2016-08-10T15:42:12-05:00 2015-12-31 BKD LLP 201 N Illinois Street Indianapolis IN 46204 990 2015-01-01 351978359 THE FRIEDMAN FOUNDATION FOR EDUCATIONAL CHOICE INC % CAREY E FOLCO FRIE 3176810745 111 MONUMENT CIRCLE Suite 2650 INDIANAPOLIS IN 46204 ROBERT C ENLOW PRESIDENT & CEO 3176810745 2016-08-15 true NICOLE B FISHBACK P01279475 3173834000 2015 2017-02-10 21:41:12Z X ROBERT C ENLOW 111 MONUMENT CIRCLE 2650 INDIANAPOLIS IN 46204 7467631 false X WWW.EDCHOICE.ORG X 1996 IN PROMOTING SCHOOL CHOICE IN ORDER TO IMPROVE, THROUGH COMPETITION, K-12 EDUCATION FOR ALL. 12 11 22 10 0 0 10042798 6720450 0 0 149501 410512 -24443 -45079 10167856 7085883 961000 1327105 0 0 1590880 1604197 30000 60000 591961 2299872 3424808 4881752 6416110 5286104 669773 12672422 12839760 253028 275424 12419394 12564336 THE FOUNDATION WAS ESTABLISHED BY MILTON AND ROSE D. FRIEDMAN IN 1996 TO EDUCATE THE PUBLIC ON THE NEED FOR AND BENEFITS OF PARENTAL SCHOOL CHOICE. OUR EDUCATIONAL WORK INCLUDES RESEARCH, COMMUNICATIONS AND MARKETING, PUBLIC OUTREACH, AND GRANT-MAKING. false false 1334105 1289105 GRANT MAKING: THE FOUNDATION AWARDED 79 GRANTS TO CHARITABLE ORGANIZATIONS FOR EDUCATIONAL PURPOSES. 2993181 EDUCATION ACTIVITIES - THE FOUNDATION WORKED AROUND THE COUNTRY TO EDUCATE THE PUBLIC ON THE PRACTICE AND BENEFITS OF SCHOOL CHOICE, IN EACH INSTANCE PROVIDING EDUCATIONAL SERVICES TO STATE-BASED ORGANIZATIONS, INDIVIDUALS AND POLICY MAKERS. THESE SERVICES INCLUDE: SPONSORING FACT-FINDING TRIPS TO CITIES/STATES WITH SCHOOL CHOICE PROGRAMS; HOSTING INFORMATIONAL SYMPOSIUMS; SPONSORING VISITS BY EXPERT SPEAKERS; TESTIFYING IN FRONT OF VARIOUS LEGISLATIVE BODIES AT THEIR REQUEST; PARENT EDUCATION EFFORTS AND TRAINING; MEDIA SUPPORT AND MEDIA TRAINING; PROVIDING TECHNICAL ADVICE ON THE DRAFTING OF LEGISLATION; AND SPONSORING MEETINGS WITH FOUNDATION STAFF AND VARIOUS SCHOOL CHOICE EXPERTS. 1179921 RESEARCH AND COMMUNICATION - THE FOUNDATION PRODUCED PUBLICATIONS AND RESEARCH REPORTS INCLUDING, BUT NOT LIMITED TO, ITS QUARTERLY NEWSLETTER (THE SCHOOL CHOICE ADVOCATE); STATE AND NATIONAL RESEARCH REPORTS; PUBLIC POLICY SURVEYS; AND OUR ANNUAL BROCHURE ENTITLED THE ABC'S OF SCHOOL CHOICE. THE FOUNDATION PRODUCED EDUCATIONAL MARKETING FLIERS AND PROMOTIONAL BROCHURES FOR STATE SCHOOL CHOICE PARTNERS. THE FOUNDATION UNDERTOOK POLLS IN EFFORTS TO GAUGE PUBLIC OPINION. 5507207 true true true true false false false false false false true false false false false false true false false false true false false true true false false true false true false false false false false false false false false false false false false false false false false true X 59 0 true 22 true false false false false false true true false false false false X 12 11 true false false false false false false true true false false true true true true true true true false false AL AK AR CA CT FL GA IL IN KS KY MD MA MI MN MS MO NH NJ NY NC OR PA RI TN UT VA WV WI X CAREY E FOLCO 3176810745 111 MONUMENT CIRCLE SUITE 2650 INDIANAPOLIS IN 46204 ROBERT C ENLOW PRESIDENT AND CEO 45.0 0.0 X X 252704 0 19764 PATRICK M BYRNE CHAIRMAN 2.0 0.0 X X 0 0 0 JANET FRIEDMAN MARTEL VICE CHAIRPERSON 2.0 0.0 X X 0 0 0 LAWRENCE A O'CONNOR JR TREASURER 1.0 0.0 X X 0 0 0 DAVID D FRIEDMAN DIRECTOR 1.0 0.0 X 0 0 0 CHARLES H BRUNIE