2020-05-13T11:29:14-05:00 2019-12-31 420714325 RSM US LLP 9801 WASHINGTONIAN BLVD STE 500 GAITHERSBURG MD 20878 990 2019-01-01 521081024 INDEPENDENT SECTOR INDE 2024676100 1602 L STREET NW NO 900 WASHINGTON DC 20036 VICTOR REINOSO CHIEF OPERATING OFFICER 2024676100 2020-05-12 1 WILLIAM E TURCO CPA P00369217 3012963600 66.98.98.5 2020-05-12 09:23:30 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 00BFBB601F26E6691F3C42FDB75EEBE807206D5E 2019 2020-09-23 17:36:50Z DAN CARDINALI 1602 L STREET NW NO 900 WASHINGTON DC 20036 9827792 0 X WWW.INDEPENDENTSECTOR.ORG X 1980 DC WE ENVISION A WORLD OF ENGAGED INDIVIDUALS, ROBUST INSTITUTIONS, AND VIBRANT COMMUNITIES WORKING TOGETHER TO IMPROVE LIVES AND THE NATURAL WORLD, AND STRENGTHEN DEMOCRATIC SOCIETIES. TO HELP CREATE THIS FUTURE, WE LEAD AND CATALYZE THE CHARITABLE COMMUNITY, PARTNERING WITH GOVERNMENT, BUSINESS, AND INDIVIDUALS TO ADVANCE THE COMMON GOOD. 17 17 44 350 -121727 0 7810916 7668893 537205 589294 368268 294543 107088 -308434 8823477 8244296 0 0 0 0 5187273 4896307 0 0 749374 4629783 4515186 9817056 9411493 -993579 -1167197 40191068 39594883 12154250 11624919 28036818 27969964 X WE ENVISION A WORLD OF ENGAGED INDIVIDUALS, ROBUST INSTITUTIONS, AND VIBRANT COMMUNITIES WORKING TOGETHER TO IMPROVE LIVES AND THE NATURAL WORLD, AND STRENGTHEN DEMOCRATIC SOCIETIES. TO HELP CREATE THIS FUTURE, WE LEAD AND CATALYZE THE CHARITABLE COMMUNITY, PARTNERING WITH GOVERNMENT, BUSINESS, AND INDIVIDUALS TO ADVANCE THE COMMON GOOD. 0 0 4726122 464159 OVERVIEWINDEPENDENT SECTOR IS THE ONLY NATIONAL MEMBERSHIP ORGANIZATION THAT BRINGS A DIVERSE SET OF NONPROFITS, FOUNDATIONS, AND CORPORATIONS TOGETHER TO ADVANCE THE COMMON GOOD. THE IS MEMBERSHIP OF 400 ORGANIZATIONS REPRESENTS A CROSS-SECTION OF THE CHARITABLE COMMUNITY INCLUDING LOCAL, REGIONAL AND NATIONAL PUBLIC CHARITIES, FOUNDATIONS, CORPORATE GIVING PROGRAMS, AND OTHER ORGANIZATIONS COMMITTED TO ADVANCING THE COMMON GOOD. WE ENGAGE MEMBERS OF DIFFERENT TYPES, SIZES, MISSION AREAS, AND GEOGRAPHIES, AND INVOLVE OUR MEMBERSHIP IN OUR EFFORTS TO STRENGTHEN THE CHARITABLE COMMUNITY. THIS INCLUDES DEVELOPING POLICY POSITIONS AND AMPLIFYING THE VOICE OF THE CHARITABLE COMMUNITY TO POLICYMAKERS, SUPPORTING AND DEVELOPING ESTABLISHED AND EMERGING LEADERS, AND PROMOTING GOOD GOVERNANCE STANDARDS. MEMBERS ARE INFORMED THROUGH OUR DAILY AND MONTHLY COMMUNICATIONS, AND THROUGH REPORTS ON RELEVANT TOPICS PROVIDING INSIGHT INTO THE FORCES SHAPING THE CHARITABLE COMMUNITY. MEMBERS ARE ENGAGED THROUGH COMMITTEES, AD HOC GROUPS, ONLINE AND IN-PERSON EVENTS, AND AT UPSWELL, WHERE THEY BRING THEIR THOUGHT LEADERSHIP AND EXPERTISE, AS WELL AS THEIR DESIRE TO FURTHER DEVELOP THEIR SKILLS AND KNOWLEDGE AND CONNECT WITH OTHER CHANGEMAKERS. INDEPENDENT SECTOR IS EXPANDING THE WAYS WE ENGAGE CHANGEMAKERS TO BUILD COMMUNITY IN THE SECTOR, LEAD ON POLICY ISSUES ON BEHALF OF THE SECTOR, AND BUILD KNOWLEDGE FOR ACCELERATING THE SECTOR'S IMPACT. IN 2019, IS HELD ITS SECOND UPSWELL CONVENING, A NEW ANNUAL GATHERING AND PLATFORM FOR ENGAGEMENT THAT HARNESSES THE POWER OF COMMUNITY-SERVICE ORGANIZATIONS AND THE BROADER SOCIAL SECTOR TO BRING ABOUT POSITIVE CHANGE AND STRENGTHEN THE BONDS OF CIVIL SOCIETY. UPSWELL GROWS OUT OF THE TRADITION OF THE INDEPENDENT SECTOR CONFERENCE, BRINGING TOGETHER CHANGEMAKERS IN A HIGHLY INTERACTIVE EXPERIENCE WHERE THEY WILL LEARN NEW SKILLS, BUILD DEEPER RELATIONSHIPS, BE OUT IN THE COMMUNITY, AND COLLABORATE ON ACTION-ORIENTED PROJECTS. OUR SECOND UPSWELL SUMMIT WAS HELD IN CHICAGO ON NOVEMBER 13-15, 2019. OVER 1,500 CHANGEMAKERS FROM ACROSS THE COUNTRY TOOK PART IN THE UPSWELL SUMMIT AND RELATED GATHERINGS. IS CONTINUES TO ADVANCE A SOLUTIONS-ORIENTED POLICY AGENDA, DRIVEN BY RESEARCH AND SUPPORTED BY STRONG SECTOR PARTNERSHIPS. WE ENGAGE MEMBER ORGANIZATIONS, ACADEMICS, LEGAL EXPERTS, AND OTHER STAKEHOLDERS TO CULTIVATE NEW LEGISLATIVE CHAMPIONS AND GENERATE NEW DATA TO INFORM OUR EFFORTS. IS CONTINUES TO OFFER COMPREHENSIVE RESOURCES ON ETHICS, ACCOUNTABILITY, AND GOOD GOVERNANCE. OUR COMPETITIVE FELLOWS PROGRAM FOR NEXT GENERATION LEADERS SAW AN UNPRECEDENTEDLY LARGE AND DIVERSE APPLICANT POOL IN 2019, WITH SIMILARLY STRONG DIVERSITY IN REPRESENTATION AMONG THE NGEN LEADERSHIP AWARD APPLICANT POOL AND GROUP OF FINALISTS. AND WE PILOTED A NEW SECTOR HEALTH REPORT THAT WILL HELP NONPROFIT LEADERS AND POLICY MAKERS BETTER UNDERSTAND THE INTERCONNECTED