2015-05-14T16:34:27-05:00 2014-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 46 PUBLIC SQUARE SUITE 400 WILKESBARRE PA 18701 990 2013-07-01 432095418 SCIENCE FESTIVAL FOUNDATION D/B/A WORLD SCIENCE FESTIVAL SCIE 2123481400 475 RIVERSIDE DRIVE SUITE 950 NEW YORK NY 10115 JUDITH COX TREASURER 2123481400 2015-05-14 1 JULIUS GREEN CPA JD P00350393 5708200100 2013 2016-02-25 16:41:14Z TRACY K DAY 475 RIVERSIDE DRIVE SUITE 950 NEW YORK NY 10115 6311394 0 X WWW.WORLDSCIENCEFESTIVAL.COM X 2006 DE TO ENHANCE PUBLIC UNDERSTANDING OF SCIENCE THROUGH PROGRAMMING, FOR ALL AGES, ACROSS ALL MEDIA. 6 4 147 270 0 0 5452238 5788820 266499 381787 7381 14060 -215706 -194680 5510412 5989987 0 0 0 0 2201450 3406088 0 0 712907 2891636 2636641 5093086 6042729 417326 -52742 4361754 4207863 559076 457927 3802678 3749936 X THE WORLD SCIENCE FESTIVAL BRINGS TOGETHER GREAT MINDS IN SCIENCE AND THE ARTS TO PRODUCE LIVE AND DIGITAL CONTENT THAT PRESENTS THE WONDERS OF SCIENCE AND THE DRAMA OF SCIENTIFIC DISCOVERY TO A BROAD GENERAL AUDIENCE. THE FESTIVAL'S FLAGSHIP LIVE EVENT, LAUNCHED IN 2008, IS AN ANNUAL WEEKLONG CELEBRATION AND EXPLORATION OF SCIENCE. THROUGH GRIPPING DEBATES, ORIGINAL THEATRICAL WORKS, INTERACTIVE EXPLORATIONS, MUSICAL PERFORMANCES, INTIMATE SALONS, AND MAJOR OUTDOOR EXPERIENCES, THE FESTIVAL TAKES SCIENCE OUT OF THE LABORATORY AND INTO THE STREETS, PARKS, MUSEUMS, LIBRARIES, AND PERFORMING ARTS VENUES OF NEW YORK CITY. WORLD SCIENCE U IS THE FOUNDATION'S ONLINE EDUCATION ARM WHERE STUDENTS AND LIFELONG LEARNERS CAN DIVE MORE DEEPLY THROUGH ARTFULLY PRODUCED DIGITAL EDUCATION CONTENT PRESENTED BY WORLD-RENOWNED SCIENTISTS. 0 0 4658670 381787 THE FESTIVAL CREATES NOVEL, CREATIVE, AND ARTFULLY PRODUCED PROGRAMS AND INTERDISCIPLINARY EVENTS. FROM COMPELLING PRESENTATIONS OF CUTTING-EDGE SCIENTIFIC RESEARCH AND CAPTIVATING HANDS-ON DEMONSTRATIONS FOR KIDS, TO WORKS IN THEATRE, FILM AND THE ARTS INSPIRED BY SCIENCE, THE FESTIVAL DRAMATICALLY RAISES THE PROFILE OF SCIENCE. FESTIVAL PROGRAMS ARE TAPED, EDITED AND MADE AVAILABLE YEAR-ROUND ON THE FOUNDATION'S WEBSITE, TOGETHER WITH COMPLEMENTARY CONTENT, DRAMATICALLY EXPANDING THE REACH AND IMPACT OF THE FESTIVAL AND BUILDING A GROWING ARCHIVE OF EDUCATIONAL SCIENCE PROGRAMMING. WORLD SCIENCE U PROVIDES A UNIQUE EDUCATIONAL EXPERIENCE FOR STUDENTS, WITH WORLD-RENOWNED PROFESSORS LEADING THE WAY, ACCOMPANIED BY STATE-OF-THE-ART PRODUCTION. THE DIVERSE COURSE OFFERINGS LET STUDENTS SPEND MINUTES, HOURS, DAYS, OR MONTHS ON A SUBJECT. 