DIRECTOR 1.0 0.0 X 0 0 0 WILLIAM J HUME DIRECTOR 1.0 0.0 X 0 0 0 FRED REAMS DIRECTOR 1.0 0.0 X 0 0 0 MICHAEL WALKER DIRECTOR 1.0 0.0 X 0 0 0 FRED S KLIPSCH DIRECTOR 1.0 0.0 X 0 0 0 VIRGINIA WALDEN-FORD DIRECTOR 1.0 0.0 X 10000 0 0 GREG GIANFORTE DIRECTOR (1/1/15 - 10/7/15) 1.0 0.0 X 0 0 0 J SCOTT ENRIGHT SECRETARY 5.0 0.0 X X 0 0 0 CAREY E FOLCO V.P. OF OPERATIONS 40.0 0.0 X 85474 0 10236 LESLIE HINER V.P. OF PROGRAMS AND STATE 45.0 0.0 X 158300 0 6996 BRIAN MCGRATH SENIOR VICE PRESIDENT 40.0 0.0 X 140804 0 16892 647282 0 53888 3 false true false 0 17428 6703022 16020 6720450 0 300697 300697 0 0 0 0 0 439462 329647 109815 109815 109815 7022 17428 52101 -45079 -45079 0 0 0 7085883 365433 1289105 1289105 0 38000 38000 0 543571 355805 101800 85966 0 845173 615764 60899 168510 17703 11862 566 5275 107769 78265 11081 18423 89981 63861 10137 15983 0 16608 5993 10615 22199 22199 159381 159381 60000 60000 0 748363 724582 23781 122131 121246 885 106189 80853 18405 6931 0 0 102925 78222 9264 15439 336559 286954 24738 24867 139095 139095 574607 555512 15563 3532 0 0 20050 15238 1805 3007 23246 17667 2092 3487 MAILING AND PRINTING FEES 388926 248716 3001 137209 STATE POLLING 315179 315179 SPEAKER/MODERATOR FEES 155871 155871 SPONSORED EVENTS 149137 142102 7035 44342 7934 111 36297 6416110 5507207 316942 591961 2732055 1968247 4314512 2139216 0 0 0 0 0 0 0 0 0 0 0 0 7190 36017 286581 225082 44620 61499 5574045 8634781 0 0 0 0 0 0 0 0 12672422 12839760 253028 275424 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 253028 275424 X 12319266 12412941 100128 151395 0 0 12419394 12564336 12672422 12839760 669773 -524831 X false true X true false X 4498513 5327738 3967838 10063080 6727472 30584641 0 0 4498513 5327738 3967838 10063080 6727472 30584641 7214959 23369682 59604 86589 103602 149501 300697 699993 0 0 31284634 0.74700 0.69379 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1249 0 0 true true 3456 162771 166227 6249883 6416110 470806 117702 403371 410470 394088 470806 1678735 2518103 111684 134298 107576 166227 519785 100843 102618 98522 117702 419685 629528 41040 34125 20000 3456 98621 Schedule C, Parts I-A, I-B CORRECTION MADE: The Foundation reimburses expenses individuals incur to attend the Foundations educational legislative summits. Instead of reimbursing two individuals for the expenses they incurred in attending a legislative summit, the reimbursements were inadvertently issued to the individuals political campaigns. When the Foundation discovered the reimbursements were issued to political campaigns rather than the state legislators in their individual capacity, the Foundation promptly requested that the funds be returned and issued replacement checks to the individual legislators once all the funds had been recovered by the Foundation. The Foundation has filed Form 4720 and has requested full abatement of all taxes, penalties and interest under Section 4962 of the Internal Revenue Code. Accordingly, the Foundation has reported no taxes incurred on Schedule C, Part I-B, Line 1. Schedule C, Part II-A LOBBYING EXPENDITURES TO INFLUENCE PUBLIC OPINION: THE FRIEDMAN FOUNDATION FOR EDUCATIONAL CHOICE IS NEVER INVOLVED IN POLITICAL CAMPAIGNS. THE SUBSTANTIAL ACTIVITY UNDERTAKEN BY THE FRIEDMAN FOUNDATION FOR EDUCATIONAL CHOICE