2016-11-08T11:09:25-06:00 2015-12-31 521855942 Tate and Tryon 2021 L Street NW Suite 400 Washington DC 20036 990 2015-01-01 541797281 AIR FORCE AID SOCIETY INC AIRF 7039722650 241 18TH STREET SOUTH No 202 ARLINGTON VA 22202 sidney r heetland CHIEF FINANCIAL OFFICER 7039722650 2016-11-08 1 Elizabeth Heller P00397829 2022932200 2015 2017-02-10 21:41:12Z JOHN D HOPPER JR 241 18TH STREET SOUTH No 202 ARLINGTON VA 22202 88687770 0 X www.afas.org X 1942 VA SUpport U.S. airmen and their families with emergency financial and educational assistance. 20 20 26 20 0 0 5371701 5338291 3716 2860 17804535 10364860 171976 -99728 23351928 15606283 8813207 8837340 0 0 3022900 3235087 0 0 448135 2061567 1947724 13897674 14020151 9454254 1586132 191320282 183252774 1577374 1691469 189742908 181561305 Support Airmen and enhance the Air Force mission by relieving emergency financial distress, helping families achieve their educational goals, and improving the quality of Air Force life. In 2015, the Society spent $16 million in direct support to Airmen. 0 0 6673245 5709917 0 Education Assistance - The General Henry "Hap" Arnold Education Grant Program provides needs-based education grants to children and spouses of airmen. In 2015, the Society awarded almost $6 million in grants to 2,632 students to help pay for college. An additional 19 $5,000 merit-based scholarships were awarded to the highest achieving incoming freshmen. Scholarship selection is based on a student's GPA, SAT/ACT scores, activities, and a written essay. The Youth Employment Skills (YES) program offers high school students a chance to volunteer for on-base opportunities to learn valuable work skills, earning up to $1,500 in grants for college. In 2015, the YES program spent an additional $131,000 toward student education. 3334447 1655684 2860 EMERGENCY ASSISTANCE (EA) - THE EA PROGRAM IS PRIORITY NUMBER ONE FOR THE SOCIETY AND IS aimed towards helping relieve THE FINANCIAL PRESSURES ON AIRMEN AND THEIR FAMILIES BY ASSISTING WITH IMMEDIATE FINANCIAL NEEDS IN AN EMERGENCY SITUATION. SUPPORT IS PROVIDED THROUGH INTEREST-FREE LOANS AND GRANTS, DEPENDING ON THE INDIVIDUAL CIRCUMSTANCES SURROUNDING THE NEED. EA IS PROVIDED FOR BASIC LIVING EXPENSES, EMERGENCY TRAVEL, VEHICLE REPAIRS, FUNERAL COSTS, MEDICAL/DENTAL COSTS, CHILD/RESPITE CARE, AND MOVING EXPENSES. Air Force families can also receive help developing a family budget in an effort to stay on top of their finances after the assistance is provided. IN 2015, $1.7 MILLION IN GRANTS AND $6.4 MILLION IN INTEREST FREE LOANS WERE PAID OUT TO HELP AROUND 15,000 AIRMEN. 1725260 1471739 0 Community Enhancement Programs - The Society supports several base-level programs aimed at improving the quality of life for Air Force families. Funding for childcare programs was $787,000 in 2015 as over 18,000 children were cared for through the give parents a break, childcare for PCS, and childcare for volunteers programs. bundles for babies provides expecting families information on budgeting for the impact of a new baby while providing resources to assist along the way. in 2015, 3,700 tote bags filled with baby gear were given to attendees of the class at a cost of $155,000. The spouse employment program provided entry-level training to over 1,000 spouses during the year, costing $225,000. Other programs funded by the society were the car care, phone home, and heart link programs. 