2011-05-13T18:02:57-05:00 2010-12-31 EIDE BAILLY LLP 1850 N CENTRAL AVENUE SUITE 400 PHOENIX AZ 850044527 990 2010-01-01 860197576 FRANK LLOYD WRIGHT FOUNDATION FRAN 4808602700 PO BOX 4430 SCOTTSDALE AZ 852614430 LISA MURPHY 4808602700 2011-05-11 1 JOSHUA P HAYES 6022645844 2011-05-03 2010 2016-03-07 17:11:31Z ANNE MALEY PO BOX 4430 SCOTTSDALE AZ 852614430 8954119 0 X WWW.FRANKLLOYDWRIGHT.ORG X 1965 AZ EDUCATE AND ENGAGE DIVERSE AUDIENCES, INCLUDING SCHOLARS, ARCHITECTS, STUDENTS, SCIENTISTS AND THE GENERAL PUBLIC THROUGH PROGRAMS THAT ENCOURAGE INNOVATIVE THINKING ABOUT THE RELATIONSHIPS BETWEEN ARCHITECTURE AND DESIGN AND THE NATURAL ENVIRONMENT, AND INSPIRE A QUEST FOR BEAUTY, BALANCE AND HARMONY IN THE CREATION OF BUILDINGS AND SPACES THAT ENRICH DAILY LIFE. 12 11 115 66 0 0 1019901 984970 3941900 4895381 48591 -90138 881073 996570 5891465 6786783 0 0 0 0 2576228 2711074 105034 0 495851 4849125 3502515 7530387 6213589 -1638922 573194 11446991 11733424 3300127 2692015 8146864 9041409 X EDUCATE AND ENGAGE DIVERSE AUDIENCES, INCLUDING SCHOLARS, ARCHITECTS, STUDENTS, SCIENTISTS AND THE GENERAL PUBLIC THROUGH PROGRAMS THAT ENCOURAGE INNOVATIVE THINKING ABOUT THE RELATIONSHIPS BETWEEN ARCHITECTURE AND DESIGN AND THE NATURAL ENVIRONMENT, AND INSPIRE A QUEST FOR BEAUTY, BALANCE AND HARMONY IN THE CREATION OF BUILDINGS AND SPACES THAT ENRICH DAILY LIFE. 0 0 1185215 0 BUILDING PRESERVATION - THE FRANK LLOYD WRIGHT FOUNDATION INVESTS CAPITAL AND CONSIDERABLE EFFORT IN ORDER TO PROTECT, MAINTAIN, AND RESTORE THE ARCHITECTURALLY HISTORIC STRUCTURES AND SPACES THAT COMPRISE ITS CAMPUSES IN BOTH SCOTTSDALE, ARIZONA AND SPRING GREEN WISCONSIN. 750281 686506 FRANK LLOYD WRIGHT FOUNDATION SCHOOL OF ARCHITECTURE - THE FOUNDATION OFFERS A FULLY ACCREDITED BACHELORS AND MASTERS DEGREE PROGRAM IN ARCHITECTURE TO APPROXIMATELY 30 STUDENTS ANNUALLY. 537908 2739617 VISITATION PROGRAM - THE FRANK LLOYD WRIGHT FOUNDATION OFFERS TOURS AND EDUCATIONAL OUTREACH PROGRAMS TO INCREASE PUBLIC AWARENESS OF THE WORKS OF FRANK LLOYD WRIGHT AND THE FIELD OF ARCHITECTURE. OVER 100,000 VISIT THE HISTORIC SCOTTSDALE, ARIZONA LANDMARK ANNUALLY. 1159615 2332806 OTHER PROGRAM SERVICES INCLUDING: PRODUCT DEVELOPMENT/LICENSING, BOOKSTORE AND ARCHIVES. 1159615 2332806 3633019 1 1 0 0 0 0 1 0 1 1 0 0 1 0 1 1 0 1 0 1 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 1 48 0 1 115 1 0 0 0 0 0 0 0 0 0 0 X 12 11 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 0 1 1 0 AZ X X LISA MURPHY 4806275384 PO BOX 4430 SCOTTSDALE AZ 85261 DANIEL MARQUARDT 10.00 X X 0 0 0 JEFFREY GRIP 10.00 X X 0 0 0 ARNOLD ROY 10.00 X X 18138 0 0 FREDERICK P STRATTON JR 10.00 X X 