2017-07-10T11:04:51-05:00 2016-08-31 GRANT THORNTON LLP 2001 MARKET STREET SUITE 700 PHILADELPHIA PA 19103 990 2015-09-01 231352289 Philadelphia Orchestra Association % MARIO MESTICHELLI PHIL 2158931900 One South Broad Street 14th Floor Philadelphia PA 19107 MARIO MESTICHELLI Treasurer 2158931900 2017-06-30 true Frank Giardini P00532355 2155614200 2015 2021-01-29 14:40:06Z Allison Vulgamore One South Broad St 14th Fl Philadelphia PA 19107 60505428 false X www.philorch.org X 1903 PA The Philadelphia Orchestra is one of the leading orchestras in the world through over a century of acclaimed concert performances,educational concerts,and best-selling recordings. 60 54 428 450 -15659 -15659 32283051 30024370 16507277 18683443 6871105 5340539 2589393 2682117 58250826 56730469 0 0 0 0 30528413 30870026 600188 510843 4031531 18697860 19212714 49826461 50593583 8424365 6136886 91025521 96257537 20423370 19377160 70602151 76880377 X The Philadelphia Orchestra creates and shares music of the highest caliber for people of all ages and backgrounds. The Orchestra is committed to excellence, innovation, and creativity, onstage and off, and serves its many communities at home and abroad by performing music, encouraging music-making, and improving the quality of life. false false 34383996 19268082 Orchestral Music Programs: The Philadelphia Orchestra took part in approximately 200 Performance events throughout the year at locations in the U.S. and abroad: subscription concerts (84) Special Concerts (16) Family and School concerts and other Educational Performances (41), free neighborhood Events or concerts (12), Summer programs (18), Tours and Regional Concerts (29). 34383996 true true false true false false false false false true true false false true true true false true false false true false false true true false false false false true false false false false false false false false true false false false false true true true false false true 234 0 true 428 true true true false false false false true true false false false false X 60 54 true false false false true true true true true false false false true true true true true false false false AL AK AZ AR CA CT DC FL GA IL KS KY LA ME MD MA MI MN MS MO NH NJ NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X X MARIO MESTICHELLI 2158931900 ONE SOUTH BROAD ST 14TH FL Philadelphia PA 19107 Richard B Worley Board Member/Chairman 10.0 10.0 X X 0 0 0 Mark Dichter Board Member/Vice Chairman 5.0 X X 0 0 0 Stacy Maria Dutton Board Member/Vice Chairman 5.0 X X 0 0 0 Martin A Heckscher Board Member/Vice Chairman 5.0 X X 0 0 0 W Anthony Hitschler Board Member/Vice Chairman 5.0 X X 0 0 0 Joseph H Jacovini Board Member/Vice Chairman 5.0 X X 0 0 0 John H McFadden Board Member/Vice Chairman 5.0 X X 0 0 0 Hillarie L Morgan Board Member/Vice Chairman 5.0 X X 0 0 0 Ralph W Muller Board Member/Vice Chairman 5.0 X X 0 0 0 Caroline B Rogers Board Member/Vice Chairman 5.0 2.0 X X 0 0 0 Adele K Schaeffer Board Member/Vice Chairman 5.0 10.0 X X 0 0 0 Charles K Valutas Board Member/Vice Chairman 5.0 X X 0 0 0 Ramona A Vosbikian Board Member/Vice Chairman 5.0 X X 0 0 0 Raymond H WelshEnd Feb 2016 Board Member/Vice Chairman 5.0 X X 0 0 0 Sarah Miller Coulson Board Member/Secretary 5.0 X X 0 0 0 John A Affleck Board Member 2.0 X 0 0 0 Peter A Benoliel Board Member (End Oct 2015) 2.0 X 0 0 0 Elaine Woo Camarda Board Member (Beg Apr 2016) 2.0 X 0 0 0 Kathleen Chimicles Board Member 2.0 X 0 0 0 Putnam Coes III Board Member 2.0 X 0 0 0 Michael Cone Board Member 2.0 X 0 0 0 Kenneth E Davis Board Member 2.0 X 0 0 0 Elise du Pont Board Member 2.0 X 0 0 0 Alexandra T Edsall Board Member 2.0 X 0 0 0 Joseph M Field Board Member 2.0 X 0 0 0 Mark J Foley Board Member 2.0 X 0 0 0 Gary A Frank Board Member (Beg Apr 2016) 2.0 X 0 0 0 Judith F Glick Board Member 2.0 X 0 0 0 Joshua S Gross Board Member 2.0 X 0 0 0 Harry R Halloran