2021-08-16T11:27:44-05:00 2020-09-30 251408703 SCHNEIDER DOWNS & CO INC ONE PPG PLACE SUITE 1700 PITTSBURGH PA 15222 990 2019-10-01 251492587 PHIPPS CONSERVATORY AND BOTANICAL GARDENS INC PHIP 4126226915 ONE SCHENLEY PARK PITTSBURGH PA 15213 KATIE LYNCH CFO 4126226915 2021-07-15 1 EUGENE J LOGAN P00227231 4122613644 2019 2022-09-23 18:48:47Z RICHARD PIACENTINI ONE SCHENLEY PARK PITTSBURGH PA 15213 18771994 0 X WWW.PHIPPS.CONSERVATORY.ORG X 1985 PA PHIPPS IS THE PLACE WHERE PEOPLE DISCOVER THE BEAUTY OF HUMANITY LIVING IN HARMONY WITH NATURE. 32 32 261 239 141022 12541 8668369 10694591 5167225 3454458 328869 472695 1224699 640546 15389162 15262290 75824 36000 0 0 6138986 6535127 0 0 666910 7228356 6840955 13443166 13412082 1945996 1850208 71741445 75804543 4596661 6489956 67144784 69314587 X PHIPPS' MISSION IS TO INSPIRE AND EDUCATE ALL WITH THE BEAUTY AND IMPORTANCE OF PLANTS, TO ADVANCE SUSTAINABILITY AND PROMOTE HUMAN AND ENVIRONMENTAL WELL-BEING THROUGH ACTION AND RESEARCH, AND TO CELEBRATE ITS HISTORIC GLASSHOUSE. 0 0 1879050 HORTICULTURE: SINCE OPENING IN 1893 AS THE NATION'S FIRST PERMANENT, LARGE ENCLOSED BOTANICAL GARDEN, PHIPPS HAS CONNECTED PEOPLE TO NATURE AND EACH OTHER THROUGH THE BEAUTY AND SCIENCE OF PLANTS. WITH ITS ANNUAL CYCLE OF FIVE FACILITY-WIDE SEASONAL FLOWER SHOWS AND OTHER ACCLAIMED EXHIBITS, PHIPPS DISPLAYS THE CAPTIVATING INNER-WORLD OF PLANTS TO THE PUBLIC WHO MAY DELVE DEEPER THROUGH CURATED EDUCATION, RESEARCH, AND COMMUNITY PROGRAMMING. CONTINUED, SEE SCHEDULE O.SEE PAGES 46-48 FOR HOW THE ORGANIZATION WAS IMPACTED BY COVID-19.THE LANDMARK GARDEN-CONSERVATORY IS LOCATED BETWEEN A 456-ACRE URBAN PARK HISTORIC DISTRICT AND A BURGEONING RESEARCH, MEDICAL AND UNIVERSITY DISTRICT, THE ENGINE FOR PITTSBURGH'S RANK AS ONE OF AMERICA'S FOUR INNOVATION CITIES BY THE BROOKINGS INSTITUTION IN 2017.THE UNIQUE PHIPPS "LEARNING AND INNOVATION ECOSYSTEM" ENCOMPASSES 14 GLASSHOUSE AND 8 OUTDOOR GARDEN-ROOM EXHIBITORIES, AND 3 EDUCATION-FACILITY BUILDINGS. THE PHIPPS ECOSYSTEM HAS BECOME DISTINGUISHED FOR: INTRODUCING GROUND-BREAKING RESEARCH; LAUNCHING LEADING-EDGE EDUCATION PROGRAMS; ERECTING PIONEERING REGENERATIVE LANDSCAPES AND BUILDINGS; AND OFFERING NEW CULTURAL OPPORTUNITIES TO THE REGION AND BEYOND. TO MEET THE CHALLENGE OF DEMONSTRATING THE ESSENTIAL CONNECTION BETWEEN HUMAN AND ENVIRONMENTAL HEALTH, PHIPPS ADVANCES ITS MISSION BY MOUNTING SUPERLATIVE PLANT-BASED EXHIBITS, EDUCATION, RESEARCH AND OUTREACH PROGRAMMING - IN TRAIL-BLAZING GREEN BUILDINGS AND LANDSCAPES - TO INSPIRE WONDER AND APPRECIATION OF NATURE. 1652096 3521276 GUEST SERVICES: HALFWAY THROUGH THE FISCAL YEAR, OPERATIONS WERE SEVERELY DISRUPTED BY THE COVID-19 PANDEMIC, AND PUBLIC VISITATION WAS HALTED AND RESTARTED AT INTERVALS IN LINE WITH GOVERNMENT AND CDC REQUIREMENTS. THROUGH PRUDENT PLANNING AND COUNTER-MEASURES, CONSERVATORY LEADERSHIP HAS GRAPPLED WITH THE NEGATIVE SHORT-TERM FINANCIAL IMPLICATIONS. TO ADDRESS AN EVOLVING FUTURE, LEADERSHIP REMAINS ENGAGED IN VIGOROUS SCENARIO FORECASTING TO CAUTIOUSLY MOVE FORWARD IN THE SHORT AND LONG TERM. CONTINUED, SEE SCHEDULE O. AT PHIPPS, GUESTS ENCOUNTER LIFE-CHANGING ENVIRONMENTAL WAYS OF KNOWING AND LIVING IN THE TRANQUIL NEXUS OF ORNAMENTAL