2019-06-21T08:56:30-05:00 2018-12-31 521446779 JOHNSON LAMBERT LLP 4242 SIX FORKS ROAD SUITE 1500 RALEIGH NC 27609 990 2018-01-01 260803466 MARINE CORPS HERITAGE FOUNDATION MARI 7036407965 18900 JEFFERSON DAVIS HWY TRIANGLE VA 22172 JAMES KESSLER PRESIDENT & CEO 7036407965 2019-06-21 1 J CALVIN MARKS P01226973 9197196400 2019-06-21 34.206.232.202 2019-06-21 08:56:27 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 9C238F1B6484ABD2E08FB3ED1A4A2692AD2A909B 2018 2019-02-21 02:37:17Z MAJGEN JAMES A KESSLER 18900 JEFFERSON DAVIS HWY TRIANGLE VA 22172 11321858 0 X WWW.MARINEHERITAGE.ORG X 1979 VA PRESERVE AND PROMULGATE THE HISTORY, TRADITIONS, AND CULTURE OF THE MARINE CORPS AND EDUCATE ALL AMERICANS IN ITS VIRTUES. 15 15 74 17 0 0 9190921 9602810 665308 1075252 137659 229875 379097 6851 10372985 10914788 114000 256908 0 0 2225558 2203556 368584 394866 2361756 8934211 9652107 11642353 12507437 -1269368 -1592649 139810269 130613663 15465027 8234078 124345242 122379585 X THE MARINE CORPS HERITAGE FOUNDATION PRESERVES AND PROMULGATES THE HISTORY, TRADITIONS AND CULTURE OF THE MARINE CORPS AND EDUCATES ALL AMERICANS IN ITS VIRTUES. 0 0 8396009 916672 PROGRAMS FOR THE NATIONAL MUSEUM OF THE MARINE CORPS INCLUDE SUPPORT FOR MUSEUM COLLECTIONS/EXHIBITS, ARTWORK, EDUCATIONAL PROGRAMS, COMMUNITY OUTREACH EFFORTS, A VOLUNTEER DOCENT PROGRAM, PAYROLL SUPPORT FOR INTERNS AND SPECIAL ASSISTANTS, MARKETING, AND HERITAGE CENTER PROPERTY/GROUNDS MAINTENANCE. THE FOUNDATION CONDUCTS ALL RETAIL OPERATIONS WITHIN THE MUSEUM WHICH INCLUDE THE GIFT SHOP, TWO RESTAURANTS, SPECIAL EVENTS, A LASER RIFLE RANGE, AND A GIANT SCREEN MOVIE THEATER SHOWING THE FOUNDATION'S FEATURE FILM, "WE, THE MARINES". DURING 2018, THE MUSEUM HOSTED 411,066 VISITORS (INCLUDING 118,233 STUDENTS), THE INTERN/SPECIAL ASSISTANT PROGRAMS HAD 23 STAFF MEMBERS PAID A TOTAL OF $244,333, AND MAINTENANCE SUPPORT TOTALED $65,908. TOTAL EXPENSES INCLUDE $5.1M NON-CASH DEPRECIATION COSTS ON THE MUSEUM AND HERITAGE CENTER. 462865 162908 158580 OTHER FOUNDATION PROGRAMS INCLUDE SUPPORT FOR ANNUAL NATIONAL HISTORY DAY (NHD) COMPETITIONS, GRANTS FOR USMC HISTORICAL PROJECTS; USMC BAND ANNUAL CONCERTO COMPETITIONS AND SPECIAL ASSISTANT PAYROLL; EVENTS HONORING SIGNIFICANT DATES IN USMC HISTORY, AND AN ANNUAL AWARDS PROGRAM RECOGNIZING EXEMPLARY WORK THAT FURTHERS THE UNDERSTANDING OF MARINE CORPS HISTORY AND TRADITIONS. GRANTS IN SUPPORT OF NHD TOTALED $3,500. THE AWARDS PROGRAM HAD 16 WINNERS RECEIVING A TOTAL OF $15,000 IN CASH PRIZES. USMC BAND SUPPORT INCLUDED $10,896 SPECIAL ASSISTANT PAYROLL COSTS AND 2 CONCERTO COMPETITION CASH PRIZES TOTALING $3,000. SPECIAL PROJECT GRANTS TOTALING $61,408 WERE ISSUED TO 4 RECIPIENTS; AND 2 GRANTS TOTALING $80,000 WERE AWARDED