2019-11-13T18:12:30-06:00 2018-12-31 910605875 PETERSON SULLIVAN LLP CPA'S 601 UNION ST STE 2300 SEATTLE WA 981012345 990 2018-01-01 813414267 CARNATION FARMS CARN 4258443100 28901 NE CARNATION FARM ROAD CARNATION WA 98014 HANNAH CAVENDISH-PALMER EXECUTIVE DIRECTOR 4258443100 2019-11-08 1 RAY HOLMDAHL P00120599 2063827777 2019-11-08 38.100.226.178 2019-11-08 16:06:24 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 33872C531EF8FE425F51E58E6698AF6B558D74E8 2018 2020-03-31 21:24:44Z HANNAH CAVENDISH-PALMER 28901 NE CARNATION FARM ROAD CARNATION WA 98014 3465348 0 X WWW.CARNATIONFARMS.ORG X 2016 WA CARNATION FARMS IS ON A MISSION TO TRANSFORM THE WAY THAT PEOPLE WANT TO EAT. WE CELEBRATE DELICIOUS AND NUTRITIOUS FOOD PRODUCED IN A SUSTAINABLE MANNER BY PROVIDING INSPIRATIONAL AND EDUCATIONAL EXPERIENCES THAT POSITIVELY AFFECT HEATH, THE ENVIRONMENT, AND LOCAL ECONOMIES. WE GROW NEW FARMERS AND DEVELOP THE NEXT GENERATION OF FOOD CITIZENS. 4 0 76 150 328626 -55674 3468849 2730567 211011 382137 45 257 70564 188075 3750469 3301036 0 0 0 0 1933482 2094650 0 0 144972 1569873 1221140 3503355 3315790 247114 -14754 14590535 13691161 10659461 10182093 3931074 3509068 X WE TRANSFORM THE WAY PEOPLE EAT THROUGH DELICIOUS & NUTRITIOUS FOOD PRODUCED IN SUSTAINABLE MANNER. WE PROVIDE INSPIRATIONAL & EDUCATIONAL EXPERIENCES THAT POSITIVELY AFFECT HEALTH, THE ENVIRONMENT AND LOCAL ECONOMIES. WE DEVELOP THE NEXT GENERATION OF FOOD CITIZENS & GROW FARMERS. 1 0 1727820 31770 AGRICULTURAL ACTIVITIES (FOOD & HAY PRODUCTION, PASTURE MANAGEMENT, FARMSTAND, FARMER'S MARKETS, FARMERS-IN-TRAINING):CARNATION FARMS' SUSTAINABLE AGRICULTURE ACTIVITIES INCLUDE 400 ACRES OF CERTIFIED ORGANIC VEGETABLE, FRUIT, EGG, GRAIN, HAY, AND LIVESTOCK PRODUCTION FOR SALE AND FOR USE IN ITS EDUCATION PROGRAMS. THE CARNATION FARMS FARMSTAND RECEIVES MORE THAN 10,000 VISITORS PER YEAR AND NOT ONLY SELLS PRODUCTS FROM THE FARM TO THE LOCAL POPULACE, BUT ALSO PROVIDES AN OUTLET FOR OTHER LOCAL FARMERS TO SELL THEIR PRODUCTS. THE FARM'S PRODUCTS ARE ALSO SOLD THROUGH LOCAL FARMERS MARKETS, LOCAL RESTAURANT AND CATERING BUSINESSES, AND SEVERAL ORGANIZATIONS THAT WORK TO ALLEVIATE HUNGER IN THE REGION. CARNATION FARMS ALSO HELPS NEW FARMERS LAUNCH THEIR OWN BUSINESSES THROUGH ITS FARMER-IN-TRAINING PROGRAM. PARTICIPANTS FARM ALONGSIDE CARNATION FARMS STAFF, RECEIVE TRAINING AND EDUCATION, AND HAVE THE OPTION OF LIVING ON SITE. AFTER ROUGHLY 6 MONTHS, THEY BEGIN WORKING ON THEIR OWN BUSINESS PLAN AND DURING THEIR SECOND YEAR ON THE FARM, THEY CAN OPT TO START FARMING THEIR OWN PIECE OF LAND ON SITE. 190985 53511 B) CAMPS & CLASSES (SUMMER CAMPS FOR KIDS, CULINARY AND FARM RELATED CLASSES FOR ADULTS AND KIDS, FIELD TRIPS):THROUGHOUT THE