2012-05-15T12:08:06-05:00 2011-06-30 O'CONNOR DAVIES MUNNS & DOBBINS LLP 60 EAST 42ND STREET NEW YORK NY 101653698 990 2010-07-01 130417693 THE ADVERTISING COUNCIL INC ADVE 2129221500 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 JON FISH 2129221500 2012-05-15 1 GARRETT M HIGGINS 2122862600 2012-05-15 2010 2016-02-24 21:20:13Z JON FISH 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 49899818 0 X WWW.ADCOUNCIL.ORG X 1942 NY SEE SCHEDULE O 101 100 119 279 0 0 8784479 9415045 31038624 31389964 329006 -163107 -197380 -133440 39954729 40508462 0 0 0 0 11225669 12395122 27028 32000 1574239 25891216 24939425 37143913 37366547 2810816 3141915 27880172 31838838 14186138 13334204 13694034 18504634 X SEE SCHEDULE O 0 0 30818409 31389964 THE AD COUNCIL'S PUBLIC SERVICE CAMPAIGNS TARGETING THE AMERICAN PEOPLE ARE BEST DEFINED WITHIN FOUR MAJOR PROGRAM AREAS: 1. HEALTH; 2. SAFETY; 3. EDUCATION; AND 4. FAMILY & COMMUNITY.HEALTH ISSUES ARE SIGNIFICANT FOR ALL AMERICANS BECAUSE THEY PROMOTE INDIVIDUAL BEHAVIORS TO BENEFIT BOTH INDIVIDUAL HEALTH OUTCOMES AND THE GREATER HEALTH OF THE COMMUNITY. BECAUSE SO MANY LEADING ILLNESSES AND DISEASES ARE PROVEN TO BE PREVENTABLE BY A HANDFUL OF HEALTH BEHAVIORS, A PRIORITY IS TO UTILIZE COMMUNICATIONS TO EDUCATE THE PUBLIC AND ESTABLISH HEALTHY HABITS AS EARLY ON IN LIFE AS POSSIBLE. THE AD COUNCIL CURRENTLY PROMOTES HEALTHY BEHAVIORS AND BRINGS AWARENESS TO SERIOUS HEALTH ISSUES FACING OUR NATION, INCLUDING CHILDHOOD OBESITY, AUTISM, LEAD POISONING, AND CHILDHOOD ASTHMA. PUBLIC SERVICE MESSAGING ADDRESSING SAFETY ISSUES IS IMPERATIVE FOR ALL AMERICANS BECAUSE IT STRIVES TO KEEP THE PEOPLE OF OUR COUNTRY SAFE AND SECURE. COMMUNICATIONS CAN EFFECTIVELY ADDRESS THE POTENTIAL RISK IN THE THREE PLACES WHERE AMERICANS SPEND THE MOST TIME AT HOME, WORK OR SCHOOL AND THE HAZARDS POSED WHEN TRAVELING BETWEEN THEM. THE AREAS ADDRESSED BY THE AD COUNCIL IN THIS ARENA RUN THE GAMUT FROM INFORMING THE PUBLIC ON THE USE OF SAFETY EQUIPMENT, SUCH AS SAFETY BELTS AND BOOSTER SEATS, THE CONSEQUENCES OF IMPAIRED DRIVING TO EMERGENCY PREPAREDNESS, TEEN DATING ABUSE AND TEXTING WHILE DRIVING.FOR THE PURPOSE OF ITS PUBLIC SERVICE CAMPAIGNS, THE AD COUNCIL BROADLY DEFINES EDUCATION. BY BUILDING COMMUNICATIONS PROGRAMS AROUND KEY EDUCATION AREAS, AD COUNCIL INITIATIVES RAISE AWARENESS OF THE ISSUES IN ORDER TO STIMULATE DIALOGUE, IMPROVE ATTITUDES AND CHANGE BEHAVIOR. WITHIN THE PROGRAM SERVICE OF EDUCATION, THE AD COUNCIL'S PUBLIC SERVICE MESSAGING INCLUDES CRUCIAL CAMPAIGNS RANGING FROM EARLY CHILDHOOD DEVELOPMENT, HIGH SCHOOL DROPOUT PREVENTION ALL THE WAY THROUGH TO FINANCIAL LITERACY AND ADULT EDUCATION. THE AD COUNCIL'S