2021-11-05T11:03:09-05:00 2020-12-31 410746749 CLIFTONLARSONALLEN LLP 6501 AMERICAS PARKWAY NE SUITE 500 ALBUQUERQUE NM 87110 990 2020-01-01 850325494 SANTA FE INSTITUTE SANT 5059848800 1399 HYDE PARK ROAD SANTA FE NM 87501 DAVID KRAKAUER PRESIDENT 5059848800 2021-11-04 1 DAVID KRAKAUER 999009999 STEPHEN LIVINGSTON P00317845 5058428290 2021-11-04 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z DAVID KRAKAUER 1399 HYDE PARK ROAD SANTA FE NM 87501 25118650 0 X HTTP://WWW.SANTAFE.EDU X 1984 NM INDEPENDENT NOT-FOR-PROFIT RESEARCH AND EDUCATION. 26 26 76 26 0 0 7269723 9842240 1791124 1283410 1260138 1203923 0 0 10320985 12329573 187218 87796 0 0 7092899 7421970 0 0 226200 5231521 3003940 12511638 10513706 -2190653 1815867 49920847 51200417 1061911 4183575 48858936 47016842 X THE SANTA FE INSTITUTE IS A TRANSDISCIPLINARY RESEARCH COMMUNITY THAT EXPANDS THE BOUNDARIES OF SCIENTIFIC UNDERSTANDING. ITS AIM IS TO DISCOVER, COMPREHEND, AND COMMUNICATE THE COMMON FUNDAMENTAL PRINCIPLES IN COMPLEX PHYSICAL, COMPUTATIONAL, BIOLOGICAL, AND SOCIAL SYSTEMS THAT UNDERLIE MANY OF THE MOST PROFOUND PROBLEMS FACING SCIENCE AND SOCIETY TODAY. 0 1 6008180 87796 1283410 SEE SCHEDULE O 6008180 1 1 0 0 0 0 1 1 0 1 1 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 90 0 1 76 1 0 0 0 0 0 0 0 0 0 0 0 0 X 26 26 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 NM X X MATTHEW J BECHTEL 5059462790 1399 HYDE PARK ROAD SANTA FE NM 87501 MICHAEL MAUBOSSIN CHAIR OF THE BOARD 2.50 X X 0 0 0 KATHERINE COLLINS TREASURER AND VICE CHAIR 1.00 X X 0 0 0 GARY BENGIER TRUSTEE 0.50 X 0 0 0 ROSS BUHRDORF TRUSTEE 0.50 X 0 0 0 JOHN CHISHOLM TRUSTEE 0.50 X 0 0 0 DARLA MOORE TRUSTEE 0.50 X 0 0 0 ELIZABETH DAVIS TRUSTEE 0.50 X 0 0 0 FRED DOTZLER TRUSTEE 0.50 X 0 0 0 BILL GURLEY TRUSTEE 0.50 X 0 0 0 JOHN HAGEL III TRUSTEE 0.50 X 0 0 0 MARI KOOI TRUSTEE 0.50 X 0 0 0 ROBERT MAXFIELD TRUSTEE 0.50 X 0 0 0 CORMAC MCCARTHY TRUSTEE 0.50 X 0 0 0 IAN MCKINNON TRUSTEE 0.50 X 0 0 0 JOHN H MILLER EX OFFICIO 10.00 X 0 0 0 JERRY MURDOCK TRUSTEE 0.50 X 0 0 0 GERRY OHRSTROM TRUSTEE 0.50 X 0 0 0 PIERRE OMIDYAR TRUSTEE 0.50 X 0 0 0 JAMES PALOTTA TRUSTEE 0.50 X 0 0 0 SAM PETERS TRUSTEE 0.50 X 0 0 0 TOBY SHANNAN TRUSTEE 0.50 X 0 0 0 JIM RUTT TRUSTEE 0.50 X 0 0 0 WILLIAM SICK TRUSTEE 0.50 X 0 0 0 GRAHAM SPENCER TRUSTEE 0.50 X 0 0 0 EUGENE STARK TRUSTEE 0.50 X 0 0 0 VIJAY ULLAL TRUSTEE 0.50 X 0 0 0 JOSH WOLFE TRUSTEE 0.50 X 0 0 0 DAVID KRAKAUER PRESIDENT 37.50 X 398815 0 43038 JANET GUNN SECRETARY/VP - ADMIN 37.50 X 130621 0 41984 MATTHEW BECHTEL DIRECTOR FINANCE & ACCOUNTING 37.50 X 114704 0 19354 JENNIFER DUNNE VP - SCIENCE 37.50 X 220101 0 40023 WILLIAM M TRACY VP - STRATEGIC PARTNERSHIPS 37.50 X 172215 0 11963 MIRTA