2012-08-14T12:29:30-05:00 2011-12-31 410746749 CLIFTONLARSONALLEN LLP 770 LAKE COOK ROAD SUITE 350 DEERFIELD IL 60015 990 2011-01-01 651229309 FRIENDS OF THE ORPHANS FRIE 3123867499 134 N LASALLE STREET NO 500 CHICAGO IL 60602 JOHN IBERLE 3123867499 2012-08-14 1 XIAOYAN LUO CPA P01305207 8475971800 2011 2016-02-24 21:20:13Z JOHN IBERLE 134 N LASALLE STREET NO 500 CHICAGO IL 60602 14780886 0 X FRIENDSOFTHEORPHANS.ORG X 2004 IL WE ARE DEDICATED TO TRANSFORMING THE LIVES OF ORPHANED, ABANDONED AND DISADVANTAGED CHILDREN. 13 11 48 950 0 0 25686435 14497177 0 0 202578 23599 0 10722 25889013 14531498 22247347 11497444 0 0 2311651 2391709 51326 0 1988667 1114856 1475929 25725180 15365082 163833 -833584 6843056 5792250 940847 352439 5902209 5439811 SEE SCHEDULE O 0 0 12070766 11497444 0 FRIENDS OF THE ORPHANS IS DEDICATED TO THE MISSION OF RAISING AND TRANSFORMING THE LIVES OF ORPHANED, ABANDONED AND DISADVANTAGED CHILDREN IN NINE LATIN AMERICA AND CARIBBEAN COUNTRIES THROUGH SUPPORT OF NUESTROS PEQUENOS HERMANOS AND INCREASING PUBLIC AWARENESS OF THEIR PLIGHT. 12070766 1 1 0 0 0 0 0 0 0 1 1 0 1 1 0 1 1 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 24 0 48 1 0 0 0 0 0 1 1 0 0 0 0 X 13 11 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AK AL AZ AR CA CO CT DC FL GA HI IL KS KY ME MD MA MI MN MS NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI DE LA X X X TODD SCHULTZ 3123867499 134 N LASALLE STREET 500 CHICAGO IL 606021036 DR RICHARD PRENDERGRAST 10.00 X X 0 0 0 BRIAN BLUE 5.00 X X 0 0 0 M CHARLES SWOPE 5.00 X X 0 0 0 BOB CASTENEDA 5.00 X X 0 0 0 MICHAEL GIBBS 5.00 X 0 0 0 PATRICIA BUCKLEY 5.00 X 0 0 0 JOHN CLEVELAND 5.00 X 0 0 0 ALEX DANIELS 5.00 X 0 0 0 JOHN DEINHART 5.00 X 0 0 0 MAX MACCOBY 5.00 X 0 0 0 LARRY KREMA 5.00 X 0 0 0 BRENDAN SULLIVAN 5.00 X 0 0 0 DONNA EGGE 5.00 X 0 0 0 MIGUEL VENEGAS 5.00 X 0 0 0 JOHN IBERLE 40.00 X 35000 0 0 TODD SCHULTZ 40.00 X 40870 0 0 SHARON SAXELBY 40.00 X 187284 0 0 CAROL HIOKI 40.00 X 9049 0 0 JENNIFER RAYNO 40.00 X 114595 0 5000 386798 0 5000 2 0 1 0 0 1274040 13223137 5736770 14497177 23599 23599 249388 1274040 249388 0 MISCELLANEOUS INCOME 561000 10722 10722 10722 14531498 0 0 34321 11497444 11497444 391799 61566 95411 234822 1666581 259005 409390 998186 14471 2254 3549 8668 147684 23000 36219 88465 171174 26659 41979 102536 14306 14306 10147 10147 6674 6674 140223 27204 39037 73982 3469 3469 169244 81621 87623 219341 62358 41315 115668 146490 111276 8559 26655 41513 14747 26766 34254 34254 21689 21689 BAD DEBT EXPENSE 363545 363545 PROGRAM EDUCATION & MAR 91083 4945 86138 BANK AND CREDIT CARD FE 75995 70 75925 LICENSES AND FEES 64922 64922 73034 13270 59764 15365082 12070766 1305649 1988667 1097399 824393 1013257 1390787 1130046 403682 27408 1916 4400 500 65943 83465 359728 305574 60615 54154 2538063 445225 809835 65292 30798 2588128 6843056 5792250 308600 352439 632247 0 940847 352439 X 2061225 2035419 1378181 886899 2462803 2517493 5902209 5439811 6843056 5792250 X -833584 