2019-02-15T11:24:21-06:00 2018-03-31 341884125 CBIZ MHM LLC 4722 N 24TH ST STE 300 PHOENIX AZ 85016 990 2017-04-01 860348306 ARIZONA COMMUNITY FOUNDATION ARIZ 6023811400 2201 E CAMELBACK ROAD SUITE 405B PHOENIX AZ 85016 JEFF SAUTER CFO 6023811400 2019-02-13 1 AMY A O'LOUGHLIN P00869687 6022646835 24.250.108.130 2019-02-13 10:17:13 MS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 1212D86953DF9911D4E957E54162B84DD93DFAA7 2017 2019-02-21 02:37:17Z STEVEN G SELEZNOW 2201 E CAMELBACK RD 405B PHX AZ 85016 130732288 0 X WWW.AZFOUNDATION.ORG X 1978 AZ TO LEAD, SERVE AND COLLABORATE TO MOBILIZE ENDURING PHILANTHROPY FOR A BETTER ARIZONA. 32 31 83 777 77797 71534 67583980 87365848 1065355 1476222 60110435 40667036 390148 262337 129149918 129771443 50707627 52939958 0 0 6216623 6681512 0 0 2600932 10989026 10858552 67913276 70480022 61236642 59291421 645436557 717217361 103440365 118212356 541996192 599005005 X TO LEAD, SERVE AND COLLABORATE TO MOBILIZE ENDURING PHILANTHROPY FOR A BETTER ARIZONA. (ADDITIONAL INFORMATION ON SCHEDULE O) 0 0 60084434 52939958 1476222 IN THE TRADITION OF COMMUNITY FOUNDATIONS EVERYWHERE, EACH YEAR ACF AWARDS MILLIONS OF DOLLARS IN GRANTS/DISTRIBUTIONS TO NONPROFIT ORGANIZATIONS, GOVERNMENT AGENCIES AND EDUCATIONAL INSTITUTIONS. GRANTS COVER A WIDE RANGE OF FOCUS AREAS INCLUDING ARTS, CULTURE AND HUMANITIES; COMMUNITY, NEIGHBORHOOD AND ECONOMIC DEVELOPMENT; EDUCATION AND SCHOLARSHIPS; HEALTH AND HUMAN SERVICES; ENVIRONMENT AND SPECIES PROTECTION; LAW, JUSTICE AND PUBLIC SAFETY; AND SCIENTIFIC RESEARCH. WHILE MOST GRANTS ARE MADE IN ARIZONA TO SERVE LOCAL COMMUNITY NEEDS, GRANTS MAY BE MADE NATIONALLY AS WELL FOR THE BETTERMENT OF OUR NATION. 60084434 1 1 0 1 0 1 0 0 1 1 1 0 0 0 1 1 0 1 0 0 1 1 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 179 0 1 83 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 0 X 32 31 0 0 0 0 1 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ X X KYLA QUINTERO 6023811400 2201 E CAMELBACK SUITE 405B PHOENIX AZ 85016 SHELLEY COHN DIRECTOR/CHAIR 1.00 1.00 X X 0 0 0 STEVE EVANS DIRECTOR/VICE-CHAIR 1.00 1.00 X X 0 0 0 RUFUS GLASPER DIRECTOR/TREASURER 1.00 1.00 X X 0 0 0 CHARLEY FREERICKS DIRECTOR/SECRETARY 1.00 X X 0 0 0 BENITO ALMANZA DIRECTOR 1.00 X 0 0 0 LON BABBY DIRECTOR 1.00 X 0 0 0 MARK BOHN DIRECTOR 1.00 X 0 0 0 TONY BOLAZINA DIRECTOR 1.00 X 0 0 0 MARK BONSALL DIRECTOR 1.00 X 0 0 0 RON BUTLER DIRECTOR 1.00 X 0 0 0 GWEN CALHOUN DIRECTOR 1.00 X 0 0 0 JAVIER CARDENAS DIRECTOR 1.00 X 0 0 0 DAVID CONNELL DIRECTOR 1.00 X 0 0 0 ROBBIN COULON DIRECTOR 1.00 X 0 0 0 MARK FELDMAN