4658670 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 79 0 1 147 1 0 0 0 0 0 1 1 0 0 0 0 X 6 4 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 1 1 0 NY X PATRICIA DEBIAGGI-MONES DIRECTOR OF FINANCE 6462008812 475 RIVERSIDE DRIVE SUITE 950 NEW YORK NY 10115 X BRIAN GREENE CHAIRMAN 15.00 X X 0 0 0 ALAN ALDA DIRECTOR 1.00 X 0 0 0 ANN ZIFF BOARD MEMBER 1.00 X 0 0 0 JUDITH COX PRESIDENT & TREASURER 40.00 X X 71839 0 24150 TRACY DAY SECRETARY/EXECUTIVE DIRECT 40.00 X X 270000 0 0 GILLIAN SMALL BOARD MEMBER 1.00 X 0 0 0 FRANCES REILLY CHIEF OPERATING OFFICER 40.00 X 173931 0 9807 GEOFF SADOW SENIOR MANAGEMENT PRODUCER 40.00 X 107144 0 21366 622914 0 55323 3 0 1 0 PJD PRODUCTIONS LLC 439 GREENMOUNT AVENUE CLIFFSIDE PARK NJ 07010 EVENT PRODUCTION SERVICES 154935 1 X 488900 15760 5284160 75000 5788820 TICKET SALES 900099 315947 315947 PROGRAM INCOME 900099 65840 65840 381787 5705 5705 83355 75000 8355 8355 8355 49200 488900 246407 -197207 -197207 MISCELLANEOUS INCOME 900099 2527 2527 2527 5989987 381787 0 -180620 X 535000 535000 2379621 1643737 377963 357921 283558 201543 42629 39386 207909 152105 24588 31216 95666 95666 29676 29676 444868 378084 17529 49255 392087 389357 2730 218031 169097 22082 26852 111160 85593 14451 11116 396878 306279 8411 82188 70885 54584 9212 7089 16465 16465 FESTIVAL PRODUCTION COS 849235 743291 790 105154 MISCELLANEOUS EXPENSE 11690 11690 6042729 4658670 671152 712907 2590 1873 3035136 2602485 534450 642646 281501 380403 21647 0 767609 212877 469956 554732 16474 25724 4361754 4207863 559076 457927 559076 457927 X 3802678 3749936 3802678 3749936 4361754 4207863 -52742 0 X X 0 1 X 0 0 X 4542054 4527683 5242178 5452238 5788820 25552973 4542054 4527683 5242178 5452238 5788820 25552973 19634035 5918938 3361 10788 10908 7381 5705 38143 1735 1736 14877 2527 20875 25611991 1405257 0.23110 0.22050 X PART II, SECTION C, LINE 17 A THE FOUNDATION QUALIFIES AS A PUBLIC CHARITY UNDER THE "FACTS AND CIRCUMSTANCES" TEST, BASED ON THE FACTS SET FORTH BELOW. FIRST, THE FOUNDATION'S PUBLIC SUPPORT PERCENTAGE IS, IN FACT, SUBSTANTIAL, AS IT IS WELL IN EXCESS OF THE REQUIRED 10%. FOR THE PAST FIVE YEARS OF OPERATION (ON A ROLLING 5 YEAR BASIS), THE FOUNDATION'S PUBLIC SUPPORT WAS 23.11%. SEE SCHEDULE A, PART II, C. THE FOLLOWING FACTORS ALSO WEIGH IN FAVOR OF PUBLIC CHARITY STATUS UNDER THIS ANALYSIS. FUNDRAISING PROGRAM HAS RESULTED IN BROAD PUBLIC SOURCES OF SUPPORT: THE FOUNDATION HAS MAINTAINED A CONTINUOUS AND BONA FIDE FUNDRAISING PROGRAM TO ATTRACT FUNDS FROM THE PUBLIC SINCE ITS FOUNDING. IN ITS FIRST YEAR OF OPERATIONS, THE FOUNDATION'S FOUNDERS AND OFFICERS SOLICITED FUNDS FROM A FEW DONORS WHO WERE LIKELY TO PROVIDE SEED FUNDING FOR THE ORGANIZATION. HOWEVER, SINCE 2007, THE FOUNDATION HAS