2019-05-20T14:48:07-05:00 2018-12-31 560574444 CHERRY BEKAERT LLP 11200 ROCKVILLE PIKE SUITE 400 ROCKVILLE MD 20852 990 2018-01-01 521104476 US NAVY MEMORIAL FOUNDATION USNA 2023800762 701 PENNSYLVANIA AVENUE NW NO 123 WASHINGTON DC 20004 FRANK THORP IV PRESIDENT AND CEO 2023800762 2019-05-20 1 RAYMOND BARBAGALLO P00173692 3015899000 50.76.6.125 2019-05-20 10:14:50 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 94DDB6235122F66DD826A4D5F9933DCE67BAB8F2 2018 2019-02-21 02:37:17Z REAR ADM FRANK THORP IV 701 PENNSYLVANIA AVENUE NW NO 123 WASHINGTON DC 20004 6059624 0 X WWW.NAVYMEMORIAL.ORG X 1977 IL THE US NAVY MEMORIAL'S MISSION IS TO HONOR, RECOGNIZE AND CELEBRATE THE MEN AND WOMEN OF THE SEA SERVICES, AND TO INFORM THE PUBLIC ABOUT THEIR SERVICE. 17 16 34 2 111913 126403 4756840 5099361 601436 559041 25355 36065 -190897 -125401 5192734 5569066 0 0 0 0 1390609 1709146 1129698 1107187 1951598 2649474 2827786 5169781 5644119 22953 -75053 3084833 3181695 940820 1190362 2144013 1991333 X THE NAVY MEMORIAL MISSION IS TO HONOR, RECOGNIZE AND CELEBRATE THE MEN AND WOMEN OF THE SEA SERVICES AND THE IMPORTANT CONTRIBUTIONS MADE BY THEM WHILE SERVING IN THE UNITED STATES NAVY, MARINE CORPS, COAST GUARD AND MERCHANT MARINES. THE NAVY MEMORIAL SERVES TO EDUCATE AND INSPIRE THE AMERICAN PEOPLE ABOUT THE VITAL ROLE THAT THE SEA SERVICES PLAY IN OUR NATIONAL SECURITY AND THE RICH MARITIME HISTORY OF THE UNITED STATES. 1 0 2019741 229165 VISITOR CENTER SERVICES - THE VISITOR CENTER HONORS, RECOGNIZES, AND CELEBRATES AMERICA'S ENDURING MARITIME HERITAGE THROUGH COMMEMORATIVE CEREMONIES, REUNION MEETINGS, REENLISTMENT AND RETIREMENT CEREMONIES, BAND CONCERTS, FILM AND VIDEO PRESENTATIONS, PHOTOGRAPHIC AND DATA COLLECTIONS, SPECIAL EVENTS, AND EXHIBITS.BRIDGEWING CHATS, MOVIES ON THE MEMORIAL AND HONOR FLIGHT PROGRAMS WERE ADDED TO THE PROGRAMS OFFERED UNDER THE VISITOR CENTER SERVICES. THE BRIDGEWING CHAT IS A FORUM FOR JUNIOR OFFICERS AND CIVILIANS TO ENGAGE SENIOR NAVY LEADERSHIP ON CURRENT TOPICS WHICH HAVE A STRATEGIC IMPACT ON THE NAVY. VISITOR CENTER SERVICES (CONT'D) - MOVIES ON THE MEMORIAL IS A NEW PROGRAM THAT IS OFFERED THROUGH THE VISITOR CENTER SERVICES WHERE WE SHOW NAVY-THEMED MOVIES ON THE NAVY MEMORIAL PLAZA EVERY THURSDAY NIGHT FROM MEMORIAL DAY THROUGH LABOR DAY. ANOTHER NEW PROGRAM IS OUR HONOR FLIGHT PROGRAM WHICH IS OUR HIGHEST HONOR TO HOST VETERANS, HEAR THEIR STORIES, RECOGNIZE THEIR SACRIFICES AND CELEBRATE THEIR SERVICE TO OUR COUNTRY. WE ARE ABLE TO DELIVER OUR MISSION IN ITS FULLEST EXTENT, WHEN WE HOST HONOR FLIGHTS. 