2014-09-19T11:52:03-05:00 2013-12-31 251622758 MAHER DUESSEL CPA'S 503 MARTINDALE STREET SUITE 600 PITTSBURGH PA 15212 990 2013-01-01 251053485 WESTERN PENNSYLVANIA CONSERVANCY WEST 4122882777 800 WATERFRONT DRIVE PITTSBURGH PA 15222 THOMAS SAUNDERS PRESIDENT AND CEO 4122882777 2014-09-19 1 ELIZABETH E KRISHER P01275616 4124715500 2013 2015-11-30 17:44:51Z THOMAS SAUNDERS 800 WATERFRONT DRIVE PITTSBURGH PA 15222 43074630 0 X WWW.WATERLANDLIFE.ORG X 1932 PA TO PROTECT AND RESTORE THE REGION'S LAND AND WATER, CREATE GARDENS AND GREEN SPACES, AND PRESERVE FALLINGWATER. 28 27 276 12600 0 -3684 17128082 12054863 3881382 3907508 3111196 3911119 1436536 1611334 25557196 21484824 40108 189831 0 0 10477704 10798758 16630 13412 1245249 7332069 9469939 17866511 20471940 7690685 1012884 91112251 95478869 2780456 2260376 88331795 93218493 X THE WESTERN PENNSYLVANIA CONSERVANCY PROTECTS AND RESTORES EXCEPTIONAL PLACES TO PROVIDE OUR REGION WITH CLEAN WATERS AND HEALTHY FORESTS, WILDLIFE AND NATURAL AREAS FOR THE BENEFIT OF PRESENT AND FUTURE GENERATIONS. THE CONSERVANCY CREATES GREEN SPACES AND GARDENS, CONTRIBUTING TO THE VITALITY OF OUR CITIES AND TOWNS, AND PRESERVES FALLINGWATER, A SYMBOL OF PEOPLE LIVING IN HARMONY WITH NATURE. 0 0 6630012 100000 3814 LAND CONSERVATION PROGRAM: THIS PROGRAM INCLUDES LAND PROTECTION, LAND STEWARDSHIP, NATURAL HERITAGE AND CONSERVATION SCIENCE. THESE PROGRAMS FOCUS ON THE CONSERVATION AND RESTORATION OF THE REGION'S NATURAL AREAS. WESTERN PENNSYLVANIA CONSERVANCY HAS HELPED ESTABLISH TEN STATE PARKS AND CONSERVED MORE THAN 235,000 ACRES OF NATURAL LANDS. 5031108 3624 5183644 FALLINGWATER ADMINISTRATION AND TOUR PROGRAM: FALLINGWATER IS FRANK LLOYD WRIGHT'S WORLD-FAMOUS MASTERWORK. A HOUSE THAT IS OPERATED AS AN ARCHITECTURAL MUSEUM, FALLINGWATER SYMBOLIZES PEOPLE LIVING IN HARMONY WITH NATURE. FALLINGWATER HOSTS MORE THAN 160,000 VISITORS, INCLUDING MORE THAN 10,000 STUDENTS, EACH YEAR. FALLINGWATER ALSO PROVIDES CURRICULUM PLANS FOR TEACHERS TO INTEGRATE INTO THEIR CLASSROOMS AND CONDUCTS LECTURES, EXHIBITIONS AND TOURS OF VARIOUS KINDS TO HELP LIFELONG LEARNERS ADVANCE THEIR KNOWLEDGE ABOUT ART, ARCHITECTURE AND NATURE. FALLINGWATER OFFERS ON-SITE WORKSHOPS AND INTERNSHIPS TO FURTHER ENHANCE THE EDUCATIONAL EXPERIENCES AVAILABLE AT THE LOCATION. 3741939 0 12684 GARDENS & GREENSPACES: THIS PROGRAM DEVELOPS, IMPLEMENTS, AND SUSTAINS GREENING INITIATIVES AND COMMUNITY GARDENS. SUPPORTED BY STRATEGIC PARTNERS AND VOLUNTEERS, THE COMMUNITY GARDENS AND GREENSPACE PROGRAM CONTRIBUTES TO THE VITALITY OF WESTERN PENNSYLVANIA'S CITIES AND TOWNS. WESTERN PENNSYLVANIA CONSERVANCY ENRICHES OUR REGION'S CITIES AND TOWNS THROUGH 135 COMMUNITY GARDENS AND GREENSPACES PLANTED WITH THE HELP OF 12,600 VOLUNTEERS. WESTERN PENNSYLVANIA CONSERVANCY ADMINISTERS THE TREEVITALIZE PROGRAM WHICH HAS PLANTED MORE THAN 20,700 TREES SINCE 2008 THROUGHOUT THE PITTSBURGH REGION. 