LARGEST PROGRAM SERVICE IS FAMILY & COMMUNITY. OFTEN CONSIDERED THE FABRIC OF OUR SOCIETY, THE AD COUNCIL WORKS TO IMPROVE AND BUILD UPON THE FOUNDATION OF WHAT MAKES A FAMILY STRONG, INCLUDING ADOPTING FROM FOSTER CARE, FATHER INVOLVEMENT AND MAKING SURE NO CHILD GOES HUNGRY. AN EFFECTIVE COMMUNITY WORKS OVER THE LONG-TERM TO FOSTER, ACHIEVE AND SUSTAIN ECONOMIC, ENVIRONMENTAL, CIVIC AND SOCIAL WELL-BEING FOR ITS PEOPLE. AD COUNCIL PUBLIC SERVICE CAMPAIGNS ENCOMPASS KEY FACTORS AFFECTING THE COMMON AND SHARED WELL-BEING OF COMMUNITIES. THE AREAS ADDRESSING OUR COMMUNITY NEEDS INCLUDE: FORECLOSURE PREVENTION, CIVIL ENGAGEMENT AND PROTECTING OUR NATION'S NATURAL RESOURCES. 30818409 1 1 0 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 91 0 1 119 1 0 0 0 0 0 1 1 0 0 0 0 X 101 100 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 AL AK AZ AR CA CO CT FL GA IL KS KY ME MD MA MI MN MS MO NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X X KENNETH M KROLL SVP CONTROLLER 2129841946 815 SECOND AVENUE 9TH FLOOR NEW YORK NY 10017 PEGGY CONLON 35.00 X X 762886 0 199264 TIM ARMSTRONG 2.00 X X 0 0 0 BRIAN PERKINS 2.00 X X 0 0 0 ANDREW ROBERTSON 2.00 X X 0 0 0 MARC PRITCHARD 2.00 X X 0 0 0 NANCY HILL 2.00 X X 0 0 0 JAMES W BARGE 2.00 X X 0 0 0 BILL ABBOTT 1.00 X 0 0 0 MARK ADDICKS 1.00 X 0 0 0 A SALMAN AMIN 1.00 X 0 0 0 ADAM BAIN 1.00 X 0 0 0 MARK BAYNES 1.00 X 0 0 0 KATHLEEN BEHRENS 1.00 X 0 0 0 TOM BERNARDIN 1.00 X 0 0 0 JONATHAN BLUM 1.00 X 0 0 0 GEORGE BODENHEIMER 1.00 X 0 0 0 NICK BRIEN 1.00 X 0 0 0 LEE BROWN 1.00 X 0 0 0 CHUCK BRYMER 1.00 X 0 0 0 CHRISTA CARONE 1.00 X 0 0 0 THOMAS CARROLL 1.00 X 0 0 0 DAVID CHRISTOPHER 1.00 X 0 0 0 MICHAEL CLINTON 1.00 X 0 0 0 LISA COCHRANE 1.00 X 0 0 0 DEBORAH CONRAD 1.00 X 0 0 0 LAURA CORB 1.00 X 0 0 0 SEAN CUNNINGHAM 1.00 X 0 0 0 JAMES EDMUND DATRI 1.00 X 0 0 0 MAINARDO DE NARDIS 1.00 X 0 0 0 LAURA DESMOND 1.00 X 0 0 0 LISA DOLLINGER 1.00 X 0 0 0 HOWARD DRAFT 1.00 X 0 0 0 DAVID EASTMAN 1.00 X 0 0 0 RICHARD EDELMAN 1.00 X 0 0 0 RICH EIGENDORFF 1.00 X 0 0 0 GARY ELLIOT 1.00 X 0 0 0 ANDREW ENGLAND 1.00 X 0 0 0 JEFFREY FARIN 1.00 X 0 0 0 DAVID FIELD 1.00 X 0 0 0 ANNE FINUCANE 1.00 X 0 0 0 DAVID FISCHER 1.00 X 0 0 0 NANCY FLETCHER 1.00 X 0 0 0 MARIA LUISA FRANCOLI 1.00 X 0 0 0 ALFREDO GANGOTENA 1.00 X 0 0 0 MARK GIBSON 1.00 X 0 0 0 NEIL GOLDEN 1.00 X 0 0 0 BOB GREENBERG 1.00 X 0 0 0 JACK HABER 1.00 X 0 0 0 BILL HAGELSTEIN 1.00 X 0 0 0 JEFF HALEY 1.00 X 0 0 0 BONNIE HAMMER 1.00 X 0 0 0 BRIAN HANSBERRY 1.00 X 0 0 0 DAVID HASLINGDEN 1.00 X 0 0 0 JAMES HEEKIN 1.00 X 0 0 0 SCOTT HERMAN 1.00 X 0 0 0 DAVID HUNKE 1.00 X 0 0 0 JOHN INGERSOLL 1.00 X 0 0 0 DAVID JONES 1.00 X 0 0 0 MICHAEL KELLY 1.00 X 0 0 