2018-05-15T09:23:32-05:00 2017-12-31 560574444 CHERRY BEKAERT LLP 4600 EAST WEST HWY STE 200 BETHESDA MD 20814 990 2017-01-01 521104476 US NAVY MEMORIAL FOUNDATION USNA 2023800762 701 PENNSYLVANIA AVENUE NW NO 123 WASHINGTON DC 20004 FRANK THORP IV PRESIDENT AND CEO 2023800762 2018-05-14 1 SCOTT DENLINGER P00740770 3019513636 2017 2022-09-23 18:48:47Z REAR ADM FRANK THORP IV 701 PENNSYLVANIA AVENUE NW NO 123 WASHINGTON DC 20004 5804879 0 X WWW.NAVYMEMORIAL.ORG X 1977 IL 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. 23 22 42 2 111902 97687 4305343 4756840 541781 601436 37317 25355 -5971 -190897 4878470 5192734 0 0 0 0 1297688 1390609 1332670 1129698 1785715 2476680 2649474 5107038 5169781 -228568 22953 3316631 3084833 1261017 940820 2055614 2144013 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. 0 0 1968645 0 386746 NAVAL HERITAGE SERVICES - 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. 314544 0 214690 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. 246958 0 515040 THE FOUNDATION HOSTS SEVERAL FUNDRAISING EVENTS THROUGHOUT THE YEAR TO SUPPORT ITS PROGRAM ACTIVITIES. THE EVENTS CARRIED OUT DURING 2017 WERE THE LONE SAILOR AWARDS DINNER AND GOLF TOURNAMENT. ADDITIONALLY, THE FOUNDATION HAS A ROBUST DIRECT MAILING AND CHARITABLE GIFT ANNUITY VENTURE. 290412 223477 290412 223477 2820559 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 48 0 1 42 1 1 1 0 0 0 0 1 1 0 0 0 0 X 23 22 1 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 MR RICHARD C VIE VICE CHAIRMAN 1.00 X X 0 0 0 MR JONATHAN T MACK VICE 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 1.00 X 0 0 0 MS MARTI DEGRAAF CHAIRMAN OF TRUSTEES 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 1.00 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 1.00 X 0 0 0 CAPT JOSEPH L SPRUILL SC USN RET DIRECTOR 1.00 X 0 0 0 VADM JOHN B TOTUSHEK 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 190000 0 761 MS CYNTHIA MCCALIP EVP/COO 40.00 X 77719 0 0 MR SCOTT D MATIRNE DIRECTOR OF FINANCIAL SERVICES 40.00 X 89500 0 4293 357219 0 5054 1 0 1 0 MERKLE INC 7001 COLUMBIA GATEWAY DRIVE COLUMBIA MD 21046 DIRECT MAIL SERVICES AND CONSULTING 1246480 HARGROVE INC 1 HARGROVE DRIVE LANHAM MD 20706 EVENT & EXHIBIT SERVICES 173940 AG PRADA COMPANY INC 12122 CONWAY RD BELTSVILLE MD 20705 ELECTRICAL/HVAC/PLUMBING 161250 TAYLORMADE LLC 9507 FLOWER AVENUE SILVER SPRING MD 20901 EVENT MANAGEMENT SERVICES 117438 TATE AND TRYON 2021 L ST NW WASHINGTON DC 20036 ACCOUNTING CONSULTING SERVICES 108064 6 680620 4076220 4756840 NAVAL HERITAGE SERVICE 900099 386746 386746 EDUCATIONAL SERVICES 900099 214690 214690 601436 25355 25355 4392 4392 63724 680620 502272 -438548 -438548 223477 109873 113604 113604 AFFINITY PROGRAM 900099 111902 111902 OTHER INCOME 900099 17753 17753 129655 5192734 732793 111902 -408801 362272 294891 32463 34918 784744 638784 70321 75639 149236 121479 13373 14384 94357 76807 8455 9095 119675 74237 41165 4273 25200 15632 8668 900 1129698 1129698 216713 109211 107502 100490 40718 59772 530144 169765 81517 278862 183179 35569 50941 96669 1004050 923324 67171 13555 27364 20861 5724 779 39393 39393 169488 155373 10422 3693 TAXES 55816 55816 EXHIBITS 58962 58962 0 0 LIST RENTAL EXPENSE 54330 0 0 54330 BAD DEBTS 24465 0 16965 7500 40205 29130 9427 1648 5169781 2820559 563507 1785715 X 1056960 30338 7363 1019259 251992 135029 670082 727455 419992 142492 90521 76812 113654 111313 93840 99632 11132092 10144803 722768 987289 888220 758088 10118 9325 55444 37398 3316631 3084833 344126 336914 491723 232317 425168 371589 1261017 940820 X 433541 966547 1431238 986631 190835 190835 2055614 2144013 3316631 3084833 22953 65446 0 X 0 1 X 1 0 X 6144066 5041574 4241526 4430378 4756840 24614384 6144066 5041574 4241526 4430378 4756840 24614384 496891 24117493 59947 66523 41447 41356 25355 234628 45038 93896 97839 106150 98687 441610 82417 69141 144960 121873 22145 440536 25731158 3677565 0.93730 0.95100 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 192719 192719 192719 192719 192719 192719 192719 192719 210941 1782 20004 192719 0.99000 0.01000 0 0 6568035 6118596 449439 4564057 4026207 537850 987289 DEFERRED RENT 174140 ANNUITIES PAYABLE 197449 371589 X 5870325 65446 65446 5804879 -612145 -612145 5192734 5781926 612145 612145 5169781 0 5169781 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, 2015. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES NETTED WITH REVENUES -502,272. COST OF GOOD SOLD NETTED WITH REVENUES -109,873. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EXPENSES NETTED WITH REVENUES 502,272. COST OF GOOD SOLD NETTED WITH REVENUES 109,873. X X X X X 1 MERKLE INC 7001 COLUMBIA GATEWAY DRIVE COLUMBIA MD 21046 DIRECT MAIL PROCESSING 0 2891090 1236480 1654610 DONOR CARE INC 4535 STRAUSSER STREET NORTH CANTON OH 44720 FUNDRAISING 0 13212 59590 0 2904302 1296070 1654610 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 177849 117525 60324 38874 29438 43700 LONE SAILOR DINNER 566495 563095 3400 39300 26500 77080 247380 744344 680620 63724 78174 26500 106518 291080 502272 -438548 X X X X X 0 0 0 0 0 0 0 1 0 RDML FRANK THORP IV USN RET PRESIDENT/CEO 182000 0 8000 0 0 0 0 0 761 0 190761 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 VI, SECTION A, LINE 2 JONATHAN MACK AND MARTI DEGRAAF, BOTH DIRECTORS FOR THE FOUNDATION, HAVE A FAMILY RELATIONSHIP. BOTH LEFT THE BOARD IN 2017. FORM 990, PART VI, SECTION B, LINE 11B PRIOR TO FILING THE FORM 990 WITH THE INTERNAL REVENUE SERVICE, EACH MEMBER OF THE BOARD OF DIRECTORS IS GIVEN A COPY FOR THEIR REVIEW. THE GOVERNING BODY HAS THREE DAYS TO REVIEW AND SUBMIT ANY QUESTIONS IT MAY HAVE. THE FINANCE COMMITTEE MEETS AND DISCUSSES ALL QUESTIONS PRIOR TO APPROVAL AND SUBMISSION OF THE FORM 990 TO THE INTERNAL REVENUE SERVICE. 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 2017. 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.