALARY RANGES FOR CERTAIN EMPLOYEES OF THE ORGANIZATION ARE ESTABLISHED BASED ON COMPETITIVE MARKET DATA OBTAINED THROUGH PERIODIC SALARY SURVEYS PERFORMED BY OUTSIDE COMPENSATION EXPERTS ENGAGED BY THE ORGANIZATION. THESE SURVEYS PROVIDE GUIDANCE FOR ESTABLISHING REASONABLE COMPENSATION RATES AS COMPARED TO COMPENSATION PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR POSITIONS OF SIMILAR SCOPE OF RESPONSIBILITY. ALL POSITIONS ARE EVALUATED AND PLACED IN THE APPROPRIATE GRADES/SALARY RANGES. AN INDIVIDUAL EMPLOYEE'S SALARY, WITHIN THEIR ASSIGNED RANGE, VARIES DEPENDING PRIMARILY UPON EXPERIENCE AND PERFORMANCE. THE ORGANIZATION HAS ADOPTED A "PAY FOR PERFORMANCE" PHILOSOPHY ALLOWING MANAGERS TO AWARD MERIT INCREASES BASED ON AN INDIVIDUAL'S PERFORMANCE AGAINST PRE-ESTABLISHED GOALS. THE ORGANIZATION'S ANNUAL MERIT INCREASE BUDGET IS APPROVED BY THE BOARD OF TRUSTEES BASED ON MARKET SURVEYS. CERTAIN EMPLOYEES ALSO PARTICIPATE IN THE ORGANIZATION'S INCENTIVE PAY PROGRAM. X 3 166435 SELLING PRICE X 24 401792 FMV 3 0 1 1 PART I, COLUMN (B): NUMBER OF CONTRIBUTIONS THE ORGANISATION IS REPORTING THE NUMBER OF CONTRIBUTIONS IN COLUMN (B). PART I, LINE 32B: AIRCRAFT SALES BROKER THE AOPA FOUNDATION, INC. USES A BROKER SPECIALIZING IN AIRCRAFT SALES TO SELL DONATED AIRCRAFT. THE BROKER IS RESPONSIBLE FOR ADVERTISING AND PLACING LISTINGS TO ALLOW MAXIMUM EXPOSURE AND TO EXPEDITE THE SALE. FORM, PART I, LINE 1: ORGANIZATION MISSION AFI WORKS TO IMPROVE AVIATION SAFETY, PRESERVE COMMUNITY AIRPORTS, AND ENCOURAGE LEARNING TO FLY FOR CAREER AND PERSONAL BENEFIT. FORM, PART III, LINE 1: ORGANIZATION'S MISSION TO PROMOTE, ADVANCE AND ENCOURAGE AVIATION AND AIRPORT SAFETY AND SECURITY AND THE RESEARCH AND TESTING IN THE SUPPORT THEREOF; TO EDUCATE THE PUBLIC AND USERS OF THE NATIONAL AIR TRANSPORTATION SYSTEM TO THE VALUE AND IMPORTANCE OF GENERAL AVIATION TO THE NATIONAL AIR TRANSPORTATION SYSTEM; TO ENCOURAGE AND SUPPORT THE FLIGHT TRAINING OF PILOTS TO ASSURE THE FUTURE OF GENERAL AVIATION AS AN IMPORTANT COMPONENT OF THE NATIONAL AIR SYSTEM; TO LESSEN THE BURDENS OF FEDERAL, STATE AND LOCAL GOVERNMENTS IN CONNECTION WITH THE MAINTENANCE AND ADVANCEMENT OF GENERAL AVIATION, AND AVIATION AND AIRPORT SAFETY AND SECURITY; AND TO ASSIST OTHER CHARITABLE AND OTHER ORGANIZATIONS IN THE CONDUCT OF SIMILAR ACTIVITIES TO THE EXTENT THAT SUCH ACTIVITIES ARE IN THE FURTHERANCE OF CHARITABLE, EDUCATIONAL AND/OR SCIENTIFIC PURPOSES. FORM, PART III, LINE 4A: PROGRAM SERVICE ACCOMPLISHMENTS THE AOPA FOUNDATION (THE FOUNDATION) IS A TAX-EXEMPT CHARITABLE, EDUCATIONAL, AND SCIENTIFIC ORGANIZATION THAT EDUCATES THE PUBLIC ABOUT THE VALUE OF GENERAL AVIATION. OUR MISSION IS TO ENSURE THE FUTURE OF GENERAL AVIATION BY IMPROVING SAFETY THROUGH THE AIRCRAFT OWNERS AND PILOTS ASSOCIATION'S (AOPA) AIR SAFETY INSTITUTE, PRESERVING COMMUNITY AIRPORTS, AND ENCOURAGING LEARNING TO FLY FOR CAREER AND