2018-08-17T11:19:56-05:00 2017-12-31 381357951 PLANTE & MORAN PLLC 10 SOUTH RIVERSIDE PLAZA 9TH FLOOR CHICAGO IL 60606 990 2017-01-01 382746841 SME EDUCATION FOUNDATION SMEE 3134253000 1000 TOWN CENTER NO 1910 SOUTHFIELD MI 48075 JEFFREY M KRAUSE DIRECTOR AND CEO OF SME 3134253000 2018-08-10 1 DAVID LOWENTHAL P00378651 3122071040 2018-08-10 2017 2022-09-23 18:48:47Z X JEFFREY M KRAUSE 1000 TOWN CENTER NO 1910 SOUTHFIELD MI 48075 4117268 0 X WWW.SMEEF.ORG X 1987 MI THE SME EDUCATION FOUNDATION MISSION IS TO INSPIRE, PREPARE, AND SUPPORT THE NEXT GENERATION OF MANUFACTURING ENGINEERS AND TECHNOLOGISTS. 13 13 6 350 0 0 2518119 2561488 62913 14370 765203 1234236 22910 22120 3369145 3832214 1395607 1570030 0 0 666288 748563 3153 17438 358810 442327 598662 2507375 2934693 861770 897521 20436571 24150958 1109817 1398970 19326754 22751988 X A. TO OPERATE AND ACT EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSE OF THE SOCIETY OF MANUFACTURING ENGINEERS, A TAX-EXEMPT CHARITABLE ORGANIZATION WHICH IS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, (THE "CODE"), AND WHICH IS NOT A PRIVATE FOUNDATION, AS SUCH TERM IS DEFINED IN CODE SECTION 509, PURSUANT TO CODE SECTION 509(A)(2). B. THE SME EDUCATION FOUNDATION'S MISSION IS TO PREPARE THE FUTURE ENGINEERS AND TECHNOLOGISTS FOR MANUFACTURING CAREERS THROUGH OUTREACH PROGRAMS TO ENRICH STUDENTS TO STUDY SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS (STEM) IN ALIGNMENT WITH SME. C. TO OPERATE AND ACT EXCLUSIVELY FOR CHARITABLE AND EDUCATIONAL PURPOSES AS SUCH TERMS ARE USED IN CODE SECTION 501(C)(3). D. TO RECEIVE AND ADMINISTER ASSETS EXCLUSIVELY FOR CHARITABLE AND EDUCATIONAL PURPOSES AS SUCH TERMS ARE USED IN CODE SECTION 501(C)(3). 0 0 1428544 1257323 36490 SCHOLARSHIPS: IN 2017 THE SME EDUCATION FOUDATION AWARDED ACADEMIC SCHOLARSHIPS TO 520 GRADUATING HIGH SCHOOL SENIORS, CURRENT UNDERGRADUATES AND MASTERS OR DOCTORAL DEGREE STUDENTS PURSUING POST-SECONDARY DEGREES IN MANUFACTURING ENGINEERING, MANUFACTURING TECHNOLOGY, AND RELATED FIELDS. TOTAL SCHOLARSHIP AWARDS DISTRIBUTED TO 160 HIGHER EDUCATIONAL INSTITUTIONS EQUALED $1,257,323. 497904 304207 EDUCATIONAL PROGRAMS: THE PRIME (PARTNERHSIP RESPONSE IN MANUFACTURING EDUCATION) PROGRAM PROVIDES HIGH SCHOOL STUDENTS WITH HANDS-ON TRAINING AND MANUFACTURING SKILLS THROUGH ACCESS TO ADVANCED TECHNOLOGIES, INDUSTRY-LED CURRICULUM, JOB SHADOWING AND MENTORING PROGRAMS. CASH, EQUIPMENT AND CURRICULUM TOTALING $304,207 WAS DONATED TO SCHOOLS IN THE PRIME NETWORK IN 2017. 15377 8500 EDUCATIONAL EVENTS AND ACTIVITIES: PROJECTS INCLUDED SPONSORSHIP OF GIRL'S STEM CAMP AND SME STUDENT CHAPTER ASSISTANCE. 