2012-05-15T09:33:15-05:00 2011-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2011-01-01 521081024 INDEPENDENT SECTOR INDE 2024676100 1602 L STREET NW NO 900 WASHINGTON DC 20036 DIANA AVIV 2024676100 2012-05-15 1 WILLIAM E TURCO CPA P00369217 3012963600 2011 2016-02-24 21:20:13Z DIANA AVIV 1602 L STREET NW NO 900 WASHINGTON DC 20036 11995490 0 X WWW.INDEPENDENTSECTOR.ORG X 1980 DC LEADING, STRENGTHENING, AND MOBILIZING THE NONPROFIT AND PHILANTHROPIC COMMUNITY. 23 23 61 275 1437 -60708 7867471 9692796 412769 528606 96812 172597 83951 87097 8461003 10481096 0 0 0 0 4321957 4217832 0 0 624146 3270750 3692965 7592707 7910797 868296 2570299 46508429 49035455 23747394 23804083 22761035 25231372 X TO ADVANCE THE COMMON GOOD BY LEADING, STRENGTHENING, AND MOBILIZING THE NONPROFIT AND PHILANTHROPIC COMMUNITY. 0 0 1800708 PUBLIC POLICY:INDEPENDENT SECTOR (IS) PROVIDES LEADERSHIP FOR AND COLLABORATES WITH OUR MEMBERS TO COMMUNICATE TO LAWMAKERS THE VALUE OF THE NONPROFIT COMMUNITY AND TO ADVOCATE FOR FEDERAL POLICIES AND REGULATIONS THAT ADVANCE THE ABILITY OF CHARITABLE ORGANIZATIONS TO SERVE THEIR COMMUNITIES. KEY ACHIEVEMENTS IN 2011 INCLUDED REPEAL OF NEW FORM 1099 REPORTING REQUIREMENTS ENACTED AS PART OF THE PATIENT PROTECTION AND AFFORDABLE CARE ACT, EXTENSION OF HIRING INCENTIVES TO NONPROFIT EMPLOYERS IN THE AMERICAN JOBS ACT AND THE HIRING HEROES ACT, AND REMOVAL OF A CAP ON THE CHARITABLE DEDUCTION FROM THE SENATE VERSION OF THE AMERICAN JOBS ACT. INDEPENDENT SECTOR CONTINUED TO ADVOCATE FOR TAX INCENTIVES THAT ENCOURAGE ALL AMERICANS TO CONTRIBUTE TO CHARITY AND SUCCEEDED IN STAVING OFF EFFORTS TO CURTAIL TAX DEDUCTIONS FOR CHARITABLE GIFTS AVAILABLE TO TAXPAYERS AT HIGHER INCOME LEVELS. IS HAS BEEN COMMITTED TO ADVANCING THE ABILITY OF NONPROFITS TO ENGAGE IN ADVOCACY EFFORTS ON BEHALF OF THE COMMUNITIES AND CAUSES THEY SERVE, AND TO REMOVING OBSTACLES THAT INHIBIT FUNDERS FROM SUPPORTING THOSE EFFORTS. IN 2011, IS CONVENED A SYMPOSIUM OF PRACTITIONERS AND LEGAL EXPERTS FOR AN IN-DEPTH EXAMINATION OF THESE ISSUES IN ORDER TO GUIDE THE ORGANIZATION'S FUTURE EFFORTS TO IDENTIFY AND REMOVE THESE BARRIERS. IS USED A VARIETY OF VEHICLES TO CONNECT AND MOBILIZE OUR MEMBERS ON THESE ISSUES, INCLUDING THE PUBLIC POLICY ACTION INSTITUTE AT THE ANNUAL CONFERENCE, OUR DAILY EMAIL HIGHLIGHTING KEY POLICY DEVELOPMENTS; MONTHLY STRATEGY MEETINGS WITH NONPROFIT COMMUNITY POLICY LEADERS; MONTHLY LEGISLATIVE UPDATES BY TELECONFERENCE; SPECIAL CALLS, EMAIL COMMUNICATIONS AND SOCIAL MEDIA AS NEEDED; AND THE POLICY SECTION OF OUR WEBSITE. THROUGH THESE AND OTHER EFFORTS, IS STRENGTHENS THE ABILITY OF PUBLIC CHARITIES AND PRIVATE FOUNDATIONS TO SHAPE KEY PUBLIC POLICIES AND TO STRENGTHEN THE PARTNERSHIP BETWEEN GOVERNMENT AND THE NONPROFIT COMMUNITY. 