0 DEBRA KING 1.00 X 0 0 0 LAURA KLAUBERG 1.00 X 0 0 0 PETER KRIVKOVICH 1.00 X 0 0 0 STEPHEN LACY 1.00 X 0 0 0 STEVE LANZANO 1.00 X 0 0 0 DEBRA LEE 1.00 X 0 0 0 DAVID LEVY 1.00 X 0 0 0 ANN LEWNES 1.00 X 0 0 0 MAUREEN LINDER 1.00 X 0 0 0 NINA LINK 1.00 X 0 0 0 ROBERT LIODICE 1.00 X 0 0 0 ANTONIO LUCIO 1.00 X 0 0 0 BILL LUDWIG 1.00 X 0 0 0 ALAN MARKS 1.00 X 0 0 0 ROB MASTER 1.00 X 0 0 0 PETER MCDONOUGH 1.00 X 0 0 0 CHARLOTTE MCKINES 1.00 X 0 0 0 HAMISH MCLENNAN 1.00 X 0 0 0 KYLE MCSLARROW 1.00 X 0 0 0 MICHAEL MENDENHALL 1.00 X 0 0 0 CHRISTOPHER MOLONEY 1.00 X 0 0 0 NIGEL MORRIS 1.00 X 0 0 0 STEPHEN MOSKO 1.00 X 0 0 0 MIKE MURPHY 1.00 X 0 0 0 ERIN NELSON 1.00 X 0 0 0 ROB NORMAN 1.00 X 0 0 0 BILL OGLE 1.00 X 0 0 0 ANTHONY PALMER 1.00 X 0 0 0 WILLIAM PEARCE 1.00 X 0 0 0 STEVE PHELPS 1.00 X 0 0 0 STEPHEN QUINN 1.00 X 0 0 0 KAREN QUINTOS 1.00 X 0 0 0 SCOTT REMY 1.00 X 0 0 0 SYLVIA REYNOLDS 1.00 X 0 0 0 DESIREE ROGERS 1.00 X 0 0 0 MICHAEL I ROTH 1.00 X 0 0 0 RANDALL ROTHENBERG 1.00 X 0 0 0 JOHN SEIFERT 1.00 X 0 0 0 GORDON H SMITH 1.00 X 0 0 0 MOLLIE SPILMAN 1.00 X 0 0 0 JOHN STRATTON 1.00 X 0 0 0 BENJAMIN STUART 1.00 X 0 0 0 JOHN STURM 1.00 X 0 0 0 KRISTIN SUPPELSA 1.00 X 0 0 0 CHARLES THURSTON 1.00 X 0 0 0 KIMBERLY TILL 1.00 X 0 0 0 JOSEPH V TRIPODI 1.00 X 0 0 0 JEFFREY TUCKER 1.00 X 0 0 0 JOE UVA 1.00 X 0 0 0 MANNY VIDAL 1.00 X 0 0 0 ANTHONY VINCIQUERRA 1.00 X 0 0 0 CAROLE WALKER 1.00 X 0 0 0 BRIAN WALLACE 1.00 X 0 0 0 MARK WALLER 1.00 X 0 0 0 CONNIE WEAVER 1.00 X 0 0 0 RICHARD WERGAN 1.00 X 0 0 0 MARY BETH WEST 1.00 X 0 0 0 SUSAN WHITING 1.00 X 0 0 0 MICHELLE WILSON 1.00 X 0 0 0 BILL WISE 1.00 X 0 0 0 DENNIS WOODSIDE 1.00 X 0 0 0 MARK YOUNG 1.00 X 0 0 0 DAVID ZASLAV 1.00 X 0 0 0 PETER ZILLIG 1.00 X 0 0 0 JONATHAN FISH 35.00 X 311149 0 105416 BARBARA LESHINKSY 35.00 X 311352 0 116579 PRISCILLA NATKINS 35.00 X 311947 0 109510 PAULA VEALE 35.00 X 275159 0 86055 HEIDI ARTHUR 35.00 X 206164 0 15317 KATHLEEN CROSBY 35.00 X 190111 0 22018 KENNETH KROLL 35.00 X 174340 0 23764 JENNIFER MAMLET 35.00 X 173276 0 36205 REGINA BRADLEY 35.00 X 152522 0 29023 BARBARA SHIMAITIS 35.00 X 166980 0 31968 DANIELLE LINET 35.00 X 152816 0 26301 JAMES BAUMANN 35.00 X 133264 0 40141 KATE EMANUEL 35.00 X 148978 0 28740 ANTHONY FOLENO 35.00 X 146212 0 19163 3617156 0 889464 22 0 1 0 CIRCLE GRAPHICS LLC 120 9TH AVENUE LONGMONT CO 80501 DIGITAL PRINTING - BILLBOARD 2364276 CUTWATER ADVERTISING INC 55 UNION STREET SAN FRANSISCO CA 94111 AD AGENCY PRODUCTION SERVICES 801530 TURBINE BOOST INC 175 RENELL DRIVE SOUTHPORT CT 06890 AD AGENCY PRODUCTION SERVICES 738869 HOME FRONT COMMUNICATIONS 1121 14TH STREET NW 5TH FLOOR WASHINGTON DC 20005 BROADCAST TV RADIO MEDIA TOURS 730042 