GALESIC PROFESSOR 37.50 X 171125 0 24488 GEOFFREY WEST DISTINGUISHED PROFESSOR 37.50 X 266272 0 34545 SIDNEY REDNER PROFESSOR 37.50 X 200970 0 28459 DAVID WOLPERT PROFESSOR 37.50 X 167539 0 32204 MELANIE MITCHELL PROFESSOR 37.50 X 177845 0 43605 2020207 0 319663 16 0 1 0 JOSEPH C NERO 4 STORM VIEW LN SANTA FE NM 87506 CONSTRUCTION 263396 JM EVANS CONSTRUCTION PO BOX 1686 SANTA FE NM 87504 CONSTRUCTION 227139 ACTION ASPHALT 2003 SOUTHERN BLVD NE STE 102-331 RIO RANCHO NM 87124 CONSTRUCTION 143630 MOSS ADAMS LLP PO BOX 101822 PASADENA CA 91189 ACCOUNTING PROFESSIONAL SERVICES 100837 4 2632824 7209416 124597 9842240 ACTION (FORMERLY ENET) 541700 1259130 1259130 TUITION 541700 24280 24280 1283410 713791 713791 13279209 12789077 490132 490132 490132 12329573 1283410 0 1203923 X 87796 87796 1192819 242385 746022 204412 5230758 3698333 1530947 1478 98245 84682 13563 528740 334044 186895 7801 371408 212497 147898 11013 189138 189138 840662 359459 481203 13760 13760 246940 70466 176450 24 250723 86467 164256 67964 50753 17211 159373 157411 1636 326 48563 48563 357430 266915 90515 147852 810 147042 SUPPLIES 134124 52810 81314 STIPENDS 129346 129346 MISCELLANEOUS EXPENSES 105141 27616 77525 LODGING 84306 77969 5956 381 228618 68421 159432 765 10513706 6008180 4279326 226200 1474486 2567286 534102 387415 1026809 2325472 623700 1596058 324198 219958 11627 2689 19417794 6981934 11971304 12435860 33408765 31119425 545856 546254 49920847 51200417 930744 939810 131167 215707 3028058 1061911 4183575 X 9781799 9716036 39077137 37300806 48858936 47016842 49920847 51200417 X 1815867 -3657962 1 X X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 4 33.00 0 0 1 1 40.00 1000 0 546254 0 0 X 0 14444017 -1381602 571952 12490463 11673110 3297919 527012 14444017 14710997 -2516807 521080 11673110 9200178 3000000 2965734 454915 14710997 7575361 1254887 824845 454915 9200178 0.00000 0.96860 0.03140 0 0 4774192 4774192 12155853 5371941 6783912 238997 152172 86825 1732062 1451687 280375 516690 6134 510556 12435860 X 8482473 -3657962 -3657962 12140435 189138 189138 12329573 10324568 0 10324568 189138 189138 10513706 PART II, LINE 5: AT LEAST ANNUALLY, THE INDIVIDUAL RESPONSIBLE FOR SFI FACILITIES WILL MONITOR AND INSPECT ANY AND ALL CONSERVATION EASEMENTS. SFI, ITS STAFF, AND ITS CONTRACTORS WILL COOPERATE WITH THE SANTA FE CONSERVATION TRUST (SFCT) TO PROVIDE ACCESS FOR SFCT INSPECTIONS AND TO SEEK THEIR GUIDANCE TO ENSURE COMPLIANCE. ANY AND ALL VIOLATIONS OF THE EASEMENT WILL BE BROUGHT TO THE ATTENTION OF SENIOR MANAGEMENT. SFI WILL TAKE APPROPRIATE ACTIONS TO CORRECT ANY VIOLATIONS, INCLUDING COMPELLING OTHERS TO MAINTAIN COMPLIANCE WITH THE EASEMENT OR RESTRICTING THEIR ACCESS IF THEY