11732952 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 1 1 0 1 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 132 0 1 26 1 0 0 0 0 0 1 1 1 13 0 0 0 X 20 20 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CO CT FL GA HI IL KS KY MA MD ME MI MN MO MS NC ND NH NJ NM NY OH OK OR PA RI SC TN UT VA WA WV WI X X Sidney R Heetland 7039722613 241 18TH STREET SOUTH STE 202 ARLINGTON VA 222023409 Honorable William A Moorman PRESIDENT and trustee 2.00 X X 0 0 0 maj gen alfred k flowers ret vice president and trustee 2.00 X X 0 0 0 DR WILLIAM W JENNINGS TRUSTEE 1.00 X 0 0 0 MRS ELLEN JUMPER TRUSTEE 1.00 X 0 0 0 mr louis kingsland TRUSTEE 1.00 X 0 0 0 LT Gen Christopher F Burne TRUSTEE 1.00 X 0 0 0 MAJ GEN JAMES F MARTIN JR TRUSTEE 1.00 X 0 0 0 MR ELI COHEN TRUSTEE 1.00 X 0 0 0 cmsgt dennis l fritz ret TRUSTEE 1.00 X 0 0 0 dr jerrold I W mitchell TRUSTEE 1.00 X 0 0 0 MR JAMES C REAGAN TRUSTEE 1.00 X 0 0 0 CMSAF james a cody tRUSTEE 1.00 X 0 0 0 honorable eugene r sullivan tRUSTEE 1.00 X 0 0 0 CMSGT Athena cody RET TRUSTEE 1.00 X 0 0 0 LT GEN SAMUEL D COX TRUSTEE 1.00 X 0 0 0 HONORABLE DEBORAH LEE JAMES TRUSTEE 1.00 X 0 0 0 ms Kathleen k barchick TRUSTEE 1.00 X 0 0 0 lt gen dr thomas w travis TRUSTEE 1.00 X 0 0 0 mrs Betty welsh TRUSTEE 1.00 X 0 0 0 gen mark a welsh III trustee 1.00 X 0 0 0 lt gen john d hopper jr ret CHIEF EXECUTIVE OFFICER 40.00 X 215736 0 61727 col sidney r heetland ret CHIEF FINANCIAL OFFICER 40.00 X 159939 0 56662 col linda f egentowich ret CHIEF OPERATIONS OFFICER 40.00 X 160104 0 52350 Mrs Debra K vosburg DIRECTOR OF COMMUNICATIONS 40.00 X 111908 0 49835 mr michael c parnarouskis jr controller 40.00 X 113040 0 49796 Mrs Dorothy M Larkin Education Manager 40.00 X 101543 0 46906 862270 0 317276 6 0 1 0 SCHOLARSHIP AMERICA ONE SCHOLARSHIP WAY ST PETER MN 56082 PROGRAM ADMIN 329876 UBS REALTY INVESTORS LLC 10 STATE HOUSE SQ 15TH FLOOR HARTFORD CT 06103 INVESTMENT MANAGEMENT 176328 THE NORTHERN TRUST COMPANY 300 atlantic st ste 400 samford CT 06901 INVESTMENT MANAGEMENT 159149 50 South Capital Advisors LLC 50 South LaSalle St chicago IL 60603 Investment Management 130387 4 3261 779759 48208 4507063 172412 5338291 uncollectible loan repayments 900099 2860 2860 2860 4218221 4218221 78925340 72778701 6146639 6146639 6146639 183116 779759 302786 -119670 -119670 CLASS ACTION settlements 900099 16005 16005 MISCELLANEOUS 900099 3937 3937 19942 15606283 2860 0 10265132 32064 32064 8094993 8094993 710283 710283 706518 445106 193586 67826 1514351 954041 414932 145378 135735 85513 37191 13031 733319 461992 200930 70397 145164 91453 39775 13936 45540 45540 685578 685578 66000 41580 18084 6336 120569 75814 33435 11320 164463 103612 45063 15788 275883 173807 75591 26485 4464 2813 1223 428 9636 5843 3793 70907 44671 19429 6807 42649 26869 11686 4094 Education grant adminis 329876 329876 Other Fundraising COSTS 60804 60804 ALL other expenses 59917 41184 13228 5505 Bad Debt Expense 11438 11438 14020151 11732952 1839064 448135 943844 1097145 3426233 1260443 48465 84008 59937 122083 4561079 4046510 96691 116975 2312787 1616755 666491 696032 152658753 142657834 28858789 33171744 191320282 183252774 241591 328629 1335783 1362840 1577374 1691469 X 187875639 179658493 55465 91008 1811804 1811804 189742908 181561305 191320282 183252774 1586132 -9767735 0 X X 0 1 X 1 0 X 6249207 6685304 7335731 5371701 5338291 30980234 6249207 6685304 7335731 5371701 5338291 30980234 30980234 3849251 3943383 4155301 4231979 4218221 20398135 142874 231520 193737 449403 203058 1220592 52598961 78977 0.58900 0.60230 X SCHEDULE A, PART II, LINE 10: OTHER INCOME INCLUDES TWO MAIN ITEMS: (1) GROSS FUNDRAISING EVENT INCOME GENERATED BY THE SOCIETY'S ANNUAL USAF CHARITY BALL, WHICH WAS HELD ON MARCH 21, 2015. (2) CLASS ACTION LAWSUIT PROCEEDS DERIVED FROM LEGAL SETTLEMENTS REACHED WITH CORPORATIONS IN WHICH THE SOCIETY INVESTED FUNDS THROUGH ITS INVESTMENT PORTFOLIO. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1811804 1205 -1205 1811804 1786804 25000 118743 118743 1811804 1749804 37000 254417 254417 1786804 1749804 203431 203431 1749804 1724804 26218 -1218 1749804 1.00000 0 0 364273 283997 80276 500540 301909 198631 1447974 1030849 417125 696032 REAL ESTATE FUND 16460998 F HEDGE FUNDS 9715807 F PRIVATE EQUITY FUND 6994939 F 33171744 OTHER LIABILITIES 69181 ACCRUED COMPENSATION 301890 ACCRUED YES program LIABILITIES 306306 Post Retirement Liability 531215 Deferred 2015 charity ball income 45550 Deferred Lease Incentives 53068 accrued lease expense 55630 1362840 X 5334547 -9767735 -9767735 15102282 685578 -181577 504001 15606283 13516150 181577 181577 13334573 685578 685578 14020151 Part V, Line 4: The Society's endowment funds consist of donor-restricted contributions that are invested to provide future earnings to fund named education grants in perpetuity as part of the Society's General Henry Arnold Education Grant Program. All returns generated by the education endowment funds in a given year are used to fund the named grants awarded in that year. Part X, Line 2: The Society is exempt from payment of income taxes under the provisions of Section 501(c)(3) of the Internal Revenue Code. The Society believes that it has appropriate support for income tax positions taken. Part XI, Line 4b - Other Adjustments: CHARITY BALL EVENT EXPENSES -181,577. THIS IS THE DIRECT COST OF THE SOCIETY'S USAF CHARITY BALL FUNDRAISING event held in 2015. The 990 requires these costs to be netted against the fundraising event earnings in the statement of revenues in Part VIII. These costs are reported as fundraising expenses in the Society's 2015 Audit Report. Part XII, Line 2d - Other Adjustments: CHARITY BALL EVENT EXPENSES 181,577. See note for Part XI, Line 4B above for more information regarding the Charity Ball Events Expense. 1 East Asia and the Pacific 0 35 grants education grants 120628 East Asia and the Pacific 0 0 program services SEE PART V 82709 Europe (Including Iceland & Greenland) 0 77 grants education grants 226033 Europe (Including Iceland & Greenland) 0 0 program services SEE PART V 172605 Middle East and North Africa 0 0 program services phone cards 108308 Central America and the Caribbean 0 0 investments 9999526 East Asia and the Pacific 0 0 investments 40446 Europe (Including Iceland & Greenland) 0 0 investments 808172 North America 0 0 investments 529149 0 112 0 0 0 112 11558427 529149 12087576 education grants for college East Asia and the Pacific 58 96722 check 0 education grants for college Europe (Including Iceland & Greenland) 111 186272 check 0 emergency financial assistance East Asia and the Pacific 52 23906 check 0 emergency financial assistance Europe (Including Iceland & Greenland) 109 39761 check 0 car maintenance East Asia and the Pacific 113 0 4719 oil change coupon cost car maintenance Europe (Including Iceland & Greenland) 613 0 40793 oil change