2021-04-22T09:31:43-05:00 2020-07-31 861065772 DELOITTE TAX LLP 695 TOWN CENTER DRIVE SUITE 1200 COSTA MESA CA 92626 990 2019-08-01 261447714 GRAMMY MUSEUM FOUNDATION INC GRAM 2137656800 888 SOUTH FIGUEROA STREET NO 600 LOS ANGELES CA 90017 MICHAEL STICKA PRESIDENT 2137656800 2021-04-08 1 JESSICA KARANTONIS P00969387 7144367100 2019 2022-09-23 18:48:47Z MICHAEL STICKA 888 SOUTH FIGUEROA STREET NO 600 LOS ANGELES CA 90017 19895208 0 X WWW.GRAMMYMUSEUM.ORG X 2007 CA THE GRAMMY MUSEUM CELEBRATES THE LEGACY OF MUSIC, THE RECORDING PROCESS, AND THE GRAMMY AWARDS. 22 22 60 24 0 0 9870921 10034649 5131087 3422576 369359 148417 615652 453066 15987019 14058708 428455 276000 0 0 5938861 6273421 0 0 1586220 10619445 9833027 16986761 16382448 -999742 -2323740 21393794 20528171 7503137 8920430 13890657 11607741 X THE GRAMMY MUSEUM EXPLORES AND CELEBRATES THE ENDURING LEGACIES OF ALL FORMS OF MUSIC, THE CREATIVE PROCESS, THE ART AND TECHNOLOGY OF THE RECORDING PROCESS, AND THE HISTORY OF THE GRAMMY AWARDS, THE PREMIER RECOGNITION OF RECORDED MUSIC ACCOMPLISHMENT. 0 0 6164624 486452 GENERAL ADMISSIONS: MAINTAINING AND OPERATING THE GRAMMY MUSEUM TO PROVIDE A ONE-OF-A-KIND EXPERIENCE FOR THE PUBLIC THAT PROMOTES THE CREATIVE PROCESS, THE HISTORY OF MUSIC AND THE GRAMMY AWARDS, AS WELL AS CULTURAL UNDERSTANDING. 3430332 2453378 CURATORIAL SERVICES: SERVICES PROVIDED ON SETTING UP AND MAINTAINING TRAVELING EXHIBITS, WHICH WERE CONSTRUCTED FOR THE GRAMMY MUSEUM DURING THE YEAR OR A PRIOR PERIOD, AND THEN TRANSPORTED TO AND SET-UP TEMPORARILY IN ANOTHER MUSEUM-TYPE LOCATION. SERVICES ALSO PROVIDED IN ASSISTING THIRD PARTIES IN PROMOTING MUSIC EDUCATION AND DEVELOPMENT OUTSIDE THE GRAMMY MUSEUM'S LOCATION IN LOS ANGELES, CALIFORNIA. 2774401 276000 1295672 PUBLIC PROGRAMS AND EDUCATION: THE GRAMMY MUSEUM HOSTS A WIDE RANGE OF PUBLIC PROGRAMS IN THE MUSEUM'S SOUND STAGE THEATRE AND THROUGHOUT THE LA LIVE CAMPUS, WHERE THE GRAMMY MUSEUM IS LOCATED. PROGRAMS INCLUDE ARTISTS INTERVIEWS, LIVE PERFORMANCES, FILM SERIES, LECTURES, ARTIST-IN-RESIDENCE PROGRAMS, CONTINUING EDUCATION CLASSES, TOWN HALL MEETINGS, SPECIAL CONCERT SERIES, RECORD LABEL SHOWCASES, AND CURATORIAL-RELATED PROGRAMS. ALL PROGRAMS ARE RECORDED FOR ARCHIVAL PURPOSES TO SHARE WITH THE PUBLIC. THE GOAL OF THE GRAMMY MUSEUM'S EDUCATION PROGRAM IS TO EDUCATE AND INSPIRE, THROUGH EXPOSURE TO ALL MUSIC AND THE CREATIVE PROCESS, ALL VISITORS BUT MOST SPECIFICALLY SCHOOL GROUPS AND FAMILIES. THE PROGRAMS INCLUDE TEACHER WORKSHOPS, MUSEUM TOURS, SEMINARS, SYMPOSIA, MASTER MUSIC CLASSES, MENTORING PROGRAMS, MUSIC FORUMS, SCHOOL OUTREACH AND MUSICAL DEMONSTRATIONS, CAMPS, AND SATURDAY FAMILY PROGRAMS. 