2020-07-15T13:49:15-05:00 2019-06-30 271728945 PKF O'CONNOR DAVIES LLP 665 FIFTH AVENUE NEW YORK NY 10022 990 2018-07-01 130417693 THE ADVERTISING COUNCIL INC ADVE 2129221500 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 KENNETH M KROLL CHIEF FINANCIAL OFFICER 2129221500 2020-07-15 1 GARRETT M HIGGINS P00543209 2122862600 2020-07-13 108.35.122.103 2020-07-15 13:28:10 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C5C0E2060BEB3F24671B5CC0358F632D6B4109AD 2018 2021-01-29 14:40:06Z AD COUNCIL EDGE KENNETH M KROLL 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 54882429 0 X HTTP://WWW.ADCOUNCIL.ORG/ X 1942 NY SEE SCHEDULE O 145 144 298 333 0 0 19018471 18591195 30587605 32596454 1677226 811927 -714512 -830958 50568790 51168618 0 0 0 0 19262869 20083132 54000 70250 3001426 26832993 31251823 46149862 51405205 4418928 -236587 49472301 47828938 14711317 12958898 34760984 34870040 X THE AD COUNCIL IS WHERE CREATIVITY AND CAUSES CONVERGE. WE USE THE POWER OF COMMUNICATIONS TO TACKLE THE COUNTRY'S TOUGHEST ISSUES. [SEE CONTINUANCE ON SCHEDULE O]WE'VE BUILT A UNIQUE, PASSIONATE NETWORK OF PARTNERS - ACROSS MEDIA AND TECH, MARKETING, ENTERTAINMENT AND ADVERTISING, GOVERNMENT AND THE NONPROFIT WORLDS - AND WE GALVANIZE AND CONVENE OUR PARTNERS TO USE THEIR RESOURCES, TALENTS AND PLATFORMS FOR GOOD. WE MATCH THE RIGHT CAUSE WITH THE RIGHT PARTNERS TO CREATE POWERFUL MEDIA CAMPAIGNS THAT INSPIRE ACTION AND IMPROVE LIVES. 0 0 39877538 32596454 EACH AD COUNCIL CAMPAIGN IS TYPICALLY DEVELOPED ON BEHALF OF A NONPROFIT ORGANIZATION, FOUNDATION OR FEDERAL GOVERNMENT AGENCY. AD COUNCIL CAMPAIGNS ARE PRODUCED IN PARTNERSHIP WITH THE COUNTRY'S LEADING CREATIVE AGENCIES, WHO DONATE THEIR SERVICES PRO BONO. WE WORK WITH LEADING MEDIA, MARKETING, ENTERTAINMENT AND TECHNOLOGY COMPANIES ACROSS THE INDUSTRY TO SECURE DONATED MEDIA AND DEVELOP CUSTOM, INTEGRATED SOCIAL GOOD PARTNERSHIPS ON BEHALF OF OUR CAMPAIGNS. ADDITIONALLY, DONORS PROVIDE CRUCIAL OPERATING SUPPORT. [SEE CONTINUATION ON SCHEDULE O] 39877538 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 199 0 298 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 145 144 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 AL AR CA FL GA IL KS KY MA MD MI MN NC ND NH NJ NM NY OR PA RI SC TN UT VA WV WI X X KENNETH M KROLL CFO 2129841946 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 LINDA BOFF CHAIR 3.50 X X 0 0 0 DAVID SABLE IMMEDIATE PAST CHAIR 2.00 X X 0 0 0 DAVID FISCHER VICE CHAIR 2.00 X X 0 0 0 LINDA YACCARINO VICE CHAIR 2.00 X X 0 0 0 LAURA CORB SECRETARY 1.00 X X 0 0 0 STEPHEN LACY CHAIR FINANCE COMMITTEE 3.00 X X 0 0 0 DAVE ABBOTT DIRECTOR 0.50 X 0 0 0 SABAH ASHRAF DIRECTOR 0.50 X 0 0 0 LOU AVERSANO DIRECTOR 0.50 X 0 0 0 SPENCER BAIM DIRECTOR 0.50 X 0 0 0 JACK BAMBERGER DIRECTOR 0.50 X 0 0 0 LESLIE BERLAND DIRECTOR 0.50 X 0 0 0 TANYA BERMAN DIRECTOR 0.50 X 0 0 0 JULIE BERNARD DIRECTOR 0.50 X 0 0 0 LYNNE BIGGAR DIRECTOR 0.50 X 0 0 0 JOSEPH BIHLMIER DIRECTOR 0.50 X 0 0 0 SHANNON BRAYTON DIRECTOR 0.50 X 0 0 0 NICK BRIEN DIRECTOR 0.50 X 0 0 0 HEIDI BROWNING DIRECTOR 0.50 X 0 0 0 PHILIPPE BROWNING DIRECTOR 0.50 X 0 0 0 KASHA CACY DIRECTOR 1.00 X 0 0 0 SUSAN CANAVARI DIRECTOR 0.50 X 0 0 0 LISA CAPUTO DIRECTOR 0.50 X 0 0 0 TIM CASTELLI DIRECTOR 0.50 X 0 0 0 WENDY CLARK DIRECTOR 0.50 X 0 0 0 MICHAEL CLINTON DIRECTOR 0.50 X 0 0 0 JILL CRESS DIRECTOR 0.50 X 0 0 0 SETH DALLAIRE DIRECTOR 0.50 X 0 0 0 JAMES DATRI DIRECTOR 0.50 X 0 0 0 TOM DAVIS DIRECTOR 0.50 X 0 0 0 MAINARDO DE NARDIS DIRECTOR 0.50 X 0 0 0 HARRIS DIAMOND DIRECTOR 0.50 X 0 0 0 HUGH DINEEN DIRECTOR 0.50 X 0 0 0 JONAH DISEND DIRECTOR 0.50 X 0 0 0 LISA DONOHUE DIRECTOR 0.50 X 0 0 0 RICHARD EDELMAN DIRECTOR 1.00 X 0 0 0 TINA EDMUNDSON DIRECTOR 0.50 X 0 0 0 PAM EL DIRECTOR 0.50 X 0 0 0 NANCY ELDER DIRECTOR 0.50 X 0 0 0 TIM ELLIS DIRECTOR 0.50 X 0 0 0 EDWARD ERHARDT DIRECTOR 0.50 X 0 0 0 KONRAD FELDMAN DIRECTOR 0.50 X 0 0 0 RITA FERRO DIRECTOR 0.50 X 0 0 0 NANCY J FLETCHER DIRECTOR 0.50 X 0 0 0 CHRIS FOLEY DIRECTOR 0.50 X 0 0 0 MAUREEN FORD DIRECTOR 0.50 X 0 0 0 CONSTANCE FRAZIER DIRECTOR 0.50 X 0 0 0 ROB FREDERICK DIRECTOR 0.50 X 0 0 0 ERNESTINE FU DIRECTOR 0.50 X 0 0 0 AMY FULLER DIRECTOR 0.50 X 0 0 0 MARIANNE GAMBELLI DIRECTOR 0.50 X 0 0 0 WAYNE GATTINELLA DIRECTOR 0.50 X 0 0 0 BEN GOLDHIRSH DIRECTOR 0.50 X 0 0 0 RICK GOMEZ DIRECTOR 0.50 X 0 0 0 BOB GREENBERG DIRECTOR 0.50 X 0 0 0 JILL GREGORY DIRECTOR 0.50 X 0 0 0 MIKE HADGIS DIRECTOR 0.50 X 0 0 0 SCOTT HAGEDORN DIRECTOR 0.50 X 0 0 0 BILL C HAGELSTEIN DIRECTOR 0.50 X 0 0 0 KATHLEEN HALL DIRECTOR 0.50 X 0 0 0 LAUREN HANRAHAN DIRECTOR 0.50 X 0 0 0 JODI HARRIS DIRECTOR 0.50 X 0 0 0 CARLA HASSAN DIRECTOR 0.50 X 0 0 0 EVA HEYMAN DIRECTOR 0.50 X 0 0 0 BRAD HIRANAGA DIRECTOR 0.50 X 0 0 0 DAVID HOHMAN DIRECTOR 0.50 X 0 0 0 MICHAEL HOUSTON DIRECTOR 0.50 X 0 0 0 MICHELLE HULST DIRECTOR 0.50 X 0 0 0 TAMARA INGRAM DIRECTOR 0.50 X 0 0 0 MARCIEN JENCKES DIRECTOR 0.50 X 0 0 0 TIM JONES DIRECTOR 0.50 X 0 