HORTICULTURE WITH ART, SCIENCE AND THE HUMANITIES. WOVEN INTO THE REGION'S CIVIC IDENTITY AS A PREMIER CULTURAL TOURIST ATTRACTION AND ACCLAIMED AS ONE OF THE NATION'S FINEST GARDEN-CONSERVATORY EXPERIENCES, PHIPPS IS A GLOBAL GARDEN THAT ENRICHES THE COMMUNITY BY: 1) CREATING AND CULTIVATING BEAUTY, ADVANCING LIFE'S QUALITY; 2) SHARPENING SUSTAINABLE GARDENING AND LANDSCAPING SKILLS AND SCIENCE; 3) ADDRESSING POOR NUTRITION IN URBAN FOOD-DESERTS THROUGH A NEIGHBORHOOD NETWORK OF HOUSEHOLD RAISED-BED VEGETABLE GARDENS AND ONE-ON-ONE MENTORING SUPPORT FOR HEALTHIER LIFESTYLE CHOICES; 4) GROWING COMMUNITY STEAM-H (STEM, ART, HUMANITIES AND HEALTH) EDUCATION THROUGH DYNAMIC ON- AND OFF-SITE PROGRAMMING; AND, 5) DEMONSTRATING HOW TO LIVE, WORK, AND LEARN IN HEALTHY BUILT AND NATURAL ENVIRONMENTS.A LIVING MUSEUM, PHIPPS IS A POPULAR RESTORATIVE DESTINATION FOR RESIDENTS AND TOURISTS. GUESTS ENTER AN AWARD-WINNING GARDEN-CONSERVATORY IN WHICH SOARING GLASS PAVILIONS WHISK ONE AWAY TO OTHER WORLDS AND CULTURES: FROM TROPICAL BIODIVERSITY HOTSPOTS TO BONE-DRY DESERT, FROM ELEGANT FORMAL GARDENS TO BLOOMING COUNTRY LANES WITH FLOWERS FROM ENGLAND, FRANCE, JAPAN, CUBA AND OTHER COUNTRIES. GUESTS MOVE THROUGH CURATED DISPLAY AREAS BEJEWELED WITH SCULPTURES BY FAMOUS BOTANICAL GLASS ARTISTS AMIDST EXHIBITS AND SEASONAL FLOWER SHOWCASES. ONE MAY SEE SMILING CHILDREN IN ROWS WITH HANDS RAISED HIGH OVER THEIR HEADS IN IMITATION OF THE TROPICAL FOREST CONSERVATORY'S TREE CANOPY; INSIDE THIS CONSERVATORY HAILED FOR ITS DESIGN BREAKTHROUGHS, GUESTS ARE IMMERSED IN A TRIENNIALLY FEATURED RAINFOREST'S WEB OF LIFE. LEAVING THE TROPICAL FOREST, ONE MOVES OUTDOORS INTO THE FUTURE - ONE IN WHICH THE BUILT AND NATURAL ENVIRONMENTS MEET HARMONIOUSLY AS NOWHERE ELSE, IN A LIVING CAMPUS. ON THIS STIMULATING 3.6-ACRE SITE, THREE PACESETTING STRUCTURES - ALL DISTINGUISHED AS THE WORLD'S HEALTHIEST - ARE UNITED BY AN AWARD-WINNING LANDSCAPE AND POPULAR TURTLE LAGOON. TOURING PHIPPS, GUESTS SHARE IN EXCITING INTERACTIVE EXHIBITS, GLIMPSE INTO THE INNER WORLD OF PLANTS, AND GAIN KNOWLEDGE OF HOW TO MEET THE FUTURE'S REGENERATIVE CHALLENGES. IN SELECTING PITTSBURGH AMONG THE BEST OF THE WORLD, NATIONAL GEOGRAPHIC NAMED PHIPPS AS THE EPITOME OF THE REGION'S TRANSFORMATION OF ITS STORIED STRENGTHS TO EMBRACE A FUTURE OF CONSEQUENCE. 808526 36000 321085 EDUCATION: AMERICA'S FIRST PUBLIC TEACHING CONSERVATORY, PHIPPS CONSTRUCTS PIONEERING, SUSTAINABLE GARDEN ROOMS AND BUILDINGS TO COMBINE THE LATEST ENVIRONMENTAL KNOWLEDGE, INNOVATION AND TECHNOLOGY WITH AWARD-WINNING OPERATIONS AND PROGRAMMING. THE PHIPPS MAKER-STYLE APPROACH TO LIFELONG LEARNING DATES TO THE GARDEN'S EARLIEST DAYS, AS A TEACHING CONSERVATORY. TODAY, THE ORGANIZATION CATALYZES THE WORK OF PUBLIC, PRIVATE, AND GOVERNMENT PARTNERS WITH REGENERATIVE THINKING TO ADDRESS PRESSING ISSUES IN ECOLOGY, HORTICULTURE, GREEN BUILDINGS AND ENERGY, AND HEALTHY LIVING.CONTINUED, SEE SCHEDULE O.THROUGH A VIBRANT PALETTE OF ON- AND OFF- SITE, AND VIRTUAL EDUCATIONAL, RESEARCH, AND OUTREACH PROGRAMMING, PHIPPS OFFERS SOME 150 CLASSES, SYMPOSIA AND LECTURES EACH CALENDAR QUARTER; AND, CONSERVATORY EDUCATIONAL PROGRAMS - SUCH AS KIDS' BOOT CAMPS AND THE LEARNING-BY-PLAYING