1304569 524995 ANNUAL CONFERENCE:THE IS ANNUAL CONFERENCE PROVIDES THE PREMIER MEETING GROUND FOR LEADERS FROM ACROSS THE NONPROFIT COMMUNITY, BRINGING TOGETHER LEADERS FROM NONPROFITS, FOUNDATIONS, CORPORATE GIVING PROGRAMS, AND ACADEMIA TO SHARE THEIR EXPERIENCES AND EXPERTISE AND DEVELOP STRATEGIES TO ADDRESS THE CRITICAL ISSUES FACING OUR NATION AND THE WORLD. IN OCTOBER 2011, OVER 1000 PEOPLE (INCLUDING 116 ON SCHOLARSHIP) ATTENDED OUR ANNUAL CONFERENCE FEATURING INTERACTIVE SESSIONS INFUSED WITH THE ARTS. ABOUT 165 PARTICIPATED IN OUR PUBLIC POLICY ACTION INSTITUTE - A 12% INCREASE FROM 2010 - AND 165 IN NGEN PROGRAMMING (FOR NONPROFIT PROFESSIONALS UNDER 40). THE EXPERTISE AND VIBRANCY OF ALL OUR PARTICIPANTS PRODUCED A WORLD-CLASS EXCHANGE OF IDEAS. THE MEETING FEATURED NUMEROUS SESSIONS AND INNOVATIVE FORMATS THAT HELPED PARTICIPANTS EXAMINE HOW TO BUILD LASTING SOLUTIONS TO CURRENT CONDITIONS AND CREATE BRIGHTER FUTURES FOR ORGANIZATIONS AND THE PEOPLE THEY SERVE. IN ADDITION, THE CONFERENCE AGAIN INCLUDED SPECIAL SESSIONS TARGETED AT CEOS. 1187621 LEADERSHIP FOR THE FUTURE;BUILDING UPON OUR STRATEGIC PLANNING PROCESS, THROUGH WHICH IS IDENTIFIED AND EXAMINED MAJOR TRENDS, CHALLENGES, AND OPPORTUNITIES FACING THE NONPROFIT AND PHILANTHROPIC COMMUNITY OVER THE NEXT 10 YEARS, AND FRAMED A THREE-YEAR ORGANIZATIONAL PLAN GROUNDED IN THOSE FINDINGS, IS ENTERED THE FIRST YEAR OF PLAN EXECUTION COMMITTED TO A CLEARLY ARTICULATED VISION FOR IS'S LEADERSHIP OF OUR COMMUNITY, AS WELL AS RELATED STRATEGIES FOR ADVANCING SUCH SOLUTIONS-ORIENTED LEADERSHIP. FOR THE STRATEGIC PLAN PERIOD (2011-13), IS HAS TARGETED THREE PRIMARY AREAS OF FOCUS: VOICE, LEADERSHIP AND IMPACT, AS DESCRIBED BELOW:VOICE: IS WILL FOCUS ON INCREASING THE SECTOR'S PROFILE AND PRODUCTIVE RELATIONSHIPS WITH GOVERNMENT AND BUSINESS, WHICH REQUIRES DEEPENING OUR CONNECTIONS AND IMPACT IN WASHINGTON, DC; LEADERSHIP: IS WILL SEEK TO DEVELOP THE SECTOR'S ADAPTIVE LEADERSHIP CAPACITY AND STRENGTHEN DIVERSE LEADERSHIP PIPELINES TO SUPPORT LEADERS AT EVERY AGE AND CAREER STAGE; AND IMPACT: IS WILL FOCUS ON MEASURING AND COMMUNICATING IMPACT IN WAYS THAT FOSTER COLLABORATION, INCLUDING ESTABLISHING A COMMON FRAMEWORK FOR ORGANIZATIONAL ASSESSMENT AND EFFECTIVENESS.DURING 2011, THE STRATEGY DEPARTMENT CONTINUED TO SUPPORT BOTH THE BOARD OF DIRECTORS' STRATEGIC LEADERSHIP AND OVERSIGHT OF THE ORGANIZATION, IS'S OVERALL EFFORTS TO EXECUTE ON THE PLAN AND TO MONITOR PERFORMANCE