2017-11-14T07:40:18-06:00 2016-12-31 410746749 CLIFTONLARSONALLEN LLP 1301 W 22ND ST STE 1100 OAK BROOK IL 60523 990 2016-01-01 363739643 APPRAISAL INSTITUTE APPR 3123354100 200 WEST MADISON NO 1500 CHICAGO IL 60606 JAMES AMORIN MAI SRA AI-GRS ACTING CEO 3123354100 2017-11-13 1 GREGORY S ADAMS P00095597 6305738600 2017-11-10 67.137.57.251 2017-11-13 11:29:46 CS P A7830F5E10E5137C1CCF2ACCE09356AA493AF9C7 1A575DA7D4580FEB092587E941B69D20BC1E409C 2016 2021-01-29 14:40:06Z JAMES AMORIN MAI SRA A 200 WEST MADISON NO 1500 CHICAGO IL 60606 22072758 1 0 9464 X WWW.APPRAISALINSTITUTE.ORG X 1991 IL THE APPRAISAL INSTITUTE'S MISSION IS TO ADVANCE PROFESSIONALISM AND ETHICS, GLOBAL STANDARDS, METHODOLOGIES, AND PRACTICES THROUGH THE PROFESSIONAL DEVELOPMENT OF PROPERTY ECONOMICS WORLDWIDE. 25 19 99 120 54783 -25980 90059 83063 19800511 19168118 120773 549723 312150 386093 20323493 20186997 10626 3845 0 0 9406096 9357592 0 0 0 9892466 9788937 19309188 19150374 1014305 1036623 20464170 20940340 10906811 10159025 9557359 10781315 X SEE SCHEDULE O. 0 0 TOTAL MEMBERSHIP AS OF DECEMBER 31, 2016 WAS 19,000, INCLUDING ACTIVE DESIGNATED MEMBERS, CANDIDATES FOR DESIGNATION, PRACTICING AFFILIATES AND AFFILIATES, AS WELL AS RETIRED DESIGNATED MEMBERS AND LIFE DESIGNATED MEMBERS. THE APPRAISAL INSTITUTE CONFERS THE MAI, SRA, AI-GRS AND AI-RRS MEMBERSHIP DESIGNATIONS, THE REQUIREMENTS FOR WHICH ARE RIGOROUS. EACH MEMBER OF THE APPRAISAL INSTITUTE SHALL ABIDE BY, UPHOLD AND CONFORM HIS OR HER ACTIONS TO THE BYLAWS, REGULATIONS, CODE OF PROFESSIONAL ETHICS AND STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE OF THE APPRAISAL INSTITUTE. THE ORGANIZATION HAS LED THE PROFESSION IN FOSTERING AND PROMOTING THE HIGHEST STANDARDS OF PRACTICE THROUGH ITS DESIGNATION PROGRAMS, PEER REVIEW PROCESS, EDUCATION, RESEARCH, AND PUBLISHING ENDEAVORS. AS THE LEADER IN REAL PROPERTY APPRAISER EDUCATION, THE APPRAISAL INSTITUTE OFFERS AN EXTENSIVE CURRICULUM OF INTRODUCTORY AND ADVANCED COURSES, AS WELL AS A WIDE RANGE OF SEMINARS ON SPECIALTY TOPICS. THESE PROGRAMS ARE DESIGNED TO ADDRESS THE NEEDS OF ALL REAL ESTATE APPRAISERS, RANGING FROM THOSE JUST ENTERING THE PROFESSION AND EARNING CREDIT TOWARD STATE LICENSING OR CERTIFICATION, TO SEASONED PRACTITIONERS WHO WISH TO KEEP ABREAST OF THE LATEST TECHNIQUES AND DEVELOPMENTS. MANY OF THESE PROGRAMS ALSO SERVE TO HELP OTHER INDUSTRY PROFESSIONALS GAIN FURTHER INSIGHT AND UNDERSTANDING OF REAL ESTATE VALUATION TECHNIQUES AND PROCESSES. THE APPRAISAL INSTITUTE HAS ALSO EXPANDED ITS EDUCATION PROGRAMS TO ASIA, EUROPE AND THE MIDDLE EAST, AND HAS A GROWING INTERNATIONAL MEMBERSHIP. IN 2016, THE APPRAISAL INSTITUTE SERVED APPROXIMATELY 27,000 STUDENTS THROUGH MORE THAN 