2016-03-31T18:54:46-05:00 2015-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2014-10-01 860107517 THE HEARD MUSEUM HEAR 6022510221 2301 N CENTRAL AVE PHOENIX AZ 85004 JOHN BULLA INTERIM CEO 6022510221 2016-03-30 1 STEPHEN E LIVINGSTON CPA P00317845 6022662248 2014 2016-08-17 19:52:53Z JOHN BULLA 2301 N CENTRAL AVE PHOENIX AZ 85004 11298286 0 X WWW.HEARD.ORG X 1929 AZ TO EDUCATE THE GENERAL PUBLIC ABOUT THE ARTS AND CULTURE OF INDIGENOUS PEOPLES OF THE AMERICAS WITH A FOCUS ON THE SOUTHWEST USA. 29 29 143 433 0 0 3221987 4290421 1993273 2020012 311125 107356 1968945 1438256 7495330 7856045 0 0 0 0 3737813 3751866 50000 60000 696720 5022225 4867719 8810038 8679585 -1314708 -823540 25043976 24713433 2150545 2792834 22893431 21920599 X THE MISSION OF THE HEARD MUSEUM IS TO EDUCATE VISITORS AND PROMOTE GREATER PUBLIC UNDERSTANDING OF THE ARTS, HERITAGE AND LIFE WAYS OF THE INDIGENOUS PEOPLES OF THE AMERICAS, WITH AN EMPHASIS ON AMERICAN INDIAN TRIBES AND OTHER CULTURES OF THE SOUTHWEST. 0 0 6602813 3532604 SEE SCHEDULE O 6602813 1 1 0 0 0 0 0 1 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 1 0 1 1 1 0 0 0 1 0 0 0 1 139 0 1 143 1 0 0 0 0 0 1 1 1 1 0 0 0 X 29 29 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AZ X X JOEY STILLMAN 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 LELAND W PETERSON CHAIR 10.00 X X 0 0 0 SUSAN H NAVRAN VICE CHAIR 4.00 X X 0 0 0 PATRICIA K HIBBELER SECRETARY 4.00 X X 0 0 0 MARK SCHIAVONI TREASURER 4.00 X X 0 0 0 SHIRLEY AVERY TRUSTEE 1.00 X 0 0 0 ARLENE K BEN-HORIN TRUSTEE 1.00 X 0 0 0 HOWARD R BERLIN TRUSTEE 1.00 X 0 0 0 DR GEORGE BLUE SPRUCE JR TRUSTEE 1.00 X 0 0 0 MARK B BONSALL TRUSTEE 1.00 X 0 0 0 GREGORY BOYCE TRUSTEE 1.00 X 0 0 0 STEVEN R CHANEN TRUSTEE 1.00 X 0 0 0 F WESLEY CLELLAND III TRUSTEE 1.00 X 0 0 0 CRAIG COHEN MD TRUSTEE 1.00 X 0 0 0 W DAVID CONNELL TRUSTEE 1.00 X 0 0 0 ROBERT A COWIE TRUSTEE 1.00 X 0 0 0 CHRISTOPHER CLARK DESCHENE TRUSTEE 1.00 X 0 0 0 RYAN P DESMOND TRUSTEE 1.00 X 0 0 0 ROBERT S DIAMOND TRUSTEE 1.00 X 0 0 0 JOHN GRAHAM TRUSTEE 1.00 X 0 0 0 CARRIE L HULBURD TRUSTEE 1.00 X 0 0 0 JAMES R HUNTWORK TRUSTEE 1.00 X 0 0 0 JEFFREY H KAHN TRUSTEE 1.00 X 0 0 0 SUSAN KOLMAN TRUSTEE 1.00 X 0 0 0 STEPHEN R LEWIS TRUSTEE 1.00 X 0 0 0 MARIGOLD LINTON TRUSTEE 1.00 X 0 0 0 JOHN LOMAX TRUSTEE 1.00 X 0 0 0 IVAN MAKIL TRUSTEE 1.00 X 0 0 0 JOHN MELAMED TRUSTEE 1.00 X 0 0 0 ALICE AJ MONONGYE TRUSTEE 1.00 X 0 0 0 ELIZABETH MURFEE DECONCINI TRUSTEE 1.00 X 0 0 0 SCOTT H O'CONNOR TRUSTEE 1.00 X 0 0 0 ARTHUR L PELBERG MD TRUSTEE 1.00 X 0 0 0 WICK PILCHER TRUSTEE 1.00 X 0 0 0 WILLIAM RIDENOUR TRUSTEE 1.00 X 0 0 0 JOETTE B SCHMIDT TRUSTEE 1.00 X 0 0 0 JOHN B STITELER TRUSTEE 1.00 X 0 0 