2019-06-14T02:07:18-05:00 2018-07-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2017-08-01 954470909 MUSICARES FOUNDATION INC MUSI 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 90404 NEIL PORTNOW PRESIDENT/CEO 3103923777 2019-06-13 1 JOAN S MCMAHON P00966494 4157834000 167.219.88.140 2019-06-13 09:40:24 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 40B1CA659B6B02CC8A600264B1F205665E55F07D 2017 2019-02-21 02:37:17Z NEIL PORTNOW 3030 OLYMPIC BOULEVARD SANTA MONICA CA 90404 15382461 0 X WWW.GRAMMY.COM/MUSICARES X 1989 CA MUSICARES PROVIDES A SAFETY NET OF CRITICAL ASSISTANCE FOR MUSIC PEOPLE IN TIMES OF NEED. 19 19 21 290 4166 0 16833286 10609757 0 0 945432 1179447 -6340186 -2478246 11438532 9310958 5942581 6528533 0 0 2396300 2447635 0 0 918545 1476968 1835920 9815849 10812088 1622683 -1501130 25115285 24376644 667484 1346141 24447801 23030503 X MUSICARES PROVIDES A SAFETY NET OF CRITICAL ASSISTANCE FOR MUSIC PEOPLE IN TIMES OF NEED. MUSICARES' SERVICES AND RESOURCES COVER A WIDE RANGE OF FINANCIAL, MEDICAL AND PERSONAL EMERGENCIES, AND EACH CASE IS TREATED WITH INTEGRITY AND CONFIDENTIALITY. MUSICARES ALSO FOCUSES THE RESOURCES AND ATTENTION OF THE MUSIC INDUSTRY ON HUMAN SERVICE ISSUES THAT DIRECTLY IMPACT THE HEALTH AND WELFARE OF THE MUSIC COMMUNITY. 0 0 6509085 5065665 THE FOUNDATION PROVIDES FINANCIAL ASSISTANCE OF UP TO $5,000 PER CALENDAR YEAR FOR BASIC NEEDS AND $7,500 FOR MEDICAL ILLNESS AND/OR MAJOR MEDICAL CONDITIONS WITH A LIFETIME MAXIMUM OF $15,000 TO RECORDING INDUSTRY PERSONNEL, INCLUDING CREATIVE AND TECHNICAL PERSONNEL (I.E. MUSICIANS, COMPOSERS, ENGINEERS, PRODUCERS, ETC.), MUSIC BUSINESS STAFF (I.E. RECORD LABEL STAFF, MANAGEMENT COMPANIES, ENTERTAINMENT ATTORNEYS, MUSIC RETAILERS), AND OTHER MEMBERS OF THE MUSIC COMMUNITY WHO HAVE BEEN EMPLOYED IN THE INDUSTRY FOR AT LEAST FIVE YEARS. THESE GRANTS ARE MADE AVAILABLE TO MUSIC PEOPLE FACING AN UNFORSEEN MEDICAL, PERSONAL, OR FINANCIAL CRISIS. THIS CAN INCLUDE PAYMENTS FOR HEALTH CARE PROFESSIONALS AND PRESCRIPTIONS, RENT/MORTGAGE PAYMENTS, HEALTH INSURANCE PREMIUMS, AND COSTS FOR OTHER BASIC LIVING SUPPORT SERVICES. THROUGH ITS COMMUNITY OUTREACH AND EDUCATIONS PROGRAMS, THE FOUNDATION ALSO PROVIDES WORKSHOPS, SEMINARS, AND INDIVIDUAL CONSULTATIONS TO MEMBERS OF THE MUSIC COMMUNITY ON TOPICS RELATED TO GENERAL HEALTH AND HUMAN SERVICE NEEDS. IT ALSO PROVIDES IDEAS AND RESOURCES FOR PROACTIVELY ADDRESSING THOSE ISSUES. 1999237 1459598 MAP FUND (FORMERLY ADDICTION RECOVERY INITIATIVES) - THE FOUNDATION PROVIDES EMERGENCY FINANCIAL ASSISTANCE TO INDIVIDUALS WITHIN THE MUSIC COMMUNITY FACING ADDICTION. ASSISTANCE LIMITS ARE $8,500 PER YEAR WITH A LIFETIME LIMIT OF $15,000. THE PROGRAM MAY PROVIDE PAYMENT FOR INPATIENT TREATMENT, SOBER LIVING AND/OR OTHER EXPENSES RELATED TO RECOVERY. THE PROGRAM ALSO PROVIDES A SUPPORT NETWORK OF RECOVERY RESOURCES FOR MUSIC PEOPLE WHO ARE TOURING THROUGHOUT THE COUNTRY. IN ADDITION THE FOUNDATION ALSO PROVIDES WORKSHOPS AND COORDINATES MEETINGS OF INDUSTRY PROFESSIONALS TO DISCUSS THE PROBLEMS OF CHEMICAL DEPENDENCY AND DISCUSS SPECIFIC STRATEGIES FOR INTERVENTION FOR INDIVIDUALS WITHIN THE MUSIC COMMUNITY. 