THEREUNDER, AND TO PROVIDE RESEARCH AND ANALYSIS OF SECTOR-RELATED ISSUES AND TRENDS. ONE SIGNIFICANT UNDERTAKING OF IS AND THE STRATEGY DEPARTMENT BEGINNING IN 2011 WAS STUDYING THE ABILITY OF NONPROFITS AND FOUNDATIONS TO ADVOCATE SUCCESSFULLY ON FEDERAL PUBLIC POLICY ISSUES THAT GOVERN THE CHARITABLE AND PHILANTHROPIC COMMUNITY. THE STUDY SPECIFICALLY EXAMINES NATIONAL ORGANIZATIONS AND THEIR EFFORTS RELATED TO POLICY ISSUES THAT AFFECT THE SECTOR AS A WHOLE, SUCH AS: CHARITABLE TAX EXEMPTIONS, ADVOCACY RULES FOR NONPROFITS AND FOUNDATIONS, AND GOVERNMENT-FUNDED RESEARCH ON THE SECTOR. THE FINDINGS WILL BE USED TO INFORM FUTURE ADVOCACY EFFORTS. 1026155 3611 NONPROFIT AND PHILANTHROPIC LEADERSHIP AND PRACTICE:INDEPENDENT SECTOR HAS CONTINUED OUR LEADERSHIP IN HELPING OUR MEMBERS AND OTHER NONPROFITS AND FOUNDATIONS OPERATE ETHICALLY AND EFFECTIVELY. TO STRENGTHEN PUBLIC CONFIDENCE IN THE SECTOR, WE LAUNCHED AN ONLINE RESOURCE CENTER FOR GOOD GOVERNANCE AND ETHICAL PRACTICE WITH MORE THAN 200 TOOLS AND BEST PRACTICES TO SUPPORT ORGANIZATIONS IN APPLYING HIGH STANDARDS OF ACCOUNTABILITY. WE ALSO FOCUSED OUR WORK ON ELEVATING IMPACT IN THE SECTOR BY LAUNCHING "CHARTING IMPACT" WITH BBB WISE GIVING ALLIANCE AND GUIDESTAR USA. THIS INITIATIVE HELPS NONPROFITS AND FOUNDATIONS DEFINE THEIR IMPACT AND MORE CLEARLY ARTICULATE HOW THEIR PROGRAMS SERVE SOCIETY THOUGH A COMMON FORMAT OF FIVE QUESTIONS. THE CHARTING IMPACT WEBSITE HELPS ORGANIZATIONS COMPLETE AND PUBLISH THEIR OWN CHARTING IMPACT REPORTS. THIS YEAR WE ALSO CONTINUED OUR ONGOING COMMITMENT TO SUPPORTING LEADERSHIP IN THE SECTOR THROUGH OUR NGEN: MOVING NONPROFIT LEADERS FROM NEXT TO NOW PROGRAM. AS PART OF THAT COMMITMENT, INDEPENDENT SECTOR HELPED TO CONVENE A MAJOR COLLABORATIVE EFFORT TO TRANSFORM INVESTMENTS IN HUMAN CAPITAL AND LEADERSHIP DEVELOPMENT. THE "INITIATIVE FOR NONPROFIT TALENT AND LEADERSHIP" IS A CROSS-SECTOR ALLIANCE THAT AIMS TO ELEVATE ATTENTION TO LEADERSHIP AS A SECTOR PRIORITY THROUGH WORK CONTINUING IN 2012. 836849 MEMBERSHIP:THE IS MEMBERSHIP IS A LEADERSHIP NETWORK OF APPROXIMATELY 600 ORGANIZATIONS REPRESENTING A CROSS SECTION OF THE NONPROFIT AND PHILANTHROPIC COMMUNITY INCLUDING LOCAL, REGIONAL AND NATIONAL NONPROFITS, CORPORATE GIVING PROGRAMS, AND FOUNDATIONS, WE DRAW ON OUR MEMBERSHIP TO INFORM POLICY POSITIONS AND AMPLIFY THE VOICE OF THE NONPROFIT COMMUNITY TO THE ADMINISTRATION AND LEGISLATORS, TO BUILD NONPROFIT MANAGEMENT PRACTICE TOOLS AND TECHNIQUES AND TO PROMOTE GOOD GOVERNANCE STANDARDS. MEMBERS ARE ENGAGED THROUGH COMMITTEES, ROUNDTABLES, AND AT OUR ANNUAL CONFERENCE WHERE THEY BRING THEIR THOUGHT LEADERSHIP AND ADVANCE PRACTICE EXPERTISE. WE ACCOMPLISH OUR WORK THROUGH AND WITH OUR MEMBERSHIP. 