FAIRCHILD CHALLENGE - HAS ENGAGED MORE THAN 25,000 CHILDREN IN HUNDREDS OF SCIENCE AND ENVIRONMENTAL LITERACY INITIATIVES.PHIPPS' BOTANY IN ACTION FELLOWS PROGRAM FOR PHD CANDIDATES FOSTERS A NEW GENERATION OF SCIENTISTS COMMITTED TO SUPERIOR PLANT-BASED RESEARCH AND PUBLIC EDUCATIONAL ENGAGEMENT. TO DATE, BIA HAS UNDERWRITTEN THE SCIENTIFIC FIELD RESEARCH AND PUBLIC COMMUNICATION TRAINING OF 67 PHD STUDENTS FROM 30 UNIVERSITIES DOING FIELDWORK IN THE UNITED STATES AND 28 FOREIGN COUNTRIES. DYNAMIC PARTNERSHIPS ARE ONGOING WITH UNIVERSITY FACULTY, GRADUATE AND UNDERGRADUATE STUDENTS. IN 2017, PHIPPS WAS PLEASED TO RECEIVE MAJOR FUNDING TO LAUNCH THE NATION'S FIRST RESEARCH INSTITUTE FOR BIOPHILIA AND SCIENCE ENGAGEMENT; IT PROVIDES TRAINING FOR SCIENTISTS DOING BIOPHILIC RESEARCH THROUGH INTERNSHIPS, FELLOWSHIPS, CERTIFICATIONS AND TRAINING IN SCIENTIFIC COMMUNICATION AND OUTREACH. 7372122 15070 INCLUDED IN OTHER PROGRAM SERVICES ARE DEPRECIATION, COSTS FOR MAINTAINING THE FACILITIES, INDIRECT LABOR AND OVERHEAD AND OTHER MISCELLANEOUS EXPENSES. 7372122 15070 11711794 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 123 0 1 261 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 32 32 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X KATIE LYNCH CFO 4126226915 1 SCHENLEY PARK PITTSBURGH PA 152133830 RICHARD PIACENTINI PRESIDENT AND CEO 40.00 2.00 X 466071 0 28739 GREGORY R DUFOUR DIRECTOR, CAPITAL CAMPAIGN 40.00 0.00 X 155776 0 16366 JANICE KORTZ DIRECTOR, HR & OPERATIONS 40.00 0.00 X 147532 0 15583 MAJORIE A RADEBAUGH DIRECTOR, EDU & HORTICULTUTURE 40.00 0.00 X 128432 0 14177 KATIE LYNCH CHIEF FINANCIAL OFFICER 40.00 4.00 X 116871 0 20095 JASON WIRICK DIR., FACILITIES & SUSTAINABILITY 40.00 0.00 X 103678 0 19060 SENATOR JAY COSTA TRUSTEE (ENTERED 11/19) 2.00 0.00 X 0 0 0 MARILYN DELLOVADE TRUSTEE 2.00 0.00 X 0 0 0 JEANNE DEMOSS TRUSTEE 2.00 0.00 X 0 0 0 CONGRESSMAN MIKE DOYLE TRUSTEE 2.00 0.00 X 0 0 0 SHERRY DUCARME TRUSTEE 2.00 0.00 X 0 0 0 MARITA GARRETT TRUSTEE (ENTERED 11/19) 2.00 0.00 X 0 0 0 SALLY KETCHUM TRUSTEE (DECEASED 2/20) 2.00 0.00 X 0 0 0 JOSEPH LAGANA TRUSTEE 2.00 0.00 X 0 0 0 SCOTT LAMMIE TRUSTEE 2.00 0.00 X 0 0 0 VIVIAN LOFTNESS TRUSTEE (EXITED 10/19) 2.00 0.00 X 0 0 0 RYAN MARTIN TRUSTEE 2.00 0.00 X 0 0 0 BECKY MCGOUGH TRUSTEE 2.00 0.00 X 0 0 0 MATTHEW MEHALIK TRUSTEE (ENTERED 11/19) 2.00 0.00 X 0 0 0 TAMI MINNIER TRUSTEE 2.00 0.00 X 0 0 0 SUZAN OBAGI TRUSTEE 2.00 0.00 X 0 0 0 MARY ODOM TRUSTEE 2.00 0.00 X 0 0 0 RESHMA PARANJPE TRUSTEE 2.00 0.00 X 0 0 0 KATHE PATRINOS TRUSTEE 2.00 0.00 X 0 0 0 JOHN POLLACK TRUSTEE 2.00 0.00 X 0 0 0 NEETA RAJA TRUSTEE 2.00 0.00 X 0 0 0 DIANA MRVOS RATH TRUSTEE 2.00 0.00 X 0 0 0 PHILIP REEDER TRUSTEE 2.00 0.00 X 0 0 0 KRISHNA SHARMA TRUSTEE 2.00 0.00 X 0 0 0 VIRGINIA SIMMONS TRUSTEE 2.00 0.00 X 0 0 0 KENNETH SPRUILL TRUSTEE 2.00 0.00 X 0 0 0 JOHN STOLZ TRUSTEE 2.00 0.00 X 0 0 0 RITU THAMMAN TRUSTEE 2.00 0.00 X 0 0 0 MISSY UNKOVIC TRUSTEE 2.00 0.00 X 0 0 0 JUI JOSHI IMMEDIATE PAST CHAIR (EXITED 10/19) 5.00 0.00 X X 0 0 0 MICHAEL HERALD CHAIRTHRU 10 /19)IMMED. PAST CHAIR(EFF. 10/19) 5.00 0.00 X X 0 0 0 WALTER BURLACK VICE CHAIR (THRU. 10/19), CHAIR (EFF.10/19) 5.00 0.00 X X 0 0 0 ERICA COCHRAN-HAMEEN TRUSTEE (THRU. 10/19), VC (EFF. 