PERSONAL BENEFIT. FOUNDATION GRANTS DURING 2020, THE AOPA FOUNDATION GRANTED $6,500,000 TO VARIOUS PROJECTS IN SUPPORT OF ITS MISSION. THE FOUNDATION PROVIDED $5,590,000 TO AOPA TO SUPPORT COORDINATED PROGRAMS DESIGNED TO STRENGTHEN THE PILOT COMMUNITY. THIS INCLUDED AOPA'S YOU CAN FLY PROGRAM WHICH IS A SET OF INITIATIVES DESIGNED TO GET PEOPLE FLYING AND KEEP THEM FLYING. WITH INITIATIVES TO INTRODUCE HIGH SCHOOL STUDENTS TO CAREER OPPORTUNITIES IN AVIATION AND AEROSPACE, PROVIDE SUPPORT FOR FLIGHT SCHOOLS AND STUDENTS, DELIVER TOOLS AND RESOURCES TO HELP PILOTS CREATE AND GROW FLYING CLUBS, AND HELP LAPSED PILOTS GET BACK IN THE AIR, YOU CAN FLY IS SUPPORTING AVIATORS AT EVERY STAGE OF THEIR JOURNEY. THE GRANT PROVIDED TO AOPA ENABLED IT TO DEVELOP AND DELIVER A FREE FOUR-YEAR AVIATION STEM CURRICULUM TO THOUSANDS OF HIGH SCHOOL STUDENTS NATIONWIDE AND AWARD $1 MILLION IN SCHOLARSHIPS ANNUALLY TO HIGH SCHOOL TEACHERS AND STUDENTS TO HELP THEM EARN A PILOT CERTIFICATE. IN ADDITION, THE GRANT SUPPORTED AOPA IN DELIVERING TRAINING AND TOOLS DESIGNED TO HELP REDUCE THE FLIGHT SCHOOL DROPOUT RATE BY MAKING TRAINING MORE EFFICIENT, TRANSPARENT, AND CUSTOMER FOCUSED; IN BUILDING A STRONGER COMMUNITY OF AVIATORS THROUGH LAUNCHING AND GROWING FLYING CLUBS; AND IN DELIVERING IN-PERSON SEMINARS AND ONLINE WEBINARS THAT GIVE PILOTS THREE HOURS OF GROUND TRAINING THAT FULFILLS THE FAA'S FLIGHT REVIEW REQUIREMENTS FOR GROUND INSTRUCTION FOR LAPSED PILOTS WHO WANT TO RETURN TO FLYING. THE FOUNDATION PROVIDED A $285,000 GRANT TO SUPPORT THE AOPA AIRPORT SUPPORT NETWORK. THE AIRPORT SUPPORT NETWORK IS A GROUP OF NEARLY 1,840 VOLUNTEERS TASKED WITH PROMOTING, PROTECTING, AND DEFENDING AMERICA'S COMMUNITY AIRPORTS FROM PRESSURES MOUNTING AGAINST SUCH AIRPORTS. THE FOUNDATION PROVIDED A $625,000 GRANT TO SUPPORT AOPA'S AIR SAFETY INSTITUTE (ASI). ASI SERVES ALL PILOTS BY PROVIDING FREE OR LOW-COST EDUCATION PROGRAMS TO PILOTS AND FLIGHT INSTRUCTORS NATIONWIDE, ANALYZING SAFETY DATA, AND CONDUCTING SAFETY RESEARCH. AS A RESULT OF THE GRANT, ASI'S MATERIAL WAS ACCESSED MORE THAN 12 MILLION TIMES, REACHING A NEW RECORD. THIS WAS MADE POSSIBLE IN PART BY THE RELEASE OF 76 NEW PRODUCTS INCLUDING VIDEOS, PODCASTS, PUBLICATIONS, AND THE DELIVERY OF PRE-COVID SEMINARS FOLLOWED BY MONTHLY WEBINARS TO MORE THAN 10,000 PILOTS AND AVIATION ENTHUSIASTS. ASI ALSO DEVELOPED A NEW SCALABLE SAFETY FRAMEWORK TO HELP FLYING CLUBS AND GROUPS DEVELOP A STRONG SAFETY CULTURE. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIPS THERE ARE TWO TRUSTEES (MR. TRIMBLE AND MR. CRATE) WHO HAVE A BUSINESS RELATIONSHIP OUTSIDE OF AFI. THESE TWO TRUSTEES ARE PARTNERS IN THE SAME COMPANY. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS THE AOPA FOUNDATION'S BYLAWS STATE THE MEMBERS SHALL BE THOSE PERSONS WHO, FROM TIME TO TIME, CONSTITUTE THE BOARD OF TRUSTEES OF AIRCRAFT OWNERS & PILOTS ASSOCIATION, A NON PROFIT NEW JERSEY CORPORATION. WHENEVER ANY PERSON SHALL CEASE TO BE A MEMBER OF THE BOARD OF TRUSTEES OF SAID ASSOCIATION, FOR ANY REASON, HE SHALL CONTEMPORANEOUSLY CEASE TO BE A MEMBER OF THIS FOUNDATION, AND HIS SUCCESSOR UPON THE BOARD OF TRUSTEES OF SAID ASSOCIATION SHALL FORTHWITH BECOME A MEMBER OF THIS FOUNDATION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS IN CONJUNCTION WITH GRANT THORNTON LLP TAX SPECIALISTS, AOPA FOUNDATION MANAGEMENT REVIEWS THE FORM 990 WITH THE AUDIT COMMITTEE PRIOR TO PRESENTING THE RETURN TO OUR BOARD OF TRUSTEES FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY THE AOPA FOUNDATION'S BOARD IS PROVIDED A WRITTEN "CODE OF ETHICS, CONFLICT OF INTEREST QUESTIONNAIRE AND DISCLOSURE FORM" ("FORM"). THE FORM REQUIRES PERSONS COVERED (OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES) TO ANNUALLY DISCLOSE AND UPDATE THE FORM AND PROVIDE TO LEGAL COUNSEL INTERESTS THAT COULD GIVE RISE TO CONFLICT(S). LEGAL COUNSEL REVIEWS THE ANNUAL DISCLOSURES BY ALL COVERED PERSONS. DISCLOSURES ARE REGULARLY MONITORED BY COUNSEL, ANY POTENTIALLY CONFLICTING OR OTHERWISE QUESTIONABLE RESPONSES ARE FLAGGED AND THE ETHICS POLICY IS ENFORCED. FORM 990, PART VI, SECTION B, LINE 15 PROCESS FOR DETERMINING COMPENSATION THE COMPENSATION FOR THE PRESIDENT IS SET BY THE BOARD OF TRUSTEES AND COMPENSATION COMMITTEE. THE BASE SALARY FOR THIS POSITION MAY BE ADJUSTED BY THE BOARD FROM TIME TO TIME AT ITS SOLE DISCRETION. THE PRESIDENT IS ALSO CONSIDERED ANNUALLY BY THE BOARD FOR AN INCENTIVE BONUS WHICH IS A TARGET PERCENT OF BASE SALARY. THE ACTUAL BONUS PAID IS DETERMINED BY THE BOARD BASED ON ITS ASSESSMENT OF THE PRESIDENT'S PERFORMANCE AND THAT OF THE ORGANIZATION AGAINST APPROPRIATE GOALS SET BY THE COMPENSATION, ORGANIZATION, AND HUMAN RESOURCES COMMITTEE AND THE PRESIDENT. PERIODIC INDEPENDENT REVIEWS OF THE PRESIDENT'S COMPENSATION ARE CONDUCTED BY OUTSIDE COMPENSATION EXPERTS TO ENSURE THAT THE COMPENSATION PAID IS REASONABLE BASED ON APPROPRIATE DATA AS TO COMPARABILITY OF COMPENSATION PAID BY SIMILAR ORGANIZATIONS FOR POSITIONS OF SIMILAR SCOPE OF RESPONSIBILITY. THE COMPENSATION LEVELS AND SALARY RANGES FOR OFFICERS AND CERTAIN EMPLOYEES OF THE ORGANIZATION ARE ESTABLISHED BASED ON COMPETITIVE MARKET DATA OBTAINED THROUGH PERIODIC SALARY SURVEYS PERFORMED BY OUTSIDE COMPENSATION EXPERTS ENGAGED BY THE ORGANIZATION. THESE SURVEYS PROVIDE GUIDANCE FOR ESTABLISHING REASONABLE COMPENSATION RATES AS COMPARED TO COMPENSATION PAID BY SIMILARLY SITUATED ORGANIZATIONS FOR POSITIONS OF SIMILAR SCOPE OF RESPONSIBILITY. ALL POSITIONS ARE EVALUATED AND PLACED IN THE APPROPRIATE GRADES/SALARY RANGES. AN INDIVIDUAL EMPLOYEE'S SALARY, WITHIN THEIR ASSIGNED RANGE, VARIES DEPENDING PRIMARILY UPON EXPERIENCE AND PERFORMANCE. THE ORGANIZATION HAS ADOPTED A "PAY FOR PERFORMANCE" PHILOSOPHY ALLOWING MANAGERS TO AWARD MERIT INCREASES BASED ON AN INDIVIDUAL'S