637999 COMMUNICATIONS:WE UTILIZE A VARIETY OF STRATEGIES AND METHODS TO INCREASE AWARENESS AND UNDERSTANDING OF THE VALUE OF THE NONPROFIT COMMUNITY TO THE MEDIA, ELECTED OFFICIALS, THE PUBLIC, AND STAFF AT NONPROFITS AND FOUNDATIONS. COVERAGE OF IS HAS APPEARED IN PUBLICATIONS RANGING FROM NATIONAL OUTLETS SUCH AS CBS NEWS, NPR, THE NEW YORK TIMES, THE WALL STREET JOURNAL, THE WASHINGTON POST AND HUFFINGTON POST, TO TRADE PUBLICATIONS SUCH AS THE CHRONICLE OF PHILANTHROPY, THE NONPROFIT TIMES, AND TAX ANALYSTS. MEDIA REPRESENTATIVES CONTACTED IS FREQUENTLY DURING THE YEAR FOR EXPERTISE ON GIVING, VOLUNTEERING, ETHICS AND ACCOUNTABILITY AND PUBLIC POLICIES AFFECTING THE NONPROFIT COMMUNITY, SUCH AS THE CHARITABLE DEDUCTION, JOBS PROGRAMS, AND TAX EXEMPTIONS.IS CONTINUES TO IMPROVE OUTREACH TO OUR MEMBERS AND OTHER PARTS OF THE NONPROFIT AND PHILANTHROPIC COMMUNITY AND OUR CEO WAS FEATURED AT NEARLY 20 HIGH-VISIBILITY SPEAKING ENGAGEMENTS IN 2011. WE ARE CONTINUALLY UPGRADING THE USER EXPERIENCE ON OUR WEBSITE AND ACCESSIBILITY OF EXISTING MATERIALS, INTERACTIVE FEATURES AND A ROBUST SUB-SITE FOR OUR PRINCIPLES OF GOOD GOVERNANCE AND ETHICAL PRACTICE. WE CREATE TOOLKITS, TALKING POINTS AND ONLINE MAPS THAT HELP OUR MEMBERS COMMUNICATE THEIR OWN VALUE. TOGETHER WITH GUIDESTAR AND BBB WISE GIVING ALLIANCE WE LAUNCHED CHARTINGIMPACT.ORG AS A COMMON PRESENTATION THAT ALLOWS STAFF, BOARDS, STAKEHOLDERS, DONORS, VOLUNTEERS, AND OTHERS TO WORK WITH AND LEARN FROM EACH OTHER. IT COMPLEMENTS PLANNING, EVALUATION, AND ASSESSMENT THAT ORGANIZATIONS ALREADY UNDERTAKE, AND CAN BE USED BY NONPROFITS AND FOUNDATIONS OF ALL SIZES AND MISSIONS. WE CONTINUE TO EXPAND AND REFINE OUR SOCIAL MEDIA STRATEGY THROUGH FACEBOOK AND TWITTER TO BETTER ENGAGE WITH OUR MEMBERS AND COMMUNICATE THE VALUE OF THE SECTOR. WE PUBLISH DAILY POLICY AND MEDIA DIGESTS AND EMAIL TO NEARLY 1,000 SUBSCRIBERS AT MEMBER ORGANIZATIONS, SEND TIMELY ALERTS ON KEY POLICY ISSUES, AND PRODUCE A MONTHLY MEMBER NEWSLETTER, IS CONNECTS. 2501003 3611 6793901 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 17 0 1 61 1 1 1 0 0 0 0 0 0 0 0 0 X 23 23 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AR AZ CA CO CT DC FL GA HI IL KS KY MA MD ME MI MS MN NC NH NM NY OH OK PA RI SC TN UT VA WA WI X X TERRI O'BRIEN 2024676100 1602 L STREET NW NO 900 WASHINGTON DC 20036 STEPHEN B HEINTZ 5.00 X X 0 0 0 RALPH B EVERETT 5.00 X X 0 0 0 KELVIN H TAKETA 5.00 X X 0 0 0 LORIE A SLUTSKY 5.00 X X 0 0 0 IRENE HIRANO INOUYE 2.00 X 0 0 0 ELLEN S ALBERDING 2.00 