2018-10-11T09:35:49-05:00 2017-12-31 410746749 CLIFTONLARSONALLEN LLP 901 N GLEBE ROAD SUITE 200 ARLINGTON VA 22203 990 2017-01-01 221905062 MARINE CORPS SCHOLARSHIP FOUNDATION INC MARI 7035490060 909 N WASHINGTON STREET NO 400 ALEXANDRIA VA 22314 ROBERT R RUARK PRESIDENT & CHIEF EXECUTIVE OFFICER 7035490060 2018-10-05 1 IVY BECKHAM P01316131 5712279500 2017 2022-09-23 18:48:47Z ROBERT R RUARK 909 N WASHINGTON STREET NO 400 ALEXANDRIA VA 22314 80182519 0 X WWW.MCSF.ORG X 1962 NJ TO PROVIDE POST-SECONDARY EDUCATIONAL SCHOLARSHIPS TO CHILDREN OF MARINES & NAVY CORPSMEN. 30 29 33 362 0 0 18807333 28786241 0 0 4752956 3805613 -2111530 -1925582 21448759 30666272 6850100 7138857 0 0 3302238 2948078 1001583 482795 3307427 2558131 3291347 13712052 13861077 7736707 16805195 88657447 111455358 2051178 2000605 86606269 109454753 X SEE SCHEDULE O.FOUNDED IN 1962, THE MARINE CORPS SCHOLARSHIP FOUNDATION IS THE NATION'S OLDEST AND LARGEST PROVIDER OF NEED-BASED SCHOLARSHIPS TO MILITARY CHILDREN. FOR MORE THAN 55 YEARS, WE'VE BEEN PROVIDING ACCESS TO AFFORDABLE EDUCATION FOR THE CHILDREN OF MARINES AND NAVY CORPSMAN ATTENDING POST-HIGH SCHOOL, UNDER-GRADUATE AND CAREER TECHNICAL EDUCATION PROGRAMS. IN THAT TIME, WE HAVE PROVIDED OVER 40,000 SCHOLARSHIPS VALUED AT OVER $125 MILLION. 0 0 8953534 7138857 SEE SCHEDULE OIN 2017 ALONE, THE MARINE CORPS SCHOLARSHIP FOUNDATION AWARDED $7.3 MILLION TO MORE THAN 2,300 SONS AND DAUGHTERS OF MARINES AND NAVY CORPSMEN IN ALL 50 STATES. THIS CRITICAL SUPPORT COMES AT A TIME WHEN THE RISING COST OF EDUCATION FAR EXCEEDS THE AVERAGE MARINE FAMILY'S INCOME. THE RESULT IS A LANDSCAPE IN WHICH THOUSANDS OF PROMISING YOUNG AMERICANS FIND THEMSELVES PRICED OUT OF THE AMERICAN DREAM THEIR PARENTS SERVED TO DEFEND. IT'S AN UNEVEN BURDEN, AND ONE WE'RE DETERMINED TO CORRECT. WITH THE EAGLE, GLOBE, AND ANCHOR IN OUR LOGO, WE ALWAYS HOLD OURSELVES TO THE HIGHEST STANDARDS OF THE MARINE CORPS. THE RESULT IS AN APPROACH DRIVEN BY DONOR INTENT AND ANCHORED IN OUTCOMES FOR MARINES, THEIR FAMILIES, AND AMERICA'S FUTURE. THE MARINE CORPS SCHOLARSHIP FOUNDATION IS NOT ONLY A PROVEN STEWARD, DRIVEN BY OUTCOMES AND THE MOST POWERFUL SUCCESS METRICS IN OUR FIELD. WE'RE ALSO THE ONLY SCHOLARSHIP PROGRAM PROVIDING DEDICATED SUPPORT TO CHILDREN OF MARINES AND NAVY CORPSMEN THAT SERVED WITH MARINE CORPS UNITS. MEET A FEW OF OUR SCHOLARSHIP RECIPIENTS AND YOU'LL KNOW OUR PROGRAM DELIVERS IMPACT FAR BEYOND TUITION ASSISTANCE. OUR SCHOLARS ARE DRIVEN TO DO MORE THAN SUCCEED. THANKS TO A LIFETIME OF MARINE CORPS VALUES, THEY'RE BORN