2018-06-14T19:50:25-05:00 2017-07-31 861065772 DELOITTE TAX LLP 555 MISSION STREET SAN FRANCISCO CA 94105 990 2016-08-01 954470909 MUSICARES Foundation INC MUSI 3103923777 3030 Olympic Boulevard Santa Monica CA 90404 NEIL PORTNOW President/CEO 3103923777 2018-06-12 1 Joan S McMahon P00966494 4157834000 73.202.202.211 2018-06-12 20:13:46 PD P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 E8F23DE3FF17825131E48E8A8FC02587176E1465 2016 2018-06-14 16:35:46Z Neil Portnow 3030 Olympic Boulevard Santa Monica CA 90404 20910442 0 X www.grammy.com/musicares X 1989 CA MusiCares provides a safety net of critical assistance for music people in times of need. 19 19 23 209 1253 0 13991441 16833286 0 0 743210 945432 -5371337 -6340186 9363314 11438532 4706397 5942581 0 0 2319306 2396300 0 0 911834 1391816 1476968 8417519 9815849 945795 1622683 23056049 25115285 1040951 667484 22015098 24447801 X Musicares provides a safety net of critical assistance for music people in times of need. Musicares' services and resources cover a wide range of financial, medical and personal emergencies, and each case is treated with integrity and confidentiality. Musicares also focuses the resources and attention of the music industry on human service issues that directly impact the health and welfare of the music community. 0 0 6264955 4725253 The Foundation provides financial assistance of up to $5,000 per calendar year for basic needs and $7,500 for medical illness and/or major medical conditions with a lifetime maximum of $15,000 to recording industry personnel, including creative and technical personnel (i.e. musicians, composers, engineers, producers, etc.), music business staff (i.e. record label staff, management companies, entertainment attorneys, music retailers), and other members of the music community who have been employed in the industry for at least five years. These grants are made available to music people facing an unforseen medical, personal, or financial crisis. This can include payments for health care professionals and prescriptions, rent/mortgage payments, health insurance premiums, and costs for other basic living support services. Through its Community Outreach and Educations Programs, the Foundation also provides workshops, seminars, and individual consultations to members of the music community on topics related to general health and human service needs. It also provides ideas and resources for proactively addressing those issues. 1708269 1199238 MAP Fund (Formerly Addiction Recovery Initiatives) - The foundation provides emergency financial assistance to individuals within the music community facing addiction. Assistance limits are $8,500 per year with a lifetime limit of $15,000. The program may provide payment for inpatient treatment, sober living and/or other expenses related to recovery. The program also provides a support network of recovery resources for music people who are touring throughout the country. In addition the foundation also provides workshops and coordinates meetings of industry professionals to discuss the problems of chemical dependency and discuss specific strategies for intervention for individuals within the music community. 18090 18090 MUSICARES FOUNDATION PROVIDES VARIOUS GRANTS TO OTHER TAX EXEMPT ORGANIZATIONS. 7991314 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 1 1 0 0 0 1 1 1 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 36 0 1 23 1 1 1 0 0 0 0 1 1 0 0 0 0 X 19 19 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AK AL AR AZ CA CO CT DE FL GA HI IA ID IL KS MA MD ME MI MN MS NC ND NH NJ NM NY OH OR PA RI SC SD TN UT WA WI WV VA OK X X Judy Wong 3103923777 3030 Olympic Boulevard Santa Monica CA 90404 X Bill Silva Chair Emeritus 1.00 X X 0 0 0 Alexandra Patsavas Chair 1.00 X X 0 0 0 Alissa Pollack thru 0616 VICE CHAIR 1.00 X X 0 0 0 Arnie Herrmann thru 0616 SECRETARY/TREASURER 1.00 X X 0 