EMPLOYED A FULL-TIME DEVELOPMENT STAFF, WITH AN AVERAGE OF THREE EMPLOYEES PER YEAR DEDICATED TO SOLICITING SUPPORT FROM INDIVIDUALS, FOUNDATIONS, CORPORATIONS AND GOVERNMENT GRANTS. FROM TIME TO TIME, THE FOUNDATION HAS CONTRACTED WITH PROFESSIONAL FUNDRAISERS TO SEEK CORPORATE SPONSORSHIPS AND HIRED INDEPENDENT GRANT-WRITERS. THE FOUNDATION ALSO SOLICITS IN-KIND MEDIA SUPPORT FROM MEDIA COMPANIES WHO CAN PLACE ADVERTISEMENTS FOR THE FESTIVAL IN THEIR PUBLICATIONS AND ON THEIR RADIO AND TELEVISION SHOWS, AND FROM A VARIETY OF SERVICE PROVIDERS. THROUGH ALL OF THESE EFFORTS, THE FOUNDATION HAS RECEIVED FINANCIAL, MEDIA AND IN-KIND SUPPORT FROM A DIVERSE GROUP OF INDIVIDUALS, CORPORATIONS, FOUNDATIONS AND GOVERNMENT ENTITIES. SINCE 2008, THE FOUNDATION HAS SUBMITTED MULTIPLE GRANT APPLICATIONS TO OVER 30 FOUNDATIONS AND GOVERNMENT SOURCES, INCLUDING THE NATIONAL SCIENCE FOUNDATION (NSF) AND THE NYC CULTURAL INNOVATION FUND. WHILE NOT ALL OF THESE GRANT APPLICATIONS WERE ACCEPTED, THE FOUNDATION HAS RECEIVED SIGNIFICANT AND REGULAR SUPPORT FROM FOUNDATIONS SUCH AS THE SIMONS FOUNDATION, THE JOHN TEMPLETON FOUNDATION, THE ALFRED P. SLOAN FOUNDATION, THE BILL AND ANN ZIFF FOUNDATION AND THE KAVLI FOUNDATION, AS WELL AS FROM THE NORWEGIAN CONSULATE AND NORWEGIAN ACADEMY OF SCIENCE AND LETTERS. THE FOUNDATION HAS ALSO RECEIVED STATE AND CITY FUNDING FROM THE NEW YORK CITY CULTURAL DEVELOPMENT FUND, THE NEW YORK STATE DEPARTMENT OF EDUCATION AND THE NEW YORK STATE ENERGY AND RESEARCH DEVELOPMENT AUTHORITY. SINCE 2008, THE FOUNDATION HAS ACTIVELY SOLICITED CORPORATE SPONSORS FOR ITS ACTIVITIES, REACHING OUT TO OVER 384 CORPORATIONS. AS A RESULT OF THIS OUTREACH, THE FOUNDATION HAS RECEIVED FINANCIAL SUPPORT FROM CORPORATIONS SUCH AS CREDIT SUISSE, IBM, AMERICA'S NAVY, CON EDISON, KNOPF, TIME WARNER CABLE, GOOGLE, COGNIZANT, IFF, AND NORTHROP GRUMMAN. ALTHOUGH NOT COUNTED TOWARDS "PUBLIC SUPPORT," THE FOUNDATION HAS CONSISTENTLY BEEN ABLE TO REDUCE ITS ADVERTISING EXPENDITURES THROUGH CONTRIBUTIONS OF IN-KIND MEDIA SUPPORT VALUED AT OVER $821,000 (IN 2014) FROM OVER 12 DIFFERENT NEWS AND MEDIA ORGANIZATIONS AND PUBLICATIONS, INCLUDING COMMUNITY-BASED NEWS OUTLETS WABC, WNYC AND AM NEW YORK, AS WELL AS NATIONALLY DISTRIBUTED PUBLICATIONS, SUCH AS SCIENTIFIC AMERICAN, THE WEEK AND POPULAR SCIENCE. THE FOUNDATION ALSO ACTIVELY SEEKS INDIVIDUAL DONORS BY HOSTING CULTIVATION EVENTS AND BY HOLDING AN ANNUAL GALA FUNDRAISER. SINCE 2007, THE FOUNDATION HAS SENT OVER 2,375 INVITATIONS TO BETWEEN 20 AND 25 EVENTS THAT RANGE IN SIZE FROM 20 TO 200 GUESTS. IN ADDITION, THE FOUNDATION HAS HOSTED ITS ANNUAL GALA BENEFIT