2012-06-05T10:38:15-05:00 2011-07-31 Deloitte Tax LLP 350 South Grand Ave Los Angeles CA 900713462 990 2010-08-01 956052058 National Academy of Recording Arts & Sciences Inc NATI 3103923777 3030 Olympic Blvd Santa Monica CA 904045073 Neil Portnow 3103923777 2012-05-29 1 Nazanin Benyamini 2136880800 2010 2016-02-24 21:20:13Z The Recording Academy Neil Portnow 3030 Olympic Blvd Santa Monica CA 904045073 60263844 0 X www.grammy.com; www.grammy.org; www.grammy365.com X 1987 DE Our mission is to advance the arts and sciences of recording and to foster creative leadership for artistic, cultural, educational, and technical progress in the recording field. A primary activity of The Recording Academy is the recognition of outstanding creative and technical achievements in the recording arts of those deemed to be most worthy by their colleagues through the annual presentation of the GRAMMY Awards. 41 41 149 500 39800 -23168 1633521 1431235 57440950 56620044 1134035 679213 240350 562080 60448856 59292572 4320467 3979208 0 0 13914357 12531346 0 0 0 55531370 40790179 73766194 57300733 -13317338 1991839 80923538 87037868 18189252 20979896 62734286 66057972 X Our mission is to advance the arts and sciences of recording and to foster creative leadership for artistic, cultural, educational, and technical progress in the recording field. A primary activity of The Recording Academy is the recognition of outstanding creative and technical achievements in the recording arts of those deemed to be most worthy by their colleagues through the annual presentation of the GRAMMY Awards. 0 0 The Recording Academy produces the GRAMMY awards, the only peer- presented award to honor artistic achievement, technical proficiency and excellence in the recording industry, without regard to album sales or chart position. 0 0 0 1 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 1 264 0 1 149 1 1 1 0 0 0 1 1 0 X 41 41 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 CA IL NY X Wayne Zahner 3103923777 3030 Olympic Blvd Santa Monica CA 904045073 George Flanigen 1.00 X 0 0 0 Christine Albert 1.00 X 0 0 0 Glenn Lorbecki 1.00 X 0 0 0 Mike Clink 1.00 X 0 0 0 Lamont Dozier 1.00 X 0 0 0 Sheila Sheila E Escovedo 1.00 X 0 0 0 Scott Bomar 1.00 X 0 0 0 Jody Stephens 1.00 X 0 0 0 Darrell Brown 1.00 X 9500 0 0 Pete Fisher 1.00 X 0 0 0 Fletcher Foster 1.00 X 0 0 0 Terry Hemmings 1.00 X 0 0 0 Scott Jacoby 1.00 X 0 0 0 Ruby Marchand 1.00 X 0 0 0 John Poppo 1.00 X 0 0 0 Beth Ravin 1.00 X 0 0 0 Karen Sherry 1.00 X 0 0 0 Steve Sterling 1.00 X 0 0 0 Sue Ennis 1.00 X 0 0 0 Nancy Rumbel 1.00 X 0 0 0 Terry Jones 1.00 X 0 0 0 Phil Nicolo 1.00 X 0 0 0 Larry Batiste 1.00 X 0 0 0 Stephen Hart 1.00 X 0 0 0 Katherine Kitty Margolis Montuori 1.00 X 0 0 0 Monique Headley 1.00 X 0 0 0 Daniel Workman 1.00 X 0 0 0 James McKinney 1.00 X 0 0 0 William Billy Zero Gallagher 1.00 X 0 0 0 Doug Frank 8110-53111 1.00 X 0 0 0 Dee Dee Murray 8110-53111 1.00 X 0 0 0 Alice Peacock 8110-53111 1.00 X 0 0 0 Maureen Crowe 8110-53111 1.00 X 0 0 0 Harvey Mason Jr 8110-53111 1.00 X 0 0 0 Tom Sturges 8110-53111 1.00 X 0 0 0 Cynthia Simien 8110-53111 1.00 X 0 0 0 Mark Bright 8110-53111 1.00 X 0 0 0 Phil Galdston 8110-53111 1.00 X 0 0 0 Paul Katz 8110-53111 1.00 X 0 0 0 Steve Mack 8110-53111 1.00 X 0 0 0 Greg Gordon 8110-53111 1.00 X 0 0 0 Leslie Ann Jones 8110-53111 1.00 X 0 0 0 James Jimmy Jam Harris 1.00 X 0 0 0 Bruce Burch 1.00 X 0 0 0 Glenn Schick 1.00 X 0 0 0 Anne Harris 1.00 X 0 0 0 John Johnny K Karkazis 1.00 X 0 0 0 Peter Strand 1.00 X 0 0 0 Carlos Alvarez 1.00 X 0 0 0 Eric Schilling 1.00 X 0 0 0 Michael Bearden 1.00 X 0 0 0 John Burk 1.00 X 0 0 0 Mike Knobloch 1.00 X 0 0 0 Gail Mitchell 1.00 X 0 0 0 Neil Portnow 40.00 X 925131 0 166237 Wayne Zahner 40.00 X 238664 0 23846 Nancy Shapiro 40.00 X 302385 0 31177 Evan Greene 40.00 X 248657 0 32747 Angelia Bibbs-Sandersthru June 2010 40.00 X 252548 0 26892 Branden Chapman 40.00 X 194147 0 25489 William Freimuth 40.00 X 177717 0 24017 Daryl Friedman 40.00 X 249574 0 28353 Gaetano Frizzi 40.00 X 184338 0 18142 Peter Anton 40.00 X 213559 0 32889 Rick Engdahl 40.00 X 171234 0 16648 Barbara Dehgan 40.00 X 158023 0 15845 Rickey Minor 1.00 X 115000 0 0 David Grossman through July 2010 40.00 X 412615 0 33297 3853092 0 475579 14 1 1 0 John Cossette Productions Inc 2040 Stoner Ave Los Angeles CA 900256109 Grammy Awards Production 9418025 Greenberg Traurig LLP 3290 Northside Parkway Atlanta GA 303272268 Legal