1,800 COURSES AND SEMINARS. THE APPRAISAL INSTITUTE IS THE WORLD'S LARGEST PUBLISHER OF REAL ESTATE APPRAISAL LITERATURE. IN ADDITION TO A SERIES OF GENERAL REFERENCE BOOKS, EVERY YEAR THE APPRAISAL INSTITUTE ADDS TO ITS EXTENSIVE LIST OF PUBLICATIONS (INCLUDING DIGITAL PUBLICATIONS), COVERING CONTEMPORARY PRACTICE ISSUES, ADVANCES IN METHODOLOGY AND TECHNOLOGY, AND THE VALUATION OF A WIDE RANGE OF SPECIAL PURPOSE PROPERTIES. IN 2016, THE APPRAISAL INSTITUTE SOLD APPROXIMATELY 11,000 BOOKS. THE APPRAISAL INSTITUTE ALSO PUBLISHES THE APPRAISAL JOURNAL, VALUATION MAGAZINE AND APPRAISER NEWS ONLINE. THE PEER-REVIEWED JOURNAL HAS SERVED AS THE TOP FORUM FOR APPRAISAL PROFESSIONALS AND HAS BECOME THE MOST FREQUENTLY REFERENCED PERIODICAL IN APPRAISAL LITERATURE. VALUATION MAGAZINE FOCUSES ON INNOVATIVE FEATURES AND PRACTICAL IDEAS. APPRAISER NEWS ONLINE KEEPS APPRAISERS ABREAST OF INDUSTRY TRENDS AS WELL AS LEGISLATIVE AND REGULATORY MATTERS IMPACTING APPRAISERS. 0 1 1 1 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 170 0 1 99 1 1 1 0 0 0 0 0 X 25 19 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X BEATA E SWACHA CPA CAE 3123354100 200 WEST MADISON SUITE 1500 CHICAGO IL 60606 SCOTT ROBINSON MAI SRA AI-GRS; PRESIDENT 30.00 X X 178728 0 0 JAMES AMORIN MAI SRA AI-GRS; PRESIDENT ELECT 20.00 X X 119843 0 0 JAMES L MURRETT MAI SRA VICE PRESIDENT 20.00 X X 93663 0 0 M LANCE COYLE MAI SRA IMMEDIATE PAST PRESIDENT 10.00 X X 62878 0 0 CHARLES W LAFLAMME MAI DIRECTOR 2.00 X 0 0 0 JEFFREY S ENRIGHT MAI SRA AI-GRS; DIRECTOR 2.00 X 0 0 0 KERRY M JORGENSEN MAI DIRECTOR 2.00 X 13750 0 0 CRAIG STEINLEY SRA AI-RRS DIRECTOR 2.00 X 2200 0 0 JASON L MESSNER MAI DIRECTOR 2.00 X 0 0 0 MARK J KRAUSE MAI DIRECTOR 2.00 X 0 0 0 ANTHONY M MARMORALE SRA AI-RRS; DIRECTOR 2.00 X 0 0 0 ROBERT B LYNCH SRA DIRECTOR 2.00 X 0 0 0 CHARLES R MILLSJR MAI SRA AI-GRS; DIRECTOR 2.00 X 0 0 0 STEPHEN S WAGNER MAI AI-GRS; DIRECTOR 2.00 X 52630 0 0 RYAN M HLUBB MAI SRA DIRECTOR 2.00 X 0 0 0 THOMAS C REYNOLDS III SRPA DIRECTOR 2.00 X 0 0 0 KERRY LEIMAN SRA DIRECTOR 2.00 X 0 0 0 ROGER P BUSH MAI SRA DIRECTOR 2.00 X 0 0 0 MISTY K RAY MAI AI-GRS DIRECTOR 2.00 X 0 0 0 ERIC K SCHWARTZ MAI SRA AI-GRS; DIRECTOR 2.00 X 0 0 0 RICHARD A MALOY MAI SRA DIRECTOR 2.00 X 0 0 0 PLEDGER M BISHOP III MAI SRA; DIRECTOR 2.00 X 16645 0 0 CHARLES T COWART MAI DIRECTOR 2.00 X 30933 0 0 VAL K CHIASSON MAI SRA DIRECTOR 2.00 X 0 0 0 CESAR S CANTU MARTINEZ MAI SRA; DIRECTOR 2.00 X 0 0 0 JAMES L HENDERSON SRA DIRECTOR 2.00 X 0 0 0 FREDERICK H GRUBBE MBA CAE CEO 60.00 X 463931 0 33460 BEATA E SWACHA CPA CAE CFO 49.00 1.00 X 175426 0 27356 JEFFREY E LISKAR ESQUIRE GENERAL COUNSEL 50.00 X 284449 0 32024 KENNETH R CHITESTER DIRECTOR, COMMUNICATIONS 