371186 X 0 1 1 X 0 X 8996396 9745945 18648899 25686435 14497177 77574852 8996396 9745945 18648899 25686435 14497177 77574852 294812 77280040 298441 245297 130504 147158 23599 844999 10722 10722 78430573 0.98530 0.98570 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2710938 -193445 2715493 2462764 39 -248135 2710938 2437764 25000 2462764 2982313 -523215 21334 2437764 0.00000 1.00000 0.00000 1 0 359728 305574 54154 54154 OTHER CURRENT ASSETS 33135 BENEFICIAL INTEREST IN PERPETUAL TRUST 2517493 BENEFICIAL INTEREST IN LAND TRUST 37500 2588128 14531498 15365082 -833584 4087 560544 -193445 371186 -462398 14359753 4087 17613 -193445 -171745 14531498 0 14531498 15382695 17613 17613 15365082 0 15365082 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ARIZONA IRREVOCABLE ENDOWMENT TRUST FUND WAS ESTABLISHED TO GENERATE INCOME FOR THE BENEFIT OF THE NUESTROS PEQUENOS HERMANOS (NPH) ORPHANAGE IN CUERNAVACA, MEXICO AREAS SERVED BY NPH MEXICO OR NEEDY CHILDREN IN OTHER AREAS OF THE WORLD. THE PROCTOR TRUST WAS ESTABLISHED TO GENERATE INCOME FOR THE ORGANIZATION'S PROGRAM SERVICES. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION IS A NOT-FOR-PROFIT ORGANIZATION EXEMPT FROM PAYING CORPORATE FEDERAL INCOME TAX UNDER SECTION 501 (C)(3) OF THE INTERNAL REVENUE CODE. IT HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION UNDER THE INTERNAL REVENUE CODE AND CHARITABLE CONTRIBUTIONS BY DONORS ARE TAX DEDUCTIBLE. THE ORGANIZATION HAS EVALUATED ITS TAX POSITIONS AND DETERMINED IT HAS NO UNCERTAIN TAX POSITIONS AT DECEMBER 31, 2011. THE ORGANIZATION'S 2008-2011 TAX YEARS ARE OPEN FOR EXAMINATION BY THE IRS. SHOULD THE ORGANIZATION'S TAX EXEMPT STATUS BE CHALLENGED IN THE FUTURE, ALL YEARS SINCE INCEPTION COULD BE SUBJECT TO REVIEW BY THE IRS. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN VALUE OF PERPETUAL TRUST -193,445. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF PERPETUAL TRUST -193,445. GALA EVENT 404836 366664 38172 3000 25686 7452 2034 REGIONAL DINNER 212721 184706 28015 20000 7874 141 50 905871 722670 183201 24162 148836 6395 3808 1523428 1274040 249388 47162 182396 13847 5983 249388 0 1 NUESTROS PEQUENOS HERMANOS 8618 WESTWOOD CENTER DRIVE VIENNA VA 22182 205905144 501(C)(3) 5808645 5573973 FMV MEDICAL, FOOD, HOUSEHOLD GOODS SUPPORT ORPHANED AND DISADVANTAGED CHILDREN 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: FRIENDS SUPPORTS THE ANNUAL OPERATING BUDGETS AND SPECIAL PROJECTS OF THE NINE HOMES WHICH OPERATE UNTER THE UMBRELLA OF NUESTROS PEQUENOS HERMANOS INTERNATIONAL (NPHI) AND ORGANIZED 501(C)(3) OF THE INTERNAL REVENUE CODE. FRIENDS AND NPHI HAVE SIGNED AN AFFILIATION AGREEMENT WHICH FORMALIZES THEIR MUTUAL UNDERSTANDING AND COMMITMENT. IN ADDITION, OUR CFO SITS ON THE NPH FINANCE COMMITTEE AND REVIEWS THE PROPOSED BUDGETS AND MONTHLY RESULTS OF EACH HOME. THESE REVIEWS INCLUDE, IF REQUESTED, A DETAILED DESCRIPTION OF USES OF GRANT MONEY. X 0 0 0 0 0 0 0 0 0 SHARON SAXELBY 153062 0 23378 0 10844 