12369357 1 1 0 0 0 0 0 1 0 1 1 0 0 1 1 0 1 0 0 0 1 1 0 0 0 0 0 1 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 152 0 1 60 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 22 22 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X HILARY FAHLSING 3105818624 888 SOUTH FIGUEROA STREET SUITE 600 LOS ANGELES CA 90017 X ROBERT SANTELLI FOUNDING EXECUTIVE DIRECTOR 40.00 0.00 X 426431 0 35701 MICHAEL STICKA EXECUTIVE DIRECTOR 40.00 0.00 X 377170 0 24280 RITA GEORGE CHIEF OPERATING OFFICER 40.00 0.00 X 330388 0 21786 DAVID SEARS EXECUTIVE EDUCATION DIRECTOR 40.00 0.00 X 183997 0 26594 SCOTT GOLDMAN ART DIRECTOR 40.00 0.00 X 169437 0 24286 JOHN MORRISON DIRECTOR OF DEVELOPMENT 40.00 0.00 X 152609 0 40164 HILARY FAHLSING VP, FINANCE & ADMIN/CFO (BEG 6/30) 40.00 0.00 X 126234 0 46967 LYNNE OKIN DIRECTOR, PUBLIC PROGRAMS 40.00 0.00 X 148994 0 20920 WAYNE ZAHNER CFO (THRU 6/30/20) 8.00 0.00 X 0 0 0 CHARLES ORTNER SECRETARY 0.20 0.00 X X 0 0 0 DAN BECKERMAN VICE CHAIR 0.20 0.00 X X 0 0 0 DEBORAH SZULANSKY CHAIR (THRU JAN 2020) 0.20 0.00 X X 0 0 0 HARVEY MASON JR CHAIR (BEG JAN 2020) 0.20 0.00 X X 0 0 0 MICHAL KATZ TREASURER 0.20 0.00 X X 0 0 0 TED FIKRE ASSISTANT SECRETARY 0.20 0.00 X X 0 0 0 ANDRA LIEMANDT BOARD MEMBER 0.20 0.00 X 0 0 0 BRANDEN CHAPMAN BOARD MEMBER 0.20 0.00 X 0 0 0 BRIAN HOESTEREY BOARD MEMBER 0.20 0.00 X 0 0 0 BRIAN SHETH BOARD MEMBER 0.20 0.00 X 0 0 0 CAROLYN POWERS BOARD MEMBER 0.20 0.00 X 0 0 0 GISELLE FERNANDEZ BOARD MEMBER 0.20 0.00 X 0 0 0 JAMES JIMMY JAM HARRIS BOARD MEMBER 0.20 0.00 X 0 0 0 JAY MARCIANO BOARD MEMBER 0.20 0.00 X 0 0 0 JOEL KATZ BOARD MEMBER 0.20 0.00 X 0 0 0 JOHN BRANCA BOARD MEMBER 0.20 0.00 X 0 0 0 JOHN BURK BOARD MEMBER 0.20 0.00 X 0 0 0 KEN EHRLICH BOARD MEMBER 0.20 0.00 X 0 0 0 MATTIE MCFADDEN-LAWSON BOARD MEMBER 0.20 0.00 X 0 0 0 PAMELA ALEXANDER BOARD MEMBER 0.20 0.00 X 0 0 0 TERRY LICKONA BOARD MEMBER 0.20 0.00 X 0 0 0 TIM BUCHER BOARD MEMBER 0.20 0.00 X 0 0 0 TODD GOLDSTEIN BOARD MEMBER 0.20 0.00 X 0 0 0 1915260 0 240698 12 0 1 0 IPR SERVICES 954 APPALACHIAN CLAREMONT CA 91711 EXHIBIT DESIGN AND BUILD 422791 DELOITTE & TOUCHE LLP 555 WEST 5TH STREET SUITE 2700 LOS ANGELES CA 900131010 ACCOUNTING SERVICES 158000 2 301247 9733402 7124 10034649 CURATORIAL SERVICES 900099 2453378 2453378 GENERAL