2012-07-23T12:20:19-05:00 2011-12-31 251622758 MAHER DUESSEL CPA'S 503 MARTINDALE STREET SUITE 600 PITTSBURGH PA 15212 990 2011-01-01 251053485 WESTERN PENNSYLVANIA CONSERVANCY WEST 4122882777 800 WATERFRONT DRIVE PITTSBURGH PA 15222 THOMAS SAUNDERS 4122882777 2012-07-23 1 ELIZABETH E KRISHER P01275616 4124715500 2011 2016-02-24 21:20:13Z THOMAS SAUNDERS 800 WATERFRONT DRIVE PITTSBURGH PA 15222 62871066 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. 27 26 255 13000 0 7673 11776246 12947863 3418738 3701171 1364592 686371 1670446 1617340 18230022 18952745 91033 35937 0 0 9355598 9901969 800 2500 1033026 7835425 8481460 17282856 18421866 947166 530879 87074900 83249464 6799375 3651764 80275525 79597700 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 5818387 31775 11078 CONSERVATION PROGRAMS: THESE PROGRAMS APPLY CONSERVATION SCIENCE TO DIRECT PLANNING, LAND PROTECTION, STEWARDSHIP, CONSERVATION AND RESTORATION OF THE REGION'S MOST EXCEPTIONAL NATURAL AREAS. WESTERN PENNSYLVANIA CONSERVANCY HAS HELPED ESTABLISH TEN STATE PARKS, CONSERVED MORE THAN 232,000 ACRES OF NATURAL LANDS, AND PROTECTED OR RESTORED MORE THAN 1,500 MILES OF RIVERS AND STREAMS. 5211927 4162 4930079 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 OVER 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. 4244865 69850 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 140 COMMUNITY GARDENS AND GREENSPACES PLANTED WITH THE HELP OF 13,000 VOLUNTEERS. WESTERN PENNSYLVANIA CONSERVANCY ADMINISTERS THE TREEVITALIZE PROGRAM WHICH HAS PLANTED MORE THAN 13,000 TREES SINCE 2008 THROUGHOUT THE PITTSBURGH REGION. 891282 891282 16166461 1 1 0 1 0 0 1 1 0 1 1 0 1 0 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 82 0 1 255 1 1 1 0 0 0 0 1 1 0 0 0 0 X 27 26 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA VA MD OH NY NJ X CONSTANCE L EADS 4125862364 800 WATERFRONT DRIVE PITTSBURGH PA 15222 CAROLYN RIZZA 2.00 X 0 0 0 CARYLE GLOSSER PHD 2.00 X 0 0 0 DAN B FRANKEL 2.00 X 0 0 0 DANIEL NYDICK 2.00 X 0 0 0 DENNIS FREDERICKS 2.00 X 0 0 0 GARY J SAN JULIAN PHD 2.00 X 0 0 0 GEOFFREY P DUNN MD 2.00 X 0 0 0 H LEWIS LOBDELL 2.00 X 0 0 0 JAMES ABRAHAM 2.00 X 0 0 0 JAMES C FINLEY PHD 2.00 X 0 0 0 JEAN ROBINSON 2.00 X 0 0 0 JOSHUA C WHETZEL III 2.00 X 0 0 0 KENNETH WILLIAM STOUT 2.00 X 0 0 0 MICHAEL POLITE 2.00 X 0 0 0 PAUL J MOONEY 2.00 X 0 0 0 ROBERT MCDOWELL 2.00 X 0 0 0 SAMUEL H SMITH 2.00 X 0 0 0 STEPHEN G ROBINSON 2.00 X 0 0 0 STEPHEN GUINN PHD 2.00 X 0 0 0 TIMOTHY R THYREEN 2.00 X 0 0 0 WILLIAM CONRAD 2.00 X 0 0 0 FRANKLIN BLACKSTONE JR 2.00 X 0 0 0 BARBARA BOTT 2.00 X 0 0 0 JARVIS B CECIL 2.00 X 0 0 0 JOSHUA C WHETZEL JR 2.00 X 0 0 0 CATHERINE BAXTER SMITH 2.00 X 0 0 0 E MICHAEL BOYLE 2.00 X X 0 0 0 SUSAN FITZSIMMONS 2.00 X X 0 0 0 ALEXANDER C SPEYER III 2.00 X X 0 0 0 DAVID E BARENSFELD 2.00 X X 0 0 0 THOMAS SAUNDERS 40.00 X X 228870 0 48495 CYNTHIA CARROW 40.00 