Fees 2158253 Along Came Mary Events Inc 5265 West Pico Blvd Los Angeles CA 900194043 Event Production 791933 Proskauer Rose LLP 1585 Broadway New York NY 100368299 Legal Fees 682147 Bounce Event Marketing Inc 714 West Olympic Blvd Los Angeles CA 900151434 Event Production 654533 35 1431235 1431235 Telecast Related Incom 900099 40459446 40459446 Sponsorship Income 711130 7135842 7135842 Grammy Ticket Sales 711130 6055452 6055452 NARAS Related events 711130 2622473 2622473 Publications Income 541800 346831 307031 39800 56620044 528770 528770 461974 461974 1121715 971272 150443 150443 150443 Film clip 900099 42600 42600 Annuity Income 900099 8792 8792 48714 48714 100106 59292572 9033670 39800 48787867 3979208 2378418 7986489 157341 1271686 737412 5459157 334395 99000 86341 3263447 2558595 1497936 1083144 4423246 1502575 884898 1217078 298904 Event Production 11470373 Event Expenses 6135410 Entertainment 311854 Miscellaneous 163826 57300733 3300 3000 19168943 26938748 1439921 2096213 23168 1075731 673154 11528586 4386509 7665621 7142077 12530625 14391089 11368 12292 0 39004861 35781295 80923538 87037868 3252654 5449530 14542408 14988097 394190 542269 18189252 20979896 X 62734286 66057972 62734286 66057972 80923538 87037868 X 1991839 1331847 X 0 1 1 X 0 0 0 0 1431235 357736 357736 357809 -73 12530625 1860463 14391088 59878167 2000000 5781348 55000000 128890 12530625 64744138 -4457333 408638 59878167 1.00000 1 0 6937814 1684695 5253119 3025214 1880100 1145114 1565558 821714 743844 7142077 Airline and Hotel Barter Inventory 13458 Other Retirement Liability - 457(B) 104892 Due from Naras Foundation, Inc. 440530 Due from Musicares Foundation, Inc. 63171 Royalty Receivable due from Latin Academy of Recording Arts & Sciences, Inc. 95828 Due from Naras Properties, Inc. 34918111 Due from Latin Academy of Recording Arts & Sciences, Inc. 145305 35781295 Other Retirement Liability - 457(B) 104892 Pension Liability 436286 Due to Grammy Museum Foundation 1091 542269 Description of Intended Use of Endowment Funds: Part V, Line 4: The intended use for the endowment fund is to purchase assets to promote growth of the organization or to be held to provide operational support in case of a catastrophic event. Description of Uncertain Tax Positions Under FIN 48: Part X: The Recording Academy accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes. FASB ASC 740 prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken, or expects to take, on a tax return. During the years ended July 31, 2011 and 2010, The Recording Academy did not record any liability for unrecognized tax benefits. 1 Grammy Museum Foundation Inc 800 West Olympic Blvd A245 Los Angeles CA 900150000 261447714 501(c)(3) 70000 194790 FMV Printed advertising spots received as barter General support NARAS Foundation Inc 3030 Olympic Blvd Santa Monica CA 904040000 953199223 501(c)(3) 1296369 184096 FMV Grammy and other event tickets, barter assets, and rent Contributions, general and program service support MusiCares Foundation Inc 3030 Olympic Blvd Santa Monica CA 904040000 954470909 501(c)(3) 1969624 175716 FMV Grammy and other event tickets, barter assets, and rent Contributions, general and program service support City of Hope 1055 Wilshire Blvd Los Angeles CA 900170000 953435919 501(c)(3) 12015 General support Songwriters Hall of Fame 330 W 58th St 411 New York NY 100191820 237051690 501(c)(3) 10800 General support T J Martell Foundation 825 8th Avenue 19th Fl New York NY 100197416 510180178 501(c)(3) 7744 1000 FMV Event tickets General support Bread for the City 1525 7th St NW Washington DC 200013201 263407327 501(c)(3) 5000 General support Leadership Music PO Box 158010 Nashville TN 372158010 621404863 501(c)(3) 5299 General support 8 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Chapters of the The Recording Academy make donations to various charitable organizations in their respective communities. The chapters, either through their local charitable giving committee or local executive committee, put forth a proposal for the local chapter board to approve donations of their special project funds to be used for this purpose. These funds are the accumulation of funds based on events held at the local level. These chapter-approved disbursements are then sent to the national Finance Sub-Committee for final approval. A presentation is made disclosing information about the beneficiary, its tax-exempt status, the nature of the