0 0 0 0 0 187284 0 0 0 SHARON SAXELBY, PRESIDENT AND CEO, RECEIVED $187,285 IN COMPENSATION DURING 2011 BEFORE BEING REPLACED BY CURRENT PRESIDENT AND CEO, JOHN IBERLE. X 728113 DONOR X 18 162797 STOCK MARKET QUOTES X 42 4845860 FMV 0 0 1 0 EXPLANATION OF VOLUNTEERS AND TYPES OF SERVICES AND BENEFITS FORM 990, PART 1, LINE 6 FRIENDS HAS A DESIGNATED OFFICE ADMIN/VOLUNTEER COORDINATOR POSITION IN EVERY REGION. THEY KEEP A DAILY LOG OF VOLUNTEERS WHO WORK IN THE OFFICE. AT THE END OF THE YEAR, THEY TALLY THE NUMBER OF VOLUNTEERS AND THEIR HOURS AND SOLICIT OTHER REGIONAL STAFF FOR THEIR INPUT ON VOLUNTEER WORK. VOLUNTEERS PROVIDE ASSISTANCE IN OFFICE TASKS, PREPARING MAILINGS, TRANSLATING LETTERS FOR OUR CHILD SPONSORSHIP PROGRAM, GENERAL DATA ENTRY, AND OFFICE FILING. IN ADDITION, WE HAVE VOLUNTEERS WHO ASSIST WITH OUR SPECIAL EVENTS AND OTHER BOARD COMMITTEES. FRIENDS ALSO HAS A VOLUNTEER BOARD OF DIRECTORS THAT PROVIDES GOVERNANCE. ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES FORM 990, PART III, LINE 1 FRIENDS OF THE ORPHANS IS DEDICATED TO RAISING AND TRANSFORMING THE LIVES OF ORPHANED, ABANDONED AND DISADVANTAGED CHILDREN IN NINE LATIN AMERICAN AND CARIBBEAN COUNTRIES THROUGH ITS SUPPORT TO NUESTROS PEQUENOS HERMANOS. EVERYDAY, FRIENDS OF THE ORPHANS SUPPORTS OVER 3,700 CHILDREN IN BOLIVIA, THE DOMINICAN REPUBLIC, EL SALVADOR, GUATEMALA, HAITI, HONDURAS, MEXICO, NICARAGUA, AND PERU. AT NPH, CHILDREN ARE GIVEN A SAFE HOME, WARM MEALS AND AN EDUCATION. MOST IMPORTANTLY, THEY ARE GIVEN UNCONDITIONAL LOVE AND SUPPORT. THROUGH THE PARTNERSHIP WITH NPH, FRIENDS OF THE ORPHANS HAS RESCUED AND RAISED OVER 16,000 BOYS AND GIRLS. FORM 990, PART VI, SECTION A, LINE 1 TWO MEMBERS OF THE GOVERNING BODY ARE NUESTROS PEQUENOS HERMANOS EMPLOYEES AND ARE NOT ALLOWED TO VOTE ON MATTERS INVOLVING NUESTROS PEQUENOS HERMANOS. FORM 990, PART VI, SECTION B, LINE 11 THE AUDIT COMMITTEE REVIEWS THE FORM 990 PER THE BOARD OF DIRECTORS' INSTRUCTION. SUBSEQUENT TO THIS REVIEW, THE FORM 990 IS SENT TO THE BOARD OF DIRECTORS, AND MANAGEMENT AND THE AUDIT COMMITEE RESPOND TO BOARD OF DIRECTORS' QUESTIONS AND RESOLVE ALL ISSUES PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST DISCLOSURE FORMS ARE COMPLETED BY ALL BOARD MEMBERS ANNUALLY, AND ARE REVIEWED AND SIGNED BY THE BOARD CHAIR. CONFLICTS OF INTEREST DISCLOSURE FORMS ARE ALSO COMPLETED ANNUALLY BY MANAGEMENT STAFF AND REVIEWED AND SIGNED BY THE CEO. IT IS THE CONTINUING RESPONSIBILITY OF THE BOARD, OFFICERS, AND MANAGEMENT EMPLOYEES TO SCRUTINIZE THEIR TRANSACTIONS AND OUTSIDE BUSINESS INTERESTS AND RELATIONSHIPS FOR POTENTIAL CONFLICTS AND TO IMMEDIATELY MAKE SUCH DISCLOSURES AND UPDATE THEIR ANNUAL DISCLOSURES. AT THE BEGINNING OF EVERY BOARD MEETING, THE CHAIR ASKS MEMBERS TO DISCLOSE WHETHER THEY HAVE ANY CONFLICT OF INTEREST PERTINENT TO THE MEETING AGENDA. IF ANY ARE DISCLOSED, THE MEMBER IS EXCUSED SO THAT THE BOARD CAN DISCUSS AND DETERMINE WHETHER THE CONFLICT IS MATERIAL ENOUGH TO PRECLUDE THE BOARD MEMBER'S PARTICIPATION IN THE DISCUSSION AND/OR VOTE. TRANSACTIONS WITH PARTIES WITH WHOM A CONFLICTING INTEREST EXISTS MAY BE UNDERTAKEN ONLY IF ALL OF THE FOLLOWING ARE OBSERVED: 1. THE CONFLICTING INTEREST IS FULLY DISCLOSED AT THE MEETING, PRIOR TO THE DISCUSSION. 