PUBLICIS 13935 COLLECTIONS CTR DR CHICAGO IL 60693 AD AGENCY PRODUCTION SERVICES 594258 56 2964983 6450062 9415045 PUBLIC SERVICE CAMPAIG 900099 31387464 31387464 OTHER PROGRAM FEES 900099 2500 2500 31389964 305133 305133 8524676 8992916 -468240 -468240 -468240 265000 2964983 398440 -133440 -133440 40508462 31389964 0 -296547 3610602 995474 1653538 961590 6914165 6007714 540681 365770 518814 338530 170715 9569 770765 558397 195913 16455 580776 399589 139111 42076 119566 119566 167367 167367 32000 32000 30000 30000 69348 1900 67448 1942 144 1798 230461 50570 176538 3353 762002 150230 611772 1234004 942965 232831 58208 233357 149079 52970 31308 93027 57055 17598 18374 34296 34296 595826 595826 54554 54554 PRODUCTION AND DISTRIBU 20823699 20823699 CAMPAIGN OUTREACH 165342 165342 TEMP HELP 165330 80163 50489 34678 OTHER EXPENSES 159304 97558 60888 858 37366547 30818409 4973899 1574239 1000 1000 3838612 4522388 1584275 1655600 9170359 10705028 258947 620755 6582985 3706344 3302434 2876641 9724545 11457426 27880172 31838838 5080952 6346993 2902341 1408935 1100000 5102845 5578276 14186138 13334204 X 12311484 16828655 1382550 1675979 13694034 18504634 27880172 31838838 X 3141915 1668685 X X 0 1 1 X 1 1 X 7458536 8366799 7388042 8784479 9415045 41412901 30796779 26658564 33620431 31269874 31654964 154000612 38255315 35025363 41008473 40054353 41070009 195413513 131365 110550 116350 132007 93300 583572 16079410 11706388 14841288 12262580 14390436 69280102 16210775 11816938 14957638 12394587 14483736 69863674 125549839 814867 994577 440774 292954 305133 2848305 814867 994577 440774 292954 305133 2848305 28241 28241 39070182 36048181 41449247 40347307 41375142 198290059 0.63320 0.62440 0.01440 0.01520 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME - $28,241 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3276492 885628 2390864 2056264 1867362 188902 1250229 953354 296875 2876641 DEPOSITS FROM CAMPAIGN SPONSORS 805831 ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION 284005 DEFERRED COMPENSATION AND SERP 2723436 DEFERRED RENTAL OBLIGATIONS 1765004 5578276 40508462 37366547 3141915 1643740 24945 1668685 4810600 42867642 1643740 316593 398847 2359180 40508462 0 40508462 38081987 316593 398847 715440 37366547 0 37366547 PART XI, LINE 8 - OTHER ADJUSTMENTS: ACTUARIAL CHANGE IN POST RETIREMENT OBLIGATIONS - $24,945 PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES OF SPECIAL EVENTS REPORTED ON PART VIII, LINE 8B - $398,440 STATE REFUND NETTED AGAINST REVENUE ON AUDITED FINANCAL STATEMENTS - $407 PART XIII, LINE 2D - OTHER ADJUSTMENTS: DIRECT EXPENSES OF SPECIAL EVENTS REPORTED ON PART VIII, LINE 8B - $398,440 STATE REFUND NETTED