DIRECTOR 1.00 X 0 0 0 NEIL HILLER DIRECTOR 1.00 X 0 0 0 HEIDI JANNENGA DIRECTOR 1.00 X 0 0 0 HERB KAUFMAN DIRECTOR 1.00 X 0 0 0 LEEZIE KIM DIRECTOR 1.00 X 0 0 0 PAUL LUNA DIRECTOR 1.00 1.00 X 0 0 0 MARY MARTUSCELLI DIRECTOR 1.00 X 0 0 0 TAMMY MCLEOD DIRECTOR 1.00 X 0 0 0 ANN MELSHEIMER DIRECTOR 1.00 X 0 0 0 JACOB MOORE DIRECTOR 1.00 1.00 X 0 0 0 RICHARD MORRISON DIRECTOR 1.00 X 0 0 0 JODI PADGETT DIRECTOR 1.00 X 0 0 0 FRED PAKIS DIRECTOR 1.00 1.00 X 0 0 0 BARBARA POLEY DIRECTOR 1.00 X 0 0 0 MARIAN RHODES DIRECTOR 1.00 X 0 0 0 EVE ROSS DIRECTOR 1.00 X 0 0 0 JIM RYAN DIRECTOR 1.00 1.00 X 0 0 0 LISA URIAS DIRECTOR 1.00 X 0 0 0 JOHN WHITEMAN DIRECTOR 1.00 1.00 X 0 0 0 STEVEN G SELEZNOW DIRECTOR/PRESIDENT/CEO 45.00 20.00 X X 445974 0 44101 JEFF SAUTER CFO 45.00 25.00 X 208310 0 29386 JACQUELINE R ALLING CHIEF PHILANTHROPIC SVCS. 45.00 11.00 X 200096 0 56599 GARY DOKES CHIEF INVESTMENT OFFICER 45.00 1.00 X 219296 0 10107 ELISA DE LA VARA SR DR. OF PHILANTHROPIC SVCS-COMM INITIATIVES 45.00 2.00 X 195299 0 20287 JAMES HENSLEY DIRECTOR OF DORRANCE PROG. 45.00 X 239562 0 31657 KIMBERLY KUR SR DR. OF PHILANTHROPIIC SRVS 45.00 2.00 X 139562 0 39549 LORA GOLKE SENIOR PHILANTHROPIC ADVISOR 45.00 X 125514 0 23403 KIM COVINGTON SR DIRECTOR OF COMM INITIATIVES 45.00 X 124959 0 15269 1898572 0 270358 9 0 1 0 AMI NAGLE & ASSOCIATES INC 2704 SEVIER ST DURHAM NC 27705 PROGRAM COORDINATION 653268 ONE COMMUNITY MEDIA LLC PO BOX 17836 PHOENIX AZ 85013 PROJECT MANAGEMENT 425409 CENTERED NETWORKS INC 1527 STOCKTON ST 2 SAN FRANCISCO CA 94133 NETWORK HOSTING 345839 ADP LLC 1851 B RESKER DR MS-100 EL PASO TX 79912 PAYROLL/HR SERVICES 276132 CBIZ MHM LLC 10474 SANTA MONICA BLVD SUITE 200 LOS ANGELES CA 90025 ACCOUNTING SERVICES 150550 8 611524 1745060 85009264 23148576 87365848 ADMIN. 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FOR THOSE ORGANIZATIONS WE HELP, THE ARIZONA COMMUNITY FOUNDATION HOLDS CERTAIN ENDOWMENTS FUNDS ON THEIR BEHALF. ALTHOUGH EACH ORGANIZATION HAS THE OPTION OF SETTING A PREDETERMINED PAYOUT RATE, EACH ORGANIZATION ALSO HAS THE ABILITY TO REQUEST THE ENTIRE BALANCE AT ANY TIME UPON APPROVAL OF THE CHARITY'S BOARD. IN SOME, BUT NOT ALL, CASES SUCH WITHDRAWALS MUST ALSO BE APPROVED BY THE ARIZONA COMMUNITY FOUNDATION BOARD. ULTIMATELY, ALL INVESTMENT RESULTS ON THOSE FUNDS ACCRUE TO THE BENEFIT OF THE RESPECTIVE CHARITY. ACCORDINGLY, THE ORGANIZATION RECORDS A LIABILITY TO THE CHARITIES FOR THE BALANCE IN THOSE FUNDS ON PART X, LINE 21; HOWEVER, TO IMPROVE TRANSPARENCY, DONATIONS TO, GRANTS FROM AND INVESTMENT INCOME AND EXPENSES OF THOSE