ADMISSION 900099 486452 486452 PUBLIC PROGRAMS 900099 335166 335166 EDUCATION REVENUE 900099 147580 147580 3422576 284496 284496 284240 122828 161412 161412 161412 5462429 5598508 -136079 -136079 -136079 224710 115164 109546 109546 OTHER INCOME 900099 182108 182108 182108 14058708 3714230 0 309829 206500 206500 29500 29500 40000 40000 2133679 1394456 533001 206222 4139742 3232450 526692 380600 177954 27855 85279 64820 95950 95950 606876 362703 182923 61250 322853 300384 3999 18470 541281 402743 34808 103730 407837 248678 47149 112010 2041750 1575296 466454 211496 163874 35198 12424 15742 15742 315200 18105 92100 204995 1040879 918299 81720 40860 164221 54871 109266 84 EXHIBIT & COLLECTION 2459962 2459962 REPAIRS & MAINTENANCE 765609 756354 8700 555 SPONSORSHIP FULFILLMENT 335143 335143 OTHER EXPENSES 330274 177327 107890 45057 16382448 12369357 2426871 1586220 1735063 2160780 387225 808562 1382056 544942 33927 48162 63261 94702 23907743 16213797 6713690 7693946 6999450 5082183 4079122 4094894 21393794 20528171 404653 126985 556827 972537 6541657 7820908 7503137 8920430 X 7797147 5279963 6093510 6327778 13890657 11607741 21393794 20528171 -2323740 40823 0 X 0 1 X 1 0 X 5591578 17589903 8155589 9870921 10034649 51242640 5591578 17589903 8155589 9870921 10034649 51242640 16627638 34615002 334425 722440 610142 768269 568736 3004012 118219 143243 90746 286687 182108 821003 55067655 27034813 0.62860 0.73660 X PART II, SHORT YEAR EXPLANATION: THE MUSEUM CHANGED FROM A CALENDAR YEAR-END TO JULY 31 FISCAL YEAR-END DURING 2017. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3775147 X X 0 5624170 167608 540001 40641 5211136 5770725 156618 260820 42353 5624170 125037 5316056 378977 49345 5770725 125037 125037 125037 125037 1.00000 0 0 13447419 7553367 5894052 10460324 8660430 1799894 7693946 MEMORIBILIA 3775147 EXECUTIVE COMPENSATION PROGRAM ASSET 319747 4094894 AFFILIATE PAYABLES 2451395 EXECUTIVE COMPENSATION PROGRAM 319747 DEFERRED RENT 2618433 ACCRUED LIABILITIES 994833 LINE OF CREDIT 500000 PAYCHECK PROTECTION PROGRAM LOAN 936500 7820908 X 14418419 40823 80896 237992 359711 14058708 0 14058708 16701336 80896 237992 318888 16382448 0 16382448 PART III, LINE 1A: ALL MEMORABILIA AND EXHIBITS ARE PRESENTED ON THE BALANCE SHEET. PART III, LINE 4: THE GRAMMY MUSEUM BOASTS FOUR FLOORS OF EXHIBIT SPACE THAT OFFER VISITORS ONE-OF-A-KIND EXPERIENCE THROUGH CONTENT-RICH INTERACTIVES, FILMS, OVERSIZE IMAGERY, ARTIFACTS, THE GRAMMY ARCHIVES AND HALL