X 187737 0 37738 LYNDA WAGGONER 40.00 X 162181 0 21860 CONSTANCE EADS 40.00 X 134510 0 31091 GENEVIEVE MCINTYRE 40.00 X 131121 0 33141 SHAUN FENLON 40.00 X 131874 0 32839 GREG SOCHA 40.00 X 91782 0 16322 NICHOLAS PINIZZOTTO 40.00 X 97362 0 15058 1165437 0 236544 6 0 1 0 EISLER NURSERIES 1031 NEW CASTLE ROAD PO BOX 465 PROSPECT PA 16052 LANDSCAPING SERVICES 776548 LAWN SENSE INC 322 MALL BLVD 168 MONROEVILLE PA 15146 LANDSCAPING SERVICES 356075 CPS CONSTRUCTION GROUP INC 927 ROUTE 910 SUITE 200 CHESWICK PA 15024 BUILDING CONTRACTOR 170094 3 11155 938021 5087905 6910782 50116 12947863 ADMISSIONS/FALLINGWATE 713990 3504898 3504898 OTHER 900099 90812 90812 BARN ACTIVITIES 900099 75502 75502 EDUCATION PROGRAMS 900099 29959 29959 3701171 1145815 1145815 147900 147900 284909 125305 159604 159604 159604 42374491 42833935 -459444 -459444 -459444 2268917 959081 1309836 1309836 18952745 5011007 0 993875 35937 35937 1401981 917235 179470 305276 6063619 5368578 462823 232218 531231 483503 39169 8559 1905138 1639045 152406 113687 13500 8100 4725 675 219625 210380 8089 1156 52500 31500 18375 2625 64237 33917 30320 2500 2500 307843 240114 59263 8466 746536 719062 23412 4062 161857 160755 787 315 1598289 1553351 33435 11503 487072 431432 46796 8844 217342 203454 3568 10320 719699 679699 40000 267996 208990 51630 7376 OUTSIDE SERVICES 2697323 2499689 28825 168809 MISCELLANEOUS 250981 225300 18667 7014 REPAIRS & MAINTENANCE 209038 161408 39588 8042 POSTAGE 195603 99269 1931 94403 272019 255743 9420 6856 18421866 16166461 1222379 1033026 991500 816104 7150926 2666948 2125190 2935500 1939202 2145256 500000 266485 330642 335971 531802 19976997 6189369 13710472 13787628 41776943 40440967 1765017 17013194 19094617 87074900 83249464 1114247 1197272 18637 275126 614584 1102612 5051907 1076754 6799375 3651764 X 53222355 50814922 14806522 16136366 12246648 12646412 80275525 79597700 87074900 83249464 X 530879 -1208704 X 0 1 1 X 1 1 X 7945077 15565507 9084250 11776246 12947963 57319043 7945077 15565507 9084250 11776246 12947963 57319043 11867649 45451394 1504642 1563676 1210768 1412040 1578624 7269750 64588793 16095513 0.70370 0.67140 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 64237 64237 18357629 18421866 1000000 250000 0 0 882757 939883 1000000 1000000 3822640 5733960 59003 61448 64406 64237 249094 220689 234971 250000 250000 955660 1433490 X X X X 163 32507.00 1 2 1 1 3247.00 131368 1 5565719 X X X 0 8663916 399765 -56684 506150 8500847 8218676 185560 739680 480000 8663916 7051166 218316 1294194 345000 8218676 0.00000 0.62000 0.38000 0 0 685000 685000 10189341 3151334 7038007 2814787 1228773 1586014 6287869 1809262 4478607 13787628 FALLINGWATER AND FINE ART COLLECTION 5565719 C LAND CONSERVATION PROJECTS 13528898 C 19094617 CHARITABLE GIFT ANNUITIES PAYABLE 245451 LAND ESCROWS 831303 1076754 18952745 18421866 530879 -1234060 25356 -1208704 -677825 18828428 -124317 -124317 18952745 0 18952745 19506253 1084387 1084387 18421866 0 18421866 EXPLANATION OF CHANGES TO CONSERVATION EASEMENTS: PART II, LINE 3: 2 EASEMENTS WERE MODIFIED. (1) AN EASEMENT IN THE LIGONIER AREA WAS AMENDED DUE TO A PENNDOT BRIDGE PROJECT. IN LIEU OF CONDEMNATION, THE LANDOWNER AND WPC AGREED TO GIVE UP A SMALL PORTION OF THE EASED PROPERTY (0.018 ACRE). ON THAT PORTION ONLY, THE EASEMENT WAS EXTINGUISHED. (2) AN EASEMENT IN ALLEGHENY COUNTY WAS AMENDED TO RESOLVE AN EASEMENT VIOLATION AS A LANDOWNER BUILT A PERMANENT STRUCTURE OUTSIDE THE BUILDING LIMIT. IN EXCHANGE, THE LANDOWNER AGREED TO EXTINGUISH ALL REMAINING BUILDING RIGHTS ON THE PROPERTY. THE SIZE OF THE AREA ENCROACHED UPON (APPROXIMATELY 0.1 ACRE) WAS EXTINGUISHED. DESCRIPTION OF HOW ORGANIZATION REPORTS CONSERVATION EASEMENTS: PART II, LINE 9: THE CONSERVANCY ACQUIRES, PROTECTS AND HOLDS LAND FOR CONSERVATIONS 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 DUE DILIGENCE, SURVEYS, APPRAISALS, LEGAL FEES AND MISCELLANEOUS OTHER ITEMS. GRANTS RECEIVED AS REIMBURSEMENT FOR LAND COSTS REDUCE THE BASIS 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 PURCHASE OF RIGHTS UPON SALE OF LAND, UNDER WHICH A THIRD PARTY MAINTAINS ITS OWNERSHIP OF THE UNDERLYING LAND. THESE EASEMENTS ARE NOT RECORDED IN THE FINANCIAL STATEMENTS. EASEMENTS PURCHASED BY THE CONSERVANCY ARE RECORDED AT COST. 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. 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 150,000 VISITORS A YEAR, THE MUSEUM SERVES AS AN EDUCATIONAL AND CULTURAL INSTITUTION FOR THE INTERNATIONAL COMMUNITY. PART XI, LINE 8 - OTHER ADJUSTMENTS: ADJUSTMENT IN CHARITABLE GIFT ANNUITIES 25,356. PART XII, LINE 2D - OTHER ADJUSTMENTS: ADJUSTMENT IN CHARITABLE GIFT ANNUITIES 25,356. RENTAL EXPENSES 125,306. COST OF GOODS SOLD 959,081. NET UNREALIZED LOSSES ON INVESTMENTS -1,234,060. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 125,306. COST OF GOODS SOLD 959,081. FIN 48: 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. THEREFORE, NO PROVISION FOR INCOME TAXES HAS BEEN PROVIDED. 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. X X X X X 1 DONOR SERVICES GROUP 6715 SUNSET BOULEVARD LOS ANGELES CA 90028 TELEMARKETING 0 21655 36338 -14683 21655 36338 -14683 PA OH NY NJ VA MD 1 X PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, 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 INSURE 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 228180 0 0 0 690 0 33217 0 15278 0 277365 0 0 0 CYNTHIA CARROW 169257 0 0 0 18480 0 24129 0 13609 0 225475 0 0 0 LYNDA WAGGONER 149613 0 0 0 12568 0 20053 0 1807 0 184041 0 0 0 CONSTANCE EADS 133391 0 0 0 1119 0 17579 0 13512 0 165601 0 0 0 GENEVIEVE MCINTYRE 130509 0 0 0 612 0 17953 0 15188 0 164262 0 0 0 SHAUN FENLON 131613 0 0 0 261 0 17659 0 15180 0 164713 0 0 0 X GIFT CARDS 7 250 X MATERIALS 9 4633 