IS EDUCATIONAL IN NATURE. THE FOUNDATION HAS MADE AN ELECTION UNDER SECTION 501(H) OF THE INTERNAL REVENUE CODE. CONSISTENT WITH AN ORGANIZATION EXEMPT UNDER CODE SECTION 501(C)(3) WITH "H ELECTION," THE FOUNDATION ALSO UNDERTAKES LIMITED LOBBYING ACTIVITIES IN CERTAIN STATES TO AID IN THE PASSAGE OF LEGISLATION THAT ENABLES PARENTS TO RECEIVE A PUBLICLY FUNDED VOUCHER OR A TAX CREDIT FUNDED SCHOLARSHIP TO SEND THEIR CHILDREN TO APPROVED PRIVATE SCHOOLS. IN 2015, THESE ACTIVITIES INCLUDED ALLOCATING STAFF TIME FOR DIRECT LOBBYING TO STATE LEGISLATORS AND ENCOURAGING THE GENERAL PUBLIC TO SUPPORT SPECIFIC LEGISLATION. 109647 87714 21933 176934 137368 39566 61499 6613153 -524831 52101 -472730 7085883 7085883 6468211 52101 52101 6416110 6416110 PART X, LINE 2 FIN 48 DISCLOSURE: MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON ITS REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. PART XI, LINE 2D OTHER RECONCILING ITEMS: $ 52,101 FUNDRAISING EVENT EXPENDITURES PART XII, LINE 2D OTHER RECONCILING ITEMS: $ 52,101 FUNDRAISING EVENT EXPENDITURES East Asia and the Pacific Program Services EDUCATION EVENTS 2000 South America Program Services EDUCATION EVENTS 16000 Europe (Including Iceland and Greenland) Program Services EDUCATION EVENTS 8000 North America Program Services EDUCATION EVENTS 2000 Russia and the Newly Independent States Program Services EDUCATION EVENTS 1000 South Asia Program Services EDUCATION EVENTS 8000 Central America and the Caribbean Program Services EDUCATION EVENTS 1000 38000 38000 false false false false false false X X X X true FUENTES STRATEGIC CONSULTING INC FUNDRAISING CALIF. ONLY false 24450 60000 0 24450 60000 0 AL AK AR CA CO CT FL GA IL IN KS KY ME MD MA MI MN MS MO NH NJ NY NC ND OH OK OR PA RI TN UT VA WA WV WI U.E.O. DINNER 24450 17428 7022 18597 25000 8504 0 24450 17428 7022 18597 25000 8504 52101 -45079 PART I, LINE 2B HIGHEST PAID FUNDRAISER: THE FOUNDATION ENGAGED FUENTES STRATEGIC CONSULTING, INC., FOR THE FIRST TIME IN 2014. THIS ORGANIZATION IS WORKING ON DEVELOPING SIGNIFICANT NEW DONORS FOR THE FOUNDATION. THE FOUNDATION ANTICIPATES FUENTES GENERATING NEW DONORS FOR THE FOUNDATION IN 2016. true 100 Black Men of America Inc 141 Auburn Avenue Atlanta GA 30303 581974429 501(C)(3) 150000 SEE PART IV Advance America Inc 101 West Ohio Street Indianapolis IN 46204 351510587 501(C)(3) 20000 SEE PART IV Alabama Policy Institute Inc 402 Office Park Drive Birmingham AL 35223 630809568 501(C)(3) 20000 SEE PART IV Americans for Prosperity Foundation 2111 Wilson Blvd Arlington VA 22201 521527294 501(C)(3) 48000 SEE PART IV Beacon Center of Tennessee PO Box 198646 Nashville TN 37219 201808567 501(C)(3) 55000 SEE PART IV Black Alliance for Educational Options 888 16th Street NW Washington DC 20006 412045142 501(C)(3) 10000 SEE PART IV Caesar Rodney Institute 420 Corporate Blvd Newark DE 19702 262176691 501(C)(3) 36000 SEE PART IV Chalkbeat Inc 1250 Broadway New York NY 10001 900915846 501(C)(3) 25000 SEE PART IV Education Action Group Foundation 950 West Norton Muskegon MI 49441 260877115 501(C)(3) 70000 SEE PART IV Educational Choice Illinois 160 North Wacker Drive Chicago IL 60606 272479414 501(C)(3) 40000 SEE PART IV Empower Mississippi PO Box 4028 Madison MS 39130 464253610 501(C)(3) 10000 SEE