TRENDS, NEEDS, AND CHALLENGES IMPACTING NONPROFIT ORGANIZATIONS AND THEIR WORK.IN 2019 WE FURTHER CEMENTED THE CONSTRUCT OF THREE STRATEGIC DRIVERS FOR THE ORGANIZATION AND FURTHER STRENGTHENED THAT WORK EACH OF WHICH SPEAKS DIRECTLY TO A BODY OF WORK THAT PROPELS THE ORGANIZATION TOWARD MISSION ACHIEVEMENT. THOSE STRATEGIC DRIVERS ARE: (1) COMMUNITY BUILDING; (2) POLICY LEADERSHIP; AND (3) ACCELERATING SECTOR IMPACT. OUR COMMUNITY BUILDING AND POLICY LEADERSHIP "STRATEGIC DRIVERS" HAVE A DIRECT HISTORICAL TIE TO THE FOUNDING OF THE ORGANIZATION. AT THE TIME OF OUR FOUNDING, JOHN GARDNER SPOKE CLEARLY ABOUT THE NEED FOR A "VITAL MEETING GROUND" FOR OUR SECTOR A PLACE WHERE SECTOR LEADERS COULD COME TOGETHER TO LEARN, TO SHARE IDEAS, AND TO BUILD A COLLECTIVE SENSE OF AGENCY, OR VOICE, FOR THE NONPROFIT SECTOR. OUR COMMUNITY BUILDING WORK OF TODAY BUILDS ON THAT THEME, USING NEW MEANS OF CONTINUOUS ENGAGEMENT TO BUILD OUR COMMUNITY AND GROW OUR SENSE OF "SECTOR-NESS." SIMILARLY, GARDNER SPOKE OF INDEPENDENT SECTOR AS THE ORGANIZATION THAT WOULD WORK WITH THE POLICY MAKING COMMUNITY TO MAKE CERTAIN THAT THE INTERESTS OF CHARITABLE NONPROFITS WERE PROTECTED AND PROMOTED IN THE POLICY MAKING PROCESS. TODAY, PUBLIC POLICY LEADERSHIP FOR INDEPENDENT SECTOR MEANS NOT ONLY PROTECTING THE INTERESTS OF OUR SECTOR BUT WORKING PROACTIVELY TO SHAPE THE POLICY ENVIRONMENT AND POLICY CONVERSATIONS IN WAYS THAT BETTER EQUIP SECTOR ORGANIZATIONS TO MEET THE CHALLENGES AND THE OPPORTUNITIES FOUND IN OUR NATION TODAY. FINALLY, THE THIRD LEG OF OUR STOOL "ACCELERATING SECTOR IMPACT" FOCUSES ON A SELECT AREA OF PROGRAMMATIC ACTIVITY WHEREIN WE CAN MAKE SECTOR ORGANIZATIONS MORE EFFECTIVE AND MORE EFFICIENT IN THE PURSUIT OF THEIR RESPECTIVE MISSIONS. OUR HALLMARK EFFORT HERE CONTINUES TO BE OUR ETHICS AND ACCOUNTABILITY WORK AND THE 33 PRINCIPLES FOR GOOD GOVERNANCE AND ETHICAL CONDUCT. COMMUNITY BUILDINGIS WAS FOUNDED WITH THE INTENTION OF BEING THE "VITAL MEETING GROUND" FOR AMERICA'S CHANGEMAKERS AND PROBLEM SOLVERS. BY EXPANDING OUR CADRE OF SOCIAL CHANGE AGENTS BEYOND NONPROFIT AND PHILANTHROPIC PARTNERS, AND BY CREATING A PLATFORM WHERE COMMUNITY PRACTICE OF NATIONAL RELEVANCE CAN BE SHARED, WE FACILITATE CHANGEMAKERS BUILDING A COMMUNITY WHERE ALL CAN THRIVE. UPSWELL CHICAGOOUR DESIRED RESULT FOR UPSWELL CHICAGO WAS TO BUILD AND EQUIP A DIVERSE COMMUNITY OF CHANGEMAKERS DEDICATED TO ENSURING A SOCIETY WHERE ALL CAN THRIVE. TO THAT END, OUR PRELIMINARY SURVEY RESULTS FROM UPSWELL CHICAGO PARTICIPANTS ARE ENCOURAGING AS THE MAJORITY OF ATTENDEES STATED THAT THEY WALKED AWAY FROM UPSWELL WITH A NEW IDEA ON HOW TO DO THEIR WORK AND MADE A NEW CONNECTION WITH SOMEONE AT UPSWELL THAT WILL IMPROVE THE WAY THEY DO THEIR WORK.TO ACHIEVE THESE RESULTS, WE BEGAN BY BUILDING ON OUR DATA AND ANALYSIS FROM UPSWELL LA. FUNDAMENTALLY, WE ENDEAVORED TO PARTNER DIFFERENTLY WITH THE CHICAGO COMMUNITY TO CREATE UPSWELL CHICAGO. THE THREE-DAY SUMMIT TOOK PLACE ON NOVEMBER 13-15, 2019, A CULMINATION OF MORE THAN A YEAR OF WORK TO PARTNER DIFFERENTLY WITH COMMUNITY.UPSWELL ACCELERATOR BUILDING ON OUR LEARNINGS FROM UPSWELL LA, IN CHICAGO WE FORMED AN UPSWELL ACCELERATOR GROUP WHICH MET FIVE TIMES THROUGHOUT THE YEAR. THE MEMBERS OF THE ACCELERATOR REPRESENTED SOME OF THE MOST ESTABLISHED INSTITUTIONS IN THE CITY, SUCH AS THE CHICAGO COMMUNITY TRUST AND CROWN FAMILY PHILANTHROPIES WHO SERVED AS THE CO-CHAIRS OF THE EVENT, AS WELL AS SMALLER COMMUNITY-BASED ORGANIZATIONS, WHICH MAKE UP THE FABRIC OF CHICAGO. THE UPSWELL ACCELERATOR, RATHER THAN PROVIDING CONTENT, SERVED AS A COMMUNITY HUB TO FURTHER PROPEL IS INTO COMMUNITY TO ELEVATE THE UNIQUE ASPECTS OF CHICAGO WHICH WOULD BE MOST RELEVANT TO THE NATIONAL CHANGEMAKERS WHO ATTENDED UPSWELL. THE ACCELERATOR CHOSE TO FOCUS ON ADVANCING A RACIAL EQUITY FRAMEWORK FOR CHICAGO. THROUGH THIS EFFORT, COMMUNITY ORGANIZERS WORKED WITH THE ACCELERATOR MEMBERS TO DESIGN FOCUS GROUPS THAT INCLUDED THE PERSPECTIVES OF 200+ CHICAGOANS. THE FOCUS GROUPS INTENTIONALLY TARGETED THE INPUT FROM SOCIAL WORKERS, NURSES, TEACHERS, CASEWORKERS, CAREGIVERS, LOW-WAGE AND UNDEREMPLOYED/UNEMPLOYED WORKERS, DEPARTMENT STORE EMPLOYEES, SINGLE-PARENTS, YOUNG ADULTS 18-35 YEARS OLD, SERVICE WORKERS, DAY LABORERS AND RETURNING CITIZENS. THESE FOCUS GROUPS SURFACED THREE PRIORITY AREAS THAT THE COMMUNITY FELT HAD AN URGENT NEED FOR RACIAL EQUITY FOCUS: HOUSING, EDUCATION, AND ECONOMIC ACCESS.UPSWELL SUMMITOVER HALF OF THE 2019 PROGRAM AT THE SUMMIT WAS CROWDSOURCED THROUGH THE CO-CREATE CAMPAIGN, AN INVITATION FOR PROPOSALS FOR A WIDE RANGE OF ACTIVITIES AT UPSWELL, THAT GENERATED HUNDREDS OF SUBMISSIONS. AS A RESULT OF THIS WORK, UPSWELL PROGRAMMING ALSO SHIFTED SIGNIFICANTLY WITH:- AN INCREASE OF LOCAL PARTNER ENGAGEMENT BY 28% (OR 239 PARTNERS)- 1,540 CHANGEMAKERS ATTENDING (10%+ GROWTH OVER 2018) WITH 53% BEING FROM THE LOCAL COMMUNITY.