2. THE PERSON WITH THE CONFLICT OF INTEREST IS EXCLUDED FROM THE DISCUSSION AND APPROVAL OF SUCH TRANSACTION; 3. A COMPETITIVE BID OR COMPARABLE VALUATION EXISTS; AND 4. THE BOARD OR A DULY CONSITUTED COMMITTEE THEREOF HAS DETERMINED THAT THE TRANSACTION IS IN BEST INTEREST OF THE ORGANIZATION. DISCLOSURES OF CONFLICTS INVOLVING STAFF ARE MADE TO THE CEO (OR IF SHE OR HE IS THE ONE WITH THE CONFLICT, THEN TO THE BOARD CHAIR), WHO SHALL BRING THE MATTER TO THE ATTENTION OF THE BOARD CHAIR, (OR IS SHE OR HE IS THE ONE WITH THE CONFLICT, THEN TO THE BOARD VICE-CHAIR) WHO SHALL BRING THESE MATTERS TO THE BOARD OR A DULY CONSTITUTED COMMITTEE THEREOF. THE BOARD OR A DULY CONSTITUTED COMMITTEE THEREOF SHALL DETERMINE WHETHER A CONFLICT EXISTS AND IN THE CASE OF AN EXISTING CONFLICT, WHETHER THE CONTEMPLATED TRANSACTION MAY BE AUTHORIZED AS JUST, FAIR, AND REASONABLE TO FRIENDS OF THE ORPHANS. THE DECISION IS THE BOARD OR A DULY CONSTITUTED COMMITTEE THEREOF ON THESE MATTERS WILL REST IN THEIR SOLE DISCRETION, AND THEIR CONCERN MUST BE THE WELFARE OF FRIENDS OF THE ORPHANS AND THE ADVANCEMENT OF ITS PURPOSE. FORM 990, PART VI, SECTION B, LINE 15A THE INDEPENDENT BOARD OF DIRECTORS IS RESPONSIBLE FOR APPROVING COMPENSATION OF THE CEO BASED ON A RECOMMENDATION BY THE HUMAN RESOURCE COMMITTEE (HR). HR COLLECTS COMPARATIVE DATA ANNUALLY TO DETERMINE REASONABLENESS. HR EVALUATES THE CEO'S COMPENSATION AND DEVELOPS CEO GOALS ANNUALLY AND EVALUATES PERFORMANCE ANNUALLY AND SEMIANNUALLY. THE BOARD OF DIRECTORS DOCUMENTS COMPENSATION APPROVAL IN WRITING. THIS PROCESS IS CURRENTLY UNDERWAY IN THE SEARCH FOR A NEW CEO. OTHER OFFICER SALARIES ARE DETERMINED BY THE CEO. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS NOR ITS CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC. THE ORGANIZATION'S FINANCIAL STATEMENTS ARE MADE AVAILABLE ONLINE AND THROUGH A PUBLIC FILING. FORM 990, PART VI, LINE 15B - COMPENSATION PROCESS FOR OFFICERS SAME AS COMPENSATION PER FORM 990, PART VI, LINE 15A EXCEPT CEO IS RESPONSIBLE FOR RECOMMENDING COMPENSATION PACKAGE TO HR. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 4,087. PRIOR PERIOD ADJUSTMENTS: 560,544. CHANGE IN VALUE OF PERPETUAL TRUST -193,445. TOTAL TO FORM 990, PART XI, LINE 5: 371,186. FATHER WASSON LEGACY ENDOWMENT INC 134 NORTH LASALLE STREET CHICAGO IL 60602 912005679 SUPPORTING ORGANIZATION DE 501(C)(3) LINE 11A, I FRIENDS OF THE ORPHANS 1 FRIENDS OF THE ORPHANS IRREVOCABLE TRUST 134 N LASALLE STREET 500 CHICAGO IL 60602 INVESTMENT AZ FRIENDS OF THE ORPHANS T 90981 1888971 1.00000 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 FRIENDS OF THE ORPHANS IRREVOCABLE TRUST R 121642 CASH TRANSFERRED