0 0 Michael McDonald vice chair 1.00 X X 0 0 0 Scott Pascucci thru 0616 Chair Emeritus 1.00 X X 0 0 0 John Burk Director 1.00 X 0 0 0 Rod Essig thru 0616 Director 1.00 X 0 0 0 Pete Fisher Director 1.00 X 0 0 0 Susan Genco Director 1.00 X 0 0 0 Jody Gerson Director 1.00 X 0 0 0 Olivia Harrison Director 1.00 X 0 0 0 James Higa DIrector 1.00 X 0 0 0 Mike Knobloch Director 1.00 X 0 0 0 Kevin Lyman Director 1.00 X 0 0 0 John Poppo Director 1.00 X 0 0 0 Kirdis Postelle Director 1.00 X 0 0 0 Scott Powell Director 1.00 X 0 0 0 Stasia Washington Director 1.00 X 0 0 0 jeff harleston from 0616 director 1.00 X 0 0 0 tamra hrivnak from 0616 director 1.00 X 0 0 0 rob light from 0616 director 1.00 X 0 0 0 andie B Simon from 0616 director 1.00 X 0 0 0 Neil Portnow President/CEO 1.00 X 0 0 0 Debbie Carroll Executive Director - HHS 40.00 X 151974 0 29830 HAROLD OWENS SR. DIRECTOR - HHS 40.00 X 115953 0 31532 Dana Tomarken Vice President 40.00 X 189777 0 50827 Judy Wong Vice President 40.00 X 173452 0 33521 DORIT KALEV MANAGING DIRECTOR 40.00 X 112193 0 26673 743349 0 172383 5 0 1 0 Bounce Event Marketing Inc 9696 Culver Blvd Suite 203 Culver City CA 90232 Event Production 1789197 ACS CUSTOM USA LLC 855 STANTON RD 300 BURLINGAME CA 94010 HEARING CLINIC PROVIDER 755667 Levy Restaurants 1111 S Figueroa Street Suite 1600 Los Angeles CA 90015 Event Catering 331791 Cumberland Heights Treatment Center 8283 River Road Nashville TN 37209 Sobriety Treatment 267741 CROSSROADS CENTER ANTIGUA WILLOUGHBY BAY ST PHILLIPS WEST INDIES AA SOBRIEty Treatment 172400 9 12368315 4464971 5699697 16833286 880179 880179 875897 810644 65253 65253 65253 2060316 12368315 8661266 -6600950 -6600950 Online Auctions 900099 259511 259511 TV LICENSING/ROYALTY 541200 1253 1253 260764 11438532 0 1253 -5396007 6500 6500 5747091 5747091 188990 188990 1873592 1032385 302107 539100 108043 28076 71233 8734 288435 185036 28865 74534 126230 77016 17612 31602 19933 5483 -2062 16512 63275 63275 136053 368 135229 456 458877 218916 124601 115360 657 275 382 145008 60038 56457 28513 59942 21737 19229 18976 11112 5180 4141 1791 213265 170020 28395 14850 47634 47634 46467 21769 16068 8630 Production Costs 88500 88181 319 TAXES AND LICENSES 40647 14947 15585 10115 REPAIR AND MAINTENANCE 40075 14060 11165 14850 CATERING FOOD 8921 6485 2346 90 96602 51127 18455 27020 9815849 7991314 912701 911834 1202 1202 3713508 3840122 188540 83000 101296 355843 11420 58951 315589 153054 78312 162535 18331981 20582500 629790 31132 23056049 25115285 871863 531115 72000 136369 97088 0 1040951 667484 X 21826558 21826558 188540 188540 22015098 24447801 23056049 25115285 1622683 810020 0 X 0 1 X 1 0 X 11262154 13276388 13591540 13991441 16833286 68954809 11262154 13276388 13591540 13991441 16833286 68954809 17757738 51197071 227150 460649 725835 846530 880179 3140343 1713397 1895851 1915863 2248894 260764 8034769 80129921 0.63890 0.63570 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 10533673 10533673 10378665 855310 700302 10533673 10095404 1486849 1203588 10378665 9702952 1176853 784401 10095404 8983879 1534942 815869 9702952 0 0 123758 89758 34000 191831 63296 128535 162535 X 21527597 810020 271387 9007658 10089065 11438532 0 11438532 19094894 271387 9007658 9279045 9815849 0 9815849 Part V, Line 4: To provide ongoing funding of operational and programmatic expenses. Part X, Line 2: The MusiCares Foundation accounts for income taxes in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740, Income Taxes. FASB ASC 740 prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken, or expects to take, on a tax return. During the years ended July 31, 2017 and 2016, MusiCares Foundation did not record any liability for unrecognized tax benefits. Part XI, Line 2d - Other Adjustments: Special Event Expenses Netted with Revenue Part XII, Line 2d - Other Adjustments: Special Event Expenses Netted with Revenue 1 Central America & the Caribbean GRANTS 172400 EUROPE (INCLUDING ICELAND & GREENLAND) FUNDRAISING 119 North America GRANTS AND FUNDRAISING 13208 0 0 0 0 0 0 185727 0 185727 Central America & the Caribbean ADDICTION RECOVERY SERVICES 172400 Check FMV 1 FINANCIAL ASSISTANCE North America 1 5000 ELECTRONIC FUND/WIRE FMV 0 0 0 0 0 0 Part I, Line 2: Grant funds reported in Part II were provided to nine recipients who each received a 28-day inpatient substance abuse treatment. MusiCares received weekly progress reports from Crossroads which ensures our clients remain in treatment. In addition, MusiCares conducted a hearing clinic where 156 clients received services that included ear impressions and custom ear plugs. POTY Dinner/Auction 13890001 11988410 1901591 34969 402397 7806734 MAP Concert 449362 309087 140275 26251 43737 400 313967 2 89268 70818 18450 28865 3946 14428631 12368315 2060316 61220 474999 400 8124647 8661266 -6600950 1 GRAMMY MUSEUM FOUNDATION INC 800 W OLYMPIC BOULEVARD LOS ANGELES CA 90015 261447714 501(c)(3) 6500 general support 1 FINANCIAL ASSISTANCE TO INDIVIDUALS WITHIN THE MUSIC COMMUNITY, INCLUDING BUT NOT LIMITED TO PAYMENTS MADE TO THIRD PARTY VENDORS ON BEHALF OF INDIGENT RECORDING INDUSTRY PERSONNEL. 7644 4720253 CASH VALUE FINANCIAL ASSISTANCE FOR ADDICTION RECOVERY SERVICES, INCLUDING, BUT NOT LIMITED TO, PAYMENTS MADE TO THIRD PARTY VENDORS ON BEHALF OF RECORDING INDUSTRY PERSONNEL FOR SUBSTANCE ABUSE TREATMENT 230 1026838 CASH VALUE Part I, Line 2: The grantee is required to provide documentation for the basis of the grant and MusiCares will pay directly from the provided documents (i.e. medical bills, insurance, basic living including rent, etc.) directly to the vendor on behalf of the grantee. X 0 1 X X X X X 0 0 0 0 0 0 0 0 0 Debbie Carroll Executive Director - HHS 148770 0 1000 0 2204 0 11626 0 18204 0 181804 0 0 0 Dana Tomarken Vice President 176464 0 1750 0 11563 0 26781 0 24046 0 240604 0 0 0 Judy Wong Vice President 167890 0 1750 0 3812 0 14473 0 19048 0 206973 0 0 0 Part I, Line 1a The filing organization receives barter Airfare per Sponsorship contract. Three first class tickets that were not sold in any of our auctions or used to facilitate travel for guest artists to any of our fundraising events, i.e. Person of the Year Dinner, were due to expire. One of our fundraising events was scheduled to occur in New York and three key staff persons were sent to meet with location management and other individuals/organizations regarding fundraising opportunities. These three staff members were allowed to use the barter in lieu of buying tickets since these tickets were already going to expire. The use of these tickets for staff is not the norm as our policy is not to allow staff to travel via first class. X GIFT BAGS ITEMS (INCLUDING CERTIFICATES, HAIR PRODUCT, ETC.) 22 5534997 Cost or selling pric X BEVERAGES 4 74225 Cost or selling pric X STEINWAY GRAND PIANO 1 34000 OPINIONS OF EXPERTS X SIGNAGE, DECOR, TRANSPORTATION 4 893 COst or selling pric 1 0 0 1 Part I, Column (b): Column B reflects the number of contributors that provided certificates, product or services to our fundraising events. In addition, we had one contributor who gave various tables, chairs and a Grand Piano. Part I, Line 32b: MusiCares uses a third party vendor to provide gifts to talent in the gifting lounge for our person of the year fundraising event and also utilizes another third party to help solicit items for our Person of the Year auction. In addition MusiCares uses an auction house (Julien's Auctions and Charity Buzz) to sell donated auction items on the organization's behalf. Form 990, Part VI, Section A, line 1 The Executive Committee is comprised solely of no less than four Directors and whose number shall be fixed from time to time by the Board. The members of the Executive Committee shall be elected to a one-year term by vote of the