436147 132108 EDUCATIONAL SERVICES - EDUCATE THE PUBLIC ABOUT THE HERITAGE OF THE UNITED STATES AS A MARITIME NATION AND THE CONTRIBUTIONS OF MEN AND WOMEN IN THE SEA SERVICES THROUGH EXHIBITS, FILM AND VIDEO PRESENTATIONS, LECTURES, TOURS, PUBLICATIONS, AND EVENTS. 361273 1157221 THE FOUNDATION HOSTS SEVERAL SPECIAL EVENTS THROUGHOUT THE YEAR TO SUPPORT ITS PROGRAM ACTIVITIES. THE EVENTS CARRIED OUT DURING 2018 WERE THE LONE SAILOR AWARDS DINNER AND THE GOLF TOURNAMENT. ADDITIONALLY, THE FOUNDATION HAS A ROBUST DIRECT MAILING AND CHARITABLE GIFT ANNUITY VENTURE. 249397 111913 SALES OF MEMORABILIA TO FURTHER EDUCATE THE PUBLIC REGARDING THE ROLE OF THE NAVY AND THE CONTRIBUTIONS OF THOSE WHO HAVE SERVED THE UNITED STATES IN THE NAVY, MARINE CORPS, COAST GUARD, OR MERCHANT MARINE.THE MEMORIAL LOG HONORS THE SERVICE OF MEN AND WOMEN WHO HAVE SERVED IN THE UNITED STATES NAVY, MARINE CORPS, COAST GUARD, OR MERCHANT MARINE THROUGH THE MAINTENANCE OF A PERMANENT REGISTER RECORDING SERVICE INFORMATION AND SERVICE MEMBERS' PHOTOGRAPHS. 249397 111913 3066558 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 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 31 0 1 34 1 1 1 0 0 0 0 1 1 0 0 0 0 0 0 X 17 16 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 AK AL AR AZ CA CO CT DC FL GA HI IL KS KY LA MA MD ME MI MN MO MS NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WI WV NV X X SCOTT MATIRNE 2023800762 701 PENNSYLVANIA AVENUE NW NO 123 WASHINGTON DC 20004 ADM JOHN C HARVEY JR USN RET CHAIRMAN 1.00 X X 0 0 0 VADM CAROL M POTTENGER USN RET VICE CHAIRMAN 1.00 X X 0 0 0 MR JOHN B BURKE TREASURER 1.00 X X 0 0 0 VADM HAROLD D STARLING USN RET SECRETARY 1.00 X X 0 0 0 MR JOHN P BUSH DIRECTOR 1.00 X 0 0 0 VADM ALBERT T CHURCH USN RET DIRECTOR 1.00 X 0 0 0 FLTCM CHARLES CLARKE USN RET DIRECTOR 1/1/18-9/20/18 1.00 X 0 0 0 MR FRANK B GLASSNER DIRECTOR 1.00 X 0 0 0 RADM MARK HEINRICH SC USN RET DIRECTOR 1.00 X 0 0 0 MCPON JAMES L HERDT USN RET DIRECTOR 1.00 X 0 0 0 MR CHARLES L HOPKINS III DIRECTOR 1/1/18-9/20/18 1.00 X 0 0 0 THOMAS R KUHN DIRECTOR 1.00 X 0 0 0 DR J PHILLIP LONDON DIRECTOR 1.00 X 0 0 0 CDR WILLIAM M NEWELL SC USN RET DIRECTOR 1.00 X 0 0 0 MR ROGER SEXAUER DIRECTOR 1/1/18-4/30/18 1.00 X 0 0 0 CAPT JOSEPH L SPRUILL SC USN RET DIRECTOR 1.00 X 0 0 0 MR VICTOR S TRIONE DIRECTOR 1.00 X 0 0 0 RADM EDWARD K WALKER JR SC USN DIRECTOR 1.00 X 0 0 0 RDML FRANK THORP IV USN RET PRESIDENT/CEO 40.00 X X 200000 0 2164 MR SCOTT D MATIRNE DIRECTOR OF FINANCIAL SERV 40.00 X 98325 0 4522 MS BRENDA OSUCH COO 40.00 X 125768 0 4186 MR ROBERT PARKER DIRECTOR OF EXHIBITS, EDUCATION & VISITOR SERVICES 40.00 X 117892 0 3701 541985 0 14573 3 0 1 0 MERKLE INC 7001 COLUMBIA GATEWAY