YEAR, CARNATION FARMS HOSTS CULINARY AND FARM-RELATED CLASSES AND WORKSHOPS FOR ALL AGES, GIVING THE PUBLIC UNIQUE HANDS-ON EXPERIENCES THAT CONNECT THEM TO AGRICULTURE. MANY LOCAL SCHOOLS AND ORGANIZATIONS VISIT THE FARM THROUGH ITS FIELD TRIP PROGRAM. EACH FIELD TRIP INVOLVES AGE-APPROPRIATE FOOD AND FARMING ACTIVITIES AND SHOWS PARTICIPANTS THE IMPORTANCE OF IMPROVING THE FOOD SYSTEM. IN ADDITION, EACH SUMMER, MORE THAN 100 KIDS COME TO THE FARM FOR ITS SERIES OF WEEK-LONG FARM AND FOOD CAMPS. THESE CAMP SESSIONS EXPOSE CHILDREN TO SUSTAINABLE AGRICULTURE AND HEALTHY, SEASONAL COOKING AND EATING. DURING THE FINAL DAY OF EACH CAMP WEEK, PARENTS ATTEND A DEMONSTRATION WHERE THE CAMPERS SHOW THEM WHAT THEY HAVE LEARNED. 119366 ROOTED PROGRAM (SUMMER AGRICULTURALLY BASED YOUTH DEVELOPMENT AND EMPLOYMENT PROGRAM):THE ROOTED PROGRAM AT CARNATION FARMS IS A 7-WEEK SUMMER AGRICULTURE-BASED YOUTH DEVELOPMENT AND EMPLOYMENT PROGRAM FOR GRADES 9 AND 10. EACH SUMMER, 30 TEENS ARE PAID TO WORK TOGETHER ON OUR 800-ACRE CERTIFIED ORGANIC FARM, GAINING A FIRST-HAND UNDERSTANDING OF THE JOYS AND CHALLENGES OF FARMING. THROUGH WORKSHOPS ON ASPECTS OF THE FOOD SYSTEM FROM SEED TO PLATE, SERVICE AT ANTI-HUNGER ORGANIZATIONS, AND LEADERSHIP SKILLS TRAINING, PARTICIPANTS DEVELOP THE SKILLS TO RESHAPE THE FOOD SYSTEM. IN ADDITION TO ACTUAL AGRICULTURAL PRODUCTION FIELD WORK AND LIVESTOCK CARE, THE CURRICULUM INCLUDES WEEKLY CULINARY CLASSES AND FOOD SYSTEM WORKSHOPS. 232763 106835 FARM TO TABLE EVENTS, FIELD TRIPS AND COMMUNITY BASED FARM EVENTS 232763 106835 2270934 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 1 21 0 1 76 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 4 0 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X MARIAH MITCHELL 4258443277 28901 NE CARNATION FARM ROAD CARNATION WA 98014 ELBRIDGE STUART III CO-PRESIDENT 5.00 X X 0 0 0 DEBRA STUART VICE PRESIDENT 5.00 X X 0 0 0 DANIEL ODERYD CO-PRESIDENT, TREASURER 5.00 X X 0 0 0 SARAH ODERYD SECRETARY 5.00 X X 0 0 0 JEFFREY GOTTLIEB CEO 40.00 X 237433 0 2926 237433 0 2926 1 0 1 0 AXIOM CONSTRUCTION & CONSULTING LLC PO BOX 71 LYNDEN WA 98264 ROOF REPLACEMENT 187970 CFO SELECTIONS LLC 310 120TH AVENUE NE 101 BELLEVUE WA 98005 CFO SERVICES 107600 GREAT LANDSCAPE SERVICES 17373 149TH ST SE MONROE WA 98272 LANDSCAPING 106587 3 8141 2303572 418854 24353 2730567 WEDDING AND EVENT REVE 900099 328626 328626 CAMPS & CLASSES 900099 53511 53511 382137 257 257 49940 0 49940 49940 49940 8706 8141 9520 -814 -814 293397 154792 138605 138605 MISCELLANEOUS REVENUE 900099 344 344 344 3301036 192116 328626 49727 240359 170438 62485 7436 1487514 1053523 387668 46323 30404 21533 7924 947 170129 120493 44338 5298 166244 117741 43326 5177 8606 6073 2155 