X MISCELLANEOUS 41 3483 X LANDSCAPE 21 41750 1 0 1 0 THIRD PARTY USE: PART I, LINE 32B: ADDITIONS TO FALLINGWATER'S COLLECTIONS, WHETHER BY PURCHASE, GIFT, BEQUEST, OR OTHER MEANS, SHALL BE IN ACCORDANCE WITH THE FOLLOWING RULES, AND FIT WITHIN THE GUIDELINES OUTLINED IN FALLINGWATER'S STATEMENT OF PURPOSE: 1. ART AND ARTIFACTS SHALL MEET ONE OF THE FOLLOWING CONDITIONS: A. BE FORMERLY PART OF THE KAUFMANN COLLECTION AT FALLINGWATER; B. BE FORMERLY OWNED BY THE KAUFMANNS' BUT NOT NECESSARILY PART OF THEIR COLLECTION AT FALLINGWATER; C. BE AN EXACT DUPLICATION OF AN OBJECT IN OR FORMERLY IN THE FALLINGWATER COLLECTION; D. BE SIMILAR IN TYPE, STYLE, PERIOD AND MAKER TO OBJECTS KNOWN TO HAVE ORIGINALLY BEEN IN THE COLLECTION AT FALLINGWATER; OR E. BE ASSOCIATED WITH THE LIFE OF THE KAUFMANNS OR THE HISTORY OF BEAR RUN, FALLINGWATER, AND THE SURROUNDING PROPERTY. 2. OBJECTS MAY NOT BE ACQUIRED THAT FALLINGWATER CANNOT PROPERLY CARE FOR, USING CURRENTLY ACCEPTED STANDARDS OF CONSERVATION. 3. ACCESSIONING AND DEACCESSIONING MUST NOT BE GOVERNED BY CURRENT FASHION OR INDIVIDUAL TASTE OF CURATORS. CONSIDERATION MUST BE GIVEN TO THE TEMPORAL NATURE OF AESTHETIC JUDGMENTS AND CHANGING TASTE IN ART HISTORICAL AND AESTHETIC EVALUATIONS. 4.RESPONSIBILITY FOR THE ADMINISTRATION AND CARE OF THE COLLECTIONS SHALL REMAIN WITH THE DIRECTOR OF FALLINGWATER. ALL ACQUISITIONS MUST BE APPROVED BY THE DIRECTOR OF FALLINGWATER. 5. ACQUISITIONS ADDED TO THE PERMANENT COLLECTION SHALL BE PROMPTLY DOCUMENTED AND CARED FOR, AS OUTLINED IN THE COLLECTIONS MANUAL. 6. DEEDS OF GIFT MUST BE SIGNED BY THE DONOR, TRANSFERRING OWNERSHIP OF THE OBJECT TO FALLINGWATER. 7. NO RESTRICTIONS MAY BE MADE BY THE DONOR, ARTIST, OR PREVIOUS OWNER OF AN OBJECT ACQUIRED BY THE MUSEUM. 8. NO ACQUISITION SHALL BE APPRAISED BY A BOARD MEMBER, STAFF MEMBER, OR ANY OTHER PERSON CLOSELY ASSOCIATED WITH FALLINGWATER AND/OR THE COLLECTION. 9. APPRAISALS OF THE BUILDING AND ITS PERMANENT COLLECTION FOR INSURANCE PURPOSES SHALL BE DONE EVERY FIVE YEARS. 10. FALLINGWATER WILL HONOR ALL ACCREDITED REQUESTS FOR RESEARCH OF THE COLLECTIONS, UNDER CONTROLLED CONDITIONS AS APPROVED BY THE CURATOR. 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 ASSISTANT CORPORATE SECRETARY SHALL MAINTAIN A LIST OF ALL BOARD OF DIRECTORS, OFFICERS AND SENIOR ADMINISTRATIVE STAFF TO WHOM THIS POLICY STATEMENT APPLIES. THE ASSISTANT SECRETARY 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, FINANCE/CHIEF FINANCIAL OFFICER; VICE PRESIDENT, FALLINGWATER; VICE PRESIDENT, LAND CONSERVATION; VICE PRESIDENT, INSTITUTIONAL ADVANCEMENT; ASSOCIATE VICE PRESIDENT, SPECIAL PROJECTS/FOREST PROTECTION; AND ASSOCIATE VICE PRESIDENT, WATERSHED AND CONSERVATION SERVICES. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,234,060. ADJUSTMENT IN CHARITABLE GIFT ANNUITIES 25,356. TOTAL TO FORM 990, PART XI, LINE 5: -1,208,704.