2015-03-31T22:31:41-05:00 2014-09-30 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2013-10-01 860107517 THE HEARD MUSEUM HEAR 6022510221 2301 N CENTRAL AVE PHOENIX AZ 85004 JOHN BULLA COO/INTERIM CEO 6022510221 2015-03-27 1 STEPHEN E LIVINGSTON CPA P00317845 6022662248 2013 2016-03-07 17:11:31Z JOHN BULLA 2301 N CENTRAL AVE PHOENIX AZ 85004 13971506 0 X WWW.HEARD.ORG X 1929 AZ TO EDUCATION THE GENERAL PUBLIC ABOUT THE ARTS AND CULTURE OF INDIGENOUS PEOPLES OF THE AMERICAS WITH A FOCUS ON THE SOUTHWEST USA. 26 26 156 456 0 0 3142508 3221987 1995899 1993273 169202 311125 1812268 1968945 7119877 7495330 0 0 0 0 3751589 3737813 0 50000 691474 5216089 5022225 8967678 8810038 -1847801 -1314708 25958741 25043976 1778109 2150545 24180632 22893431 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 1 6459463 3827556 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 SCHOOL CHILDREN 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 118,000 PEOPLE VISITED THE MUSEUM DURING THE YEAR. 6459463 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 0 0 0 0 0 0 1 0 1 1 1 0 0 0 1 0 0 0 1 117 0 1 156 1 0 0 0 0 0 1 1 0 0 0 0 X 26 26 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ X X JOEY STILLMAN 6022528840 2301 N CENTRAL AVE PHOENIX AZ 85004 LELAND W PETERSON CHAIR 10.00 X 0 0 0 SUSAN H NAVRAN VICE CHAIR 4.00 X 0 0 0 PATRICIA K HIBBELER SECRETARY 4.00 X 0 0 0 MARK SCHIAVONI TREASURER 4.00 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 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 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 PETER S FINE 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 STEPHEN R LEWIS 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 MONONGYE TRUSTEE 1.00 X 0 0 0 ELIZABETH MURFEE DECONCINI TRUSTEE 1.00 X 0 0 0 SCOTT H O'CONNER TRUSTEE 1.00 X 0 0 0 RODNEY PASSMORE 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 JAMES PEPPER HENRY CEO 40.00 X 103392 0 1740 CARLOS L ROJAS CFO TO 9/1/2014 40.00 X 135010 0 3800 WILLIAM BRUCE MCGEE DIRECTOR OF RETAIL SALES 40.00 X 108440 0 3800 JOHN BULLA COO 40.00 X 124500 0 3800 ANN MARSHALL DIRECTOR OF CURATION ON EDUCATION 40.00 X 108340 0 3800 579682 0 16940 5 0 0 0 0 871056 59405 232728 2058798 1345588 3221987 ADMISSIONS 611710 1024952 1024952 FAIR INCOME 900099 474740 474740 PRIVATE USE FEES 721000 465589 465589 EDUCATIONAL REVENUE 611710 27992 27992 1993273 126628 126628 13164 13164 3317043 3132546 184497 184497 184497 258493 59405 183008 75485 75485 4993142 3160622 1832520 1832520 MISCELLANEOUS 900099 47776 47776 47776 7495330 3825793 0 447550 557231 557231 2669441 2412545 50774 206122 274472 214139 47160 13173 236669 180357 40858 15454 6373 6373 40044 40044 50000 50000 51575 51575 329281 225536 103745 257891 257891 275855 225729 41007 9119 358687 37008 294823 26856 652956 652956 26123 8574 14086 3463 37797 20077 17720 21917 21917 2043648 1430554 306547 306547 87158 87158 EXHIBITS 364794 364794 OTHER PROGRAM EXPENSES 355365 354566 799 MEMBER SUPPORT 67062 52820 14242 FUNDRAISING 45699 45699 8810038 6459463 1659101 691474 412721 608126 21674 354093 248824 21274 10605 8493 1957575 2629726 173850 164821 41619242 23318666 20229780 18300576 2808995 2858987 85989 89152 8728 8728 25958741 25043976 697468 585059 407121 434698 499800 995000 45738 11414 127982 124374 1778109 2150545 X 19859577 18862914 1398686 1068143 2922369 2962374 24180632 22893431 25958741 25043976 X -1314708 25081 2426 X X 0 1 X 1 0 X 4156371 2761013 3025296 3142508 3221987 16307175 130000 130000 4286371 2761013 3025296 3142508 3221987 16437175 1759553 14677622 47733 141752 58862 82806 139792 470945 84861 343105 348236 303173 306269 1385644 18293764 35581503 0.80230 0.86430 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 4943781 40005 72255 5056041 4555550 46570 341661 4943781 4094164 10519 450867 4555550 4162062 129329 -197227 4094164 3093905 849761 318411 4262077 0.39000 0.57000 0.04000 1 1 1 22512376 10152826 12359550 6551402 4053031 2498371 2891294 2553766 337528 9664170 6559043 3105127 18300576 DEPOSITS & GIFT CERTIFICATES 93421 GIFT ANNUITY PAYABLE 30953 124374 X 10792686 25081 30000 3293850 3348931 7443755 51575 51575 7495330 11949085 30000 3160622 3190622 8758463 51575 51575 8810038 PART III, LINE 1A: THE COLLECTIONS OF THE MUSEUM INCLUDE SEVERAL CATEGORIES OF NATIVE AMERICAN ART, PRIMARILY KACHINA DOLLS, BASKETS, JEWELRY, TEXTILES, CERAMICS, AND FINE ART, AS WELL AS COLLECTIONS FROM OTHER INDIGENOUS PEOPLES OF LATIN AMERICA, AFRICA, AND OCEANIA, AND ARE EXPENSED IN THE PERIOD PURCHASED. 