1941825 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 0 1 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 4 0 1 6 1 0 0 0 0 0 0 0 0 0 0 X 13 13 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 CA IL MI NJ NY OH PA WA WI MN AL X JULIE DUFF 3134253000 1000 TOWN CENTER NO 1910 SOUTHFIELD MI 48075 KATHY BURNHAM PRESIDENT 4.00 0.00 X X 0 0 0 SUE SHIMOYAMA VICE PRESIDENT/SECRETARY 2.00 0.00 X X 0 0 0 PETER F MACKIE TREASURER/CHAIR OF FINANCE 2.00 0.00 X X 0 0 0 ASHOK AGRAWAL DIRECTOR 2.00 0.00 X 0 0 0 RAY BETZ DIRECTOR 2.00 0.00 X 0 0 0 ELIZABETH KAUTZMAN DIRECTOR 2.00 0.00 X 0 0 0 GWENDOLYN MALONE DIRECTOR 2.00 0.00 X 0 0 0 KARLA MIDDLEBROOKS DIRECTOR 2.00 0.00 X 0 0 0 JOHN MILLER DIRECTOR 2.00 0.00 X 0 0 0 IRVING PRESSLEY MCPHAIL DIRECTOR 2.00 0.00 X 0 0 0 TED PEACHEE DIRECTOR THRU APRIL 2017 2.00 0.00 X 0 0 0 BRIAN RUESTOW DIRECTOR 2.00 0.00 X 0 0 0 PAMELA RUSCHAU DIRECTOR 2.00 0.00 X 0 0 0 MIKE SCHMIDT DIRECTOR 2.00 0.00 X 0 0 0 JEFFREY M KRAUSE EXECUTIVE DIRECTOR & CEO 4.00 46.00 X 35421 407345 42707 JUILE DUFF VP, FINANCE 4.00 46.00 X 15152 174253 16659 BRIAN GLOWIAK VP, SME EDUCATION FOUNDATION 50.00 0.00 X 192503 0 22583 JOSH CRAMER EDUCATIONAL PROGRAMS DIRECTOR 40.00 0.00 X 117931 0 3605 361007 581598 85554 2 0 1 0 0 569397 1992091 40528 2561488 SCHOLARSHIP ADMINISTRATION REVENU 561000 14370 14370 14370 387061 387061 1132229 285054 847175 847175 847175 RETURNED GRANTS AND SCHOLARSHIPS 561000 22120 22120 22120 3832214 36490 0 1234236 312707 312707 1255323 1255323 2000 2000 238457 37691 125383 75383 429190 206880 77922 144388 13937 7767 1071 5099 26182 8516 3790 13876 40797 17068 9696 14033 7419 105 2754 4560 20159 20159 17438 17438 28502 28502 48798 2960 3402 42436 26654 1878 23020 1756 56840 44495 12345 86503 36258 24280 25965 21842 20814 1028 278258 278258 382 382 STAFF RECUITMENT 9600 9600 STUDENT SUPPLIES & CURR 7000 7000 DUES & SUBSCRIPTIONS 2966 100 2866 STATE GOVERNMENT FEES 2562 2562 1177 1177 2934693 1941825 634058 358810 663000 1375488 146827 180000 308335 7425 8625 71420 71420 382 0 19618937 22278510 20436571 24150958 929 44839 108545 117500 125000 132250 196825 256899 678518 847482 1109817 1398970 X 4747897 5580328 7735883 10239442 6842974 6932218 19326754 22751988 20436571 24150958 X 897521 2557566 -29853 X 0 1 X 1 0 X 1846005 1284471 1680978 2518119 2561488 9891061 1846005 1284471 1680978 2518119 2561488 9891061 4580386 5310675 240810 329395 287706 324158 387061 1569130 22910 22120 45030 11505221 215384 0.46160 0.45460 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 16437845 134472 3246844 514219 1345415 17959527 15867363 400071 1073961 467276 436274 16437845 17984841 102835 -215314 499199 1505800 15867363 17944029 42191 903519 904898 17984841 19074837 50776 2998031 716716 3462899 17944029 0.24200 0.38600 0.37200 0 0 71420 71420 0 0 ANNUITY OBLIGATIONS 216098 DUE TO SME 631384 847482 6383398 2557566 2557566 3825832 28502 -22120 6382 3832214 2913924 7733 7733 2906191 28502 28502 2934693 PART V, LINE 4: SME-EF CLASSIFIES DONATIONS AS PERMANENTLY RESTRICTED ENDOWMENT FUNDS IN THOSE INSTANCES IN WHICH THE DONOR HAS STIPULATED THAT THE PRINCIPAL IS TO BE MAINTAINED IN PERPETUITY FOR THE