OF FAME. THE MUSEUM ALSO HAS A SOUND STAGE/THEATRE WHERE IT OFFERS OPPORTUNITIES FOR VISITORS TO MEET MUSIC ARTISTS FROM A BROAD RANGE OF GENRES AND ERAS. THE VISITORS WILL ALSO HAVE AN OPPORTUNITY TO LEARN ABOUT THE ART AND TECHNOLOGY OF THE RECORDING PROCESS THROUGH AN ARRAY OF EXHIBITS AND INTERACTIVE EXPERIENCES. THE MUSEUM ALSO HAS SPECIAL EXHIBITS THAT FEATURE CERTAIN ARTISTS SUCH AS THE BEATLES, FRANK SINATRA, BOB MARLEY, JOHN LEE HOOKER AND LEONARD BERNSTEIN. PART V, LINE 4: INVESTMENT FUND SET UP BY FOUNDATION IN WHICH REGULAR WITHDRAWALS FROM THE INVESTED CAPITAL ARE TO BE USED FOR ONGOING OPERATIONS AND OTHER SPECIFIED PURPOSES AS DETERMINED BY THE MUSEUM. PART X, LINE 2: THE MUSEUM IS INCORPORATED AS A NONPROFIT PUBLIC CHARITY PURSUANT TO INTERNAL REVENUE CODE SECTION 501(C)(3) AND CORRESPONDING STATE PROVISIONS. THE MUSEUM IS GENERALLY EXEMPT FROM FEDERAL AND STATE INCOME TAXES. THE MUSEUM ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH FASB ASC 740, INCOME TAXES. ASC 740 PRESCRIBES A COMPREHENSIVE MODEL FOR HOW AN ENTITY SHOULD RECOGNIZE, MEASURE, PRESENT, AND DISCLOSE IN ITS FINANCIAL STATEMENTS UNCERTAIN TAX POSITIONS THAT THE ENTITY HAS TAKEN, OR EXPECTS TO TAKE, ON A TAX RETURN. DURING THE YEARS ENDED JULY 31, 2020 AND 2019, THE MUSEUM DID NOT RECORD ANY LIABILITY FOR UNRECOGNIZED TAX BENEFITS. AS OF JULY 31, 2020 AND 2019, TAX YEARS 2015 AND FORWARD ARE SUBJECT TO EXAMINATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: INVENTORY COST OF GOODS SOLD 115,164. RENTAL EXPENSE 122,828. PART XII, LINE 2D - OTHER ADJUSTMENTS: INVENTORY COST OF GOODS SOLD 115,164. RENTAL EXPENSE 122,828. 1 CENTRAL AMERICA AND THE CARIBBEAN 0 PROGRAM SERVICES CURATORIAL SERVICES 2181510 NORTH AMERICA 0 GRANT-MAKING 40000 0 0 0 0 0 0 2221510 0 2221510 NORTH AMERICA SCIENTIFIC RESEARCH GRANT 20000 CHECK NORTH AMERICA SCIENTIFIC RESEARCH GRANT 20000 CHECK 2 0 0 0 0 0 0 PART I, LINE 2: GRANT RECIPIENTS ARE REQUIRED TO PROVIDE A FINAL NARRATIVE REPORT INDICATING HOW THE FUNDS WERE SPENT. PART I, LINE 3: DIRECT EXPENSES PART III ACCOUNTING METHOD: 1 GLENDALE HIGH SCHOOL 1440 E BROADWAY BLVD GLENDALE CA 91205 950775453 GOVERNMENT ENTITY 7500 MUSIC EDUCATION - GENERAL USE JOHN MARSHALL HIGH SCHOOL 3939 TRACY ST LOS ANGELES CA 90027 956001908 GOVERNMENT ENTITY 7500 MUSIC EDUCATION - GENERAL USE BLAIR HIGH AND MIDDLE SCHOOL 1201 S MORENGO AVE PASADENA CA 91106 956002372 GOVERNMENT ENTITY 7500 MUSIC EDUCATION - GENERAL USE CALCASIEU PARISH SCHOOL