TO THE USMC HISTORICAL COMPANY AND UNIVERSITY OF SC EDUCATIONAL FOUNDATION. DURING 2018, THE FOUNDATION HOSTED A 2-DAY SYMPOSIUM TO HONOR A PORTION OF TIME MARKING THE 50TH ANNIVERSARY OF THE VIETNAM WAR. 304802 94000 HISTORICAL PROGRAMS INCLUDE SUPPORT FOR THE MARINE CORPS UNIVERSITY HISTORY DIVISION'S INTERNS, RESEARCH GRANTS AND FELLOWSHIPS, AND ACADEMIC DEGREE SCHOLARSHIPS. DURING 2018, 2 DOCTORAL GRANTS WERE AWARDED FOR $20,000; 1 MASTERS DEGREE GRANT WAS AWARDED FOR $3,500; 7 HISTORICAL RESEARCH GRANTS AND FELLOWSHIPS WERE AWARDED FOR $20,500; AND 1 HISTORIC PUBLICATIONS GRANT WAS AWARDED FOR $50,000. IN ADDITION, THE USMC HISTORY DIVISION INTERN / SPECIAL ASSISTANT PROGRAM HAD 14 STAFF MEMBERS PAID A TOTAL OF $144,932. 9163676 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 1 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 75 0 1 74 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 15 15 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AR CA FL GA HI IL KS KY MD MA MI MN MS NH NJ NM NY NC OK OR PA RI SC TN UT VA WV WI X X HOLLY DEVENDORF 7036492363 18900 JEFFERSON DAVIS HWY TRIANGLE VA 22172 PAUL D KALSBEEK VICE CHAIR 1.00 X X 0 0 0 GEORGE P CAULKINS III SECRETARY 1.00 X X 0 0 0 J STEPHEN PENNER TREASURER 1.00 X X 0 0 0 PATRICK BRENT DIRECTOR 1.00 X 0 0 0 WILLIAM P COLLATOS DIRECTOR 1.00 X 0 0 0 EDWARD CUCCIO DIRECTOR 1.00 X 0 0 0 B THOMAS FRANA DIRECTOR 1.00 X 0 0 0 JOHN K FRENCH DIRECTOR 1.00 X 0 0 0 DONALD L HALL DIRECTOR (TO SEP '18) 1.00 X 0 0 0 RICHARD HARTNACK DIRECTOR 1.00 X 0 0 0 BRIAN C JONES DIRECTOR 1.00 X 0 0 0 SGTMAJ CARLTON KENT DIRECTOR 1.00 X 0 0 0 JAMES MORIARTY DIRECTOR 1.00 X 0 0 0 RICHARD P MOXLEY DIRECTOR 1.00 X 0 0 0 CHARLES A SPADAFORA DIRECTOR 1.00 X 0 0 0 MAJ LLOYD T WHITAKER USMCR RET DIRECTOR 1.00 X 0 0 0 LTGEN ROBERT R BLACKMAN JR USMC RET PRESIDENT 40.00 X 363791 0 13634 SUSAN L HODGES VP FINANCE & ADMIN 40.00 X 156722 0 14020 JENNIFER VANDERVELD VP DEV & MARKETING 40.00 X 151657 0 18091 672170 0 45745 3 0 1 0 PATTON KIEHL 17026 BULL CHURCH ROAD WOODFORD VA 22580 FUNDRAISING 590200 LAUTMAN MASKA NEILL & COMPANY 1730 RHODE ISLAND AVE NW SUITE 30 WASHINGTON DC 20036 FUNDRAISING 421659 BALFOUR BEATTY CONSTRUCTION LLC 3100 MCKINNON STREET 10TH FLOOR DALLAS TX 75201 CONSTRUCTION 243429 DIRECT MAIL PROCESSORS INC 1150 CONRAD COURT HAGERSTOWN MD 21740 FUNDRAISING 235420 SUSAN DAVIS INTERNATIONAL 1101 K STREET NW STE 400 WASHINGTON DC 20005 MARKETING 218750 9 9602810 332878 9602810 SPECIAL EVENTS 900099 342767 342767 MUSEUM GIFT SHOP REVENUE 452000 338451 338451 THEATER/RIFLE RANGE REVENUE 711110 218797 218797 RESTAURANT REVENUE 722513 175237 175237 1075252 238242 238242 5989 5989 398703 406766 304 -8063 -304 -8367 -8367 DISCOUNTS TAKEN 900099 862 862 862 10914788 