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 2014 AND 2013 WAS APPROXIMATELY $509,015 AND $631,522, RESPECTIVELY. PART III, LINE 4: THE CORPORATION MAINTAINS A MUSEUM OF ART AND CULTURE IN THE CITY OF PHOENIX FOR THE PURPOSE OF EDUCATING THE PUBLIC ABOUT THE HERITAGE, LIVING CULTURES, AND ARTS OF NATIVE 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 INCOME TAX PORTION OF THE MUSEUM'S FINANCIAL STATEMENT FOOTNOTE CONTAINS A DESCRIPTION OF THE ORGANIZATION'S QUALIFICATION AS A TAX EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IT THEN CONTAINS THE FOLLOWING TEXT REGARDING UNCERTAIN TAX POSITIONS UNDER FIN 48 (ASC 740): 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 HAS NO UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2014 AND 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,160,622. CHANGE IN GIFT ANNUITIES 2,426. ELIMINATE SEPARATE TRUST INCOME 130,802. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD 3,160,622. FORM 990, SCH D, PART XI & XII THE 2014 $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. 2014 DEFICIT (1,156,399) PLUS: DEPRECIATION 2,043,648 ADJUSTED 2014 RESULTS 887,249 X X X X X X 1 DIANNE BAKER 19943 N GREENVIEW DRIVE SUN CITY WEST AZ 87375 CONTRACTED GRANT WRITER 0 255028 50000 205028 255028 50000 205028 AZ MOONDANCE 273823 48405 225418 55270 85198 22710 GOLF CLASSIC 44075 11000 33075 4938 13871 1021 317898 59405 258493 60208 99069 23731 183008 75485 SCHEDULE G, PART I, LINE 2B, COLUMN (V) CONTRACTED GRANT WRITER BLUE CROSS BLUE SHIELD OF AZ ONE TRUSTEE HAS RELATIONSHIP WITH BCBS SEE DESCRIPTION 247182 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 ARIZONA PUBLIC SERVICE TRUSTEE IS EXECUTIVE VP AND COO AT ARIZONA PUBLIC SERVICE 293213 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 USI SERVICES LLC TRUSTEE IS A MANAGER AT USI SERVICES, LLC 100171 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 JP MORGAN CHASE BANK NA TRUSTEE IS A VP CLIENT ADVISOR AT JP MORGAN CHASE BANK 130802 JOETTE SCHMIDT IS A TRUSTEE OF THE MUSEUM. SHE ALSO SERVES AS THE VICE PRESIDENT CLIENT ADVISOR - PRIVATE CLIENT SERVICES OF JP MORGAN CHASE BANK, NA. JP MORGAN CHASE MANAGES THE HEARD FAMILY TRUST. 0 X 50 1019042 FAIR MARKET VALUE X 0 FAIR MARKET VALUE X 1 37186 FAIR MARKET VALUE X 5 162323 FAIR MARKET VALUE X 39 54850 FAIR MARKET VALUE X FUNDRAISER DO 15 66091 FAIR MARKET VALUE X MISCELLANEOUS 10 6096 FAIR MARKET VALUE 6 0 1 1 PART I, COLUMN (B): NUMBER OF CONTRIBUTORS IS REPORTED. PART I, LINE 32B: A BROKER IS USED FOR LIQUIDATION OF SECURITIES PART I, LINE 33: DURING THE YEAR, THE ORGANIZATION RECEIVED $509,015 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. THESE AMOUNTS ARE NOT INCLUDED IN COLUMN (C) ON SCHEDULE M. THE ORGANIZATION DID REPORT REVENUES DURING THE CURRENT TAX YEAR IN THE AMOUNT OF $1,019,042 FROM A COLLECTION IT RECEIVED IN A PRIOR YEAR THAT IT EXPECTS TO RESELL. THIS AMOUNT HAS BEEN REPORTED IN COLUMN (C) ON SCHEDULE M. FORM 990, PART III, LINE 3 THE ORGANIZATION CLOSED ITS SCOTTSDALE LOCATION AFTER DETERMINING IT COULD BETTER AND MORE EFFICIENTLY SERVE THE PUBLIC SOLELY THROUGH ITS MAIN LOCATION. 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 15 THE SEARCH AND EXECUTIVE COMMITTEES OF THE BOARD OF TRUSTEES REVIEWS THE SALARY OF THE DIRECTOR PRIOR TO CONTRACT INITIATIONS OR RENEWALS. THE COMMITTEES DISCUSS THE COMPENSATION OF OTHER NON-PROFIT ORGANIZATIONS IN THE PROCESS. THE COMMITTEES LAST REVIEWED THE SALARY IN 2012 PRIOR TO THE EXECUTION OF THE CURRECT CEO'S CONTRACT. THE CEO/MUSEUM DIRECTOR AND HR COMMITTEE REVIEW THE SALARIES OF KEY EMPLOYEES ANNUALLY 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 2,426. 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) N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0