Jr Board Member 2.0 X 0 0 0 Lauren Hart Board Member 2.0 X 0 0 0 Thomas Herr Board Member 2.0 X 0 0 0 David F Hoffman Board Member 2.0 X 0 0 0 Osagie O Imasogie Board Member 2.0 X 0 0 0 Patricia Harron Imbesi Board Member 2.0 X 0 0 0 Ronald L Kaiserman Board Member 2.0 X 0 0 0 Michael Kihn Board Member 2.0 X 0 0 0 Neil W Krouse Board Member 2.0 X 0 0 0 Bruce G Leto Board Member (Beg Apr 2016) 2.0 X 0 0 0 Joseph M Manko Sr Board Member 2.0 X 0 0 0 Sandra G Marshall Board Member 2.0 X 0 0 0 Robert E Mortensen Board Member 2.0 X 0 0 0 Henry N Nassau Board Member 2.0 X 0 0 0 Honorable Michael Nutter Board Member (End Jan 2016) 2.0 X 0 0 0 Lorraine S Popowich Board Member 2.0 X 0 0 0 Ajay Raju Board Member 2.0 X 0 0 0 Robert M Rechnitz Board Member 2.0 X 0 0 0 Harold S Rosenbluth Board Member 2.0 X 0 0 0 John R Saler Board Member 2.0 2.0 X 0 0 0 Scott F Schumacker Board Member 2.0 X 0 0 0 Roberto R Sella Board Member 2.0 X 0 0 0 Peter L Shaw Board Member (Beg Oct 2015) 2.0 X 0 0 0 Constance S Smukler Board Member 2.0 X 0 0 0 Lindy Snider Board Member 2.0 X 0 0 0 Marcia Wells Board Member 2.0 X 0 0 0 James W Zug Board Member 2.0 X 0 0 0 Allison Vulgamore Board Member/President/CEO 40.0 10.0 X X 751564 0 51276 Mario Mestichelli Board Member/Treasurer/CFO 40.0 10.0 X X 218610 0 42848 Ohad Bar-David Musician/Board Member 40.0 X 152221 0 40206 Yumi Kendall Musician/Board Member 40.0 X 164439 0 20293 David Kim Musician/Board Member 40.0 X 387345 0 41027 John Koen Musician/Board Member 40.0 X 161830 0 38115 Richard Woodhams Musician/Board Member 40.0 X 263885 0 23742 David Bilger Musician 40.0 X 266213 0 40281 Jeffrey Khaner Musician 40.0 X 268317 0 37386 Ricardo Morales Musician 40.0 X 283643 0 30811 Hai-ye Ni Musician 40.0 X 249339 0 20451 Jennifer Montone Ressler Musician 40.0 X 257801 0 37263 3425207 0 423699 118 false true false Yannick Nezet-Seguin 1270 CHABANEL EAST MONTREAL 0 CA QC H2M 1E1 Music Director 1339333 Action Marketing and Fulfillment In 805 West 5th Street Suite 10 LANSDALE PA 19466 Printing 589872 Opus 3 Artists LLC 5670 Wilshire Blvd Suite 1790 LOS ANGELES CA 90036 Artistic Management 516910 SDA Services Inc 5757 West Century Blvd Suite 300 LOS ANGELES CA 90045 Telemarketing 302553 Curley Hessinger Johnsrud LLP 2000 Market Street Suite 2850 PHILADELPHIA PA 19103 Legal 248088 18 568056 1987980 1174899 26293435 801053 30024370 PHILADELPHIA CONCERTS 711130 12185017 12185017 TOURS 711130 3173242 3173242 SUMMER CONCERTS 711130 1727536 1727536 OUT OF TOWN CONCERTS 711130 1295000 1295000 EDUCATION CONCERTS 711130 302648 302648 18683443 3927134 4483 3922651 0 79665 79665 0 0 0 4862216 3448811 1413405 1413405 1413405 348769 568056 326148 22621 22621 0 0 SHARED SERVICES INCOME 900099 2015334 2015334 EQUITY EARNINGS IN JOINT VENTURE 900099 173835 193977 -20142 MISCELLANEOUS INCOME 900099 390662 390662 2579831 56730469 19268082 -15659 7453676 0 0 0 0 4072327 1326061 2261615 484651 0 20205405 16375455 2665779 1164171 2220555 1908436 230697 81422 2897852 1993551 668396 235905 1473887 1060100 309994 103793 0 199811 4000 190816 4995 91567 91567 120004 120004 510843 510843 56894 56894 1326969 142804 678104 506061 1376873 1361082 838 14953 1625148 32246 1466426 126476 768722 768722 182799 182799 2308999 1928200 377549 3250 3712442 3347616 124712 240114 0 43475 32165 11310 0 0 421726 421726 385349 173434 211915 ARTISTIC EXPENSES 4089911 4089911 MARKETING EXPENSES 472633 472633 CULTIVATION EXPENSES 276284 276284 EQUIPMENT & MUSICAL RENTAL 163161 163161 1589947 295140 1147508 147299 50593583 34383996 12178056 4031531 130646 600782 10443266 9631999 8015122 12111598 1580423 1167564 0 0 0 0 66752 44660 0 0 1665947 1651560 9092000 5559000 3509000 3533000 59640207 61532676 0 0 793140 636121 0 0 5181018 5347577 91025521 96257537 3065089 2933138 0 0 8850249 7513982 0 0 0 0 0 0 0 0 0 0 8508032 8930040 20423370 19377160 X 634000 -34000 3910000 