LEADERS. WHEN THAT ABILITY IS MET WITH OPPORTUNITY, THE OUTCOMES ARE TRANSFORMATIONAL, WITH INSPIRING RESULTS FOR MARINE FAMILIES AND AMERICA'S FUTURE. OUR SCHOLARS ARE RAISED ON HONOR, COURAGE, AND COMMITMENT. AND BY THE TIME THEY'RE READY TO PUT THOSE VALUES TO WORK TOWARDS THEIR CAREER GOALS, STATISTICS SHOW THESE SAME YOUNG MEN AND WOMEN WILL BE OUTPERFORMING THEIR PEERS NEARLY 2 TO 1. AMONG OUR SCHOLARSHIP RECIPIENTS: 90 PERCENT GRADUATE OR ON TRACK TO GRADUATE (COMPARED TO 53 PERCENT NATIONALLY); 50 PERCENT FIRST-GENERATION COLLEGE STUDENTS (COMPARED TO 20 PERCENT NATIONALLY); 46 PERCENT ARE ENROLLED IN STEM (SCIENCE, TECHNOLOGY, ENGINEERING, AND MATH) AND HEALTH SCIENCE FIELDS; 70 PERCENT HAVE A GPA OF 3.0 OR HIGHER; 86 PERCENT STUDENT RETENTION FROM THE PREVIOUS ACADEMIC YEAR. 8953534 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 1 0 0 1 1 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 33 0 33 1 0 0 0 0 0 1 1 0 0 0 0 X 30 29 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AR AZ CA CT FL GA HI IL KS KY LA MA MD ME MI MN MS NC NH NJ NM NY OK OR PA RI SC TN UT VA WI WV X X RITA THAKUR 5713842806 909 N WASHINGTON STREET SUITE 400 ALEXANDRIA VA 22314 GEORGE J TRAUTMAN III CHAIRMAN 1.00 X 0 0 0 ERIC J CANDELORI VICE CHAIRMAN 1.00 X 0 0 0 RICHARD D STEPHENS TREASURER 1.00 X X 0 0 0 STEVEN M POST GENERAL COUNSEL 1.00 X X 0 0 0 MICHEAL P BARRETT DIRECTOR 1.00 X 0 0 0 CHARLES F BOLDEN JR DIRECTOR - EFFECTIVE 11/01/17 1.00 X 0 0 0 JON M DAVIS DIRECTOR - EFFECTIVE 11/01/17 1.00 X 0 0 0 JOSEPH L DRISCOLL DIRECTOR 1.00 X 0 0 0 DONALD V ESMOND DIRECTOR 1.00 X 0 0 0 DONALD W FAUL DIRECTOR 1.00 X 0 0 0 GEORGE J FLYNN DIRECTOR - EFFECTIVE 11/01/17 1.00 X 0 0 0 MATTHEW GANTZ DIRECTOR 1.00 X 0 0 0 TRACY GARRETT DIRECTOR 1.00 X 0 0 0 FRANK J GAUDIO DIRECTOR 1.00 X 0 0 0 JOHN C HEENAN DIRECTOR 1.00 X 0 0 0 ROBERT E JOYCE JR DIRECTOR 1.00 X 0 0 0 KAREN KELLY DIRECTOR 1.00 X 0 0 0 JAMES D KING DIRECTOR 1.00 X 0 0 0 THOMAS J LYONS DIRECTOR 1.00 X 0 0 0 KATHERINE C MCCALLUM DIRECTOR 1.00 X 0 0 0 JAMES P MCGINTY DIRECTOR 1.00 X 0 0 0 SUSAN E MORRISON DIRECTOR - EFFECTIVE 11/01/17 1.00 X 0 0 0 BERNARD A PEKALA DIRECTOR 1.00 X 0 0 0 PAMELA SCHMIDLE DIRECTOR 1.00 X 0 0 0 ROBERT W SCHRODER DIRECTOR - EFFECTIVE 4/10/17 1.00 X 0 0 0 MANNING J SMITH III DIRECTOR 1.00 X 0 0 0 ROBERT J STEVENS DIRECTOR 1.00 X 0 0 0 GAIL A WALTERS DIRECTOR - EFFECTIVE 4/10/17 1.00 X 0 0 0 BERNARD J WILLETT DIRECTOR 1.00 X 0 0 0 NIGEL W JONES DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 FREDRICK MCCORKLE DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 