FAIL TO COMPLY. PART II, LINE 9: THE CONSERVATION EASEMENTS REFERENCED IN PART II OF SCHEDULE D CONTAIN RESTRICTIONS PLACED ON THE USE OF PROPERTY THAT WAS DONATED TO THE INSTITUTE. THESE RESTRICTIONS WERE CONSIDERED BY APPRAISERS IN DETERMINING THE VALUE OF THE DONATED PROPERTY. THE FOOTNOTES TO THE INSTITUTE'S FINANCIAL STATEMENTS THAT ADDRESS THE ACCOUNTING FOR DONATED PROPERTY ARE AS FOLLOWS: REVENUE RECOGNITION - THE INSTITUTE REPORTS GIFTS OF LAND, BUILDINGS, AND EQUIPMENT AS SUPPORT WITHOUT DONOR RESTRICTIONS UNLESS RESTRICTIONS ARE PLACED ON THE ASSET BY THE DONOR. GIFTS OF LONG-LIVED ASSETS WITH EXPLICIT RESTRICTIONS THAT SPECIFY HOW THE ASSETS ARE TO BE USED AND GIFTS OF CASH OR OTHER ASSETS THAT MUST BE USED TO ACQUIRE LONG-LIVED ASSETS ARE REPORTED AS SUPPORT WITH DONOR RESTRICTIONS. ABSENT EXPLICIT DONOR STIPULATIONS ABOUT HOW LONG THOSE LONG-LIVED ASSETS MUST BE MAINTAINED, THE INSTITUTE REPORTS EXPIRATIONS OF DONOR RESTRICTIONS WHEN THE DONATED OR ACQUIRED LONG-LIVED ASSETS ARE PLACED IN SERVICE. PROPERTY AND EQUIPMENT - PROPERTY AND EQUIPMENT ARE STATED AT COST OR FAIR MARKET VALUE WHEN RECEIVED, IF DONATED. PROVISION FOR DEPRECIATION IS COMPUTED USING THE STRAIGHT-LINE METHOD OVER THE ESTIMATED USEFUL LIFE OF THE PROPERTY. PART III, LINE 4: ART COLLECTION MAY OR MAY NOT BE ON PUBLIC DISPLAY THROUGHOUT THE INSTITUTE. ART IS PURELY FOR DECORATION PURPOSES TO ENHANCE THE BEAUTY OF THE INSTITUTE. PART V, LINE 4: THE INSTITUTE'S ENDOWMENT CONSISTS OF A SINGLE POOLED FUND. ALL ENDOWMENTS ARE CLASSIFIED AS NET ASSETS WITH DONOR RESTRICTIONS AS PER THE ENDOWMENT AGREEMENTS. INCOME IS AVAILABLE AND USED FOR PURPOSES DEEMED APPROPRIATE BY THE INSTITUTE SUBJECT TO USE RESTRICTIONS IMPOSED BY DONOR GIFT AGREEMENTS INFORMED BY INTERNAL POLICIES. AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP), NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. APPROPRIATION OF FUNDS IS DETERMINED, IN PART, BASED ON DONOR STIPULATIONS AND APPROVED BY THE INSTITUTE'S FINANCE COMMITTEE. PART X, LINE 2: THE INSTITUTE FILES AN EXEMPT ORGANIZATION RETURN IN THE U.S. FEDERAL JURISDICTION. THE INSTITUTE HAS NO UNRECOGNIZED TAX BENEFIT WHICH WOULD REQUIRE AN ADJUSTMENT TO THE JANUARY 1, 2020 BEGINNING BALANCE OF NET ASSETS AND HAD NO UNRECOGNIZED TAX BENEFITS AT DECEMBER 31, 2020. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 SCHEDULE E, PART I, LINE 3 ALL RECRUITMENT, ADVERTISING, OR OTHER SOLICITATIONS INCLUDE SFI'S NONDISCRIMINATORY POLICY, NO LESS THAN ANNUALLY. LINE 6 - EXPLANATION OF GOVERNMENT FINANCIAL AID: THE ORGANIZATION RECEIVES GOVERNMENT GRANTS TO SUPPORT RESEARCH ON VARIOUS SCIENTIFIC TOPICS THAT THE ORGANIZATION SUPPORTS. 