37.50 X 138610 0 12983 STEPHANIE COLEMAN MAI SRA AI-GRS AI-RRS; SENIOR MANAGER, ETHICS & STANDARDS 37.50 X 151744 0 14216 EVAN WILLIAMS CAE IOM DIRECTOR, PROFESSIONAL SERVICES & RESOURCES 37.50 X 153592 0 27778 WILLIAM E GARBER JR DIRECTOR, GOVERNMENT RELATIONS 37.50 X 205729 0 28177 ROBERTA H BORST MBA DIRECTOR, MARKETING & INTERNATIONAL RELATIONS 37.50 X 148252 0 8994 2293003 0 184988 16 0 1 0 INSTRUCTURE INC 6330 S 3000 EAST STE 700 SALT LAKE CITY UT 84121 ONLINE LEARNING SYSTEM 150284 ROBERT L MESNER 2312 BELLAROSA CIRCLE ROYAL PALM BEACH FL 33411 EXPERIENCE SCREENER FEES 124875 RICH FEUER ANDERSON 1133 CONNECTICUT AVE NW STE 620 WASHINGTON DC 20036 LOBBYING CONSULTING FEES 120115 APPRAISAL CONSULTANTS RICHARD DUBAY 2570 RICE STREET LITTLE CANADA MN 55113 INSTRUCTOR FEES 108325 4 83063 83063 MEMBERSHIP DUES & FEES 541900 11402396 11402396 EDUCATION & REGISTRATION FEES 611600 5918497 5918497 ADMISSION & GRADING FEES 611600 721920 721920 PUBLICATION SALES 511130 700095 700095 PERIODICALS 511120 81118 37527 43591 344092 344092 19168118 170806 170806 294570 294570 2264678 1885761 378917 378917 378917 OTHER REVENUE 900099 80331 80331 0 WEBSITE ADVERTISING 541900 11192 11192 91523 20186997 19204858 54783 844293 3845 1507192 6283621 302294 793248 471237 166672 51982 125238 10000 1338523 498093 616385 303379 257815 702842 945938 2102114 446596 228259 EDUCATION SUPPORT 792931 PROFESSIONAL SERVICES 460051 CREDIT CARD FEES 288665 PRINTING & PUBLICATIONS 126917 326537 19150374 6325925 5536565 2945979 3655470 89229 72161 127913 113005 377757 313980 6024573 4481554 1660833 1543019 8412009 9212212 524525 493928 20464170 20940340 1572879 1746411 5437251 4679669 3896681 3732945 10906811 10159025 X 9548997 10772953 8362 8362 9557359 10781315 20464170 20940340 1036623 187333 0 X X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED APPRAISAL INSTITUTE PAC 200 W MADISON STREET STE 1500 CHICAGO IL 60606 363739643 61750 0 0 1 11383106 554958 -123310 431648 594257 -162609 SCHEDULE C, PART I-C, LINE 5 APPRAISAL INSTITUTE PAC (AI PAC) PROVIDES A MEANS FOR DESIGNATED MEMBERS, CANDIDATES, AND PRACTICING AFFILIATES TO PARTICIPATE IN THE POLITICAL PROCESS ON A NATIONAL LEVEL. CONTRIBUTIONS CAN BE MADE BY INDIVIDUAL DESIGNATED MEMBERS, CANDIDATES, AND PRACTICING AFFILIATES OF THE APPRAISAL INSTITUTE AND THEIR FAMILIES, AS WELL AS BY APPRAISAL INSTITUTE EMPLOYEES. CONTRIBUTIONS FROM AI PAC SUPPORT THE PRIMARY AND GENERAL ELECTION CAMPAIGN EFFORTS OF CANDIDATES FOR THE U.S. CONGRESS WHO SUPPORT AND PROMOTE THE PRINCIPLES OF THE APPRAISAL PROFESSION. AI PAC DOES NOT CONTRIBUTE TO POLITICAL PARTIES, TO PRESIDENTIAL CANDIDATES, OR TO LEADERSHIP POLITICAL ACTION COMMITTEES. PART I-A, LINE 1 ADMINISTRATIVE COSTS OF THE PAC ARE PAID DIRECTLY BY APPRAISAL INSTITUTE. 