CHARLES C SCIANNA DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 WILLIE J WILLIAMS DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 RICHARD A BERGEN DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 DEBORAH CARSTENS DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 CRAIG DUCHOSSOIS DIRECTOR - UNTIL 10/10/17 1.00 X 0 0 0 MARGARET B DAVIS PRESIDENT - UNTIL 10/31/17 40.00 X X 434112 0 15094 ROBERT R RUARK PRESIDENT/CEO - EFFECTIVE 11/01/17 40.00 X X 58810 0 198 STEVEN D PETERSON CHIEF OPERATING OFFICER & SECRETARY 40.00 X 205589 0 13485 RITA THAKUR DIRECTOR OF ACCOUNTING AND FINANCE 40.00 X 114174 0 16103 KEITH W WELLER DIRECTOR OF COMMUNICATIONS 40.00 X 141010 0 13216 ASHLEY E SAVILLE DIRECTOR OF LEADERSHIP GIFTS 40.00 X 133957 0 6550 STEPHANIE TRISTAN SENIOR MAJOR GIFTS OFFICER 40.00 X 112482 0 28611 MELISSA A RIEHL DEVELOPMENT OFFICER - UNTIL 12/15/17 40.00 X 105277 0 31920 1305411 0 125177 7 0 1 0 DATOCWITTEN GROUP INC 13145 APPLEGROVE LANE HERNDON VA 20171 EVENT MANAGEMENT 428031 ANNE LEWIS STRATEGIES LLC 1140 19TH STREET NW 300 WASHINGTON DC 20036 DIGITAL MARKETING PROGRAM 361200 HILL KNOWLTON STRATEGIES LLC PO BOX 7297-7193 PHILADELPHIA PA 19170 CONTRACTED MEDIA SERVICES 154450 CREATIVE DIRECT RESPONSE 16900 SCIENCE DRIVE SUITE 210 BOWIE MD 20715 DIRECT MARKETING PROGRAM 118481 LINEMARK PRINTING INC 501 PRINCE GEORGES BLVD UPPER MARLBORO MD 20715 PRINTING SERVICES 115826 6 34728 13804320 14947193 3700171 28786241 1637701 1637701 49506285 47338373 2167912 2167912 2167912 221422 13804320 2174071 -1952649 -1952649 30870 3803 27067 27067 30666272 0 0 1880031 7132727 7132727 6130 6130 864716 319550 221621 323545 1634701 747031 198335 689335 75370 32893 9084 33393 205418 86706 30202 88510 167873 71623 27730 68520 60850 60723 127 102216 102216 482795 482795 180048 180048 758806 130186 95815 532805 573007 59381 299796 213830 209302 46095 31218 131989 198308 93358 30035 74915 151582 63604 27073 60905 185336 30345 35993 118998 233930 100430 109584 23916 76954 33475 11543 31936 50081 50081 OTHER FUNDRAISING EXP 230411 230411 DIRECT MAIL 152086 152086 BAD DEBT 75000 75000 53430 4019 49411 13861077 8953534 1600116 3307427 7982787 11948590 671807 1856989 22615380 28152201 36101 76018 552590 567264 1126785 931706 221798 195079 56358554 68553388 116606 6274 101824 99555 88657447 111455358 363614 198976 251834 161918 282944 371713 1152786 1267998 2051178 2000605 X 1086837 10447141 43166205 52329128 42353227 46678484 86606269 109454753 88657447 111455358 X 16805195 5770762 272527 X 0 1 X 1 0 X 