BENEFIT OF SME-EF. SME-EF IS ENTITLED TO THE EARNINGS OF SUCH FUNDS FOR OPERATING PURPOSES OR SUCH OTHER PURPOSE SPECIFIED BY THE DONOR. EARNINGS FROM PERMANENTLY RESTRICTED ENDOWMENT FUNDS ARE TEMPORARILY RESTRICTED UNTIL USED FOR THE PURPOSE INTENDED BY THE DONOR, PRIMARILY TO SUPPORT STEM RELATED YOUTH PROGRAMS AND SCHOLARSHIPS. THE BOARD OF DIRECTORS HAS DESIGNATED CERTAIN ACCUMULATED UNRESTRICTED EARNINGS OF ENDOWMENT FUNDS AND AMOUNTS FOR WHICH RESTRICTIONS HAVE BEEN MET AS BOARD-DESIGNATED (QUASI) ENDOWMENT FUNDS. PART XI, LINE 2D - OTHER ADJUSTMENTS: RETURNED GRANTS AND SCHOLARSHIPS PART XI, LINE 4B - OTHER ADJUSTMENTS: RETURNED GRANTS AND SCHOLARSHIPS -22,120. PART XII, LINE 2D - OTHER ADJUSTMENTS: REVALUATION OF CHARITABLE GIFT ANNUITY OBLIGATIONS 29,853. RETURNED GRANTS AND SCHOLARSHIPS -22,120. PART IV, LINE 2B ECROW AND CUSTODIAL ACCOUNTS SME EDUCATION FOUNDATION ("SME-EF") SERVED AS AN INTERMEDIARY FOR CERTAIN NON-STEM SCHOLARSHIP PROGRAMS WHEREBY THE SCHOLARSHIP RECIPIENTS WERE SELECTED BY THE DONOR. X X X X X 1 NONPROFIT DEVELOPMENT SOLUTIONS 745 GRAND MARAIS GROSSE POINTE PARK MI 48230 GRANTWRITING 0 340000 16344 325876 340000 16344 325876 CA IL MI MN NJ NY OH PA WA WI AL 1 WADSWORTH CITY SCHOOLS 524 BROAD ST WADSWORTH OH 44281 346002962 GOVERNMENT 14500 93857 FMV MFG. EQUIP/CURRICULUM PRIME SCHOOL SUPPORT EAGLE MOUNTAIN-SAGINAW ISD 1200 OLD DECATUR RD FORT WORTH TX 76179 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT HELENA SCHOOL DISTRICT #1 55 S RODNEY ST HELENA MT 59601 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT LEYDEN HIGH 3400 ROSE ST FRANKLIN PARK IL 60131 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT ROCKLIN UNIFIED SCHOOL DISTRICT 2615 SIERRA MEADOWS DR ROCKLIN CA 95677 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT TRI-RIVERS JOINT VOCATIONAL SCHOOL DISTRICT 2222 MARION-MT GILEAD RD MARION OH 43302 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT HILLSBOROUGH COUNTY SCHOOL DISTRICT OF 901 E KENNEDY BLVD TAMPA FL 33602 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT INDIANA COUNTY TECHNOLOGY CENTER 441 HAMILL RD INDIANA PA 15701 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT NORWALK-LA MIRADA UNIFIED SCHOOL DISTRICT 12820 PIONEER BLVD NORWALK CA 90650 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT JEFFERSON COUNTY PUBLIC SCHOOLS 9600 OLD SIX MILE LN LOUISVILLE KY 40299 346002962 GOVERNMENT 10000 PRIME SCHOOL SUPPORT GRAND VALLEY STATE UNIVERSITY 1 CAMPUS DR ALLENDALE MI 49401 381684280 GOVERNMENT 8500 MIDDLE SCHOOL STEM CAMP SUPPORT CENTRAL COLUMBIA SCHOOL DISTRICT 4777 OLD BERWICK RD BLOOMSBURG PA 17815 231659549 GOVERNMENT 8500 FMV MFG. CURRICULUM PRIME SCHOOL SUPPORT GRAND HAVEN AREA PUBLIC SCHOOLS 1415 S BEECHTREE ST GRAND HAVEN MI 49417 386003290 GOVERNMENT 11250 FMV MFG. CURRICULUM PRIME SCHOOL SUPPORT RACINE UNIFIED SCHOOL DISTRICT 3901 MOUNT PLEASANT ST RACINE WI 53404 