2015-05-21T12:05:29-05:00 2014-12-31 521392008 GELMAN ROSENBERG & FREEDMAN 4550 MONTGOMERY AVE SUITE 650N BETHESDA MD 208142930 990 2014-01-01 272092468 WORLDREADERORG WORL 2065886057 C/O BRIGHTON JONES LLC 20130 1ST AVE NO 300 SEATTLE WA 98121 JOHN DAVID RISHER CEO 2065886057 2015-05-21 1 ROBERT ALBRECHT CPA P01003783 3019519090 2014 2016-02-25 16:41:14Z JOHN DAVID RISHER C/O BRIGHTON JONES LLC 20130 1ST AVE NO 3 SEATTLE WA 98121 5911546 0 X WWW.WORLDREADER.ORG X 2010 WA SEE PART III, LINE 1. 8 8 20 14 0 0 3135341 5653224 246756 256002 472 2320 0 0 3382569 5911546 950157 1105670 0 0 546592 998389 0 0 198812 2276594 1652056 3773343 3756115 -390774 2155431 972897 3185499 45200 102371 927697 3083128 X SEE SCHEDULE O FOR DETAIL 0 0 3238508 1105670 256002 USING E-READERS, MOBILE PHONES AND OTHER DIGITAL TECHNOLOGY, WORLDREADER REACHES READERS IN 50 COUNTRIES, PROVIDING THEM WITH OVER 15,000 BOOK TITLES IN 44 LANGUAGES FROM AFRIKAANS TO SWAHILI. WE CURRENTLY WORK WITH OVER 140 PUBLISHERS TO ACQUIRE AND DIGITIZE THE MOST COMPELLING AND RELEVANT CONTENT FOR OUR READERS; 70% OF OUR LIBRARY COMES FROM AFRICAN AND INDIAN PUBLISHERS. IN ITS FIRST FIVE YEARS, WORLDREADER HAS REACHED 2.2 MILLION READERS AND THE DATA SHOW THIS IS CHANGING PEOPLE'S LIVES. (SEE SCHEDULE O FOR ADDITIONAL DETAIL) 3238508 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 8 0 1 20 1 0 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 AK AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY X X X HEIDI WILLIAMS 2065886057 20130 1ST AVENUE SUITE 300 SEATTLE WA 98121 JOHN DAVID RISHER SEE SCHED O CEO 40.00 X X 0 0 0 PETER SPIRO PRESIDENT 1.00 X X 0 0 0 COLIN MCELWEE SEE SCHED O SECRETARY 1.00 X X 0 0 0 SUE SANDERSON BOARD DIRECTOR 1.00 X 0 0 0 HARRISON MILLER BOARD DIRECTOR 1.00 X 0 0 0 JIM BILDNER BOARD DIRECTOR 1.00 X 0 0 0 KARTIK RAGHAVAN BOARD DIRECTOR 1.00 X 0 0 0 CHARLES BRIGHTON BOARD DIRECTOR 1.00 X 0 0 0 HEIDI WILLIAMS DIRECTOR, HUMAN & ORG. 40.00 X 57000 0 0 57000 0 0 0 0 0 0 SAM HARTWELL 350 FOREST STREET OAKLAND CA 94618 FINANCIAL CONSULTING 103832 1 5653224 1704959 5653224 PROGRAM INCOME 900099 256002 256002 256002 2320 2320 5911546 256002 0 2320 1105670 1105670 57000 57000 835996 587862 110001 138133 44645 29390 8349 6906 60748 39990 11361 9397 5211 2618 2593 27000 13565 13435 52588 34243 18338 7 66063 37693 22929 5441 41043 25832 15211 124268 83118 26260 14890 2418 2418 8564 431 5483 2650 READING DEVICES/CONTENT 1271347 1271347 FACILITIES & EQUIPMENT 33596 5746 27850 REGISTRATION FEES 10508 529 6728 3251 CREDIT CARD FEES 9450 474 6050 2926 3756115 3238508 318795 198812 46187 16330 685625 621076 174386 2063436 10594 46776 3852 6296 290250 2418 0 287832 52253 143753 972897 3185499 45200 48227 54144 45200 102371 X 427772 628136 499925 2454992 927697 3083128 972897 3185499 2155431 0 X 0 1 X 1 0 X 196394 1095036 3452225 3135341 5653224 13532220 196394 1095036 3452225 3135341 5653224 13532220 1634808 11897412 160 484 284 472 2320 3720 13535940 704477 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 290250 2418 287832 287832 X 5964038 52492 52492 5911546 0 5911546 3808607 52492 52492 3756115 0 3756115 PART X, LINE 2: FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, WORLDREADER HAS DOCUMENTED ITS CONSIDERATION OF FASB ASC 740-10, INCOME TAXES, THAT PROVIDES GUIDANCE FOR REPORTING UNCERTAINTY IN INCOME TAXES AND HAS DETERMINED THAT NO MATERIAL UNCERTAIN TAX POSITIONS QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE FEDERAL FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, IS SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE, GENERALLY FOR THREE YEARS AFTER IT IS FILED. 