16204271 20227816 31886048 18807333 28786241 115911709 16204271 20227816 31886048 18807333 28786241 115911709 28211953 87699756 935250 1052195 1120840 1391078 1637701 6137064 63323 40416 27067 130806 14906 67553 82459 122262038 0.71730 0.78740 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 50083327 3679771 6330436 1168382 58925152 41715078 6564692 2983272 1179715 50083327 41128843 2510172 -805382 1118555 41715078 38999872 2137070 1387227 1395326 41128843 34573570 2594211 2834286 1002195 38999872 0.00000 0.79220 0.20780 0 0 328791 202439 126352 797994 729267 68727 195079 OBLIGATIONS UNDER CHARITABLE TRUSTS AND ANNUITIES 1053978 DEFERRED RENT 214020 1267998 X 38830304 5770762 122917 272527 6166206 32664098 180048 -2177874 -1997826 30666272 15981820 122917 2177874 2300791 13681029 180048 180048 13861077 PART V, LINE 4: THE FOUNDATION'S ENDOWMENT FUNDS ARE USED TO PROVIDE SCHOLARSHIP AWARDS TO THOSE STUDENTS WHO ARE CHILDREN OF PERSONS WHO SERVED IN THE U.S. MARINE CORPS, WHO APPLY AND QUALIFY ACCORDING TO THE REQUIREMENTS AS SET BY THE FOUNDATION'S POLICY. PART X, LINE 2: THE FOUNDATION ADOPTED THE INCOME TAX STANDARD FOR UNCERTAIN INCOME TAX POSITIONS. THE FOUNDATION EVALUATED ITS TAX POSITIONS AND DETERMINED THAT ITS POSITIONS ARE MORE-LIKELY-THAN-NOT TO BE SUSTAINED ON EXAMINATION. THE FOUNDATION'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL AND STATE AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUES OF OBLIGATIONS UNDER CHARITABLE TRUSTS 272,527. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSES -2,174,071. GAMING EVENT EXPENSES -3,803. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENT EXPENSES 2,174,071. GAMING EVENT EXPENSES 3,803. 1 CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS AURORA FUND 6275 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 2500 EAST ASIA AND THE PACIFIC 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 3630 0 0 0 0 0 0 12405 0 12405 0 0 0 0 0 0 PART I, LINE 2: BEFORE AWARDS ARE MADE, STUDENTS APPLY FOR THE SCHOLARSHIPS AND A POINT SYSTEM IS USED TO DETERMINE THE AWARD AMOUNT TO EACH STUDENT BASED ON ELIGIBILITY AND NEED OF THE STUDENT. STUDENTS MUST PROVIDE INFORMATION TO THE ORGANIZATION, INCLUDING TRANSCRIPTS, VERIFICATION OF STUDENT EXPENSES AND AID FROM THE EDUCATIONAL INSTITUTIONS, AND A STATEMENT OF USE OF THE SCHOLARSHIP FUNDS. EACH STUDENT AND THE EDUCATIONAL INSTITUTION WHERE THE STUDENT IS ENROLLED AGREES THAT THE PAYMENT, OR THE UNUSED PORTION OF THE PAYMENT, MUST BE REFUNDED TO THE SCHOLARSHIP FOUNDATION IF 1) THE STUDENT TRANSFERS, WITHDRAWS