0 0 GANNON JONES DIRECTOR 0.50 X 0 0 0 ALEXANDER JUTKOWITZ DIRECTOR 0.50 X 0 0 0 KAREN KAPLAN DIRECTOR 1.00 X 0 0 0 JON KAPLAN DIRECTOR 0.50 X 0 0 0 MARLA KAPLOWITZ DIRECTOR 0.50 X 0 0 0 HARRY KARGMAN DIRECTOR 0.50 X 0 0 0 DENISE KARKOS DIRECTOR 0.50 X 0 0 0 ANDREW KASPRZYCKI DIRECTOR 0.50 X 0 0 0 MICHAEL E KASSAN DIRECTOR 0.50 X 0 0 0 SCOTT KAUFFMAN DIRECTOR 0.50 X 0 0 0 JACKI KELLEY DIRECTOR 1.00 X 0 0 0 SOPHIE KELLY DIRECTOR 0.50 X 0 0 0 KELLYN KENNY DIRECTOR 0.50 X 0 0 0 COLIN KINSELLA DIRECTOR 0.50 X 0 0 0 JULIE KOEWLER DIRECTOR 0.50 X 0 0 0 MEREDITH KOPIT LEVIEN DIRECTOR 1.00 X 0 0 0 DARREN LACHTMAN DIRECTOR 0.50 X 0 0 0 CATHERINE LACOUR DIRECTOR 0.50 X 0 0 0 STEVE LANZANO DIRECTOR 0.50 X 0 0 0 NICK LAW DIRECTOR 0.50 X 0 0 0 KRISTIN LEMKAU DIRECTOR 0.50 X 0 0 0 TARA WALPERT LEVY DIRECTOR 1.00 X 0 0 0 DAVID LEVY DIRECTOR 0.50 X 0 0 0 LYNN LEWIS DIRECTOR 0.50 X 0 0 0 ANN LEWNES DIRECTOR 1.00 X 0 0 0 ROBERT D LIODICE DIRECTOR 0.50 X 0 0 0 JEFF LUCAS DIRECTOR 0.50 X 0 0 0 JEFFREY S MADDOCK DIRECTOR 0.50 X 0 0 0 ERIN MADORSKY DIRECTOR 0.50 X 0 0 0 PAMELA MANN DIRECTOR 0.50 X 0 0 0 JOE MARCHESE DIRECTOR 0.50 X 0 0 0 LEV MASS DIRECTOR 0.50 X 0 0 0 ROB MASTER DIRECTOR 1.00 X 0 0 0 LIZ MATTHEWS DIRECTOR 0.50 X 0 0 0 SEAN MCCAFFREY DIRECTOR 0.50 X 0 0 0 COLIN MCCONNELL DIRECTOR 0.50 X 0 0 0 ELIZABETH MCCUNE DIRECTOR 0.50 X 0 0 0 KIRK MCDONALD DIRECTOR 1.00 X 0 0 0 REBECCA MESSINA DIRECTOR 0.50 X 0 0 0 KATIE MILLER DIRECTOR 0.50 X 0 0 0 JAMIE MOLDAFSKY DIRECTOR 0.50 X 0 0 0 SEAN MORAN DIRECTOR 0.50 X 0 0 0 CARTER MURRAY DIRECTOR 0.50 X 0 0 0 PETER NAYLOR DIRECTOR 0.50 X 0 0 0 VICTORIA NOBLE DIRECTOR 0.50 X 0 0 0 DIANA O'BRIEN DIRECTOR 0.50 X 0 0 0 JOHN OSBORN DIRECTOR 0.50 X 0 0 0 NICOLLE PANGIS DIRECTOR 0.50 X 0 0 0 RYAN PAULEY DIRECTOR 0.50 X 0 0 0 MICHELLE PELUSO DIRECTOR 0.50 X 0 0 0 PJ PEREIRA DIRECTOR 0.50 X 0 0 0 STEVE PHELPS DIRECTOR 0.50 X 0 0 0 ANDY POLANSKY DIRECTOR 0.50 X 0 0 0 RAJA RAJAMANNAR DIRECTOR 0.50 X 0 0 0 SEAN REARDON DIRECTOR 0.50 X 0 0 0 SETH ROGIN DIRECTOR 0.50 X 0 0 0 LEIF ROLL DIRECTOR 0.50 X 0 0 0 HAYLEY ROMER DIRECTOR 0.50 X 0 0 0 JO ANN ROSS DIRECTOR 0.50 X 0 0 0 MICHAEL I ROTH DIRECTOR 0.50 X 0 0 0 ADAM ROTH DIRECTOR 0.50 X 0 0 0 RANDALL ROTHENBERG DIRECTOR 1.00 X 0 0 0 LINDSEY ROY DIRECTOR 0.50 X 0 0 0 TROY RUHANEN DIRECTOR 0.50 X 0 0 0 TARA RUSH-TRIPP DIRECTOR 0.50 X 0 0 0 GEOFF SCHILLER DIRECTOR 0.50 X 0 0 0 ERICA SCHMIDT DIRECTOR 0.50 X 0 0 0 TIM SCOTT DIRECTOR 0.50 X 0 0 0 DIEGO SCOTTI DIRECTOR 1.00 X 0 0 0 CARRIE SEIFER DIRECTOR 0.50 X 0 0 0 DENNIS D SELF DIRECTOR 0.50 X 0 0 0 NIHARIKA SHAH DIRECTOR 0.50 X 0 0 0 TY SHAY DIRECTOR 0.50 X 0 0 0 SAMANTHA SKEY DIRECTOR 0.50 X 0 0 0 MICHAEL E SNEED DIRECTOR 1.50 X 0 0 0 DONNA SPECIALE DIRECTOR 0.50 X 0 0 0 MITCH SPOLAN DIRECTOR 0.50 X 0 0 0 MARTY ST GEORGE DIRECTOR 0.50 X 0 0 0 PETE STEIN DIRECTOR 0.50 X 0 0 0 BRIAN STEMPECK DIRECTOR 0.50 X 0 0 0 HEATHER STEWART DIRECTOR 0.50 X 0 0 0 STEVE STOUTE DIRECTOR 0.50 X 0 0 0 GREG STUART DIRECTOR 0.50 X 0 0 0 ANDREA SULLIVAN DIRECTOR 0.50 X 0 0 0 ANDREW SWINAND DIRECTOR 0.50 X 0 0 0 DAN TARMAN DIRECTOR 0.50 X 0 0 0 ROXANNE TAYLOR DIRECTOR 0.50 X 0 0 0 TODD TERESI DIRECTOR 0.50 X 0 0 0 JAMES THOMPSON DIRECTOR 0.50 X 0 0 0 DAVID THUMA DIRECTOR 0.50 X 0 0 0 GAIL TIFFORD DIRECTOR 0.50 X 0 0 0 RISHAD A TOBACCOWALA DIRECTOR 0.50 X 0 0 0 JOHN TRIMBLE DIRECTOR 0.50 X 0 0 0 VALERIE VARGAS DIRECTOR 0.50 X 0 0 0 GARY VAYNERCHUK DIRECTOR 0.50 X 0 0 0 MEREDITH VERDONE DIRECTOR 0.50 X 0 0 0 TIFFANY R WARREN DIRECTOR 0.50 X 0 0 0 DANIELLE WEISBERG DIRECTOR 0.50 X 0 0 0 TONY WEISMAN DIRECTOR 0.50 X 0 0 0 RISA WEXLER DIRECTOR 0.50 X 0 0 0 EUGENE WILLEMSEN DIRECTOR 0.50 X 0 0 0 TERRANCE WILLIAMS DIRECTOR 0.50 X 0 0 0 MICHELLE D WILSON DIRECTOR 0.50 X 0 0 0 BILL WISE DIRECTOR 0.50 X 0 0 0 JENNIFER WITZ DIRECTOR 0.50 X 0 0 0 STEVEN WOLFE PEREIRA DIRECTOR 1.00 X 0 0 0 JENNIFER WONG DIRECTOR 0.50 X 0 0 0 LISA SHERMAN PRESIDENT AND CEO 45.37 X X 1793628 0 555009 KENNETH M KROLL CHIEF FINANCIAL OFFICER 41.90 X 300668 0 98300 PAULA VEALE CHIEF MARKETING & COMMUNICATION 40.67 X 1254790 0 201383 BARBARA LESHINSKY CHIEF REVENUE & DEVELOPMENT 39.27 X 439244 0 283598 HEIDI ARTHUR CHIEF CAMPAIGN DEVELOPMENT 35.89 X 319047 0 121862 KATE EMANUEL CHIEF BUSINESS OPERATIONS & STRATEGY 40.31 X 321424 0 105454 MICHELLE HILLMAN CHIEF CAMPAIGN DEVELOPMENT 43.88 X 311476 0 79292 REGINA BRADLEY CHIEF TALENT & FACILITIES 37.79 X 281393 0 90380 DANIELLE LINET SENIOR VP 35.48 X 222483 0 87373 ANTHONY FOLENO SENIOR VP 45.35 X 231419 0 60874 SARA WEISENTHAL SENIOR VP 37.85 X 214624 0 59469 ANNE DEO SENIOR VP 40.40 X 181755 0 84542 ELLYN FISHER SENIOR VP 43.33 X 186356 0 60112 ANASTASIA GOODSTEIN SENIOR VP 36.40 X 179024 0 71612 ANTHONY SIGNORELLI SVP, CORPORATE PARTNERSHIPS 36.08 X 174427 0 49508 ROWENA PATRICK VP 43.79 X 174039 0 49238 DEBORAH LEITER SENIOR VP 35.05 X 164064 0 57103 KATHERINE PASTRE SENIOR VP 43.30 X 163298 0 56469 ELIZABETH ELLARD FORMER CHIEF MEDIA 0.00 X 911526 0 