- UPSWELL CHICAGO PROGRAM CONTENT INCREASED BY 40% AND FEATURED 310 ACTIVITIES (AS COMPARED TO UPSWELL 2018) AND FEATURED 25% MORE SPEAKERS (AS COMPARED TO UPSWELL 2018). - EIGHT OUT OF THIRTEEN OF OUR MAIN STAGE SPEAKERS SHOWCASING THEIR WORK ON RACIAL EQUITY. - 27% (OR 86 OF THE 319 SPEAKERS) BEING FROM CHICAGO- 62 UNIQUE EVENTS WHICH SHOWCASED THE POWERFUL WORK THAT'S TRANSFORMING LIVES IN CHICAGOLAND.THE UPSWELL SUMMIT HAS ALSO CONTINUED TO EVOLVE AS A PLATFORM FOR CHANGEMAKERS TO ENHANCE THE IMPACT OF THEIR OWN WORK. FOR EXAMPLE, ON TUESDAY, NOVEMBER 13, THE ASPEN INSTITUTE HOSTED ITS INCLUSIVE AMERICA PROJECT WHICH SHOWCASED CASE STUDIES WITHIN THE FAITH-BASED COMMUNITIES TO ASPEN'S KEY PARTNERS. EQUITY IN THE CENTER HOSTED A FULL DAY, "BUILDING A RACE EQUITY CULTURE" THAT PROVIDED A DEEP DIVE ON RACIAL EQUITY PRACTICES AND TRENDS. LASTLY, LEADERSHIP FOUNDATIONS AND ITS MEMBER COMMUNITIES HOSTED AN EIGHT- HOUR PRE-CONVENING TO HELP EQUIP FAITH-BASED LEADERS TO HEAL CIVIL SOCIETY. 1191208 ACCELERATING SECTOR IMPACT:WORKING IN COLLABORATION WITH OTHERS, WE CREATE, CURATE, AND DISSEMINATE KNOWLEDGE DESIGNED TO HELP ORGANIZATIONS RESPOND TO CHALLENGES AND OPPORTUNITIES, INCREASE THEIR EFFECTIVENESS, AND FULFILL THEIR MISSIONS.ETHICS AND ACCOUNTABILITY:WE ARE NATIONALLY RECOGNIZED FOR OFFERING COMPREHENSIVE RESOURCES ON ETHICS, ACCOUNTABILITY, TRANSPARENCY, AND GOOD GOVERNANCE. WITH POLLS SHOWING ERODING TRUST IN THE CHARITABLE SECTOR, THIS WORK IS MORE VITAL THAN EVER. ONE OF OUR FLAGSHIP INITIATIVES IS THE PRINCIPLES FOR GOOD GOVERNANCE AND ETHICAL PRACTICE, WHICH OUTLINES 33 PRINCIPLES OF SOUND PRACTICE FOR CHARITABLE ORGANIZATIONS AND FOUNDATIONS RELATED TO LEGAL COMPLIANCE AND PUBLIC DISCLOSURE, EFFECTIVE GOVERNANCE, FINANCIAL OVERSIGHT, AND RESPONSIBLE FUNDRAISING. IN 2019, PRINCIPLES RESOURCES WERE ACCESSED OVER 28,000 TIMES (AS OF 12/31/2019). WE ALSO ENGAGED OVER 200 PEOPLE THROUGH IN-PERSON OR ONLINE EVENTS RELATED TO THE PRINCIPLES, INCLUDING OUR NEWLY LAUNCHED ONLINE ETHICAL LEADERSHIP COURSE IN PARTNERSHIP WITH THE NONPROFIT LEADERSHIP ALLIANCE. THE COURSE IS DESIGNED TO HELP LEADERS STRENGTHEN THEIR CRITICAL THINKING SKILLS IN ETHICAL DECISION-MAKING, AND COVERS KEY ISSUES AND RISKS FACING SOCIAL IMPACT LEADERS. SECTOR HEALTH INDEX:INDEPENDENT SECTOR DEVELOPED AND TESTED TWO PROTOTYPES, DESIGNED TO BE EASY-TO-UNDERSTAND MEASURES OF THE SECTOR'S WELL-BEING, WHICH FUNDERS, ADVOCATES, AND MEDIA CAN USE TO DIAGNOSE PROBLEMS, IDENTIFY SOLUTIONS, AND ADVOCATE FOR THE SECTOR AS A WHOLE. IN ADDITION TO AGGREGATING EXISTING INFORMATION ABOUT NONPROFITS, INDEPENDENT SECTOR PARTNERED WITH ACADEMIC RESEARCHERS AND EDELMAN TO DEVELOP NEW VARIABLES TO PROVIDE A MORE WELL-ROUNDED PICTURE OF THE SECTOR'S HEALTH. PROJECT EVIDENT HELPED TEST THE TWO PROTOTYPES AMONG TARGET AUDIENCES. OVER 80 PERCENT OF PARTICIPANTS CONFIRMED THAT THE PROTOTYPES WILL BE A HELPFUL RESOURCE AND THEY PROVIDED CONSTRUCTIVE FEEDBACK ON HOW TO IMPROVE A FINAL PRODUCT BEFORE IT LAUNCHES IN 2020.DEVELOPING NEXT GENERATION LEADERSHIP:WE CONTINUED OUR HIGHLY SUCCESSFUL NGEN FELLOWS AND AWARD PROGRAM FOR EMERGING CHARITABLE SECTOR LEADERS AGE 40 AND UNDER. THE AMERICAN EXPRESS NGEN LEADERSHIP AWARD IS PRESENTED ANNUALLY TO ONE CHANGEMAKER AGE 40 OR YOUNGER WHO HAS DEMONSTRATED TRANSFORMATIVE IMPACT AND COLLABORATIVE LEADERSHIP IN ADDRESSING A CRITICAL SOCIETAL NEED. THE NGEN FELLOWS PROGRAM IS A SELECTIVE FELLOWSHIP OPPORTUNITY FOR TWELVE EMERGING LEADERS EACH YEAR. BASED ON PARTICIPANT DATA AND ANALYSIS, THE NGEN FELLOWS PROGRAM RESULTS HAVE BEEN REVISED AND BROADENED TO ENSURE THAT THIS INITIATIVE CONTINUES TO ENSURE LEADERS ARE PREPARED TO ADDRESS SOCIETY'S TOUGHEST CHALLENGES. BY FOCUSING ON A BROADER SET OF RESULTS, WE BELIEVE THE COHORT WILL EQUIP AND EXPAND A STRATEGIC, DURABLE, AND ABOVE ALL DIVERSE TALENT PIPELINE THAT CONTRIBUTES TO THE TRANSFORMATION OF THE NONPROFIT AND PHILANTHROPIC SECTOR.THIS PROGRAMMATIC SHIFT, COUPLED WITH THE STRUCTURAL BARRIERS WHICH WERE REMOVED LAST YEAR, RESULTED IN THE 2019 NGEN FELLOWS CONTINUED STRONG PERFORMANCE IN THE NUMBER OF NOMINATIONS AND APPLICATIONS. OF THE 477 NOMINATIONS AND 146 APPLICATIONS, 58% WERE FROM PEOPLE OF COLOR, AND 68% IDENTIFIED AS FEMALE. IN DECEMBER 2019 WE GRADUATED THE 12 NGEN FELLOWS INTO THE LARGER AMERICAN EXPRESS LEADERSHIP ACADEMY ALUMNI NETWORK. 