OR OTHERWISE LEAVES SCHOOL, 2) THE STUDENT DOES NOT REMAIN IN SATISFACTORY ACADEMIC STANDING AS DEFINED BY THE SCHOOL, 3) THE STUDENT'S BEHAVIOR IS NOT CONSISTENT WITH THE SCHOOL'S STUDENT CONDUCT CODE, OR 4) THE STUDENT IS FOUND GUILTY OF A VIOLATION OF ANY CIVIL CODE. X X X X X 1 DATOCWITTEN INC 13145 APPLEGROVE LANE HERNDON VA 20171 EVENT MANAGEMENT 0 7180170 216375 6963795 PATRICIA J HURLEY & ASSOCIATES 205 WEST WACKER DRIVE SUITE 1400 CHICAGO IL 60606 EVENT MANAGEMENT 0 3332423 75000 3257423 THE JFM GROUP 629 FIFTH AVENUE SUITE 106 PELHAM NY 10803 EVENT MANAGEMENT 0 707588 67500 640088 MASON JAY BLACHER & ASSOCIATES 2210 FAIRVIEW AVENUE EAST SEATTLE WA 98102 EVENT FUNDRAISING 0 471878 62600 409278 CONVENTURES INC ONE DESIGN CENTER PLACE BOSTON MA 02210 EVENT MANAGEMENT 0 46450 16320 30130 GORDON C JAMES PUBLIC RELATIONS 5080 NORTH 40TH STREET SUITE 350 PHOENIX AZ 85018 EVENT MANAGEMENT 0 0 45000 -45000 11738509 482795 11255714 AK AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY CHICAGO AWARDS DINNER 3332423 3258390 74033 1275 103979 1675 23853 PEBBLE BEACH GOLF 1883722 1878722 5000 8352 185887 23199 281115 34 8802197 8659808 142389 158588 30810 463491 22909 838254 14018342 13796920 221422 168215 30810 753357 47783 1143222 2143387 -1921965 30870 1000 456 2347 1 0.90000 30870 1000 456 2347 3803 27067 CA CO CT FL IN MA NC NJ TX VA 1 0 1 0 1.00000 MARINE CORPS SCHOLARSHIP FOUNDATION INC 909 N WASHINGTON STREET SUITE 400 ALEXANDRIA VA 22314 0 SEE PART IV FOR LIST OF GAMING MANA 0 0 SCHEDULE G, PART I, LINE 2B, COLUMN (V) MARINE CORPS SCHOLARSHIP FOUNDATION, INC. (THE FOUNDATION) PAID PROFESSIONAL FUNDRAISERS FOR PROFESSIONAL FUNDRAISING SERVICES AND ADMINISTRATIVE FEES. IN 2017, THE FOUNDATION PAID ADMINISTRATIVE FEES AND EXPENSE REIMBURSEMENTS TO THE FOLLOWING PROFESSIONAL FUNDRAISERS: DATOCWITTEN, INC.: $196,305 PATRICIA J. HURLEY & ASSOCIATES: $20,731 THE JFM GROUP: $34,865 MASON JAY BLACHER & ASSOCIATES: $2,282 CONVENTURES, INC.: $17,302 GORDON C. JAMES PUBLIC RELATIONS: $654 SCHEDULE G, PART III, LINE 16: THE FOUNDATION HAD RAFFLES DURING GOLF FUNDRAISING EVENTS DURING THE YEAR. THE FOLLOWING RAFFLE MANAGERS CONTROLLED THE OVERALL OPERATION OF THE RAFFLE ACTIVITIES AT THE EVENTS: BOSTON GOLF - DICK MURPHY CAPITAL AREA GOLF - MATT CARROLL CAROLINA CLASSIC - MAJGEN THOMAS BRAATEN COLORADO GOLF - BILL CROYLE CONNECTICUT GOLF - MARTY CARROLL DFW CLAY SHOOT - PAT JOHNSON INDIANA GOLF - SEAN DIXON JERSEY SHORE GOLF - BOB VALVANO SARASOTA GOLF - MIKE TUTCHER TAMPA GOLF - TONY GAIN NONE OF THESE RAFFLE MANAGERS WAS COMPENSATED. 