2021-11-11T14:45:22-06:00 2020-12-31 521392008 GELMAN ROSENBERG & FREEDMAN 4550 MONTGOMERY AVE SUITE 800N BETHESDA MD 208142930 990 2020-01-01 522291538 NETWORK ADVERTISING INITIATIVE NETW 5713660500 409 7TH STREET NW NO 250 WASHINGTON DC 20004 LEIGH FREUND PRESIDENT & CEO 5713660500 2021-11-11 1 LEIGH FREUND 999009999 RICHARD J LOCASTRO CPA P00288314 3019519090 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z LEIGH FREUND 409 7TH STREET NW NO 250 WASHINGTON DC 20004 3296196 0 X WWW.NETWORKADVERTISING.ORG X 1999 DC SEE PART III, LINE 1. 19 19 10 14 0 0 100000 0 3511728 3296196 0 -177 0 0 3611728 3296019 0 0 0 0 1811798 1804683 0 0 0 1730858 1556292 3542656 3360975 69072 -64956 2895032 3172248 472688 814860 2422344 2357388 X NETWORK ADVERTISING INITIATIVE (NAI) IS A TRADE ASSOCIATION FORMED TO PROVIDE ADVOCACY, EDUCATION AND A FORUM FOR THE DISCUSSION OF PRIVACY AND TECHNOLOGY IN DIGITAL ADVERTISING, AND TO CREATE AND ENFORCE A SELF-REGULATORY CODE OF CONDUCT FOR ADVERTISING TECHNOLOGY COMPANIES. 0 0 AFTER SEVEN YEARS OF HOSTING ITS ANNUAL IN-PERSON SUMMIT AT LOCATIONS THROUGHOUT THE UNITED STATES, THE PUBLIC HEALTH CRISIS OF 2020 FORCED THE NAI TO HOLD ITS 2020 SUMMIT VIRTUALLY. THROUGH A SERIES OF VIRTUAL EVENTS, NAI PROVIDED ITS MEMBER COMPANIES WITH THE LATEST INFORMATION ON EMERGING TECHNOLOGIES, REGULATORY AND LEGISLATIVE TRENDS, AND EMERGING BUSINESS MODELS, AS WELL AS THE PRIVACY IMPLICATIONS OF THE COVID-19 PANDEMIC.SIX NEW MEMBER COMPANIES JOINED THE NAI IN 2020, DESPITE ECONOMIC UNCERTAINTY RELATED TO THE GLOBAL PANDEMIC. THE NAI WEBSITE SAW ROBUST GROWTH IN CONSUMER ENGAGEMENT, WITH OVER SIXTEEN MILLION VISITS TO THE NAI OPT-OUT PAGE, AND NEARLY THREE MILLION VISITS TO THE NAI HOMEPAGE, AS WELL AS A SIGNIFICANT INCREASE IN VISITS TO THE NAI'S EDUCATIONAL MATERIALS.THE NAI COORDINATED SEVERAL WORKING GROUPS TO DISCUSS CODE UPDATES, EMERGING PRIVACY AND TECHNOLOGY ISSUES AND PRIVACY REGULATION AND LEGISLATION, INCLUDING THE USE OF PRECISE LOCATION DATA, INTERNATIONAL LEGISLATIVE AND REGULATORY DEVELOPMENTS, AND THE CALIFORNIA CONSUMER PRIVACY ACT (CCPA). IN SEPTEMBER 2020, THE NAI PUBLISHED GUIDANCE FOR NAI MEMBER COMPANIES ABOUT MANAGING COMPLIANCE RISKS WHILE ACTING AS A CCPA "SERVICE PROVIDER, AND IN OCTOBER 2020, THE NAI PUBLISHED A WHITE PAPER FOR DIGITAL MEDIA PUBLISHERS AND ADVERTISERS SEEKING TO ENGAGE AD TECH COMPANIES AS SERVICE PROVIDERS.THE NAI'S