396031430 GOVERNMENT 45150 FMV MFG. EQUIP/CURRICULUM PRIME SCHOOL SUPPORT ANNA LOCAL SCHOOL DISTRICT 1 MCRILL WAY ANNA OH 45302 346400050 GOVERNMENT 37700 FMV MFG. EQUIP/CURRICULUM PRIME SCHOOL SUPPORT 15 COLLEGE AND TECHNICAL SCHOOL SCHOLARSHIPS 519 1255323 PART I, LINE 2: SITES WITHIN OUR PRIME NETWORK THAT RECEIVE FUNDING FROM SME-EF ARE HIGHLY ENGAGED WITH BOTH SME-EF STAFF AND THEIR LOCAL SUPPORTING INDUSTRY PARTNER. ALL PRIME DESIGNATED SITES COMPLETE YEAR END REPORTS THAT DETAIL FUNDING ALLOCATIONS AND EXPENDITURES. AN SME-EF STAFF MEMBER OR SME VOLUNTEER VISITS OR CONSULTS WITH EACH PRIME SCHOOL AT LEAST ANNUALLY TO MONITOR AND SUPPORT THEIR PROGRAM. 0 0 0 1 1 0 0 0 0 JEFFREY M KRAUSE EXECUTIVE DIRECTOR & CEO 27185 312630 7590 87284 646 7431 1545 17763 1872 21527 38838 446635 0 0 JUILE DUFF VP, FINANCE 11511 132376 3616 41587 25 290 701 8057 632 7269 16485 189579 0 0 BRIAN GLOWIAK VP, SME EDUCATION FOUNDATION 166137 0 25737 0 629 0 3950 0 18633 0 215086 0 0 0 PART I, LINE 3 SOCIETY OF MANUFACTURING ENGINEERS ("SME"), THE PARENT ORGANIZATION OF SME-EF, USES THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S VICE PRESIDENT: 1) RECOMMENDATION OF THE SME CEO 2) BENCHMARK STUDIES BY AN INDEPENDENT COMPENSATION CONSULTANT 3) FORM 990 OF OTHER SIMILAR ORGANIZATIONS 4) PRE-ESTABLISHED JOB OBJECTIVES IN ACCORDANCE WITH THE SME EXECUTIVE INCENTIVE PLAN 5) APPROVAL BY THE SME EXECUTIVE COMPENSATION COMMITTEE PART I, LINE 5 SME, A RELATED ORGANIZATION, PAID BONUSES TO ITS MANAGEMENT, INCLUDING THE SME EDUCATION FOUNDATION VICE-PRESIDENT. THE BONUSES WERE PARTLY BASED ON ACHIEVEMENT OF SPECIFIC PROJECT MANAGEMENT GOALS AND PARTLY UPON THE REVENUES OF SME. NO PORTION WAS CONTINGENT UPON THE NET EARNINGS OF SME-EF OR ANY RELATED ORGANIZATION. X 2 40528 FMV 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS RECEIVED IN SCHEDULE M, PART I COLUMN (B). FORM 990, PART III, LINE 1, DESCRIPTION OF ORGANIZATION MISSION (CONTINUED) E. TO CONDUCT ANY AND ALL SUCH ACTIVITIES AND EXERCISE ANY AND ALL SUCH POWERS AS ARE NECESSARY OR DESIRABLE TO THE ACHIEVEMENT OF THE FOREGOING AND FURTHERANCE OF THE PURPOSES OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 6 SME IS THE SOLE SHAREHOLDER OF SME EDUCATION FOUNDATION. FORM 990, PART VI, SECTION A, LINE 7A ALL ELECTED DIRECTORS ARE APPROVED BY THE SME EXECUTIVE COMPENSATION COMMITTEE AND SERVE AT THE PLEASURE OF THE SHAREHOLDER, SME. FORM 990, PART VI, SECTION A, LINE 7B THE SME-EF BYLAWS ARE REVIEWED AND APPROVED BY THE SME EXECUTIVE COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION B, LINE 11B SME AND SME-EF UTILIZE AN INDEPENDENT ACCOUNTING FIRM TO COMPLETE THE FORM 990 AND RELATED SCHEDULES. A DETAILED REVIEW OF THE FEDERAL FORM 990 WAS PERFORMED BY THE VICE PRESIDENT, FINANCE, AND THE CHIEF EXECUTIVE OFFICER OF SME AND SME-EF. WHEN THE RETURN WAS FINALIZED, IT WAS PRESENTED TO THE EXECUTIVE DIRECTOR/CEO FOR