1 SCHOLARSHIP AWARDS 2037 7132727 N/A N/A PART I, LINE 2: BEFORE AWARDS ARE MADE, STUDENTS APPLY FOR THE SCHOLARSHIPS AND A POINT SYSTEM IS USED TO DETERMINE THE AWARD AMOUNT TO EACH STUDENT BASED ON ELIGIBILITY AND NEED OF THE STUDENT. STUDENTS MUST PROVIDE INFORMATION TO THE ORGANIZATION INCLUDING TRANSCRIPTS, VERIFICATION OF STUDENT EXPENSES AND AID FROM THE COLLEGES, AND A STATEMENT OF USE OF THE SCHOLARSHIP FUNDS. EACH STUDENT AND THE EDUCATIONAL INSTITUTION WHERE THE STUDENT IS ENROLLED AGREES THAT THE PAYMENT, OR THE UNUSED PORTION OF THE PAYMENT, MUST BE REFUNDED TO THE MARINE CORPS SCHOLARSHIP FOUNDATION IF 1) THE STUDENT TRANSFERS, WITHDRAWS OR OTHERWISE LEAVES SCHOOL, 2) THE STUDENT DOES NOT REMAIN IN SATISFACTORY ACADEMIC STANDING AS DEFINED BY THE SCHOOL, 3) THE STUDENT'S BEHAVIOR IS NOT CONSISTENT WITH THE ACADEMIC INSTITUTION'S STUDENT CONDUCT CODE, OR 4) STUDENT IS FOUND GUILTY OF ANY CIVIL CODE VIOLATION. X 1 0 X X X X 0 0 0 1 0 0 0 0 0 MARGARET B DAVIS PRESIDENT - UNTIL 10/31/17 311886 0 121934 0 292 0 13500 0 1594 0 449206 0 0 0 STEVEN D PETERSON CHIEF OPERATING OFFICER & SECRETARY 180300 0 23671 0 1618 0 10713 0 2772 0 219074 0 0 0 KEITH W WELLER DIRECTOR OF COMMUNICATIONS 126746 0 13400 0 864 0 7353 0 5863 0 154226 0 0 0 PART I, LINE 1A MARGARET DAVIS' HUSBAND, GENERAL DAVIS, ACCOMPANIED HER TO SEVERAL FOUNDATION EVENTS IN 2017. THE EXPENSES INCURRED WERE FLIGHTS USING OUR AMERICAN AIRLINE MILES TICKETS TOTALING $2,082. ROBERT RUARK'S WIFE, CHRISTINE COETZEE, ACCOMPANIED HIM TO SEVERAL FOUNDATION EVENTS IN 2017. THE EXPENSES INCURRED WERE FLIGHT TOTALING $694. PART I, LINE 5 A PORTION OF DEVELOPMENT OFFICERS' BONUS IS BASED UPON THEIR INDIVIDUAL REVENUE AND OVERALL TEAM REVENUE GOALS. X 28 3698716 STOCK MARKET QUOTES X COINS 1 880 FMV X GOLFER GOODIE BAG & GIFT BASKET 2 325 FMV X GIFT CARDS 2 150 FMV X MARINE PRESENTATION BOWIE KNIFE 1 100 FMV 0 1 1 PART I, LINE 32B: STOCK CONTRIBUTIONS THROUGH EVENTS THAT USE THIRD PARTY SOLICITORS, AND INVESTMENT MANAGER TO SELL STOCK CONTRIBUTIONS UPON RECEIPT. FORM 990, PART VI, SECTION A, LINE 1 THE BOARD OF DIRECTORS, BY RESOLUTION ADOPTED BY A MAJORITY OF THE ENTIRE BOARD, SHALL APPOINT FROM AMONG THE DIRECTORS AN EXECUTIVE COMMITTEE (WHICH SHALL INCLUDE COMPENSATION AMONG ITS FUNCTIONS), AND FROM AMONG THE DIRECTORS AND, IN THE BOARD'S SOLE DISCRETION, PERSONS WHO ARE NOT DIRECTORS, A CORPORATE GOVERNANCE COMMITTEE (WHICH SHALL INCLUDE NOMINATIONS AMONG ITS FUNCTIONS), A SCHOLARSHIP COMMITTEE, A DEVELOPMENT COMMITTEE, AN INVESTMENT COMMITTEE, AND