0 0 0 DAVID MOHNEY 1.50 X 0 0 0 STEVE ZYLSTRA 1.50 X 0 0 0 GERALD MOROSCO 1.50 X 0 0 0 FRANK OWINGS JR 1.50 X 0 0 0 SANDRA SHANE-DUBOW 1.50 X 0 0 0 DONALD FAIRWEATHER 1.50 X 0 0 0 CLIFF CURRY 1.50 X 0 0 0 JOHN CUMMERFORD 1.50 X 0 0 0 ANNE MALEY 40.00 X 138841 0 0 CRAIG BARTH JAN 2010 40.00 X 7659 0 237 DAN NESBITT FEB 2010 - MAY 2010 40.00 X 60892 0 0 LISA MURPHY AS OF JUNE 2010 40.00 X 61788 0 2609 287318 0 2846 1 0 0 1 HOLME ROBERTS & OWEN LLP 1700 LINCOLN STREET DENVER CO 80203 ATTORNEY SERVICES 235662 ANNE MALEY CONSULTING LLC PO BOX 41864 TUCSON AZ 85717 INTERIM CEO/PRESIDENT 138841 MICROSYMPLEX 1202 E MARYLAND PHOENIX AZ 85014 INFORMATION TECHNOLOGY 100601 3 30538 954432 248721 984970 VISITATION PROGRAM 900099 2739617 2739617 LICENSING PROGRAM 900099 1310525 1310525 ARCHITECTURAL SCHOOL T 611110 686506 686506 ARCHIVE AND EXHIBITION 900099 153349 153349 OTHER INCOME 900099 5384 5384 4895381 28861 28861 128785 128785 128785 128785 1326926 1439521 6404 -112595 -6404 -118999 -118999 8922 30538 4685 4237 4237 1580274 716726 863548 863548 6786783 5758929 0 42884 134441 134441 2268940 1337561 667010 264369 17 17 131072 66674 47008 17390 176604 95155 63212 18237 342593 54436 288157 28775 28775 328150 172686 150907 4557 112471 108434 84 3953 391800 194747 64124 132929 44480 17763 16377 10340 106860 106860 510983 489148 21835 74954 52446 19948 2560 73745 58402 9727 5616 37439 37439 314689 314689 170287 170287 REPAIRS & MAINTENANCE 206739 206483 256 LEGAL SETTLEMENT 199569 199569 FOOD & BEVERAGE 135684 21345 114339 LICENSES, CHARGES & FEE 132077 108646 16840 6591 RECRUITING 78063 78063 213157 27975 155873 29309 6213589 3633019 2084719 495851 336235 652807 56780 56962 748907 782690 359948 456202 127918 73773 12485088 5691275 5907611 6793813 1384772 360268 2524820 2556909 11446991 11733424 2181220 1259795 605915 655376 123256 512992 653588 3300127 2692015 X 7081385 8027302 955237 902865 110242 111242 8146864 9041409 11446991 11733424 X 573194 321351 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2556909 X X X X 0 1151438 119290 8296 178958 1100066 1163249 67857 18021 97689 1151438 1171786 92792 -24464 76865 1163249 0.07810 0.10120 0.82070 0 0 870573 870573 8050188 3712450 4337738 1881665 1649767 231898 1682662 329058 1353604 6793813 ARCHIVE, ART OBJECTS AND DRAWING LIBRARY 2556909 2556909 ANNUITY CONTRACT 653588 653588 6786783 6213589 573194 163505 157846 321351 894545 7577789 163505 11231 723130 897866 6679923 106860 106860 6786783 6841090 11231 723130 734361 6106729 106860 106860 6213589 PART III, LINE 4: THE COLLECTIONS ARE HELD IN A PUBLIC TRUST, MAKING THEM ACCESSIBLE TO THE PUBLIC FOR RESEARCH, EXHIBITION, AND PUBLICATION. THE FOUNDATION PROVIDES ACCESS TO THE COLLECTION FOR RESEARCH THREE DAYS PER WEEK, WITHOUT CHARGE. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE FOUNDATION'S ENDOWMENT CONSISTS OF 61 DONOR-RESTRICTED FUNDS AND ONE BOARD-DESIGNATED FUND. AS REQUIRED BY GAAP, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS, CONSIDERING THE LAWS OF THE STATE FOR ENDOWMENT MANAGEMENT. IN ARIZONA, THOSE LAWS ARE FOUND IN ARIZONA REVISED STATUTES SECTIONS 10-11801 THROUGH 10-11805. THE FOUNDATION'S ENDOWMENT ASSETS ARE COMPRISED OF FOUR MAJOR CATEGORIES AND PURPOSES: ARCHIVES AND DRAWING RESTORATION, ARCHITECTURAL SCHOOL SCHOLARSHIPS AND PROJECTS, ESTATE RESTORATION AND OTHER PROJECTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE FINANCIAL ACCOUNTING STANDARDS BOARD ISSUED NEW GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE FOUNDATION ADOPTED THIS NEW GUIDANCE FOR THE YEAR ENDED DECEMBER 31, 2009. 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 THIS GUIDANCE. THE FOUNDATION IS NO LONGER SUBJECT TO U.S. FEDERAL TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2007 AND STATE EXAMINATIONS FOR YEARS BEFORE 2006. AS OF DECEMBER 31, 2010 AND 2009, THE FOUNDATION HAS ADDRESSED UNCERTAINTY IN ITS INCOME TAX POSITIONS UNDER THIS NEW GUIDANCE AND DETERMINED THERE ARE NO UNRECOGNIZED/DERECOGNIZED TAX BENEFITS REQUIRING AN ACCRUAL. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS INCLUDED IN EXPENSES FOR FINANCIAL STATEMENTS 6,404. COGS INCLUDED IN EXPENSES FOR FINANCIAL STATEMENTS 716,726. PART XII, LINE 4B - OTHER ADJUSTMENTS: ROYALTY FEES NETTED WITH REVENUE FOR FINANCIAL STATEMENTS 106,860. PART XIII, LINE 2D - OTHER ADJUSTMENTS: COGS INCLUDED IN EXPENSES FOR FINANCIAL STATEMENTS 716,726. LOSS ON DISPOSAL OF ASSETS INCLUDED IN EXPENSES FOR FINANCIAL STATEMENTS 6,404. PART XIII, LINE 4B - OTHER ADJUSTMENTS: ROYALTY FEES NETTED WITH REVENUE FOR FINANCIAL STATEMENTS 106,860. PART XI, LINE 7: MANAGEMENT DETERMINED THAT THE FOUNDATION DID NOT PROPERLY ACCOUNT FOR CERTAIN BUILDING AND LAND IMPROVEMENTS ON WISCONSIN TALIESIN PROPERTY FOR THE YEAR ENDED DECEMBER 31, 2009. THESE BUILDINGS AND LAND IMPROVEMENTS WERE ORIGINALLY PAID FOR BY TALIESIN PRESERVATION INC. (TPI), A TAX EXEMPT ORGANIZATION. UPON COMPLETION OF THE CONSTRUCTION, TPI DONATED THE BUILDING AND LAND IMPROVEMENTS TO THE FOUNDATION. IN ADDITION, MANAGEMENT DETERMINED THERE WAS AN ERROR IN THE CALCULATION OF THE ANNUITY OBLIGATION. ADJUSTMENTS WERE MADE IN THE AUDITED FINANCIAL STATEMENTS TO BEGINNING NET ASSETS AS OF JANUARY 1, 2010. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 EXPLANATION OF NONDISCRIMINATORY POLICY PUBLICATION SCHEDULE E, PART I, LINE 3 THE FRANK LLOYD WRIGHT FOUNDATION SATISFIES THE PUBLICITY REQUIREMENT OF SECTION 4.02(1)(A) OF IRC REV. PROC 75-50 BY COMPLYING WITH SECTION 4.02 OF SUCH REV. PROC. AS IS PERMITTED BY 4.03(2)(B) THEREOF. THE FOUNDATION'S RACIALLY NONDISCRIMINATION INFORMATION BULLETINS, ETC. DEALING WITH STUDENT ADMISSIONS, PROGRAMS, AND SCHOLARSHIPS, READS AS FOLLOWS: NOTICE OF NONDISCRIMINATORY POLICY AS TO STUDENTS: THE FRANK LLOYD WRIGHT SCHOOL OF ARCHITECTURE ADMITS STUDENTS OF ANY RACE, COLOR, NATIONAL AND ETHNIC ORIGIN TO ALL THE RIGHTS, PRIVILEGES, PROGRAMS AND ACTIVITIES GENERALLY ACCORDED OR MADE AVAILABLE TO STUDENTS OF THE SCHOOL. IT DOES NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, SEX, NATIONAL POLICIES, ADMISSIONS POLICIES, SCHOLARSHIPS AND LOAN PROGRAMS AND ATHLETIC AND OTHER SCHOOL ADMINISTRATIVE PROGRAMS. ADDITIONALLY, THE FOUNDATION, PRIOR TO ITS ORGANIZATION AS A 501(C)(3) ORGANIZATION EFFECTIVE JULY 1, 1983, MAINTAINED A RACIALLY NONDISCRIMINATORY POLICY,(CONTINUED BELOW) EXPLANATION OF GOVERNMENT FINANCIAL ASSISTANCE SCHEDULE E, PART I, LINE 6 THE SCHOOL RECEIVED FEDERAL STUDENT FINANCIAL AID TITLE IV MONIES THROUGH THE STUDENTS. CONTINUATION OF NONDISCRIMINATION POLICY: FORM 990, SCH E, PART II WHICH ENABLED IT TO QUALIFY FOR FEDERAL CONTRACTS AND PURCHASE ORDERS GOVERNED BY THE EQUAL OPPORTUNITY EMPLOYMENT LAWS, WITH AGENCIES SUCH AS THE U.S. POSTAL SERVICE, GENERAL SERVICES ADMINISTRATION, CORPS OF ENGINEERS, DEPARTMENT OF THE ARMY, AND THE BUREAU OF RECLAMATION. EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES 6 LICENSING CONTRACTS 0 EUROPE 0 0 PROGRAM SERVICES 3 LICENSING CONTRACTS 0 0 0 0 0 0 0 0 0 0 0 0 0 HOUSE CONCERT SERIES 39460 30538 8922 1035 2150 1500 39460 30538 8922 1035 2150 1500 4685 4237 X X X X 0 0 0 0 0 0 0 0 0 ANNE MALEY 138841 0 0 0 0 0 0 0 0 0 138841 0 0 0 SUPPLEMENTAL INFORMATION PART III SCH J, PART I, LINE 3 - ALSO FORM 990, PART VII, SECTION A, LINE 5: ANNE MALEY RECEIVED COMPENSATION IN THE AMOUNT OF $138,841 FROM ANNE MALEY CONSULTING LLC, AN UNRELATED ORGANIZTION, FOR SERVICES RENDERED TO THE ORGANZATION. ANNE MALEY CONSULTING LLC COMPANY IS OWNED BY OFFICER OF THE ORGANIZATION 138841 PAYMENT FOR INTERIM CEO SERVICES 0 X EQUIPMENT & BOOKS 12 15530 FMV X BUILDING IMPROVEMENTS 10 233191 FMV 0 0 1 0 FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIRMAN, VICE CHAIR, TREASURER AND SECRETARY AS WELL AS THE PRESIDENT/CEO. THEY HAVE THE ABILITY TO GIVE DIRECTIONS TO STAFF, MAKE DECISIONS FOR THE ENTIRE BOARD AND MAY ENTER INTO CONTRACTS OR MAKE AGREEMENTS, IF NEEDED. IN PRACTICE, THE ENTIRE BOARD WILL BE CALLED FOR MATERIAL TRANSACTIONS. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS CHANGED TO STATE THAT ANY PERSON RECEIVING COMPENSATION FROM THE FRANK LLOYD WRIGHT FOUNDATION IS NO LONGER ABLE TO SERVE AS A BOARD MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT OF THE 990 AND RELATED SCHEDULES WAS EMAILED TO ALL MEMBERS OF THE FINANCE COMMITTEE FOR REVIEW. UPON CONFIRMATION THAT THE COMMITTEE DID NOT RECOMMEND ANY FURTHER CHANGES, THE RETURN IS PROVIDED TO THE GOVERNING BODY PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION'S CONFLICT OF INTEREST POLICY MUST BE CONSULTED AND SATISFIED PRIOR TO ENTERING INTO ANY TRANSACTION OR ARRANGEMENT COVERED BY SUCH POLICY. THE TRUSTEES AND OFFICERS OF THE FOUNDATION MUST ANNUALLY ACKNOWLEDGE SUCH POLICY CONSISTENT WITH THE PROVISIONS OF SUCH POLICY. POTENTIAL CONFLICTS ARE REVIEWED BY THE NON-CONFLICTED TRUSTEES OR COMMITTEE MEMBERS AND THEY SHALL DECIDE IF A CONFLICT EXISTS. IF A CONFLICT IS DETERMINED TO EXIST THE FOUNDATION WILL EXPLORE CONFLICT-FREE OPTIONS AND IF SUCH OPTIONS ARE FEASIBLE THEN THE DISINTERESTED TRUSTEES VOTE ON WHETHER OR NOT TO ENTER INTO THE CONFLICTED TRANSACTION OR ARRANGEMENT. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE FOUNDATION'S PRESIDENT AND CEO, AS WELL AS OTHER CORPORATE OFFICERS, IS RECOMMENDED BY THE OUTSIDE FIRM RESPONSIBLE FOR THE RECRUITMENT PROCESS, AND IS ULTIMATELY RATIFIED AND APPROVED BY THE BOARD OF TRUSTEES. THE LATTER BODY INCLUDES A PRESIDENTIAL SEARCH COMMITTEE WHICH MEETS REGULARLY DURING THE HIRING PROCESS OF A NEW PRESIDENT AND CEO AND WHO DEVOTES SUBSTANTIAL TIME AND CONSIDERATION TO THE DECISION. FOR ALL SENIOR MANAGEMENT POSITIONS, THE FOUNDATION CONSULTS MARKET SURVEYS, AND EMPLOYS SLOTTING TECHNIQUES AND COMPARABILITY ANALYSIS IN THE DETERMINATION OF APPROPRIATE COMPENSATION. THIS PROCESS WAS LAST TAKEN IN 2010. FORM 990, PART VI, SECTION C, LINE 19 THE FOUNDATION MAINTAINS A COPY OF ITS FORM 990 ON ITS OWN WEBSITE (WWW.FRANKLLOYDWRIGHT.ORG) FOR A PERIOD OF TIME AFTER FILING. THE RETURN IS AVAILABLE UPON REQUEST FROM THE FINANCE DEPARTMENT. IN ADDITION, THE FOUNDATION'S ANNUAL REPORT IS POSTED ON THE FOUNDATION'S WEBSITE AND INCLUDES FINANCIAL INFORMATION. THE WEBSITE ALSO INCLUDES THE FOUNDATION'S MISSION AND VISION STATEMENT, AND LISTINGS OF THE BOARD OF TRUSTEES. ALL GOVERNING, TAXATION AND FINANCIAL DOCUMENTS, REQUIRED TO BE MADE PUBLIC, ARE AVAILABLE UPON WRITTEN, EMAILED, OR TELEPHONE REQUEST, OR, IF REQUESTED IN PERSON, AT THE COMPANY'S HEADQUARTERS IN SCOTTSDALE, ARIZONA. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 163,505. PRIOR PERIOD ADJUSTMENTS: 157,846. TOTAL TO FORM 990, PART XI, LINE 5: 321,351.