1 WASHINGTON STATE UNIVERSITYSTATE OF WASHINGTON PO BOX 641025 PULLMAN WA 991641025 916001108 WA GOVERNMENTAL 34869 INFORMATION NETWORKS UNIVERSITY OF MARYLAND COLLEGE PARK COLLEGE PARK COLLEGE PARK MD 207423135 526002033 MD GOVERNMENTAL 939 COMPUTATIONAL PHYSICS UNIVERSITY OF SOUTHERN CALIFORNIA 3500 FIGUEROA ST SUITE 102 LOS ANGELES CA 90089 951642394 501(C)(3) 51988 PREDICTION/SURVEY RESEARCH 3 0 PART I, LINE 2: BASED ON COLLABORATIVE PROPOSALS SUBMITTED WITH SUBAWARDEES, FINANCIAL MANAGEMENT SYSTEMS QUESTIONNAIRES, POLICIES AND PROCEDURES ON SUBRECIPIENT MONITORING, STATEMENTS OF THE SCOPE OF WORK, AND BUDGET PROPOSALS, THE ORGANIZATIONS SET UP SUB-AWARD AGREEMENTS WITH EACH SUBAWARDEE. EACH SUBWARDEE SIGNS AND CERTIFIES COMPLIANCE WITH THE AGREEMENT, WHICH IS MAINTAINED THROUGHOUT THE PERIOD OF PERFORMANCE. SANTA FE INSTITUTE REVIEWS ON, AT LEAST, AN ANNUAL BASIS THE SUBAWARDEE'S DATA COLLECTION FORMS FOR REPORTING ON AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT ORGANIZATIONS, FINANCIAL STATEMENTS, AND OTHER ACCOUNTING DOCUMENTS TO DETERMINE HOW GRANTS WERE SPENT, BUDGET COMPLIANCE, AND IF ANY AUDIT FINDINGS RELATING TO THE EXPENDITURE OF THE SUB-AWARD WERE NOTED IN THE TAX RETURN AND/OR FINANCIAL STATEMENTS. X X X X 0 0 0 0 0 0 0 1 0 DAVID KRAKAUER PRESIDENT 289638 0 0 0 109177 0 26000 0 17038 0 441853 0 0 0 GEOFFREY WEST DISTINGUISHED PROFESSOR 265272 0 0 0 1000 0 25424 0 9121 0 300817 0 0 0 JENNIFER DUNNE VP - SCIENCE 164101 0 56000 0 0 0 26000 0 14023 0 260124 0 0 0 SIDNEY REDNER PROFESSOR 199970 0 0 0 1000 0 13734 0 14725 0 229429 0 0 0 MELANIE MITCHELL PROFESSOR 176845 0 0 0 1000 0 26000 0 17605 0 221450 0 0 0 DAVID WOLPERT PROFESSOR 167539 0 0 0 0 0 26000 0 6204 0 199743 0 0 0 MIRTA GALESIC PROFESSOR 144479 0 26646 0 0 0 7023 0 17465 0 195613 0 0 0 WILLIAM M TRACY VP - STRATEGIC PARTNERSHIPS 139615 0 32600 0 0 0 6665 0 5298 0 184178 0 0 0 JANET GUNN SECRETARY/VP - ADMIN 130621 0 0 0 0 0 25902 0 16082 0 172605 0 0 0 PART I, LINE 3 THE PRESIDENT'S COMPENSATION IS DETERMINED BY A LETTER AGREEMENT NEGOTIATED BY THE TRUSTEES. IN NEGOTIATING THE AGREEMENT, THE TRUSTEES USE COMPARABILITY DATA FROM VARIOUS ACADEMIC INSTITUTIONS AND OTHER RELEVANT PERIODICALS AND STUDIES. ANNUALLY, THE TRUSTEES EVALUATE THE PRESIDENT'S PERFORMANCE IN THE COMPENSATION REVIEW. THESE ACTIONS ARE DOCUMENTED IN THE MINUTES OF THE MEETINGS. THE PROCESS OF EVALUATING COMPARABLE DATA WAS LAST DONE IN 2017. THE COMPENSATION PROCESS FOR OTHER OFFICERS, INCLUDING: VICE PRESIDENTS AND BOARD SECRETARY, IS DETERMINED BY THE PRESIDENT USING COMPARABILITY DATA FROM SIMILAR ACADEMIC INSTITUTIONS AND OTHER RELEVANT PERIODICALS AND STUDIES, AS APPROPRIATE. PART I, LINE 7 SOME BONUSES WERE PAID TO EMPLOYEES WHO