FUNDS ARE INCLUDED ON PARTS III, VIII, AND IX OF THE CORE 990 AS WELL AS SCHEDULES B AND I. SCHEDULE D, PARTS XI AND XIII CONTAIN A RECONCILIATION BETWEEN THE RETURN AND THE FINANCIAL STATEMENTS FOR THE CHANGE IN THE FUNDS' NET ASSETS. PART V, LINE 1A THE FOUNDATION'S ENDOWMENTS CONSIST OF APPROXIMATELY 625 COMPONENT FUNDS ESTABLISHED BY DONORS FOR A VARIETY OF PURPOSES. THE BYLAWS OF THE FOUNDATION INCLUDE VARIANCE LANGUAGE GIVING THE BOARD OF DIRECTORS THE POWER, WHENEVER ANY RESTRICTION OR CONDITION ON THE DISTRIBUTION OF FUNDS BECOMES, IN EFFECT, UNNECESSARY, INCAPABLE OF FULFILLMENT OR INCONSISTENT WITH THE CHARITABLE PURPOSE OF THE FOUNDATION, TO MODIFY ANY RESTRICTION OR CONDITION PLACED ON THE DISTRIBUTION OF FUNDS AND TO APPLY THE WHOLE OR ANY PART OF THE PRINCIPAL OR INCOME OF FUNDS AS IN ITS JUDGMENT IS NECESSARY TO SERVE MORE EFFECTIVELY THE CHARITABLE PURPOSE OF THE FOUNDATION. BASED ON THIS PROVISION, ALL CONTRIBUTIONS AND ASSETS NOT CLASSIFIED AS TEMPORARILY RESTRICTED DUE TO TIMING RESTRICTIONS ARE CLASSIFIED AS UNRESTRICTED. THOUGH THESE FUNDS ARE CLASSIFIED AS UNRESTRICTED, THE FOUNDATION MANAGES THE FUNDS ESTABLISHED BY DONORS AS ENDOWED FUNDS IN ACCORDANCE WITH THE TERMS SET FORTH IN THE INDIVIDUAL FUND AGREEMENTS BY DESIGNATION OF THE BOARD OF DIRECTORS. AS REQUIRED BY ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF DIRECTORS TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. IN SEPTEMBER 2008, THE STATE OF ARIZONA ENACTED ARS 10-11801 ET SEQ MANAGEMENT OF CHARITABLE FUNDS ACT ("MCFA"). THE BOARD OF DIRECTORS OF THE FOUNDATION HAS INTERPRETED MCFA AS REQUIRING THE PRESERVATION OF THE FAIR VALUE OF THE ORIGINAL GIFT AS OF THE GIFT DATE OF THE DONOR-RESTRICTED ENDOWMENT FUNDS ABSENT EXPLICIT DONOR STIPULATIONS TO THE CONTRARY. AT MARCH 31, 2018, THE FOUNDATION HAD NO DONOR-RESTRICTED ENDOWMENT FUNDS, OTHER THAN THOSE REPORTED AS TEMPORARILY RESTRICTED UNTIL THE EXPIRATION OF TIME RESTRICTIONS, AS THE BOARD HAS DETERMINED THAT THE FOUNDATION'S ENDOWMENTS DO NOT MEET THE DEFINITION OF DONOR-RESTRICTED ENDOWMENTS UNDER MCFA. THE 2015 BEGINNING OF THE YEAR BALANCE DOES NOT TIE TO THE END OF THE 2014 YEAR BALANCE OF THE PRIOR YEAR DUE TO MANAGEMENT RE-EVALUATION OF FUND TYPES TO ENSURE ONLY QUASI ENDOWED FUND BALANCES WERE PROPERLY STATED IN THIS CALCULATION. PART V, LINE 4: GRANTS AND OTHER PROGRAMMATIC ACTIVITIES SUPPORTING: ARTS, CULTURE, AND HUMANITIES; COMMUNITY, NEIGHBORHOOD & ECONOMIC DEVELOPMENT; EDUCATION, SCHOLARSHIPS; ENVIRONMENT & SPECIES PROTECTION; HEALTH & HUMAN SERVICES; LAW, JUSTICE & PUBLIC SAFETY. PART