378 126099 87118 38286 695 37045 5340 15948 15757 46285 9598 34743 1944 46919 24329 21255 1335 67446 40474 14366 12606 432349 314907 99911 17531 150868 106454 37784 6630 128403 90602 32158 5643 PROGRAM EXPENSE 107304 68637 34531 4136 OTHER EXPENSES 56746 31710 15565 9471 DONOR CULTIVATION 8996 1964 3367 3665 EMPLOYEE RECRUITMENT EX 4074 4074 3315790 2270934 899884 144972 272617 97959 30012 81102 48512 10942 9019 31641 96774 114182 955736 273638 756295 682098 13377306 12673237 14590535 13691161 229959 259800 44540 53752 10384962 9868541 10659461 10182093 X 355150 74508 3575924 3434560 3931074 3509068 14590535 13691161 X -14754 -704069 296817 X 0 1 X 0 0 X 1671920 3468849 2730567 7871336 1671920 3468849 2730567 7871336 7346114 525222 10035 45 257 10337 7881673 486686 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 243351 21585 221766 712385 252053 460332 682098 USE OF FACILITIES RECEIVABLE 12673237 12673237 SECURITY DEPOSITS 37269 LONG TERM FACILITIES MAINTENANCE LIABILITY 9831272 9868541 3322718 21682 21682 3301036 0 3301036 3337472 21682 21682 3315790 0 3315790 CELEBRATION OF FARMING & FOOD 16847 8141 8706 1705 250 7565 16847 8141 8706 1705 250 7565 9520 -814 X X 0 0 0 0 0 0 0 0 0 JEFFREY GOTTLIEB CEO 237433 0 0 0 0 0 2031 0 895 0 240359 0 0 0 ELBRIDGE & DEBRA STUART FOUNDATION SUBSTANTIAL CONTRIBUTOR AND BOARD MEMBER 12673237 USE OF FACILITIES CONTRIBUTION RECEIVABLE 0 ELBRIDGE & DEBRA STUART FOUNDATION SUBSTANTIAL CONTRIBUTOR AND BOARD MEMBER 9831272 FACILITIES AND MANTENANCE OBLIGATIONS 0 SCHEDULE L, PART IV CARNATION FARMS LEASES ITS FARM AND OFFICE SPACE FROM A RELATED PARTY AT A RATE OF $1 PER YEAR. THE LEASE EXPIRES ON SEPTEMBER 30, 2036, AND MAY BE CANCELLED BY EITHER PARTY WITH 12 MONTHS' WRITTEN NOTICE. AS THE LEASE IS NOT EXPECTED TO BE CANCELLED BY EITHER PARTY, THE FULL VALUE OF THE CONTRIBUTED RENT AND THE FACILITIES MAINTENANCE OBLIGATION HAS BEEN RECOGNIZED. THE TERMS OF THE LEASE INCLUDE THAT CARNATION FARMS MUST PAY ALL UTILITIES AND PROPERTY TAXES AND IS LIABLE FOR MAINTENANCE OF THE REAL AND PERSONAL PROPERTY LOCATED ON THE PROPERTY IN CARNATION, WASHINGTON.THE FAIR VALUE OF THE IN-KIND RENTAL PAYMENTS, AS ESTIMATED BY MANAGEMENT, OVER THE LIFE OF THE LEASE WAS GREATER THAN THE ESTIMATED FAIR VALUE OF THE PROPERTY, BASED ON A PROPERTY VALUATION REPORT PREPARED BY AN INDEPENDENT THIRD PARTY. THEREFORE, MANAGEMENT VALUED THE USE OF FACILITIES RECEIVABLE USING THE LOWER AMOUNT AND BASED THE USE OF FACILITIES RECEIVABLE ON THE FAIR VALUE OF THE REAL PROPERTY.CARNATION FARMS AND THE LANDLORD AGREED TO A SCHEDULE OF REQUIRED REPAIRS AND MAINTENANCE THROUGH 2022. THIS SCHEDULE WAS BASED ON AN ASSESSMENT OF NEEDED REPAIRS AND MAINTENANCE PERFORMED BY AN INDEPENDENT THIRD