AGAINST REVENUE ON AUDITED FINANCAL STATEMENTS - $407 X X X X X 1 PATRICE CLAREMAN 45 BERMUDA RD WESTPORT CT 06880 SOLICITATION AND ADM SUPPORT FOR ANNUAL DINNER 0 3229983 32000 3197983 3229983 32000 3197983 AL AK AZ AR CA CO CT FL GA IL KS KY ME MD MA MI MN MS MO NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI ANNUAL DINNER 3229983 2964983 265000 281045 117395 3229983 2964983 265000 281045 117395 398440 -133440 X X 1 1 X X X X X X 0 1 0 0 0 0 0 0 0 PEGGY CONLON 518652 0 166225 0 78009 0 182150 0 17114 0 962150 0 0 0 JONATHAN FISH 247647 0 58350 0 5152 0 84150 0 21266 0 416565 0 0 0 BARBARA LESHINKSY 256477 0 48680 0 6195 0 85150 0 31429 0 427931 0 0 0 PRISCILLA NATKINS 239032 0 67690 0 5225 0 76150 0 33360 0 421457 0 0 0 PAULA VEALE 215937 0 58350 0 872 0 58650 0 27405 0 361214 0 0 0 HEIDI ARTHUR 160748 0 45416 0 0 0 15000 0 317 0 221481 0 0 0 KATHLEEN CROSBY 144695 0 45416 0 0 0 0 0 22018 0 212129 0 0 0 KENNETH KROLL 150000 0 24340 0 0 0 12930 0 10834 0 198104 0 0 0 JENNIFER MAMLET 144276 0 29000 0 0 0 12867 0 23338 0 209481 0 0 0 REGINA BRADLEY 127522 0 25000 0 0 0 12145 0 16878 0 181545 0 0 0 BARBARA SHIMAITIS 133262 0 33718 0 0 0 12746 0 19222 0 198948 0 0 0 DANIELLE LINET 118971 0 33845 0 0 0 11512 0 14789 0 179117 0 0 0 JAMES BAUMANN 113264 0 20000 0 0 0 10452 0 29689 0 173405 0 0 0 KATE EMANUEL 125978 0 23000 0 0 0 11072 0 17668 0 177718 0 0 0 ANTHONY FOLENO 121212 0 25000 0 0 0 10743 0 8420 0 165375 0 0 0 PART I, LINE 1A PER THE EMPLOYMENT CONTRACT FOR THE PRESIDENT & CEO, THE LONG TERM CARE POLICY & ANNUAL CLUB DUES ARE PAID IN FULL BY THE ORGANIZATION AND "GROSSED UP" AS TAXABLE INCOME WITHIN EACH CALENDAR YEAR. THESE AMOUNTS TOTALING $78,009 ARE INCLUDED IN SCHEDULE J PART II COLUMN B(III). PART I, LINE 4B PART I, LINE 4B: THE ADVERTISING COUNCIL, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") IS SPONSORED BY THE ADVERTISING COUNCIL, INC., A TAX-EXEMPT ENTITY UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"). THE PURPOSE OF THE PLAN IS TO OFFER ELIGIBLE EMPLOYEES OF THE EMPLOYER DEFERRED COMPENSATION BENEFITS UNDER CODE SECTION 457(F) TO SUPPLEMENT SUCH EMPLOYEES' RETIREMENT BENEFITS. THE PLAN IS INTENDED TO BE A TOP-HAT PLAN (I.E., AN UNFUNDED DEFERRED COMPENSATION PLAN MAINTAINED FOR CERTAIN MEMBERS OF A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES) PURSUANT TO SECTIONS 201(2), 301(A)(3) AND 401(A)(1) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"). DURING THE TAX YEAR, THE FOLLOWING OFFICERS AND KEY EMPLOYEES PARTICIPATED IN THE SERP PLAN AND RECEIVED CONTRIBUTIONS TOWARDS THEIR PLAN: PEGGY CONLON - $165,000 BARBARA LESHINSKY - $68,000 PRISCILLA NATKINS - $59,000 PAULA VEALE - $41,500 JON FISH - $67,000 THE NIELSEN COMPANY BOARD MEMBER SUSAN WHITING IS AN OFFICER OF THE NIELSEN COMPANY 294935 NIELSEN PROVIDES STANDARD AD MONITORING SERVICES. 