SINCE 2009. TICKET PRICES TO THE GALA INCLUDE A PORTION ALLOCABLE TOWARDS A CHARITABLE CONTRIBUTION. FROM 2009 THROUGH 2014, THE FOUNDATION SENT OVER 15,400 INVITATIONS AND FUNDING REQUESTS IN CONNECTION WITH THE ANNUAL GALA. MORE THAN 3,600 PEOPLE ATTENDED THE GALA, AND OTHERS CONTRIBUTED BUT DID NOT ATTEND. THE AGGREGATE VALUE OF INDIVIDUAL CONTRIBUTIONS FROM THE GALA HAS CONTINUED TO GROW. IN ADDITION, DURING EACH FESTIVAL, THE FOUNDATION USES SPONSORED RECEPTIONS AND HOSPITALITY CENTERS TO WELCOME SUPPORTERS AND PARTNERS (WHO PROVIDE FINANCIAL OR IN-KIND SUPPORT) AND PARTICIPANTS (WHO VOLUNTEER THEIR TIME AND EXPERTISE) IN THE FESTIVAL. THESE EVENTS ALSO SERVE TO INTRODUCE THE FESTIVAL TO NEW PROSPECTIVE SUPPORTERS. TYPICALLY, THERE ARE THREE TO FOUR SUCH EVENTS EACH YEAR, AND THE CUMULATIVE NUMBER OF PEOPLE WHO ATTEND THESE EVENTS IN EACH YEAR RANGES FROM 800 TO OVER 1,000 PEOPLE. THE FOUNDATION HAS ALSO SOUGHT SMALLER DONATIONS FROM MEMBERS OF THE GENERAL PUBLIC WHO ARE INTERESTED IN ATTENDING THE WORLD SCIENCE FESTIVAL AND/OR VISIT THE WEBSITE. SINCE 2009, THE FOUNDATION HAS SOLICITED DONATIONS ON ITS WEBSITE THROUGH NETWORK FOR GOOD. FROM 2010-2014, THE FOUNDATION HAS ATTRACTED APPROXIMATELY $19,371 IN PUBLIC SUPPORT THROUGH NETWORK FOR GOOD. BEGINNING IN 2012, THE FOUNDATION ALSO PROVIDED AN OPPORTUNITY FOR TICKET BUYERS TO MAKE A DONATION TO THE FESTIVAL AS PART OF THEIR TICKET PURCHASE. THIS EFFORT RAISED $30,012 THROUGH 2014 AND WILL BE CONTINUED IN 2015. COMPOSITION OF THE BOARD: THE FOUNDATION'S BOARD OF DIRECTORS REPRESENTS THE WORLDS OF EDUCATION, THE ARTS, MEDIA, NON-PROFIT MANAGEMENT AND PHILANTHROPY. EACH DIRECTOR BRINGS A RANGE OF EXPERTISE AND VARYING PERSPECTIVES TO THE ORGANIZATION. ALL DIRECTORS HAVE BEEN EXCEEDINGLY GENEROUS WITH THEIR TIME AND EXPERTISE, BUT THE FOUNDATION DOES NOT RELY SOLELY ON ITS BOARD FOR MATERIAL FINANCIAL SUPPORT. TRACY DAY, ONE OF THE CO-FOUNDERS, BRINGS HER EXPERIENCE AS AN EXECUTIVE PRODUCER IN TELEVISION JOURNALISM TO ALL OF THE FESTIVAL'S PROGRAMMING. BRIAN GREENE, ALSO A CO-FOUNDER, IS A PHYSICIST, MATHEMATICIAN AND PROFESSOR AT COLUMBIA UNIVERSITY. BECAUSE OF THE EDUCATIONAL NATURE OF THE FOUNDATION'S MISSION AND ACTIVITIES, THE FOUNDATION HAS RECRUITED ADDITIONAL BOARD MEMBERS FROM A VARIETY OF INSTITUTIONS OF HIGHER LEARNING. THE PRESIDENTS OF COLUMBIA UNIVERSITY (LEE BOLLINGER) AND NEW YORK UNIVERSITY (JOHN SEXTON) HAVE LONG BEEN SUPPORTERS OF THE FOUNDATION'S MISSION AND SERVED ON THE FOUNDATION'S BOARD OF DIRECTORS FROM 2006 - 2012 AND 2008 - 2009, RESPECTIVELY. GILLIAN SMALL, VICE CHANCELLOR FOR RESEARCH AT THE CITY UNIVERSITY