ENGAGED IN ACTIVITIES THAT WERE ABOVE AND BEYOND THE NORMAL SCOPE OF BUSINESS, ESPECIALLY AS A RESULT OF COVID-19 RESTRICTIONS. DAVID KRAKAUER PRESIDENT PRESIDENT 3 NOTES - SEE SCHEDULE O. X 500000 219958 0 1 1 219958 X 2 124597 FAIR MARKET VALUE 2 0 1 0 PART I, COLUMN (B): NUMBER OF DONORS LISTED FORM 990, PART III, LINE 3 NEW 'FLASH WORKSHOPS', PODCASTS, AND ONLINE SERVICE DELIVERIES WERE INTEGRATED IN 2020 AS A RESULT OF THE COVID-19 PANDEMIC. FORM 990, PART III, LINE 4A, DESCRIPTION OF PROGRAM SERVICE: SCIENTIFIC RESEARCH, WORKSHOPS AND EDUCATIONAL ENDEAVORS ON VARIOUS RESEARCH TOPICS. RESEARCH IS UNDERTAKEN FOR THE PUBLIC INTEREST AND IS NOT INTENDED FOR THE PRIMARY BENEFIT OF A PRIVATE PERSON OR ORGANIZATION. PEOPLE ARE SFI'S FOUNDATION: SFI MAINTAINED 12 RESIDENT FACULTY, 15 POST-DOCTORAL RESEARCHERS, AND ADDED ANOTHER 13 NEW EXTERNAL FACULTY DURING THE PANDEMIC DESPITE RESTRICTIONS IN PLACE ON IN PERSON MEETINGS AND WORKSHOPS/WORKING GROUPS. DESPITE THE PANDEMIC, SFI HAS MANAGED TO HOST 213 IN PERSON VISITORS, ALONG WITH 39 MEETINGS, 78 SEMINARS, 24 POST-DOCTORAL VIRTUAL SESSIONS, AND 100'S OF UNIQUE VIRTUAL PARTICIPANTS ACROSS MULTIPLE EVENTS. SFI RECEIVED AN ADDITIONAL 13 FEDERAL, FOUNDATION, AND INTERNATIONAL GRANTS IN 2020. 36 PODCASTS LED BY DAVID KRAKAUER, THE TRANSMISSION SERIES, WERE CONDUCTED IN 2020, ALONG WITH A NEW CATEGORY OF 'FLASH WORKSHOPS' RELATED TO COVID-19, CONDUCTED BY VARIOUS SFI FACULTY AND RESEARCHERS. 2020 ALSO WITNESSED THE OPENING OF THE NEW MILLER CAMPUS IN TESUQUE, NM, AS WELL AS THE OPENING OF A NEW 'POD' HOUSING FACULTY AT THE EXISTING COWAN CAMPUS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED BY SENIOR MANAGEMENT AND SUBMITTED TO THE AUDIT COMITTEE FOR REVIEW AND APPROVAL. THE COMPLETED FORM 990 IS PRESENTED TO ALL MEMBERS OF THE BOARD OF TRUSTEES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES, MANAGEMENT, AND BOARD MEMBERS ARE SUBJECT TO THE CONFLICT OF INTEREST POLICY. EMPLOYEES AND MANAGEMENT ATTEST TO THEIR INDEPENDENCE WHEN HIRED AND ARE REQUIRED TO INFORM THE ORGANIZATION SHOULD THEIR SITUATION CHANGE. BOARD MEMBERS RECEIVE THE CONFLICT OF INTEREST POLICY UPON APPOINTMENT AND ARE REQUIRED TO ATTEST TO THEIR INDEPENDENCE ANNUALLY. CONFLICT DETERMINATIONS ARE MADE AND REVIEWED BY MANAGEMENT OR THE CHAIR OF THE BOARD OF TRUSTEES, AS APPROPRIATE. A CONFLICTED INDIVIDUAL IS PROHIBITED FROM PARTICIPATING IN DELIBERATIONS AND DECISIONS CONCERNING THE SUBJECT TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15A THE PRESIDENT'S COMPENSATION IS DETERMINED BY A LETTER AGREEMENT NEGOTIATED BY THE TRUSTEES. IN NEGOTIATING THE AGREEMENT, THE TRUSTEES USE COMPARABILITY DATA FROM VARIOUS ACADEMIC INSTITUTIONS AND