8291000 66058151 68623377 70602151 76880377 91025521 96257537 X 6136886 28117 113223 X false true X true false X 32616978 28826678 25217308 32283051 29813570 148757585 13302760 14291112 16250398 16507277 18683443 79034990 0 0 0 45919738 43117790 41467706 48790328 48497013 227792575 7099000 6026000 3944000 12748000 12912000 42729000 0 7099000 6026000 3944000 12748000 12912000 42729000 185063575 1540646 1423574 4253848 4288326 4006799 15513193 0 1540646 1423574 4253848 4288326 4006799 15513193 0 19586000 2708015 2795596 2722649 2928600 30740860 67046384 47249379 48517150 55801303 55432412 274046628 0.67530 0.67923 0.05661 0.06156 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false true 120004 120004 PART II-B, 1I The Philadelphia Orchestra Association paid consulting firms Duane Morris and Roberti and White, $50,004 and $70,000 respectively during fiscal year ended August 31, 2016. These firms were hired to solicit funds from governmental entities on behalf of the Philadelphia Orchestra Association; however, since these firms engage in lobbying activities that indirectly benefit the orchestra, the organization is taking a prudent course and disclosing these fees in the Form 990. 59640206 2897422 2495362 3500314 61532676 53573248 10857889 -2136318 2654613 59640206 48632448 2759786 4734545 2553531 53573248 48134000 1436000 3844000 4782000 48632000 89742000 1595000 -38320000 4883000 48134000 0.01000 0.99000 true true true 1467000 705000 762000 586000 460000 126000 6744000 4394000 2350000 295000 295000 3533000 BENEFICIAL INTERESTS IN TRUSTS 5345937 DUE FROM AFFILIATE 1640 5347577 0 ACCRUED BENEFIT OBLIGATION 8930040 8930040 X 59700006 -95239 258666 2479962 2643389 57056617 -326148 -326148 56730469 56050623 208513 5305421 5513934 50536689 56894 56894 50593583 SCHEDULE D, PART V, LINE 1 Endowment Funds: The Philadelphia Orchestra Association's (Association) consolidated audited financial statements include endowment funds that consist of endowment assets held by the Association and endowment assets held in trust at PNC. The financial data reported in Part V of Schedule D excludes that of the Trust since those endowment funds are set up as a separate trust organization that reports its own Form 990. The endowment funds, set up as a Trust, are held and administered by PNC Bank in the Philadelphia Orchestra Association Endowment (EIN: 23-6227203). The Association's Board of Directors can draw down revenue from the Trust pursuant to the application of the Board approved spending policy in accordance with Pennsylvania law and specific election by the Board. The draw is subject to all donor imposed restrictions. This draw-down is represented as a charitable contribution from the Endowment Fund on the Association's Form 990. The value of the Trust assets was $21,352,000 and $21,882,000 in FY16 and FY15, respectively. SCHEDULE D, PART X, LINE 2 Fin 48 (ASC 740) Footnote Under provisions of the internal revenue code, section 501(C)(3), and the applicable income tax regulations of Pennsylvania, the association is exempt from taxes on income other than unrelated business income. The association recognizes or derecognizes a tax position based on a more likely than not threshold. This applies to positions taken or expected to be taken in a tax return. The association does not believe its consolidated financial statements include any material uncertain tax positions. Any interest and penalties, if applicable, would be recorded in administrative expenses. The association is no longer subject to U.S. federal and state tax examinations for years prior to the year ended August 31, 2013. Schedule D, Parts XI/XII The Philadelphia Orchestra Association prepares consolidated audited financial statements that include the operation of: Academy of Music of Philadelphia, Inc. Academy of Music of Philadelphia Endowment Trust Philadelphia Orchestra