10/19) 5.00 0.00 X X 0 0 0 BILL SLIVKA TREASURER (ENTERED 10/19) 5.00 0.00 X X 0 0 0 NATHAN BOXX TREASURER (THRU. 10/19), TRUSTEE (EFF. 10/19) 5.00 0.00 X X 0 0 0 JENNIFER MUSE SECRETARY (EXITED 10/19) 5.00 0.00 X X 0 0 0 PATTY DEMARCO TRUSEE THRU 10/19). SECRETARY (ENTERED 10/19) 5.00 0.00 X X 0 0 0 1118360 0 114020 6 0 1 0 RENOVATION SERVICES INC 187 PAVILION PARKWAY SUITE 300 NEWPORT KY 41071 CONSTRUCTION SERVICES 1357065 SODEXO INC & AFFILIATES PO BOX 360170 PITTSBURGH PA 15251 FOOD SERVICE & JANITORIAL SERVICE 878429 MASSARO CORPORATION 120 DELTA DRIVE PITTSBURGH PA 15238 CONSTRUCTION SERVICES 479437 COSTA CONTRACTING INC 347 LEFEVER HILL ROAD CHESWICK PA 15024 CONSTRUCTION SERVICES 294890 PALAMERICAN SECURITY 11300 4TH STREET N 150 ST PETERSBURG FL 33716 SECURITY PROVIDER 204596 12 1389092 63050 3595043 5647406 12768 10694591 ADMISSIONS 900099 3118303 3118303 EDUCATIONAL TOURS/CLASSES 900099 321085 321085 LANDSCAPE DESIGN COURSEWORK 900099 15070 15070 3454458 183981 183981 310110 441190 -131080 -131080 -131080 2775040 2486326 288714 288714 288714 51200 63050 54447 -3247 -3247 1071736 527741 543995 402973 141022 SHARED SERVICES 900099 219222 219222 MISCELLANEOUS REVENUE 900099 11656 11656 230878 15262290 3857431 141022 569246 X 36000 36000 673339 571083 42087 60169 4430878 3757987 276949 395942 252011 213739 15752 22520 805130 682860 50324 71946 373769 317007 23362 33400 16824 16824 75991 75991 171268 138973 28160 4135 1485319 1456699 28620 240186 240186 251041 189704 54615 6722 694758 688307 3720 2731 72029 71795 234 32082 27270 4812 2129812 2093892 35920 256962 253351 1354 2257 MATERIALS AND SUPPLIES 717597 704616 12981 BAD DEBT EXPENSE 331500 331500 EQUIPMENT RENTAL 149973 93142 41207 15624 DUES 94356 79771 6478 8107 121257 95412 24323 1522 13412082 11711794 1033378 666910 16332 12853 8393246 6987569 3875414 6606064 343199 92232 175576 228484 183391 152488 77396532 23554258 52036919 53842274 3986404 4417576 1558668 1702774 1172296 1762229 71741445 75804543 1927249 2425820 523092 553737 1879872 3202851 266448 307548 4596661 6489956 X 52095768 50709521 15049016 18605066 67144784 69314587 71741445 75804543 1850208 319595 0 X X 0 1 X 1 0 X 5999902 12157818 9798290 8668369 10694591 47318970 5999902 12157818 9798290 8668369 10694591 47318970 3580334 43738636 720799 1419897 816831 875686 494091 4327304 231779 180371 214641 210283 837074 212964 233455 235392 265059 230878 1177748 53661096 20634767 0.81510 0.82230 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 0 4084905 2500 487356 125298 30960 4418503 3720988 254246 245689 106889 29129 4084905 2718683 804039 327989 104835 24888 3720988 2501552 44273 289238 97625 18755 2718683 2396230 55690 159144 90100 19412 2501552 0.00000 0.78040 0.21960 0 0 70497846 21865553 48632293 2684592 1619707 1064885 4214094 68998 4145096 53842274 457 PLAN 307548 307548 X 17414683 319595 809419 1129014 16285669 -1023379 -1023379 15262290 15787450 2375368 2375368 13412082 0 13412082 PART III, LINE 4: PHIPPS' GLASS COLLECTION INCLUDES WORKS FROM THREE GLASS ART EXHIBITIONS HELD AT THE CONSERVATORY. PLACED THROUGHOUT THE GARDENS ARE EIGHT INSTALLATIONS OF CHIHULY PIECES AS WELL AS TWO INSTALLATIONS EACH FROM GLASS ARTISTS HANS GODO FRABEL AND JASON