2025-02-12T08:05:24-06:00 2024-03-31 991856619 GRANT THORNTON ADVISORS LLC 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2023-04-01 131621786 AMERICAN ASSOCIATION OF ADVERTISING AGENCIES AMER 2128500770 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 JAMES O'DONNELL EVP FINANCE & TREASURER 2128500770 2025-02-12 1 1 SCOTT THOMPSETT P00741490 2125990100 2023 2025-03-06 01:10:19Z X 4A'S MARLA KAPLOWITZ PRES 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 20354421 0 X WWW.AAAA.ORG X 1917 NY WE AIM TO BE AN INDISPENSABLE RESOURCE THAT IS AS ACCESSIBLE AS THEIR (SEE SCHEDULE O) 29 28 71 0 0 0 0 0 14920492 15691035 1060641 1650509 2220496 2114312 18201629 19455856 35602 26000 0 0 11359743 12010337 0 0 0 7009469 6957064 18404814 18993401 -203185 462455 24626095 21397392 17732261 14130759 6893834 7266633 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 THE 4A'S PROVIDES COUNTLESS OTHER SERVICES, INCLUDING MANAGEMENT STUDIES, TO APPROXIMATELY 600 MEMBER COMPANIES. 0 0 0 1 0 0 0 0 0 1 0 0 1 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 X 20 0 1 71 1 0 0 0 0 0 0 0 0 X 29 28 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 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 X MARLA KAPLOWITZ PRESIDENT & CEO 40.00 5.00 X X 936120 0 57677 SHARON NAPIER CHAIR 1.00 0.00 X X 0 0 0 BARRY WACKSMAN IMMEDIATE PAST CHAIR 1.00 0.00 X X 0 0 0 ABBEY KLAASSEN VICE CHAIR 1.00 0.00 X X 0 0 0 VITA HARRIS VICE CHAIR (AS OF 04/23) 1.00 0.00 X X 0 0 0 CHRISTINE FRUECHTE SECRETARY/TREASURER 1.00 0.00 X X 0 0 0 AMANI DUNCAN DIRECTOR-AT-LARGE (THRU 04/23) 1.00 0.00 X 0 0 0 AMBER GUILD DIRECTOR-AT-LARGE (AS OF 04/23) 1.00 0.00 X 0 0 0 ANGELA STEELE DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 CHRISTOPH BECKER DIRECTOR-AT-LARGE (THRU 04/23) 1.00 0.00 X 0 0 0 DEVIKA BULCHANDANI DIRECTOR-AT-LARGE (THRU 04/23) 1.00 0.00 X 0 0 0 GINA SMITH DIRECTOR-AT-LARGE (AS OF 04/23) 1.00 0.00 X 0 0 0 HELEN LIN 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 JOE MAGLIO DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 KATE MACNEVIN DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 LAURA MANESS DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 MATT HARRINGTON DIRECTOR-AT-LARGE (AS OF 04/23) 1.00 0.00 X 0 0 0 MEGAN PAGLIUCA DIRECTOR-AT-LARGE (THRU 04/23) 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 TIM MALEENY DIRECTOR-AT-LARGE (AS OF 04/23) 1.00 0.00 X 0 0 0 ANGELA TENUTA CENTRAL REGION DIR. (AS OF 04/23) 1.00 0.00 X 0 0 0 JEFF KING CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 KAREN SEAMEN CENTRAL REGION DIR. (THRU 08/23) 1.00 0.00 X 0 0 0 MARK BACHMANN CENTRAL REGION DIR. (THRU 04/23) 1.00 0.00 X 0 0 0 ANDREW GRAFF EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DAISY EXPOSITO EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DAVID ANGELO EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 KYLE ALLEN SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 SHARI DAY SOUTHERN REGION DIR. (AS OF 04/23) 1.00 0.00 X 0 0 0 MICHELLE HEADLEY SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 RICHARD WARD SOUTHERN REGION DIR. (THRU 04/23) 1.00 0.00 X 0 0 0 AARON WALTON WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 ERIC