X 0 0 0 BARBARA R ARNWINE 2.00 X 0 0 0 SUSAN V BERRESFORD 2.00 X 0 0 0 ROBERT W BRIGGS 2.00 X 0 0 0 KYLE CALDWELL 2.00 X 0 0 0 BRIAN A GALLAGHER 2.00 X 0 0 0 STEVEN J MCCORMICK 2.00 X 0 0 0 RISA LAVIZZO-MOUREY 2.00 X 0 0 0 BERNARD J MILANO 2.00 X 0 0 0 NEIL NICOLL 2.00 X 0 0 0 MARIAM C NOLAND 2.00 X 0 0 0 MICHAEL S PIRAINO 2.00 X 0 0 0 WENDY D PURIEFOY 2.00 X 0 0 0 REY RAMSEY 2.00 X 0 0 0 PAUL SCHMITZ 2.00 X 0 0 0 REV LARRY SNYDER 2.00 X 0 0 0 ROBERTO SURO 2.00 X 0 0 0 RICHARD B WILLIAMS 2.00 X 0 0 0 GARY YATES 2.00 X X 0 0 0 LUZ A VEGA-MARQUIS 2.00 X 0 0 0 RUTH WOODEN 2.00 X 0 0 0 DIANA AVIV 60.00 X 456571 0 40886 TERRI O'BRIEN 50.00 X 169472 0 6939 CLAIRE WELLINGTON 50.00 X 159882 0 28004 LOIS FU 50.00 X 140235 0 50 MIKAELA SELIGMAN 50.00 X 135251 0 12830 LORRAINE SNEBOLD 50.00 X 134863 0 11391 GEOFFREY C PLAGUE 45.00 X 123072 0 5884 ERICA GREELEY 45.00 X 112845 0 17069 1432191 0 123053 11 0 1 0 FAIRMONT HOTEL CHICAGO 200 NORTH COLUMBUS DRIVE CHICAGO IL 60601 MEETING SERVICES 291215 OFFICE IT SOLUTIONS 3509 CONNECTICUT AVE NW 705 WASHINGTON DC 20008 TECHNOLOGY SERVICES 282589 WASHINGTON COUNCIL 1150 17TH STREET NW 601 WASHINGTON DC 200365339 LEGISLATIVE ASSISTANCE 210000 K3 CONSTRUCTION GROUP 11307 SUNSET HILLS ROAD RESTON VA 20190 CONSTRUCTION SERVICES 179899 O'KEEFE COMMUNICATIONS INC 4310 CONNECTICUT AVE NW 200 WASHINGTON DC 20008 PRODUCTION SERVICES 150188 7 3058834 6633962 9692796 CONFERENCE FEES 900004 524995 524995 PUBLICATION SALES 900099 3611 3611 528606 172597 172597 1458547 1514394 -55847 -55847 -39955 -15892 SUBLEASE INCOME 900099 101552 101552 PARKING SERVICES 812930 41392 41392 142944 10481096 528606 1437 258257 852382 553327 220030 79025 2829773 1825908 735235 268630 83004 64620 16790 1594 214874 124257 62042 28575 237799 153440 61785 22574 17282 17282 42996 42996 1251846 947316 295866 8664 28536 14268 14268 271938 175664 93242 3032 54958 27479 27479 1050150 693813 278365 77972 96120 91930 4114 76 687632 669423 17659 550 2734 2734 167492 167492 21281 21281 ALLOCATED OVERHEAD 0 1452456 -1585910 133454 7910797 6793901 492750 624146 333215 899483 6088951 9836463 2623314 3625508 230128 62101 42849 26607 35930405 4016253 32709450 31914152 2957625 984358 1522897 1686783 46508429 49035455 473694 667311 15000000 15000000 5700000 5700000 2300000 1950000 273700 486772 23747394 23804083 X 18399744 19754265 4361291 5477107 22761035 25231372 46508429 49035455 X 2570299 -99962 X 0 1 1 X 0 X 5649914 8063257 8015098 7867471 9946525 39542265 5649914 8063257 8015098 7867471 9946525 39542265 8430355 31111910 833608 607335 257346 463840 172597 2334726 120000 120000 41996991 5130542 0.74080 