Association Endowment Trust The reconciliation in schedule D, parts XI and XII reflects a reconciliation back to the associations activities within those financial statements. Part XI Reconciliation of Revenue Amounts included in financial statements revenue section, but not on form 990 revenue section: Line 2(d) - other Investment activity - poa trust endowment $ 916,870 Spending draw from poa trust assets (1,324,293) Revenues from academy of music 2,381,714 Investment activity - academy of music 495,950 Trust investment fees (18,911) Investment mgmt expenses (reclass) (56,894) Postretirement Adjustment 85,525 Rounding 1 ------------- Total $ 2,479,962 Part xi reconciliation of revenue Amounts included on form 990 revenue section, but not in financial statements revenue section: Line 4(b) - other Special events expense (reclass) $(326,148) Part XII Reconciliation of Expenses Amounts included in financial statements expense section, but not on form 990 expense section: Line 2(d) - other Academy of music expenses $4,979,273 Special events expense (reclass) 326,148 ------------ Total $5,305,421 Part xii reconciliation of expenses Amounts included on form 990 expense section, but not in financial statements expense section: Line 4(b) - other Investment mgmt expense (reclass) $56,894 East Asia and the Pacific Program Services Orchestra Performances 3510412 3510412 3510412 true false false false false false X X X X X X X true Barbara Phillips Consulting false 57600 Grenzebach Glier Assoc Consulting false 128441 Richard F Bohrer Consulting Consulting false 67800 Alison Grove Consulting Consulting false 149272 SDA Telefunding Services Telefunding false 167546 104806 62740 167546 507919 62740 AL AK AZ AR CA CT DC FL GA IL KS KY LA ME MD MA MI MN MS MO NH NJ NC ND OH OK OR PA RI SC TN UT VA WA WV WI Opening Night 169312 8399 160913 122839 75789 OPN Night 2 393040 261849 131191 3 354472 297807 56665 56116 71404 916824 568055 348769 178955 147193 326148 22621 Additional Information In order to provide for staff vacancies experienced during the year in the development department, independent contractors were engaged to fill those roles. Barbara Phillips consulting- Major Gift Event planning and campaign strategy Grenzebach, Glier & Associates- Annual Fund strategic growth plan consulting and wealth screening Richard F Bohrer Consulting- Government and Foundation Grant Writer Alison Grove Consulting- Corporate Giving and Global Initiatives X true true X X X X X false false false false false false false true false Allison Vulgamore Board Member/President/CEO 447500 155000 149064 21200 30076 802840 Mario Mestichelli Board Member/Treasurer/CFO 218303 307 17623 25225 261458 Ohad Bar-David Musician/Board Member 151705 516 13197 27009 192427 Yumi Kendall Musician/Board Member 164343 96 10106 10187 184732 David Kim Musician/Board Member 387069 276 11393 29634 428372 John Koen Musician/Board Member 161650 180 11990 26125 199945 Richard Woodhams Musician/Board Member 262361 1524 13504 10238 287627 David Bilger Musician 265937 276 13197 27084 306494 Jeffrey Khaner Musician 267801 516 13197 24189 305703 Ricardo Morales Musician 283523 120 9594 21217 314454 Hai-ye Ni Musician 249219 120 10179 10272 269790 Jennifer Montone Ressler Musician 257693 108 10179 27084 295064 Schedule J, Part I, Line 1 Payments were made to the President & CEO, Allison Vulgamore, pursuant to a written employment contract that was approved by the appropriate governing body. Ms. Vulgamore received personal services (Financial Planning). The fair market value of such personal services was included in her calendar year 2015 Form W-2. Schedule J, Part I, Line 7 The CEO has an employment contract containing a performance based compensation directive that makes her eligible to receive a non-fixed payment in addition to her base compensation. All elements of compensation including