PART IV Empower Mississippi Foundation PO Box 4028 Madison MS 39130 464565274 501(C)(3) 40000 SEE PART IV GreatSchools 1999 Harrison Suite 1100 Oakland CA 94105 943311628 501(C)(3) 35605 SEE PART IV Hispanic American Ctr for Economic Research 910 17th Street NW Washington DC 20006 541901356 501(C)(3) 10000 SEE PART IV Hispanic Coun for Reform and Ed Options 8461 Lake Worth Road Lake Worth FL 33467 743023330 501(C)(3) 25000 SEE PART IV Illinois Policy Institute 190 S LaSalle Street Chicago IL 60603 412057028 501(C)(3) 40000 SEE PART IV Institute for Quality Education 101 West Ohio Street Indianapolis IN 55425 351836687 501(C)(3) 200000 SEE PART IV Intellectual Takeout 8011 34th Ave South Bloomington MN 55425 264057885 501(C)(3) 50000 SEE PART IV Iowa Advocates for Choice in Education PO Box 12219 Des Moines IA 50312 208971204 501(C)(3) 30000 SEE PART IV Kansas Policy Institute 250 North Water Street Wichita KS 67202 237047821 501(C)(3) 41000 SEE PART IV Network for Educational Opportunity 8 North Main Street Concord NH 03301 770539599 501(C)(3) 25000 SEE PART IV Nevada Policy Research Institute 7130 Placid Street Las Vegas NV 89119 880276314 501(C)(3) 31000 SEE PART IV New Hampshire Center for Economic Policy 27 Locke Road Concord NH 03301 264378967 501(C)(3) 50000 SEE PART IV Oklahoma Council of Public Affairs Inc 1401 N Lincoln Blvd Oklahoma City OK 73104 731436375 501(C)(3) 96000 SEE PART IV Palmetto Promise Institute PO Box 12676 Columbia SC 29211 263077338 501(C)(3) 40000 SEE PART IV Parents for Educational Freedom in NC 434 Fayetteville Street Raleigh MA 27601 202754466 501(C)(3) 40000 SEE PART IV Platte Institute for Economic Research 900 South 74th Plaza Omaha NE 68114 208809060 501(C)(3) 15000 SEE PART IV RI Center for Freedom and Prosperity PO Box 10069 Cranston RI 02910 452805369 501(C)(3) 11000 SEE PART IV Thomas Jefferson Inst for Public Policy 9035 Golden Sunset Ln Springfield VA 22153 510280185 501(C)(3) 31500 SEE PART IV 29 PART I, LINE 2 MONITORING THE USE OF GRANT FUNDS: THE FOUNDATION ACCEPTS APPLICATIONS FOR GRANTS THAT CONFORM TO THE FOUNDATION'S TAX-EXEMPT PURPOSE AND EDUCATIONAL MISSION. APPLICATIONS MUST INCLUDE A DESCRIPTION OF THE PROJECT, AMOUNT REQUESTED, PROJECT BUDGET, METHOD TO EVALUATE SUCCESS, BOARD OF DIRECTORS LIST, AND FINANCIAL STATEMENTS. THE FOUNDATIONS PROGRAM STAFF REVIEWS THE REQUEST AND SUBMITS SUGGESTED GRANTS TO THE EXECUTIVE MANAGEMENT. AFTER APPROVAL, THE VICE PRESIDENT OF OPERATIONS REVIEWS THE REQUEST FOR PROPER DOCUMENTATION AND DRAFTS A GRANT AGREEMENT THAT REQUIRES ALL FUNDS BE USED IN FURTHERANCE OF A PERMISSABLE ACTIVITY UNDER CODE SECTION 501(C)(3), WHICH IS THEN SIGNED BY THE GRANTEE, AND THE PAYMENT IS MADE. PROGRAM STAFF WORKS CLOSELY WITH THE GRANTEE TO ENSURE COMPLIANCE WITH THE GRANT AGREEMENT AND ENSURE PROPER USE OF GRANT FUNDS. GRANTEES ARE REQUIRED TO SUBMIT A FINAL REPORT ON THE PROJECT, INCLUDING HOW FUNDS WERE USED, IN A TIMELY MANNER AS NOTED IN THE GRANT AGREEMENT. PART II, LINE 1, COLUMN H PURPOSE OF GRANT OR ASSISTANCE: *100 BLACK MEN OF AMERICA INC. - Support to educate, stimulate interest, and support members, parents and other community members regarding the need for high-quality education and education reform. *ADVANCE AMERICA INC. - Support for community