1000 1000 MUSICARES FOUNDATION PROVIDES VARIOUS GRANTS TO OTHER TAX EXEMPT ORGANIZATIONS. 8509322 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 1 1 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 38 0 1 21 1 1 1 0 0 0 0 1 1 0 0 0 0 X 19 19 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AK AL AR AZ CA CO CT DE FL GA HI IA ID IL KS MA MD ME MI MN MS NC ND NH NJ NM NY OH OR PA RI SC SD TN UT WA WI WV VA OK X X JUDY WONG 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 90404 X NEIL PORTNOW PRESIDENT/CEO 1.00 X 0 0 0 MICHAEL MCDONALD CHAIR 1.00 X X 0 0 0 ALEXANDRA PATSAVAS CHAIR EMERITUS 1.00 X X 0 0 0 JAMES HIGA SECRETARY/TREASURER 1.00 X X 0 0 0 STEVE BOOM FROM 617 DIRECTOR 1.00 X 0 0 0 PETE FISHER DIRECTOR 1.00 X 0 0 0 JODY GERSON DIRECTOR 1.00 X 0 0 0 JEFF HARLESTON DIRECTOR 1.00 X 0 0 0 AMBROSIA HEALY FROM 617 DIRECTOR 1.00 X 0 0 0 TAMRA HRIVNAK DIRECTOR 1.00 X 0 0 0 JEFF JONES FROM 617 DIRECTOR 1.00 X 0 0 0 MIKE KNOBLOCH DIRECTOR 1.00 X 0 0 0 ROB LIGHT DIRECTOR 1.00 X 0 0 0 KEVIN LYMAN DIRECTOR 1.00 X 0 0 0 CARIANNE MARSHALL FROM 617 DIRECTOR 1.00 X 0 0 0 HARVEY MASON JR FROM 618 DIRECTOR 1.00 X 0 0 0 JOHN POPPO DIRECTOR 1.00 X 0 0 0 KIRDIS POSTELLE DIRECTOR 1.00 X 0 0 0 SCOTT POWELL DIRECTOR 1.00 X 0 0 0 ANDIE SIMON DIRECTOR 1.00 X 0 0 0 DANA TOMARKEN VICE PRESIDENT 40.00 X 271458 0 50111 JUDY WONG VICE PRESIDENT 40.00 X 178977 0 34107 DEBBIE CARROLL VICE PRESIDENT 40.00 X 155874 0 38113 HAROLD OWENS SENIOR DIRECTOR 40.00 X 121807 0 31886 EDWYNA WYNN SENIOR DIRECTOR 40.00 X 105860 0 13956 833976 0 168173 5 0 1 0 BOUNCE EVENT MARKETING INC 100 NORTH CRESCENT DRIVE BEVERLY HILLS CA 90210 EVENT PRODUCTION 2463351 1OF1 CUSTOM 855 STANTON ROAD 300 BURLINGAME CA 94010 HEARING CLINIC PROVIDER 739467 FLEETWOOD MAC TOURING 2014 LLC 21731 VENTURA BLVD WOODLAND HILLS CA 91364 PERFORMANCE FEE 581812 NEW YORK HILTON MIDTOWN 1335 SIXTH AVENUE NEW YORK NY 10019 EVENT CATERING 563470 CUMBERLAND HEIGHTS TREATMENT CENTER 8283 RIVER ROAD PIKE NASHVILLE TN 37209 SOBRIETY TREATMENT 316404 10 5607974 5001783 846567 10609757 1146531 1146531 311907 278991 32916 32916 32916 2886531 5607974 5792512 -2905981 -2905981 ONLINE AUCTIONS 900099 423569 423569 TV LICENSING/ROYALTY 541200 4166 4166 427735 9310958 0 4166 -1302965 3270 3270 6422357 6422357 102906 102906 1956597 1058342 480854 417401 72739 42638 17386 12715 281770 173668 49261 58841 136529 80278 30481 25770 306123 9966 290597 5560 66010 66010 160367 1553 158814 598166 251805 173404 172957 7106 200 38 6868 