2013-12-12T11:31:50-06:00 2013-06-30 410746749 CLIFTONLARSONALLEN LLP 601 WEST RIVERSIDE SUITE 700 SPOKANE WA 992010622 990 2012-07-01 911075542 WASHINGTON STATE UNIVERSITY FOUNDATION WASH 5093351686 PO BOX 641927 PULLMAN WA 991641927 GIL PICCIOTTO 5093351686 2013-12-12 1 HARLEY B RECKORD CPA P00060217 5093636300 2013-12-11 2012 2015-11-30 17:44:51Z MARK HERMANSON PO BOX 641927 PULLMAN WA 991641927 129880280 0 X HTTP://WSUFOUNDATION.WSU.EDU X 1979 WA SEE SCHEDULE O 27 26 50 221 0 0 74238334 46136349 0 0 8117790 9006531 9482565 10272666 91838689 65415546 44840954 46515041 0 0 4722718 4938307 492516 489820 6099176 5437097 4688733 55493285 56631901 36345404 8783645 382442959 409129712 34169823 33011230 348273136 376118482 X THE MISSION OF THE FOUNDATION IS TO PROMOTE, ACCEPT, AND MAXIMIZE PRIVATE SUPPORT FOR PROGRAMS, INITIATIVES, AND PROPERTIES OF WASHINGTON STATE UNIV AND ITS REGIONAL CAMPUSES. THE FOUNDATION ALSO PRUDENTLY MANAGES, INVESTS, AND STEWARDS THE ASSETS ENTRUSTED TO IT. 0 0 24390216 24390216 DEPARTMENTAL SUPPORTTHE FOUNDATION DOES NOT DIRECTLY PROVIDE THE PROGRAM SERVICE. HOWEVER, CONTRIBUTIONS RECEIVED FOR THIS PURPOSE WERE DISTRIBUTED TO THE UNIVERSITY FOR USE IN ACCORDANCE WITH DONOR AGREEMENTS. THESE CONTRIBUTIONS EARMARKED FUNDS FOR GENERAL AND ADMINISTRATIVE EXPENSES OF THE UNIVERSITY. THIS GENERAL CLASS OF CONTRIBUTION NEITHER PROMOTES ANY SECTION OF THE UNIVERSITY NOR DOES IT CORRESPOND TO A SPECIFIC PROGRAM. 16275190 16275190 SCHOLARSHIPS AND FELLOWSHIPS THE FOUNDATION DOES NOT DIRECTLY AWARD SCHOLARSHIPS AND FELLOWSHIPS. HOWEVER, CONTRIBUTIONS FOR THESE PURPOSES WERE DISTRIBUTED TO THE UNIVERSITY FOR USE IN ACCORDANCE WITH DONOR AGREEMENTS. STUDENT FINANCIAL AID WAS RECEIVED FOR LOANS, GRADUATE FELLOWSHIPS, AND SCHOLARSHIPS BASED ON MERIT, NEED, AND MULTICULTURISM. 2277147 2277147 FACILITIES OPERATION AND MAINTENANCETHE FOUNDATION DOES NOT DIRECTLY PROVIDE FACILITY AND MAINTENANCE PROGRAM SERVICES. HOWEVER, CONTRIBUTIONS RECEIVED FOR THIS PURPOSE ARE DISTRIBUTED TO THE UNIVERSITY FOR USE IN ACCORDANCE WITH DONOR AGREEMENTS. CONTRIBUTIONS WERE RECEIVED FOR THE PURCHASE AND MAINTENANCE OF BUILDINGS AND EQUIPMENT. 3572488 3572488 RESEARCH- 1,281,278THE FOUNDATION DOES NOT DIRECTLY PROVIDE THIS PROGRAM SERVICE. HOWEVER, CONTRIBUTIONS RECEIVED FOR THIS PURPOSE WERE DISTRIBUTED TO THE UNIVERSITY FOR DISBURSEMENT IN ACCORDANCE WITH DONOR AGREEMENTS. CONTRIBUTIONS WERE RECEIVED TO FURTHER RESEARCH PROJECTS AT THE UNIVERSITY.FACULTY AND STAFF SUPPORT- 2,291,210 THE FOUNDATION DOES NOT DIRECTLY PROVIDE INSTRUCTIONAL SUPPORT. HOWEVER, CONTRIBUTIONS RECEIVED FOR THIS PURPOSE WERE DISTRIBUTED TO THE UNIVERSITY FOR DISBURSEMENT IN ACCORDANCE WITH DONOR AGREEMENTS. INSTRUCTIONAL SUPPORT WAS LARGELY RECEIVED FOR DISTINGUISHED PROFESSORSHIPS, ENDOWED CHAIRS, AND INSTRUCTIONS. 