GAMRATH. THE PIECES WERE PURCHASED SPECIFICALLY TO DEMONSTRATE BOTANICAL ART AND THEIR RELATIONSHIP TO THE ACCOMPANYING PLANTS. PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS OF PHIPPS CAN BE DESCRIBED AS FOLLOWS. EACH YEAR, THE BOARD OF TRUSTEES VOTES ON THE PERCENTAGE OF EARNINGS FROM THE ENDOWMENT THAT WILL BE ALLOCATED FOR THE USE OF THE VARIOUS PORTIONS. THERE ARE SEVERAL PORTIONS OF THE ENDOWMENT FUNDS AT PHIPPS: 1) FUNDING FOR THE SALARY/BENEFITS OF THE POSITION OF DIRECTOR OF HORTICULTURE, 2) FUNDING FOR THE BOTANY IN ACTION PROGRAM THAT PROVIDES GRANTS TO STUDENTS PERFORMING RESEARCH IN BOTANY THROUGHOUT THE WORLD, 3) FUNDING FOR THE GENERAL OPERATIONS OF THE CONSERVATORY AND GARDEN CENTER AND 4) FUNDING FOR THE FUTURE RESEARCH PROGRAM RELATED TO THE CENTER FOR SUSTAINABLE LANDSCAPES CURRENTLY BEING DESIGNED. THE ENDOWMENT FUNDING FOR THE RESEARCH PROGRAM AT PHIPPS IS PART OF THE CURRENT CAPITAL CAMPAIGN, REIMAGINING PHIPPS. THE CURRENT CAPITAL CAMPAIGN GOAL INCLUDES FUNDING SPECIFICALLY RELATED TO THE FUTURE RESEARCH PROGRAM. PART X, LINE 2: PHIPPS IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. HOWEVER, INCOME FROM CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO PHIPPS' TAX-EXEMPT PURPOSE IS SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. IN ADDITION, PHIPPS QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170(B)(1)(A) AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. IN DECEMBER 2017, THE TAX CUTS AND JOBS ACT (TAX ACT) WAS ENACTED INTO LAW. THE TAX ACT REDUCES THE U.S. STATUTORY RATE FROM 35% TO 21% FOR PERIODS AFTER 2017. AT SEPTEMBER 30, 2020, THERE WERE APPROXIMATELY $33,000 IN AVAILABLE NET OPERATING LOSS CARRY-FORWARDS AS A RESULT OF UNRELATED BUSINESS ACTIVITIES AT PHIPPS, WHICH MAY BE APPLIED AGAINST FUTURE YEARS' TAXABLE INCOME. THE NET OPERATING LOSS CARRY-FORWARDS HAVE NO EXPIRATION. PHIPPS RECORDS A DEFERRED TAX ASSET TO THE EXTENT THAT IT IS MORE LIKELY THAN NOT THAT SOME OR ALL OF THIS BENEFIT IS TO BE REALIZED. PHIPPS RECORDED A DEFERRED TAX ASSET OF $6,879 AS OF SEPTEMBER 30, 2020 IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION. PHIPPS HAS ESTABLISHED POLICIES FOR RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THERE HAVE BEEN NO INTEREST OR PENALTIES RECOGNIZED IN EITHER THE STATEMENT OF ACTIVITIES OR IN THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION RELATED TO UNCERTAIN TAX POSITIONS. IN ADDITION, NO TAX POSITIONS EXIST FOR WHICH IT IS REASONABLY POSSIBLE THAT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS WILL SIGNIFICANTLY INCREASE OR DECREASE WITHIN THE NEXT 12 MONTHS. PHIPPS EVALUATES ITS UNCERTAIN TAX POSITIONS, IF ANY, ON A CONTINUAL BASIS THROUGH REVIEW OF ITS POLICIES AND PROCEDURES, REVIEW OF ITS REGULAR TAX FILINGS AND DISCUSSIONS WITH OUTSIDE EXPERTS. PHIPPS' OPEN AUDIT PERIODS INCLUDE 2017 THROUGH 2020. PART XI, LINE 2D - OTHER ADJUSTMENTS: SUBSIDIARY REVENUE 1,028,641. SHARED SERVICES -219,222. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -527,741. FUNDRAISING EXPENSES -54,447. RENTAL EXPENSE -441,191. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 527,741. RENTAL EXPENSE 441,191. FUNDRAISING EXPENSES 54,447. SUBSIDIARY EXPENSES 1,351,989. WINE TASTING - PERFECT PAIRINGS 114250 63050 51200 7958 27666 3970 14853 114250 63050 51200 7958 27666 3970 14853 54447 -3247 1 0 0 BOTANICAL RESEARCH 8 36000 0 N/A N/A PART I, LINE 2: BOTANY IN ACTION FELLOWS ARE REQUIRED TO SUBMIT AN ANNUAL REPORT THAT DESCRIBES THEIR RESEARCH AND OUTREACH ACTIVITIES DURING THE YEAR OF THE GRANT. THE FELLOWS ALSO SPEND FOUR DAYS ATTENDING SCIENCE ENGAGEMENT WEEK, WHERE PHIPPS ORGANIZES TRAINING SESSIONS AND PROVIDES THE FELLOWS WITH OPPORTUNITIES TO SHARE THEIR RESEARCH WITH LOCAL SCHOOLS, PHIPPS' MEMBERS AND OTHER GUESTS. AFTER THE CONCLUSION OF SCIENCE ENGAGEMENT WEEK, THE FELLOWS ARE ASKED TO KEEP A BLOG THAT THEY HAVE TO UPDATE ONCE A MONTH. X 1 1 X X X X X 0 0 0 0 0 0 0 1 0 RICHARD PIACENTINI PRESIDENT AND CEO 341127 0 55573 0 69371 0 16800 0 11939 0 494810 0 0 0 GREGORY R DUFOUR DIRECTOR, CAPITAL CAMPAIGN 148261 0 6000 0 1515 0 9623 0 6743 0 172142 0 0 0 JANICE KORTZ DIRECTOR, HR & OPERATIONS 140799 0 6000 0 733 0 8942 0 6641 0 163115 0 0 0 PART I, LINE 1A PHIPPS CONSERVATORY AND BOTANICAL GARDENS, INC. PAYS NON-TAXABLE BENEFITS FOR THE MONTHLY DUES FOR A BUSINESS CLUB LOCATED IN THE CITY CENTER. THE PRIMARY PURPOSE OF THE MEMBERSHIP IS FOR BUSINESS MEETINGS/MEALS THAT THE PRESIDENT AND CEO HAS OFF SITE OR WITH INDIVIDUALS WHO ARE LOCATED IN THE CITY ITSELF. PART I, LINE 7 THE PRESIDENT & CEO RECEIVED A BONUS OF $55,573 IN 2019. DIRECTOR OF CAPITAL CAMPAIGN, DIRECTOR OF EDUCATION AND HORTICULTURE, DIRECTOR OF HR, THE DIRECTOR OF MARKETING & COMMUNICATIONS, THE CHIEF FINANCIAL OFFICER, AND DIRECTOR OF FACILITIES & SUSTAINABILITY RECEIVED A BONUS OF $6,000 EACH IN 2019. FORM 990, PART III, OTHER PROGRAM SERVICES: COVID-19 PANDEMIC: LIKE MANY ORGANIZATIONS, PHIPPS WAS SIGNIFICANTLY IMPACTED BY THE COVID-19 PANDEMIC. THE CONSERVATORY WAS CLOSED ENTIRELY FOR TWO AND A HALF MONTHS FROM MARCH TO JUNE AND AGAIN IN DECEMBER DURING THE BUSIEST WEEKS OF THE YEAR. THESE CLOSURES COMBINED WITH ATTENDANCE RESTRICTIONS THROUGHOUT THE PANDEMIC GREATLY REDUCED EARNED AND CONTRIBUTED INCOME THAT THE ORGANIZATION DEPENDS UPON TO FUND ITS MANY PROGRAMS. AT THE OUTSET OF THE FORCED CLOSING, PHIPPS ADOPTED A NEW MODEL TO MAINTAIN PRODUCTIVITY. PHIPPS LEADERSHIP ASSIGNED ESSENTIAL STAFF TO WORK AT THE CONSERVATORY ON A ROTATING BASIS AND IN A WAY TO ENSURE THEIR SAFETY, WHILE OTHER STAFF WORKED FROM HOME ON NEW AND ONGOING IMPORTANT PROJECTS. CRUCIALLY, PHIPPS DID NOT REDUCE WAGES, OR LAY OFF OR FURLOUGH ANY EMPLOYEES DURING THE CRISIS; THE ORGANIZATION WAS COMMITTED TO KEEPING ALL STAFF EMPLOYED AND ENGAGED. THE STAFF WAS EXCEPTIONAL IN RESPONDING TO THIS CRISIS, RALLYING TO HELP THE ORGANIZATION MAKE IT THROUGH. MAINTAINING STAFF PLACED PHIPPS IN A BETTER AND STRONGER POSITION AS THE PANDEMIC CONTINUED; STAFF WORKED ON MOVING AHEAD WITH MANY PROJECTS THAT WOULD HAVE OCCURRED LATER IN THE YEAR AND STARTED TACKLING EFFORTS THAT HAD BEEN ON THE BACKBURNER. PROJECTS INCLUDED FUTURE SHOW AND EXHIBIT DESIGN; NEW CLASS AND PROGRAM DESIGN TO ADDRESS REMOTE LEARNING AND HYBRID REMOTE/IN-PERSON MODELS OF EDUCATION; COMPLETING AN AAM ACCREDITATION APPLICATION; UPDATING AND DEVELOPING NEW STANDARD OPERATING PROCEDURE (SOP) MANUALS; RECONCILING DONOR AND MEMBER DATABASES; AND EVEN ACTIVITIES SUCH