0 DAVID WILSHIN TRUSTEE 1.00 X 0 0 0 JAMES PEPPER HENRY CEO 40.00 X 247000 0 4103 JOEY STILLMAN DIRECTOR OF FINANCE 40.00 X 85000 0 4103 JOHN BULLA INTERIM CEO 40.00 X 116250 0 4103 WILLIAM BRUCE MCGEE DIRECTOR OF RETAIL SALES 40.00 X 104100 0 4103 ANN MARSHALL DIRECTOR OF CURATION & EDUCATION 40.00 X 104000 0 4103 656350 0 20515 4 0 1 0 0 855090 274502 130447 3030382 234592 4290421 ADMISSIONS 611710 908054 908054 FAIR INCOME 900099 545778 545778 PRIVATE USE FEES 721000 537623 537623 EDUCATIONAL REVENUE 611710 28557 28557 2020012 128375 128375 23196 23196 854475 875494 -21019 -21019 -21019 30300 274502 170340 -140040 -140040 3908999 2396407 1512592 1512592 MISCELLANEOUS 900099 42508 42508 42508 7856045 3532604 0 33020 389931 114095 181820 94016 4131 1239 2066 826 2838003 2275935 424824 137244 285210 231641 42080 11489 234591 178091 40693 15807 26478 26478 39174 39174 60000 60000 52018 52018 376745 256766 119979 304707 304707 277944 214730 44284 18930 114424 45458 37820 31146 524063 524063 36446 16749 17225 2472 46734 23473 23261 47544 47544 1588852 1112196 238328 238328 90002 90002 OTHER 687483 681434 6049 EXHIBITS 500202 500202 MEMBER SUPPORT 93530 74490 19040 FUNDRAISING 61373 61373 8679585 6602813 1380052 696720 608126 473310 354093 1662719 21274 355577 8493 31121 2629726 2553483 164821 179788 39152915 22070882 18300576 17082033 2858987 2285815 89152 83041 8728 6546 25043976 24713433 585059 687098 434698 484386 995000 1500000 11414 124374 121350 2150545 2792834 X 18862914 16289681 1068143 2648541 2962374 2982377 22893431 21920599 25043976 24713433 X -823540 -150093 801 X X 0 1 X 1 0 X 2761013 3025296 3142508 3221987 4290421 16441225 2761013 3025296 3142508 3221987 4290421 16441225 1903661 14537564 141752 58862 82806 139792 151571 574783 343105 348236 303173 306269 72808 1373591 18389599 34550865 0.79050 0.80230 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS GROSS FUNDRAISING REVENUE RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X X X 1 5056041 20003 -279803 4796241 4943781 40005 72255 5056041 4555550 46570 341661 4943781 4094164 10519 450867 4555550 4162062 129329 -197227 4094164 0.38800 0.61200 0.00000 1 1 1 22512378 10725415 11786963 3855316 1554207 2301109 3083009 2715680 367329 9702212 7075580 2626632 17082033 DEPOSITS & GIFT CERTIFICATES 91198 GIFT ANNUITY PAYABLE 30152 121350 X 9903500 -150093 -146841 -296934 10200434 52018 -2396407 -2344389 7856045 11023974 2396407 2396407 8627567 52018 52018 8679585 PART III, LINE 1A: THE COLLECTIONS OF THE MUSEUM INCLUDE SEVERAL CATEGORIES OF NATIVE AMERICAN ART, PRIMARILY KACHINA DOLLS, BASKERS, JEWELRY, TEXTILES, CERAMICS, AND FINE ART, AS WELL AS COLLECTIONS FROM OTHER INDIGENOUS PEROPLES OF LATIN AMERICA, AFRICA, AND OCEANIA, AND ARE EXPENSED IN THE PERIOD PRUCHASED. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, ART OBJECTS CONTRIBUTED TO THE MUSEUM ARE NOT INCLUDED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. FURTHERMORE, IN CONFORMITY WITH INDUSTRY PRACTICE, THE MUSEUM HAS NOT RECORDED THE VALUE OF ITS COLLECTIONS ON THE STATEMENT OF FINANCIAL POSITION. THE FAIR VALUE OF CERTAIN COLLECTIONS IS DETERMINED BASED ON THIRD-PARTY EVIDENCE OF COMPARABLE ART SOLD THROUGH AUCTION HOUSES. THE FAIR VALUE OF COLLECTIONS CONTRIBUTED TO THE MUSEUM DURING 2015 AND 2014 WAS APPROXIMATELY $471,923 AND $509,015, RESPECTIVELY. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM OF ART IN THE CITY OF PHOENIX FOR THE PURPOSE OF EDUCATING THE PUBLIC ABOUT THE HERITAGE, LIVING CULTURES, AND ART OF INDIGENOUS PEOPLES WITH AN EMPHASIS ON THE PEOPLES OF THE SOUTHWEST. THIS PURPOSE IS ACCOMPLISHED THROUGH THE MUSEUM'S PROGRAMS OF EDUCATION, EXHIBITION, COLLECTION, RESEARCH, AND PUBLICATION. PART V, LINE 4: THE INTENDED USE OF THE ENDOWMENT FUNDS ARE TO PROVIDE FOR THE FUTURE FINANCIAL STRENGTH OF THE ORGANIZATION. PART X, LINE 2: THE MUSEUM EVALUATES ITS UNCERTAIN TAX POSITIONS, IF ANY, ON A CONTINUAL BASIS THROUGH REVIEW OF ITS POLICIES AND PROCEDURES, REVIEW OF ITS REGULAR TAX FILINGS, AND DISCUSSIONS WITH OUTSIDE EXPERTS. MANAGEMENT BELIEVES THAT THE HEARD MUSEUM AND THE TRUST HAVE NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2015 AND 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN GIFT ANNUITIES 801. ELIMINATE SEPARATE TRUST INCOME/LOSS -147,642. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -2,396,407. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 2,396,407. FORM 990, SCH D, PART XI & XII THE 2015 $1.1 MILLION DEFICIT PER THE AUDITED FINANCIAL STATEMENTS INCLUDES NON-CASH DEPRECIATION EXPENSE SUMMARIZED ON THE TABLE BELOW. REVERSING THE EFFECT OF THIS NON-CASH EXPENSE BETTER REFLECTS OPERATING RESULTS OF THE MUSEUM'S CORE OPERATIONS. 2015 DEFICIT (1,120,474) PLUS: DEPRECIATION 1,588,852 ---------- ADJUSTED 2015 RESULTS 468,378 X X X X X X 1 DIANNE BAKER 19943 N GREENVIEW DRIVE SUN CITY WEST AZ 87375 CONTRACTED GRANT WRITER 0 406499 60000 346499 406499 60000 346499 AZ MOONDANCE 248602 229302 19300 59913 85516 5868 GOLF CLASSIC 56200 45200 11000 13141 5902 0 304802 274502 30300 73054 91418 5868 170340 -140040 X X X 0 0 0 0 0 0 0 0 0 JAMES PEPPER HENRY CEO 247000 0 0 0 0 0 0 0 4103 0 251103 0 0 0 SUE NAVRAN TRUSTEE - SHE ALSO SERVES AS THE EXEC VP, EXTERNAL OPERATIONS OF BCBS 272786 SUE NAVRAN IS A TRUSTEE OF THE MUSEUM. SHE ALSO SERVES AS THE EXECUTIVE VICE PRESIDENT, EXTERNAL OPERATIONS OF BCBS. BCBS IS THE MUSEUM'S HEALTH INSURANCE PROVIDER AND HAS BEEN FOR OVER A DECADE. ANNUALLY THE INSURANCE COVERAGE IS COMPETITIVELY BID BY THE MUSEUM'S HEALTH INSURANCE BROKER, FRINGE BENEFIT GROUP. IN THE PAST BCBS HAS BEEN SELECTED AS A RESULT OF HAVING A COMPETITIVE BID PLUS A VERY BROAD NETWORK OF CARE PROVIDERS IN PHOENIX. 