75% OF FELLOWS WERE FEMALE AND 92% IDENTIFIED AS PEOPLE OF COLOR.THE NGEN FELLOWS ALUMNI ARE A GROWING COMMUNITY OF LEADERS THAT SERVES AS A HIGHLY VALUED PROFESSIONAL NETWORK THAT MANY USE IN TIMES OF NEED. WE ARE CONTINUING TO ITERATE ON OUR ENGAGEMENT WITH THIS COMMUNITY IN WAYS WHICH ARE RELEVANT TO THEIR NEEDS AND UNIQUE TO THE STRENGTHS OF IS. FOR EXAMPLE, AT UPSWELL IN 2019, A NUMBER OF NGEN ALUMNI SPOKE AT THE EVENT. IN ADDITION, THE 2019 NGEN FELLOWS ALSO LED A WORKSHOP ON MAKING CONNECTIONS THROUGH THE POWER OF STORY.SIMILARLY, AN EXPANSION OF THE CRITERIA FOR THE NGEN LEADERSHIP AWARD IN 2018 TO RECOGNIZE CHANGEMAKERS WORKING ACROSS THE SOCIAL GOOD LANDSCAPE, CONTINUED TO LEAD TO GROWTH IN THE DIVERSITY OF AWARD NOMINEES AND APPLICANTS IN 2019. MORE THAN 50 CHANGEMAKERS APPLIED FOR AWARD CONSIDERATION FROM A LARGER POOL OF NEARLY 120 TALENTED NOMINEES, WITH 67% OF AWARD APPLICANTS IDENTIFYING AS FEMALE AND 59% AS PEOPLE OF COLOR. A SELECTION ADVISORY GROUP, COMPRISED OF 15 IMPRESSIVE LEADERS FROM ACROSS THE CHARITABLE COMMUNITY, COMMITTED A SIGNIFICANT AMOUNT OF TIME TO CAREFULLY CONSIDER APPLICANTS TO SELECT SIX FINALISTS FOR THE 2019 AWARD. THROUGH A PUBLIC VOTING PROCESS, MEGAN JACOBS WAS RECOGNIZED AS THE RECIPIENT OF THE 2019 AMERICAN EXPRESS NGEN LEADERSHIP AWARD FOR HER CONTRIBUTIONS TO ADDRESS PUBLIC HEALTH CHALLENGES, AND PARTICULARLY FOR HER WORK TO LAUNCH A PROGRAM AT THE TRUTH INITIATIVE TO HELP TEENS QUIT VAPING. FOR THE FIRST TIME, ALL SIX AWARD FINALISTS LED PROGRAMMATIC ACTIVITIES HIGHLIGHTING THEIR LEADERSHIP AT UPSWELL IN CHICAGO. IMPACT THROUGH TECHNOLOGY:WITH THE UNDERSTANDING THAT CIVIL SOCIETY'S IMPACT INCREASES EXPONENTIALLY WHEN TECHNOLOGY IS FULL EMBRACED AND LEVERAGED, INDEPENDENT SECTOR HAS SOUGHT OPPORTUNITIES FOR COLLABORATION THAT FOCUS ON DEMONSTRATING THE CONNECTION BETWEEN TECHNOLOGY AND IMPACT. INDEPENDENT SECTOR AND ACCENTURE PARTNERED IN 2018 FOR THE INAUGURAL INNOVATE FOR GOOD CHALLENGE, AN OPPORTUNITY FOR ORGANIZATIONS TO BE RECOGNIZED FOR THEIR SOCIAL IMPACT THROUGH ARTIFICIAL INTELLIGENCE, BLOCKCHAIN, OR EXTENDED REALITY. IN 2019, THE SECOND INNOVATE FOR GOOD CHALLENGE WAS HELD IN PARTNERSHIP WITH LEAD SPONSOR ACCENTURE AND MEDIA PARTNER THE CHRONICLE OF PHILANTHROPY, WITH THE AWARDEES RECOGNIZED AT UPSWELL CHICAGO. NOMINATIONS INCREASED IN 2019 WITH 57 NOMINATIONS LEADING TO THE RECOGNITION OF 17 SEMIFINALIST ORGANIZATIONS, 12 FINALIST ORGANIZATIONS, THREE TOP WINNERS, AND THREE HONORABLE MENTIONS. THE FIRST-PLACE WINNER, COLLECTIVE LIBERTY, WORKS TO ERADICATE HUMAN TRAFFICKING BY RAPIDLY SCALING DATA-DRIVEN BEST PRACTICES THROUGH ARTIFICIAL INTELLIGENCE TECHNOLOGY. 1048068 84660 COMMUNICATIONS:IN SUPPORT OF ITS STRATEGIC DRIVERS, INDEPENDENT SECTOR WORKS TO COMMUNICATE THE VALUE OF THE CHARITABLE COMMUNITY TO THE MEDIA, ELECTED OFFICIALS, THE PUBLIC, AND STAFF AT PUBLIC CHARITIES AND FOUNDATIONS WHILE EDUCATING ITS MEMBERSHIP AND AUDIENCES ACROSS THE SOCIAL GOOD SPACE ON EMERGING CHALLENGES, OPPORTUNITIES, AND TRENDS. COVERAGE OF INDEPENDENT SECTOR ACTIVITIES AND LEADERSHIP APPEARED REGULARLY IN NATIONAL OUTLETS AND TRADE PUBLICATIONS. JOURNALISTS AND EDITORIAL STAFF RELY ON IS FOR DATA AND EXPERTISE ON CRITICAL TOPICS INCLUDING ADVOCACY AND MOBILIZATION, VOLUNTEERING, ETHICS AND ACCOUNTABILITY, THE HEALTH OF CIVIL SOCIETY, AND TRUST IN THE NONPROFIT SECTOR, AND PUBLIC POLICY ISSUESPARTICULARLY THOSE INVOLVING TAX AND FISCAL POLICY AFFECTING THE CHARITABLE COMMUNITY. IN 2019, INDEPENDENT SECTOR CONTINUED TO INCREASE ITS AUDIENCE SIZE AND STRENGTHEN ENGAGEMENT WITHIN OUR COMMUNITY. IN ADDITION TO SIGNIFICANTLY INCREASING SOCIAL MEDIA ENGAGEMENT AND WEB TRAFFIC, WE LAUNCHED NEW INITIATIVES THAT INCLUDED: - PARTNERING WITH THE CHRONICLE OF PHILANTHROPY FOR AN IN-DEPTH SUPPLEMENT TITLED POWER, COMMUNITY, AND CONVENING. THE PROJECT FEATURED NEW CONTENT FROM IS LEADERSHIP, NEW YORK TIMES COLUMNIST DAVID BROOKS, LINCOLN CENTER FOR THE PERFORMING ARTS PRESIDENT- LAUNCHING THREE