1619767 570468 1049299 966019 759454 206565 3438787 3151632 287155 1543019 457B PLAN LIABILITY 217081 DEFERRED RENT CREDIT 1090940 TENANT IMPROVEMENT ALLOWANCE 1007064 DUE TO CHAPTERS AND REGIONS 921699 DEFERRED COMPENSATION 496161 3732945 X 20364329 187332 187332 20176997 10000 10000 20186997 19140373 0 19140373 10000 10000 19150373 PART X, LINE 2: THE INSTITUTE IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE AND, EXCEPT FOR TAXES PERTAINING TO UNRELATED BUSINESS INCOME, IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES. NO PROVISION HAS BEEN MADE FOR INCOME TAXES AS THE INSTITUTE HAD NO MATERIAL UNRELATED BUSINESS INCOME. AI HOLDINGS IS A FOR-PROFIT SUBSIDIARY OF THE INSTITUTE, WHICH DID NOT HAVE TAXABLE INCOME IN 2016 OR 2015. THEREFORE, NO INCOME TAXES HAVE BEEN RECORDED. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE INSTITUTE AND RECOGNIZE A TAX LIABILITY IF THE INSTITUTE HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE INSTITUTE AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2016 AND 2015, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. EAST ASIA & THE PACIFIC 0 0 PROGRAM SERVICES EDUCATION, MEMBER SERVICES & ADVANCEMENT OF THE PROFESSION 311883 EUROPE 0 0 PROGRAM SERVICES MEMBER SERVICES & ADVANCEMENT OF THE PROFESSION 257546 MIDDLE EAST & NORTH AFRICA 0 0 PROGRAM SERVICES EDUCATION & ADVANCEMENT OF THE PROFESSION 51228 NORTH AMERICA 0 0 PROGRAM SERVICES EDUCATION, MEMBER SERVICES & ADVANCEMENT OFTHE PROFESSION 43933 SOUTH AMERICA 0 0 PROGRAM SERVICES EDUCATION & ADVANCEMENT OF THE PROFESSION 17754 0 0 0 0 0 0 682344 0 682344 0 0 0 0 0 0 PART I, LINE 3: TO ACHIEVE GLOBAL UNIFORMITY IN PROFESSIONAL STANDARDS AND ETHICAL PRACTICES, APPRAISAL INSTITUTE OFFERS CONTINUING EDUCATION AND DESIGNATION PROGRAMS OUTSIDE THE UNITED STATES. EXPENDITURES ARE RECORDED USING THE ACCRUAL METHOD AND IN U.S. DOLLARS. ALL EXPENSES ARE RECOGNIZED AS INCURRED BY THE PROGRAM. X 1 1 X X X 0 0 0 SCOTT ROBINSON MAI SRA AI-GRS; PRESIDENT 133100 0 0 0 45628 0 0 0 0 0 178728 0 0 0 FREDERICK H GRUBBE MBA CAE CEO 393806 0 52125 0 18000 0 12500 0 20960 0 497391 0 0 0 BEATA E SWACHA CPA CAE CFO 171576 0 3850 0 0 0 9274 0 18082 0 202782 0 0 0 JEFFREY E LISKAR ESQUIRE GENERAL COUNSEL 265108 0 5300 0 14041 0 12442 0 19583 0 316474 0 0 0 KENNETH R CHITESTER DIRECTOR, COMMUNICATIONS 136960 0 1650 0 0 0 7077 0 5906 0 151593 0 0 0 STEPHANIE COLEMAN MAI SRA AI-GRS AI-RRS; SENIOR MANAGER, ETHICS & STA 148994 0 2750 0 0 0 7546 0 6670 0 165960 0 0 0 EVAN WILLIAMS CAE IOM DIRECTOR, PROFESSIONAL SERVICES & RE 150792 0 2800 0 0 0 8202 0 19576 0 181370 0 0 0 WILLIAM E GARBER JR DIRECTOR, GOVERNMENT RELATIONS 196476 0 3150 