OF NEW YORK AND AN ACCOMPLISHED SCIENTIST AND EDUCATOR, JOINED THE BOARD IN JANUARY 2012. ALAN ALDA, AN ACCLAIMED ACTOR, WRITER AND DIRECTOR, BRINGS A WEALTH OF EXPERTISE AND CONNECTIONS FROM THE ARTS TO THE FESTIVAL AND HAS APPEARED AT NUMEROUS FESTIVAL EVENTS AS A MODERATOR AND ACTOR. HE HAS BEEN A MEMBER OF THE BOARD OF DIRECTORS SINCE 2007. JUDITH COX HAS A BACKGROUND IN NON-PROFIT MANAGEMENT AND INTERNATIONAL PROJECTS, AND HAS BEEN ON THE BOARD SINCE 2006. ANN ZIFF, A MEMBER OF THE BOARD SINCE 2010, ALSO HAS SIGNIFICANT EXPERTISE IN NON-PROFIT MANAGEMENT AND FUNDRAISING FROM HER SERVICE ON SEVERAL NON-PROFIT BOARDS; WHILE MS. ZIFF AND HER FAMILY PROVIDE SIGNIFICANT FINANCIAL SUPPORT TO THE FOUNDATION, THEY ARE NOT THE FOUNDATION'S LARGEST DONORS. BROAD PUBLIC PARTICIPATION IN PROGRAMS: THE FOUNDATION'S EDUCATIONAL PROGRAMMING TARGETS A WORLDWIDE AUDIENCE OF ADULTS AND CHILDREN. MOST PROGRAMMING IS DESIGNED FOR NON-SCIENTISTS. WITH EACH YEAR, THE FOUNDATION'S PROGRAMS ATTRACT A LARGER PORTION OF THE GENERAL PUBLIC. ATTENDANCE AT THE WORLD SCIENCE FESTIVAL IN NEW YORK CITY (THE FOUNDATION'S ANNUAL LIVE EVENT SPANNING FIVE DAYS) HAS GROWN FROM 120,000 IN 2008 TO OVER 320,000 IN 2014. IN AN EFFORT TO REACH A BROADER PUBLIC, THE FOUNDATION BEGAN STREAMING SOME OF ITS FESTIVAL PROGRAMS VIA THE INTERNET IN 2011. DURING THE 2012 FESTIVAL, THE FOUNDATION STREAMED NINE LIVE PROGRAMS TO 42,500 VIEWERS. DURING THE 2013 FESTIVAL, ELEVEN LIVE PROGRAMS WERE STREAMED TO OVER 76,000 VIEWERS, AND IN 2014, TWELVE LIVE PROGRAMS WERE STREAMED TO OVER 64,000 VIEWERS. OVER TIME, THE FOUNDATION HAS DEDICATED INCREASED RESOURCES TO PRESENTING FOOTAGE FROM THE FESTIVAL, AS WELL AS ORIGINAL EDUCATIONAL MATERIAL, ON ITS WEBSITE, WWW.WORLDSCIENCEFESTIVAL.COM, AND HAS COMMENCED WEEKLY NEWSLETTERS FOR ITS COMMUNITY OF FOLLOWERS. AS OF 2014, THE FESTIVAL'S WEBSITE ATTAINED OVER 1,000,000 PAGE VIEWS FROM VIEWERS IN 173 COUNTRIES. BY THE END OF THE 2014 FISCAL YEAR, MORE THAN 50,000 PEOPLE OPTED IN TO JOIN THE FOUNDATION'S DIGITAL MAILING LIST AND RECEIVED NEWSLETTERS, FESTIVAL PROGRAMMING ALERTS, AND EARLY TICKET PURCHASING OPPORTUNITIES. BROADCAST, ONLINE AND PRINT IMPRESSIONS FROM MAJOR NEWS OUTLETS REACHED ONE BILLION. THROUGH A VIGOROUS PROGRAM OF SOCIAL MEDIA OUTREACH, THE FESTIVAL HAS ESTABLISHED A REACH OF OVER 2.2 MILLION ON FACEBOOK, AND BUILT A STRONG PRESENCE ON INSTAGRAM AND OTHER SOCIAL MEDIA OUTLETS. THE FOUNDATION ALSO RELIES ON LARGE NUMBERS OF VOLUNTEERS DURING THE FESTIVAL. FOR THE 2014 FESTIVAL, OVER 270 VOLUNTEERS DONATED THEIR TIME TO ENSURE A SUCCESSFUL EVENT. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 382205 76440 305765 265054 102617 162437 120350 33820 86530 554732 X 7387589 1162885 -11690 1151195 6236394 -246407 -246407 5989987 7440331 1162885 246407 1409292 6031039 11690 11690 6042729 PART X, LINE 2: THE FOUNDATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN THE FINANCIAL STATEMENTS USING A RECOGNITION THRESHOLD OF MORE LIKELY THAN NOT AS TO WHETHER THE UNCERTAINTY WILL BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. MANAGEMENT DETERMINED THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD. THE FOUNDATION'S FEDERAL EXEMPT ORGANIZATION RETURNS ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE FOR YEARS PRIOR TO JUNE 30, 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: EXPENSES NETTED AGAINST MISCELLANEOUS REVENUE -11,690. PART XI, LINE 4B - OTHER ADJUSTMENTS: FUNDRAISING DIRECT COSTS INCLUDED IN EXPENSES IN AUDITED FINANCIAL STATEMENT -246,407. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNRAISING DIRECT COSTS REPORTED ON LINE 8B, OF PART VIII 246,407. PART XII, LINE 4B - OTHER ADJUSTMENTS: MISCELLANEOUS EXPENSES NETTED AGAINST REVENUE ON FINANCIAL STATEMENTS 11,690. OPENING NIGHT GALA 538100 488900 49200 59029 187378 538100 488900 49200 59029 187378 246407 -197207 X X X 0 0 0 0 0 0 0 0 0 TRACY DAY SECRETARY/EXECUTIVE DIRECT 215000 0 0 0 55000 0 0 0 0 0 270000 0 0 0 FRANCES REILLY CHIEF OPERATING OFFICER 173931 0 0 0 0 0 0 0 9807 0 183738 0 0 0 SCHEDULE J, PART II, LINE 1 THE CHIEF EXECUTIVE OFFICER'S EARNINGS OF $270,000 FOR TRACY K. DAY INCLUDES AN ANNUAL SALARY OF $215,000 PLUS PAYMENT OF $55,000 AS PARTIAL PAYMENT FOR WORK PERFORMED IN 2006 THROUGH 2008 DURING THE FIRST YEARS OF OPERATIONS WHEN MS. DAY WORKED FULL-TIME WITHOUT ANY COMPENSATION. THE BALANCE DUE TO MS. DAY FOR COMPENSATION FOR THE 2006-2008 YEARS IS BEING PAID OUT OVER A FIVE YEAR PERIOD. X 1 75000 QUOTED MARKET VALUE 0 0 1 1 PART I, COLUMN (B): NUMBER REPORTED ON PART 1 REPRESENTS THE NUMBER OF DONORS THAT DONATED NON CASH ITEMS PART I, LINE 32B: THE ORGANIZATION USES A SECURITIES BROKER TO SELL MARKETABLE SECURITIES LINE 31: MANAGEMENT REVIEWS NON-STANDARD CONTRIBUTION OFFERS TO DETERMINE THE SUITABILITY OF THE CONTRIBUTION BEFORE ACCEPTING THE CONTRIBUTION. ADDITIONAL INFORMATION FOR PAGE 4, LINE 28A PENDING TRANSACTION WITH INTERESTED PARTIES: IN OCTOBER 2012, THE FOUNDATION ENTERED INTO A NON-BINDING TERM SHEET WITH AN ENTITY (THE "COMPANY") OWNED BY THE FOUNDATION'S CO-FOUNDERS, WHO SERVE AS DIRECTORS AND OFFICERS OF THE FOUNDATION AS CEO AND BOARD CHAIR, IN CONNECTION WITH THE PARTIES' COLLABORATION ON A NEW DIGITAL EDUCATIONAL INITIATIVE (THE "PROJECT"). THE