1605687 34000 0 WATERSHED CONSERVATION PROGRAM: THE WESTERN PENNSYLVANIA CONSERVANCY'S WATERSHED CONSERVATION PROGRAM PROTECTS AND RESTORES OUR REGION'S RIVERS AND STREAMS FOR THE LONG-TERM BENEFIT OF PEOPLE AND WILDLIFE. WE PROVIDE COMPREHENSIVE ASSISTANCE TO COMMUNITIES AND LOCAL WATERSHED GROUPS, HELPING WITH PROJECT IDENTIFICATION, IMPLEMENTATION AND PROJECT MANAGEMENT. WE ALSO PARTNER WITH INDIVIDUAL LANDOWNERS AND BUSINESSES TO HELP THEM IMPROVE WATER QUALITY AND PROTECT THE ENVIRONMENT ON THEIR PROPERTIES. WESTERN PENNSYLVANIA CONSERVANCY HAS PROTECTED OR RESTORED 3,000 MILES OF RIVERS AND STREAMS. 766558 52207 16333 OTHER: THESE SERVICES CONSIST OF THE PREPARATION AND DISTRIBUTION OF EDUCATIONAL MATERIALS REGARDING CONSERVATION, ENVIRONMENTAL SCIENCE, ECOLOGICAL RESEARCH, AND COMMUNITY GREENING. 2372245 86207 16333 17775304 1 1 0 1 0 0 1 1 0 1 1 0 1 0 1 1 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 95 0 1 276 1 1 1 0 0 0 0 1 1 0 0 0 0 X 28 27 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CT DC FL GA HI IL KS LA ME MD MA MI MN MS NH NJ NM NY NC OH OK OR PA RI SC TN UT VA WV WI KY X X CONSTANCE L EADS 4125862364 800 WATERFRONT DRIVE PITTSBURGH PA 15222 SUSAN FITZSIMMONS CHAIR 2.00 X X 0 0 0 STEPHEN G ROBINSON VICE CHAIR 2.00 X X 0 0 0 ALEXANDER C SPEYER III TREASURER 2.00 X X 0 0 0 DAVID E BARENSFELD SECRETARY 2.00 X X 0 0 0 CAROLYN RIZZA DIRECTOR 2.00 X 0 0 0 CARYLE GLOSSER PHD DIRECTOR 2.00 X 0 0 0 DAN B FRANKEL DIRECTOR 2.00 X 0 0 0 DANIEL NYDICK DIRECTOR 2.00 X 0 0 0 DENNIS FREDERICKS DIRECTOR 2.00 X 0 0 0 DEBRA H DERMODY DIRECTOR 2.00 X 0 0 0 GEOFFREY P DUNN MD DIRECTOR 2.00 X 0 0 0 H LEWIS LOBDELL DIRECTOR 2.00 X 0 0 0 JAMES ABRAHAM DIRECTOR 2.00 X 0 0 0 JAMES C FINLEY PHD DIRECTOR 2.00 X 0 0 0 JOSHUA C WHETZEL III DIRECTOR 2.00 X 0 0 0 KENNETH WILLIAM STOUT DIRECTOR 2.00 X 0 0 0 MICHAEL POLITE DIRECTOR 2.00 X 0 0 0 PAUL J MOONEY DIRECTOR 2.00 X 0 0 0 ROBERT MCDOWELL DIRECTOR 2.00 X 0 0 0 SAMUEL H SMITH DIRECTOR 2.00 X 0 0 0 STEPHEN GUINN PHD DIRECTOR 2.00 X 0 0 0 TIMOTHY R THYREEN DIRECTOR 2.00 X 0 0 0 WILLIAM CONRAD DIRECTOR 2.00 X 0 0 0 BARBARA BOTT DIRECTOR 2.00 X 0 0 0 CATHERINE BAXTER SMITH DIRECTOR 2.00 X 0 0 0 FELIX G FUKUI DIRECTOR 2.00 X 0 0 0 E MICHAEL BOYLE DIRECTOR 2.00 X 0 0 0 THOMAS SAUNDERS PRESIDENT & CEO 40.00 X X 261970 0 50241 CYNTHIA CARROW VP GOVT REL & CO 40.00 X 199594 0 37848 LYNDA WAGGONER VP & DIR FALLINGWATER 40.00 X 185206 0 23625 CONSTANCE EADS VP & CFO 40.00 X 147689 0 31724 GENEVIEVE MCINTYRE VP INSTITUTIONAL ADV 40.00 X 154587 0 33622 SHAUN FENLON VP LAND CONSERVATION 40.00 X 144171 0 27163 JENIFER CHRISTMAN ASSOC. VP WATERSHED CONSER 40.00 X 105942 0 7798 CAREY MILLER SR. DIRECTOR OF DEVELOPMENT 40.00 X 103907 0 14352 1303066 0 226373 8 0 1 0 LAWN SENSE INC 450 DAVIDSON ROAD PITTSBURGH PA 15239 LANDSCAPING SERVICES 800098 BEST FEEDS OUTDOOR DESIGN LLC 8862 PEEBLES ROAD ALLISON PARK PA 15101 GARDEN/LANDSCAPING SERVICES 174704 PENN LANDSCAPE AND CEMENT WORK 5860 SALTSBURG ROAD VERONA PA 15147 LANDSCAPING SERVICES 170255 AM-GUARD INC PO BOX 6094 HERMITAGE PA 161481094 