AS COMPLETING REQUIRED CONTINUING EDUCATION CREDITS AND TRAINING ONLINE. THE EDUCATION DEPARTMENT LAUNCHED AN ONLINE EDUCATIONAL PROGRAM WITH VIRTUAL VERSIONS OF NEW AND EXISTING CLASSES IN GARDENING, CULINARY ARTS, BOTANICAL ART, AND HORTICULTURAL DESIGN WHICH NOW REACH MORE PEOPLE THAN PHIPPS' IN-PERSON CLASSES EVER HAVE BEFORE. STAFF CALLED EACH OF PHIPPS' 19,500-PLUS MEMBER HOUSEHOLDS INDIVIDUALLY TO CHECK IN ON THEM AND LET THEM KNOW THEIR MEMBERSHIPS WOULD EXTEND FOR THE FULL LENGTH OF THE CLOSURES. OTHER STAFF MADE MASKS FOR ON-SITE WORKERS IN THE EARLY DAYS WHEN PPE SUPPLIES WERE SCARCE. ORGANIZATION LEADERSHIP ALSO STARTED WORKING ON PLANS FOR HOW TO ADAPT THE ON-SITE EXPERIENCE TO A CHANGED WORLD. WHEN GOVERNOR WOLF PERMITTED REOPENING IN JUNE, PHIPPS OPENED ON THE FIRST DAY OF THE GREEN PHASE AND HIT THE GROUND RUNNING WITH A COMMITTED AND ENGAGED STAFF. IN ADDITION TO THAT, BY HAVING STAFF WORK ON IMPORTANT PROJECTS DURING THE CLOSURE, THE ORGANIZATION WAS FURTHER AHEAD IN MANY STRUCTURAL AND OPERATIONAL AREAS THAN BEFORE THE PANDEMIC. PHIPPS TOOK A REGENERATIVE APPROACH TO THIS ISSUE AND TRANSFORMED IT INTO AN OPPORTUNITY TO MAKE THE ORGANIZATION STRONGER. IN REGENERATIVE THINKING, WHEN ACTIVATING AND RESTRAINING FORCES MEET, CONVENTIONAL THINKING VIEWS THIS AS A CONFLICT AND RESPONDS WITH COMPROMISE, WHICH RESULTS IN MUTUAL LOSS. INSTEAD, PHIPPS USED THAT TENSION TO RECONCILE THOSE FORCES AND CREATE SOMETHING NEW. TO APPROACH THIS AS A CONFLICT COULD HAVE RESULTED IN LOSSES, SHUTTERED PROGRAMS, AND STAFF LAYOFFS; PHIPPS' RECOGNITION OF THE OPPORTUNITY TO RETOOL THE ORGANIZATION ALLOWED ALL STAFF TO REACH A HIGHER POTENTIAL AND FOCUS ON WORK THAT MADE THE ORGANIZATION STRONGER AND MORE RESILIENT FOR THE FUTURE. PHIPPS WAS IN A STRONG FINANCIAL POSITION GOING INTO THE PANDEMIC AND WAS ABLE TO CUT EXPENSES AND USE RESERVES TO SURVIVE THE FIRST FEW MONTHS. A PPP LOAN OF $1,188,900 , WHICH WAS LATER CONVERTED TO A GRANT, STRENGTHENED THE ORGANIZATION'S CASH POSITION. THIS ALLOWED PHIPPS TO FINISH THE YEAR IN A STABLE FINANCIAL POSITION, AND MAINTAINING ALL STAFF LEFT THE ORGANIZATION IN A BETTER OPERATIONAL POSITION THAN BEFORE THE PANDEMIC STARTED. FORM 990, PART VI, SECTION A, LINE 1 DURING THE INTERVALS BETWEEN MEETINGS OF THE BOARD, THE EXECUTIVE COMMITTEE MAY EXERCISE ALL THE AUTHORITY OF THE BOARD IN THE MANAGEMENT OF THE PROPERTY, BUSINESS AND AFFAIRS OF THE CORPORATION, EXCEPT THAT THE EXECUTIVE COMMITTEE SHALL HAVE NO POWER OR AUTHORITY AS TO THE FOLLOWING: (I) THE FILLING OF VACANCIES ON THE BOARD, (II) THE FILLING OF VACANCIES ON THE EXECUTIVE, AUDIT, FINANCE, TRUSTEESHIP, DEVELOPMENT AND COMPENSATION COMMITTEES, (III) THE ADOPTION, AMENDMENT OR REPEAL OF THE BYLAWS, (IV) THE AMENDMENT OR REPEAL OF ANY RESOLUTION OF THE BOARD. SIGNIFICANT ACTIONS OF THE EXECUTIVE COMMITTEE SHALL BE REPORTED AT THE NEXT MEETING OF THE BOARD. MEETINGS OF THE EXECUTIVE COMMITTEE MAY BE CALLED, AND SHALL BE CHAIRED, BY THE CHAIRMAN OF THE BOARD, OR IN HIS ABSENCE, THE VICE CHAIRMAN OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS COMPLETED BY AN INDEPENDENT PUBLIC ACCOUNTING FIRM AND IS REVIEWED AND APPROVED BY THE AUDIT COMMITTEE. A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C