1075252 0 236726 80000 80000 176908 176908 717915 281676 162652 273587 1210137 807993 106910 295234 53407 14000 13276 26131 86850 49146 19098 18606 135247 80735 20005 34507 9363 9363 98202 65020 10933 22249 394866 394866 157319 72407 23010 61902 432954 399581 121 33252 158738 63570 55606 39562 75367 38459 18454 18454 231773 204469 19532 7772 8617 5392 238 2987 45360 14343 30871 146 370188 370188 5362592 5340947 7132 14513 110856 91416 19440 DIRECT MAIL 1929130 360810 466930 1101390 MUSEUM SUPPORT 406647 406647 SPECIAL EVENTS 174900 174900 80101 55706 7797 16598 12507437 9163676 982005 2361756 X 2122411 360810 466930 1294671 X 1302829 1171149 9398873 1495533 13199298 6514085 346969 341647 61978 198535 123635929 41658011 87318703 81977918 3778708 14552717 132540 100063 24270371 24262016 139810269 130613663 742832 343438 70225 112050 236 0 14309045 7447236 342689 331354 15465027 8234078 X 48688875 120264475 75656367 2115110 124345242 122379585 139810269 130613663 X -1592649 -260585 -112423 X 0 1 X 1 0 X 13841876 17456400 11881332 9190921 9602810 61973339 13841876 17456400 11881332 9190921 9602810 61973339 4777557 57195782 265401 574907 455786 499633 244231 2039958 1733 1225 1348 5957 862 11125 64024422 5779413 0.89330 0.69850 X 1022456 12234 7759 1026931 928057 113232 18833 1022456 865055 88520 25518 928057 4368330 17579 3520854 865055 4391322 558749 92798 660527 14012 4368330 1.00000 0 0 121093497 40089657 81003840 562485 345467 217018 1979947 1222887 757060 81977918 CASH SURRENDER VALUE OF LIFE INSURANCE 138104 CONSTRUCTION IN PROGRESS 23792558 RETIREMENT PLAN ASSETS 331354 24262016 RETIREMENT PLAN LIABILITY 331354 331354 X 10700394 -260585 86263 304 -174018 10874412 40376 40376 10914788 12666051 86263 116652 202915 12463136 40376 3925 44301 12507437 PART V, LINE 4: MCHF ENDOWMENT FUNDS ARE TO BE USED FOR THE PAYMENT OF VARIOUS AWARDS, FELLOWSHIPS AND GRANTS; AND THE DEVELOPMENT OF EDUCATIONAL PROGRAMS. PART X, LINE 2: MANAGEMENT HAS CONCLUDED THAT THE FOUNDATION HAS MAINTAINED ITS TAX EXEMPT STATUS AND THAT THERE ARE NO UNCERTAIN TAX POSITIONS AT DECEMBER 31, 2018. PART XI, LINE 2D - OTHER ADJUSTMENTS: GAIN / LOSS ON DISPOSAL 304. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN / LOSS ON DISPOSAL 304. BAD DEBT 116,348. PART XII, LINE 4B - OTHER ADJUSTMENTS: RETURN GRANTS 3,925. CENTRAL AMERICA & CARIBBEAN 0 0 INVESTMENTS HELD IN REGION 100063 0 0 0 0 0 0 100063 0 100063 0 0 1 1 0 0 X X X X X 1 LAUTMAN MASKA NEILL & CO 1730 RHODE ISLAND AVE NW STE 301 WASHINGTON DC 20036 DIRECT MAIL CONSULTANT 0 4546542 2122411 2424131 4546542 2122411 2424131 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC SCHEDULE G, PART I, LINE 2B, COLUMN (V) MOST PAYMENTS WERE MADE TO SUB-CONTRACTORS AS PART OF THE DIRECT-MAILING PROGRAM. TOTAL PAYMENTS TO SUBCONTRACTORS FOR 2018 WAS $1,727,545. 