GUARD SERVICES 110008 SERRATELLI SCHIFFMAN & BROWN 2080 LINGLESTOWN ROAD SUITE 201 HARRISBURG PA 17110 LEGAL SERVICES 104690 5 6406 972474 3786829 7289154 379000 12054863 ADMISSIONS/FALLINGWATER 713990 3733860 3733860 BARN ACTIVITIES 900099 84076 84076 EDUCATION PROGRAMS 900099 54669 54669 OTHER 900099 34903 34903 3907508 809334 809334 95976 95976 336083 129692 206391 206391 206391 23619642 20517857 3101785 3101785 3101785 2251224 942257 1308967 1308967 21484824 5216475 0 4213486 189831 189831 1366897 870165 288327 208405 6859261 5762097 598275 498889 630933 551216 49819 29898 1941667 1580855 191523 169289 12000 10320 1320 360 146851 134233 7243 5375 55751 47945 6133 1673 63822 63742 20 60 13412 13412 186422 159955 20863 5604 705168 690500 14668 121908 117657 822 3429 1547580 1457312 47481 42787 504352 467875 21878 14599 242800 213779 10668 18353 790664 750664 40000 298496 273195 16402 8899 EASEMENT ACQUISITION 2241030 2151388 44821 44821 OUTSIDE SERVICES 1677112 1530527 44847 101738 REPAIRS & MAINTENANCE 207877 171399 27350 9128 POSTAGE 146532 97278 1192 48062 521574 483371 17735 20468 20471940 17775304 1451387 1245249 3002749 1817861 3770581 2922544 4417295 4010577 1605401 1695260 349270 363849 598985 624678 19823611 7158216 13236568 12665395 36510019 42695174 2785253 3580841 24836130 25102690 91112251 95478869 866893 619438 50675 588223 1463 938831 503277 922594 549438 2780456 2260376 X 58503421 61418732 16747543 16779345 13080831 15020416 88331795 93218493 91112251 95478869 X 1012884 3904291 -30477 X 0 1 X 1 1 1 X 9084250 11776246 12947963 17128082 12131424 63067965 9084250 11776246 12947963 17128082 12131424 63067965 12397592 50670373 1210768 1412040 1578624 1652010 1241393 7094835 70162800 18405026 0.72220 0.68920 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 63822 63822 20408118 20471940 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 64406 64237 61188 63822 253653 250000 250000 250000 250000 1000000 1500000 X X X X 184 34865.00 1 4 1 1 3536.00 228772 1 5603040 X X X 0 0 0 9129711 1933492 1382455 327422 12118236 8500847 434418 640053 445607 9129711 8663916 399765 -56684 506150 8500847 8218676 185560 739680 480000 8663916 7051166 218316 1294194 345000 8218676 0.63000 0.37000 0 0 685000 685000 10348367 3378074 6970293 2477032 1636386 840646 6313212 2143756 4169456 12665395 FALLINGWATER AND FINE ART COLLECTION 5603040 C LAND CONSERVATION PROJECTS 19499650 C 25102690 CHARITABLE GIFT ANNUITIES PAYABLE 428998 LAND ESCROWS 120400 OTHER 40 549438 X 26507148 3904291 76561 1041472 5022324 21484824 0 21484824 21620450 76561 1071949 1148510 20471940 0 20471940 PART II, LINE 3: A 1989 EASEMENT WAS AMENDED TO RESOLVE A VIOLATION INVOLVING STRUCTURES THAT WERE BUILT OUTSIDE THE BUILDING LIMITS. IN EXCHANGE FOR ALLOWING THE STRUCTURES TO REMAIN, BUILDING RIGHTS ON 1.29 ACRES OF THE LANDOWNER'S PROPERTY WERE EXTINGUISHED AND THE LANDOWNER GAVE UP A RIGHT TO BUILD ANOTHER HOUSE IN AN ADJACENT LOT. IN ADDITION, 3.2 ACRES OF THE LANDOWNER'S