outreach and education for school choice in Indiana, including mailing, meetings and six educational emails on school choice. *Alabama Policy Institute Inc. - Support for educational marketing and outreach to defend and promote the Alabama Accountability Act and to inform parents about educational funding opportunities available to them for their children's education. *Americans for Prosperity Foundation - Support to help build a coalition of support for school choice in West Virginia through educational outreach, events, and marketing activities. *Beacon Center of Tennessee - Support to update "Following the Money: A Tennessee Education Spending Primer,to produce marketing materials, web info-graphics and other promotional materials to educate taxpayers and parents about education spending. Also, Support to highlight spending by local school districts and promote MySchoolSpending.com through paid advertising and media. *Black Alliance for Educational Options - Support for the 2015 Symposium in honor of Dr. Howard Fuller. *Caesar Rodney Institute - Support for educating the Delaware public, supporters and policymakers on Education Savings Accounts. *Chalkbeat, Inc. - Support for reporting on education reform issues in Indiana, including school choice and charter schools. *Education Action Group Foundation - Support for in-depth investigative reporting on key education reform issues in Indiana and Nevada. *Educational Choice Illinois - General operating support for bipartisan partnership-building for school choice in Illinois, particularly for communications. *Empower Mississippi & Empower Mississippi Foundation - Support for statewide educational campaign about educational choice, including 3-4 events per week, radio ads, social media, postcards and educational materials. *GreatSchools - Support for the Indianapolis GreatSchools website including hosting and maintenance. *Hispanic Council for Reform and Educational Options (HCREO) - General operating funding for Latin-focused education and coalition building in Illinois. *Illinois Policy Institute - Support for parent outreach and education efforts on school choice options in Waukegan, Illinois. *Institute for Quality Education - General operating support for educational activities to promote school choice in Indiana. *Intellectual Takeout - Support for educational marketing on the need for and benefits of school choice to increase public awareness and support across Minnesota. *Iowa Advocates for Choice in Education - Support to hire a local lobbyist to assist with ESA efforts. *Kansas Policy Institute - General operating support for educational activities to promote school choice in Kansas. *Network for Educational Opportunity - Support for marketing and outreach to students and donors for New Hampshire's Education Tax Credit program. *Nevada Policy Research Institute - Support to conduct school choice research in Nevada, outreach to school choice constituencies, and to create a marketing campaign to inform the public on the need for school choice. *New Hampshire Center for Economic Policy - Support to educate school districts, parents, community leaders, and policymakers about the importance of New Hamphsire's town tuitioning system, and the current threat to this system. Grantee