0 6103 0 10329 0 17848 0 233906 0 0 0 ROBERTA H BORST MBA DIRECTOR, MARKETING & INTERNATIONAL 148252 0 0 0 0 0 2532 0 6462 0 157246 0 0 0 PART I, LINE 1A TRAVEL AND EXPENSE POLICY 3.05 - EXECUTIVE COMMITTEE SPOUSE - IN ACCORDANCE WITH IRS GUIDELINES, SPOUSE EXPENSES FOR TRAVEL, MEALS AND LODGING ARE GENERALLY NOT REIMBURSABLE BY THE APPRAISAL INSTITUTE. EXCEPTIONS INCLUDE INSTANCES WHERE THERE IS A REAL BUSINESS PURPOSE, IN CONFORMANCE WITH APPRAISAL INSTITUTE GUIDELINES, FOR THE PRESENCE OF A SPOUSE AT AN APPRAISAL INSTITUTE FUNCTION OR MEETING, OR AT AN APPROVED FUNCTION OR MEETING THAT THE APPRAISAL INSTITUTE PARTICIPATES. THE ELECTED OFFICERS AND CEO OF THE APPRAISAL INSTITUTE MAY TRAVEL WITH THEIR SPOUSES TO MEETINGS OF THE BOARD OF DIRECTORS, REGIONAL MEETINGS OF THE APPRAISAL INSTITUTE, AND OTHER MEETINGS. THE APPRAISAL INSTITUTE WILL REIMBURSE ORDINARY AND NECESSARY EXPENSES IN ACCORDANCE WITH ESTABLISHED POLICY. OFFICERS MAY ELECT TO COVER THE COST OF SPOUSE TRAVEL TO MEETINGS WITH FUNDS FROM THE OFFICER'S POOLED TRAVEL BUDGET. SPOUSAL TRAVEL REIMBURSEMENTS ARE TYPICALLY TREATED AS TAXABLE INCOME TO THE OFFICERS AND DIRECTORS IN ACCORDANCE WITH IRS RULES. PART I, LINE 3 COMPENSATION FOR ALL EMPLOYEES IS DETERMINED BY THE GUIDELINES CONTAINED IN THE INSTITUTE'S WAGE AND SALARY PROGRAM. THIS PROGRAM WAS DEVELOPED BY OUTSIDE HR CONSULTANTS IN CONJUNCTION WITH A CONSULTING FIRM. THE PROGRAM INCLUDES THE ESTABLISHMENT OF POSITION GRADES AND SALARY RANGES WHICH ARE BASED ON THE MARKET RATES OF ORGANIZATIONS OF SIMILAR SIZE AND BUDGET. THE CEO APPROVES ALL STAFF SALARIES. CEO'S PERFORMANCE IS EVALUATED EACH YEAR. THE PAST PRESIDENT OF THE ORGANIZATION IS RESPONSIBLE FOR COMPLETING THE CEO'S EVALUATION AND CAN SOLICIT INPUT FROM THE OTHER OFFICERS. CEO COMPENSATION IS EVALUATED USING INDUSTRY BENCHMARKS FOR SIMILAR ORGANIZATIONS BASED ON STAFF SIZE, BUDGET SIZE AND GEOGRAPHIC LOCATION. CEO COMPENSATION PACKAGE IS ALSO REVIEWED BY AN INDEPENDENT OUTSIDE CONSULTANT WHO RECOMMENDS AN APPROPRIATE SALARY RANGE FOR THE ORGANIZATION'S CEO POSITION. THE EXECUTIVE COMMITTEE APPROVES CHANGES TO THE CEO'S COMPENSATION PACKAGE. FORM 990, PART III - ORGANIZATION'S MISSION THE APPRAISAL INSTITUTE IS AN ILLINOIS NOT FOR PROFIT CORPORATION ORGANIZED UNDER THE ILLINOIS GENERAL NOT FOR PROFIT CORPORATION ACT OF 1986, AS AMENDED, (THE "ACT") FOR GENERAL EDUCATION, RESEARCH AND PROFESSIONAL ASSOCIATION PURPOSES RELATING TO APPRAISAL SERVICES. THE OBJECTIVES OF THE APPRAISAL INSTITUTE ARE TO SERVE THE GENERAL PUBLIC; TO ESTABLISH, MAINTAIN AND PUBLICIZE MINIMUM REQUIREMENTS FOR DESIGNATED MEMBERSHIP AND CONFER APPROPRIATE MEMBERSHIP DESIGNATIONS TO PROPERLY QUALIFIED APPRAISERS; TO FORMULATE AND