X, LINE 2: THE FOUNDATION QUALIFIES AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE "CODE") AND, ACCORDINGLY, THERE IS NO PROVISION FOR INCOME TAXES FOR THE ORGANIZATION. IN ADDITION, IT QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170 OF THE CODE AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. INCOME DETERMINED TO BE UNRELATED BUSINESS TAXABLE INCOME ("UBTI") WOULD BE TAXABLE. THE FOUNDATION EVALUATES ITS UNCERTAIN TAX POSITIONS, IF ANY, ON A CONTINUAL BASIS THROUGH REVIEW OF ITS POLICIES AND PROCEDURES, REVIEW OF ITS REGULAR TAX FILINGS, AND DISCUSSIONS WITH OUTSIDE EXPERTS. AT MARCH 31, 2018 AND 2017, MANAGEMENT BELIEVES THE FOUNDATION DID NOT HAVE ANY UNCERTAIN TAX POSITIONS. THE FOUNDATION'S FEDERAL RETURN OF ORGANIZATIONS EXEMPT FROM INCOME TAX (FORM 990) FOR 2015, 2016, AND 2017 IS SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THE THREE YEARS AFTER IT IS FILED. PART XI, LINE 2D - OTHER ADJUSTMENTS: SUPPORT FOUNDATIONS REVENUE: 51,173,983. CHANGE IN SPLIT INTEREST TRUST: 964,574. INTERFUND GIFTS MOVED FROM REVENUES: -113,500. OTHER CHARGES MOVED FROM REVENUES: -43,854. TRANSFER OF GRANT REVENUE TO SUPPORT ORGANIZATION: 50,000. PART XI, LINE 4B - OTHER ADJUSTMENTS: CHANGE IN ENDOWMENT LIABILITY (REVENUE): 20,248,858. INTERCOMPANY ADMIN FEES MOVED FROM EXPENSES 1,240,532. INTERFUND GRANTS: 1,606,758. LOSS ON SALE OF FIXED ASSETS: -340,059. RENT-ACF SUBLEASE MOVED FROM EXPENSES 53,688. SPECIAL EVENT EXP. INCL. IN REVENUE: -620,786. PART XII, LINE 2D - OTHER ADJUSTMENTS: SUPPORT FOUNDATIONS EXPENSES: 14,024,622. INTERFUND GRANTS: -1,606,758. INTERCOMPANY ADMIN FEES MOVED TO REVENUE: -1,240,532. RENT-ACF SUBLEASE MOVED TO REVENUE: -53,688. SPECIAL EVENT EXP. INCL. IN REVENUE: 620,786. LOSS ON SALE OF FIXED ASSETS: 340,059. PRIOR YEAR GRANTS RETURNED -132,138. PART XII, LINE 4B - OTHER ADJUSTMENTS: CHANGE IN ENDOWMENT LIABILITY (EXPENSES): 4,600,043. INTERFUND GIFTS MOVED TO GRANT EXPENSES: 113,500. OTHER CHARGES MOVED TO EXPENSES: 43,854. 1 NORTH AMERICA 0 0 GRANTMAKING 25140 0 0 0 0 0 0 25140 0 25140 NORTH AMERICA GENERAL SUPPORT 15000 NORTH AMERICA GENERAL SUPPORT 5070 NORTH AMERICA GENERAL SUPPORT 5070 3 0 0 0 0 0 0 PART I, LINE 2: ORGANIZATIONS RECEIVING GRANT FUNDING FROM THE ARIZONA COMMUNITY FOUNDATION ARE, IN MAJORITY CASES, REQUIRED TO SUBMIT A FINAL REPORT DESCRIBING THE RESULTS OF THEIR FUNDED PROGRAM OR UPDATE ACF ON THEIR PROGRESS TO DATE. THESE FINAL REPORTS OUTLINE THE RETURN ON INVESTMENT FOR THE GRANTEE, THE DONOR, THE FOUNDATION, THE COMMUNITY AND ANY OTHER STAKEHOLDERS INVOLVED. 