3572488 3572488 46515041 1 1 0 1 0 0 0 0 1 1 1 0 0 1 1 1 1 0 0 0 1 1 0 1 0 0 0 1 0 1 0 0 0 0 0 1 0 0 1 1 0 0 0 1 0 0 0 1 X 3 0 1 50 0 0 0 0 0 0 0 0 1 0 X 27 26 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 WA X X KIM HOLAPA 5093351686 PO BOX 641927 PULLMAN WA 99164 ANGELO CRAIG 0.40 X 0 0 0 BRELSFORD DUANE 0.30 X 0 0 0 BUSTAD LEO 0.30 X 0 0 0 CARSON SCOTT 0.30 X 0 0 0 COCHRAN HAROLD 0.40 X 0 0 0 CREIGHTON JACK 0.20 X 0 0 0 EGGERT CHUCK 0.50 X 0 0 0 ELLINGSON RICK 0.10 X 0 0 0 FLOYD ELSON 0.30 X 0 0 0 GRABER BILL 0.40 X 0 0 0 GRANT DAVID 0.60 X 0 0 0 GRIM DOUG 0.30 X 0 0 0 HARMON DAN 0.50 X 0 0 0 KING JIM 0.60 X 0 0 0 LEWIS LEE 0.30 X 0 0 0 MENDELSON JOE 0.40 X 0 0 0 MEYERS GINA 0.60 X 0 0 0 MINGE JOHN 0.10 X 0 0 0 PELO DONALD 0.60 X 0 0 0 PRENGUBER TOM 0.50 X 0 0 0 ROGERS JUDY 0.60 X 0 0 0 ROJAS TONY 0.40 X 0 0 0 STEELE-HABERLY LISA 0.10 X 0 0 0 THOMAS DOUGLAS 0.40 X 0 0 0 THOMPSON LISA 0.40 X 0 0 0 VOILAND GENE 0.30 X 0 0 0 WRIGHT HOWARD 0.40 X 0 0 0 HERMANSON MARK 40.00 X 155590 0 25575 CONNELL MICHAEL 40.00 X 137033 0 20573 HARVEY KEVIN 40.00 X 146746 0 18519 PICCIOTTO GIL 40.00 X 131418 0 19969 HARRELSON CHERYL 40.00 X 121516 0 19200 DURHAM TREVOR 40.00 X 106185 0 17839 MORGAN SHARON 40.00 X 100883 0 17898 ZAVALA JUAN 40.00 X 99068 0 17248 OGDEN GAYLE 40.00 X 108776 0 20810 MILES VICTORIA 40.00 X 102056 0 17550 1209271 0 195181 9 0 1 0 RUFFALCODY PO BOX 3018 CEDAR RAPIDS IA 52406 FUNDRAISING 384377 MERCER 701 MARKET STREET SUITE 100 SAINT LOUIS MO 63101 INVESTMENT MGT 364632 LIONFISH 11010 NORTHRUP WAY BELLEVUE WA 98004 MARKETING 119335 3 46136349 2651349 46136349 3131946 3131946 70339319 64464734 5874585 5874585 5874585 SUPPORT FROM WSU 900099 5073411 5073411 ADVANCEMENT FEES 900099 4550366 4550366 OTHER ENDOWMENT INCOME 900099 648889 648889 10272666 65415546 0 0 19279197 X 46227250 46227250 287791 287791 1319570 181103 1138467 2577158 1506145 1071013 269162 116545 152617 479596 207661 271935 292821 126789 166032 68223 68223 21999 21999 489820 489820 1070010 1070010 14446 14446 431941 58721 373220 166404 166404 353473 353473 305020 27697 277323 305550 305550 129319 129319 CONSTITUENCY SUPPORT 1500170 1500170 UNCOLLECTIBLE ACCTS EXP 179889 179889 CULTIVATION 99130 99130 OTHER FEES FOR SERVICES 30457 30457 12702 6915 5787 56631901 46515041 4017684 6099176 740 500 422516 368966 47527159 