MAINTAIN A CODE OF PROFESSIONAL ETHICS AND STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE FOR THE REAL ESTATE APPRAISAL PROFESSION AND ENFORCE THAT CODE AND STANDARDS ON AND FOR MEMBERS, CANDIDATES, PRACTICING AFFILIATES AND AFFILIATES OF THE APPRAISAL INSTITUTE; TO IDENTIFY THE BODY OF KNOWLEDGE IN WHICH THE APPRAISAL PROFESSION OPERATES; TO ESTABLISH, MAINTAIN AND PUBLICIZE EDUCATIONAL STANDARDS AND THE MEANS FOR EDUCATION FOR ITS MEMBERS, CANDIDATES, PRACTICING AFFILIATES, AFFILIATES AND OTHERS INTERESTED IN THE APPRAISAL AND REAL ESTATE PROFESSIONS; TO PROMOTE RESEARCH AND PUBLICATION OF MATERIALS THAT FURTHER THE EDUCATION AND PROFESSIONAL NEEDS OF THE APPRAISAL AND REAL ESTATE PROFESSIONS; TO ESTABLISH AND MAINTAIN EFFECTIVE LIAISON WITH GOVERNMENTAL AGENCIES CONCERNED WITH APPRAISING AND REPRESENT ITSELF IN LEGISLATIVE AND REGULATORY MATTERS CONCERNING THE APPRAISAL AND REAL ESTATE PROFESSIONS; TO PROVIDE AND MAINTAIN AN EFFECTIVE AND RESPONSIVE ORGANIZATION AND STAFF THAT SERVES THE NEEDS OF MEMBERS, CANDIDATES, PRACTICING AFFILIATES AND AFFILIATES; TO CONDUCT MEETINGS, CONFERENCES, SEMINARS, EDUCATIONAL COURSES AND OTHER ACTIVITIES THAT FURTHER THE OBJECTIVES OF THE APPRAISAL INSTITUTE; AND TO COOPERATE WITH OTHER ORGANIZATIONS ON ISSUES OF MUTUAL CONCERN SUCH AS LEGISLATIVE AND REGULATORY MATTERS, EDUCATION AND RESEARCH ACTIVITIES. FORM 990, PART VI, SECTION A, LINE 6 THE APPRAISAL INSTITUTE SHALL HAVE TWO (2) CATEGORIES OF MEMBERS: DESIGNATED MEMBERS AND HONORARY MEMBERS. A DESIGNATED MEMBER IS AN INDIVIDUAL WHO HOLDS AN APPRAISAL INSTITUTE DESIGNATION. AN HONORARY MEMBER IS AN INDIVIDUAL WHO, IN THE OPINION OF THE BOARD OF DIRECTORS, HAS MADE A SIGNIFICANT CONTRIBUTION TO THE APPRAISAL PROFESSION. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS SHALL CONSIST OF: 1) THE OFFICERS OF THE APPRAISAL INSTITUTE; 2) THE CHAIR AND VICE CHAIR OF EACH REGIONAL COMMITTEE; 3) ONE INTERNATIONAL DESIGNATED MEMBER IN GOOD STANDING ELECTED BY THE BOARD OF DIRECTORS; 4) ANY MEMBER OF THE AUDIT COMMITTEE WHO IS NOT SERVING ON THE BOARD BY VIRTUE OF HOLDING THE POSITION OF CHAIR OR VICE CHAIR OF A REGIONAL COMMITTEE; AND 5) THE CHIEF EXECUTIVE OFFICER OF THE APPRAISAL INSTITUTE. THE REGIONAL COMMITTEE, CONSISTING OF ELIGIBLE DESIGNATED MEMBERS AND/OR CANDIDATES, SHALL HOLD ELECTIONS FOR ALL REGIONAL POSITIONS, INCLUDING THE THIRD REGIONAL DIRECTOR, AT A REGULAR MEETING THE FIRST OF EACH YEAR. A REGIONAL DIRECTOR SHALL SERVE IN THE FOLLOWING POSITIONS DURING HIS OR HER TERM: 1) IN THE FIRST YEAR OF HIS OR HER TERM, THE REGIONAL DIRECTOR SHALL SERVE AS THE THIRD REGIONAL DIRECTOR; 2) IN THE SECOND AND THIRD YEARS OF HIS OR HER TERM, THE REGIONAL DIRECTOR SHALL SERVE AS VICE