8603 7824685 0 2180181 56 1 1 0 CIRCLE GRAPHICS LLC PO BOX 07847 DENVER CO 802170847 DIGITAL PRINTING - BILLBOARD & SIGNAGE 2701696 STRUCTURE TONE LLC 330 WEST 34TH STREET NEW YORK NY 10001 CONSTRUCTION CONTRACTOR-OFFICE REMODEL 1384043 RGA MEDIA GROUP 450 WEST 33RD STREET 12TH FLOOR NEW YORK NY 10001 AD AGENCY PRODUCTION SERVICES 1200715 IPSOS PUBLIC AFFAIRS INC 301 MERRIT 7 4TH FLOOR NORWALK CT 06851 RESEARCH FIRM 982826 MCCANN-ERICKSON USA INC 622 THIRD AVENUE NEW YORK NY 10017 AD AGENCY PRODUCTION SERVICES 891593 79 5275478 13315717 11740 18591195 PUBLIC SVC CAMPAIGNS 900099 32120545 32120545 EDGE CONSULTANCY FEES 900099 475909 475909 32596454 650690 650690 35000 35000 2610510 2449273 161237 161237 161237 394850 5275478 1264538 -869688 -869688 OTHER INCOME 900099 3730 3730 3730 51168618 32596454 0 -19031 5555679 2272396 2023019 1260264 16245 16245 11648205 8588694 2094738 964773 554495 357869 132740 63886 1271911 739591 442347 89973 1036597 811233 125978 99386 220811 220811 262654 262654 70250 70250 38860 38860 446242 407268 38974 110755 45444 65311 484397 300473 142007 41917 1470040 1107960 358555 3525 1250762 935820 238395 76547 626398 418400 114158 93840 233085 103763 94833 34489 1146773 1146773 101100 101100 PRODUCTION & DISTRIBUTI 23244643 23244643 TEMP HELP & RECRUITING 1147889 589186 442997 115706 EVALUATION & MEDIA OUTR 223425 218578 4697 150 UBI TAX PAYMENT 41994 31420 8004 2570 201995 95823 60996 45176 51405205 39877538 8526241 3001426 1000 1000 13667726 12235903 2888458 2372970 7675962 6428231 1398007 746098 12222060 6314784 6650483 5907276 17190665 20137460 49472301 47828938 6873652 7395086 5108284 2565056 2729381 2998756 14711317 12958898 X 29373026 31058780 5387958 3811260 34760984 34870040 49472301 47828938 X -236587 354255 -8612 X X 0 1 X 1 1 1 X 12533958 16506037 18466058 19018471 18591195 85115719 30868318 33829082 30890597 30587605 32596454 158772056 43402276 50335119 49356655 49606076 51187649 243887775 151100 189763 187810 190398 189801 908872 13399071 15034800 13030677 11873816 17683895 71022259 13550171 15224563 13218487 12064214 17873696 71931131 171956644 302428 376558 425498 590263 685690 2380437 302428 376558 425498 590263 685690 2380437 2988 717 3730 7435 43707692 50711677 49782153 50197056 51877069 246275647 0.69820 0.72780 0.00970 0.00860 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 6386172 1162872 5223300 4523355 3887954 635401 1312533 1263958 48575 5907276 DEPOSITS FROM CAMPAIGN SPONSORS 480000 ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION 209536 DEFERRED RENTAL OBLIGATIONS 2309220 2998756 53520524 354255 733113 1264538 2351906 51168618 0 51168618 53411468 733113 1273150 2006263 51405205 0 51405205 PART XI, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES OF SPECIAL EVENTS REPORTED ON PART VIII, LINE 8B: $1,264,538 PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES OF SPECIAL EVENTS REPORTED ON PART VIII LINE 8B: $1,264,538 ACTUARIAL LOSS ON ACCUMULATED POST RETIREMENT OBLIGATION: $8,612 X X X X X X 1 PATRICE CLAREMAN LLC 121 EAST 61ST ST NEW YORK NY 10065 ASSIST DIRECTOR OF SPECIAL EVENTS FOR PUBLIC SERVICE AWARD A 0 5670328 70250 5600078 5670328 70250 5600078 AL AK AR CA CO CT FL GA IL KS KY ME MD MA MI MN MS MO NH NJ NM NY NC ND NV OH OK OR PA RI SC TN UT VA WA WV WI ANNUAL DINNER 5268453 4873603 394850 509612 696702 WEST COAST EVENT 401875 401875 58224 5670328 5275478 394850 509612 754926 1264538 -869688 SCHEDULE G, PART I, LINE 2B, COLUMN (V) PATRICE CLAREMAN LLC PROVIDES CONSULTATION REGARDING SOLICITATION AND ADMINISTRATIVE SUPPORT FOR THE ADVERTISING COUNCIL'S ANNUAL DINNER AND WEST COAST EVENT. FOR ANNUAL DINNER EVENT, PATRICE CLAREMAN LLC RECEIVED A BASE FEE OF $55,000; WITH $15,000 DUE UPON SIGNING THIS LETTER OF AGREEMENT, AND $10K DUE ON SEPTEMBER 1ST, OCTOBER 1ST, NOVEMBER 1ST, AND DECEMBER 1ST, PLUS AN ADDITIONAL BONUS OF $1,500 FOR AMOUNT RAISED ABOVE $4.9 MILLION AND ADDITIONAL PAYMENT OF $750 FOR EACH ADDITIONAL $50,000 RAISED. FOR WEST COAST EVENT, PATRICE CLAREMAN LLC RECEIVED A FLAT FEE OF $10,000. THE FEE WILL BE BILLED AS FOLLOWS: 100% UPON COMPLETION OF THE SERVICES. SCHEDULE G, PART II, LINE 11: IN DECEMBER, THE AD COUNCIL HELD THE PUBLIC SERVICE AWARD DINNER. CONTRIBUTIONS FROM THIS EVENT ARE REPORTED ON PART VIII, LINE 1C OF THE FORM 990 AS $4,873,603. AS MANY EVENT ATTENDEES PAY MORE THAN THE RETAIL VALUE OF THE ACTUAL DINNER, AN OVERALL GAIN OF $ 4,062,139 IS REALIZED VS. THE EVENT LOSS OF $811,464 AS REPORTED ON SCHEDULE G, PART II. II. IN JUNE 2019 THE AD COUNCIL HELD A WEST COAST FUNDRAISING EVENT. CONTRIBUTIONS FROM THIS EVENT ARE REPORTED ON PART VIII LINE 1C OF THE FORM 990 AS $401,875. AS THERE WAS NO RETAIL VALUE TO ATTEND THE EVENT AN OVERALL GAIN OF $343,651 IS REALIZED VS. THE EVENT LOSS OF $58,224. X X 1 1 X X X X X 1 1 0 0 0 0 0 1 0 LISA SHERMAN PRESIDENT AND CEO 643319 0 294750 0 855559 0 507093 0 47916 0 2348637 0 1084905 0 KENNETH M KROLL CHIEF