0.74690 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 7688 43563 51251 9586277 9637528 631876 157969 0 0 604010 587869 465287 631876 2289042 3433563 40314 185157 61464 51251 338186 151003 146967 116322 157969 572261 858392 25032 36914 15366 7688 85000 5000000 5000000 5000000 5000000 5000000 5000000 5000000 5000000 1.00000 0 0 5391820 5391820 26728691 2617184 24111507 2407693 378387 2029306 1402201 1020682 381519 31914152 DEFERRED COMPENSATION PLAN 229600 DEFERRED RENT LIABILITY 94990 DEPOSITS HELD IN ESCROW 162182 486772 10481096 7910797 2570299 -99962 -99962 2470337 12107865 -99962 253729 153767 11954098 -1473002 -1473002 10481096 9637528 253729 1473002 1726731 7910797 0 7910797 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: BOARD DESIGNATED NET ASSETS REPRESENTS A PORTION OF UNRESTRICTED NET ASSETS DESIGNATED FOR THE $5,000,000 OF INVESTMENTS RESTRICTED AS COLLATERAL FOR THE $4,500,000 NOTE PAYABLE DUE JUNE 4, 2013. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, INDEPENDENT SECTOR IS EXEMPT FROM THE PAYMENT OF INCOME TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME. FOR THE YEAR ENDED DECEMBER 31, 2011, NO PROVISION FOR INCOME TAXES WAS REQUIRED, AS INDEPENDENT SECTOR HAD NO UNRELATED BUSINESS TAX LIABILITY. LLC IS A SINGLE MEMBER LIMITED LIABILITY COMPANY THAT HAS ELECTED TO BE TREATED AS A DISREGARDED ENTITY. AS SUCH, LLC IS NOT SUBJECT TO FEDERAL INCOME TAX, BUT RATHER, ITS INCOME OR LOSS INURES TO INDEPENDENT SECTOR. LLC IS SUBJECT TO THE DISTRICT OF COLUMBIA BUSINESS FRANCHISE TAX. THERE WAS NO TAX PROVISION NECESSARY TO BE ACCRUED AS OF DECEMBER 31, 2011. THE ORGANIZATION ADOPTED THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (FASB ASC TOPIC 740-10), WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, INDEPENDENT SECTOR MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED INDEPENDENT SECTOR'S TAX POSITIONS AND CONCLUDED THAT INDEPENDENT SECTOR HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, THE ORGANIZATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2008. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON LINE 6B -1,514,394. PARKING SERVICE REVENUE REPORTED ON LINE 11 41,392. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON LINE 6B 1,514,394. PARKING SERVICE REVENUE REPORTED ON LINE 11 -41,392. X X X X X 0 0 0 0 0 0 0 0 0 DIANA AVIV 440071 0 0 0 16500 0 24500 0 16386 0 497457 0 0 0 TERRI O'BRIEN 169472 0 0 0 0 0 6341 0 1346 0 177159 0 0 0 CLAIRE WELLINGTON 159882 0 0 0 0 0 16030 0 12706 0 188618 0 0 0 DISTRICT OF COLUMBIA 566001131 2010-06-01 15000000 TO REFINANCE PURCHASE OF HEADQUARTERS BUILDING 0 0 0 15000000 