44741690 7431 5876 239718 561540 21539 11066 3843145 1098898 2612766 2744247 281759973 310398881 49851117 50296946 382442959 409129712 361893 505786 18223866 19110839 15584064 13394605 34169823 33011230 X 1840216 2431623 26451926 37620434 319980994 336066425 348273136 376118482 382442959 409129712 X 8783645 20606183 1070010 -2614492 X X 0 1 X 1 0 X 40986054 29135326 41063976 74238334 46136349 231560039 40986054 29135326 41063976 74238334 46136349 231560039 231560039 2701297 2054936 2414231 1830725 3131946 12133135 14711112 11035407 10687309 9482565 10272666 56189059 299882233 0.77220 0.76490 X SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: OTHER INCOME AS A PERCENTAGE OF REVENUES IS COMPRISED OF: ADVANCEMENT FEE AT 5.5%, SUPPORT FROM WASHINGTON STATE UNIVERSITY AT 7.8% AND MISCELLANEOUS INCOME AT 0.8%. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 440 0 0 0 440 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: FUNDS GIVEN TO WASHINGTON STATE UNIVERSITY FOR LOBBYING ACTIVITIES AIMED AT GARNISHING CONTINUED STATE SUPPORT AT LEVELS THAT WOULD ALLOW THE UNIVERSITY TO ACHIEVE ITS OBJECTIVE. 1 0 268806 -268806 0 1 X 281759973 16769446 27697306 15827844 310398881 286713591 10752446 -905678 14800384 281759973 240488543 15666683 46139108 15580743 286713591 223015063 13682136 19844572 16053228 240488543 285355432 15217814 -59612049 17946134 223015063 0.06000 0.94000 0 0 2363250 2363250 34868 15952 18916 375157 356597 18560 1069870 726349 343521 2744247 BENEFICIAL INT IN PERPETUAL TRUST 11252319 CONTRIBUTIONS RECV FROM TRUST 6218400 DUE FROM WASHINGTON STATE UNIVERSITY 2195908 TRUST ASSETS 30630319 50296946 REMAINDER INTEREST PAYABLE 12378335 ANNUITIES PAYABLE 1016270 13394605 X 83408090 20606183 -2613639 17992544 65415546 0 65415546 55562127 236 236 55561891 1070010 1070010 56631901 PART IV, LINE 2B: -DONATIONS RECEIVED ON BEHALF OF RUCKELSHAUS CENTER FOUNDATION - THESE ARE NOT RECOGNIZED ON THE FOUNDATION'S FINANCIAL STATEMENTS. - ASSETS HELD FOR OTHER ORGANIZATIONS - THESE CONSIST OF FUNDS THE FOUNDATION IS HOLDING FOR UNIVERSITY RELATED ENTITIES AND ACTIVITIES. THE FOUNDATION ESTABLISHES THESE PROJECT FUNDS AS A SERVICE TO THE UNIVERSITY AND ITS COMMUNITY. THE VARIOUS ORGANIZATIONS CAN REQUEST DISTRIBUTION OF THEIR FUNDS AT ANY TIME. - ASSETS HELD IN ENDOWMENTS FOR WASHINGTON STATE UNIVERSITY - THESE RESULT FROM COLLEGES AND DEPARTMENTS INVESTING EXPENDABLE GIFTS TOTALING $100,000 OR MORE WITHIN THE FOUNDATION'S CONSOLIDATED ENDOWMENT. THEY MAY WITHDRAW FUNDS IN FULL OR IN $50,000 INCREMENTS UPON SIX MONTHS NOTICE. THE ASSETS HELD FOR OTHERS AND WSU ARE REPORTED AS A LIABILITY. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE FUNDS, OR INCOME FROM THE FUNDS, ARE DISTRIBUTED TO THE UNIVERSITY IN KEEPING WITH THE MISSION OF THE FOUNDATION TO SUPPORT PROGRAMS SUCH AS UNDERGRADUATE SCHOLARSHIPS, GRADUATE FELLOWSHIPS, DISTINGUISHED PROFESSORSHIPS, CHAIRS, RESEARCH, LIBRARIES, OPERATIONAL SUPPORT AND FACILITIES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: MANAGEMENT EVALUATED THE FOUNDATION'S TAX POSITIONS AND CONCLUDED THAT THE FOUNDATION HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF FASB GUIDANCE ON THIS SUBJECT. WITH FEW EXCEPTIONS, THE FOUNDATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY TAX AUTHORITIES BEFORE 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: TRUST, SPLIT INTEREST AGREEMENTS AND COUGAR PROPERTY HOLDINGS -2,613,639. PART XII, LINE 2D - OTHER ADJUSTMENTS: COUGAR PROPERTY HOLDINGS (CPH) 236. EAST ASIA AND THE PACIFIC 0 0 FUNDRAISING ACTIVITIES N/A EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 FUNDRAISING ACTIVITIES N/A CENTRAL AMERICA AND THE CARIBBEAN 0 0 FUNDRAISING ACTIVITIES N/A NORTH AMERICA- CANADA AND MEXICO 0 0 FUNDRAISING ACTIVITIES N/A SUB-SAHARAN AFRICA 0 0 FUNDRAISING ACTIVITIES N/A SOUTH ASIA - AFGHANISTAN, BANGLADESH, 0 0 FUNDRAISING ACTIVITIES N/A EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 INVESTMENT INVESTMENT AT BOOK VALUE 15000000 0 0 0 0 0 0 15000000 0 15000000 SUB-SAHARAN AFRICA RESEARCH PROJECT FUNDING 184791 WIRE TRANSFER CASH VALUE SUB-SAHARAN AFRICA RABIES RESEARCH PROJECT FUNDING 100000 WIRE TRANSFER CASH VALUE 2 0 0 0 0 0 0 0 INVESTMENTS & EXPENDITURES PER REGION PART I, LINE 3F: THE DIVERSIFIED ENDOWMENT PORTFOLIO INCLUDES INVESTMENTS WITH A COMPANY LEGALLY DOMICILED IN THE UNITED KINGDOM. THE INVESTMENTS ARE RECORDED AT BOOK VALUE - $15,000,000 ADDITIONAL SUPPLEMENTAL INFORMATION PARTS 1 & II, LINE 1: THE FOUNDATION DID NOT MAKE ANY GRANTS TO ENTITIES OUTSIDE OF THE UNITED STATES. HOWEVER, SOME OF THE REVENUES GIVEN TO WASHINGTON STATE UNIVERSITY WERE USED TO FUND OVERSEAS PROJECTS. X X X X X 1 RUFFALOCODY PO BOX 3018 CEDAR RAPID IA 52406 SOLICITATION 0 1004218 468000 536218 MARTS & LUNDY INC 1200 W WALL ST LYNDHURST NJ 07071 ADVISORS 0 0 13320 -13320 1004218 481320 522898 AL AK AZ AR CA CO CT DE FL GA IL IN IA KS KY LA ME MD MA MI MS MO MT NE NV NH NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY ID MN NJ EXPLANATION OF FUNDRAISING PAYMENTS SCHEDULE G, PART I, LINE 2B, COLUMN (V) PER THE AGREEMENTS WITH THE FUNDRAISERS NOTED BELOW, THE FOUNDATION