this non-fixed payment are subject to board review and approval. Schedule J, Part I, Line 8 MS. VULGAMORE ENTERED INTO A NEW EMPLOYMENT CONTRACT WITH THE PHILADELPHIA ORCHESTRA ASSOCIATION ON JANUARY 1, 2015. THIS AGREEMENT WILL TERMINATE ON DECEMBER 31, 2017. X 37 645305 FMV X 1 5748 FMV X MUSICAL INSTRUMENTS 1 150000 FMV false true true Question 32A To the extent that the organization receives donations of securities, its investment broker/manager is tasked with selling those securities in exchange for cash. Form 990, Part VI, Line 2 The Philadelphia Orchestra Association has several board members with business relationships with each other, as follows: Board Members John Affleck and Martin Heckscher have a business relationship. Board Members Sarah Miller Coulson, Robert Rechnitz and Putnam Coes III have a business relationship with each other and with Richard Worley. Board Members Joseph Field and John McFadden have a business relationship. Board Members Joseph Jacovini and Ajay Raju have a business relationship. Board Members Roberto Sella, Fabio Terlevich and Richard Worley have a business relationship. Additionally, Board Members, Richard Worley and Sarah Miller Coulson have a family relationship. Form 990, Part VI, Lines 6, 7A & 7B Organizations Members/Stockholders: The membership of The Philadelphia Orchestra Association shall consist of life and annual members. Life members shall be those persons who on or before September 22, 1958 paid into the Endowment Fund or any other fund established by the Association not less than the sum of Five Hundred Dollars. Annual members shall consist of those persons (individual or corporate) who from time to time shall contribute to The Philadelphia Orchestra Association not less than such amount as the Board of Directors may from time to time designate as the amount of the contribution by which a person shall become a member. A member, by virtue of a contribution of not less than the amount thus fixed, shall be a member until the adjournment of the Annual Meeting next following the close of the fiscal year of the Association to the accounts of which the contribution was applied. In all elections and at all meetings of the Association each member of record on the tenth day preceding the date of an election or of a meeting shall be entitled to one vote and to notice of the election or meeting. Voting by members hall be in person or by proxy. The Board of Directors may from time to time establish classifications of members who are members by virtue of contributing to the association as provided for in this article and make available to such members such special privileges as the board may determine, depending upon the classification of membership. Form 990, Part VI, Line 11A The Form 990 was prepared by an international accounting firm in conjunction with the organization's finance department. A copy of the Form 990 is circulated to the board before it is filed. However, Schedule B is redacted from the Form 990 before it is circulated to the Board to protect the identity of certain donors who wish to remain anonymous. As such, the organization has checked 'No' to Part VI, Question 11a. Schedule B will be made available to those board members who wish to inspect it individually. Form 990, Part VI, Line 12C The organization monitors and enforces compliance by following these procedures: 1. Any interested person has a duty to disclose the transaction or arrangement; 2. The interested person presents this potential conflict of interest to the Board/Committee; 3. The Board/Committee determines whether there is a conflict of interest; 4. Board/Committee/interested person follows predetermined procedures to address the issue if one exists; 5. The above will be recorded in the minutes of the meetings of the Board/Committee. Each director, officer and member of a committee with Board-delegated