62506 29479 13416 19611 83862 34046 15705 34111 11639 5553 4883 1203 195482 150642 15615 29225 68169 63944 4225 44528 23541 16204 4783 TAXES AND LICENSES 39562 16640 15116 7806 GRAMMY TICKETS 31600 31600 REPAIR AND MAINTENANCE 26483 10966 7234 8283 PRODUCTION COSTS 24830 2500 22330 109487 27528 22478 59481 10812088 8509322 1384221 918545 1202 1200 3840122 2130564 83000 83000 355843 275771 58951 50552 360523 221223 162535 139300 20582500 21356601 31132 339656 25115285 24376644 294208 377249 136369 79195 236907 889697 667484 1346141 X 21826558 22920014 188540 110489 24447801 23030503 25115285 24376644 -1501130 83832 0 X 0 1 X 1 0 X 13276388 13591540 13991441 16833286 10609757 68302412 13276388 13591540 13991441 16833286 10609757 68302412 18671637 49630775 460649 725835 846530 880179 1146531 4059724 1895851 1915863 2248894 2319827 3310100 11690535 84052671 0.59050 0.63890 X 0 10533673 10533673 10533673 10533673 10378665 855310 700302 10533673 10095404 1486849 1203588 10378665 9702952 1176853 784401 10095404 0 0 143342 89758 53584 217181 131465 85716 139300 PAYABLE TO NARAS 889697 889697 X 9652553 83832 257763 341595 9310958 0 9310958 11069859 257763 257763 10812096 0 10812096 PART V, LINE 4: TO PROVIDE ONGOING FUNDING OF OPERATIONAL AND PROGRAMMATIC EXPENSES. PART X, LINE 2: THE MUSICARES FOUNDATION ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES. FASB ASC 740 PRESCRIBES A COMPREHENSIVE MODEL FOR HOW A COMPANY SHOULD RECOGNIZE, MEASURE, PRESENT, AND DISCLOSE IN ITS FINANCIAL STATEMENTS UNCERTAIN TAX POSITIONS THAT THE COMPANY HAS TAKEN, OR EXPECTS TO TAKE, ON A TAX RETURN. DURING THE YEARS ENDED JULY 31, 2018 AND JULY 31, 2017, MUSICARES FOUNDATION DID NOT RECORD ANY LIABILITY FOR UNRECOGNIZED TAX BENEFITS. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES NETTED WITH REVENUE PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES NETTED WITH REVENUE 1 CENTRAL AMERICA & THE CARIBBEAN GRANTS 92283 EUROPE (INCLUDING ICELAND & GREENLAND) GRANTS 2500 NORTH AMERICA GRANTS 8123 EUROPE (INCLUDING ICELAND & GREENLAND) FUNDRAISING 7200 0 0 0 0 0 0 110106 0 110106 CENTRAL AMERICA & THE CARIBBEAN ADDICTION RECOVERY SERVICES 76500 CHECK FMV 1 0 0 0 0 0 0 PART I, LINE 2: GRANT FUNDS REPORTED IN PART II WERE PROVIDED TO 9 RECIPIENTS WHO EACH RECEIVED A 28-DAY INPATIENT SUBSTANCE ABUSE TREATMENT. MUSICARES RECEIVED WEEKLY PROGRESS REPORTS FROM CROSSROADS WHICH ENSURES OUR CLIENTS REMAIN IN TREATMENT. IN ADDITION, 27 RECIPIENTS RECEIVED AID FOR BASIC LIVING NEEDS. POTY DINNER/AUCTION 7955286 5281605 2673681 473677 580526 583312 3980359 MAP CONCERT 374719 276369 98350 28000 33927 94113 2 164500 50000 114500 5073 13525 8494505 5607974 2886531 501677 619526 583312 4087997 5792512 -2905981 1 FINANCIAL ASSISTANCE TO INDIVIDUALS WITHIN THE MUSIC COMMUNITY, INCLUDING BUT NOT LIMITED TO PAYMENTS MADE TO THIRD PARTY VENDORS ON BEHALF OF INDIGENT RECORDING INDUSTRY PERSONNEL. 