JOHNSON WESTERN REGION DIR. (THRU 04/23) 1.00 0.00 X 0 0 0 JOHN GALLEGOS WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 KAREN HUNT WESTERN REGION DIR. (AS OF 04/23) 1.00 0.00 X 0 0 0 JAMES O'DONNELL EVP FINANCE/TREASURER 45.00 5.00 X 322357 0 33507 ALISON PEPPER EVP GOVERNMENT RELATIONS 45.00 0.00 X 472733 0 27800 MOLLIE ROSEN EVP STRATEGY, INSIGHT, INNOVATION 45.00 0.00 X 474474 0 36635 ANN RUBIN EVP, MARKETING, COMM. & EVENTS 45.00 0.00 X 306511 0 21044 TAHLISHA WILLIAMS 10-22-1223 EVP, TALENT, EQUITY & LEAR. SOLUTIONS 20.00 20.00 X 312304 0 20286 ADAM COTUMACCIO CHIEF OPERATING OFFICER 45.00 0.00 X 519204 0 45580 JUAN C SUAREZ EVP MED HOLDING COMPANIES & GROWTH 45.00 0.00 X 385866 0 37068 GREGORY WALKER EVP MED INDEP. AGENCIES & RETENTION 45.00 0.00 X 419612 0 26185 ASHWINI KARANDIKAR EVP MEDIA, TECH & DATA 45.00 0.00 X 501820 0 27640 KRISTINA BARRETT 0423-0623 VP MARKETING & COMMUNICATIONS 45.00 0.00 X 31234 0 2545 RUPA RAMAN AS OF 0823 VP MARKETING & COMMUNICATIONS 45.00 0.00 X 56398 0 4649 KIRA LACKS AS OF 1123 VP, EVENTS & CONFERENCES 45.00 0.00 X 20947 0 2347 ROBERT DUFFY AS OF 1223 VP, WEBSITE STRATEGY, CONTENT, & OP. 45.00 0.00 X 5019 0 413 MATTHEW KASINDORF SVP BUSINESS INTELLIGENCE & INSIGHT 45.00 0.00 X 262261 0 35246 DAVID-ANTHONY POWELL SVP MEMBER ENGAGE & DEV., CENT. REG. 45.00 0.00 X 205547 0 25341 MARK CAMPANELLA SVP, ENTERPRISE TECH & DEVELOPMENT 45.00 0.00 X 284957 0 14171 KEVIN FREEMORE SVP MEDIA, TECH & DATA 45.00 0.00 X 257755 0 31278 NICOLE RIZZO SVP, BUSINESS INTELLIGENCE & INSIGHT 45.00 0.00 X 276048 0 25995 6051167 0 475407 29 0 1 0 ELEMENT ELEVEN 588 E HWY CC SUITE 1 NIXA MO 65714 TECHNOLOGY DEVELOPER 651204 THE SWAY GROUP INC 434 EAST 52ND STREET NEW YORK NY 10022 PUBLIC RELATIONS 261210 VENABLE LLP 1290 AVENUE OF THE AMERICAS 20TH F NEW YORK NY 10104 LEGAL 256833 BBH SOLUTIONS INC 121 EAST 24TH STREET NEW YORK NY 10010 IT SUPPORT 152405 YOKO CONSULTING LLC 8300 GREENSBORO DR MCLEAN VA 22102 CONSULTING 120125 7 MEMBERSHIP DUES 900099 13697446 13697446 CONFERENCES & TRAINING 900099 1531519 1531519 PUBLIC. & TAPE SALES 900099 172345 172345 WEBINAR FEES 900099 154875 154875 COUNCILS REVENUE 900099 130350 130350 4500 4500 15691035 883377 883377 1332134 0 1332134 1332134 1332134 1665697 898565 767132 767132 767132 ADMIN SVCS (RELATED PARTY) 900099 696467 696467 REV. SHARE 900099 74413 74413 11298 11298 782178 19455856 16387502 0 3068354 26000 5102923 33437 5910263 80673 383158 499883 303516 128326 1089229 60000 577119 30409 2148373 310947 1013736 201403 108273 PUBLICATION & SUBSCRIP. 813799 DUES & FEES 76623 DC INITIATIVES 56250 AWARD PROGRAMS 20611 18450 18993401 4265061 2346929 744320 749394 839493 602867 404410 502953 3668580 2842610 923879 825970 9395850 9550086 407012 8053082 6412181 24626095 21397392 2549133 3101408 5428104 3229797 9755024 7799554 17732261 14130759 X 6893834 7266633 6893834 7266633 24626095 21397392 X 462455 -99656 10000 X 0 1 X 1 0 1 1 0 998105 248880 749225 1091689 1065862 25827 1578786 1527868 50918 825970 RIGHT-OF-USE ASSETS 5557004 INVESTMENT IN AD-ID 575544 SECURITY DEPOSITS 279633 6412181 LEASE LIABILITIES 6426787 DEFERRED COMPENSATION AGREEMENTS 1196133 OTHER LIABILITIES 176634 7799554 X 19599110 -99656 242910 143254 19455856 0 19455856 19229292 235891 235891 18993401 0 18993401 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. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUES OF AAAA SUBSIDIARY REPORTED ON SEPARATE FORM 990 242,910. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF AAAA SUBSIDIARY REPORTED ON SEPARATE FORM 990 235,891. 1 THE ADVERTISING COUNCIL INC 815 SECOND AVENUE NEW YORK NY 10017 130417693 501(C)(3) 25000 0 SUPPORT OF THE ADVERTISING COUNCIL 1 0 PROCEDURE 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 621120 0 310000 0 5000 0 9900 0 47777 0 993797 0 0 0 ADAM COTUMACCIO CHIEF OPERATING OFFICER 419204 0 100000 0 0 0 9900 0 35680 0 564784 0 0 0 ASHWINI KARANDIKAR EVP MEDIA, TECH & DATA 408820 0 93000 0 0 0 9900 0 17740 0 529460 0 0 0 MOLLIE ROSEN EVP STRATEGY, INSIGHT, INNOVATION 384424 0 90000 0 50 0 9900 0 26735 0 511109 0 0 0 ALISON PEPPER EVP GOVERNMENT RELATIONS 382233 0 90500 0 0 0 9900 0 17900 0 500533 0 0 0 GREGORY WALKER EVP MED INDEP. AGENCIES & RETENTION 344612 0 75000 0 0 0 9600 0 16585 0 445797 0 0 0 JUAN C SUAREZ EVP MED HOLDING COMPANIES & GROWTH 310866 0 75000 0 0 0 9469 0 27599 0 422934 0 0 0 JAMES O'DONNELL EVP FINANCE/TREASURER 276357 0 46000 0 0 0 8455 0 25052 0 355864 0 0 0 TAHLISHA WILLIAMS 10-22-1223 EVP, TALENT, EQUITY & LEAR. SOLUTION 294304 0 18000 0 0 0 0 0 20286 0 332590 0 0 0 ANN RUBIN EVP, MARKETING, COMM. & EVENTS 291511 0 15000 0 0 0 1575 0 19469 0 327555 0 0 0 NICOLE RIZZO SVP, BUSINESS INTELLIGENCE & INSIGHT 251048 0 25000 0 0 0 7619 0 18376 0 302043 0 0 0 MARK CAMPANELLA SVP, ENTERPRISE TECH & DEVELOPMENT 256957 0 28000 0 0 0 0 0 14171 0 299128 0 0 0 MATTHEW KASINDORF SVP BUSINESS INTELLIGENCE & INSIGHT 231261 0 31000 0 0 0 7188 0 28058 0 297507 0 0 0 KEVIN FREEMORE SVP MEDIA, TECH & DATA 229755 0 28000 0 0 0 7177 0 24101 0 289033 0 0 0 DAVID-ANTHONY POWELL SVP MEMBER ENGAGE & DEV., CENT. REG. 193547 0 12000 0 0 0 5830 0 19511 0 230888 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS THE FOLLOWING INDIVIDUALS RECEIVED TAX GROSS-UP PAYMENTS IN 2023. THESE AMOUNTS ARE INCLUDED IN THEIR TAXABLE WAGES: MARLA KAPLOWITZ $5,000 MOLLIE ROSEN $50 HEALTH OR SOCIAL CLUB DUES IN CALENDAR YEAR 2023, MARLA KAPLOWITZ RECEIVED A REIMBURSMENT FOR HEALTH CLUB DUES THAT WAS TAXABLE TO HER AND INCLUDED IN HER TAXABLE WAGES. FORM 990, PART I, LINE 1 (CONTINUED) OWN AGENCY TEAM. 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. 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 160,000 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. 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 71 EMPLOYEES ON ITS 2023 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, SECRETARY-TREASURER, AND THE IMMEDIATE PAST CHAIR SHALL EACH HOLD OFFICE FOR TWO YEARS AND UNTIL THEIR SUCCESSORS HAVE BEEN ELECTED AND QUALIFIED. THE CO-VICE CHAIRS SHALL HOLD OFFICE FOR ONE YEAR AND UNTIL HIS OR HER SUCCESSOR HAS BEEN ELECTED AND QUALIFIED. DIRECTORS-AT-LARGE SHALL HOLD OFFICE FOR A TERM OF THREE YEARS AND UNTIL SUCH TIME AS THEIR SUCCESSORS HAVE BEEN DULY ELECTED AND QUALIFIED. REGIONAL DIRECTORS SHALL HOLD OFFICE FOR A TERM OF ONE YEAR AND UNTIL SUCH TIME AS THEIR SUCCESSORS HAVE BEEN DULY ELECTED AND QUALIFIED. TERMS OF THE DIRECTORS-AT-LARGE SHALL BE STAGGERED SUCH THAT AS NEARLY AS POSSIBLE, ONE-THIRD OF THE DIRECTORS-AT-LARGE SHALL BE ELECTED EACH YEAR. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS SUBJECT TO APPROVAL AT THE ANNUAL MEETING OF THE MEMBERS, THE REGULAR MEMBERS SHALL ELECT OPEN SEATS ON THE BOARD OTHER THAN THE REGIONAL DIRECTORS, AND THE REGULAR MEMBERS OF THE RELEVANT REGION SHALL ELECT THE REGIONAL DIRECTORS. THE CO-VICE CHAIRS SHALL BE ELECTED AT THE ANNUAL MEETING OF THE MEMBERS IN YEARS NOT HAVING AN ELECTION OF THE CHAIR. 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 2023 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 REVIEW WAS PERFORMED IN THE 4TH QUARTER OF 2022. 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 03/31/2024, THE ASSOCIATION ALLOCATED SALARIES EQUAL TO APPROXIMATELY $150,000 TO AAAA BENEFITS, INC. FORM 990, PART XI, LINE 9: NET PERIODIC PENSION BENEFIT 10,000. 4A'S WORKPLACE ENLIGHTENMENT LLC 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 EDUCATION NY 0 0 AAAA AAAA FOUNDATION 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 133949950 SCHOLARSHIPS NY 501(C)(3) LINE 7 AAAA 1 COALITION FOR HEALTHCARE COMMUNICATION INC 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 133746545 INFO EXCHANGE NY 501(C)(6) AAAA 1 ADVERTISING DIGITAL IDENTIFICATION LLC 25 WEST 45TH STREET 16TH FL NEW YORK NY 10036 061639073 DIGITAL ID'S NY N/A RELATED 2523891 1376240 0 1 0.50000 AAAA BENEFITS INC 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 133439015 EMP BENEFITS NC AAAA C 3013951 5702865 1.00000 1 AAAA INSURANCE COMPANY LTD 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 980207541 INSURANCE BD AAAA C 18559188 28511633 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 L 150000 FMV AAAA BENEFITS INC O 54000 FMV AAAA BENEFITS INC S 157000 FMV ADVERTISING DIGITIAL IDENTIFICATION LLC S 600000 FMV AAAA FOUNDATION S 115665 FMV AAAA FOUNDATION L 546467 FMV AAAA INSURANCE COMPANY LTD A 13000 FMV SCHEDULE R, PART V, LINE 2 THE ASSOCIATION DISCLOSES SEVEN TRANSACTIONS ON SCHEDULE R. 1) 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, 2024, WAS $150,000 FOR ADMINISTRATIVE AND SUPPORT SERVICES. 2) THE ASSOCIATION IS ALSO REIMBURSED $54,000 FOR THE YEAR ENDING MARCH 31, 2024 FOR EXPENSES THAT DEAL WITH SALARIES AND EMPLOYEE BENEFITS. 3) BENEFITS MAINTAINS AN INCENTIVE COMPENSATION AGREEMENT, WHICH PROVIDES FOR DISCRETIONARY PAYMENTS TO CERTAIN EMPLOYEES DETERMINED BY THE AAAA MANAGEMENT BASED UPON THE RECOMMENDATION OF BENEFITS' SENIOR MANAGEMENT. ACCORDINGLY, THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS INCLUDE AN EXPENSE OF APPROXIMATELY $157,000 FOR SUCH PAYMENTS DURING THE FISCAL YEARS ENDED MARCH 31, 2024. 4) THE ASSOCIATION INVESTS IN ADVERTISING DIGITAL IDENTIFICATION LLC; THE DISTRIBUTION FROM THIS INVESTMENT FOR THE YEAR ENDING MARCH 31, 2024, WAS $600,000. 5) 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, 2024, WAS $115,665. 6) DURING FISCAL YEAR 2024, THE ASSOCIATION WAS REIMBURSED $546,467 FOR ADMINISTRATIVE AND PROGRAMMATIC SERVICES PROVIDED TO THE AAAA FOUNDATION. 7) DURING FISCAL YEAR 2024, THE ASSOCIATION RECEIVED DIVIDENDS FROM AAAA INSURANCE COMPANY, LTD IN THE AMOUNT OF $13,000.