0 NEW MEDIA STRATEGIES BOARD MEMBER STEPHEN LACY IS PRES. & CEO OF THE MERIDITH CORP. 393480 MERIDITH CORP. OWNS NEW MEDIA STRATEGIES. NEW MEDIA STRATEGIES PROVIDES SOCIAL MEDIA MARKETING AND MEASUREMENT. 0 ORGANIZATION MISSION STATEMENT FORM 990, PART I, LINE 1 DURING THE COURSE OF THE YEAR, THE AD COUNCIL CONDUCTED OVER 50 NATIONAL MULTIMEDIA PUBLIC SERVICE CAMPAIGNS ON BEHALF OF BOTH NON-PROFIT ORGANIZATIONS AND GOVERNMENT AGENCIES ADDRESSING ISSUE AREAS SUCH AS IMPROVING THE QUALITY OF LIFE FOR CHILDREN, PREVENTIVE HEALTH, EDUCATION, COMMUNITY WELL-BEING, ENVIRONMENTAL PRESERVATION AND STRENGTHENING FAMILIES. ORGANIZATION MISSION STATEMENT FORM 990, PART III, LINE 1 THE ADVERTISING COUNCIL'S MISSION IS TO IDENTIFY A SELECT NUMBER OF SIGNIFICANT PUBLIC ISSUES AND STIMULATE ACTION ON THOSE ISSUES THROUGH COMMUNICATIONS PROGRAMS THAT MAKE A MEASURABLE DIFFERENCE IN OUR SOCIETY. TO THAT END, THE AD COUNCIL MARSHALS VOLUNTEER TALENT FROM THE ADVERTISING AND COMMUNICATIONS INDUSTRIES, THE FACILITIES OF THE MEDIA, AND THE RESOURCES OF THE BUSINESS AND NON-PROFIT COMMUNITIES TO CREATE AWARENESS, FOSTER UNDERSTANDING AND MOTIVATE ACTION. FORM 990, PART VI, SECTION B, LINE 11 I) A COPY WAS PROVIDED TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS; II) THE 990 WAS PROVIDED ELECTRONICALLY; III) THE AD COUNCIL HAS ITS FORM 990 PREPARED BY AN OUTSIDE ACCOUNTING FIRM AND HAS ESTABLISHED THE FOLLOWING REVIEW PROCESS TO ENSURE THE INFORMATION PROVIDED IS COMPREHENSIVE AND TRUTHFUL. THROUGHOUT THE COURSE OF THE YEAR, THE FORM 990 WAS ADDRESSED DURING AUDIT COMMITTEE MEETINGS AND THERE WERE SEVERAL OPPORTUNITIES FOR DISCUSSION AND COMMENT. THEN, ONCE A FINAL DRAFT OF THE FORM 990 IS COMPLETED, REVIEWED BY MANAGEMENT, AND READY FOR FILING, IT IS PROVIDED IN ITS ENTIRETY TO THE AUDIT COMMITTEE MEMBERS IN ELECTRONIC FORM PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL BOARD MEMBERS, EMPLOYEES AND VOLUNTEERS RECEIVE THE CODE OF CONDUCT AND CONFLICT OF INTEREST POLICY AND ARE REQUIRED TO SIGN THE POLICY. A LOG IS MAINTAINED BOTH WITHIN THE DEVELOPMENT DEPARTMENT (FOR BOARD MEMBERS/VOLUNTEERS) AND WITHIN THE HR DEPARTMENT (FOR EMPLOYEES). AD COUNCIL REQUIRES THAT ANY MEMBER REPORT IN WRITING ANY CONFLICT OF INTEREST THAT ARISES IN THE FOLLOWING MANNER: (1) MEMBERS OF THE BOARD OF DIRECTORS SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE CHAIRMAN OF THE BOARD; (2) EMPLOYEES SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE SENIOR VICE PRESIDENT, DIRECTOR OF HUMAN