AN AUDIT COMMITTEE (WHICH SHALL INCLUDE FINANCE AMONG ITS FUNCTIONS). DIRECTORS SHALL COMPRISE A MAJORITY OF ANY SUCH STANDING COMMITTEE TO WHICH PERSONS WHO ARE NOT DIRECTORS MAY BE APPOINTED. THE BOARD, IN ITS SOLE DISCRETION, MAY ALSO APPOINT FROM AMONG THE DIRECTORS AND PERSONS WHO ARE NOT DIRECTORS ONE OR MORE OTHER COMMITTEES, EACH OF WHICH SHALL HAVE ONE OR MORE COMMITTEE MEMBERS INCLUDING AT LEAST ONE DIRECTOR. THE NUMBER OF DIRECTORS TO BE APPOINTED TO THE EXECUTIVE COMMITTEE SHALL NOT EXCEED TEN AND SHALL INCLUDE THE CHAIRMAN, THE VICE CHAIRMAN OR, IF THERE IS MORE THAN ONE, THE VICE CHAIRMAN DESIGNATED TO SUCCEED THE CHAIRMAN IN HIS OR HER ABSENCE, THE PRESIDENT, THE CHAIR OF EACH OF THE OTHER STANDING COMMITTEES, THE TREASURER AND THE GENERAL COUNSEL. THE EXECUTIVE COMMITTEE SHALL HAVE AND EXERCISE THE FULL AUTHORITY OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE CORPORATION. ALL OTHER COMMITTEES, TO THE EXTENT PROVIDED IN THEIR RESPECTIVE ENABLING RESOLUTIONS AND NOT RESTRICTED BY LAW, SHALL HAVE AND EXERCISE SUCH AUTHORITY AS THE BOARD OF DIRECTORS SHALL PRESCRIBE IN THE MANAGEMENT OF THE CORPORATION. THE DESIGNATION OF ANY COMMITTEE, WHETHER UNDER THESE BYLAWS OR BY RESOLUTION ADOPTED BY THE BOARD, AND THE DELEGATION THERETO OF AUTHORITY SHALL NOT OPERATE TO RELIEVE THE BOARD OF DIRECTORS, OR ANY INDIVIDUAL DIRECTOR, OF ANY RESPONSIBILITY IMPOSED ON IT, HIM, OR HER BY LAW. FORM 990, PART VI, SECTION A, LINE 6 THE FOUNDATION HAS ONLY ONE CLASS OF MEMBERSHIP. NO PERSON MAY BE DENIED MEMBERSHIP ON THE BASIS OF SEX, RACE, CREED, AGE, COLOR, NATIONAL ORIGIN, OR ANY OTHER ILLEGALLY DISCRIMINATORY BASIS. AN APPLICANT FOR MEMBERSHIP SHALL, UPON HAVING FILED WITH THE FOUNDATION A SIGNED WRITTEN DOCUMENT EXPRESSING HIS OR HER INTEREST IN PROMOTING THE PURPOSES OF THE FOUNDATION AND ABSENT GOOD CAUSE FOR DENIAL, BE ACCEPTED AS A MEMBER. FORM 990, PART VI, SECTION A, LINE 7A EACH MEMBER SHALL BE ENTITLED TO CAST ONE VOTE FOR EACH DIRECTOR TO BE ELECTED IN ANY ELECTION OF DIRECTORS AND FOR THE REMOVAL OF ANY DIRECTOR. NO MEMBER SHALL HAVE THE RIGHT TO VOTE ON ANY OTHER MATTER. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN IS PREPARED BY AN OUTSIDE PUBLIC ACCOUNTING FIRM BASED ON INFORMATION PROVIDED BY MANAGEMENT. ONCE THE DRAFT OF THE FILING IS REVIEWED AND APPROVED BY MANAGEMENT, THE ORGANIZATION'S BOARD OF DIRECTORS AND GENERAL COUNSEL REVIEWS THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD MEMBERS ARE REQUIRED TO READ THE CONFLICT OF INTEREST POLICY ON AN ANNUAL BASIS. THEY MUST SIGN THAT