DISCUSSION AND REVIEW, WHERE ALL COMMENTS WERE ADDRESSED. THE RETURN WAS THEN PRESENTED TO THE SME/SME-EF'S COMBINED AUDIT COMMITTEE OF THE BOARD OF DIRECTORS FOR APPROVAL, AS DELEGATED PER THE GOVERNING BODIES. THE SIGNED RETURN WAS MADE AVAILABLE TO ALL BOARD MEMBERS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES SIGN A DISCLOSURE FORM WHEN THEY ARE HIRED AND ARE REMINDED OF THE POLICY ANNUALLY. IF A CONFLICT ARISES, THEY ARE EVALUATED BY THE VICE PRESIDENT, HUMAN RESOURCES AND THE SME EXECUTIVE DIRECTOR/CEO. CORRECTIVE ACTION IS TAKEN IF REQUIRED. FORM 990, PART VI, SECTION B, LINE 15 ALL SME-EF STAFF ARE EMPLOYED BY SME, WHICH ALSO PROVIDES ACCESS TO EMPLOYEE BENEFIT PLANS. SME-EF REIMBURSES SME FOR ITS EMPLOYEE COSTS. BENCHMARK STUDIES HAVE BEEN PERFORMED WHEN DETERMINING THE COMPENSATION TO BE PAID TO THE SME CEO/EXECUTIVE DIRECTOR AND ALL TOP MANAGEMENT. A THIRD PARTY PERFORMED AN INDEPENDENT ASSESSMENT USING MULTIPLE LOCAL AND NATIONAL SURVEYS. TARGET COMPENSATION IS BASED ON THESE BENCHMARK STUDIES. THE EXECUTIVE COMPENSATION COMMITTEE CONDUCTS AN ANNUAL PERFORMANCE REVIEW FOR THE CEO/EXECUTIVE DIRECTOR AGAINST PREVIOUSLY SET OBJECTIVES. THE CEO/EXECUTIVE DIRECTOR CONDUCTS AN ANNUAL PERFORMANCE REVIEW OF ALL TOP MANAGEMENT AGAINST PREVIOUSLY SET OBJECTIVES. MERIT INCREASES ARE AWARDED ANNUALLY BY THE EXECUTIVE COMPENSATION COMMITTEE FOR THE CEO/EXECUTIVE DIRECTOR AND ALL TOP MANAGEMENT, BASED ON PERFORMANCE REVIEWS. EXECUTIVE INCENTIVES ARE AWARDED BASED ON THE EXECUTIVE INCENTIVE PLAN. FORM 990, PART VI, SECTION C, LINE 19 SME-EF MAKES ITS CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. ELECTRONIC AND PRINTED COPIES ARE BOTH AVAILABLE. FORM 990, PART XI, LINE 9: REVALUATION OF CHARITABLE GIFY ANNUITY OBLIGATIONS -29,853. FORM 990, PART V, LINE 2A: NUMBER OF EMPLOYEES ON FORM W-3 THE NUMBER OF EMPLOYEES REPORTED (6) CORRESPONDS TO DEDICATED SME-EF EMPLOYEES, ALTHOUGH ALL WAGE/W-3 REPORTING IS SOLELY THROUGH SME, THE COMMON PAYMASTER. ALL SME-EF STAFF ARE EMPLOYED BY SME, WHICH ALSO PROVIDES ACCESS TO EMPLOYEE BENEFIT PLANS. SME-EF REIMBURSES SME FOR ITS EMPLOYEE COSTS. FORM 990, PART VII, SECTION A AND SCHEDULE J, PART II: ALLOCATION OF COMPENSATION AMONG ORGANIZATION AND RELATED ORG. THE EXECUTIVE DIRECTOR & CEO AND VICE PRESIDENT, FINANCE PROVIDES SERVICES TO BOTH SME-EF AND SOCIETY OF MANUFACTURING ENGINEERS, A RELATED ORGANIZATION WHO ALSO SERVES AS THE COMMON PAYMASTER. ADDITIONALLY, THE VICE PRESIDENT, SME-EF AND EDUCATIONAL PROGRAMS OFFICER PERFORM WORK SOLELY FOR SME-EF, BUT ARE COMPENSATED BY SOCIETY OF MANUFACTURING ENGINEERS. COMPENSATION FOR THESE INDIVIDUALS ON PART VII, SECTION A AND SCHEDULE J, PART II HAS BEEN ALLOCATED BASED OFF THE HOURS OF WORK PERFORMED FOR EACH ORGANIZATION. SOCIETY OF MANUFACTURING ENGINEERS ONE SME DRIVE DEARBORN MI 48128 380298770 EDUCATION MI 501(C)(3) LINE 10 N/A 0 0 0 1 0 1 0 0 0 0 0 0 0 1 1 1 1 0 0 0