PREVIOUSLY CLEARED LAND ADJACENT TO A NATURAL FOREST AREA WERE PLANTED WITH DIVERSE TREE SPECIES TO RESTORE THE LAND TO ITS NATURAL STATE AND TO PROVIDE CANOPY COVERAGE AND BETTER HORIZONTAL AND VERTICAL STRUCTURAL DIVERSITY. ANOTHER EASEMENT WAS AMENDED TO RESOLVE LITIGATION INVOLVING COMMERCIAL ACTIVITIES CONDUCTED BY OWNERS. IN EXCHANGE FOR ALLOWING LIMITED COMMERCIAL ACTIVITIES TO OCCUR PRIMARILY INSIDE STRUCTURES, TWO RESERVED SUBDIVISION LOTS AND TWO ASSOCIATED BUILDING RIGHTS WERE EXTINGUISHED. IN RELATION TO AN ADDITIONAL EASEMENT: DUE TO AN ERRONEOUS SURVEY, WPC ENTERED INTO A BOUNDARY LINE AGREEMENT AT THE END OF 2012 WITH THE EASEMENT OWNER AND THE NEIGHBORS TO THE WEST AND EAST. THE AGREED-UPON BOUNDARY SHIFTED THE EASED PROPERTY SLIGHTLY, BUT RESULTED IN A SMALL GAIN OF FRONTAGE ALONG AN ECOLOGICALLY IMPORTANT RIVER. AN ADDITIONAL ORIGINAL EASEMENT HINDERED THE PRESERVATION OF THE ARCHITECTURAL, HISTORICAL, AND CULTURAL VALUES AND SIGNIFICANCE OF THE PROPERTY AND BUILDING. THE EASEMENT WAS AMENDED AND RESTATED TO ALLOW REHABILITATION TO THE PROPERTY AND BUILDING IN ORDER TO BETTER FACILITATE THE PRESERVATION OF THE HISTORIC BUILDING. ALSO, THE SECRETARY OF THE U.S. DEPARTMENT OF THE INTERIOR'S STANDARDS FOR REHABILITATION WERE INCORPORATED INTO THE EASEMENT'S TERMS. THE PROPERTY OWNER OF THIS EASEMENT IS ALSO A NON-PROFIT ORGANIZATION. PART II, LINE 9: THE CONSERVANCY ACQUIRES, PROTECTS AND HOLDS LAND FOR CONSERVATION PURPOSES. LAND IS VALUED AT COST, OR IN THE CASE OF DONATED LAND, AT FAIR VALUE ON THE DATE OF THE CONTRIBUTION. THE CONSERVANCY CAPITALIZES CERTAIN COSTS INCURRED DURING THE TIME THE LAND IS BEING ACQUIRED AND PROTECTION ACTIVITIES ARE UNDERWAY. THE COSTS INCLUDE DEVELOPMENT, LAND IMPROVEMENTS, LEGAL FEES, AND MISCELLANEOUS OTHER ITEMS. GRANTS RECEIVED AS REIMBURSEMENT FOR LAND COSTS ON PROJECTS WHERE THE CONSERVANCY DOES NOT INTEND TO HOLD THE LAND FOR LONG-TERM PURPOSES REDUCE THE COST OF THE LAND. THE CONSERVANCY HOLDS CERTAIN CONSERVATION EASEMENTS AND DEED RESTRICTIONS (EASEMENTS). THE CONSERVANCY OBTAINS EASEMENTS BY THE SALE OF A PIECE OF LAND OWNED BY THE CONSERVANCY, WHERE PART OF THE AGREEMENT IS THAT THE CONSERVANCY RETAINS THE CONSERVATION EASEMENT ON THE LAND. THE CONSERVANCY ALSO OBTAINS EASEMENTS FROM THIRD PARTIES BY DONATION, OR BY RESERVATION OF RIGHTS UPON SALE OF LAND, UNDER WHICH A THIRD PARTY MAINTAINS ITS OWNERSHIP OF THE UNDERLYING LAND. EASEMENTS ACQUIRED THROUGH DONATION AND EASEMENTS ESTABLISHED BY RESERVATION OF RIGHTS ARE NOT RECORDED IN THE FINANCIAL STATEMENTS. ADDITIONALLY, THE CONSERVANCY OBTAINS EASEMENTS THROUGH PURCHASES DIRECTLY FROM OWNERS. PURCHASED EASEMENTS ARE RECORDED AT COST AND REDUCED TO A CARRYING VALUE OF $1 BY THE AMOUNT OF ANY RESTRICTED GRANTS RECEIVED SPECIFICALLY FOR THE EASEMENT PURCHASES AND BY EXPENSING THE AMOUNT OF THE EASEMENT PURCHASE FUNDED BY UNRESTRICTED REVENUE. PART III, LINE 4: FALLINGWATER WAS DESIGNED IN 1935 BY FRANK LLOYD WRIGHT AS A WEEKEND HOME FOR THE