coupon cost AF Base Childcare services East Asia and the Pacific 1148 0 52431 childcare provided cost AF Base Childcare services Europe (Including Iceland & Greenland) 2086 0 83984 childcare provided cost AF Base Education Programs East Asia and the Pacific 198 0 11060 classes provided cost AF Base Education Programs Europe (Including Iceland & Greenland) 472 0 21673 classes provided cost bundles for babies East Asia and the Pacific 205 0 10623 tote bag of baby gear cost bundles for babies Europe (Including Iceland & Greenland) 400 0 20728 tote bag of baby gear cost phone cards for deployed airmen Middle East and North Africa 10175 0 108308 prepaid phone cards cost 1 0 0 1 0 0 Part I, Line 2: THE SOCIETY PROVIDES EDUCATIONAL AND EMERGENCY FINANCIAL ASSISTANCE GRANTS TO AIR FORCE FAMILIES STATIONED AT BASES LOCATED OUTSIDE THE UNITED STATES. THESE PROGRAMS ARE ADMINISTERED BY AIR FORCE SUPPORT STAFF AT THESE OVERSEAS BASES. RECIPIENTS OF EDUCATION GRANTS MUST SUBMIT AN INVOICE OR FINANCIAL STATEMENT FROM THE SCHOOL TO VERIFY THEIR ATTENDANCE AT THE INSTITUTION. EDUCATION GRANTS ARE PAID DIRECTLY TO THE SCHOOL. EMERGENCY FINANCIAL ASSISTANCE GRANTS ARE ISSUED ON A CASE BY CASE BASIS BASED ON ADEQUATE DOCUMENTATION OF THE FINANCIAL NEED OF THE AF MEMBER. ALL GRANTS PROVIDED BY THE SOCIETY ARE TRACKED BY THE SOCIETY'S DATABASE SYSTEM TO PROVIDE A HISTORICAL RECORD OF THE ASSISTANCE PROVIDED. PART I, LINE 3, Column (E): EAST ASIA AND THE PACIFIC AND EUROPE - THE SOCIETY FUNDS VARIOUS COMMUNITY ENHANCEMENT PROGRAMS AT AF BASES AROUND THE WORLD. THE PROGRAMS ACTIVE DURING 2015 AT OVERSEAS AF BASES IN EAST ASIA AND EUROPE INCLUDED CAR CARE, SPOUSE EMPLOYABILITY, AND BUNDLES FOR BABIES. CHARITY BALL 962875 779759 183116 7426 63054 232306 962875 779759 183116 7426 63054 232306 302786 -119670 1 education grants for college 2551 5385556 emergency financial assistance 3489 1592017 car maintenance 2061 74374 cost oil change coupon AF BASE CHILDCARE SERVICES 14963 651228 cost CHILDCARE PROVIDED AF BASE EDUCATION CLASSES 3881 267870 cost CLASSES PROVIDED BUNDLES FOR BABIES 3117 123948 cost TOTE BAGS OF BABY GEAR Part I, Line 2: AFAS provides education and emergency financial assistance grants to Air Force families. These programs are administered at AFAS HQ and at all U.S. AF Bases. Education grant recipients must submit proof of attendance and all grants are paid directly to the school. Emergency financial assistance is issued on a case by case basis with adequate documentation of the need. All assistance is tracked by the Society's database system to provide the historical record of the assistance provided. X 1 1 X X X X 0 0 0 0 0 0 0 0 0 lt gen john d hopper jr ret CHIEF EXECUTIVE OFFICER 196925 0 15000 0 3811 0 19073 0 42654 0 277463 0 0 0 col sidney r heetland ret CHIEF FINANCIAL OFFICER 147195 0 10000 0 2744 0 14148 0 42514 0 216601 0 0 0 col linda f egentowich ret CHIEF OPERATIONS OFFICER 147971 0 10000 0 2133 0 14217 0 38133 0 212454 0 0 0 Mrs Debra K vosburg DIRECTOR OF COMMUNICATIONS 106008 0 4333 0 1567 0 9931 0 39904 0 161743 0 0 0 mr michael c parnarouskis jr controller 107474 0 4583 0 983 0 10085 0 39711 0 162836 0 0 0 Part I, Line 1a The Society offers a taxable reimbursement program for all employees of up to $650 per year to cover the cost of health club dues or other fitness activities. Part I, Line 3 The Society's compensation committee is charged by the Board of Trustees to set compensation for the CEO. Each year, staff provides the committee with salary surveys and other comparative salary data to help the committee formulate a compensation package for the CEO. The Compensation Committee approves the full compensation package for the CEO on an annual basis, documenting the decision with a rebuttable presumption document signed by the Society President, who is also the chair of the compensation committee. 