1 EUROPE 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 933010 SUB-SAHARAN AFRICA 0 0 GRANTS TO RECIPIENTS LOCATED IN REGION 172660 0 0 0 0 0 0 1105670 0 1105670 EUROPE GENERAL OPERATIONS 933010 WIRE SUB-SAHARAN AFRICA GENERAL OPERATIONS 99145 WIRE SUB-SAHARAN AFRICA DONATIONS OF NEW AND REPLACEMENT DEVICES TO SUPPORT THE EXPANSION OF THE PROJECT 73515 780 KINDLES, ACCESSORIES AND CASES FMV 3 0 1 0 0 0 0 0 PART I, LINE 2: WORLDREADER GRANTS WENT TO FOREIGN AFFILIATES IN SPAIN AND GHANA. WORLDREADER REVIEWS THE FINANCIAL STATEMENTS OF THE AFFILIATE ENTITIES QUARTERLY AND CONTINUALLY MONITORS HOW GRANT FUNDS ARE SPENT. X 704323 AVERAGE COST X 4 394600 FMV X E-READER ACCESSORIES 4 315786 RETAIL VALUE X CONTENT MGMT SYSTEM 1 290250 RETAIL VALUE 0 0 0 PART I, COLUMN (B): PART I, COLUMN B REPRESENTS THE NUMBER OF CONTRIBUTORS WHO PROVIDED CONTRIBUTIONS TO THE ORGANIZATION DURING THE YEAR. FORM 990, PART III, LINE 1: WORLDREADER IS A GLOBAL NON-PROFIT THAT USES TECHNOLOGY TO BRING DIGITAL BOOKS TO EVERY CHILD AND THEIR FAMILY, SO THEY CAN IMPROVE THEIR LIVES. IN ITS FIRST FIVE YEARS, WORLDREADER HAS REACHED 2.2 MILLION READERS IN 50 COUNTRIES WITH A DIGITAL LIBRARY OF 15,000 LOCAL AND INTERNATIONAL E-BOOKS VIA E-READERS AND MOBILE PHONES, AND PLANS TO REACH 15 MILLION READERS BY 2018. FOUNDED IN 2010 BY FORMER MICROSOFT AND AMAZON EXECUTIVE DAVID RISHER, AND FORMER MARKETING DIRECTOR AT BARCELONA'S ESADE BUSINESS SCHOOL COLIN MCELWEE, WORLDREADER WORKS WITH DEVICE MANUFACTURERS, LOCAL AND INTERNATIONAL PUBLISHERS, GOVERNMENTS, EDUCATION OFFICIALS, AND LOCAL COMMUNITIES TO BRING BOOKS TO ALL. FOR MORE INFORMATION ON WORLDREADER, PLEASE VISIT WWW.WORLDREADER.ORG. FORM 990, PART III, LINE 4A: STUDENTS IN WORLDREADER'S E-READER PROGRAMS IMPROVED 94% IN MOTHER TONGUE ORAL READING FLUENCY AFTER JUST 5 MONTHS, AND GIRLS IN THE PROGRAM IMPROVED TWICE AS FAST IN ORAL READING FLUENCY AS GIRLS IN NEIGHBORING SCHOOLS, CLOSING AN EXISTING GENDER GAP (IREAD2 MIDTERM STUDY). READING ON WORLDREADER MOBILE IS PARTICULARLY POPULAR WITH WOMEN, WHO SPEND ON AVERAGE 207 MINUTES READING PER MONTH, COMPARED TO 32 MINUTES FOR MEN (UNESCO). IN 2014, WE PARTNERED WITH CHARITABLE ORGANIZATIONS TO BRING WORLDREADER E-READING PROGRAMS TO 106 SCHOOLS AND LIBRARIES IN 11 DIFFERENT SUB-SAHARAN AFRICAN COUNTRIES, INCLUDING A PROJECTS WITH THE BILL & MELINDA GATES FOUNDATION TO PROVIDE MORE THAN 10,000 PEOPLE IN RURAL KENYA WITH ACCESS TO E-BOOKS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WAS PREPARED BY THE OUTSIDE ACCOUNTANTS AND REVIEWED BY THE FINANCE COMMITTEE. A COPY OF THE FINAL FORM 990 WAS PROVIDED TO THE FULL BOARD PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS AND DIRECTORS ARE REQUIRED TO ANNUALLY SIGN THE CONFLICT OF INTEREST POLICY. IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON DISCLOSES THE EXISTENCE OF