EDGAR J. KAUFMANN FAMILY OF PITTSBURGH. CONSTRUCTED BETWEEN 1936 AND 1939, IT COMBINED INNOVATIVE ENGINEERING AND DESIGN WITH MODERN MATERIALS IN A WAY THAT HELPED INSTILL MODERNISM AS A POWERFUL MOVEMENT IN AMERICA. DRAMATICALLY CANTILEVERED OVER THE WATERFALL, THE HOUSE WAS CONSTRUCTED OF REINFORCED CONCRETE AND NATIVE SANDSTONE QUARRIED ON THE SITE. IT IS COMPRISED OF A SERIES OF REINFORCED CONCRETE TRAYS STACKED ONE UPON THE OTHER AND SEPARATED BY STONE PIERS. THE FIRST FLOOR CONSISTS OF THE LIVING, DINING AND KITCHEN AREAS; THE SECOND AND THIRD LEVELS HAVE A TOTAL OF FOUR BEDROOMS EACH WITH A BATH AND TERRACE. CLIMBING THE HILL BEHIND THE HOUSE IS THE GUEST HOUSE AND SERVANTS QUARTERS. UPSTREAM FROM FALLINGWATER IS A CRYPT DESIGNED BY EDGAR KAUFMANN, JR. AND CONSTRUCTED IN 1953. THE CRYPT IS "WRIGHTIAN" IN STYLE WITH BRONZE DOORS BY ALBERTO GIACOMETTI. FALLINGWATER'S ART COLLECTION IS COMPRISED OF MORE THAN 950 WORKS OF ART INCLUDING PRINTS, PAINTINGS, SCULPTURE, FURNITURE, CERAMICS, ART GLASS, AND MISCELLANEOUS HOUSEHOLD OBJECTS. OF PARTICULAR SIGNIFICANCE IN THE COLLECTION ARE THE 169 PIECES OF ORIGINAL WALNUT FURNITURE, CUSTOM DESIGNED BY FRANK LLOYD WRIGHT FOR FALLINGWATER. THESE PIECES REPRESENT ONE OF THE MOST COMPLETE ENSEMBLES OF WRIGHT DESIGNED, SITE-SPECIFIC FURNITURE. THE REMAINING ARTIFACTS ON DISPLAY WERE COLLECTED BY THE KAUFMANN FAMILY AND REPRESENT AN ECLECTIC RANGE OF OBJECTS. THEY UNDERLINE THE FAMILY'S BELIEF IN THE POWER OF GOOD DESIGN TO ENRICH THE QUALITY OF MODERN LIFE, A BELIEF SHARED BY FRANK LLOYD WRIGHT. IN ADDITION TO WORKS OF ART, THERE ARE 1,340 FAMILY BOOKS, INCLUDING AN IMPORTANT COLLECTION OF ARCHITECTURAL BOOKS. THE FALLINGWATER ARCHIVES CONTAIN: 396 PHOTOGRAPHS (1880-1996) OF THE BEAR RUN REGION, FALLINGWATER AND SURROUNDING PROPERTY, CONSTRUCTION OF THE HOUSE, AND MEMBERS OF THE EDGAR J. KAUFMANN FAMILY; 875 PHOTOGRAPHS OF WESTERN PA BY REGIONAL PHOTOGRAPHER LUKE SWANK; 1,100 DOCUMENTS (1934-1989) RELATING TO THE KAUFMANN FAMILY'S OWNERSHIP AND ASSOCIATION WITH FALLINGWATER; 16 MAPS OF THE SURROUNDING AREA, 3 ORIGINAL PENCIL DRAWINGS BY VICTOR HAMMER; 150 COPIES OF DRAWINGS PRODUCED BY WRIGHT FOR THE KAUFMANNS (THE ORIGINALS WERE PLACED AT COLUMBIA UNIVERSITY'S AVERY LIBRARY BY EDGAR KAUFMANN, JR. PRIOR TO HIS GIFT OF FALLINGWATER TO WPC); 108 PUBLICATIONS RELATED TO THE HOUSE AND FAMILY; 60 MINUTES OF BLACK AND WHITE FILM FOOTAGE THAT INCLUDES HOME MOVIES OF THE FAMILY, THE BEAR RUN PROPERTY PRIOR TO THE CONSTRUCTION OF FALLINGWATER, AND FILMS OF THE CONSTRUCTION ITSELF; 5 VIDEO TAPES AND 25 ORAL HISTORY INTERVIEWS OF FORMER KAUFMANN EMPLOYEES AND FRIENDS, AND APPROXIMATELY 1,000 PIECES OF ORIGINAL KAUFMANN CORRESPONDENCE. A NATIONAL HISTORIC LANDMARK, FALLINGWATER IS AN INTERNATIONAL TREASURE. IN A 2000 SURVEY, THE AMERICAN INSTITUTE OF ARCHITECTS' MEMBERS VOTED FALLINGWATER THE BUILDING OF THE CENTURY, BY A 3 TO 1 MARGIN, AND THE STATE OF PENNSYLVANIA NAMED FALLINGWATER A COMMONWEALTH TREASURE. IT IS THE