PRESIDENT & CEO, LEIGH FREUND, PROVIDED TESTIMONY IN APRIL 2020 BEFORE THE SENATE COMMERCE COMMITTEE ON ENLISTING BIG DATA IN THE FIGHT AGAINST COVID-19. THE NAI SUBMITTED MULTIPLE SETS OF COMMENTS TO THE CALIFORNIA ATTORNEY GENERAL LEADING UP TO THE IMPLEMENTATION OF THE CCPA, AND ON ADDITIONAL DRAFT MODIFICATIONS LATER PROPOSED TO FURTHER AMEND THE REGULATIONS AFTER THEY BECAME EFFECTIVE.THE NAI CONTINUED TO DEMONSTRATE ITS LEADERSHIP AS A FOUNDING MEMBER OF THE PRIVACY FOR AMERICA COALITION, WHICH WORKS WITH CONGRESS AND VARIOUS STATE LEGISLATURES TO SUPPORT ENACTMENT OF COMPREHENSIVE CONSUMER DATA PRIVACY AND SECURITY LEGISLATION, AND AS A FOUNDING BOARD MEMBER OF THE COALITION FOR BETTER ADS, WHICH IMPLEMENTS GLOBAL STANDARDS TO IMPROVE CONSUMERS' EXPERIENCES WITH ONLINE ADVERTISING.THE NAI REVIEWED MEMBER COMPANY COMPLIANCE WITH THE 2019 CODE OF CONDUCT, AND BEGAN ENFORCEMENT OF THE 2020 CODE OF CONDUCT ON JANUARY 1, 2020. THE 2020 CODE OF CONDUCT, WHICH INCORPORATES NEW TERMINOLOGY MEANT TO ADDRESS CHANGES IN TECHNOLOGY, ENCOMPASSES NEW BUSINESS MODELS AND MARKETING STRATEGIES, INCLUDING THE USE OF "OFFLINE" DATA BY ADVERTISERS, WHICH HAD NOT BEEN DIRECTLY ADDRESSED BY THE NAI'S SELF-REGULATORY EFFORTS IN THE PAST. THE NAI PUBLISHED ITS "GUIDANCE FOR NAI MEMBERS: HEALTH AUDIENCE SEGMENTS" IN JANUARY 2020, CLARIFYING REQUIREMENTS FOR AUDIENCE MODELING BASED ON DEMOGRAPHIC INFORMATION, AND CLOSING POTENTIAL LOOPHOLES IN ADDRESSING SENSITIVE HEALTH CONDITIONS UNDER THE GUISE OF DEMOGRAPHIC TARGETING. IN ADDITION, THE NAU PUBLISHED "BEST PRACTICES: USING INFORMATION COLLECTED FOR TAILORED ADVERTISING OR AD DELIVERY AND REPORTING FOR NON-MARKETING PURPOSES" IN JUNE 2020 TO ADDRESS POTENTIAL MISUSE OF DATA THAT COULD FALL OUTSIDE THE NAI'S TRADITIONAL SCOPE OF DIGITAL ADVERTISING. NAI STAFF CONDUCTED EDUCATION SESSIONS, BOTH IN PERSON AND VIA WEBINARS, ON THE IMPLEMENTATION AND ENFORCEMENT OF THE 2020 CODE OF CONDUCT, AND PERFORMED MANUAL CHECKS OF THE NAI'S OPT OUT PAGE, AS WELL AS MORE IN-DEPTH ANALYSIS RELYING ON TECHNICAL MONITORING TOOLS TO ENSURE COMPLIANCE WITH THE 2020 CODE. MONITORED AND READ CONSUMER EMAILS RECEIVED REGARDING SPECIFIC FUNCTIONALITY ISSUES THAT MAY BE DIFFICULT TO IDENTIFY WITH IN-HOUSE TESTING IN ORDER TO PROMPTLY IDENTIFY AND ADDRESS MOST POTENTIAL PROBLEMS WITH MEMBER OPT-OUT MECHANISMS. RECEIVED AND REVIEWED APPROXIMATELY 3000 CONSUMER