powers shall annually respond to a questionnaire and sign a statement which affirms such person: a. Has received a copy of the conflict of interest policy, b. Has read and understands the policy, c. Has agreed to comply with the policy, d. Understands the Organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes; and e. Provides such information as the POA requires to prepare the POA's annual IRS form 990. Board members were requested to complete a conflict of interest questionnaire. The request was made multiple times, however not all board members or officers responded. The Organization feels that it has made a reasonable effort to disclose existing conflicts of interest. Form 990, Part VI, Lines 13 and 14 Philadelphia Orchestra Association established whistleblower and document retention policies that are followed by the Association, as well as its subsidiaries. Form 990, Part VI, Line 15 The Philadelphia Orchestra association undertakes a thorough process to ensure that the executive compensation it pays to its top management officials and all of its officers and key employees of the Association is reasonable given the market in which the Association operates. In relevant part, the Board of Directors has established a Human Resources Committee of independent persons that have no personal interest in the proposed compensation agreements. With respect to the CEO, The H/R Committee Chair and several other independent members of the Board, including the Chair of the Board, contracted with a search firm to assist in the identification and selection of the CEO. The outcome of this process, including comparable compensation data, gathered by members of the Committee was presented to the full Board. Documents, emails and other writings created contemporaneously were used as the basis for the selection and compensation decisions. With respect to hiring and compensation decisions for other key personnel, the CEO contracted with a search firm to assist in the identification and selection of the key personnel. There is also a full-time Human Resources Department supporting this function and the Association receives regular compensation data in connection with its ongoing membership in The League of American Orchestra service organization. The outcome of this process, including comparable compensation data, gathered by the CEO with the assistance of the search firm was described to the independent Chair of the Human Resources Committee. Documents, emails and other writings created contemporaneously were used as the basis for the selection and compensation decisions. Form 990, Part VI, Line 19 The taxpayer makes its Form 990 and audited Financial Statements available to the public by retaining a copy at its place of business and on its website at www.philorch.org. The Form 990 is likewise published on the internet at www.guidestar.org. The organization's governing documents and conflict of interest policy are not ordinarily made available to the public, but, if requested, will be provided at management's discretion. Form 990, Part XI, Line 9 Reconciliation of Net Assets Postretirement benefit obligation (POA) $ 80,808 Gift in Kind revenue 11,550 Other 20,865 --------- Total $113,223 Philadelphia Orchestra Assoc Endowment 1600 Market Street- Tax Dept Philadelphia PA 19103 236227203 Supporting PA 501(c)(3) 11-Type I POA true The Academy of Music Philadelphia Inc One South Broad St 14th Floor Philadelphia PA 19107 231501159 Restoration PA 501(c)(3) 11-Type I POA true Ticket Philadelphia 1500 Walnut Street 17th floor Philadelphia PA 19102 455625606 Ticket Sales PA KimmelCenter RELATED 176613 1057480 false -20142 true 0.30805 false true true false false false false false false false false true false true true false true false true Philadelphia Orchestra Endowment Fund s 1324293 FMV The academy of music of philadelphia inc c 452887 FMV