ONLY MAJOR WRIGHT-DESIGNED BUILDING TO HAVE COME INTO THE PUBLIC DOMAIN INTACT, COMPLETE WITH THE BUILDING, LANDSCAPE, ORIGINAL WRIGHT-DESIGNED FURNISHINGS, AND FAMILY'S ART COLLECTION. FALLINGWATER AND ITS COLLECTIONS ARE AN INVALUABLE PUBLIC RESOURCE. WITH CLOSE TO 160,000 VISITORS A YEAR, THE MUSEUM SERVES AS AN EDUCATIONAL AND CULTURAL INSTITUTION FOR THE INTERNATIONAL COMMUNITY. PART X, LINE 2: THE CONSERVANCY HAS BEEN GRANTED AN EXEMPTION FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE INTERNAL REVENUE SERVICE (IRS) HAS CLASSIFIED THE CONSERVANCY AS OTHER THAN A PRIVATE FOUNDATION. THE CONSERVANCY IS SUBJECT TO INCOME TAX ON CERTAIN INCOME THAT IS CONSIDERED UNRELATED BUSINESS INCOME, IF EARNED. THE CONSERVANCY ANNUALLY FILES A FORM 990, AND THE FORM 990 IS SUBJECT TO EXAMINATION BY THE IRS GENERALLY FOR THREE YEARS AFTER IT IS FILED. THE CONSERVANCY HAS ASSESSED THE TAX POSITIONS IT HAS TAKEN OR EXPECTS TO TAKE IN ITS TAX RETURNS AND NO LIABILITY HAS BEEN DETERMINED TO BE NECESSARY. PART XI, LINE 2D - OTHER ADJUSTMENTS: ADJUSTMENT IN CHARITABLE GIFT ANNUITIES -30,477. RENTAL EXPENSES 129,692. COST OF GOODS SOLD 942,257. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 129,692. COST OF GOODS SOLD 942,257. X X X X X 1 DONOR SERVICES GROUP 6715 SUNSET BOULEVARD LOS ANGELES CA 90028 TELEMARKETING 0 4400 13412 -9012 4400 13412 -9012 AL AK AR CA CO CT FL GA HI IL KS KY LA ME MD MA MI MN MS MO NH NJ NM NC ND OH OR PA RI SC TN UT VA WA WV WI DC NY OK 1 THE CONSERVATION FUND 1655 N FORT MYER DRIVE SUITE 1300 ARLINGTON VA 22209 521388917 501(C)(3) 100000 OTHER GRANT FOR LAND ACQUISITION BRENTWOOD BOROUGH 3624 BROWNSVILLE ROAD PITTSBURGH PA 15227 256000287 51819 APPRAISAL LAND PARCEL ADDITION TO THE BOROUGH'S PARK HOLDINGS 2 PART I, LINE 2: THE WESTERN PENNSYLVANIA CONSERVANCY PROVIDES RELATIVELY FEW GRANTS TO OTHER ORGANIZATIONS, AND FOR THOSE GRANTS THAT ARE MADE, THE CONSERVANCY REQUIRES REPORTS TO ENSURE GRANTS ARE EXPENDED FOR STATED PURPOSE, STATUS UPDATES ON THE PROJECT, AND APPROVAL OF CONSTRUCTION DESIGNS FOR CONSTRUCTION PROJECTS. X X X X X 0 0 0 0 0 0 0 0 0 THOMAS SAUNDERS PRESIDENT & CEO 261280 0 0 0 690 0 36426 0 13815 0 312211 0 0 0 CYNTHIA CARROW VP GOVT REL & CO 179884 0 0 0 19710 0 25576 0 12272 0 237442 0 0 0 LYNDA WAGGONER VP & DIR FALLINGWATER 163896 0 0 0 21310 0 21746 0 1879 0 208831 0 0 0 CONSTANCE EADS VP & CFO 146435 0 0 0 1254 0 19471 0 12253 0 179413 0 0 0 GENEVIEVE MCINTYRE VP INSTITUTIONAL ADV 153897 0 0 0 690 0 21334 0 12288 0 188209 0 0 0 SHAUN FENLON VP LAND CONSERVATION 143739 0 0 0 432 0 13399 0 13764 0 171334 0 0 0 X 2 379000 FAIR MARKET VALUE X LANDSCAPE 14 45947 X SUPPLIES 65 26060 X MISCELLANEOUS 1 4454 X ART 1 100 2 0 1 0 FORM 990, PART VI, SECTION A, LINE 6 THOSE PERSONS, OR ORGANIZATIONS CONSISTING OF PERSONS GROUPED TOGETHER, WHOSE AIMS AND ACTIONS ARE COMPATIBLE WITH THE PURPOSES OF THIS CORPORATION AND WHO MEET SUCH REQUIREMENTS FOR REGULAR MEMBERSHIP OR AFFILIATIONS AS MAY FROM TIME TO TIME BE