1 USMC HISTORICAL COMPANY 3807 BAKER VALLEY ROAD FREDERICK MD 21704 521470609 501(C)(3) 30000 PROGRAM SUPPORT UNIVERSITY OF SC EDUCATIONAL FOUNDATION 1322 GREENE STREET COLUMBIA SC 29208 576017985 501(C)(3) 50000 PROGRAM SUPPORT 2 0 SPECIAL PROJECTS GRANTS 4 61408 HISTORICAL PUBLICATIONS GRANT 1 50000 DOCTORAL/MASTERS EDUCATIONAL GRANTS 3 23500 HISTORICAL RESEARCH GRANTS 7 20500 AWARDS AND PRIZES 20 21500 PART I, LINE 2: GRANT APPLICATIONS FOR EDUCATIONAL DEGREES, HISTORICAL RESEARCH AND PUBLICATIONS ARE INITIALLY REVIEWED BY THE MARINE CORPS UNIVERSITY HISTORY DIVISION'S STAFF AND THEN BY THE FOUNDATION'S AWARDS COMMITTEE. APPROVED APPLICANTS RECEIVE ONE-HALF OF THE GRANT UPON ACCEPTANCE AND THE BALANCE WHEN A SATISFACTORY PRODUCT IS RECEIVED. APPLICATIONS FOR THE FOUNDATION'S ANNUAL AWARDS COMPETITION ARE REVIEWED AND VOTED UPON BY VOLUNTEER JUDGES WHO ARE BEST SUITED TO REVIEW THE TYPES OF WORK SUBMITTED IN EACH CATEGORY (PHOTOGRAPHY, LITERATURE, ART, NEWS, ETC.). WINNERS ARE PRESENTED CASH PRIZES AND RECOGNIZED AT THE FOUNDATION'S ANNUAL AWARDS BANQUET. ANNUAL CONCERTO COMPETITION WINNERS ARE DETERMINED BY THE USMC BAND. THE FOUNDATION PRESENTS CASH PRIZES TO THE WINNER AND RUNNER UP AT THE EVENT. THE FOUNDATION HOSTS THE ANNUAL REGION 5 NATIONAL HISTORY DAY COMPETITION WINNER AT THE MUSEUM WHERE HE OR SHE RECEIVES A CASH PRIZE AND PRESENTS THE WINNING PROJECT. REQUESTS FOR SPECIAL PROJECT GRANTS ARE SUBMITTED TO THE FOUNDATION'S PRESIDENT / CEO FOR CONSIDERATION. PROJECTS THAT FULFIL THE FOUNDATION'S MISSION ARE APPROVED ON A CASE BY CASE BASIS AND FUNDED AS NEEDED. X X X X X 0 0 0 0 0 0 0 0 0 LTGEN ROBERT R BLACKMAN JR USMC RET PRESIDENT 343791 0 20000 0 0 0 12250 0 1384 0 377425 0 0 0 SUSAN L HODGES VP FINANCE & ADMIN 154722 0 2000 0 0 0 12250 0 1770 0 170742 0 0 0 JENNIFER VANDERVELD VP DEV & MARKETING 149657 0 2000 0 0 0 8940 0 9151 0 169748 0 0 0 X 15 332878 FMV 0 1 1 PART I, COLUMN (B): THE FIGURE IN COLUMN B REFLECTS THE NUMBER OF CONTRIBUTIONS, NOT THE NUMBER OF ITEMS RECEIVED. PART I, LINE 32B: DONATED STOCK CONTRIBUTIONS ARE SENT DIRECTLY TO CHARLES SCHWAB TO BE IMMEDIATELY SOLD AND THE PROCEEDS REMITTED TO THE FOUNDATION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS EMAILED TO ALL BOARD MEMBERS. EACH BOARD MEMBER ACKNOWLEDGES RECEIPT VIA RETURN EMAIL TO THE FOUNDATION PRIOR TO FILING FORM 990 WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IS REVIEWED ANNUALLY. THE POLICY COVERS DIRECTORS AND ALL EMPLOYEES. SUSAN HODGES, VP OF FINANCE & ADMIN, IS RESPONSIBLE FOR MONITORING COMPLIANCE. AT THIS TIME, NO CONFLICTS HAVE OCCURRED. IN THE EVENT OF A CONFLICT OF INTEREST OR SUSPECTED FRAUDULENT ACTIVITY, THE BOARD