CHAIR OF THE REGION AND A NATIONAL DIRECTOR FROM THE REGION; AND 3) IN THE FOURTH AND FIFTH YEARS OF HIS OR HER TERM, THE REGIONAL DIRECTOR SHALL SERVE AS CHAIR OF THE REGION AND A NATIONAL DIRECTOR FROM THE REGION. FORM 990, PART VI, SECTION A, LINE 7B DESIGNATED MEMBERS IN GOOD STANDING, EXCEPT TEMPORARILY NON-PRACTICING MEMBERS, SHALL BE ENTITLED TO VOTE ON: (A) THE DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE APPRAISAL INSTITUTE; (B) ANY MERGER OR CONSOLIDATION AND THE SUBSTANTIAL TERMS, AND ANY SUBSTANTIAL AMENDMENT OF THE TERMS, OF ANY SUCH TRANSACTION; (C) ANY DISSOLUTION OF THE APPRAISAL INSTITUTE; AND (D) ANY AMENDMENT, RESTATEMENT OR REPEAL OF THE ARTICLES OF INCORPORATION, WITH ALL SUCH VOTES REQUIRING A SIXTY PERCENT (60%) MAJORITY OF THOSE DESIGNATED MEMBERS IN GOOD STANDING PRESENT AND VOTING FOR APPROVAL. DESIGNATED MEMBERS IN GOOD STANDING, EXCEPT TEMPORARILY NON-PRACTICING MEMBERS, SHALL HAVE ONE (1) VOTE AND SHALL BE ENTITLED TO ATTEND MEMBERSHIP MEETINGS AND VOTE BY PROXY. FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S 990. MANAGMEMENT REVIEWS THE COMPLETED FORM 990 DRAFT. ONCE A DRAFT OF THE 990 HAS BEEN COMPLETED, THE 990 IS DISTRIBUTED TO ALL AUDIT COMMITTEE AND BOARD OF DIRECTOR MEMBERS OF THE ORGANIZATION VIA A SECURE WEBSITE. THE BOARD MEMBERS ARE THEN ABLE TO REVIEW THE 990 DRAFT AND RESPOND WITH QUESTIONS, CONCERNS OR COMMENTS. AT THE END OF THE REVIEW PERIOD, INCLUDING ANY TIME NEEDED TO ADDRESS QUESTIONS AND COMMENTS, THE 990 IS FINALIZED AND FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN JANUARY OF EACH YEAR, ALL MEMBERS OF THE BOARD OF DIRECTORS ARE REQUIRED TO READ AND SIGN THE BOARD OF DIRECTORS CERTIFICATION AND DISCLOSURE STATEMENT. THIS STATEMENT REQUIRES THAT EACH BOARD MEMBER CERTIFIES THAT THEY "ARE NOT AWARE OF ANY MATTER IN WHICH I AM PERSONALLY INVOLVED THAT MAY PRESENT AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST." IF ANY POTENTIAL OR ACTUAL CONFLICT OF INTEREST ARISES DURING THEIR TERM, THEY AGREE TO IMMEDIATELY DISCLOSE THE CONFLICT AND IF APPROPRIATE REMOVE THEMSELVES FROM DISCUSSION, VOTE AND/OR FURTHER SERVICE. MEMBERS OF THE BOARD OF DIRECTORS AGREE AND UNDERSTAND THAT THEY MAY BE SUBJECT TO EVALUATION AND SELF-ASSESSMENT AT ANY TIME. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR ALL EMPLOYEES IS DETERMINED BY THE GUIDELINES CONTAINED IN THE INSTITUTE'S WAGE AND SALARY PROGRAM. THIS PROGRAM WAS DEVELOPED BY OUTSIDE HR CONSULTANTS IN CONJUNCTION WITH A CONSULTING FIRM. THE PROGRAM INCLUDES THE ESTABLISHMENT OF POSITION GRADES AND SALARY RANGES WHICH ARE BASED ON THE MARKET RATES OF ORGANIZATIONS OF SIMILAR SIZE AND BUDGET. THE CEO APPROVES ALL STAFF SALARIES. CEO'S PERFORMANCE IS