THEY READ IT AND THEN COMPLETE A FORM THAT LISTS ANY CONFLICTS. THERE ARE PERIODIC REVIEWS TO ENSURE COMPLIANCE. AT SUCH TIME AS ANY MATTER COMES BEFORE THE BOARD IN SUCH A WAY AS TO GIVE RISE TO A CONFLICT OF INTEREST, THE INTERESTED OFFICER, IF ATTENDING THE MEETING, OR DIRECTOR SHALL MAKE KNOWN THE POTENTIAL CONFLICT, WHETHER OR NOT DISCLOSED BY HIS OR HER WRITTEN STATEMENT, AND AFTER ANSWERING ANY QUESTIONS THAT MIGHT BE ASKED OF SUCH OFFICER OR DIRECTOR, HE OR SHE SHALL WITHDRAW FROM THE MEETING FOR SO LONG AS THE MATTER SHALL CONTINUE UNDER DISCUSSION. SHOULD THE MATTER BE BROUGHT TO A VOTE, NEITHER THE INTERESTED DIRECTOR NOR ANY OTHER DIRECTOR HAVING A PECUNIARY BENEFIT TRANSACTION WITH THE FOUNDATION SHALL VOTE ON IT. A TWO-THIRDS (66 2/3%) VOTE OF THE ENTIRE BOARD IS REQUIRED TO AUTHORIZE ANY TRANSACTION OR OTHER MATTER IN WHICH AN OFFICER OR DIRECTOR HAS A POTENTIAL CONFLICT OF INTEREST. ALL PROCEEDINGS RELATED TO CONFLICTS OF INTEREST ARE DOCUMENTED IN THE MEETING MINUTES. FORM 990, PART VI, SECTION B, LINE 15 CHIEF EXECUTIVE OFFICER (CEO), EXECUTIVE DIRECTOR, MANAGEMENT: CONSULTATION WITH HR CONSULTANT WHO PROVIDED A SALARY SURVEY OF COMPARABLE SIZED NONPROFIT ORGANIZATIONS (NPOS) NATIONALLY AND IN THE DC AREA, INCLUDING OTHER UNITED STATES MARINE CORPS (USMC)-RELATED NPOS. AN ADDITIONAL SURVEY WAS SENT TO ALL BOARD MEMBERS REQUESTING ANSWERS TO SPECIFIC PERFORMANCE-RELATED QUESTIONS. ANALYSIS OF MARKET DATA BY HR CONSULTANT AND PROFESSIONALS IN THE FIELD, COUPLED WITH SCOPE AND DEMANDS OF THE JOB, WAS PROVIDED DIRECTLY TO THE BOARD VICE-CHAIR. RECOMMENDED COMPENSATION WAS PROVIDED THROUGH WRITTEN COMMUNICATION TO MEMBERS OF THE EXECUTIVE COMMITTEE FOR APPROVAL, WITH EVIDENCE OF APPROVAL BEING MAINTAINED BY BOARD VICE-CHAIR. THE PROCESS WAS LAST UNDERTAKEN IN 2017. OFFICERS AND KEY EMPLOYEES: CONSULTATION WITH HR CONSULTANT, WHICH INCLUDES SALARY SURVEYS FOR RESPECTIVE POSITIONS AND/OR INTERVIEWS OF OTHER SIMILAR NPOS, AND CONSULTATION WITH EXECUTIVE RECRUITERS REGARDING THEIR RECOMMENDED SALARY BASED ON NATURE AND DUTIES OF THE POSITION. INFORMATION REVIEWED BY PRESIDENT/CEO AND DOCUMENTED BY THE HR CONSULTANT. THE PROCESS WAS LAST UNDERTAKEN IN 2017. FORM 990, PART VI, SECTION C, LINE 19 THE FOUNDATION PUBLISHES AN ANNUAL REPORT THAT INCLUDES FINANCIAL DATA. THE ANNUAL REPORT, AS WELL AS AUDITED FINANCIAL STATEMENTS, ARE POSTED TO THE WEBSITE. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST STATEMENT ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUES OF OBLIGATIONS UNDER CHARITABLE TRUSTS 272,527.