0 X 1 2995 AVG HIGH/LOW PRICE X AUCTION ITEMS 136 121209 FAIR VALUE X computer equipment 1 48208 fair value 0 1 1 Part I, Line 32b: (1) The Society maintains a policy of selling all donated securities upon receipt. The securities are transferred directly to a custody account within the Society's investment portfolio. The investment custodian is then directed to sell the donated securities. Upon the sale of the securities, the funds are made available for use on the Society's programs. (2) An Air Force Spouses Club helps run the silent auction held in conjunction with the annual Air Force Charity Ball. The club solicits in-kind donations to sell at the event and facilitates the sale of the donated items at the event. Form 990, Part VI, Section A, line 2 THE FOLLOWING BOARD OF TRUSTEES MEMBERS ARE HUSBAND AND WIFE: GEN MARK A WELSH, III, USAF AND MRS BETTY WELSH CMSAF JAMES A CODY, USAF AND CMSGT ATHENA CODY, USAF RET. Form 990, Part VI, Section B, line 11 THE SOCIETY'S 990 IS PREPARED INTERNALLY BY THE ACCOUNTING STAFF. THE FILING IS THEN REVIEWED BY THE SOCIETY'S OFFICERS. FOLLOWING THIS INTERNAL REVIEW, THE 990 IS SENT TO AN OUTSIDE ACCOUNTING FIRM FOR AN INDEPENDENT REVIEW. PRIOR TO FILING THE 990 ELECTRONICALLY WITH THE IRS, THE SOCIETY MAKES THE DRAFT FILING AVAILABLE TO THE FULL BOARD OF TRUSTEES VIA EMAIL. The 990 is then filed electronically with the IRS, and the public version of the filing is posted to the Society's website at www.AFAS.org." Form 990, Part VI, Section B, line 12c The Society requires its officers, staff members, and all members of the Board of Trustees to disclose potential conflicts of interest on an annual basis. The statements submitted by each person are reviewed by staff and reported to the Society's Audit committee. If any conflicts are determined to exist, the Audit Committee would decide the appropriate action to be taken. The matter would then be presented to the full Board of Trustees where a vote on the committee's recommendation would be taken. Form 990, Part VI, Section B, line 15 The determination of executive compensation is handled by the Board-appointed Compensation Committee. This committee is responsible for preparing and reviewing the CEO's compensation on an annual basis. The review of officer compensation includes comparisons with similar military relief organizations, other non-profit organizations, and published salary guides. The Compensation Committee also reviews the salary levels, proposed bonuses, and annual wage increases of the other officers and the full staff. Form 990, Part VI, Section C, line 19 The Society provides direct public access to its annual audit report and IRS 990 tax filing online through its website at www.afas.org. Governance documents and the conflict of interest policy are available upon request. FORM 990, PART XII, LINE 2C: THE AUDIT OVERSIGHT PROCESS HAS REMAINED UNCHANGED FROM THE PREVIOUS YEAR and remains the purview of the Society's Audit Committee.