ON A YEARLY BASIS, ALL MEMBERS OF THE BOARD OF TRUSTEES ARE PROVIDED THE PHIPPS CONFLICT OF INTEREST POLICY AND THE RELATED PROCEDURES. THEY ARE THEN REQUIRED TO COMPLETE THE CONFLICT OF INTEREST DISCLOSURE STATEMENT IDENTIFYING ANY POTENTIAL CONFLICTS, IDENTIFYING ANY OTHER BOARDS THEY MAY BE A MEMBER OF, AND IDENTIFYING THEIR EMPLOYER. THE TRUSTEESHIP COMMITTEE OF THE BOARD OF TRUSTEES IS THE GROUP RESPONSIBILE FOR ASSURING THAT EVERY DISCLOSURE STATEMENT IS RETURNED. TRUSTEES THAT HAVE A CONFLICT ARE ASKED TO VOICE THEIR AFFILIATIONS IN COMMITTEE AND FULL BOARD MEETINGS WHERE A DECISION RELATED TO THAT AFFILIATION VIA VOTE WILL BE MADE. ONCE VOICED, THE TRUSTEE ABSTAINS FROM VOTING ON THE DECISION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE PRESIDENT AND CEO IS DETERMINED EACH YEAR BY THE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES. THIS PROCESS HAS BEEN IN PLACE SINCE 1993 WHEN PHIPPS BECAME A NON-PROFIT. IN FISCAL YEAR 2015, THE COMPENSATION COMMITTEE EMPLOYED AN EXTERNAL FIRM TO PERFORM BENCHMARKING ANALYSIS REGARDING BOTH THE SALARIES OF THE PRESIDENT AND CEO AND THE DEPARTMENTAL DIRECTORS. THE COMPENSATION OF THE DEPARTMENTAL DIRECTORS IS DETERMINED BY THE PRESIDENT AND CEO AND DISCUSSED WITH THE CHAIRPERSON OF THE BOARD OF TRUSTEES. THE OVERALL RAISE PERCENTAGES ARE APPROVED AND DISCUSSED AS PART OF PHIPPS' YEARLY BUDGETING PROCESS. THE BUDGET ITSELF IS THEN APPROVED BY THE BOARD OF TRUSTEES BEFORE IMPLEMENTATION. FORM 990, PART VI, SECTION C, LINE 19 PHIPPS MAKES ALL GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC VIEWING. ANY PERSON INTERESTED IN THIS INFORMATION CAN CONTACT THE CFO IN ADVANCE TO MAKE ARRANGEMENTS TO VIEW THE INFORMATION ON SITE, OR IF APPROPRIATE, THE INFORMATION CAN BE MAILED OR E-MAILED TO THE INDIVIDUAL FOR REVIEW. SEE CONTACT INFORMATION IN PART VI, SECTION C, ITEM 20. FORM 990, PART IX, LINE 11G PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 894,322. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 28,620. TOTAL EXPENSES 922,942. SECURITY: PROGRAM SERVICE EXPENSES 240,166. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 240,166. TEMPORARY LABOR: PROGRAM SERVICE EXPENSES 168,099. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 168,099. OUTSOURCED IT: PROGRAM SERVICE EXPENSES 154,112. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 154,112. FORM 990, PART XII, LINE 2C, OVERSIGHT OF FINANCIAL STATEMENT AUDIT: THE AUDIT COMMITTEE OF THE BOARD OF TRUSTEES ASSUMES THE RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS. THE AUDIT COMMITTEE MEETS AT LEAST ONCE A YEAR TO REVIEW THE FINANCIAL STATUS OF PHIPPS AND ALSO MEETS AS A COMMITTEE WITH THE EXTERNAL INDEPENDENT AUDITORS TO REVIEW THE AUDITED FINANCIAL STATEMENTS. AFTER REVIEW BY THE AUDIT COMMITTEE, THE AUDITED FINANCIAL STATEMENTS ARE PROVIDED TO THE FULL BOARD OF TRUSTEES FOR FINAL APPROVAL AND PUBLICATION. IN ADDITION, EACH YEAR, THE AUDIT COMMITTEE DISCUSSES THE SELECTION OF THE INDEPENDENT EXTERNAL ACCOUNTANTS. THE COMMITTEE MAKES A RECOMMENDATION TO CONTINUE WITH THE CURRENT AUDITORS OR TO BID OUT THE PROCESS TO THE FULL BOARD OF TRUSTEES WHO THEN VOTE ON THE FINAL RECOMMENDATION. 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