DRIVE COLUMBIA MD 21046 DIRECT MAIL SERVICES AND CONSULTING 1347961 NORTHWINDS ENTERPRISES-DBA IMPACT 4605 BROOKFIELD CORPORATE DR CHANTILLY VA 20157 EXHIBIT CONSULTING, FABRICATION AND INST 198785 HARGROVE INC 1 HARGROVE DRIVE LANHAM MD 20706 EVENT STAGING AND PRODUCTION 124600 MERKLE RESPONSE GROUP 100 JAMISON COURT HAGERSTOWN MD 21740 CAGING AND LOCKBOX SERVICES 104667 4 765936 4333425 5099361 VISITOR CENTER 900099 426933 426933 NAVY CEREMONY 900099 132108 132108 559041 36065 36065 3068 3068 15690 765936 378455 -362765 -362765 229665 112103 117562 117562 AFFINITY PROGRAM 900099 111913 111913 4821 4821 116734 5569066 681424 111913 -323632 434964 348531 58383 28050 1092430 875349 146631 70450 8063 6461 1082 520 65998 52883 8859 4256 107691 86291 14455 6945 122830 42408 80422 29700 10561 19139 1107187 1107187 185355 131388 53967 23211 15272 7939 648009 179323 91811 376875 174945 20094 59450 95401 980288 925392 49406 5490 30507 30474 33 208539 208539 201091 174574 19516 7001 TAXES 32154 27257 4897 0 FOOD & BEVERAGE 66692 63747 2945 EXHIBITS 54832 54832 LIST RENTAL EXPENSE 32902 32902 36731 21721 15000 10 5644119 3066558 625963 1951598 X 1078240 30840 7239 1040161 135029 18451 727455 651385 142492 78481 76812 168607 111313 110846 99632 93121 11392833 10345102 987289 1047731 758088 933270 9325 8531 37398 71272 3084833 3181695 336914 454961 232317 241242 371589 494159 940820 1190362 X 966547 1103831 986631 691282 190835 196220 2144013 1991333 3084833 3181695 -75053 -77627 0 X 0 1 X 1 0 X 5041574 4241526 4430378 4756840 5099361 23569679 5041574 4241526 4430378 4756840 5099361 23569679 347013 23222666 66523 41447 41356 25355 36065 210746 93896 97839 106150 98687 137361 533933 69141 144960 121873 22145 5633 363752 24678110 3637916 0.94100 0.93730 X X 0 195056 6163 4999 196220 212332 19038 36314 195056 192719 19613 212332 192719 192719 192719 192719 0.99000 0.01000 0 0 6586615 6201981 384634 4806218 4143121 663097 1047731 DEFERRED RENT 170426 ANNUITIES PAYABLE 323733 494159 X 5981997 -77627 -77627 6059624 -490558 -490558 5569066 6134677 490558 490558 5644119 0 5644119 PART III, LINE 4: THE ART COLLECTION CONSISTS OF OIL PAINTINGS OF THE EIGHT US PRESIDENTS WHO EITHER SERVED IN THE US NAVY OR WERE SECRETARIES OF THE NAVY. THE FOUNDATION'S EXEMPT PURPOSE IS TO EDUCATE THE PUBLIC ABOUT MARITIME HERITAGE. THESE PAINTINGS SHOW MEN WHO WERE A PART OF THAT MARITIME HERITAGE. PART V, LINE 4: THE FOUNDATION'S ENDOWMENT FUNDS WERE ESTABLISHED FOR THE PURPOSE OF SECURING THE FOUNDATION'S LONG-TERM FINANCIAL VIABILITY AND CONTINUING TO MEET THE NEEDS OF THE FOUNDATION. PART X, LINE 2: THE FOUNDATION IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE FOUNDATION IS NOT CONSIDERED A PRIVATE FOUNDATION. THE FOUNDATION IS REQUIRED TO PAY FEDERAL AND STATE INCOME TAXES ONLY ON UNRELATED BUSINESS INCOME. MANAGEMENT HAS CONCLUDED THAT THE FOUNDATION HAS MAINTAINED ITS TAX EXEMPT STATUS AND THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2018. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES NETTED WITH REVENUES -378,455. COST OF GOOD SOLD NETTED WITH REVENUES -112,103. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES NETTED WITH REVENUES 378,455. COST OF GOOD SOLD NETTED WITH REVENUES 112,103. X X X X 1 MERKLE INC 7001 COLUMBIA GATEWAY DRIVE COLUMBIA MD 21046 DIRECT MAIL PROCESSING 0 2628224 1347961 1280263 DONOR CARE INC 4535 STRAUSSER STREET NORTH CANTON OH 44720 FUNDRAISING 0 8455 7102 1353 2636679 1355063 1281616 AK AL AR AZ CA CO CT DC FL GA HI IL KS KY LA MA MD ME MI MN MO MS NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WI WV NV GOLF TOURNAMENT 81123 79933 1190 20636 29720 3983 LONE SAILOR DINNER 700503 686003 14500 37129 32000 79570 175417 781626 765936 15690 57765 32000 109290 179400 378455 -362765 X X X X X 0 0 0 0 0 0 0 1 0 RDML FRANK THORP IV USN RET PRESIDENT/CEO 187000 0 13000 0 0 0 1403 0 761 0 202164 0 0 0 PART I, LINE 7 THE PRESIDENT RECEIVED A BONUS DURING THE YEAR. THIS COMES AS A RECOMMENDATION FROM THE COMPENSATION COMMITTEE AND IS APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD. FORM 990, PART III, LINE 2 BRIDGEWING CHATS, MOVIES ON THE MEMORIAL AND HONOR FLIGHT PROGRAMS WERE ADDED TO THE PROGRAMS OFFERED UNDER THE VISITOR CENTER SERVICES. THE BRIDGEWING CHAT IS A FORUM FOR JUNIOR OFFICERS AND CIVILIANS TO ENGAGE SENIOR NAVY LEADERSHIP ON CURRENT TOPICS WHICH HAVE A STRATEGIC IMPACT ON THE NAVY. MOVIES ON THE MEMORIAL IS A NEW PROGRAM THAT IS OFFERED THROUGH THE VISITOR CENTER SERVICES WHERE WE SHOW NAVY-THEMED MOVIES ON THE NAVY MEMORIAL PLAZA EVERY THURSDAY NIGHT FROM MEMORIAL DAY THROUGH LABOR DAY. ANOTHER NEW PROGRAM IS OUR HONOR FLIGHT PROGRAM WHICH IS OUR HIGHEST HONOR TO HOST VETERANS, HEAR THEIR STORIES, RECOGNIZE THEIR SACRIFICES AND CELEBRATE THEIR SERVICE TO OUR COUNTRY. WE ARE ABLE TO DELIVER OUR MISSION IN ITS FULLEST EXTENT, WHEN WE HOST HONOR FLIGHTS. FORM 990, PART VI, SECTION B, LINE 11B PRIOR TO THE FILING OF THE FORM 990 WITH THE INTERNAL REVENUE SERVICE, EACH MEMBER OF THE FINANCE AND INVESTMENT COMMITTEE IS GIVEN A COPY FOR THEIR REVIEW. THE GOVERNING BODY HAS THREE DAYS TO REVIEW AND SUBMIT QUESTIONS IT MAY HAVE. ALL QUESTIONS ARE COLLECTIVELY ANSWERED ELECTRONICALLY PRIOR TO SUBMISSION OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, AT