0 MARK SCHIAVONI TRUSTEE - HE ALSO SERVES AS THE EXEC VP AND COO OF APS 360036 MARK SCHIAVONI IS A TRUSTEE OF THE MUSEUM. HE ALSO SERVES AS THE EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ARIZONA PUBLIC SERVICE (APS). APS SUPPLIES THE MUSEUM WITH ALL OF ITS ELECTRIC POWER AT RATES ESTABLISHED BY STATE REGULATORS. 0 WICK PILCHER TRUSTEE - HE ALSO MANAGES USI SERVICES, LLC, FORMERLY PILCHER INSURANCE 144756 WICK PILCHER IS A TRUSTEE OF THE MUSEUM. HE ALSO MANAGES USI SERVICES, LLC, FORMERLY PILCHER INSURANCE BROKER, IN PHOENIX. USI SERVICES AS THE MUSEUM'S GENERAL AND PROFESSIONAL INSURANCE BROKER. ANNUALLY, ALL GENERAL AND PROFESSIONAL INSURANCES ARE COMPETITIVELY BID. 0 X 275 0 SEE EXPLANATION X 0 SEE EXPLANATION X 8 58556 FMV X 35 22557 FMV X CATERING 9 83955 FMV X FUNDRAISING ITEMS 15 66091 FMV X BUS SUPPLIES 10 3433 FMV 6 0 1 1 PART I, COLUMN (B): NUMBER OF CONTRIBUTORS PART I, LINE 32B: A BROKER IS USED FOR LIQUIDATION OF SECURITIES PART I, LINE 33: DURING THE YEAR, THE ORGANIZATION RECEIVED $471,923 OF WORKS OF ART, BOOKS, AND PUBLICATIONS DONATED TO ITS COLLECTION. IN CONFORMITY WITH THE PRACTICE FOLLOWED BY MANY MUSEUMS, OBJECTS CONTRIBUTED TO THE ORGANIZATION ARE NOT INCLUDED AS REVENUE OR EXPENSE ON FORM 990, PARTS VIII OR IV. FORM 990, PART III, LINE 4A THE HEARD MUSEUM IS A PRIVATE NON-PROFIT MUSEUM THAT PURSUES AN EDUCATIONAL MISSION OF EDUCATING THE PUBLIC ABOUT THE ARTS AND HISTORY OF AMERICAN INDIANS AND OTHER INDIGENOUS PEOPLES OF THE AMERICAS WITH AN EMPHASIS ON PEOPLES OF THE SOUTHWEST USA. THE HEARD ACCOMPLISHES THIS TASK BY: ORGANIZING EXHIBITS THAT SHOWCASE BOTH ITS COLLECTION OF MORE THAN 40,000 FINE ARTWORKS AND CULTURAL ARTIFACTS IN ITS PERMANENT COLLECTION AND ARTWORKS FROM OTHERS; HOLDING SPECIAL EVENTS THAT HIGHLIGHT ONE OR MORE ASPECTS OF NATIVE ART, CULTURES, AND/OR HISTORY; HOSTING MORE THAN 12,000 SCHOOLCHILDREN TOURING THE MUSEUM EACH YEAR; SUPPORTING THE CAREERS OF AMERICAN INDIAN ARTISTS IN THE HEARD MUSEUM SHOPS AND BOOKS & MORE, A BOUTIQUE BOOKSTORE AND GIFT SHOP; OFFERING INDIGENOUS INGREDIENTS WITHIN THE MENU OF THE MUSEUM'S CAFE AND COFFEE CANTINA; AND BY OFFERING PROGRAMMING SUCH AS LECTURES, BOOK SIGNINGS AND PRESENTATIONS BY EXPERTS IN ART, HISTORY, AND CULTURES. APPROXIMATELY 107,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IN THE HEARD