RESOURCES; AND (3) VOLUNTEERS SHALL DISCLOSE ANY CONFLICT OF INTEREST TO THE AD COUNCIL'S CEO OR CFO. THE EXISTENCE OF A POTENTIAL CONFLICT OF INTEREST DOES NOT NECESSARILY CONSTITUTE A VIOLATION OF THE CONFLICT OF INTEREST POLICY. THE POLICY REQUIRES DISCLOSURE AND REVIEW OF POTENTIAL CONFLICTS AND PROHIBITION OF ACTUAL CONFLICTS OF INTEREST. IN SOME CASES, DISCLOSURE MAY BE ALL THAT IS REQUIRED. IN OTHER CASES, THE SITUATION MAY REQUIRE ADDITIONAL ACTION TO AVOID AN ACTUAL CONFLICT OF INTEREST OR TO REMEDY ONE. WHERE A CONFLICT OF INTEREST ARISES, AN INTERESTED COVERED PARTY SHALL ABSTAIN FROM DELIBERATIONS AND REFRAIN FROM PARTICIPATING IN ANY DECISIONS OR VOTING IN CONNECTION WITH THE MATTER. THE CODE OF CONDUCT AND CONFLICT OF INTEREST POLICY IS REVIEWED ANNUALLY. THE POLICY WAS LAST UPDATED DECEMBER 2007. FORM 990, PART VI, SECTION B, LINE 15 APPROXIMATELY EVERY TWO TO FOUR YEARS, THE AD COUNCIL HIRES AN INDEPENDENT CONSULTING FIRM TO CONDUCT A COMPREHENSIVE COMPENSATION STUDY. THE STUDY IS CONDUCTED TO ASSESS THE EXTERNAL COMPETITIVENESS OF THE AD COUNCIL'S CURRENT TOTAL PAY, DEVELOP COMPARABLE MARKET BASE SALARY AND TOTAL PAY SUMMARY STATISTICS AND AUDIT & RECOMMEND CHANGES TO THE AD COUNCIL'S EMPLOYEE INCENTIVE PLAN. THE MOST RECENT STUDY WAS PERFORMED IN JUNE 2010. THE INFORMATION GATHERED FROM THESE STUDIES IS USED TO HELP INFORM THE DECISION MAKING PROCESS OF THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS COMPRISED OF THE CHAIRMAN OF THE BOARD, THE TWO VICE CHAIRS AND THE HEAD OF THE FINANCE COMMITTEE. THE COMMITTEE MEETS AT LEAST ANNUALLY TO REVIEW AND ESTABLISH THE TOTAL COMPENSATION PACKAGE (BASE SALARY AND INCENTIVE GOALS) FOR THE PRESIDENT & CEO AND EXECUTIVE VICE PRESIDENTS. THE COMMITTEE ALSO REVIEWS AND APPROVES THE TOTAL INCENTIVE PAYOUT FOR THE ENTIRE ORGANIZATION. THIS ENTIRE PROCESS IS CONTEMPORANEOUSLY DOCUMENTED IN MEETING MINUTES. FISCAL YEAR 2011 COMPENSATION REVIEW WAS PERFORMED ON OCTOBER 6, 2010. FISCAL YEAR 2012 COMPENSATION REVIEW WAS PERFORMED ON SEPTEMBER 8, 2011. OTHER KEY EMPLOYEES ARE ADDRESSED IN THE COMPENSATION STUDY AND THIS COMPARATIVE DATA IS USED AS A PART OF THE PROCESS WHERE THE CEO, CFO, HR AND DEPARTMENT HEAD REVIEW AND APPROVE THE COMPENSATION PACKAGE FOR EACH EMPLOYEE ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS (BY-LAWS) AND/OR CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. THE FINANCIAL STATEMENTS CAN BE FOUND ON THE AD COUNCIL'S WEBSITE WWW.ADCOUNCIL.ORG. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,643,740. ACTUARIAL CHANGE IN POST RETIREMENT OBLIGATIONS: $24,945 OVERSIGHT OF INDEPENDENT AUDIT FORM 990, PART XI, LINE 2C: THE ADVERTISING COUNCIL, INC. HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS AND FOR THE SELECTION OF THE INDEPENDENT AUDITORS. THIS PROCESS HAS NOT CHANGED FORM THE PRIOR YEAR. BREAKDOWN OF VOLUNTEERS FORM 990, PART I, LINE 6: BOARD = 122 CHAIR EMERITUS & HONORARY MEMBERS = 44 CRC COMMITTEE = 45 ADVISORY COMMITTEE = 39 FINANCE COMMITTEE = 5 RESEARCH COMMITTEE = 24 TOTAL = 279 EXPLANATION OF FUNDRAISING EVENTS LOSS: FORM 990, PART VIII, LINE 8C AND FORM 990, SCHEDULE G, PART II, LINE 11: EACH NOVEMBER THE AD COUNCIL HOLDS THE PUBLIC SERVICE AWARD DINNER. CONTRIBUTIONS FROM THIS EVENT ARE REPORTED ON PART VIII, LINE 1C OF THE FORM 990 AS $2,964,983. AS MANY EVENT ATTENDEES PAY MORE THAN THE RETAIL VALUE OF THE ACTUAL DINNER AN OVERALL GAIN OF $2,831,543 IS REALIZED VS. THE EVENT LOSS OF $133,440 AS REPORTED ON SCHEDULE G PART II. FORM 990, PART IV, LINE 28B AND FORM 990, PART VI, LINE 2: THE AD COUNCIL IS UNAWARE OF ANY FAMILY MEMBER WHO HAD A DIRECT OR INDIRECT BUSINESS RELATIONSHIP WITH THE ORGANIZATION. THIS RESPONSE IS BASED ON BOTH THE AD COUNCIL'S CONFLICT OF INTEREST POLICY AND RELATED DISCLOSURE REQUIREMENTS, AS WELL AS INTERNAL KNOWLEDGE OF CURRENT AD COUNCIL PRACTICES. FORM 990, PART IV, LINE 28C AND FORM 990, PART VI, LINE 2: THE ADVERTISING COUNCIL'S ("AD COUNCIL") BUSINESS MODEL INCLUDES THE SERVICES OF A PRO BONO ADVERTISING AGENCY FOR EACH OF THE PUBLIC SERVICE ANNOUNCEMENT CAMPAIGNS ("CAMPAIGNS") THAT THE AD COUNCIL CREATES AND DISTRIBUTES FOR ITS GOVERNMENT AND NON-PROFIT CLIENTS. AMONGST THESE VOLUNTEER AD AGENCIES INCLUDE SEVERAL AGENCIES THAT HAVE OFFICERS WHO ALSO SIT ON THE AD COUNCIL BOARD. THE PRO BONO ADVERTISING AGENCIES ARE APPROVED BY THE CLIENT PRIOR TO THEIR SELECTION. THESE AGENCIES DONATE THEIR LABOR TO THE CAMPAIGN; WITH THE EXCEPTION OF CERTAIN PRE-AUTHORIZED SPECIALIZED TASKS WHICH ARE OFFERED AT SIGNIFICANTLY DISCOUNTED RATES. THE AD COUNCIL AND ITS CLIENTS PAY FOR PRE-APPROVED OUT OF POCKET COSTS INCURRED IN THE COURSE OF PERFORMANCE FOR THESE SPECIFIC CAMPAIGNS. THESE REIMBURSED COSTS INCLUDE PHYSICAL PRODUCTION, TRAVEL, THIRD PARTY RESEARCH, TELEPHONE, POSTAGE AND CERTAIN OTHER COSTS OF CREATING, PRODUCING, AND DISTRIBUTING THESE CAMPAIGNS. ADDITIONALLY, THE AD COUNCIL UTILIZES THE SERVICES OF SPECIALIZED VENDORS FOR THE CAMPAIGNS WHO OFTEN PROVIDE DISCOUNTED AND NONPROFIT RATES TO THE AD COUNCIL. AMONGST THESE SPECIALIZED VENDORS INCLUDE SEVERAL BUSINESSES THAT HAVE OFFICERS WHO ALSO SIT ON THE AD COUNCIL BOARD. THE AD COUNCIL ALSO HAS SEVERAL REGIONAL EMPLOYEES WHO WORK OUT OF DONATED OFFICE SPACE FROM COMPANIES THAT HAVE OFFICERS WHO SIT ON THE AD COUNCIL BOARD. THESE COSTS ARE ACCOUNTED FOR AS DONATED USE OF FACILITIES.