MAJOR POLICY RESEARCH PRODUCTS: SURVEY RESEARCH QUANTIFYING THE IMPACT OF UBIT PROVISIONS IN THE 2017 TAX BILL, VALUES-BASED MESSAGING RESEARCH ON CHARITABLE GIVING, AND ECONOMIC MODELING OF FIVE PROPOSALS TO DRAMATICALLY EXPAND CHARITAB- BROADCASTING RESULTS FROM A CANDIDATE QUESTIONNAIRE THAT INVITED ALL 2020 PRESIDENTIAL CAMPAIGNS TO ADDRESS ISSUES OF CONCERN TO THE NONPROFIT SECTOR. - PILOTING A NEW WEEKLY BLOG SERIES, KEEPING IT ETHICAL, THAT HIGHLIGHTS THE IMPORTANCE OF EACH OF THE 33 PRINCIPLES FOR GOOD GOVERNANCE AND ETHICAL PRACTICE, ALONG WITH OTHER HELPFUL RESOURCES FOR NONPROFIT ORGANIZATIONS.WE ALSO SIGNIFICANTLY EXPANDED OUR BRAND REACH AND ENGAGEMENT FOR UPSWELL A RAPIDLY GROWING COMMUNITY OF THOUSANDS CHANGEMAKERS THAT COMES TOGETHER ANNUALLY FOR A THREE-DAY SUMMIT. OVER THE COURSE OF THE YEAR, WE DEPLOYED A COMPREHENSIVE CONTENT AND POSITIONING STRATEGY DESIGNED TO FOSTER A STRONG SENSE OF COMMUNITY AMONG UPSWELL STAKEHOLDERS AND, IN PARTICULAR, ELEVATE SOCIAL GOOD WORK HAPPENING IN OUR 2019 HOST CITY, CHICAGO. ONE OF HIGHEST-IMPACT PROJECTS WAS A DETAILED CHRONICLE OF THE UPSWELL ACCELERATOR. A GROUP OF CHICAGO CHANGEMAKERS UNDERTOOK THE AMBITIOUS TASK OF DEVELOPING A RACIAL EQUITY FRAMEWORK FOR THE CITY. THAT WORK INCLUDED INTENSIVE COMMUNITY FOCUS GROUPS THAT GAVE VOICE TO SOME OF THE CITY'S MOST MARGINALIZED RESIDENTS. THE RACIAL EQUITY FRAMEWORK WAS RECOGNIZED BY THE MAYOR'S OFFICE AS A CRITICAL BODY OF WORK THAT CAN HELP BUILD A STRONGER AND MORE JUST FUTURE FOR THE CITY'S COMMUNITIES. ADDITIONALLY, WE LAUNCHED AN EXTENSIVE DIGITAL COMMUNICATIONS CAMPAIGN THAT BROUGHT TENS OF THOUSANDS OF NEW USERS INTO OUR UPSWELL COMMUNICATIONS CHANNELS. 6965398 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 19 0 1 44 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 17 17 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 0 1 1 0 0 AZ CA CO CT DC FL GA HI IL KS KY MA MD ME MI MS MN NC NH NM NY OH OK PA RI SC TN UT VA WA WI AK X X VICTOR REINOSO 2024676100 1602 L STREET NW 900 WASHINGTON DC 20036 JEFFREY L BRADACH CHAIR OF THE BOARD 1.00 X X 0 0 0 FRED BLACKWELL VICE CHAIR OF THE BOARD 1.00 X X 0 0 0 SONYA CAMPION SECRETARY OF THE BOARD 1.00 X X 0 0 0 JENNIFER FORD REEDY TREASURER OF BOARD 1.00 X X 0 0 0 NICOLE ANDERSON BOARD OF DIRECTOR 1.00 X 0 0 0 ANTONY CHIANG BOARD OF DIRECTOR 1.00 X 0 0 0 JIM CLARK BOARD OF DIRECTOR 1.00 X 0 0 0 JIM GIBBONS BOARD OF DIRECTOR 1.00 X 0 0 0 RON KAGAN BOARD OF DIRECTOR 1.00 X 0 0 0 SARAH KASTELIC BOARD OF DIRECTOR 1.00 X 0 0 0 LARRY KRAMER BOARD OF DIRECTOR 1.00 X 0 0 0 JANINE LEE BOARD OF DIRECTOR 1.00 X 0 0 0 ROBERT L LYNCH BOARD OF DIRECTOR THRU 11/2019 1.00 X 0 0 0 TERRY MAZANY BOARD OF DIRECTOR 1.00 X 0 0 0 MICHAEL MCAFEE BOARD OF DIRECTOR 1.00 X 0 0 0 TIMOTHY J MCCLIMON BOARD OF DIRECTOR THRU 11/2019 1.00 X 0 0 0 DIANE MELLEY BOARD OF DIRECTOR 1.00 X 0 0 0 HENRY TIMMS BOARD OF DIRECTOR 1.00 X 0 0 0 DAVID WILLIAMS BOARD OF DIRECTOR 1.00 X 0 0 0 DANIEL J CARDINALI PRESIDENT & CEO 38.00 X 551587 0 46390 VICTOR REINOSO CHIEF OPERATING OFFICER 38.00 X 255560 0 36442 CAROLYN MOLLEN CFO THRU 1/2020 38.00 X 212661 0 13853 JEFF MOORE CHIEF STRATEGY OFFICER 38.00 X 221669 0 36257 KATHARINE FENGER CPO 38.00 X 187281 0 8516 ROBERT JONES VP, ENGAGEMENT & COMMUNICATION 38.00 X 181520 0 25715 ELIZABETHE CULKIN DIR. CONFERENCE & EVENT MGMT 38.00 X 131029 0 23693 CHRISTIAN CLANSKY DIR. MARKETING & DIGITAL STRATEGY 38.00 X 123540 0 14628 KRISTINA CAMPBELL VP, COMMUNICATION & MKTG 38.00 X 117430 0 20389 GINA CATEDRILL STRICKLAND DIRECTOR, EXECUTIVE OFFICE 38.00 X 116274 0 20824 ELYSE HARRINGTON DIR, OPERATIONS & ADMIN. 38.00 X 115685 0 14846 2214236 0 261553 17 0 1 0 WASHINGTON COUNCIL E&Y 1001 PENNSYLVANIA AVENUE NW SUITE WASHINGTON DC 20004 LEGAL CONSULTING 240000 OSI BEYOND LLC 11921 ROCKVILLE PIKE ROCKVILLE MD 20852 TECHNOLOGY SERVICES 230777 2 1656513 6012380 150 7668893 CONFERENCE FEES 900004 504634 464159 40475 PUBLICATION SALES 900099 84660 84660 589294 188266 188266 14750 14750 1129486 1583496 -454010 -454010 -187007 -267003 106277 0 106277 106277 106277 SUBLEASE INCOME 900099 80296 80296 PARKING SERVICES 812930 50530 50530 130826 8244296 548819 -121727 148311 X 1790213 1007831 626264 156118 2517598 1417325 880722 219551 127062 71532 44449 11081 174532 98256 61056 15220 286902 161516 100366 25020 107515 107515 40098 40098 31162 31162 1656735 1199622 386012 71101 46384 46384 154145 23382 127342 