CHAIRMAN AND PRESIDENT/CEO ARE TO BE NOTIFIED. THEY IN TURN WILL DECIDE WHAT ACTIONS NEED TO BE TAKEN. FORM 990, PART VI, SECTION B, LINE 15 THE FOUNDATION ROUTINELY DOWNLOADS SALARY ANALYSIS DATA FROM THE NON PROFIT TIMES, PROFESSIONALS FOR NONPROFITS, AND ROBERT HALF. THE DATA RELEVANT TO EXECUTIVE SALARIES IS PROVIDED TO THE COMPENSATION COMMITTEE FOR REVIEW AND APPROVAL. THE COMMITTEE THEN PROVIDES A RECOMMENDATION TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 AUDITED FINANCIAL STATEMENT POSTED ON WEBSITE. OTHER DOCUMENTS AVAILABLE UPON REQUEST. FORM 990, PART IX AND PART X, LINE 10: IN 1998 SENATE AUTHORIZATION P.L. 106-398 FY01 NDAA AUTHORIZED THE SECRETARY OF THE NAVY TO ENTER INTO A JOINT VENTURE WITH THE MARINE CORPS HERITAGE FOUNDATION, A NOT-FOR-PROFIT ENTITY, FOR THE DESIGN AND CONSTRUCTION OF A MULTIPURPOSE FACILITY TO BE USED FOR HISTORICAL DISPLAYS FOR PUBLIC VIEWING, CURATION, AND STORAGE OF ARTIFACTS, RESEARCH FACILITIES, CLASSROOMS, OFFICES, AND ASSOCIATED ACTIVITIES CONSISTENT WITH THE MISSION OF THE MARINE CORPS UNIVERSITY. THIS FACILITY SHALL BE KNOWN AS THE "MARINE CORPS HERITAGE CENTER" AT MARINE CORPS BASE, QUANTICO, VIRGINIA. THE FOUNDATION SIGNED A MEMORANDUM OF UNDERSTANDING WITH THE DEPARTMENT OF THE NAVY ON JUNE 1, 2000 TO FACILITATE THE CONSTRUCTION OF THIS FACILITY. ON NOVEMBER 10, 2006, PRESIDENT BUSH DEDICATED THE MARINE CORPS HERITAGE CENTER CAMPUS AND ITS CENTERPIECE, THE NATIONAL MUSEUM OF THE MARINE CORPS. THE MARINE CORPS HERITAGE FOUNDATION CURRENTLY OWNS THE MUSEUM BUILDING AND LEASES IT TO THE MARINE CORPS. SINCE INCEPTION, THE FOUNDATION HAS INCURRED AND CAPITALIZED A TOTAL OF $145M IN DEVELOPMENT AND CONSTRUCTION COSTS, OF WHICH $40M HAS BEEN EXPENSED AS DEPRECIATION. DURING 2018, THE FOUNDATION RECORDED $5.1M DEPRECIATION EXPENSE ON THE MUSEUM AND HERITAGE CENTER. FORM 990, PART XI, LINE 9: BAD DEBT -116,348. RETURN GRANTS 3,925. FORM 990, PART X, LINES 27 - 29: DURING 2018, THE FOUNDATION ADOPTED FINANCIAL ACCOUNTING STANDARDS BOARD ASU 2016-14 (TOPIC 958) "PRESENTATION OF FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ENTITIES". AS A RESULT, THE CLASSIFICATION OF NET ASSETS WAS CHANGED FROM "UNRESTRICTED, TEMPORARILY RESTRICTED AND PERMANENTLY RESTRICTED" TO THOSE "WITH OR "WITHOUT" DONOR RESTRICTIONS. IN ADDITION, THE MUSEUM AND HERITAGE CENTER'S $74M CARRYING VALUE WAS RECLASSIFIED INTO "NET ASSETS WITHOUT DONOR RESTRICTIONS". IN THE 990 FILING, NET ASSETS "WITHOUT DONOR RESTRICTIONS" ARE REPORTED ON LINE 27 "UNRESTRICTED NET ASSETS; WHILE NET ASSETS "WITH DONOR RESTRICTIONS" ARE REPORTED ON LINE 29 "PERMANENTLY RESTRICTED NET ASSETS". HERITAGE CENTER LLC 18900 JEFFERSON DAVIS HWY TRIANGLE VA 22172 205411581 MUSEUM RETAIL VA 942342 1003316 MCHF