use of the funds and other pertinent information. The national headquarters of The Recording Academy sponsors various charities, in the communities its serves, through purchases of tables at events and/or advertisements in program books and from time-to-time minimal cash donations. The Recording Academy provides assistance to its affiliated entities: MusiCares Foundation, Inc., NARAS Foundation, Inc. and Grammy Museum Foundation, Inc. X 1 1 X X X X X 1 1 0 Neil Portnow 876467 0 0 0 48664 0 155115 0 11122 0 1091368 0 0 0 Wayne Zahner 233688 0 1750 0 3226 0 5400 0 18446 0 262510 0 0 0 Nancy Shapiro 241565 0 56285 0 4535 0 17974 0 13203 0 333562 0 0 0 Evan Greene 242171 0 1750 0 4736 0 8745 0 24002 0 281404 0 0 0 Angelia Bibbs-Sandersthru June 2010 121278 0 0 0 131270 0 12067 0 14825 0 279440 0 0 0 Branden Chapman 189243 0 1750 0 3154 0 8463 0 17026 0 219636 0 0 0 William Freimuth 171243 0 1750 0 4724 0 7073 0 16944 0 201734 0 0 0 Daryl Friedman 242971 0 1750 0 4853 0 12934 0 15419 0 277927 0 0 0 Gaetano Frizzi 177851 0 1750 0 4737 0 7760 0 10382 0 202480 0 0 0 Peter Anton 206863 0 1750 0 4946 0 9081 0 23808 0 246448 0 0 0 Rick Engdahl 166159 0 1750 0 3325 0 8341 0 8307 0 187882 0 0 0 Barbara Dehgan 151587 0 1750 0 4686 0 7605 0 8240 0 173868 0 0 0 Rickey Minor 115000 0 0 0 0 0 0 0 0 0 115000 0 0 0 David Grossman through July 2010 220927 0 0 0 191688 0 9302 0 23995 0 445912 0 0 0 Part I, Line 1a The Recording Academy has a written policy regarding the circumstances in which first class travel may be used. The organization makes it a practice to routinely use business or coach airline travel. Additionally, The Recording Academy receives, as part of its sponsorship income, barter tickets for first class, business and coach airline travel. The Recording Academy also has a practice to utilize barter tickets first for business or coach airline travel except when travel time exceeds a certain length or if barter travel is inconvenient or not available. The President/CEO and elected officers are permitted to fly first class, although they are encouraged to fly business class if available prior to booking in first class. Further, these individuals are also encouraged to use coach class travel for very short trips. Other members of senior management are only allowed to fly business or first class if they use barter. Non-barter flights are required to be booked in coach. Part I, Lines 4a-b During 2010,the employment relationships of David Grossman and Angelia Bibbs-Sanders with The Recording Academy were ended. In connection with the termination of employment, The Recording Academy negotiated and paid a confidential severance to Mr. Grossman and to Ms. Bibbs-Sanders that was in accordance with the organization's standard practice in similar situations, as well as standards within the industry. The severance payment is reported in column B(III) "other reportable compensation." Part I, Lines 4a-b Part I, Line 4b: Neil Portnow participated in The Recording Academy's Supplemental Employee Retirement Benefit Plan ("SERP"), which is considered to be a supplemental nonqualified retirement plan under IRC section 457(f). Amounts deferred under the Section 457(f) plan are subject to substantial risk of forfeiture. These amounts will be reported as compensation for the year paid. Mr. Portnow was not paid any amounts during calendar year 2010 as his participation was still subject to substantial risk of forfeiture. Schedule J, Part II, Column C for Mr. Portnow includes $141,040 of Section 457(f) deferred compensation that was accrued, but not received. Additionally, the $141,040 amount represents a reasonable estimate of the accrual for calendar year 2010 as the actual number is not readily available. 9500 0 Rickey Minor Former Trustee 115000 Music Director of Pre-Grammy Gala 0 Form 990, Part VI, Section A, line 1 The Executive Committee is comprised of the Chair of the Board of Trustees, Vice Chair of the Board of Trustees, Secretary/Treasurer of the Board of Trustees, Chair Emeritus of the Board of Trustees and four (4) sitting Trustees selected by the Chair of the Board of Trustees in consultation with the President/Chief Executive Officer and ratified by the Board of Trustees. They are granted unilateral rights to conduct business on behalf of the Board of Trustees. Any such action shall be communicated to the entire Board as promptly as the Executive Committee deems reasonably practicable. Such