BOARD 3310 BROAD ST LAKE CHARLES LA 70615 726000235 GOVERNMENT ENTITY 10000 MUSIC EDUCATION - GENERAL USE BERKELEY SOCIETY FOR THE PRESERVATION OF TRADITIONAL MUSIC 2020 ADDISON ST BERKELEY CA 94704 942887073 501(C)(3) 20000 MUSIC PRESERVATION IMPLEMENTATION GRANT THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK PO BOX 9 ALBANY NY 12201 141368361 501(C)(3) 19320 SCIENTIFIC RESEARCH GRANT ROULETTE INTERMEDIUM INC 30 3RD AVE STE 208 BROOKLYN NY 11217 363046751 501(C)(3) 10000 MUSIC PRESERVATION IMPLEMENTATION GRANT SMITHSONIAN FOLKWAYS RECORDINGS 600 MARYLAND AVE SW STE 2001 WASHINGTON DC 20024 530206027 GOVERNMENT ENTITY 20000 MUSIC PRESERVATION IMPLEMENTATION GRANT THE KITCHEN SISTERS PRODUCTIONS 916 KEARNY ST SAN FRANCISCO CA 94133 243369042 501(C)(3) 11461 MUSIC PRESERVATION IMPLEMENTATION GRANT UNIVERSITY OF OREGON 1585 E 13TH AVE EUGENE OR 97403 464727800 GOVERNMENT ENTITY 20000 SCIENTIFIC RESEARCH GRANT MISSOURI STATE UNIVERSITY 901 S NATIONAL AVE SPRINGFIELD MO 65897 446000308 GOVERNMENT ENTITY 18000 MUSIC PRESERVATION IMPLEMENTATION GRANT UNIVERSITY OF PITTSBURGH 4200 FIFTH AVE PITTSBURGH PA 15260 250965591 GOVERNMENT ENTITY 11461 MUSIC PRESERVATION IMPLEMENTATION GRANT THE TRUSTEES OF PRINCETON UNIVERSITY 701 CARNEGIE CTR PRINCETON NJ 08540 210634501 501(C)(3) 19758 SCIENTIFIC RESEARCH GRANT NORWALK HIGH SCHOOL 11356 LEFFINGWELL RD NORWALK CA 90650 956002228 GOVERNMENT ENTITY 7500 MUSIC EDUCATION - GENERAL USE SHADOW MOUNTAIN HIGH SCHOOL 2902 E SHEA BLVD PHOENIX AZ 85028 866005162 GOVERNMENT ENTITY 5500 MUSIC EDUCATION - GENERAL USE PARKROSE HIGH SCHOOL CHOIR 12003 NE SHAVER ST PORTLAND OR 97220 936000833 GOVERNMENT ENTITY 5500 MUSIC EDUCATION - GENERAL USE SCHOOL DISTRICT OF KANSAS CITY MISSOURI 2901 TROOST AVE KANSAS CITY MO 64109 446003108 GOVERNMENT ENTITY 5500 MUSIC EDUCATION - GENERAL USE 17 0 MUSIC EDUCATOR AWARD 25 26500 JANE ORTNER EDUCATION AWARD 1 3000 PART I, LINE 2: AT THE COMPLETION OF THE PROJECT, GRANT RECIPIENTS ARE REQUIRED TO PROVIDE A FINAL NARRATIVE REPORT DETAILING THE PROJECT AND ITS RESULTS AS WELL AS A FINAL BUDGET SHOWING ACTUAL FIGURES AND INDICATING HOW THE MUSEUM'S FUNDS WERE ALLOCATED. X 1 1 X X X X 0 0 0 0 0 0 0 1 0 ROBERT SANTELLI FOUNDING EXECUTIVE DIRECTOR 414823 0 1750 0 9858 0 12500 0 23201 0 462132 0 0 0 MICHAEL STICKA EXECUTIVE DIRECTOR 336934 0 36750 0 3486 0 9500 0 14780 0 401450 0 0 0 RITA GEORGE CHIEF OPERATING OFFICER 324828 0 1750 0 3810 0 9500 0 12286 0 352174 0 0 0 DAVID