TERM SHEET CONTEMPLATES THAT THE COMPANY WOULD BE COMPENSATED FOR THE BOARD CHAIR'S SIGNIFICANT CONTRIBUTIONS TO THE PROJECT IN A MANNER COMMENSURATE WITH HIS CONTRIBUTIONS SHOULD THE INITIATIVE PRODUCE ANY REVENUES, AND GRANTS THE COMPANY A NON-EXCLUSIVE LICENSE TO USE CERTAIN INTELLECTUAL PROPERTY DEVELOPED AS PART OF THE PROJECT FOR EDUCATIONAL PURPOSES ON A NON-COMMERCIAL BASIS. THE BOARD CHAIR HAS CREATED THE ACADEMIC CONTENT UNDERLYING THE PROJECT, AND HAS PROVIDED HIS EXPERTISE AND PROJECT MANAGEMENT SERVICES FREE OF CHARGE THUS FAR. MANAGEMENT IS IN THE PROCESS OF NEGOTIATING A FINAL AGREEMENT WITH THE COMPANY. FORM 990, PART VI, SECTION A, LINE 2 BRIAN GREENE, CHAIRMAN OF THE BOARD, IS MARRIED TO TRACY DAY, CHIEF EXECUTIVE OFFICER AND BOARD SECRETARY. FORM 990, PART VI, SECTION A, LINE 8B DUE TO THE SIZE OF ITS BOARD, SCIENCE FESTIVAL FOUNDATION DOES NOT HAVE COMMITTEES. ALL MEETINGS OF THE FULL BOARD WERE DOCUMENTED. FORM 990, PART VI, SECTION B, LINE 11 PRIOR TO FILING WITH THE IRS, THE DRAFT 990 IS REVIEWED INTERNALLY BY THE MANAGER OF FINANCE, OUTSIDE GENERAL COUNSEL AND PRESIDENT OF THE FOUNDATION. THEY DISCUSS ANY QUESTIONS OR COMMENTS WITH THE FOUNDATION'S OUTSIDE PREPARERS, PROVIDE SUGGESTED LANGUAGE WHERE APPROPRIATE AND REVIEW ANY REVISIONS MADE IN RESPONSE TO THEIR COMMENTS. ONCE A FINAL DRAFT IS READY, MANAGEMENT DISTRIBUTES IT TO THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION'S OUTSIDE GENERAL COUNSEL DISTRIBUTES THE CONFLICT OF INTEREST POLICY AND CONFLICT OF INTEREST QUESTIONNAIRE TO EACH OFFICER, DIRECTOR AND KEY EMPLOYEE ON AN ANNUAL BASIS, AND FOLLOWS UP WITH EACH INDIVIDUAL TO ENSURE THAT THE QUESTIONNAIRE HAS BEEN COMPLETED. EACH OFFICER, DIRECTOR AND KEY EMPLOYEE IS ASKED TO CERTIFY ANNUALLY THAT HE/SHE HAS REVIEWED THE FOUNDATION'S CONFLICT OF INTEREST POLICY AND HAS DISCLOSED ANY POTENTIAL OR ACTUAL CONFLICTS ON THE QUESTIONNAIRE. THE OUTSIDE GENERAL COUNSEL REVIEWS THE RESPONSES TO THE QUESTIONNAIRE TO DETERMINE IF THERE IS ANYTHING DISCLOSED THAT SHOULD BE BROUGHT TO THE ATTENTION OF THE BOARD. THE QUESTIONNAIRES ARE MAINTAINED WITH THE BOOKS AND RECORDS OF THE FOUNDATION. IN ADDITION TO FILLING OUT THE QUESTIONNAIRE, PURSUANT TO THE FOUNDATION'S POLICY, EACH OFFICER, DIRECTOR AND KEY EMPLOYEE IS REQUIRED TO ALERT THE OTHER MEMBERS OF THE BOARD IF A TRANSACTION OR FACT ARISES THAT COULD BE COVERED BY THE FOUNDATION'S POLICY AFTER THE INDIVIDUAL HAS COMPLETED HIS OR HER ANNUAL QUESTIONNAIRE. IF THE GENERAL COUNSEL IDENTIFIES ANY TRANSACTION THAT MIGHT PRESENT A CONFLICT OF INTEREST, ACTUAL OR PERCEIVED, HE OR SHE WOULD CONFER WITH THE PRESIDENT AND