PAID BOTH FEES FOR SERVICES AND EXPENSES. THE PAYMENTS WERE MADE AFTER THE FOUNDATION SUBMITTED ITEMIZED INVOICES. THE EXPENSES FOR THE FISCAL YEAR WERE AS FOLLOWS: RUFFALOCODY: $468,000 MARTS & LUNDY: $13,320 1 WASHINGTON STATE UNIVERSITY NE WILSON ROAD PULLMAN WA 99164 916001108 43575901 2651349 COST, FMV, & APPRAISALS SEE PART IV FULLFILL MISSION OF THE FOUNDATION 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: DISTRIBUTIONS TO WSU ARE USED IN ACCORDANCE WITH THE CONTRACT OR GIFT USE AGREEMENT BETWEEN THE FOUNDATION AND THE DONOR. BOTH WSU AND THE FOUNDATION RETAIN A COPY OF THE CONTRACT. GIFTS THAT DO NOT REQUIRE A FORMAL CONTRACT WITH THE DONOR ARE DEPOSITED, BY THE FOUNDATION, TO THE WSU PROGRAM ACCOUNT SPECIFIED BY THE DONOR. THE FOUNDATION ACCESSES WSU'S ACCOUNTING SYSTEM TO PROCESS AND REVIEW DISTRIBUTIONS. X X X X X 0 0 0 0 0 0 0 0 0 HERMANSON MARK 155590 0 0 0 0 0 15675 0 9900 0 181165 0 0 0 CONNELL MICHAEL 137033 0 0 0 0 0 10673 0 9900 0 157606 0 0 0 HARVEY KEVIN 146746 0 0 0 0 0 9419 0 9100 0 165265 0 0 0 PICCIOTTO GIL 131418 0 0 0 0 0 10069 0 9900 0 151387 0 0 0 PART I, LINE 3 REFER TO SCHEDULE O, PART VI, LINE 15A COMPENSATION REVIEW K DUANE BRELSFORD BOARD MEMBER 279057 SEE PART V 0 PART IV, COLUMN D: DESCRIPTION OF TRANSACTION LEASE OF OFFICE SPACE X 36 113546 EXPERT OPINION X 13873 FMV X 18068 FMV X 1 1180 FMV X 71 1163861 FMV X 3 225750 FMV X 12 2135 EXPERT OPINION X 137 49275 COST X 1 545 FMV X 3 9271 EXPERT OPINION X ANIMAL & FEED 43 48806 SEE PART II X EQUIPMENT 13 287043 FMV X MISCELLANEOUS 219 217429 FMV X PROMISSORY NOTE 1 500567 FMV 0 1 1 THIRD PARTY USE: PART I, LINE 32B: NONCASH GIFTS, OTHER THAN STOCK, ARE GENERALLY GIVEN TO THE UNIVERSITY. STOCK GIFTS ARE SOLD BY BROKERAGE FIRMS AND THE PROCEEDS ARE FORWARDED TO THE FOUNDATION. METHOD OF DETERMINING REVENUES - LIVE ANIMALS: A MINIMAL VALUE OF $1.00 IS ASSIGNED TO ANIMALS WHO FAILED/DID NOT HAVE A MEDICAL EXAM AND THOSE OF ADVANCED AGE. THE FAIR MARKET VALUE IS USED FOR ALL OTHER ANIMALS. THE RELATED FEED IS VALUED AT COST. FORM 990, PART I, LINE 6: PART-TIME VOLUNTEER SERVICES ARE PROVIDED BY THE BOARD OF GOVERNORS AND MEMBERS OF THE FOLLOWING COMMITTEES: AUDIT, EXECUTIVE, INVESTMENT, GIFT ACCEPTANCE AND MANAGMENT, FINANCE, NOMINATING, ATHLETICS ADVISORY COUNCIL, CORPORATE & FOUNDATION RELATIONS, SCHOLARSHIPS, RECOGNITION, COUGAR PARENT ADVISORY BOARD, RECENT GRADUATE PRESIDENT'S COMMITTEE, COUGAR COLLEAGUES, AND PRESIDENT'S ASSOCIATE & ANNUAL GIVING. FORM 990, PART I, LINE 1, DESCRIPTION OF ORGANIZATION MISSION: THE MISSION OF THE FOUNDATION IS TO