QUERIES THROUGH ITS WEBSITE, VIA TELEPHONE, AND VIA REGULAR MAIL.THE NAI COMPLIANCE STAFF PUBLISHED THE 2019 NAI ANNUAL MEMBER COMPLIANCE REPORT AND INITIATED THE REVIEW PROCESS FOR THE 2020 REPORT. PROVIDED A VARIETY OF ROUNDTABLE DISCUSSIONS AND MEMBER BRIEFINGS ON VARIOUS CONSUMER PRIVACY INITIATIVES, GLOBAL LEGISLATIVE AND REGULATORY UPDATES, AND INDUSTRY TRADE ASSOCIATION ACTIVITIES.THE NAI SERVED ON THE GOVERNING BOARD AND STEERING COMMITTEE OF THE IAB EUROPE'S TRANSPARENCY & CONSENT FRAMEWORK (TCF), AN INDUSTRY TOOL THAT SUPPORTS COMPANIES WITHIN THE DIGITAL ADVERTISING ECOSYSTEM AS THEY MANAGE THEIR COMPLIANCE OBLIGATIONS WITH THE EU'S GENERAL DATA PROTECTION REGULATION (GDPR) AND E-PRIVACY DIRECTIVE.THE NAI CONDUCTED CONSUMER RESEARCH ON DIGITAL ADVERTISING, ONLINE CONTENT, AND PRIVACY. IMPROVED NAI'S STATE OF THE ART TECHNICAL MONITORING TOOLS, PROVIDING ADDITIONAL FUNCTIONALITY AND STABILITY TO NAI'S COMPLIANCE AND ENFORCEMENT EFFORTS.FINALLY, THE NAI PARTICIPATED IN NUMEROUS MEETINGS WITH INDUSTRY ADVOCATES AND REGULATORY AND LEGISLATIVE GOVERNMENT LEADERS TO ESTABLISH AN OPEN, CROSS-INDUSTRY DIALOGUE ON DIGITAL ADVERTISING AND CONSUMER PRIVACY, AND COORDINATED REGULAR MEETINGS WITH MEMBERS TO HELP GUIDE THE INDUSTRY WITH RESPECT TO INTERPRETING AND RESPONDING TO THE CCPA AND OTHER STATE LEGISLATIVE AND REGULATORY INITIATIVES. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 10 0 1 10 1 0 0 0 0 0 0 0 0 X 19 19 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 1 0 0 X LEIGH FREUND 5713660500 409 7TH STREET NW 250 WASHINGTON DC 20004 DOUG MILLER CHAIR 15.00 X X 0 0 0 TED LAZARUS VICE-CHAIR 10.00 X X 0 0 0 ALAN CHAPELL SECRETARY 10.00 X X 0 0 0 KEN DREIFACH TREASURER 10.00 X X 0 0 0 AUDREY TRAINOR BOARD MEMBER 5.00 X 0 0 0 TAMERA REYNOLDS BOARD MEMBER 5.00 X 0 0 0 GRANT NELSON BOARD MEMBER 5.00 X 0 0 0 JASON BIER BOARD MEMBER 5.00 X 0 0 0 RACHEL GLASSER BOARD MEMBER 5.00 X 0 0 0 GHITA HARRIS-NEWTON BOARD MEMBER 5.00 X 0 0 0 DUNCAN MCCALL BOARD MEMBER 5.00 X 0 0 0 TIA RASKIN BOARD MEMBER 5.00 X 0 0 0 DANA EDWARDS BOARD MEMBER 5.00 X 0 0 0 PAUL HARRISON BOARD MEMBER 5.00 X 0 0 0 MARKUS RUHL BOARD MEMBER 5.00 X 0 0 0 DAN HEGWOOD BOARD MEMBER 5.00 X 0 0 0 ALAN CHAPELL BOARD MEMBER 5.00 X 0 0 0 MATTHIAS MATTHIESEN BOARD MEMBER 5.00 X 0 0 0 KEVIN CHING BOARD MEMBER 5.00 X 0 0 0 LEIGH FREUND PRESIDENT & CEO 40.00 X 451500 0 39859 DAVID LEDUC VP OF PUBLIC POLICY 40.00 