EVALUATED EACH YEAR. THE PAST PRESIDENT OF THE ORGANIZATION IS RESPONSIBLE FOR COMPLETING THE CEO'S EVALUATION AND CAN SOLICIT INPUT FROM THE OTHER OFFICERS. CEO COMPENSATION IS EVALUATED USING INDUSTRY BENCHMARKS FOR SIMILAR ORGANIZATIONS BASED ON STAFF SIZE, BUDGET SIZE AND GEOGRAPHIC LOCATION. CEO COMPENSATION PACKAGE IS ALSO REVIEWED BY AN INDEPENDENT OUTSIDE CONSULTANT WHO RECOMMENDS AN APPROPRIATE SALARY RANGE FOR THE ORGANIZATION'S CEO POSITION. THE EXECUTIVE COMMITTEE APPROVES CHANGES TO THE CEO'S COMPENSATION PACKAGE. FORM 990, PART VI, SECTION C, LINE 19 APPRAISAL INSTITUTE BYLAWS ARE AVAILABLE TO THE PUBLIC ON OUR WEBSITE AT WWW.APPRAISALINSTITUTE.ORG. THE CONFLICT OF INTEREST POLICY IS AVAILABLE UPON REQUEST TO THE APPRAISAL INSTITUTE'S EXECUTIVE DEPARTMENT AND THE FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST TO THE APPRAISAL INSTITUTE'S FINANCE DEPARTMENT. FORM 990, PART XII, LINE 2C: THE ORGANIZATION'S BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS. PROPOSALS ARE REQUESTED AS DETERMINED NECESSARY, REVIEWED AND APPROVED BY GOVERNANCE. APPRAISAL INSTITUTE EDUCATION TRUST 200 W MADISON STREET SUITE 1500 CHICAGO IL 60606 366076334 GRANTS TO ELIGIBLE INDIVIDUALS IL 501(C)(3) 509(A)(3) N/A 0 APPRAISAL INSTITUTE RELIEF FOUNDATION 200 W MADISON STREET SUITE 1500 CHICAGO IL 60606 203950855 GRANTS TO ELIGIBLE INDIVIDUALS IL 501(C)(3) 509(A)(3) N/A 0 APPRAISAL INSTITUTE POLITICAL ACTION COMMITTEE 200 W MADISON STREET SUITE 1500 CHICAGO IL 60606 363739643 POLITCAL ACTION COMMITTEE IL 527 N/A 0 APPRAISAL INSTITUTE HOLDINGS INC 200 W MADISON STREET SUITE 1500 CHICAGO IL 60606 141898951 HOLDING COMPANY DE N/A C 1.00000 1 0 0 1 0 0 0 0 0 0 0 0 1 0 1 1 0 1 1 0 APPRAISAL INSTITUTE EDUCATION TRUST C 83063 APPRAISAL INSTITUTE REGION I 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 931085131 APPR APPRAISAL INSTITUTE REGION II 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 956007073 APPR APPRAISAL INSTITUTE REGION III 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 363827426 APPR APPRAISAL INSTITUTE REGION IV 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 113111524 APPR APPRAISAL INSTITUTE REGION V 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 351844185 APPR APPRAISAL INSTITUTE REGION VI 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 363967949 APPR APPRAISAL INSTITUTE REGION VII 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 990294918 APPR APPRAISAL INSTITUTE REGION VIII 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 760370518 APPR APPRAISAL INSTITUTE REGION IX 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 581409476 APPR APPRAISAL INSTITUTE REGION X 200 W MADISON ST SUITE 1500 CHICAGO IL 60606 650335543 APPR