FINANCIAL OFFICER 242151 0 56400 0 2117 0 71600 0 26700 0 398968 0 56400 0 PAULA VEALE CHIEF MARKETING & COMMUNICATION 315722 0 92225 0 846843 0 162000 0 39383 0 1456173 0 907861 0 BARBARA LESHINSKY CHIEF REVENUE & DEVELOPMENT 335946 0 87000 0 16298 0 240500 0 43098 0 722842 0 87000 0 HEIDI ARTHUR CHIEF CAMPAIGN DEVELOPMENT 252932 0 61600 0 4515 0 80250 0 41612 0 440909 0 61600 0 KATE EMANUEL CHIEF BUSINESS OPERATIONS & STRATEGY 258216 0 60500 0 2708 0 79100 0 26354 0 426878 0 60500 0 MICHELLE HILLMAN CHIEF CAMPAIGN DEVELOPMENT 249827 0 59500 0 2149 0 74000 0 5292 0 390768 0 59500 0 REGINA BRADLEY CHIEF TALENT & FACILITIES 227257 0 53600 0 536 0 68100 0 22280 0 371773 0 53600 0 DANIELLE LINET SENIOR VP 182893 0 39000 0 590 0 51924 0 35449 0 309856 0 39000 0 ANTHONY FOLENO SENIOR VP 195970 0 35000 0 449 0 48903 0 11971 0 292293 0 35000 0 SARA WEISENTHAL SENIOR VP 178175 0 36050 0 399 0 47852 0 11617 0 274093 0 36050 0 ANNE DEO SENIOR VP 155248 0 26250 0 257 0 41285 0 43257 0 266297 0 26250 0 ELLYN FISHER SENIOR VP 153573 0 32400 0 383 0 35864 0 24248 0 246468 0 32400 0 ANASTASIA GOODSTEIN SENIOR VP 153259 0 25200 0 565 0 41270 0 30342 0 250636 0 25200 0 ANTHONY SIGNORELLI SVP, CORPORATE PARTNERSHIPS 144237 0 30000 0 190 0 39972 0 9536 0 223935 0 30000 0 ROWENA PATRICK VP 150243 0 22950 0 846 0 37740 0 11498 0 223277 0 22950 0 DEBORAH LEITER SENIOR VP 140897 0 22950 0 217 0 37708 0 19395 0 221167 0 22950 0 KATHERINE PASTRE SENIOR VP 141393 0 21000 0 905 0 44447 0 12022 0 219767 0 21000 0 ELIZABETH ELLARD FORMER CHIEF MEDIA 245361 0 59000 0 607165 0 0 0 8603 0 920129 0 559689 0 PART I, LINE 1A THE AD COUNCIL PROVIDED REIMBURSEMENT FOR BUSINESS OR FIRST CLASS TRAVEL TO THE CEO PER CONTRACT IF FLYING DISTANCE (4 HOURS) OR INTERNATIONAL. THE AD COUNCIL PROVIDED AN ANNUAL MEMBERSHIP TO A HEALTH CLUB IN THE AMOUNT OF $900 FOR LISA SHERMAN, PAULA VEALE AND BARBARA LESHINSKY. PART I, LINE 3 APPROXIMATELY EVERY THREE YEARS, THE AD COUNCIL HIRES AN INDEPENDENT CONSULTING FIRM TO CONDUCT A COMPREHENSIVE COMPENSATION STUDY. THE STUDY IS CONDUCTED TO ASSESS THE EXTERNAL COMPETITIVENESS OF THE AD COUNCIL'S CURRENT TOTAL PAY, DEVELOP COMPARABLE MARKET BASE SALARY AND TOTAL PAY SUMMARY STATISTICS AND AUDIT AND RECOMMEND CHANGES TO THE AD COUNCIL'S EMPLOYEE INCENTIVE PLAN. THE MOST RECENT COMPREHENSIVE STUDY WAS PERFORMED IN SEPTEMBER 2017. THE INFORMATION GATHERED FROM THESE STUDIES IS USED TO HELP INFORM THE DECISION-MAKING PROCESS OF THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF THE CHAIRMAN OF THE BOARD, THE THREE VICE CHAIRS AND THE HEAD OF THE FINANCE COMMITTEE. THE COMMITTEE MEETS AT LEAST ANNUALLY TO REVIEW AND ESTABLISH THE TOTAL COMPENSATION PACKAGE (BASE SALARY AND INCENTIVE GOALS) FOR THE PRESIDENT AND CEO AND CHIEFS. THE COMMITTEE ALSO REVIEWS AND APPROVES THE TOTAL INCENTIVE PAYOUT FOR THE ENTIRE ORGANIZATION. THIS ENTIRE PROCESS IS CONTEMPORANEOUSLY DOCUMENTED IN MEETING MINUTES. FISCAL YEAR 2018 COMPENSATION REVIEW WAS PERFORMED ON OCTOBER 16, 2017. FISCAL YEAR 2019 COMPENSATION REVIEW WAS PERFORMED ON SEPTEMBER 14,2018. OTHER KEY EMPLOYEES ARE ADDRESSED IN THE COMPENSATION STUDY AND THIS COMPARATIVE DATA IS USED AS A PART OF THE PROCESS WHERE THE CEO, CFO, HR AND DEPARTMENT HEADS REVIEW AND APPROVE THE COMPENSATION PACKAGE FOR EACH EMPLOYEE ANNUALLY. PART I, LINES 4A-B LINE 4A: ON JUNE 30TH, 2018 ELIZABETH ELLARD AND THE ADVERTISING COUNCIL AGREED UPON A MUTUAL SEPARATION. IN THE CALENDAR YEAR 2018 SEVERANCE OF $82,225 WAS PAID AND IS REFLECTED IN SCHEDULE J, COLUMN B(III). LINE 4B: DURING THE FISCAL YEAR 2018, THE COMPENSATION COMMITTEE MADE THE DECISION TO TERMINATE THE AD COUNCIL'S SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). ON JUNE 30, 2018 EXECUTIVE SERP AMOUNTS WERE CLOSED AND THE FUNDS WHICH HAD BEEN ACCRUED OVER MULTIPLE YEARS WERE LIQUATED AND BECAME TAXABLE INCOME IN CALENDAR YEAR 2018. THE AMOUNTS LISTED BELOW REPRESENT THE ENTIRE ACCOUNT BALANCE FOR EACH EXECUTIVE WHICH WAS DISTRIBUTED ON JUNE 30, 2018, AND REPORTED ON SCH J COLUMNS B(III) AND ON COLUMN F AS REPORTED ON PRIOR 990'S. LISA SHERMAN $790,155.33 PAULA VEALE $815,636.12 ELIZABETH ELLARD $500,688.75 ADDITIONALLY, LISA SHERMAN AND PAULA VEALE WERE PAID $27,327 AND $22,748 RESPECTIVELY AS ESTIMATED INVESTMENT GAINS DUE TO THE TERMINATION OF THE PLAN WHICH IS REPORTED IN COLUMN B(III). PART I, LINE 7 AMOUNTS INCLUDED IN COLUMN C REFLECT BONUSES EARNED IN THE FISCAL YEAR BUT PAID OUT TWO AND A HALF MONTHS AFTER THE TAX YEAR ENDED. THEREFORE, THE AMOUNTS HAVE BEEN INCLUDED IN DEFERRED COMPENSATION AS REQUIRED BY THE FORM INSTRUCTIONS. ADDITIONALLY, EMPLOYER CONTRIBUTIONS MADE TO PARTICIPANTS 403(B) RETIREMENT PLAN ARE ALSO IDENTIFIED IN COLUMN C. DURING FISCAL YEAR 2018 THE AD COUNCIL ENTERED INTO A LONG-TERM INCENTIVE PLAN AGREEMENT WITH ITS CHIEF REVENUE & DEVELOPMENT OFFICER, BARBARA LESHINSKY. THIS AGREEMENT IS BASED ON ACHIEVING REVENUE GROWTH TO A SPECIFIC TARGET OVER