X 241500 0 11387 ANTONI MATYJASZEWSKI VP OF COMPLIANCE/MEMBERSHIP 40.00 X 217726 0 24622 ROD GHAEMMAGHAMI COUNSEL, COMPLIANCE & POLICY 40.00 X 159000 0 955 TONY FICARROTTA COUNSEL, COMPLIANCE & POLICY 40.00 X 136875 0 2809 MATT NICHOLS SENIOR COUNSEL, COMPLIANCE 40.00 X 122487 0 4708 1329088 0 84340 6 0 1 0 VENABLE LLP 600 MASSACHUSETTS AVE NW WASHINGTON DC 20001 INDUSTRY PUBLIC POLICY INITIATIVES 193750 RATIONAL 360 1828 L ST NW WASHINGTON DC 20036 PR & MARKETING 152045 2 MEMBERSHIP DUES 900099 3134160 3134160 DAA REVENUE 900099 131750 131750 NAI SUMMIT 900099 30286 30286 3296196 177 -177 -177 -177 3296019 3296196 0 -177 491359 1061070 18939 137784 95531 32456 25180 146159 152045 17880 135408 69421 45217 2131 41070 DAA EXPENSES 600483 INDUSTRY PUBLIC POLICY 242000 DUES AND SUBSCRIPTIONS 27122 COLLECTIONS 11100 8620 3360975 2145603 2874226 691553 266312 40085 16227 14059 11676 4691 2383 13100 13100 2895032 3172248 425962 772703 46726 42157 472688 814860 X 2322344 2240388 100000 117000 2422344 2357388 2895032 3172248 -64956 0 X 0 0 0 0 0 1 3119160 300000 -11129 288871 311916 -23045 12832 11063 1769 1227 613 614 2383 DEFERRED RENT 42157 42157 X X 0 0 0 LEIGH FREUND PRESIDENT & CEO 336000 0 115500 0 0 0 13548 0 26311 0 491359 0 0 0 DAVID LEDUC VP OF PUBLIC POLICY 210000 0 31500 0 0 0 7970 0 3417 0 252887 0 0 0 ANTONI MATYJASZEWSKI VP OF COMPLIANCE/MEMBERSHIP 174181 0 43545 0 0 0 0 0 24622 0 242348 0 0 0 ROD GHAEMMAGHAMI COUNSEL, COMPLIANCE & POLICY 132500 0 26500 0 0 0 0 0 955 0 159955 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS ONE CLASS OF MEMBERSHIP. FORM 990, PART VI, SECTION A, LINE 7A NETWORK ADVERTISING INITIATIVE MEMBERS VOTE FOR AT-LARGE BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN CHANGES TO THE NETWORK ADVERTISING INITIATIVE CODE OF CONDUCT ARE APPROVED BY FULL MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE PRESIDENT & CEO REVIEWED THE FORM 990 BEFORE IT WAS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 15A AN EXECUTIVE COMMITTEE PREPARES A BUDGET FOR THE COMPENSATION OF THE PRESIDENT AND CEO, AND THE BOARD OF DIRECTORS APPROVES THIS BUDGET. THE PRESIDENT AND CEO SETS A BUDGET FOR STAFF COMPENSATION, WHICH IS THEN REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. THE LAST REVIEW TOOK PLACE IN DECEMBER 2020. FORM 990, PART VI, SECTION C, LINE 19 THE NETWORK ADVERTISING INITIATIVE MAKES DOCUMENTS AVAILABLE UPON REQUEST.