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THESE FINAL REPORTS OUTLINE THE RETURN ON INVESTMENT FOR THE GRANTEE, THE DONOR, THE FOUNDATION, THE COMMUNITY AND ANY OTHER STAKEHOLDERS INVOLVED. X X X X 0 0 0 0 0 0 0 1 0 STEVEN G SELEZNOW DIRECTOR/PRESIDENT/CEO 373377 0 57373 0 15224 0 32400 0 11701 0 490075 0 0 0 JEFF SAUTER CFO 179347 0 28963 0 0 0 11759 0 17627 0 237696 0 0 0 JACQUELINE R ALLING CHIEF PHILANTHROPIC SVCS. 171133 0 28963 0 0 0 23518 0 33081 0 256695 0 0 0 GARY DOKES CHIEF INVESTMENT OFFICER 190171 0 29125 0 0 0 8606 0 1501 0 229403 0 0 0 ELISA DE LA VARA SR DR. OF PHILANTHROPIC SVCS-COMM IN 169799 0 25500 0 0 0 10500 0 9787 0 215586 0 0 0 JAMES HENSLEY DIRECTOR OF DORRANCE PROG. 199562 0 40000 0 0 0 24360 0 7297 0 271219 0 0 0 KIMBERLY KUR SR DR. OF PHILANTHROPIIC SRVS 127062 0 12500 0 0 0 17661 0 21888 0 179111 0 0 0 PART I, LINE 7 THE BONUSES FOR THE EXECUTIVE TEAM ARE BASED ON TEAM GOALS (50%) AND INDIVIDUAL GOALS (50%) WHICH ARE DEVELOPED TO ALIGN WITH THE OVERALL ORGANIZATIONAL GOALS. THE MAXIMUM BONUSES ARE DETERMINED DURING THE BUDGET PROCESS AND APPROVED BY THE FINANCE/AUDIT/BUDGET COMMITTEE. BONUSES ARE ONLY PAID ON THE GOALS MET, AND ARE PRO-RATED BASED ON THE GOALS THAT WERE SUCCESSFULLY ACHIEVED. X 1 1 FAIR VALUE X 136 16339790 MARKET PRICE X 3 299968 MARKET PRICE X 4 3485817 MARKET PRICE X 1 960000 FAIR VALUE X 7 2063000 FAIR VALUE 17 0 1 1 PART I, LINE 32B: THE ORGANIZATION'S CUSTODIAL BANK SELLS ALL MARKETABLE SECURITIES THAT ARE DONATED AFTER RECEIVING SPECIFIC DIRECTIONS. THE ORGANIZATION HAS A NEGOTIATED COMMISSION RATE WHICH APPLIES TO ALL OF THE SALES. FOR ALL OTHER ASSETS THE ORGANIZATION SELLS, THEY RETAIN THE APPROPRIATE SERVICE PROVIDER (REAL ESTATE BROKER, LEGAL COUNSEL, ETC.) AS NEEDED. 990, PART III, LINE 1 ORGANIZATION'S MISSION VALUES: EXCEPTIONAL SERVICE: WE SERVE AND AMAZE OUR CLIENTS, NURTURING LIFELONG RELATIONSHIPS THAT SPAN THE GENERATIONS. STEWARDSHIP: WE SAFEGUARD DONOR INTENT IN PERPETUITY, ENSURING THE RESOURCES ENTRUSTED TO US ARE PROTECTED AND INVESTED IN POSITIVE, SUSTAINABLE OUTCOMES FOR OUR COMMUNITIES. INTEGRITY: WE WORK TO DESERVE THE TRUST OF THOSE WE SERVE BY OPERATING ETHICALLY AND TRANSPARENTLY, HONORING OUR COMMITMENTS, AND SHOWING COURTESY AND RESPECT IN ALL ASPECTS OF OUR WORK. INNOVATION: WE DEMONSTRATE AND WELCOME CREATIVITY, RESOURCEFULNESS AND INGENUITY. WE INVITE AND ENCOURAGE NEW IDEAS, PIONEERING PRACTICES, AND INVENTIVE METHODS FOR ACHIEVING COMMUNITY GOOD. NIMBLENESS: WE ARE FLEXIBLE, RESPONSIVE, OPEN TO CREATIVE STRATEGIES AND ABLE TO TAKE PROMPT ACTION. INCLUSION: OUR STRENGTH IS FOUND IN OUR DIFFERENCES. WE BELIEVE DIVERSE VOICES, ENGAGEMENT AND PARTICIPATION ARE ESSENTIAL TO BUILDING AND SUSTAINING THRIVING COMMUNITIES. COLLABORATION: WE BELIEVE IN THE TRANSFORMATIVE POWER OF PARTNERSHIPS AROUND SHARED PASSIONS AND OBJECTIVES. WE ENCOURAGE AND CELEBRATE TEAMWORK, POOLING OF RESOURCES, OPEN COMMUNICATION AND TRUST. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS NONVOTING MEMBERS AUTHORIZED BY RESOLUTION OF THE BOARD OF DIRECTORS. MEMBERSHIP IN THE ORGANIZATION IS HONORARY ONLY AND DOES NOT CARRY WITH IT ANY RIGHTS OR PRIVILEGES WITH RESPECT TO THE ORGANIZATION, EXCEPT THE RIGHT TO RECEIVE NOTICE OF AND ATTEND THE ANNUAL MEETING OF THE MEMBERSHIP WHICH IS HELD ON A DATE SELECTED BY THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B ONCE THE ORGANIZATION HAS RECEIVED A DRAFT OF THE FORM 990, THE CHIEF FINANCIAL OFFICER WILL FORWARD THE DRAFT TO THE FOLLOWING REPRESENTATIVES OF THE ORGANIZATION: 1) EACH MEMBER OF THE AUDIT AND COMPLIANCE COMMITTEE 2) THE CHAIR OF THE AUDIT COMMITTEE AND 3) THE CHIEF EXECUTIVE OFFICER. THESE REPRESENTATIVES WILL REVIEW THE 990 AND NOTIFY THE CFO OF ANY SUGGESTED REVISIONS. THE CFO WILL COMPILE ALL SUGGESTED REVISIONS AND PRESENT THEM TO THE ACCOUNTANT. THE ACCOUNTANT REVISES THE FORM 990, TO THE EXTENT DEEMED APPROPRIATE IN THEIR PROFESSIONAL JUDGMENT, AND SUBMIT IT IN FINAL FORM TO THE CFO, THE CHAIR OF THE AUDIT COMMITTE, AND THE CEO FOR APPROVAL AND SIGNATURE BY AN AUTHORIZED REPRESENTATIVE OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED AND APPROVED ANNUALLY BY THE BOARD OF DIRECTORS OF THE ARIZONA COMMUNITY FOUNDATION (ACF) AND THE BOARDS OF ALL OF ACF'S SUPPORTING ORGANIZATIONS. IN ADDITION, ALL BOARD MEMBERS AND STAFF OF ACF SIGN AND ACKNOWLEDGE THEY HAVE READ THE CONFLICT OF INTEREST POLICY, AGREE TO ABIDE BY IT AND ARE ASKED TO IDENTIFY ANY POTENTIAL CONFLICTS THEY MAY HAVE. THESE ACKNOWLEDGEMENTS ARE REVIEWED BY THE HUMAN RESOURCES STAFF. SHOULD ANY POTENTIAL CONFLICTS OF INTEREST ARISE, THEY ARE REFERRED TO THE ACF AUDIT AND COMPLIANCE COMMITTEE. THIS COMMITTEE MAY INVESTIGATE THE SITUATION BY GATHERING ALL MATERIAL FACTS AND ASK THE INDIVIDUAL TO MAKE A PRESENTATION TO THE COMMITTEE. SHOULD THE INVESTIGATION FIND THAT A CONFLICT OF INTEREST EXISTS AND THE INDIVIDUAL DID NOT DISCLOSE THE CONFLICT, APPROPRIATE DISCIPLINARY MEASURES ARE IMPLEMENTED. THE COMMITTEE IS TO REPORT TO THE BOARD THE RESULTS OF THEIR INVESTIGATION AND ANY ACTIONS TAKEN. FORM 990, PART VI, SECTION B, LINE 15 THE OBJECTIVE OF THE FOUNDATION'S EXECUTIVE