A THREE-YEAR PERIOD. IF THE THREE-YEAR REVENUE TARGET IS REACHED THE AGREEMENT PROVIDES FOR A ONE TIME PAYOUT. DURING FISCAL YEAR 2019 AN ACCRUAL OF $ 130,000 WAS RECORDED TO REPRESENT THE EARNED PORTION OF THE REVENUE TARGET ACHIEVED. THIS AMOUNT IS REFLECTED ON SCHEDULE J, PART II, COLUMN C. FORM 990, PART I, LINE 1 THE AD COUNCIL IS WHERE CREATIVITY AND CAUSES CONVERGE. THE NON-PROFIT ORGANIZATION BRINGS TOGETHER THE MOST CREATIVE MINDS IN MARKETING, MEDIA, TECHNOLOGY, ENTERTAINMENT AND ADVERTISING TO ADDRESS MANY OF THE NATION'S MOST IMPORTANT ISSUES. THE AD COUNCIL HAS CREATED MANY OF THE MOST ICONIC CAMPAIGNS IN ADVERTISING HISTORY. FRIENDS DON'T LET FRIENDS DRIVE DRUNK. SMOKEY BEAR. LOVE HAS NO LABELS. OUR INNOVATIVE SOCIAL GOOD CAMPAIGNS RAISE AWARENESS, INSPIRE ACTION AND SAVE LIVES. FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: THROUGH INNOVATIVE, CROSS-PLATFORM COMMUNICATIONS PROGRAMS, THE AD COUNCIL EMPLOYS A PROVEN APPROACH TO DRIVE POSITIVE SOCIAL CHANGE AND MAKE A MEASURABLE, LASTING DIFFERENCE. WE CONTINUE TO SEEK WAYS TO INNOVATE AND ENHANCE THE IMPACT OF OUR CAMPAIGNS, AND THIS YEAR IS NO DIFFERENT. SPECIFICALLY, WE: -EVOLVED AND INNOVATED THE AD COUNCIL'S MODEL: CREATED A NEW 5-YEAR VISION AND STRATEGIC PLAN, WHICH WILL HELP THE AD COUNCIL CONTINUE TO INNOVATE AND DRIVE EVEN MORE IMPACT LONG-TERM. -EXPANDED OUR COMMITMENT TO DIVERSITY, EQUITY & INCLUSION: IMPLEMENTED GOALS TO DIVERSIFY OUR BOARD OF DIRECTORS AND OTHER AD COUNCIL COMMITTEES; LAUNCHED AN INTERNAL EMPLOYEE RESOURCE GROUP PROGRAM AND EXECUTED RECRUITING/HIRING TRAINING FOR 40+ HIRING MANAGERS. WE ALSO CREATED A COLLEGE AMBASSADOR PROGRAM AND ATTENDED 15 EVENTS ON CAMPUS AND ESTABLISHED 15 NEW UNIVERSITY RELATIONSHIPS. CAMPAIGNS: -THE AD COUNCIL LAUNCHED SIX NEW INITIATIVES ADDRESSING THE FOLLOWING IMPORTANT ISSUES: -ADOLESCENT MENTAL HEALTH: IN PARTNERSHIP WITH PIVOTAL VENTURES, THIS CAMPAIGN AIMS TO ADDRESS THE EXTENSIVE STIGMA AND FEAR ASSOCIATED WITH MENTAL ILLNESS AND HELP PARENTS/CAREGIVERS OF YOUNG PEOPLE OF COLOR TO IDENTIFY WARNING SIGNS, WAYS TO CHECK IN AND ACCESS RESOURCES. SADLY, THE SUICIDE RATES AMONG 10-14 YEAR OLDS HAS BEEN RISING. ADDITIONALLY, MORE THAN HALF OF LIFETIME MENTAL ILLNESS BEGINS BEFORE THE AGE OF 14. -ALZHEIMER'S AWARENESS: IN PARTNERSHIP WITH THE ALZHEIMER'S ASSOCIATION, THIS CAMPAIGN SEEKS TO PROMOTE EARLY DETECTION OF ALZHEIMER'S AMONG THOSE MOST AT-RISK. ALZHEIMER'S IS THE SIXTH LEADING CAUSE OF DEATH IN THE UNITED STATES AND WITH MORE THAN 5 MILLION AMERICANS LIVING WITH THE DISEASE, IT'S IMPORTANT FOR THOSE IMPACTED TO SPEAK WITH THEIR DOCTORS, ACCESS RESOURCES AND ALLOW MORE TIME FOR CARE PLANNING. -WORKFORCE READINESS: THIS CAMPAIGN IS BEING CREATED IN COLLABORATION WITH IBM, APPLE AND THE WHITE HOUSE'S AMERICAN WORKFORCE POLICY ADVISORY BOARD (AWPAB), WITH SUPPORT FROM MORE THAN 200 PUBLIC, PRIVATE AND NONPROFIT MEMBERS OF THE BUSINESS ROUNDTABLE. THE EFFORT AIMS TO HELP AMERICANS NAVIGATE THE RAPIDLY CHANGING NATURE OF WORK BY INSPIRING THEM TO EXPLORE THE WIDE RANGE OF EDUCATION AND CAREER TRAINING PROGRAMS THAT CAN LEAD TO FULFILLING CAREERS. -DRUG-IMPAIRED DRIVING PREVENTION: IN PARTNERSHIP WITH NATIONAL HIGHWAY TRAFFIC AND SAFETY ADMINISTRATION, THIS CAMPAIGN SEEKS TO ENCOURAGE INDIVIDUALS (18-34) TO RECOGNIZE THAT WHEN THEY'RE HIGH ON MARIJUANA THEY SHOULDN'T DRIVE. THE CAMPAIGN ENCOURAGES YOUNG ADULTS TO RECOGNIZE THE RISK OF DRIVING MARIJUANA-IMPAIRED AND TO THINK TWICE BEFORE GETTING BEHIND THE WHEEL. -IMMIGRATION ACCEPTANCE: IN PARTNERSHIP WITH SEVERAL FOUNDATIONS AND NONPROFIT PARTNERS, THIS MULTI-PRONG CAMPAIGN SEEKS TO FUNDAMENTALLY CHANGE THE WAY THAT NEWCOMERS ARE WELCOMED AND TREATED IN THIS COUNTRY BY SHIFTING PERCEPTIONS, BUILDING EMPATHY AND PROVIDING OPPORTUNITIES FOR CONNECTION IN COMMUNITIES, PARTICULARLY IN AREAS FACING RAPID DEMOGRAPHIC SHIFTS. -YOUTH VAPING PREVENTION: VAPING HAS BECOME A HEALTH EPIDEMIC AS 1 IN 4 U.S. HIGH SCHOOLERS AND 1 IN 10 MIDDLE SCHOOLERS CURRENTLY VAPE. IN PARTNERSHIP WITH THE AMERICAN LUNG ASSOCIATION, THIS CAMPAIGN AIMS TO EMPOWER PARENTS OF CHILDREN AGES 10-14 TO HAVE PROACTIVE AND ONGOING CONVERSATIONS WITH THEIR CHILDREN ABOUT THE DANGERS OF TRYING E-CIGARETTES. -ADDITIONALLY, THE AD COUNCIL CREATED A NATIONAL COMMUNICATIONS EFFORT THAT ENCOURAGED THE AMERICAN PUBLIC TO SUPPORT DISASTER RELIEF FOLLOWING THE DEVASTATING 2019 CALIFORNIA WILDFIRES AS WELL AS HURRICANES BARRY AND DORIAN. -WE ALSO WORKED WITH BEST-IN-CLASS CREATIVE PARTNERS (E.G. DROGA5, THE COMMUNITY, OGILVY, LEO BURNETT, BBDO) WHO DONATED THEIR PRO BONO CREATIVE RESOURCES TO LAUNCH 16 CAMPAIGNS INCLUDING ENDING HUNGER, JOB TRAINING AND PLACEMENT, CAREGIVING AND AUTISM AWARENESS. MEDIA OUTREACH AND ENGAGEMENT: -EXECUTED CUSTOM PARTNERSHIPS WITH AD COUNCIL'S BOARD MEMBERS AND OTHER COMPANIES WHO ARE TRANSFORMING THE MEDIA LANDSCAPE, INCLUDING YOUTUBE, TWITTER, SNAPCHAT, FACEBOOK, LINKEDIN, VERIZON, NEW YORK