PROMOTE, ACCEPT, AND MAXIMIZE PRIVATE SUPPORT FOR PROGRAMS, INITIATIVES, AND PROPERTIES OF WASHINGTON STATE UNIVERSITY (WSU) AND ITS REGIONAL CAMPUSES. THE FOUNDATION ALSO PRUDENTLY MANAGES, INVESTS, AND STEWARDS THE ASSETS ENTRUSTED IT. FORM 990, PART I, LINE 5 AND FORM 990, PART V LINE 2B: WASHINGTON STATE UNIVERSITY PROCESSES THE PAYROLL AND FILES ALL PAYROLL RELATED RETURNS FOR THE FOUNDATION. FORM 990, PART VI, SECTION A, LINE 6 COMPOSITION: THE MEMBERS OF THE FOUNDATION ("MEMBERS") SHALL CONSIST OF INDIVIDUALS WHO ARE DESIGNATED AS MEMBERS BY THE RIGHT (I.E., WITHOUT THE NEED FOR FURTHER ACTION TO BE TAKEN) OR EX OFFICIO (I.E., BY VIRTUE OF OFFICE), AND THOSE INDIVIDUALS ELECTED TO THE BOARD OF TRUSTEES OF THE WSU FOUNDATION. THE BOARD OF TRUSTEES SHALL HAVE NO FIDUCIARY RESPONSIBILITY FOR THE GENERAL BUSINESS AND AFFAIRS OF THE FOUNDATION AND IS NOT THE GOVERNING BOARD. RIGHTS OF THE MEMBERS: TO AMEND, LATER MODIFY, REPEAL OR RESTATE THE ARTICLES OF INCORPORATION AND/OR BYLAWS OF THE WSU FOUNDATION; TO MODIFY THE BUSINESS STRUCTURE OF THE FOUNDATION; TO SELL, LEASE OR DISPOSE OF PROPERTY; TO DISSOLVE AND WIND-UP THE BUSINESS AND AFFAIRS OF THE WSU FOUNDATION; AND ELECT MEMBERS AND GOVERNORS OF THE FOUNDATION. MEMBER ELECTION FOR ADDITIONAL MEMBERS (PART VI, LINE 7A) AND GOVERNING BODY DECISIONS (PART VI, LINE 7B) REFER TO "RIGHTS OF THE MEMBERS" ABOVE. FORM 990, PART VI, SECTION A, LINE 7A MEMBER ELECTION FOR ADDITIONAL MEMBERS (PART VI, LINE 7A), REFER TO "RIGHTS OF THE MEMBERS" ABOVE. FORM 990, PART VI, SECTION A, LINE 7B GOVERNING BODY DECISIONS (PART VI, LINE 7B), REFER TO "RIGHTS OF THE MEMBERS" ABOVE. FORM 990, PART VI, SECTION B, LINE 11 REVIEW OF THE FORM 990 PRIOR TO SUBMISSION TO THE IRS - THE FORM 990, WITH ALL REQUIRED SCHEDULES, IS REVIEWED BY THE WSU FOUNDATION'S INDEPENDENT AUDIT COMMITTEE FOR PRESENTATION TO THE WSU FOUNDATION BOARD OF DIRECTORS, WHICH INCLUDES THE KEY OFFICERS OF THE CORPORATION. THE FORM 990 IS THEN REVIEWED AND ACCEPTED BY ALL VOTING MEMBERS OF THE BOARD IN ACCORDANCE WITH THE REVISED CODE OF WA SECTION 19.09.500 WHICH REQUIRES THE BOARD TO ENSURE THAT THE FINANCIAL INFORMATION INCLUDING ALL FILING TO THE SECRETARY OF STATE'S OFFICE REPRESENTS, IN ALL MATERIAL RESPECTS, THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF THE ORGANIZATION. THE FORM 990 WITH SCHEDULES IS SENT TO EACH BOARD MEMBER PRIOR TO THEIR ACCEPTANCE OF THE DOCUMENT. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, AFTER THE FALL MEETING OF THE FOUNDATION, THE BOARD OF DIRECTORS, ALL OFFICERS, AND ALL OTHER MEMBERS OF THE WSU FOUNDATION STANDING COMMITTEES ARE PROVIDED A COPY OF THE WSU FOUNDATION CONFLICTS OF INTEREST POLICY ALONG WITH A QUESTIONNAIRE AND CERTIFICATION STATEMENT. THE POLICY IS DESIGNED TO HELP FIDUCIARIES OF THE WSU FOUNDATION IDENTIFY SITUATIONS THAT PRESENT POTENTIAL CONFLICTS OF INTEREST AND TO EMPHASIZE THE IMPORTANCE OF ADHERING TO HIGH STANDARDS OF RESPONSIBILITY, ACCOUNTABILITY, AND PUBLIC SCRUTINY. THE POLICY CONTAINS AN ACTIVE LIST OF CURRENT AND ANTICIPATED VENDORS ENGAGED BY WSU FOUNDATION. IT DESCRIBES WHAT A CONFLICT OF INTEREST IS AND THE PROCESS NECESSARY IF ONE IS IDENTIFIED. UNDER THE POLICY, EACH BOARD MEMBER, OFFICER, AND STANDING COMMITTEE MEMBER MUST FILE THE ANNUAL CERTIFICATION STATEMENT, AT OR IMMEDIATELY FOLLOWING THE ANNUAL MEETING OF THE WSU FOUNDATION. THIS STATEMENT MUST SET FORTH ANY CONFLICTS OF INTEREST THAT MIGHT BE EXPECTED TO OCCUR WITHIN THE COMING YEAR. THE STATEMENT SHALL DISCLOSE AS FULLY AS POSSIBLE THE NATURE OF THE POTENTIAL CONFLICTS AND THE NATURE OF THE INDIVIDUALS' (OR THEIR FAMILY MEMBERS') INTEREST IN THE POTENTIAL TRANSACTIONS. ALL STATEMENTS THAT ANTICIPATE CONFLICTS OF INTEREST ARE THEN CIRCULATED TO THE FULL BOARD. IN THE INTERIM, IF ANY GOVERNOR OR COMMITTEE MEMBER OR MEMBER OF HIS/HER FAMILY HAS OR IS ABOUT TO ASSUME AN INTEREST OR OTHER RELATIONSHIP WHICH MIGHT RESULT IN A CONFLICT OF INTEREST, IT IS THE GOVERNOR'S OR COMMITTEE MEMBER'S RESPONSIBILITY TO IMMEDIATELY DISCLOSE ALL MATERIAL FACTS TO THE CHAIR OF THE BOARD OF GOVERNORS OR THE CHAIR OF THE AUDIT COMMITTEE, THIS CONFLICT OF INTEREST PROCESS IS MANAGED BY THE INTERNAL WSU FOUNDATION BOARD RELATIONS TEAM WHICH TRACKS AND MONITORS SUBMISSION OF THE ANNUAL CERTIFICATION STATEMENTS AND PROCESSES INSTANCES WHERE A CONFLICT IS IDENTIFIED. FORM 990, PART VI, SECTION B, LINE 15 BACKGROUND: THE WSU FOUNDATION UTILIZES AN INTERNAL COMPENSATION TASK FORCE TO SET, MONITOR, AND RECOMMEND INCREASES TO EMPLOYEE COMPENSATION. THE TASK FORCE'S ROLE IS TO CONDUCT COMPREHENSIVE RESEARCH ON CURRENT MARKET SALARIES FOR ALL DEVELOPMENT PERSONNEL BACK OFFICE TO FRONT LINE FUNDRAISING. THIS EFFORT IS COMPLEMENTARY TO THE EMPLOYEE EVALUATION SYSTEM WHICH IS DESIGNED TO TIE SALARY INCREASES TO CLEARLY ARTICULATED DEVELOPMENT PERFORMANCE BENCHMARKS AND TAKE INTO ACCOUNT BOTH MERIT AND MARKET SALARY. METHODOLOGY: DEVELOPMENT IS A DISTINCT CAREER FIELD AND THERE EXIST MANY SOURCES OF INFORMATION ON SALARY TRENDS, CURRENT SALARIES, AND HISTORICAL DATA. IN PARTICULAR, THE TASK FORCE RELIES ON THE FOLLOWING SOURCES: 1. COUNCIL FOR ADVANCEMENT AND