CHAIR TO DISCUSS HOW IT SHOULD BE DISCLOSED TO THE REST OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE AND OFFICER COMPENSATION IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. THE OUTSIDE GENERAL COUNSEL, MANAGER OF FINANCE AND PRESIDENT REVIEW AND COMPILE PUBLICLY AVAILABLE COMPENSATION INFORMATION FOR SIMILAR POSITIONS AT COMPARABLE ORGANIZATIONS, AS WELL AS COMPENSATION SURVEYS. THIS INFORMATION IS DISTRIBUTED AND DISCUSSED AT A MEETING OF THE BOARD OUT OF THE PRESENCE OF THE INDIVIDUAL WHOSE COMPENSATION IS BEING REVIEWED. AT THAT POINT IN THE MEETING, ANY REMAINING BOARD MEMBERS WHO HAVE AN INTEREST IN THE COMPENSATION (SUCH AS FAMILY MEMBERS OF THE EMPLOYEE OR OFFICER) ARE EXCUSED FROM THE MEETING. THE DISINTERESTED BOARD MEMBERS DETERMINE WHETHER THE PROPOSED COMPENSATION IS REASONABLE IN LIGHT OF THE COMPARABLES REVIEWED AND THE WORK BEING PERFORMED BY THE INDIVIDUAL IN QUESTION, AND VOTE ON THE COMPENSATION PACKAGE. THE DELIBERATION AND VOTE ON COMPENSATION ARE RECORDED IN THE MINUTES OF THE BOARD MEETING, WHICH ARE APPROVED BY THE DIRECTORS AT THE NEXT SCHEDULED BOARD MEETING. FORM 990, PART VI, SECTION C, LINE 19 THE FOUNDATION MAKES ITS AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. PART VII, LINE THE CHIEF EXECUTIVE OFFICER'S EARNINGS OF $270,000 FOR TRACY K. DAY INCLUDES AN ANNUAL SALARY OF $215,000 PLUS PAYMENT OF $55,000 AS PARTIAL PAYMENT FOR WORK PERFORMED IN 2006 THROUGH 2008 DURING THE FIRST YEARS OF OPERATIONS WHEN MS. DAY WORKED FULL-TIME WITHOUT ANY COMPENSATION. THE BALANCE DUE TO MS. DAY FOR COMPENSATION FOR THE 2006-2008 YEARS IS BEING PAID OUT OVER A FIVE YEAR PERIOD. PART VIII, LINE 8C LOSS ON FUNDRAISING EVENT IN THIS CURRENT FISCAL YEAR, THE ORGANIZATION IS SHOWING A NET LOSS FROM THE FUND RAISING EVENT AS THE FORM 990 HAS EXCLUDED $488,900 OF CONTRIBUTIONS THAT WERE RECEIVED SPECIFICALLY FOR THE FUNDRAISING EVENT. (SEE LINE 8A, PART VIII). THESE CONTRIBUTIONS ARE SHOWN ON LINE 1C, PART VIII. IF THESE CONTRIBUTIONS WERE INCLUDED WITH THE FUNDRAISING REVENUE SHOWN ON LINE 8A, THE NET INCOME FROM THE EVENT WOULD BE $291,693. PART IX, LINE 24A FESTIVAL PRODUCTION COSTS SIGNIFICANT EXPENSES WHICH ARE PART OF THE FESTIVAL PRODUCTION COSTS ON LINE 24A, PART IX, INCLUDE VIDEO TAPING, VIDEO PRODUCTION, VENUE RENTALS, VENUE PRODUCERS/MANAGERS, SET SCENERY AND VENUE OPERATIONS LABOR. PART XII, LINE 2C AUDITOR SELECTION AND OVERSIGHT PROCESS: THE OVERSIGHT PROCESS AND THE SELECTION PROCESS THAT THE ORGANIZATION USES FOR THE OVERSIGHT OF ITS AUDITORS HAS NOT CHANGED FROM THE PRIOR YEAR. OVERSIGHT OF THE AUDIT IS DONE BY THE ENTIRE BOARD OF DIRECTORS.