TIMES, NEW YORK POST, ESSENCE, MEREDITH CORPORATION, COMCAST /NBCU, FOX, IHEART MEDIA, WOW, AND OTHERS. -PIONEERED AD COUNCIL'S PROGRAMMATIC STRATEGY WITH NEW DEMAND SIDE, SUPPLY SIDE AND PRIVATE MARKETPLACE PLATFORM PARTNERS INCLUDING THE TRADE DESK, APPNEXUS, XANDER, IBM WATSON, FLUENT, RUBICON AND ADTHEORENT. -SECURED STRATEGY AND OUTREACH SUPPORT FROM NINE NEW MEDIA AGENCY AGENCIES INCLUDING SAPIENT, REPRISE, SPARK FOUNDRY, HEARTS & SCIENCE, OMD, ZENITH, DIGITAS, DAN, INITIATIVE AND STARCOM ON BEHALF OF TEN CAMPAIGNS: REDUCING FOOD WASTE, DRUG IMPAIRED DRIVING PREVENTION, CHILD CAR SAFETY, WILDFIRE PREVENTION SAVING FOR RETIREMENT, GUN SAFETY: END FAMILY FIRE, JOB TRAINING AND EMPLOYMENT, BULLYING PREVENTION, BREAST CANCER RISK EDUCATION AND ALZHEIMER'S AWARENESS. -ESTABLISHED INTERNAL DIGITAL OPERATIONS CAPABILITIES TO EXECUTE AND OPTIMIZE DONATED INVENTORY FROM GOOGLE/YOUTUBE, FACEBOOK/INSTAGRAM, TWITTER, SNAPCHAT, REDDIT, AND LINKEDIN. INSIGHTS & ANALYTICS: -CONDUCTED SEVERAL MEDIA MIX MODELLING PROJECTS TO MEASURE HOW EFFECTIVE A CAMPAIGN'S MEDIA MIX WAS IN DRIVING MEASURABLE IMPACT. -INTEGRATED A VARIETY OF NEW QUICK-RESPONSE TEST-AND-LEARN/A-B TESTING CAPABILITIES AND METHODOLOGIES FOR ALL CAMPAIGNS. -ENHANCED OUR CAMPAIGN EVALUATION FRAMEWORK TO BETTER MEASURE CAMPAIGN PERFORMANCE THROUGHOUT THE FISCAL YEAR ACROSS A SET OF DEFINED KPIS. BRANDING & THOUGHT LEADERSHIP: -SUCCESSFULLY LAUNCHED AD COUNCIL'S REBRAND WITH SIGNIFICANT PRESS COVERAGE BY TOP-TIER PUBLICATIONS (200 OUTLETS), INCLUDING FORBES, FAST COMPANY, AD AGE AND AD WEEK. -FEATURED THE AD COUNCIL BRAND AND ITS CAMPAIGNS AT KEY INDUSTRY EVENTS AND CONFERENCES, INCLUDING: ADVERTISING WEEK, WORLDZ, COLLISION, CONSUMER ELECTRONICS SHOW, WORLD ECONOMIC FORUM, SXSW INTERACTIVE, PTTOW!, TRIBECA FILM FESTIVAL, THE NEW YORK WOMEN IN COMMUNICATIONS, INC.'S ANNUAL MATRIX AWARDS, AND CANNES LIONS FESTIVAL. -CO-HOSTED THE FIRST-EVER GOODFRONTS,AN INDUSTRY AUCTION ALLOWING CORPORATE AND MEDIA BRANDS TO SUPPORT NONPROFIT CAUSES AT WORLDZ. -LAUNCHED THE NEW PURPOSE OF PURPOSE EXTERNAL EVENT SERIES SPOTLIGHTING INDUSTRY LEADERS' VIEWS ON MARKET TRENDS AND SOCIAL GOOD AT AD COUNCIL OFFICES (AND LAUNCHED AN ACCOMPANYING QUARTERLY EDITORIAL SERIES). -CONTINUED TO EXPAND GAME FOR GOOD PARTNERSHIPS WITH THE GAMING INDUSTRY AND PRODUCED FIRST TWITCH LIVESTREAM FOR OUR SUICIDE PREVENTION CAMPAIGN. TALENT ENGAGEMENT: -EXPANDED OUR CREATORS FOR GOOD PROGRAM, WHICH RECRUITS DIGITAL CREATORS, CELEBRITIES, ATHLETES AND MUSICIANS TO INTEGRATE OUR CAMPAIGN MESSAGES INTO THEIR CHANNELS AND PLATFORMS. WE ACTIVATED 108 INFLUENCERS ON BEHALF OF 19 CAMPAIGNS WITH A TOTAL OF 402 UNIQUE POSTS. CAMPAIGN CONTENT REACHED A POTENTIAL AUDIENCE OF 232.5M AND RECEIVED 17.6M VIEWS, 42M IMPRESSIONS, 1.2M ENGAGEMENTS AND AN EARNED MEDIA VALUE OF $11M. -PARTNERED WITH HIGH PROFILE CELEBRITY AND DIGITAL TALENT INCLUDING KARLIE KLOSS (SHE CAN STEM), FREDDIE RANSOME (KNOW YOUR GIRLS) AND BILLIE EILISH (SEIZE THE AWKWARD). -HOSTED OUR FIRST CREATORS FOR GOOD SUMMIT ON MENTAL HEALTH (IN PARTNERSHIP WITH BUSTLE AND TUBEFILTER), WITH A SPONSORSHIP FROM NEXT10 VENTURES. ATTENDEES INCLUDED 25 CREATORS ALONG WITH ENTERTAINMENT EXECUTIVES AND ISSUE EXPERTS. AWARDS & RECOGNITION: -IN 2019, THE AD COUNCIL WON OVER 40 PROMINENT INDUSTRY AWARDS AND RECOGNITIONS, INCLUDING AT CANNES LIONS, EMMY AWARDS, ADCOLOR AWARDS, BRAND FILM FESTIVAL AWARDS, CAMPAIGN POWER OF PURPOSE AWARDS, SHORTY AWARDS, PR WEEK AWARDS, ONE SCREEN AWARDS, AICP NEXT AWARDS, AVA DIGITAL AWARDS, GOLD TELLY AWARDS, EFFIE AWARDS, MERCURY AWARDS, WEBBY AWARDS, HERMES CREATIVE AWARD AND AMERICAN BUSINESS AWARDS. -SECURED EARNED MEDIA FEATURES, SEGMENTS AND OP-EDS TELLING THE AD COUNCIL AND CAMPAIGN STORIES IN NATIONAL PRESS, INCLUDING COVERAGE IN THE NEW YORK TIMES, GOOD MORNING AMERICA, THE TODAY SHOW, THE ELLEN SHOW, THE HOLLYWOOD REPORTER, AD AGE, AD WEEK, FAST COMPANY, FORBES, NPR, U.S. NEWS & WORLD REPORT, ROLLING STONE, USA TODAY, ASSOCIATED PRESS, THE WASHINGTON POST, PEOPLE, NOWTHIS, ATTN, UPWORTHY, BUSTLE, TEEN VOGUE, TELEMUNDO AND MORE. IMPACT & RESULTS: -AT ANY GIVEN TIME, THE AD COUNCIL IS CREATING AND REFRESHING APPROXIMATELY 40 NATIONAL MULTIMEDIA PUBLIC SERVICE CAMPAIGNS ON BEHALF OF NONPROFIT ORGANIZATIONS AND GOVERNMENT AGENCIES. WITH THE GOAL OF INSPIRING CHANGE AND IMPROVING LIVES, THE CAMPAIGNS ADDRESS FOUR CRITICAL AREAS: 1) FAMILY & COMMUNITY 2) HEALTH 3) SAFETY AND 4) EDUCATION. AS PART OF THE AD COUNCIL'S EVALUATION PROCESS, WE TRACK AWARENESS OF THE EFFORT AND ISSUE, ENGAGEMENT WITH KEY RESOURCES AND SHIFTS IN ATTITUDES AND BEHAVIORS. THE RESULTS NOTED BELOW REPRESENT REACHING THOUSANDS (AND SOMETIMES MILLIONS) OF INDIVIDUALS THROUGH RELEVANT CAMPAIGN RESOURCES, AS WELL AS STATISTICALLY SIGNIFICANT INCREASES IN KEY ATTITUDES AND BEHAVIORS (WHICH REPRESENT MILLIONS OF AMERICANS POTENTIALLY IMPACTED BY CAMPAIGN MESSAGING). FAMILY & COMMUNITY: THE FAMILY AND COMMUNITY