MUSEUM SHALL BE OPEN TO ALL PERSONS UPON PAYMENT OF SUCH DUES AS THE BOARD OF TRUSTEES MAY FROM TIME TO TIME ESTABLISH. FORM 990, PART VI, SECTION A, LINE 7A THERE IS A SUPPORT ORGANIZATION WITHIN THE HEARD MUSEUM, THE HEARD MUSEUM GUILD, THAT ELECTS ITS OFFICERS. THE PRESIDENT OF THE GUILD IS DESIGNATED AS A TRUSTEE OF THE MUSEUM PER THE GOVERNING DOCUMENTS. THIS IS THE ONLY MEMBER OF THE MUSEUM BOARD THAT IS ELECTED BY MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN OUTSIDE ACCOUNTING FIRM. THE RETURN WILL BE REVIEWED BY THE DIRECTOR OF FINANCE AND AUDIT COMMITTEE PRIOR TO A FINAL REVIEW BY THE BOARD OF TRUSTEES. THE RETURN WILL BE FILED WITH THE IRS AFTER APPROVAL BY THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE AND NATURE OF HIS OR HER FINANCIAL INTEREST TO THE TRUSTEES AND MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. IN ANY CASE WHERE THE HEARD ENTERS INTO A TRANSACTION IN WHICH A TRUSTEE IS AN INTERESTED PARTY, THE TRUSTEE SHALL NOT PARTICIPATE IN ANY DECISIONS CONCERNING THE SOURCE OF THE CONFLICT. THIS PROVISION SHALL ALSO APPLY IN ANY CASE WHERE A FAMILY MEMBER OF A TRUSTEE IS EMPLOYED BY OR IS A CONTRACTOR TO THE MUSEUM AND SHALL INCLUDE ANY DISCUSSIONS OR DECISIONS RELATED TO EMPLOYMENT OR OTHER ASSOCIATION, PERFORMANCE EVALUATION OR COMPENSATION OF A FAMILY MEMBER. EACH TRUSTEE AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS SHALL ANNUALLY SIGN A STATEMENT WHICH AFFIRMS THAT SUCH PERSON (A) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY,(B) HAS READ AND UNDERSTANDS THE POLICY,(C) HAS AGREED TO COMPLY WITH THE POLICY, AND(D) UNDERSTANDS THAT THE HEARD IS A TAX-EXEMPT ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. FORM 990, PART VI, SECTION B, LINE 15A THE SEARCH AND EXECUTIVE COMMITTEES OF THE BOARD OF TRUSTEES REVIEW THE SALARY OF THE DIRECTOR PRIOR TO EMPLOYMENT INITIATIONS. THE COMMITTEES DISCUSS THE COMPENSATION OF OTHER NON-PROFIT ORGANIZATIONS IN THE PROCESS. THE COMMITTEES LAST REVIEWED THE SALARY IN 2015 PRIOR TO THE HIRING OF THE NEW CEO WHO STARTED JANUARY 2016. THE CEO/MUSEUM DIRECTOR REVIEWS THE SALARIES OF KEY EMPLOYEES PERIODICALLY INCLUDING A COMPARISON OF THE COMPENSATION OF OTHER LOCAL NOT-FOR-PROFIT ORGANIZATIONS. FORM 990, PART VI, SECTION C, LINE 19 THE ARTICLES OF INCORPORATION, BY-LAWS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN GIFT ANNUITY 801. FORM 990, PART XII, PG 12, LINE 2C: THERE HAS BEEN NO CHANGE IN EITHER THE OVERSIGHT PROCESS OR THE SELECTION PROCESS DURING THE TAX YEAR. HEARD FAMILY ENDOWMENT TRUST JP MORGAN CHASE 270 PARK NEW YORK NY 10017 946095432 INVESTMENT AZ 4947(A)(1) 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0