8268 5039259 CASH VALUE FINANCIAL ASSISTANCE FOR ADDICTION RECOVERY SERVICES, INCLUDING, BUT NOT LIMITED TO, PAYMENTS MADE TO THIRD PARTY VENDORS ON BEHALF OF RECORDING INDUSTRY PERSONNEL FOR SUBSTANCE ABUSE TREATMENT 256 1383098 CASH VALUE PART I, LINE 2: THE GRANTEE IS REQUIRED TO PROVIDE DOCUMENTATION FOR THE BASIS OF THE GRANT AND MUSICARES WILL PAY DIRECTLY FROM THE PROVIDED DOCUMENTS (I.E. MEDICAL BILLS, INSURANCE, BASIC LIVING INCLUDING RENT, ETC.) DIRECTLY TO THE VENDOR ON BEHALF OF THE GRANTEE. 1 X X X X X 0 0 0 0 0 0 0 0 0 DANA TOMARKEN VICE PRESIDENT 258175 0 1750 0 11533 0 23902 0 26209 0 321569 0 0 0 JUDY WONG VICE PRESIDENT 173384 0 1750 0 3843 0 14461 0 19646 0 213084 0 0 0 DEBBIE CARROLL VICE PRESIDENT 152638 0 1000 0 2236 0 12177 0 25936 0 193987 0 0 0 HAROLD OWENS SENIOR DIRECTOR 116358 0 1000 0 4449 0 9029 0 22857 0 153693 0 0 0 X GIFT BAGS 7 785447 COST OR SELLING PRIC X ADVERTISEMENTS 2 36000 COST OR SELLING PRIC X GRAMMY TICKETS 1 23800 COST OR SELLING PRIC X BEVERAGES 1 1320 COST OR SELLING PRIC 0 0 1 PART I, COLUMN (B): COLUMN B REFLECTS THE NUMBER OF CONTRIBUTORS THAT PROVIDED CERTIFICATES AND PRODUCTS TO OUR FUNDRAISING EVENTS. PART I, LINE 32B: MUSICARES USES A THIRD PARTY VENDOR TO PROVIDE GIFTS TO TALENT IN THE GIFTING LOUNGE FOR OUR PERSON OF THE YEAR FUNDRAISING EVENT AND ALSO UTILIZES ANOTHER THIRD PARTY TO HELP SOLICIT ITEMS FOR OUR PERSON OF THE YEAR AUCTION. IN ADDITION MUSICARES USES AN AUCTION HOUSE (JULIEN'S AUCTIONS AND CHARITY BUZZ) TO SELL DONATED AUCTION ITEMS ON THE ORGANIZATION'S BEHALF. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS COMPRISED SOLELY OF NO LESS THAN FOUR DIRECTORS AND WHOSE NUMBER SHALL BE FIXED FROM TIME TO TIME BY THE BOARD. THE MEMBERS OF THE EXECUTIVE COMMITTEE SHALL BE ELECTED TO A ONE-YEAR TERM BY VOTE OF THE MAJORITY OF THE ENTIRE BOARD AT THE ANNUAL MEETING OF THE BOARD (OR AT SUCH OTHER MEETING AS MAY BE SELECTED BY THE BOARD) ACTING UPON THE RECOMMENDATIONS OF THE NOMINATING COMMITTEE; PROVIDED, HOWEVER THAT THE CHAIR (WHO SHALL SERVE AS CHAIR OF THE EXECUTIVE COMMITTEE), VICE CHAIR AND SECRETARY/TREASURER SHALL SERVE EX OFFICIO AS VOTING MEMBERS OF THE EXECUTIVE COMMITTEE. THE PRESIDENT SHALL SERVE EX OFFICIO AS A NON-VOTING MEMBER OF THE EXECUTIVE COMMITTEE. ADDITIONAL MEMBERS OF THE EXECUTIVE COMMITTEE MAY BE RECOMMENDED BY THE NOMINATING COMMITTEE FROM TIME TO TIME. DURING THOSE PERIODS WHEN THE BOARD IS NOT IN SESSION, THE EXECUTIVE COMMITTEE SHALL HAVE THE POWER TO ACT WITH THE FULL AUTHORITY OF THE BOARD AND SHALL EXERCISE GENERAL SUPERVISION OF THE AFFAIRS OF FOUNDATION, AND IN ALL EVENTS SHALL BE AUTHORIZED TO ADDRESS MATTERS OF A SENSITIVE, CONFIDENTIAL NATURE. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS PREPARED BY DELOITTE TAX, LLP, WORKING IN CONJUCTION WITH MUSICARES FOUNDATION INC.'S FINANCE DEPARTMENT. THE DRAFT OF THE FORM 990 IS REVIEWED BY THE ORGANIZATION'S MANAGEMENT. THE INITIAL DRAFT OF THE FORM 990 IS THEN PROVIDED TO MUSICARES FOUNDATION INC.'S FINANCE COMMITTEE FOR THEIR REVIEW. ANY COMMENTS RESULTING FROM THEIR REVIEW ARE INCORPORATED INTO THE FINAL FILING OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY AND QUESTIONNAIRE ARE PRESENTED TO BOARD MEMBERS ON AN ANNUAL BASIS. THE RESPONSES ARE MAINTAINED BY THE DIRECTOR OF CORPORATE CONTRACTS AND CORPORATE SECRETARY OF THE RECORDING ACADEMY. THE CONFLICT OF INTEREST POLICY IS MONITORED AND ENFORCED BY BOTH THE SENIOR VICE PRESIDENT AND THE CHAIR OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 ON A BI-ANNUAL BASIS, MANAGEMENT PREPARES AN ANALYTICAL STUDY OF EXECUTIVE COMPENSATION THAT COMPARES THE COMPENSATION PAID TO EXECUTIVES IN SIMILAR TAX-EXEMPT ORGANIZATIONS OF SIMILAR ACTIVITIES AND SIZE, USING THE AMOUNTS REPORTED ON THE FORM 990 FOR THESE SIMILAR ORGANIZATIONS. THE PROCESS IS MANAGED BY THE SENIOR VICE PRESIDENT, WITH INPUT FROM OUR INDEPENDENT PUBLIC ACCOUNTING FIRM. THIS STUDY IS THEN PROVIDED TO THE ORGANIZATION'S AUDIT COMMITTEE FOR REVIEW. THE PROCESS TO DETERMINE THE SENIOR VICE PRESIDENT'S COMPENSATION IS THE SAME, AND IT IS OVERSEEN BY THE PRESIDENT AND CEO OF MUSICARES FOUNDATION IN CONSULTATION WITH THE CHAIR OF THE BOARD. THE PRESIDENT AND CEO OF MUSICARES FOUNDATION IS ALSO THE PRESIDENT AND CEO OF THE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. ("NARAS"), AN AFFILIATED BUT UNRELATED TAX EXEMPT ORGANIZATION FOR TAX PURPOSES. THE PRESIDENT AND CEO IS PAID ENTIRELY BY NARAS AND IS SUBJECT TO THE COMPENSATION POLICIES SET FORTH FOR THAT TAX EXEMPT ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 THE FINANCIAL STATEMENTS ARE INCORPORATED IN FORM 990 THAT IS MADE AVAILABLE TO THE PUBLIC ON GUIDESTAR.ORG. THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII: ALL OF NEIL PORTNOW'S COMPENSATION IS PAID BY NARAS, AN AFFILIATED EXEMPT ORGANIZATION, FOR HIS SERVICES TO THEM. HIS SERVICES TO THE MUSICARES FOUNDATION ARE AS A VOLUNTEER AND AS SUCH, HE IS NOT COMPENSATED BY THE MUSICARES FOUNDATION FOR ANY OF HIS WORK AS ITS PRESIDENT AND CEO. FORM 3115 TANGIBLE PROPERTY REGULATION STATEMENT SECTION 1.263(A)-1(F) DE MINIMIS SAFE HARBOR ELECTION TAXPAYER IS MAKING THE DE MINIMIS SAFE HARBOR ELECTION UNDER TREAS. REG. 1.263(A)-1(F) FOR ALL ELIGIBLE AMOUNTS PAID OR INCURRED DURING THE TAXABLE YEAR. SECTION 1.263(A)-3(N) CAPITALIZATION ELECTION TAXPAYER HEREBY ELECTS TO CAPITALIZE REPAIR AND MAINTENANCE COSTS UNDER TREAS. REG. 1.263(A)-3(N). THE COSTS WERE INCURRED DURING THE TAXABLE YEAR IN THE ELECTING TAXPAYER'S TRADE OR BUSINESS AND THE ELECTING TAXPAYER TREATS SUCH COSTS AS CAPITAL EXPENDITURES ON ITS BOOKS AND RECORDS.