SEARS EXECUTIVE EDUCATION DIRECTOR 176945 0 1000 0 6052 0 9081 0 17513 0 210591 0 0 0 SCOTT GOLDMAN ART DIRECTOR 162324 0 1000 0 6113 0 12000 0 12286 0 193723 0 0 0 JOHN MORRISON DIRECTOR OF DEVELOPMENT 150849 0 1000 0 760 0 2600 0 37564 0 192773 0 0 0 HILARY FAHLSING VP, FINANCE & ADMIN/CFO (BEG 6/30) 124988 0 1000 0 246 0 9500 0 37467 0 173201 0 0 0 LYNNE OKIN DIRECTOR, PUBLIC PROGRAMS 146972 0 1000 0 1022 0 9500 0 11420 0 169914 0 0 0 PART I, LINE 1A GRAMMY MUSEUM FOUNDATION HAS A WRITTEN POLICY REGARDING FIRST-CLASS TRAVEL. THE TRAVEL POLICY STATES THAT THE MOST COST EFFECTIVE OPTIONS AVAILABLE BASED ON THE TRAVELER'S REQUESTED ITINERARY SHOULD BE MADE. THE PRESIDENT MAY BE PERMITTED FIRST-CLASS TRAVEL IF AUTHORIZED BY THE BOARD. THE PRESIDENT IS REQUIRED TO TRAVEL EXTENSIVELY ON MUSEUM BUSINESS, AND PROVIDING FOR FIRST-CLASS TRAVEL IS CONSIDERED A REASONABLE ACCOMMODATION. IT IS NOT TREATED AS TAXABLE COMPENSATION. PART I, LINE 7 CERTAIN EMPLOYEES WERE EACH COMPENSATED WITH CRITERIA BONUSES BASED UPON SPECIFIC PERFORMANCE GOALS ESTABLISHED AND APPROVED BY THE EMPLOYEE AND THEIR DIRECT SUPERVISOR. IN ADDITION, CERTAIN EMPLOYEES WERE EACH COMPENSATED WITH DISCRETIONARY BONUSES SUBJECT TO THE DISCRETION OF THEIR DIRECT SUPERVISOR. NATIONAL ACADEMY OF RECORDING ARTS AND SCIENCES FOUNDER OPERATING EXPENSES X 2436395 2436395 0 1 1 2436395 NATIONAL ACADEMY OF RECORDING ARTS AND SCIENCES FOUNDER 259607 PERFORMANCE OF GENERAL AND ADMINISTRATIVE SERVICES 0 NATIONAL ACADEMY OF RECORDING ARTS AND SCIENCES FOUNDER 228700 SALE OF GRAMMY TELECAST TICKETS 0 SCH L, PART II NARAS PROVIDES CERTAIN GENERAL AND ADMINISTRATIVE SERVICES TO THE MUSEUM. OPERATING EXPENSES CHARGED TO THE MUSEUM BY NARAS INCLUDE ITEMS, SUCH AS SHARED SALARY EXPENSES, SECURITY, UTILITIES, TAXES AND LICENSES, REPAIR AND MAINTENANCE, OFFICE SUPPLIES, COMPUTER EXPENSES, AND ALLOCATIONS OF GRAMMY.COM EXPENSES. THE EXPENSES ARE ALLOCATED ON THE BASIS OF SQUARE FOOTAGE, NUMBER OF COMPUTERS USED, NUMBER OF ACTIVE WEB PAGES, OR OTHER SUITABLE METHODOLOGIES, WHERE APPROPRIATE. AS OF FISCAL YEAR ENDED JULY 31, 2020, THE OUTSTANDING BALANCE OWED TO NARAS WAS $2,436,395. SCH L, PART IV, SALE OF GRAMMY TELECAST TICKETS: NARAS BILLED THE MUSEUM THE FACE VALUE OF PURCHASED EVENT TICKETS FOR EVENTS HELD BY NARAS. THE FACE VALUE OF EVENT TICKETS PURCHASED BY THE MUSEUM WAS $228,700, THE MAJORITY OF WHICH WAS INCLUDED IN PAYMENTS TO AFFILIATES IN THE STATEMENTS OF FUNCTIONAL EXPENSES. IN GENERAL, THESE