SUPPORT OF EDUCATION (CASE) ADVANCEMENT COMPENSATION SURVEY 2. THE CHRONICLE OF PHILANTHROPY MEDIAN SALARIES OF COLLEGE FUND-RAISING OFFICIALS 3. ASSOCIATION OF FUNDRAISING PROFESSIONALS COMPENSATION & BENEFITS SURVEY 4. UNIVERSITY OF WASHINGTON OFFICE OF DEVELOPMENT AND ALUMNI RELATIONS COMPLETE, CURRENT SALARY DATA 5. PUBLISHED SALARY DATA FROM IRS FORM 990S FOR THE FOLLOWING INSTITUTIONS: A. TEXAS A&M FOUNDATION B. UNIVERSITY OF WISCONSIN FOUNDATION C. KANSAS STATE UNIVERSITY FOUNDATION D. UNIVERSITY OF GEORGIA FOUNDATION E. OKLAHOMA STATE UNIVERSITY FOUNDATION F. MISSISSIPPI STATE UNIVERSITY FOUNDATION G. IOWA STATE UNIVERSITY FOUNDATION H. COLORADO STATE UNIVERSITY FOUNDATION I. UNIVERSITY OF MINNESOTA FOUNDATION J. LOUISIANA STATE UNIVERSITY FOUNDATION THE TASK FORCE ALSO REVIEWS THE CURRENT DEVELOPMENT STRUCTURE AND DIVIDES DEVELOPMENT POSITIONS BASED ON THE FOLLOWING FACTORS: 1. SIZE OF THE COLLEGE/UNIT 2. FUNDRAISING GOALS 3. NUMBER OF DEVELOPMENT PERSONNEL ASSIGNED 4. NUMBER OF PROSPECTS & POTENTIAL FUNDRAISING GOALS 5. LEVEL OF MANAGEMENT RESPONSIBILITY 6. EXPERIENCE LEVELS, LENGTH OF SERVICE, SPECIAL EXPERIENCE OR TRAINING/CERTIFICATIONS, AND JOB RESPONSIBILITIES. UTILIZING THE ABOVE CRITERIA AND INFORMATION, THE WSU FOUNDATION COMPENSATION MATRIX IS UPDATED ANNUALLY. THE TASK FORCE OVERLAYS CURRENT SALARIES OF EMPLOYEES WITH THE MATRIX AND MAKES RECOMMENDATION FOR MARKET ADJUSTMENTS TO SALARIES AFTER DETERMINATION OF MERIT BASED INCREASES. THE COMPENSATION MATRIX IS USED IN THE HIRING OF NEW EMPLOYEES TO SET APPROPRIATE SALARIES. FORM 990, PART VI, SECTION C, LINE 19 THE FOUNDATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC THROUGH ITS WEBSITE - HTTP://WSUFOUNDATION.WSU.EDU/ AND BY REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: TRUST, SPLIT INTEREST AGREEMENT, & COUGAR PROPERTY HOLDINGS -2,614,492. FORM 990, PART XII, LINE 2C: THE OVERSIGHT PROCESS AND METHOD FOR SELECTING THE INDEPENDENT AUDITOR HAS NOT CHANGED FROM PRIOR YEARS. COUGAR PROPERTY HOLDINGS PO BOX 641927 PULLMAN WA 991631927 912031421 HOLDS AND MANAGES ASSETS WSU&FND WA 501 (C) (3) I N/A 0 RUCKELSHAUS CENTER 215 HULBERT HALL PULLMAN WA 991641962 204490085 COLLABORTIVE PROBLEM SOLVING WA 501 (C) (3) I N/A 0 CHARITABLE REMAINDER UNITRUST (54) TRUST WA T 0 CHARITABLE REMAINDER AT (6) TRUST WA T 0 CHARITABLE LEAD TRUST (2) TRUST WA T 0 CHARITABLE REMAINDER UT (1) TRUST FL T 0 CHARITABLE REMAINDER UT (2) TRUST OR T 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 1 RUCKELSHAUS CENTER R 268806 CASH CHARITABLE REMAINDER UNITRUST (2) S 280990 CASH