3421 60774 30387 30387 1105316 736896 284989 83431 697548 618635 64469 14444 221075 196065 20432 4578 248405 248405 DUES & SUBSCRIPTIONS 146029 26801 117518 1710 ALLOCATED OVERHEAD 0 1330766 -1474465 143699 9411493 6965398 1696721 749374 534 534 2606186 3127050 2214690 670319 157871 224528 107146 127844 37292218 11938374 26258150 25353844 8072332 9443641 774159 647123 40191068 39594883 1252447 1307152 9571222 8963867 1125000 1125000 205581 228900 12154250 11624919 X 25652318 26343816 2384500 1626148 28036818 27969964 40191068 39594883 -1167197 1100343 0 X 0 1 X 1 0 X 8420635 5146702 10211632 7812260 7668893 39260122 8420635 5146702 10211632 7812260 7668893 39260122 7190074 32070048 1303958 1127031 970891 1005190 852517 5259587 44519709 3502670 0.72040 0.75930 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 17899 17899 7909833 7927732 546387 136597 0 0 673493 536282 572992 546387 2329154 3493731 33216 43011 19335 17899 113461 168373 134071 143248 136597 582289 873434 6639801 1336571 253814 7722558 7181640 -316349 225490 6639801 6612008 779979 210347 7181640 6358065 416003 162060 6612008 4521437 1999216 -32393 130195 6358065 1.00000 0 0 5391820 5391820 26729411 7962922 18766489 2466540 1557236 909304 2704447 2418216 286231 25353844 DEFERRED COMPENSATION PLAN LIABILITY 92586 DEFERRED RENT 2966 DEPOSITS HELD IN ESCROW 133348 228900 X 10846443 1100343 1100343 9746100 31162 -1532966 -1501804 8244296 10913297 1532966 1532966 9380331 31162 31162 9411493 PART V, LINE 4: THE UNRESTRICTED NET ASSETS OF INDEPENDENT SECTOR ARE REPORTED AS UNDESIGNATED AND BOARD DESIGNATED NET ASSETS. UNRESTRICTED NET ASSETS REPRESENT THE PORTION OF EXPENDABLE FUNDS THAT IS AVAILABLE TO SUPPORT THE OPERATIONS OF INDEPENDENT SECTOR, WHILE BOARD DESIGNATED NET ASSETS REPRESENT A PORTION OF UNRESTRICTED NET ASSETS FOR DESIGNATED PURPOSES AND CONSISTS OF A SHORT TERM BUILDING OPERATING FUND AND A LONG TERM RESERVE FUND WHICH WAS CREATED TO ESTABLISH A CORPUS FOR WHICH INVESTMENT INCOME WILL BE USED FOR GENERAL OPERATIONS. AS OF DECEMBER 31, 2019, BOARD DESIGNATED NET ASSETS INCLUDED $500,000 IN THE SHORT TERM BUILDING OPERATING FUND AND $7,222,258 IN THE LONG TERM RESERVE FUND. PART X, LINE 2: UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND THE APPLICABLE INCOME TAX REGULATIONS OF THE DISTRICT OF COLUMBIA, THE INDEPENDENT SECTOR IS EXEMPT FROM TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME. THE INDEPENDENT SECTOR'S NET OPERATING LOSSES (NOL) TOTALED $799,491 AND $741,972 AS OF DECEMBER 31, 2019 AND 2018, RESPECTIVELY, AND WILL BEGIN TO EXPIRE IN 2029. AS OF DECEMBER 31, 2019, THE ASSOCIATION DID NOT REFLECT DEFERRED TAX ASSETS ON A NET BASIS AS A VALUATION ALLOWANCE WAS ESTABLISHED BASED ON CONSIDERATION OF ALL AVAILABLE EVIDENCE. LLC IS A SINGLE MEMBER LIMITED LIABILITY COMPANY THAT HAS ELECTED TO BE TREATED AS A DISREGARDED ENTITY. AS SUCH, LLC IS NOT SUBJECT TO FEDERAL INCOME TAX BUT, RATHER, ITS INCOME OR LOSS INURES TO INDEPENDENT SECTOR. LLC IS SUBJECT TO THE DISTRICT OF COLUMBIA BUSINESS FRANCHISE TAX. THERE WAS NO TAX PROVISION NECESSARY TO BE ACCRUED AS OF DECEMBER 31, 2019. THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (FASB ASC TOPIC 740-10) ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE ORGANIZATION MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. MANAGEMENT EVALUATED THE ORGANIZATION'S TAX POSITIONS AND CONCLUDED THAT THE ORGANIZATION HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, THE ORGANIZATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2015. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON LINE 6B -1,583,496. PARKING SERVICE REVENUE REPORTED ON LINE 11 50,530. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON LINE 6B 1,583,496. PARKING SERVICE REVENUE REPORTED ON LINE 11 -50,530. X X X X X 1 0 0 0 0 0 0 0 0 DANIEL J CARDINALI PRESIDENT & CEO 550276 0 0 0 1311 0 35704 0 14392 0 601683 0 0 0 VICTOR REINOSO CHIEF OPERATING OFFICER 255146 0 0 0 414 0 20259 0 19586 0 295405 0 0 0 CAROLYN MOLLEN CFO THRU 1/2020 212499 0 0 0 162 0 0 0 15258 0 227919 0 0 0 JEFF MOORE CHIEF STRATEGY OFFICER 220895 0 0 0 774 0 17016 0 21237 0 259922 0 0 0 KATHARINE FENGER CPO 170920 0 0 0 16361 0 0 0 9687 0 196968 0 0 0 ROBERT JONES VP, ENGAGEMENT & COMMUNICATION 181152 0 0 0 368 0 13764 0 13032 0 208316 0 0 0 ELIZABETHE CULKIN DIR. CONFERENCE & EVENT MGMT 130374 0 0 0 655 0 9941 0 15338 0 156308 0 0 0 PART I, LINE 