15000000 15000000 2008 0 0 1 1 1 0 0 0 0.00000 0.00000 0.00000 1 1 1 0 0 0 0 FORM 990, PART VI, SECTION A, LINE 6 IS HAS MEMBERS THAT HELP SUPPORT THE MISSION OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THERE IS ONLY ONE CLASS OF VOTING MEMBERS AND THEY HAVE THE AUTHORITY TO APPROVE CHANGES IN THE ARTICLES OF INCORPORATION AND BY-LAWS, MEMBERSHIP DUES AND/OR DUES ASSESSMENT METHODOLOGY, MEMBERSHIP ELIGIBILITY CRITERIA, ELECT DIRECTORS OF THE ORGANIZATION OTHER THAN THE PRESIDENT, AFFIRM MAJOR POLICIES AND LEGISLATIVE ACTIONS BY THE BOARD, AS APPROPRIATE, AND ADOPT RESOLUTIONS ON NATIONAL ISSUES OF CONCERNS TO THE MEMBERSHIP, AS APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 11 PRIOR TO FILING, THE FORM 990 IS PRESENTED TO INDEPENDENT SECTOR'S AUDIT COMMITTEE FOR REVIEW. THE CHIEF FINANCIAL OFFICER ALSO REVIEWS THE FORM 990, IN DETAIL, WITH THE PRESIDENT AND CHIEF EXECUTIVE OFFICER PRIOR TO OBTAINING THE CEO'S SIGNATURE ON THE DOCUMENT. THE FORM 990 IS ALSO PRESENTED TO THE FULL BOARD OF DIRECTORS FOR REVIEW IN ADVANCE OF FILING. IT IS DISTRIBUTED IN ADVANCE OF THE BOARD MEETING IN ORDER TO ENSURE THAT DIRECTORS HAVE AN OPPORTUNITY FOR A MEANINGFUL REVIEW AND TO ALLOW ALL DIRECTORS THE OPPORTUNITY TO GAIN A FULL UNDERSTANDING OF THE DOCUMENT BEFORE IT IS FILED. INDEPENDENT SECTOR'S AUDITORS PARTICIPATE IN THE BOARD MEETING IN ORDER TO RESPOND TO ANY QUESTIONS THAT DIRECTORS MAY HAVE. FORM 990, PART VI, SECTION B, LINE 12C EACH YEAR, BOARD MEMBERS ARE ASKED TO REVIEW INDEPENDENT SECTOR'S CONFLICT OF INTEREST POLICY AND TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT. AMONG OTHER THINGS, THE POLICY MAKES CLEAR THAT ALL DECISIONS OF THE BOARD, OFFICERS AND EMPLOYEES OF INDEPENDENT SECTOR ARE TO BE MADE SOLELY ON THE BASIS OF A DESIRE TO PROMOTE THE BEST INTERESTS OF THE ORGANIZATION AND THE PUBLIC GOOD. THE DISCLOSURE STATEMENT, IN TURN, REQUESTS THAT DIRECTORS IDENTIFY, TO THE BEST OF THEIR KNOWLEDGE, AFFILIATIONS WITH ORGANIZATIONS THAT MAYBE POTENTIALLY RELATED TO THE FINANCIAL OR OTHER SUBSTANTIVE OPERATIONS OF INDEPENDENT SECTOR. THEY ARE ALSO ASKED TO IDENTIFY CIRCUMSTANCES INVOLVING EITHER THEMSELVES, OR A MEMBER OF THEIR EXTENDED FAMILY, THAT MAYBE CONSTRUED AS A CONFLICT OF INTEREST. IF SUCH CIRCUMSTANCE SHOULD ARISE SUBSEQUENT TO SUBMITTING THE DISCLOSURE STATEMENT, THE POLICY SETS FORTH AN ONGOING DISCLOSURE REQUIREMENT. AT THE STAFF LEVEL, INDEPENDENT SECTOR PERSONNEL ALSO ENSURE THAT THERE ARE NO CONFLICTS OF INTEREST WHEN CONSIDERING ENGAGEMENT OF A NEW VENDOR. IF A POTENTIAL CONFLICT IS IDENTIFIED, APPROPRIATE STEPS ARE TAKEN BOTH TO ASSESS THE NATURE OF