ESTABLISHED BY THE BOARD OF DIRECTORS, SHALL BE ELIGIBLE FOR MEMBERSHIP OR AFFILIATION TO THE CORPORATION. CLASSES OF MEMBERSHIP - THE BOARD OF DIRECTORS MAY CREATE CLASSES OF MEMBERSHIP OR CHANGE CLASSES OF MEMBERSHIP AT ITS SOLE DISCRETION. HONORARY MEMBERSHIP - INDIVIDUALS WHO HAVE RENDERED EMINENT SERVICE IN THE AREAS OF ENDEAVOR ENUMERATED IN THE PURPOSE CLAUSE OF THE CORPORATION'S ARTICLES OF INCORPORATION, OR WHO HAVE RENDERED EMINENT SERVICE TO THE CORPORATION, MAY BE NOMINATED BY THE BOARD OF DIRECTORS FOR ELECTION TO HONORARY MEMBERSHIP BY VOTE OF THE MEMBERSHIP AT AN ANNUAL MEETING OF MEMBERS. HONORARY MEMBERS SHALL BE MEMBERS OF THE CORPORATION FOR LIFE. LIFE MEMBERSHIP - INDIVIDUALS WHO ARE LIFE MEMBERS OF THE CORPORATION ON THE DATE OF THE ANNUAL MEETING OF MEMBERS IN 1970 SHALL CONTINUE THEREAFTER FOR THEIR RESPECTIVE LIVES AS LIFE MEMBERS OF THE CORPORATION. POWER TO VOTE AND HOLD OFFICE - INDIVIDUAL REGULAR MEMBERS AND LIFE MEMBERS SHALL HAVE POWER TO VOTE AND HOLD OFFICE. ORGANIZATIONS AND HONORARY MEMBERS SHALL HAVE NO VOTE AND SHALL NOT BE ELIGIBLE TO HOLD OFFICE. RESIGNATION - ANY MEMBER MAY RESIGN HIS MEMBERSHIP IN THE CORPORATION BY NOTIFYING THE BOARD OF DIRECTORS OF HIS DESIRE TO RESIGN. SUSPENSION OR EXPULSION - ANY MEMBER MAY BE SUSPENDED OR EXPELLED BY A MAJORITY VOTE OF THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS ELECT BOARD MEMBERS. THE BOARD ELECTS OFFICERS. FORM 990, PART VI, SECTION B, LINE 11 INITIAL REVIEWS OF FORM 990 WERE PERFORMED BY UPPER MANAGEMENT AND APPLICABLE STAFF. FINAL REVIEWS ARE PERFORMED BY THE ENTIRE BOARD. CHANGES NEEDED PURSUANT TO REVIEWS ARE INCORPORATED BEFORE FINAL ISSUANCE. FORM 990, PART VI, SECTION B, LINE 12C EACH DIRECTOR, PRINCIPAL OFFICER, MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS AND SENIOR EXECUTIVE TEAM MEMBERS SHALL ANNUALLY RECEIVE A COPY OF THE CONFLICT OF INTEREST POLICY AND SIGN A STATEMENT WHICH AFFIRMS 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 ORGANIZATION IS CHARITABLE AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. AN INDIVIDUAL'S FAILURE TO SUBMIT A SIGNED ANNUAL STATEMENT WILL RESULT IN THE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION WHICH MAY INCLUDE REMOVAL FROM THE GOVERNING BOARD OR ANY COMMITTEE. THE PRESIDENT SHALL MAINTAIN A LIST OF ALL BOARD OF DIRECTORS, OFFICERS AND SENIOR ADMINISTRATIVE STAFF TO WHOM THIS POLICY STATEMENT APPLIES. THE PRESIDENT SHALL DISTRIBUTE ANNUALLY A COPY OF THIS POLICY TO THOSE INDIVIDUALS TO WHOM IT APPLIES. TO ENSURE THE ORGANIZATION OPERATES IN A MANNER CONSISTENT WITH CHARITABLE PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS, PERIODIC REVIEWS SHALL BE CONDUCTED. THE PERIODIC REVIEWS SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: A. WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. B. WHETHER PARTNERSHIPS, JOINT VENTURES, AND ARRANGEMENTS WITH MANAGEMENT ORGANIZATIONS CONFORM TO THE ORGANIZATION'S WRITTEN POLICIES, ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR IN AN EXCESS BENEFIT TRANSACTION. WHEN CONDUCTING THE PERIODIC REVIEWS AS PROVIDED FOR IN ARTICLE VII, THE ORGANIZATION MAY, BUT NEED NOT, USE OUTSIDE ADVISORS. IF OUTSIDE EXPERTS ARE USED, THEIR USE SHALL NOT RELIEVE THE GOVERNING BOARD OF ITS RESPONSIBILITY FOR ENSURING PERIODIC REVIEWS ARE CONDUCTED. IF THE GOVERNING BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE MEMBER'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, THE GOVERNING BOARD OR COMMITTEE DETERMINES THE MEMBER HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION WHICH MAY INCLUDE, REMOVAL FROM THE GOVERNING BOARD AND TERMINATION OF SERVICES. FORM 990, PART VI, SECTION B, LINE 15 WPC UTILIZES AN INDEPENDENT COMPENSATION CONSULTING FIRM TO REVIEW ITS WAGE AND SALARY PROGRAM, GENERALLY EVERY TWO YEARS. EXECUTIVE COMPENSATION IS REVIEWED MORE FREQUENTLY. MULTIPLE EXTERNAL SALARY SOURCES ARE USED FOR MARKET COMPARISONS FOR BENCHMARKED POSITIONS. IN REVIEWING COMPENSATION, 8 EXTERNAL SALARY SOURCES ARE UTILIZED FOR COMPARISON PURPOSES: 1. ECONOMIC RESEARCH INSTITUTE - EXECUTIVE COMPENSATION ASSESSOR 2. COMPENSATION IN NON-PROFIT ORGANIZATIONS - ABBOT, LANGER & ASSOCIATES 3. EXECUTIVE COMPENSATION - NON PROFIT SURVEY PRM CONSULTING 4. COMPENSATION DATA, PENNSYLVANIA - THE PENNSYLVANIA CHAMBER OF COMMERCE AND COMPDATA SURVEYS. 5. SURVEY OF EXECUTIVE COMPENSATION - BUSINESS AND LEGAL REPORTS, INC. 6. EXECUTIVE SALARY AND BENEFITS SURVEY - AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES. 7. TOP MANAGEMENT REPORT - WATSON WYATT 8. INDEPENDANT CONSULTANT'S CONFIDENTIAL CLIENT FILES IN ORDER TO MAINTAIN A COMPETITIVE AND EQUITABLE SALARY STRUCTURE, WESTERN PENNSYLVANIA CONSERVANCY UNDERTAKES AN INDEPENDENT MARKET REVIEW OF SALARIES FOR ALL STAFF BI-ANNUALLY. THE BOARD OF DIRECTORS AUTHORIZED THE PERSONNEL COMMITTEE OF THE BOARD TO REVIEW AND APPROVE ALL EXECUTIVE SALARY CHANGES UNDER IRS INTERMEDIATE SANCTIONS RULES FOR DISQUALIFIED PERSONS. IN ADDITION TO THE PRESIDENT/CEO, THE PERSONNEL COMMITTEE SETS COMPENSATION FOR THE VICE PRESIDENT OF FINANCE/CHIEF FINANCIAL OFFICER; VICE PRESIDENT, FALLINGWATER; VICE PRESIDENT, LAND CONSERVATION; VICE PRESIDENT, INSTITUTIONAL ADVANCEMENT; AND ASSOCIATE VICE PRESIDENT, WATERSHED CONSERVATION. THE PERSONNEL COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS AND APPROVES ALL EXECUTIVE SALARY CHANGES UNDER IRS INTERMEDIATE SANCTION RULES FOR DISQUALIFIED PERSONS. WPC INCLUDES IN THE EXECUTIVE COMPENSATION REVIEW ANY EMPLOYEE OPERATING WITH AN OFFICER TITLE (APPROVED BY THE BOARD OF DIRECTORS). EXECUTIVES, INCLUDING THE PRESIDENT/CEO, RECEIVE THE SAME BENEFIT PACKAGE AS ALL OTHER BENEFIT-ELIGIBLE STAFF. TWO EXECUTIVES RECEIVE COMPANY-PROVIDED VEHICLES. THE CONSERVANCY HAS NO OTHER SPECIAL EXECUTIVE BENEFIT PACKAGES OR INCENTIVE PROGRAMS. FORM 990, PART VI, SECTION C, LINE 19 WESTERN PENNSYLVANIA CONSERVANCY MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: ADJUSTMENT IN CHARITABLE GIFT ANNUITIES -30,477.