will produce studies, op-eds and online ads, host informational meetings, build support in the community, and support the legal effort to save town tuitioning. *Oklahoma Council of Public Affairs Inc - General operating support, including support for the Milton Friedman Distinguished Fellow. Also, General operating support for educational activities, including support for outreach to minority and rural communities. *Palmetto Promise Institute - Support to educate the public and school choice supporters on the Exceptional Needs Tax Credit Scholarship program. *Parents for Educational Freedom in North Carolina Inc. - General operating support for outreach to private schools and to educate families on accessing North Carolina's school choice programs. *Platte Institute for Economic Research - Support for outreach regarding Nebraska's education climate as well as hosting educational information sessions around the state. *Rhode Island Center for Freedom and Prosperity - Support for outreach to increase support for school choice, especially for hard-to-reach communities. *Thomas Jefferson Institute for Public Policy - Support to fund research evaluating the fiscal impact and savings of Virginia's tax credit scholarship program, to produce a study highlighting statewide achievement scores disaggregated by student demographics, and to support public outreach and education on the research findings. *THE FOLLOWING ORGANIZATIONS RECEIVED ADDITIONAL SUPPORT, WHICH IS INCLUDED IN THE AMOUNTS REPORTED ON PART II, TO HOST OR COORDINATE AN EVENT ON JULY 31, 2015, TO HONOR THE LEGACY OF MILTON FRIEDMAN AND HIS IDEAS: *Americans For Prosperity Foundation *Bluegrass Institute for Public Policy Solutions Inc *Caesar Rodney Institute *Hispanic American Center for Economic Research *Kansas Policy Institute *Nevada Policy Research Institute *Oklahoma Council of Public Affairs, Inc. *Rhode Island Center for Freedom and Prosperity *Thomas Jefferson Institute for Public Policy X X X X false false false false false false false false false ROBERT C ENLOW PRESIDENT AND CEO 252704 0 0 0 0 0 7104 0 12660 0 272468 0 0 0 LESLIE HINER V.P. OF PROGRAMS AND STATE 158300 0 0 0 0 0 4728 0 2268 0 165296 0 0 0 BRIAN MCGRATH SENIOR VICE PRESIDENT 140804 0 0 0 0 0 4200 0 12692 0 157696 0 0 0 FORM 990, PART V, LINE 1C COMPLIANCE WITH BACKUP WITHHOLDING RULES: THE FOUNDATION WAS NOT REQUIRED TO COMPLY WITH THE BACKUP WITHHOLDING RULES BECAUSE IT DID NOT MAKE REPORTABLE PAYMENTS TO VENDORS OR PAY REPORTABLE GAMING (GAMBLING) WINNINGS TO PRIZE WINNERS. FORM 990, PART VI, SECTION A, LINE 2 KEY OFFICER OR EMPLOYEE WITH FAMILY RELATIONSHIP WITH ANY OTHER OFFICER: JANET FRIEDMAN MARTEL AND DAVID D. FRIEDMAN ARE SIBLINGS. FORM 990, PART VI, SECTION B, LINE 11B PROCESS TO REVIEW THE FORM 990: THE FORM 990 IS COMPLETED BY AN OUTSIDE ACCOUNTING FIRM, IN CONJUNCTION WITH THE FOUNDATION'S VICE PRESIDENT OF OPERATIONS AND CONTROLLER. THE FORM 990 IS REVIEWED BY THE FOUNDATION'S PRESIDENT & CEO, VICE PRESIDENT OF OPERATIONS, CONTROLLER, SECRETARY, AN INDEPENDENT ACCOUNTING FIRM AND AN OUTSIDE ATTORNEY. UPON COMPLETION, THE FINAL FORM 990 IS SENT TO THE FULL BOARD OF DIRECTORS FOR REVIEW BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY: THE FOUNDATION'S BOARD OF DIRECTORS HAS ADOPTED