THE POTENTIAL CONFLICT AND, SUBSEQUENTLY, TO ENSURE THAT THE POSSIBILITY OF AN ACTUAL CONFLICT IS MITIGATED. SUCH MITIGATION MAY BE ACHIEVED THROUGH THE RECUSAL OR FIREWALLING OF THE INDIVIDUAL IN QUESTION, THUS ENSURING THAT THE CONFLICT IS MANAGED AND THE LETTER AND SPIRIT OF THE CONFLICTS POLICY ARE UPHELD. IN ADDITION, WE NOTE THAT DURING THE ANNUAL AUDIT STAFF IDENTIFY AND DISCLOSE TO AUDITORS ALL KNOWN CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 APART FROM THE ORGANIZATION'S PRESIDENT AND CHIEF EXECUTIVE OFFICER, INDEPENDENT SECTOR'S OFFICERS (CHAIR, VICE CHAIR, SECRETARY, AND TREASURER) DO NOT RECEIVE COMPENSATION FROM THE ORGANIZATION. AN ANNUAL COMPENSATION REVIEW PROCESS FOR THE CEO TAKES PLACE UNDER THE LEADERSHIP OF THE BOARD CHAIR AND EXECUTIVE COMMITIEE. AN OUTSIDE CONSULTANT IS RETAINED OR SALARY SURVEYS AND 990S ARE REVIEWED TO PROVIDE INDUSTRY COMPARABLE SALARY DATA. AN INTERMEDIATE SANCTIONS ANALYSIS AND RELATED DOCUMENTATION ARE ALSO COMPLETED. THE EXECUTIVE COMMITIEE HAS RESPONSIBILITY FOR MAKING FINAL RECOMMENDATIONS TO THE FULL BOARD OF DIRECTORS REGARDING THE PRESIDENTS PERFORMANCE EVALUATION AND COMPENSATION. THE BOARD OF DIRECTORS MAKES A FINAL DETERMINATION WITH REGARD TO THESE MATTERS. WITH REGARD TO STAFF COMPENSATION, THE PRESIDENT AND CEO, VICE PRESIDENTS, AND APPROPRIATE STAFF MANAGERS ALSO COMPLETE ANNUAL PERFORMANCE EVALUATIONS. FOR ALL STAFF OTHER THAN THE PRESIDENT AND CEO, IS UTILIZES INDUSTRY-COMPARABLE DATA IN MAKING DETERMINATIONS REGARDING THE RANGE OF SALARIES. THE PRESIDENT AND CEO MAKES ALL FINAL DETERMINATIONS RELATIVE TO STAFF COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 INDEPENDENT SECTOR'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC. THE ANNUAL AUDIT, 990 AND 990T, BOARD OF DIRECTORS LIST, AND IS POLICIES (CONFLICT OF INTEREST, FINANCIAL RESPONSIBILITY, GIFTS AND ENTERTAINMENT, RECORDS RETENTION AND TRAVEL) ARE ALL AVAILABLE TO THE PUBLIC ON THE ORGANIZATION'S WEBSITE (WWW.INDEPENDENTSECTOR.ORG). CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -99,962. THE NUMBER OF VOTING MEMBERS OF THE BOARD OF DIRECTORS FORM 990, PAGE 6, PART VI, LINE 1 AND PAGE 7, PART VII THE NUMBER OF VOTING MEMBERS SHOWN IN PART VI SECTION A LINE 1 DIFFERS FROM THE NUMBER OF DIRECTORS LISTED IN PART VII BECAUSE BOARD MEMBERS ARE INCLUDED IN PART VII IF THEY SERVED ON THE BOARD AT ANY TIME DURING 2011. INDEPENDENT SECTOR'S BOARD TERM BEGINS AT THE ANNUAL BUSINESS MEETING HELD DURING THE IS ANNUAL CONFERENCE IN THE FALL. 1620 IS LLC 1602 L STREET NW WASHINGTON DC 20036 543219877 BUILDING MANAGEMENT DC 2558548 36870875 INDEPENDENT SECTOR