THE SPRING MEETING, THE BOARD AND SENIOR STAFF COMPLETE THE CONFLICT OF INTEREST STATEMENT. IT IS EMAILED OR FAXED TO THOSE NOT ATTENDING THE MEETING. WHEN RETURNED, THE STATEMENTS ARE REVIEWED BY SENIOR MANAGEMENT. SENIOR MANAGEMENT IS USUALLY AWARE OF THE CONFLICT PRIOR TO ADDING THE PERSON TO THE BOARD OR TO THE STAFF. BETWEEN SPRING BOARD MEETINGS, THE CHAIRMAN ADVISES THE DIRECTORS AND SENIOR STAFF THAT THEY ARE TO UPDATE THE CONFLICT OF INTEREST STATEMENTS IN THE EVENT OF A POSSIBLE CONFLICT OF INTEREST. IN THE EVENT OF A CONFLICT OF INTEREST, THE INTERESTED PERSON MAY MAKE A PRESENTATION AT THE MEETING, BUT AFTER THE PRESENTATION, HE/SHE SHALL LEAVE THE MEETING DURING THE DISCUSSION OF, AND THE VOTE ON, THE TRANSACTION OR ARRANGEMENT INVOLVING THE POSSIBLE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION PROCESS AT THE UNITED STATES NAVY MEMORIAL FOUNDATION IS DESIGNED TO PROVIDE COMPENSATION THAT IS AT THE MEDIAN LEVEL OF FOUNDATIONS AND ASSOCIATIONS IN THE NATIONAL CAPITAL REGION. THE COMPENSATION COMMITTEE CONSULTED A COMPENSATION EXPERT EXPERIENCED AND KNOWLEDGEABLE CONCERNING THE SURVEYS THAT ARE DONE TO ESTABLISH COMPENSATION AND THE COMPENSATION ENVIRONMENT IN THIS REGION . THE LEADERSHIP TEAM AT THE UNITED STATES NAVY MEMORIAL FOUNDATION, CONSISTING OF THE PRESIDENT AND THE EXECUTIVE VICE PRESIDENT, MEET ANNUALLY TO REVIEW THE POSITION DESCRIPTIONS AND THE LEVEL OF WORK TO ENSURE THAT THE INDIVIDUALS IN THE FOUNDATION ARE EFFECTIVELY BEING COMPARED TO THEIR PEERS IN OTHER ORGANIZATIONS. DURING THE COMPENSATION REVIEW PROCESS, THE WORK PERFORMANCE OF ALL EMPLOYEES ARE REVIEWED, AND A DETERMINATION IS MADE REGARDING ANY INCREASES IN SALARY. ADDITIONALLY, A DECISION IS MADE ABOUT WHETHER ANY RAISE IS POSSIBLE BASED ON THE FOUNDATION'S FINANCIAL CONDITION. ANNUALLY, EMPLOYEES ARE REVIEWED ON THE BASIS OF PERFORMANCE. THE PERFORMANCE REVIEW DOCUMENT IS WRITTEN FOR EACH INDIVIDUAL EVALUATING THEIR PERFORMANCE AGAINST THE GOALS THAT ARE ESTABLISHED FOR THE YEAR. THE COMPENSATION COMMITTEE ALSO REVIEWS THE AGGREGATE SALARY STRUCTURE FOR THE REMAINDER OF THE EMPLOYEES TO ENSURE THAT THE AGGREGATE COMPENSATION APPEARS FAIR AND REASONABLE. THE COMPENSATION FOR THE PRESIDENT IS REVIEWED ANNUALLY BY THE COMPENSATION COMMITTEE OF THE BOARD. THE TOTAL COMPENSATION POOL FOR STAFF IS ALSO REVIEWED ANNUALLY BY THIS COMMITTEE. THE PRESIDENT'S MOST RECENT COMPENSATION REVIEW WAS HELD IN DECEMBER 2018. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC, HOWEVER THE AUDITED FINANCIAL STATEMENTS AND THE 990 ARE AVAILABLE ON THE ORGANIZATION'S WEBSITE. LATE FILED RETURN DUE TO CCH SOFTWARE OUTAGE.