TICKETS ARE UTILIZED TO FULFILL OBLIGATIONS RELATED TO THE MUSEUM'S CORPORATE SPONSORSHIPS. FORM 990, PART VI, SECTION A, LINE 2 AS BOARD MEMBERS OF THE RECORDING ACADEMY, HARVEY MASON JR. AND JOHN BURK HAVE AN EMPLOYMENT RELATIONSHIP WITH WAYNE ZAHNER, WHO WAS AN EMPLOYEE OF THE RECORDING ACADEMY DURING THE TAX YEAR. AS BOARD MEMBERS OF THE RECORDING ACADEMY, HARVEY MASON JR. AND JOHN BURK HAVE AN EMPLOYMENT RELATIONSHIP WITH DEBORAH SZULANSKY, WHO WAS AN EMPLOYEE OF THE RECORDING ACADEMY DURING THE TAX YEAR. FORM 990, PART VI, SECTION A, LINE 4 THE BOARD APPROVED AMENDED AND RESTATED BYLAWS ON MAY 13, 2020 THAT SIGNIFICANTLY ALTERED THE GOVERNING STRUCTURE OF THE CORPORATION. THE RESTATED BYLAWS ELIMINATED THE PREVIOUS TWO MEMBERS OF THE CORPORATION (NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. AND L.A. ARENA LAND COMPANY, LLC) IN FAVOR OF A NONMEMBERSHIP BOARD OF DIRECTORS. ADDITIONALLY, THE CHAIR AND VICE CHAIR OF THE BOARD ARE NO LONGER APPOINTED BY THE TWO MEMBERS OF THE CORPORATION BUT ARE INSTEAD VOTED ON BY THE FULL BOARD OF DIRECTORS. THE TREASURER AND SECRETARY OFFICER POSITIONS WERE COMBINED INTO ONE POSITION. THE RESTATED BYLAWS PROVIDE FOR FOUR NEW COMMITTEES OF THE BOARD CREATED BY CHARTER INCLUDING THE FINANCE COMMITTEE, NOMINATING/GOVERNANCE COMMITTEE, DEVELOPMENT COMMITTEE AND COMPENSATION COMMITTEE. THE AMENDED EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIR, VICE CHAIR, SECRETARY/TREASURER, PRESIDENT/CEO OF NARAS AS SPECIFIED DIRECTOR, PRESIDENT/CEO OF ANSCHUTZ ENTERTAINMENT GROUP ("AEG") AS SPECIFIED DIRECTOR, CHAIR OF THE DEVELOPMENT COMMITTEE AND CHAIR OF THE NOMINATING AND GOVERNANCE COMMITTEE. THE RESTATED BYLAWS ALSO CHANGED CERTAIN QUORUM, VOTING RIGHTS AND VOTING APPROVAL REQUIREMENTS, AND INCLUDED ADDITIONAL NON-DELEGABLE POWERS THAT CONFORM TO CALIFORNIA CORPORATIONS LAW. THE BOARD CAN AMEND THE BYLAWS WITH THE FOLLOWING NEW LIMITS: (1) ANY BOARD MEETING TO AMEND THE BYLAWS MUST BE A DULY HELD AND NOTICED MEETING PROVIDING AN EXPLANATION OF THE AMENDMENT, AND (2) SO LONG AS THE NARAS LICENSE AGREEMENT HAS NOT EXPIRED OR BEEN TERMINATED, THE BYLAWS CONCERNING THE NARAS DESIGNATED DIRECTORS CANNOT BE AMENDED WITHOUT NARAS CONSENT. THE RESTATED BYLAWS SUPPORT AND REFLECT THE 2015 CHANGE IN STATUS APPROVED BY THE IRS FROM A SUPPORTING ORGANIZATION TO NARAS TO A STANDALONE PUBLIC CHARITY. FORM 990, PART VI, SECTION B, LINE 11B AFTER THE FORM 990 IS PREPARED, IT IS SUBMITTED TO THE AUDIT