4A KATHARINE FENGER RECEIVED A SEVERANCE PAYMENT IN THE AMOUNT OF $16,154. A DISTRICT OF COLUMBIA 566001131 2013-06-04 11600000 TO REFINANCE PURCHASE OF HEADQUARTERS BUILDING 0 0 0 A 2545129 11600000 11600000 2013 1 0 1 1 A 1 0 0 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 1 0 0 0 0 0 A 1 FORM 990, PAGE 2, PART III, LINE 4A: POLICY LEADER AS THE VOICE OF THE CHARITABLE AND PHILANTHROPIC SECTOR, IS WORKS PROACTIVELY TO CREATE A POLICY ENVIRONMENT WHERE CHARITY CAN THRIVE. OUR EFFORTS INCLUDE SHAPING AND ADVANCING A POLICY AGENDA TO PROTECT AND PROMOTE THE SECTOR; INCREASING THE SECTOR'S POLICY PROFICIENCY; AND BUILDING THE SECTOR'S ADVOCACY MUSCLE. HERE ARE SOME OF THE MOST NOTABLE ACCOMPLISHMENTS TO DATE: - INDEPENDENT SECTOR HAS ENGAGED WITH LEGISLATORS ON A WIDE RANGE OF BILLS THAT IMPACT THE SECTOR THIS YEAR. ALONGSIDE PARTNERS, INDEPENDENT SECTOR SUCCESSFULLY LOBBIED TO PASS BILLS THAT REPEALED A RECENT EXPANSION TO THE UNRELATED BUSINESS INCOME TAX (UBIT),, REDUCED AND SIMPLIFIED THE PRIVATE FOUNDATION EXCISE TAX, AND REQUIRED ELECTRONIC FILING OF ANNUAL 990 INFORMATION RETURNS. IT ALSO INCLUDED ADVOCACY TO EXPAND CHARITABLE GIVING INCENTIVES, CLARIFY POLITICAL ACTIVITY RULES AND PROTECT THE JOHNSON AMENDMENT. - THREE MAJOR POLICY RESEARCH PRODUCTS WERE RELEASED IN 2019: SURVEY RESEARCH QUANTIFYING THE IMPACT OF UBIT PROVISIONS IN THE 2017 TAX BILL, VALUES-BASED MESSAGING RESEARCH ON CHARITABLE GIVING, AND ECONOMIC MODELING OF FIVE PROPOSALS TO DRAMATICALLY EXPAND CHARITABLE GIVING INCENTIVES. - OUR MONTHLY VOICES FOR GOOD NEWSLETTER AND PODCAST AND OUR MONTHLY POLICY UPDATE CALLS CONTINUE TO SERVE AS KEY VEHICLES TO KEEP MEMBERS ABREAST OF POLICY AND LEGISLATIVE ACTIVITY OF CONCERN TO THE SECTOR, AND HELP US ENCOURAGE AND OFFER GUIDANCE ON NONPROFIT ADVOCACY. - INDEPENDENT SECTOR'S PUBLIC POLICY COMMITTEE AND OUR PUBLIC POLICY FELLOWS COUNCIL CONTINUE TO PROVIDE STRATEGIC COUNSEL AND ANALYSIS, AND ARE CURRENTLY HELPING THE ORGANIZATION CONSIDER ITS POSITION ON NATIONAL SERVICE AND VOLUNTEERISM POLICY. - IS ENGAGED ALL OF THE 2020 PRESIDENTIAL CAMPAIGNS REGARDING ISSUES OF CONCERN TO THE NONPROFIT SECTOR, RESULTING IN SURVEY FINDINGS FROM KEY CANDIDATES AND A NONPARTISAN CAMPAIGN FORUM ON ISSUES IMPORTANT TO NONPROFITS. NONPARTISAN CIVIC ENGAGEMENT IS AN IMPORTANT POLICY OPPORTUNITY FOR NONPROFITS, AND INDEPENDENT SECTOR SEEKS TO MODEL BEHAVIOR FOR THE SECTOR. - INDEPENDENT SECTOR'S ENTIRE STAFF PARTICIPATED IN OUR SECOND ANNUAL ALL STAFF CAPITOL HILL DAY. DURING MEETINGS WITH 57 CONGRESSIONAL OFFICES, THE STAFF BUILT ITS ADVOCACY SKILLS, INCREASED THE SECTOR'S VISIBILITY WITH LEGISLATORS, AND LIVED OUR COMMITMENT TO THE IDEA THAT EVERY NONPROFIT PROFESSIONAL MUST BE AN ADVOCATE. - NONPROFITS TOOK OVER 900 ACTIONS THROUGH OUR ACTION CENTER, DOUBLE THE ACTIONS TAKEN DURING ALL OF 2018. THE ACTION CENTER ENABLES IS MEMBERS AND OTHERS TO CONTACT FEDERAL LAWMAKERS ABOUT THE IMPACT OF POLICY PROPOSALS ON THEIR ORGANIZATIONS AND COMMUNITIES THEY SERVE. FORM 990, PART VI, SECTION A, LINE 6 IS HAS MEMBERS THAT HELP SUPPORT THE MISSION OF THE ORGANIZATION FORM 990, PART VI, SECTION A, LINE 7A THERE IS ONLY ONE CLASS OF VOTING MEMBERS. THE MEMBERSHIP HAVE THE AUTHORITY TO ELECT DIRECTORS OF THE ORGANIZATION OTHER THAN THE PRESIDENT. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERSHIP HAVE THE AUTHORITY TO APPROVE CHANGES IN THE ARTICLES OF INCORPORATION AND BY-LAWS, MEMBERSHIP DUES AND/OR DUES ASSESSMENT METHODOLOGY, MEMBERSHIP ELIGIBILITY CRITERIA, AFFIRM MAJOR POLICIES AND LEGISLATIVE ACTIONS BY THE BOARD, AS APPROPRIATE, AND ADOPT RESOLUTIONS ON NATIONAL ISSUES OF CONCERNS TO THE MEMBERSHIP, AS APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 11B PRIOR TO FILING, THE FORM 990 IS PRESENTED TO INDEPENDENT SECTOR'S AUDIT COMMITTEE FOR REVIEW. THE CHIEF FINANCIAL OFFICER ALSO REVIEWS THE FORM 990 IN DETAIL WITH THE PRESIDENT AND CHIEF EXECUTIVE OFFICER PRIOR TO OBTAINING THE CEO'S SIGNATURE ON THE DOCUMENT. THE FORM 990 IS ALSO PRESENTED TO THE FULL BOARD OF DIRECTORS FOR REVIEW IN ADVANCE OF FILING. IT IS DISTRIBUTED IN ADVANCE OF THE BOARD MEETING IN ORDER TO ENSURE THAT DIRECTORS HAVE THE OPPORTUNITY FOR A MEANINGFUL REVIEW AND TO ALLOW ALL DIRECTORS THE OPPORTUNITY TO GAIN A FULL UNDERSTANDING OF THE DOCUMENT BEFORE IT IS FILED. INDEPENDENT SECTOR'S AUDITORS PARTICIPATE IN THE BOARD MEETING IN ORDER TO RESPOND TO ANY QUESTIONS THAT DIRECTORS MAY HAVE. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR, BOARD MEMBERS ARE ASKED TO REVIEW INDEPENDENT SECTOR'S CONFLICT OF INTEREST POLICY AND TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT. AMONG OTHER THINGS, THE POLICY MAKES CLEAR THAT ALL DECISIONS OF THE BOARD, OFFICERS AND EMPLOYEES OF INDEPENDENT SECTOR ARE TO BE MADE SOLELY ON THE BASIS OF A DESIRE TO PROMOTE THE BEST INTERESTS OF THE ORGANIZATION AND THE PUBLIC GOOD. THE DISCLOSURE STATEMENT, IN TURN, REQUESTS THAT DIRECTORS IDENTIFY, TO THE BEST OF THEIR KNOWLEDGE, AFFILIATIONS WITH ORGANIZATIONS THAT MAY BE POTENTIALLY RELATED TO THE FINANCIAL OR OTHER SUBSTANTIVE OPERATIONS OF INDEPENDENT SECTOR. THEY ARE ALSO ASKED TO IDENTIFY CIRCUMSTANCES INVOLVING EITHER THEMSELVES, OR A MEMBER OF THEIR EXTENDED FAMILY, THAT MAY BE CONSTRUED AS A CONFLICT OF INTEREST. IF SUCH CIRCUMSTANCE SHOULD ARISE SUBSEQUENT TO SUBMITTING THE DISCLOSURE STATEMENT, THE POLICY SETS FORTH AN ONGOING DISCLOSURE REQUIREMENT. AT THE STAFF LEVEL, INDEPENDENT SECTOR PERSONNEL ALSO ENSURE THAT THERE ARE NO CONFLICTS OF INTEREST WHEN CONSIDERING ENGAGEMENT OF A NEW VENDOR. IF A POTENTIAL CONFLICT IS IDENTIFIED, APPROPRIATE STEPS ARE TAKEN BOTH TO ASSESS THE NATURE OF THE POTENTIAL CONFLICT AND, SUBSEQUENTLY, TO ENSURE THAT THE POSSIBILITY OF AN ACTUAL CONFLICT IS MITIGATED. SUCH MITIGATION MAY BE ACHIEVED THROUGH THE RECUSAL OR FIREWALLING OF THE INDIVIDUAL IN QUESTION, THUS ENSURING THAT THE CONFLICT IS MANAGED AND THE LETTER AND SPIRIT OF THE CONFLICTS POLICY ARE UPHELD. IN ADDITION, WE NOTE THAT DURING THE ANNUAL AUDIT STAFF IDENTIFY AND DISCLOSE TO AUDITORS ALL KNOWN CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15A APART FROM THE ORGANIZATION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER, INDEPENDENT SECTOR'S BOARD OFFICERS (CHAIR, VICE CHAIR, SECRETARY, AND TREASURER) DO NOT RECEIVE COMPENSATION FROM THE ORGANIZATION. AN ANNUAL COMPENSATION REVIEW PROCESS FOR THE CEO TAKES PLACE UNDER THE LEADERSHIP OF THE BOARD CHAIR AND EXECUTIVE COMMITTEE. AN OUTSIDE CONSULTANT IS RETAINED OR SALARY SURVEYS AND 990S ARE REVIEWED TO PROVIDE INDUSTRY COMPARABLE SALARY DATA. AN INTERMEDIATE SANCTIONS ANALYSIS AND RELATED DOCUMENTATION ARE ALSO COMPLETED. THE EXECUTIVE COMMITTEE HAS RESPONSIBILITY FOR MAKING FINAL RECOMMENDATIONS TO THE FULL BOARD OF DIRECTORS REGARDING THE PRESIDENT'S PERFORMANCE EVALUATION AND COMPENSATION. THE BOARD OF DIRECTORS MAKES A FINAL DETERMINATION WITH REGARD TO THESE MATTERS. WITH REGARD TO STAFF COMPENSATION, THE PRESIDENT AND CEO, VICE PRESIDENTS, AND APPROPRIATE STAFF MANAGERS ALSO COMPLETE ANNUAL PERFORMANCE EVALUATIONS. FOR ALL STAFF OTHER THAN THE PRESIDENT AND CEO, IS UTILIZES INDUSTRY COMPARABLE DATA IN MAKING DETERMINATIONS REGARDING THE RANGE OF SALARIES. THE PRESIDENT AND CEO MAKES ALL FINAL DETERMINATIONS RELATIVE TO STAFF COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 INDEPENDENT SECTOR'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC. THE ANNUAL AUDIT, 990 AND 990T, BOARD OF DIRECTORS LIST, AND IS POLICIES (CONFLICT OF INTEREST, FINANCIAL RESPONSIBILITY, GIFTS AND ENTERTAINMENT, RECORDS RETENTION AND TRAVEL) ARE ALL AVAILABLE TO THE PUBLIC ON THE ORGANIZATION'S WEBSITE (WWW.INDEPENDENTSECTOR.ORG). FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 577,079. MANAGEMENT AND GENERAL EXPENSES 175,831. FUNDRAISING EXPENSES 31,056. TOTAL EXPENSES 783,966. LEGISLATIVE ASSISTANCE: PROGRAM SERVICE EXPENSES 176,665. MANAGEMENT AND GENERAL EXPENSES 53,828. FUNDRAISING EXPENSES 9,507. TOTAL EXPENSES 240,000. SPEAKERS, SERVICE BUREAUS, AND OTHER: PROGRAM SERVICE EXPENSES 381,155. MANAGEMENT AND GENERAL EXPENSES 116,134. FUNDRAISING EXPENSES 20,512. TOTAL EXPENSES 517,801. TEMPORARY HELP: PROGRAM SERVICE EXPENSES 64,723. MANAGEMENT AND GENERAL EXPENSES 40,219. FUNDRAISING EXPENSES 10,026. TOTAL EXPENSES 114,968. FORM 990, PAGE 6, PART VI, LINE 1 AND PAGE 7, PART VII, VOTING MEMBERS THE NUMBER OF VOTING MEMBERS SHOWN IN PART VI SECTION A LINE 1 DIFFERS FROM THE NUMBER OF DIRECTORS LISTED IN PART VII BECAUSE BOARD MEMBERS ARE INCLUDED IN PART VII IF THEY SERVED ON THE BOARD AT ANY TIME DURING 2019. INDEPENDENT SECTOR'S BOARD TERM BEGINS AT THE ANNUAL BUSINESS MEETING HELD DURING THE IS ANNUAL CONFERENCE IN THE FALL. 1620 IS LLC 1620 L STREET NW WASHINGTON DC 20036 543219877 BUILDING MANAGEMENT DC 1129486 25917092 INDEPENDENT SECTOR