PARTY. MANAGEMENT EXPECTS TO HAVE THE INDEPENDENT THIRD PARTY PERFORM THE ASSESSMENT EVERY FIVE YEARS OVER THE LIFE OF THE LEASE. THE MAINTENANCE LIABILITY FOR THE LIFE OF THE LEASE WAS ESTIMATED BASED ON THE SCHEDULE AGREED TO WITH THE LANDLORD.IN 2017, CARNATION FARMS RECOGNIZED AN IN KIND CONTRIBUTION OF USE OF FACILITIES OF $3,727,288 REPRESENTING THE DIFFERENCE BETWEEN THE FAIR VALUE OF LEASED PREMISES FOR WHICH A RECEIVABLE WAS RECORDED AND THE MAINTENANCE LIABILITY. THE USE OF FACILITIES CONTRIBUTION RECEIVABLE IS AMORTIZED ON A STRAIGHT LINE BASIS OVER THE 20 YEAR LEASE PERIOD TO RENT EXPENSE. RENT EXPENSE WAS $704,069 DURING THE YEAR ENDED DECEMBER 31, 2018. THE BALANCE OF THE USE OF FACILITIES CONTRIBUTION RECEIVABLE WAS $12,673,237 AT DECEMBER 31, 2018. A LIABILITY FOR THE MAINTENANCE OF THE PROPERTY HAS BEEN RECORDED IN THE AMOUNT OF $9,831,272, WHICH WILL BE DECREASED ANNUALLY IN FUTURE YEARS DEPENDING ON THE ACTUAL COSTS OF MAINTENANCE. FORM 990, PART III, LINE 2 ADDED ROOTED TEEN EMPLOYMENT PROGRAM AND FARMERS IN TRAINING PROGRAM. EXPANDED FARM-TO-TABLE MEALS, CULINARY CLASSES AND CHILDREN'S CAMPS. FORM 990, PART VI, SECTION A, LINE 2 CO-PRESIDENT #1 & VICE PRESIDENT ARE MARRIED, CO-PRESIDENT #2 & SECRETARY ARE MARRIED. CO-PRESIDENT #1 & VICE PRESIDENT ARE PARENTS OF SECRETARY. CO-PRESIDENT #2 IS SON-IN-LAW TO CO-PRESIDENT #1 & VICE PRESIDENT. FORM 990, PART VI, SECTION A, LINE 6 ELBRIDGE STUART III AND DEBRA STUART ARE THE MEMBERS OF THIS CORPORATION, AND EXERCISE THEIR MEMBERSHIP RIGHTS THROUGH THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A ELBRIDGE STUART III AND DEBRA STUART, BOTH INDIVIDUALS, ARE THE MEMBERS OF THIS CORPORATION. THE MEMBERS ELECT THE DIRECTORS OF THE CORPORATION, WHO SERVE FOR OVERLAPPING THREE YEAR TERMS. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED AND APPROVED BY THE BOARD PRIOR TO ITS FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD DISCUSSES ALL DISCLOSED CONFLICTS AND ALL DIRECTORS WITH CONFLICTS RECUSE THEMSELVES FROM VOTING ON MATTERS IN WHICH THEY HAVE CONFLICTS, PER THE CORPORATION'S CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15A CEO SALARY WAS DETERMINED BY INFORMALLY BENCHMARKING AGAINST CEOS OF LOCAL NON-PROFITS WITH SIMILAR SIZE AND SCALE. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE PUBLICLY AVAILABLE. OUR FORM 990 FILING SUMMARIZES THE KEY TENETS OF THESE DOCUMENTS AND IS PUBLICLY AVAILABLE. FORM 990, PART XI, LINE 9: GAIN ON FACILITY LEASE OBLIGATIONS 296,817. ELBRIDGE AND DEBRA STUART FAMILY FOUNDATION PO BOX 8340 INCLINE VILLAGE NV 89450 264492027 PRIVATE FOUNDATION NV 501(C)(3) N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ELBRIDGE AND DEBRA STUART FAMILY FOUNDATION C 2303572 CASH