A CONFLICT OF INTEREST POLICY THAT REQUIRES DIRECTORS, OFFICERS AND KEY EMPLOYEES TO SUBMIT AN ANNUAL CONFLICT OF INTEREST DISCLOSURE. THE ANNUAL DISCLOSURE REQUIRES DIRECTORS, OFFICERS AND KEY EMPLOYEES TO DISCLOSE, IN WRITING, ANY KNOWN FINANCIAL INTEREST THAT THE INDIVIDUAL (TOGETHER WITH FAMILY MEMBERS) HAS IN ANY BUSINESS ENTITY THAT TRANSACTS BUSINESS WITH THE FOUNDATION. IN ADDITION, DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO IMMEDIATELY DISCLOSE ANY POSSIBLE CONFLICT OF INTEREST THAT ARISES MID-YEAR IN RELATION TO A PROPOSED TRANSACTION. THE CONFLICT OF INTEREST POLICY REQUIRES THAT ANY INDIVIDUAL WITH A CONFLICT BE RECUSED FROM THE DECISION-MAKING PROCESS, THAT INDEPENDENT DIRECTORS DETERMINE WHETHER THE PROPOSED TRANSACTION IS IN THE BEST INTERESTS OF THE FOUNDATION, AND THE TRANSACTION MUST BE APPROVED BY A VOTE OF THE INDEPENDENT DIRECTORS WITHOUT THE PARTICIPATION OF ANY INTERESTED INDIVIDUAL. THE ANNUAL CONFLICT DISCLOSURE STATEMENTS ARE SUBMITTED TO, AND REVIEWED BY, THE FOUNDATION'S VICE PRESIDENT OF OPERATIONS. IN ADDITION, THE EXECUTIVE STAFF OF THE FOUNDATION ARE RESPONSIBLE FOR MONITORING ANY POSSIBLE CONFLICT TRANSACTIONS THAT ARISE AND MANAGING THEM TO ENSURE THAT ALL TRANSACTIONS REPRESENT ARMS' LENGTH, FAIR MARKET VALUE TERMS FOR THE BENEFIT OF THE FOUNDATION. FORM 990, PART VI, SECTION B, LINE 15A REVIEW OF CEO OR TOP MANAGEMENT OFFICIAL COMPENSATION: THE FOUNDATION'S BOARD OF DIRECTORS HAS ADOPTED AN EXECUTIVE COMPENSATION AND INTERMEDIATE SANCTIONS POLICY. THE PURPOSE OF THE POLICY IS TO ENSURE THAT THE FOUNDATION'S COMPENSATION ARRANGEMENTS WITH RELATED PARTIES ARE EVALUATED AND ENTERED AT ARMS' LENGTH AND THAT ANY COMPENSATION THAT IS PAID TO A RELATED PARTY IS REASONABLE AND REFLECTS FAIR MARKET VALUE. THE POLICY ENCOURAGES THE APPLICATION OF THE REBUTTABLE PRESUMPTION STANDARD OF CODE SECTION 4958 AND THE RELATED TREASURY REGULATIONS BY (A) EXCLUDING ANY INTERESTED PARTY FROM THE DECISION-MAKING PROCESS; (B) REQUIRING DISINTERESTED BOARD MEMBERS TO OBTAIN AND RELY UPON COMPARABILITY DATA WHEN SETTING THE PROPOSED COMPENSATION TERMS; (C) REQUIRING APPROVAL OF THE TRANSACTION IN ADVANCE BY DISINTERESTED DIRECTORS; AND (D) REQUIRING CONTEMPORANEOUS DOCUMENTATION (I.E., MINUTES) REFLECTING THE DECISION AND THE PROCESS BY WHICH IT WAS MADE. ON DECEMBER 14, 2015, INDEPENDENT MEMBERS OF THE BOARD OF DIRECTORS, MEETING AS A SEPARATE COMMITTEE EVALUATED THE COMPENSATION OF THE PRESIDENT/CEO, EVALUATED COMPARABILITY DATA, AND USED SUCH DATA TO SET HIS COMPENSATION FOR 2016. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC: THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 18 PAYMENTS FOR TRAVEL FOR PUBLIC OFFICIALS: PAYMENTS ARE FOR TRAVEL EXPENSES INCURRED DURING FACT-FINDING EDUCATIONAL TRIPS AND EDUCATIONAL SEMINARS HOSTED BY THE FOUNDATION. EXPENSES COVERED INCLUDED TRANSPORTATION, HOTEL AND MEALS. FORM 990 PART IX LINE 11G DESCRIPTION:INDEPENDENT CONTRACTORS TOTAL FEES:391470 FORM 990 PART IX LINE 11G DESCRIPTION:SUBSCRIPTION SERVICES TOTAL FEES:30689 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTANTS TOTAL FEES:300854 FORM 990 PART IX LINE 11G DESCRIPTION:EDITING & WRITING FEES TOTAL FEES:13160 FORM 990 PART IX LINE 11G DESCRIPTION:OTHER PROFESSIONAL FEES TOTAL FEES:12190