CAMPAIGNS STRIVE TO BUILD VIBRANT FAMILIES AND COMMUNITIES ACROSS THE UNITED STATES. IN FY19, WE MAINTAINED OR LAUNCHED NEW WORK FOR THE FOLLOWING CAMPAIGNS: ADOPTION FROM FOSTER CARE, CAREGIVER ASSISTANCE, DISCOVERING NATURE, DIVERSITY & INCLUSION, ENDING HUNGER, FATHERHOOD INVOLVEMENT, REDUCING FOOD WASTE, SHELTER PET ADOPTION, AND TEEN BULLYING PREVENTION. IN THIS CATEGORY OF CAMPAIGNS, NOTABLE FY19 ACCOMPLISHMENTS INCLUDE: -DIVERSITY & INCLUSION: SINCE THE LAUNCH OF THE AD COUNCIL'S FIRST SHORT FILM "RISING" (NOVEMBER 2018), THE FILM HAS BEEN VIEWED 19 MILLION TIMES, SHARED 54,000 TIMES, AND LIKED 28,000 TIMES. -LGBT ACCEPTANCE: SINCE THE CAMPAIGN'S LAUNCH IN APRIL 2018 THROUGH JUNE 2019, THE PSAS HAVE DRIVEN OVER 915K SESSIONS ON BEYONDIDO.ORG, WHERE USERS ENGAGED WITH EMPATHY-BUILDING STORIES AND LEARNED ABOUT THE STATUS OF LGBT PROTECTIONS IN THEIR STATE. -TEEN BULLYING PREVENTION: FROM JUNE 2018 TO MARCH 2019, THE AD COUNCIL'S TRACKING SURVEY OF TEENS FOUND THAT THERE HAS BEEN A SIGNIFICANT DECREASE IN THE PERCENTAGE OF TEENS WHO REPORT THE FOLLOWING: BEING IGNORED OR EXCLUDED FROM ACTIVITIES (35% -> 30%); BEING STEREOTYPED (27% -> 22%); IGNORING OR EXCLUDING SOMEONE FROM ACTIVITIES (20% -> 15%). -SHELTER PET ADOPTION: DURING FY19 (JUL 2018 JUN 2019), THERE WERE 442,288 VISITORS TO SHELTERPETPROJECT.ORG TO FIND AN ADOPTABLE PET NEAR THEM. HEALTH: IN FY19, OUR HEALTH CAMPAIGNS PROMOTED HEALTHY BEHAVIORS AND PREVENTION THROUGH EFFORTS ON ALZHEIMER'S AWARENESS, LUNG CANCER SCREENING, AND TYPE 2 DIABETES PREVENTION. IN THIS CATEGORY OF CAMPAIGNS, NOTABLE FY19 ACCOMPLISHMENTS INCLUDE: -BREAST CANCER RISK EDUCATION: JUST 14 MONTHS AFTER LAUNCH (MAY 2018 - JUNE 2019), THE AD COUNCIL'S CONTINUOUS TRACKING SURVEY OF THOUSANDS OF AT-RISK WOMEN FOUND SIGNIFICANT SHIFTS IN KEY BEHAVIORS INCLUDING, 15% -> 21% OF AT-RISK WOMEN HAVE VISITED A WEBSITE FOR INFORMATION ABOUT BREAST HEALTH, AND 17% -> 21% HAVE TAKEN STEPS TO UNDERSTAND THEIR RISK OF BREAST CANCER. -LUNG CANCER SCREENING: BETWEEN JANUARY 2019 AND MARCH 2019, THERE WERE MORE THAN 1.1M VISITORS TO SAVEDBYTHESCAN.ORG WITH 19,000 QUIZ COMPLETIONS TO DETERMINE ONE'S RISK FOR LUNG CANCER AND THEIR ELIGIBILITY TO RECEIVE A LUNG CANCER SCREENING. THROUGH THIS ENGAGEMENT, THE CAMPAIGN REACHED 4,000 HIGH LUNG CANCER-RISK INDIVIDUALS. -TYPE 2 DIABETES PREVENTION: BETWEEN JULY 2018 AND JUNE 2019, THERE WERE 280,961 COMPLETIONS OF THE PREDIABETES RISK TEST ON THE CAMPAIGN WEBSITE. SAFETY: OUR SAFETY CAMPAIGNS HELP TO KEEP AMERICANS SAFE AND PREVENT INJURY OR DEATH. OUR EFFORTS FOR FY19 INCLUDED CAMPAIGNS ON BUZZED DRIVING PREVENTION, CHILD CAR SAFETY, DRUG-IMPAIRED DRIVING PREVENTION, EMERGENCY PREPAREDNESS, GUN SAFETY, TEXTING AND DRIVING PREVENTION, AND WILDFIRE PREVENTION. IN THIS CATEGORY OF CAMPAIGNS, NOTABLE FY19 ACCOMPLISHMENTS INCLUDE: -GUN SAFETY: SINCE THE LAUNCH OF THE CAMPAIGN (AUGUST 2018), THE AD COUNCIL'S CONTINUOUS TRACKING SURVEY OF THOUSANDS OF GUN OWNERS FOUND THAT SIGNIFICANTLY MORE GUN OWNERS REPORTED HAVING TAKEN STEPS TO LEARN ABOUT SAFE STORAGE PRACTICES (41% -> 44% AS OF FEBRUARY 2019) AND SIGNIFICANTLY FEWER GUN OWNERS STRONGLY AGREE THAT HAVING A GUN IN MY HOME MAKES MY FAMILY AND ME SAFER" (55% -> 52%). EDUCATION: THE CAMPAIGNS IN THIS CATEGORY STRIVE TO HELP CHILDREN AND ADULTS SUCCEED AND EXCEL. IN FY19, OUR CAMPAIGNS INCLUDED EMPOWERING GIRLS IN STEM AND SAVING FOR RETIREMENT. IN THIS CATEGORY OF CAMPAIGNS, NOTABLE FY19 ACCOMPLISHMENTS INCLUDE: -EMPOWERING GIRLS IN STEM: THE AD COUNCIL'S CONTINUOUS TRACKING SURVEY OF TWEEN GIRLS FOUND THAT MORE TWEEN GIRLS HAVE DONE A STEM ACTIVITY (NOT RELATED TO SCHOOLWORK) IN THE LAST 12 MONTHS (67% IN AUG 2018 -> 73% IN JUNE 2019). -HIGH SCHOOL EQUIVALENCY: IN 2018, THERE WERE OVER 608K USERS TO THE FINISHYOURDIPLOMA.ORG SITE TO FIND INFORMATION AND SUPPORT FOR FINISHING THEIR HIGH SCHOOL DIPLOMA, WHICH RESULTED IN 313K ZIP CODE SEARCHES FOR FREE ADULT EDUCATION CLASSES NEAR THEM. ADDITIONALLY, THE AD COUNCIL ALSO PROVIDES CONSULTING SERVICES UNDER A DBA AD COUNCIL EDGE THAT INCLUDES TRAINING, RESEARCH AND STRATEGY DEVELOPMENT TO ORGANIZATIONS WHO LOOK TO CONNECT AND ENGAGE WITH THE PUBLIC AROUND SOCIAL CHANGE. FORM 990, PART VI, SECTION B, LINE 11B I) A COPY WAS PROVIDED TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS; II) THE 990 WAS PROVIDED ELECTRONICALLY; III) THE AD COUNCIL PROVIDES SCHEDULES TO AN OUTSIDE ACCOUNTING FIRM WHO PREPARES ITS FORM 990. THE FIRM HAS AN ESTABLISHED REVIEW PROCESS TO ENSURE THE INFORMATION PROVIDED IS COMPREHENSIVE AND TRUTHFUL: THROUGHOUT THE YEAR, THE AUDIT COMMITTEE HAS OPPORTUNITIES TO DISCUSS AND COMMENT ON THE FORM 990 DURING THEIR REGULARLY SCHEDULED MEETINGS. PRIOR TO FILING THE FINAL DRAFT (ELECTRONIC VERSION) OF THE FORM 990 IT IS PROVIDED TO THE AUDIT COMMITTEE. FORM 990, PART VI, SECTION B, LINE 12C ALL BOARD MEMBERS, EMPLOYEES AND VOLUNTEERS RECEIVE THE CODE OF CONDUCT AND CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO SIGN THE POLICY. SIGNED FORMS ARE MAINTAINED BOTH WITHIN THE DEVELOPMENT DEPARTMENT (FOR BOARD MEMBERS) AND WITHIN THE HR DEPARTMENT (FOR EMPLOYEES). AD COUNCIL REQUIRES THAT ANY MEMBER REPORT IN WRITING ANY CONFLICT OF INTEREST THAT ARISES IN THE FOLLOWING MANNER: 1) MEMBERS OF THE BOARD OF DIRECTORS SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE CHAIRMAN OF THE BOARD; 2) EMPLOYEES SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE SENIOR VICE PRESIDENT, DIRECTOR OF HUMAN RESOURCES; AND 3) VOLUNTEERS SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE AD COUNCIL'S CEO OR CFO. THE EXISTENCE OF A POTENTIAL CONFLICT OF INTEREST DOES NOT NECESSARILY CONSTITUTE A VIOLATION OF THE CONFLICT OF INTEREST POLICY. THE POLICY REQUIRES DISCLOSURE AND REVIEW OF POTENTIAL CONFLICTS AND PROHIBITION OF ACTUAL CONFLICTS OF INTEREST. IN SOME CASES, DISCLOSURE MAY BE ALL THAT IS REQUIRED. IN OTHER CASES, THE SITUATION MAY REQUIRE ADDITIONAL ACTION TO AVOID AN ACTUAL CONFLICT OF INTEREST OR TO REMEDY ONE. WHERE A CONFLICT OF INTEREST ARISES, AN INTERESTED COVERED PARTY SHALL ABSTAIN FROM DELIBERATIONS AND REFRAIN FROM PARTICIPATING IN ANY DECISIONS OR VOTING IN CONNECTION WITH THE MATTER. THE CODE OF CONDUCT AND CONFLICT OF INTEREST POLICY IS REVIEWED ANNUALLY. THE POLICY WAS UPDATED FOR STAFF IN APRIL 2014 AND FOR THE BOARD IN OCTOBER 2014. THE UPDATED POLICY WAS DISTRIBUTED TO ALL EMPLOYEES AND BOARD MEMBERS TO BE REVIEWED AND SIGNED. FORM 990, PART VI, SECTION B, LINE 15 APPROXIMATELY EVERY THREE YEARS, THE AD COUNCIL HIRES AN INDEPENDENT CONSULTING FIRM TO CONDUCT A COMPREHENSIVE COMPENSATION STUDY. THE STUDY IS CONDUCTED TO ASSESS THE EXTERNAL COMPETITIVENESS OF THE AD COUNCIL'S CURRENT TOTAL PAY, DEVELOP COMPARABLE MARKET BASE SALARY AND TOTAL PAY SUMMARY STATISTICS AND AUDIT AND RECOMMEND CHANGES TO THE AD COUNCIL'S EMPLOYEE INCENTIVE PLAN. THE MOST RECENT COMPREHENSIVE STUDY WAS PERFORMED IN SEPTEMBER 2017 AND REVIEWED FOR UPDATED COST OF LIVING ADJUSTMENTS IN SEPTEMBER 2018. THE INFORMATION GATHERED FROM THESE STUDIES IS USED TO HELP INFORM THE DECISION-MAKING PROCESS OF THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF THE CHAIRMAN OF THE BOARD, THE THREE VICE CHAIRS AND THE HEAD OF THE FINANCE COMMITTEE. THE COMMITTEE MEETS AT LEAST ANNUALLY TO REVIEW AND ESTABLISH THE TOTAL COMPENSATION PACKAGE (BASE SALARY AND INCENTIVE GOALS) FOR THE PRESIDENT AND CEO AND CHIEFS. THE COMMITTEE ALSO REVIEWS AND APPROVES THE TOTAL INCENTIVE PAYOUT FOR THE ENTIRE ORGANIZATION. THIS ENTIRE PROCESS IS CONTEMPORANEOUSLY DOCUMENTED IN MEETING MINUTES. FISCAL YEAR 2018 COMPENSATION REVIEW WAS PERFORMED ON OCTOBER 12, 2017. FISCAL YEAR 2019 COMPENSATION REVIEW WAS PERFORMED ON SEPTEMBER 14,2018. OTHER KEY EMPLOYEES ARE ADDRESSED IN THE COMPENSATION STUDY AND THIS COMPARATIVE DATA IS USED AS A PART OF THE PROCESS WHERE THE CEO, CFO, HR AND DEPARTMENT HEADS REVIEW AND APPROVE THE COMPENSATION PACKAGE FOR EACH EMPLOYEE ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS (BY-LAWS) AND/OR CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. THE FINANCIAL STATEMENTS CAN BE FOUND ON THE AD COUNCIL'S WEBSITE: WWW.ADCOUNCIL.ORG. FORM 990, PART VI, LINE 2: THE AD COUNCIL'S BUSINESS MODEL INCLUDES THE SERVICES OF A PRO BONO ADVERTISING AGENCY FOR EACH OF THE PUBLIC SERVICE ANNOUNCEMENT CAMPAIGNS ("CAMPAIGNS") THAT THE AD COUNCIL CREATES AND DISTRIBUTES FOR ITS GOVERNMENT AND NON-PROFIT CLIENTS. AMONGST THESE VOLUNTEER AD AGENCIES ARE SEVERAL AGENCIES THAT HAVE OFFICERS WHO ALSO SIT ON THE AD COUNCIL BOARD. THE PRO BONO ADVERTISING AGENCIES ARE APPROVED BY THE CLIENT PRIOR TO THEIR SELECTION. THESE AGENCIES DONATE THEIR LABOR TO THE CAMPAIGN, WITH THE EXCEPTION OF CERTAIN PRE-AUTHORIZED SPECIALIZED TASKS WHICH ARE OFFERED AT DISCOUNTED RATES. THE AD COUNCIL AND ITS CLIENTS PAY FOR PRE-APPROVED OUT-OF-POCKET COSTS INCURRED IN THE COURSE OF PERFORMANCE FOR THESE SPECIFIC CAMPAIGNS. THESE REIMBURSED COSTS INCLUDE PHYSICAL PRODUCTION, TRAVEL, THIRD PARTY RESEARCH, TELEPHONE, POSTAGE AND CERTAIN OTHER COSTS OF CREATING, PRODUCING, AND DISTRIBUTING THESE CAMPAIGNS. ADDITIONALLY, THE AD COUNCIL UTILIZES THE SERVICES OF SPECIALIZED VENDORS FOR THE CAMPAIGNS THAT OFTEN PROVIDE DISCOUNTED AND NON-PROFIT RATES TO THE AD COUNCIL. AMONGST THESE SPECIALIZED VENDORS ARE SEVERAL BUSINESSES THAT HAVE OFFICERS WHO ALSO SIT ON THE AD COUNCIL BOARD. THE AD COUNCIL ALSO HAS SEVERAL REGIONAL EMPLOYEES WHO WORK OUT OF DONATED OFFICE SPACE FROM COMPANIES THAT HAVE OFFICERS WHO SIT ON THE AD COUNCIL BOARD. THESE OFFICE COSTS ARE ACCOUNTED FOR AS IN-KIND USE OF FACILITIES. FORM 990, PART XI, LINE 9: ACTUARIAL CHANGE IN POST RETIREMENT OBLIGATIONS -8,612. FORM 990, PART XII, LINE 2C: THE AD COUNCIL HAS AN AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS AND FOR THE SELECTION OF THE INDEPENDENT AUDITORS. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.