COMPENSATION POLICY IS TO ATTRACT, RETAIN, MOTIVATE AND REWARD EXECUTIVE OFFICERS WHO CONTRIBUTE TO THE FOUNDATION'S SUCCESS IN FULFILLING ITS MISSION. ACCORDINGLY, THE FOUNDATION CONSIDERS THE FOLLOWING IN SETTING EXECUTIVE COMPENSATION: 1) THE FOUNDATION COMPENSATES EXECUTIVES AND STAFF FOR PERFORMANCE, SKILLS AND COMPETENCIES, DEVELOPMENT AND GROWTH, AND EFFECTIVE VISIBLE COMMITMENT TO THE FOUNDATION. 2) THE FOUNDATION'S COMPENSATION SYSTEM MAY INCLUDE A MIXTURE OF BASE SALARY AND RETIREMENT BENEFITS AS WELL AS MEDICAL, DENTAL AND OTHER INSURANCE BENEFITS. 3) THE FOUNDATION'S COMPENSATION SYSTEM INCLUDES PERFORMANCE REVIEWS AND ADJUSTMENTS TO BASE SALARY AND BENEFITS BASED ON CHANGES IN THE MARKETPLACE (SUBJECT TO THE FOUNDATION'S FINANCIAL CONSTRAINTS). ADJUSTMENTS TO INDIVIDUAL BASE PAY WILL BE BASED ON JOB PERFORMANCE INCLUDING GROWTH IN MASTERING JOB COMPETENCIES. ALL ADJUSTMENTS TO PAY WILL BE CONSISTENT WITH PRACTICE IN A COMPARABLE MARKETPLACE. 4) THE FOUNDATION'S COMPENSATION SYSTEM IS LINKED TO A STRUCTURED PERFORMANCE MANAGEMENT SYSTEM, WITH IDENTIFIABLE GROWTH AND DEVELOPMENT AS WELL AS PROFESSIONAL ACHIEVEMENT GOALS. THE GOALS WILL BE ACCOMPANIED BY IDENTIFICATION OF EFFECTIVE BENCHMARKS FOR MEASURING SUCCESS. 5) THE FOUNDATION'S COMPENSATION SYSTEM SHOULD BE MARKET COMPETITIVE. GENERALLY, THE FOUNDATION BASES COMPENSATION AS CLOSE AS POSSIBLE TO THE APPROPRIATE EXTERNAL MARKETPLACE. 6) IN SETTING COMPENSATION, THE FOUNDATION MAY PERIODICALLY RETAIN THE SERVICES OF A PROFESSIONAL COMPENSATION CONSULTANT TO ASSESS THE REASONABLENESS OF THE COMPENSATION THAT WILL BE PAID TO THE FOUNDATION'S EXECUTIVES IN LIGHT OF THEIR DUTIES, QUALIFICATIONS, PERFORMANCE AND TIME COMMITMENT AND THE REASONABLENESS OF THE RANGES OF COMPENSATION THAT WILL BE PAID TO ALL EMPLOYEES. IN SETTING DIRECTOR AND EXECUTIVE COMPENSATION, THE FOUNDATION FOLLOWS THE FOLLOWING PROCEDURES: 1) OBTAIN ADVANCE APPROVAL - THE BOARD OF DIRECTORS, THE COMPENSATION COMMITTEE, OR A SIMILAR COMMITTEE COMPRISED OF MEMBERS OF THE BOARD OF DIRECTORS (EACH, AN "AUTHORIZED BODY") WILL REVIEW AND APPROVE IN ADVANCE THE COMPENSATION ARRANGEMENTS OF ANY DIRECTOR OR EXECUTIVE OF THE FOUNDATION. NO MEMBER OF THE AUTHORIZED BODY MAY PARTICIPATE IN APPROVING THE COMPENSATION ARRANGEMENT IF SUCH PERSON HAS A CONFLICT OF INTEREST, AS DETERMINED IN ACCORDANCE WITH THE FOUNDATION'S CONFLICT OF INTEREST POLICY. 