majority of the entire Board at the annual meeting of the Board (or at such other meeting as may be selected by the Board) acting upon the recommendations of the Nominating Committee; provided, however that the Chair (who shall serve as Chair of the Executive Committee), Vice Chair and Secretary/Treasurer shall serve ex officio as voting members of the Executive Committee. The President shall serve ex officio as a non-voting member of the Executive Committee. Additional members of the Executive Committee may be recommended by the Nominating Committee from time to time. During those periods when the Board is not in session, the Executive Committee shall have the power to act with the full authority of the Board and shall exercise general supervision of the affairs of Foundation, and in all events shall be authorized to address matters of a sensitive, confidential nature. Form 990, Part VI, Section B, line 11b Form 990 is prepared by Deloitte Tax, LLP, working in conjuction with MUSICARES FOUNDATION INC.'S finance department. The draft of the Form 990 is reviewed by the organization's management. The initial draft of the Form 990 is then provided to MUSICARES FOUNDATION INC.'S finance committee for their review. Any comments resulting from their review are incorporated into the final filing of the Form 990. Form 990, Part VI, Section B, line 12c The conflict of interest policy and questionnaire are presented to board members on an annual basis. The responses are maintained by the director of corporate contracts and corporate secretary of the Recording Academy. The conflict of interest policy is monitored and enforced by both the senior vice president and the chair of the board. Form 990, Part VI, Section B, line 15 On a bi-annual basis, management prepares an analytical study of executive compensation that compares the compensation paid to executives in similar tax-exempt organizations of similar activities and size, using the amounts reported on the Form 990 for these similar organizations. The process is MANAGED by the Senior Vice President, with input from our independent public accounting firm. This study is then provided to the Organization's audit committee for review. The process to determine the Senior Vice President's compensation is the same, and it is overseen by The President and CEO of Musicares Foundation in consultation with the chair of the board. The President and CEO of Musicares Foundation is also the President and CEO of The National Academy of Recording Arts & Sciences, Inc. ("NARAS"), an affiliated but unrelated tax exempt organization for tax purposes. The president and CEO is paid entirely by NARAS and is subject to the compensation policies set forth for that tax exempt organization. Form 990, Part VI, Section C, line 19 The financial statements are incorporated in form 990 that is made available to the public on guidestar.org. The organization makes its governing documents and conflict of interest policy available to the public upon request. Form 990, Part VII: All of Neil Portnow's compensation is paid by NARAS, an affiliated exempt organization, for his services to them. His services to the MusiCares Foundation are as a volunteer and as such, he is not compensated by the MusiCares Foundation for any of his work as its President and CEO. FORM 3115 TANGIBLE PROPERTY REGULATION STATEMENT Section 1.263(a)-1(f) De Minimis Safe Harbor Election Taxpayer is making the de minimis safe harbor election under Treas. Reg. 1.263(a)-1(f) for all eligible amounts paid or incurred during the taxable year. Section 1.263(a)-3(n) Capitalization Election Taxpayer hereby elects to capitalize repair and maintenance costs under Treas. Reg. 1.263(a)-3(n). The costs were incurred during the taxable year in the electing taxpayer's trade or business and the electing taxpayer treats such costs as capital expenditures on its books and records.