PERFORMANCE AGAINST PRE-ESTABLISHED GOALS. THE ORGANIZATION'S ANNUAL MERIT INCREASE BUDGET IS APPROVED BY THE BOARD OF TRUSTEES BASED ON MARKET SURVEYS. OFFICERS AND CERTAIN EMPLOYEES ALSO PARTICIPATE IN THE ORGANIZATION'S INCENTIVE PAY PROGRAM. TARGET INCENTIVE PAY AMOUNTS, AS A PERCENTAGE OF BASE SALARY, ARE ESTABLISHED BASED ON THE PARTICIPANT'S POSITION. THEACTUAL INCENTIVE PAY AWARDED IS PROPOSED BY THE EXECUTIVE MANAGEMENT TEAM AND THE PRESIDENT BASED ON THEIR ASSESSMENT OF THE PARTICIPANT'S INDIVIDUAL PERFORMANCE AND THAT OF THE ORGANIZATION AGAINST PRE-ESTABLISHED GOALS. THE BOARD OF TRUSTEES AND COMPENSATION COMMITTEE REVIEW AND MAKE A FINAL DETERMINATION AS TO THE ACTUAL INCENTIVE AWARDS PAID TO PARTICIPANTS. NONE OF THE PERSONS MENTIONED ABOVE PARTICIPATE IN THE DELIBERATION OF THEIR COMPENSATION ARRANGEMENT AND RECUSE THEMSELVES FROM ALL OTHER DELIBERATIONS AND DISCUSSIONS RELATED TO A MATTER IN WHICH THEY MAY HAVE AN INTEREST. THE DELIBERATIONS AND DECISIONS OF THESE COMPENSATION ARRANGEMENTS ARE MAINTAINED IN CONTEMPORANEOUS DOCUMENTATION WITH OUR HUMAN RESOURCES DEPARTMENT. AFI DID NOT COMPENSATE ANY CEO, OFFICERS, AND/OR KEY EMPLOYEES DURING THE YEAR, AS A RESULT, DID NOT HAVE A PROCESS IN PLACE FOR DETERMINING COMPENSATION FOR THOSE AFOREMENTIONED POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC THE ORGANIZATION DOES MAKE AVAILABLE ITS CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS, FORM 990 RETURNS, AND FORM 1023 TO THE GENERAL PUBLIC. THE ORGANIZATION MAKES AVAILABLE ITS GOVERNING DOCUMENTS TO THE EXTENT REQUIRED BY LAW. THE PUBLIC CAN RECEIVE COPIES BY CONTACTING THE ORGANIZATION'S HEADQUARTERS. COPIES OF THE RETURNS CAN BE OBTAINED AT WWW.AOPA.ORG/ABOUT-AOPA/GOVERNANCE AND OTHER PUBLIC SITES. FORM 990, PART VII, SECTION A, COLUMN B: HOURS WORKED FOR THE AOPA FOUNDATION, INC. MARK BAKER, GREG COHEN, JUSTINE HARRISON, AND ERICA SACCOIA ARE FULL-TIME EMPLOYEES OF AIRCRAFT OWNERS & PILOTS ASSOCIATION (AOPA), A RELATED, SECTION 501(C)(4) ORGANIZATION (EIN 52-0636210), ALTHOUGH THEY DEVOTE APPROXIMATELY TEN HOURS PER WEEK TO THE RELATED 501(C)(3) PUBLIC CHARITY ORGANIZATION: THE AOPA FOUNDATION, INC. AIRCRAFT OWNERS & PILOTS ASSOCIATION 421 AVIATION WAY FREDERICK MD 21701 520636210 MEMBERSHIP NJ 501(C)(4) N/A N/A 0 AOPA POLITICAL ACTION COMMITTEE 421 AVIATION WAY FREDERICK MD 21701 563014117 PAC DC 527 N/A AOPA 0 AOPA INSURANCE AGENCY 421 AVIATION WAY FREDERICK MD 21701 521813554 INSURANCE MD AHC C 0 AOPA HOLDINGS CORPORATION 421 AVIATION WAY FREDERICK MD 21701 461036265 HOLDINGS COMP DE AOPA C 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 1 AIRCRAFT OWNERS & PILOTS ASSOCIATION B 6500000 FMV AIRCRAFT OWNERS & PILOTS ASSOCIATION M 210330 FMV AIRCRAFT OWNERS & PILOTS ASSOCIATION N 386790 FMV AIRCRAFT OWNERS & PILOTS ASSOCIATION P 1221242 FMV AOPA HOLDINGS CORPORATION M 75000 FMV AIRCRAFT OWNERS & PILOTS ASSOCIATION S 83527 FMV