THE FINANCIAL INTEREST AND IS GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE LEAVES THE GOVERNING BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS DECIDE IF A CONFLICT OF INTEREST EXISTS. THE CHAIRPERSON OF THE GOVERNING BOARD OR COMMITTEE, IF APPROPRIATE, APPOINTS A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER EXERCISING DUE DILIGENCE, THE GOVERNING BOARD OR COMMITTEE DETERMINE WHETHER THE ORGANIZATION CAN OBTAIN WITH REASONABLE EFFORTS A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE UNDER CIRCUMSTANCES NOT PRODUCING A CONFLICT OF INTEREST, THE GOVERNING BOARD OR COMMITTEE DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE ORGANIZATION'S BEST INTEREST, FOR ITS OWN BENEFIT, AND WHETHER IT IS FAIR AND REASONABLE. IN CONFORMITY WITH THE ABOVE DETERMINATION IT MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. FORM 990, PART VI, SECTION B, LINE 15 WORLDREADER CURRENTLY DOES NOT COMPENSATE ITS PRESIDENT/CEO. IF IN THE FUTURE THE PRESIDENT/CEO IS COMPENSATED, WORLDREADER'S BOARD OR A COMMITTEE THEREOF, WILL SET THE PRESIDENT/CEO'S COMPENSATION, USING COMPARABLE DATA AND WILL DOCUMENT ITS DELIBERATIONS AND CONCLUSIONS. COMPENSATION FOR ALL EMPLOYEES, INCLUDING SENIOR MANAGEMENT, IS SET BY THE PRESIDENT/CEO AS DETERMINED BY MARKET BASED PAY SCALES AND JOB LEVEL AND RESPONSIBILITY. THE BOARD DOES NOT DIRECTLY DETERMINE OR APPROVE EACH EMPLOYEE'S COMPENSATION, BUT DOES APPROVE THE BUDGET WHICH INCLUDES THESE SALARY FIGURES. THE LAST COMPENSATION REVIEW WAS PERFORMED IN JULY, 2014. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. THE FINANCIAL STATEMENTS ARE ALSO AVAILABLE THROUGH THE ORGANIZATION'S WEBSITE, WWW.WORLDREADER.ORG. FORM 990, PART VI, LINES 1A AND B: ON FORM 990, PART VI, LINES 1A AND B, WORLDREADER HAS INDICATED THAT ALL MEMBERS OF THE BOARD OF DIRECTORS ARE INDEPENDENT. THIS CONCLUSION IS CONSISTENT WITH THE FORM 990 INSTRUCTIONS FOR THESE LINES. IN THE SPIRIT OF TRANSPARENCY, WORLDREADER WISHES TO PROVIDE ADDITIONAL INFORMATION REGARDING TWO OF THE MEMBERS OF THE BOARD OF DIRECTORS THAT IT FEELS IS IMPORTANT TO THE READER OF FORM 990. TWO OF THE DIRECTORS, DAVID RISHER AND COLIN MCELWEE PLAY A SIGNIFICANT ROLE IN THE EXERCISE OF THE ORGANIZATION'S EXEMPT FUNCTION. DAVID RISHER IS A FULL-TIME, NON-COMPENSATED PRESIDENT AND CEO. HE IS REPORTED ON FORM 990 PART VII AS BOTH A MEMBER OF THE BOARD AND AN OFFICER OF THE ORGANIZATION. IF MR. RISHER RECEIVED COMPENSATION FROM WORLDREADER OR A RELATED PARTY FOR HIS ROLE AS PRESIDENT AND CEO, HE WOULD NOT BE CONSIDERED INDEPENDENT. COLIN MCELWEE IS A FULL-TIME, PAID EMPLOYEE OF FUNDACION WORLDREADER, A SPANISH ENTITY THAT RECEIVES A MAJORITY OF ITS FUNDING FROM WORLDREADER. HE IS ALSO REPORTED ON FORM 990 PART VII AS BOTH A MEMBER OF THE BOARD AND AN OFFICER OF THE ORGANIZATION. FUNDACION WORLDREADER IS NOT A RELATED ORGANIZATION UNDER THE DEFINITION PROVIDED IN THE FORM 990 INSTRUCTIONS; HOWEVER, IT IS AN ORGANIZATION WITH WHICH WORLDREADER HAS A CLOSE WORKING RELATIONSHIP. IF FUNDACION WORLDREADER WAS CONSIDERED A RELATED ORGANIZATION, MR. MCELWEE WOULD NOT BE CONSIDERED INDEPENDENT. FORM 990, PART VII, SECTION A: THE DAY-TO-DAY AFFAIRS OF THE ORGANIZATION ARE RUN BY A NON-COMPENSATED PRESIDENT & CEO.