OTHER RELEVANT PERIODICALS AND STUDIES. ANNUALLY, THE TRUSTEES EVALUATE THE PRESIDENT'S PERFORMANCE IN THE COMPENSATION REVIEW. THESE ACTIONS ARE DOCUMENTED IN THE MINUTES OF THE MEETINGS. THE PROCESS OF EVALUATING COMPARABLE DATA WAS LAST DONE IN 2020. THE COMPENSATION PROCESS FOR OTHER OFFICERS, INCLUDING: VICE PRESIDENTS AND BOARD SECRETARY, IS DETERMINED BY THE PRESIDENT USING COMPARABILITY DATA FROM SIMILAR ACADEMIC INSTITUTIONS AND OTHER RELEVANT PERIODICALS AND STUDIES, AS APPROPRIATE. THIS PROCESS WAS LAST COMPLETED IN 2020. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC BASED UPON SPECIFIC REQUESTS BY INDIVIDUALS OR ORGANIZATIONS. FORM 990, PART IX, LINE 24E REPAIRS AND MAINTENANCE: PROGRAM SERVICE EXPENSES 1,001. MANAGEMENT AND GENERAL EXPENSES 80,007. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 81,008. FOOD AND BEVERAGE: PROGRAM SERVICE EXPENSES 48,505. MANAGEMENT AND GENERAL EXPENSES 28,087. FUNDRAISING EXPENSES 80. TOTAL EXPENSES 76,672. DUES AND SUBSCRIPTIONS: PROGRAM SERVICE EXPENSES 18,915. MANAGEMENT AND GENERAL EXPENSES 47,055. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 65,970. TAXES & LICENSES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 4,283. FUNDRAISING EXPENSES 685. TOTAL EXPENSES 4,968. FORM 990, PART XI, LINE 9: ROUNDING 1. FORM 990, PART XIII, LINE 2C THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE TAX YEAR. SCHEDULE L, PART II: EFFECTIVE AUGUST 1, 2015, THE INSTITUTE PROVIDED THE PRESIDENT WITH THREE LOANS, EACH OF WHICH IS DOCUMENTED BY A PROMISSORY NOTE PRESCRIBING INTEREST COMPOUNDED ANNUALLY (AT THE THEN APPLICABLE FEDERAL RATE OF 1.77%), REPAYMENT SCHEDULE, AND CONSEQUENCES OF DEFAULT, AMONG OTHER TERMS. PRINCIPAL AND INTEREST UNDER THESE NOTES IS DUE FIVE YEARS FROM THE EFFECTIVE DATE. THE INSTITUTE AMENDED THE TERMS OF THIS AGREEMENT ON JUNE 24, 2019 TO EXTEND THE TERM BEYOND AUGUST 1, 2020. FURTHERMORE, A FINAL AMENDMENT TO THE PROMISSORY NOTE WAS EXECUTED DECEMBER 19, 2020, WHEREIN THE INSTITUTE MODIFIED THE ORIGINAL MATURITY OF THESE LOANS AS FOLLOWS: THE FIRST OF THESE LOANS, IN THE AMOUNT OF $100,000, WAS FULLY FORGIVEN JULY 31, 2020. THE SECOND OF THESE LOANS, IN THE AMOUNT OF $100,000, WILL BE FORGIVEN IN THE EVENT THE INSTITUTE'S PERPETUAL ENDOWMENT INVESTMENT POOL INCREASES BY AT LEAST TWENTY MILLION DOLLARS. PER THE FINAL AMENDMENT, THIS TERM HAS BEEN MET BASED ON THE DETERMINATION OF THE BOARD OF TRUSTEES, AND WILL BE FORGIVEN EFFECTIVE AUGUST 1, 2021. THE THIRD LOAN , IN THE AMOUNT OF $100,000, IS TO BE FORGIVEN AS OF AUGUST 1, 2022. THE AMOUNT OF PRINCIPAL AND INTEREST FORGIVEN WAS $109,168 DURING 2020 AND IS FULLY REPORTED IN PART VII OF FORM 990 AND IN PART II OF SCHEDULE J.