COMMITTEE FOR REVIEW. THE BOARD HAS DESIGNATED THE AUDIT COMMITTEE TO REVIEW AND APPROVE THE FILING OF THE TAX RETURN ON ITS BEHALF. AFTER ALL COMMENTS AND QUESTIONS FROM THE AUDIT COMMITTEE HAVE BEEN ADDRESSED AND INCORPORATED, THE AUDIT COMMITTEE APPROVES THE FILING WITH THE IRS. THE FULL BOARD ALSO RECEIVES A COPY OF THE TAX RETURN BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH POWERS DELEGATED BY THE BOARD OF DIRECTORS NEEDS TO SIGN A STATEMENT UPON HIRING OR APPOINTMENT AFFIRMING THAT HE/SHE 1) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, 2) HAS READ AND UNDERSTANDS THE POLICY, 3) HAS AGREED TO COMPLY WITH THE POLICY, AND 4) UNDERSTANDS THAT THE MUSEUM IS A NON-PROFIT ORGANIZATION AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION STATUS, IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OF MORE OF ITS TAX-EXEMPT PURPOSES. PERIODIC REVIEWS ARE CONDUCTED BY THE HUMAN RESOURCES DEPARTMENT TO ENSURE COMPLIANCE WITH THE POLICY. THIS FUNCTION IS PERFORMED BY AEG MUSEUM, LLC AS PART OF ITS OUTSOURCING AGREEMENT WITH GRAMMY MUSEUM FOUNDATION. PERIODICALLY, A CONFLICT OF INTEREST QUESTIONNAIRE IS DISTRIBUTED TO SELECTED EMPLOYEES FOR COMPLETION AND SIGNATURE, AND THEN REVIEWED BY HUMAN RESOURCES. COPIES OF THESE FORMS ARE MAINTAINED BY HUMAN RESOURCES IN PERSONNEL FILES. ANNUALLY, THE CORPORATE SECRETARY DISTRIBUTES THE ANNUAL DISCLOSURE STATEMENT AT A BOARD MEETING. THE STATEMENTS ARE COLLECTED BY THE CORPORATE SECRETARY AND THEN A SUMMARY REPORT IS GIVEN TO THE CHAIR OF THE AUDIT COMMITTEE. ACCORDINGLY, THE CHAIR OF THE AUDIT COMMITTEE IS 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'S COMPENSATION WAS DETERMINED BY REVIEWING AND COMPARING WITH THE COMPENSATION OF OTHER NON-PROFIT MUSEUM DIRECTORS IN THE GENERAL AREA. BASED UPON THIS COMPARISON AN AMOUNT WAS DETERMINED BY DISCUSSION AND APPROVAL OF SELECTED BOARD MEMBERS OF THE MUSEUM. FORM 990, PART VI, SECTION C, LINE 19 THE MUSEUM'S FORM 990, AUDITED FINANCIAL STATEMENTS, ARTICLES, BYLAWS, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. ADDITIONALLY, THE MUSEUM FILES ITS FORM 990 WITH THE CALIFORNIA ATTORNEY GENERAL AND ROUTINELY UPDATES ITS INFORMATION ON THIRD-PARTY PLATFORMS SUCH AS GUIDESTAR, CHARITY NAVIGATOR AND SMU DATAARTS. FORM 990, PART VII, SECTION A, LINE 2 WAYNE ZAHNER'S COMPENSATION WAS PROVIDED FOR BY THE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. TANGIBLE PROPERTY 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.