actions shall not include: (a)Altering major legal documents such as, but not limited to, the Certificate of Incorporation, Bylaws, or Governance Manual; (b)Authorizing mergers (other than a merger of any wholly-owned subsidiary with The Recording Academy), acquisitions, joint ventures, consolidations or dissolutions; or approving the sale, lease, exchange or encumbrance of any material asset of The Recording Academy that is not in the ordinary course of business of The Recording Academy; (c)Forming or dissolving standing and Trustee-only committees of the Board, or amending the charter of any committee; (d)Taking any actions that have been expressly, by charter or resolutions, delegated to any other Trustee-only committee; and (e)Amending or repealing any resolution of the Board. Form 990, Part VI, Section A, line 2 Business relationship: Steve Sterling and Phil Galdston Business relationship: Glenn Lorbecki, James Harris, Neil Portnow, Wayne Zahner, Branden Chapman and David Grossman Business relationship: John Burke, Harvey Mason, Tom Sturgis Form 990, Part VI, Section A, line 6 There are three categories of members of The Recording Academy: (a) Voting Members; (b) Associate members; and (c) Student Members. Each Membership Class has its own rights and established criteria for participation as set forth by the organization's Bylaws. Form 990, Part VI, Section A, line 7a The Voting Members from each Chapter shall constitute a separate Membership Class (the "Chapter Voting Member Membership Class") at the time and, as such, shall elect the Voting Member Governors from such Chapter by a Plurality Vote of qualified returned ballots equal to not less than ten percent of the total number of Members of such Membership Class. The Voting Members and Associate Members from each Chapter at the time shall constitute a separate Membership Class (the "Chapter Voting Member and Associate Member Membership Class") and, as such, shall elect the Associate Member Governors from such Chapter by a Plurality Vote of qualified return ballots equal to not less than ten percent of the total number of Members of such Membership Class. Voting Member Governors and Associate Member Governors from each Chapter. The Members from each Chapter who at the time are Voting Member Governors and Associate Member Governors shall constitute a separate Membership Class (the "Chapter Governor Membership Class"). The Chapter Governor Membership Class shall elect (a) the Trustees from such Chapter by a Plurality Vote of a Majority of the Membership Class eligible to vote and (b) the Chapter Officers of such Chapter by a Plurality Vote of a Majority of the Membership Class eligible to vote, and shall have the power to remove such persons from office. Trustees. The Members who at the time are Trustees shall constitute a separate Membership Class (the "Trustee Membership Class"). During the period a person is in office as a Trustee Officer, such person will also be a Trustee. The Trustee Membership Class shall (a) elect the Trustee Officers by a Majority Vote of a Supermajority Quorum; (b) have the power, by a Supermajority Vote of a Supermajority Quorum, (i) to remove any Trustee from office (ii) to remove any Trustee Officer from office and (iii) to remove any Governor from office; (c) have the power to ratify the committee nominations; and (d) have the power to approve, adopt, vote on, consent with respect to, or ratify such matters or actions that the Chair or the Executive Committee decides to submit to the Trustee Membership Class for such action. Voting Member Governors and Associate Member Governors from all Chapters. The Members from all Chapters who at the time are Voting Member Governors and Associate Member Governors shall constitute a separate Membership Class (the "Governor Membership Class"). The Governor Membership Class shall have the right to vote on any Major Matter, and approval will require a Supermajority Vote of a Supermajority Quorum. Form 990, Part VI, Section A, line 7b See classes of membership as described in Schedule O, Form 990, Part VI, Section A, line 7a. Form 990, Part VI, Section B, line 11 Form 990 is prepared by Deloitte Tax, LLP, working in conjunction with the organization's finance department. The draft of the Form 990 is reviewed by the organization's management. The initial draft of the Form 990 is then provided to The Recording Academy's audit committee for their