2) USE APPROPRIATE COMPARABILITY DATA - THE AUTHORIZED BODY WILL RELY UPON APPROPRIATE DATA AS TO COMPARABILITY PRIOR TO MAKING ITS DETERMINATION. RELEVANT COMPARABILITY DATA INCLUDES, BUT IS NOT LIMITED TO, COMPENSATION LEVELS PAID BY SIMILARLY SITUATED ORGANIZATIONS, BOTH TAXABLE AND TAX-EXEMPT, FOR FUNCTIONALLY COMPARABLE POSITIONS; THE AVAILABILITY OF SIMILAR SERVICES IN THE GEOGRAPHIC AREA OF THE FOUNDATION; CURRENT COMPENSATION SURVEYS COMPILED BY INDEPENDENT FIRMS; AND ACTUAL WRITTEN OFFERS FROM SIMILAR INSTITUTIONS COMPETING FOR THE SERVICES OF THE DIRECTOR OR EXECUTIVE WHOSE COMPENSATION THE AUTHORIZED BODY IS DISCUSSING. 3) DOCUMENT THE DECISION - THE AUTHORIZED BODY WILL DOCUMENT THE BASIS FOR ITS DETERMINATION CONCURRENTLY WITH MAKING THE DETERMINATION. AT A MINIMUM, THE RECORD OF THE COMPENSATION DECISION WILL INCLUDE: A) THE TERMS OF THE COMPENSATION ARRANGEMENT; B) THE DATE THE COMPENSATION ARRANGEMENT WAS APPROVED; C) THE MEMBERS OF THE AUTHORIZED BODY WHO PARTICIPATED IN DISCUSSING THE COMPENSATION ARRANGEMENT AND THE MEMBERS WHO ULTIMATELY VOTED ON THE ARRANGEMENT; D) THE COMPARABILITY DATA RELIED UPON BY THE AUTHORIZED BODY AND HOW SUCH DATA WAS OBTAINED; AND E) ANY ACTIONS TAKEN WITH RESPECT TO DETERMINATION OF THE COMPENSATION ARRANGEMENT BY ANY MEMBER OF THE AUTHORIZED BODY WHO HAD A CONFLICT OF INTEREST WITH RESPECT TO THE DECISION. IF THE AUTHORIZED BODY DETERMINES THAT REASONABLE COMPENSATION FOR A DIRECTOR OR EXECUTIVE IS HIGHER OR LOWER THAN THE RANGE OF COMPARABILITY DATA REVIEWED, THE AUTHORIZED BODY WILL DOCUMENT THE BASIS FOR ITS DECISION. THE AUTHORIZED BODY WILL DOCUMENT ITS DECISION BY THE LATER OF ITS NEXT MEETING OR 60 DAYS AFTER THE FINAL ACTION BY THE AUTHORIZED BODY ON THE MATTER. WITHIN A REASONABLE TIME THEREAFTER, THE AUTHORIZED BODY WILL REVIEW AND APPROVE THE RECORD AS REASONABLE, ACCURATE AND COMPLETE. THE LAST COMPENSATION REVIEW WAS PERFORMED IN JUNE OF 2018 FOR ALL OTHER EMPLOYEES AND FOR THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE ARIZONA COMMUNITY FOUNDATION POSTS ITS ANNUAL (AUDITED) FINANCIAL STATEMENTS ON THEIR WEBSITE. IN ADDITION, THE ORGANIZATION PROVIDES A PAPER COPY OF THE FINANCIAL STATEMENTS UPON REQUEST. THE ORGANIZATION DOES NOT PROACTIVELY PROVIDE COPIES OF ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY TO THE PUBLIC. HOWEVER, IF THE ORGANIZATION RECEIVES A REQUEST FROM A DONOR OR POTENTIAL DONOR, THE ORGANIZATION WILL CONSIDER THE REQUEST AND THE CIRCUMSTANCES SURROUNDING THE REQUEST IN DETERMINING WHETHER TO PROVIDE THE DOCUMENTS. FORM 990, PART XI, LINE 9: NET CHANGE IN ENDOWMENT LIABILITY -15,648,815. NET CHANGE IN SPLIT INTEREST TRUSTS 964,574. PRIOR YEAR GRANTS RETURNED 132,138. 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