review. Any comments resulting from their review are incorporated into the final filing of the Form 990. The audit committee has been authorized by the Board of Trustees to review the tax filings and approve them to be filed. Form 990, Part VI, Section B, line 12c The Corporate Secretary distributes the Statement of Conflict of Interest Policy at each Fall Trustees Meeting. The statements are collected by the Corporate Secretary and then a summary report is given to the Chair of the Board of Trustees and the President/Chief Executive Officer. Accordingly, the Chair of the Board of Trustees as well as the President/Chief Executive Officer are 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/CEO compensation was determined by the Executive Committee of the Board of Trustees, functioning as a Compensation Committee for this purpose. The decision was then ratified by the Board of Trustees. The Committee relied upon the advice and expertise of legal counsel, an independent outside compensation consultant and comparability data in determining the compensation. The meeting in which those deliberations were conducted was contemporaneously documented. 15b)Compensation for other employees of National Academy of Recording Arts & Sciences, Inc. is set by the President/Chief Executive Officer, Chief Financial Officer and Vice President of Human Resources. Compensation is determined by the review of the compensation of other employees at similar levels. Information from outside organizations is gathered by the Vice President of Human Resources and by a general knowledge of what is expected for the position by these three individuals. As it relates to annual increases, the Vice President of Human Resources and the Chief Financial Officer have discussed benchmarking with the Chief Financial Officer of a similar organization and other persons in their Human Resources management. Agreement is obtained between these three individuals (CEO, CFO, VP of HR) as to the value of services provided. Form 990, Part VI, Section C, line 19 The organization does not make its governing documents, conflict of interest policy, and financial statements available to the public. Form 990, Part X, Lines 11 and 13 Amounts reported as Program Related Investments in the prior year column of Part X of Form 990 have been recategorized to Publicly Traded Securities. Total Assets in the prior year column remains the same. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized gains on investments: 1,331,847. Form 990, Part XII, Line 2a & 2b: The organization's financial statements were audited as part of the combined financial statements that included NARAS Properties, Inc., a related tax-exempt organization. NARAS Properties Inc 3030 Olympic Blvd Santa Monica CA 904045073 954516666 Hold title to Real Property CA 501(c)(2) N/A National Academy of Recording Arts & Sciences Inc 1 NARAS Foundation Inc 3030 Olympic Blvd Santa Monica CA 904045073 953199223 Advancement of music CA 501(c)(3) Line 7 N/A 0 Grammy Museum Foundation 800 W Olympic Blvd Suite A245 Los Angeles CA 900150000 261447714 Explores and celebrates all Forms of music CA 501(c)(3) Line 11, aI National Academy of Recording Arts & Sciences Inc 1 0 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 1 0 NARAS Properties Inc D 380000 Cash NARAS Properties Inc J 2334239 Based on leased lantana bldg NARAS Properties Inc N 68400 Bldg maintenance & accounting NARAS Properties Inc Q 313834 Rent contributions The Grammy Museum Foundation B 264790 contribution of ads and cash NARAS Foundation Inc B 1480465 Contribution of cash and rent NARAS Foundation Inc N 131221 Shared employees NARAS Foundation Inc P 155669 Shared operating expenses Schedule R, Part V, Column (d) NARAS Properties, Inc., a related Section 501(c)(2) tax-exempt organization controlled by The Recording Academy, owns the corporate headquarters in Santa Monica, California used by The Recording Academy and its affiliated tax-exempt organizations. The Recording Academy paid rent for its use and contributed to MusiCares Foundation, Inc. and NARAS Foundation, Inc., rent for their use of the corporate headquarters. The value of the rent was determined based on comparables of similar properties. Value of donated advertising is based on rate card from the publication. Value of building maintenance & accounting, shared employees, and shared operating expenses based on allocation of actual expenses.