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        <ReturnReference>PART I-A, LINE 1:</ReturnReference>
        <Explanation>THE AMERICAN ACADEMY OF DERMATOLOGY ASSOCIATION PAC (AADA PAC OR SKINPAC) SUPPORTED CAMPAIGNS OF CANDIDATES RUNNING FOR FEDERAL OFFICE (U.S. HOUSE OF REPRESENTATIVES AND U.S. SENATE) IN 2010. AADA PAC'S POLITICAL ACTIVITIES INCLUDED, BUT NOT LIMITIED TO, CONTRIBUTIONS TO FEDERAL CANDIDATE PACS, NATIONAL POLITICAL PARTY CAMPAIGNS, CONGRESSIONAL CAMPAIGN COMMITTEES, AND PARTICIPATING IN POLITICAL FUNDARAISING EVENTS FOR FEDERAL CANDIDATES.</Explanation>
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      <RevenueNotRptdOnFinStmt>46377</RevenueNotRptdOnFinStmt>
      <TotalRevenuePerForm990>11709179</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>8920504</TotExpensesEtcAuditedFinclStmt>
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      <ExpensesNotRptdF990>38020</ExpensesNotRptdF990>
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      <ExpensesNotRptdOnFinStmt>46377</ExpensesNotRptdOnFinStmt>
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        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X:</ReturnReference>
        <Explanation>THE ACADEMY'S ADOPTION OF THE INCOME TAX TOPIC REGARDING UNCERTAIN TAX POSITIONS OF GAAPUSA ON JANUARY 1, 2009 HAD NO EFFECT ON ITS FINANCIAL POSITION AS MANAGEMENT BELIEVES THE ACADEMY HAS NO MATERIAL UNRECOGNIZED INCOME TAX BENEFITS, INCLUDING ANY POTENTIAL RISK OF LOSS OF ITS NOT-FOR-PROFIT TAX STATUS. THE ACADEMY WOULD ACCOUNT FOR ANY POTENTIAL INTEREST OR PENALTIES RELATED TO POSSIBLE FUTURE LIABILITIES FOR UNRECOGNIZED INCOME TAX BENEFITS AS INCOME TAX EXPENSE. THE ACADEMY IS NO LONGER SUBJECT TO EXAMINATION BY FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR PERIODS BEFORE 2006. PRIOR TO ADOPTION OF THE INCOME TAX TOPIC, THE ACADEMY ACCOUNTED FOR TAX POSITIONS UNDER A CONTINGENT LOSS MODEL, REQUIRING RECOGNITION OF A TAX LIABILITY WHEN IT WAS BOTH (1) PROBABLE THAT IT HAD BEEN INCURRED AS OF YEAR-END AND (2) THE AMOUNT COULD BE REASONABLY ESTIMATED.</Explanation>
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        <Explanation>INVENTORY COSTS NETTED AGAINST REVENUES 38,020.</Explanation>
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          <BusinessNameLine1>GEORGIA SOCIETY OF DERMATOLOGISTS</BusinessNameLine1>
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        <AddressUS>
          <AddressLine1>6134 POPLAR BLUFF CR</AddressLine1>
          <City>NORCROSS</City>
          <State>GA</State>
          <ZIPCode>30092</ZIPCode>
        </AddressUS>
        <EINOfRecipient>581333683</EINOfRecipient>
        <AmountOfCashGrant>10228</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>MASSACHUSETTS ACADEMY OF DERMATOLOGY</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>167 WASHINGTON ST</AddressLine1>
          <City>NORWELL</City>
          <State>MA</State>
          <ZIPCode>02061</ZIPCode>
        </AddressUS>
        <EINOfRecipient>042551359</EINOfRecipient>
        <AmountOfCashGrant>9120</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>OHIO DERMATOLOGICAL FOUNDATION</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>2110 MARY DRIVE NE</AddressLine1>
          <City>WARREN</City>
          <State>OH</State>
          <ZIPCode>44483</ZIPCode>
        </AddressUS>
        <EINOfRecipient>311242595</EINOfRecipient>
        <AmountOfCashGrant>14328</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>WASHINGTON STATE DERMATOLOGY ASSOCIATION</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>2033 6TH AVENUE STE 1100</AddressLine1>
          <City>SEATTLE</City>
          <State>WA</State>
          <ZIPCode>98121</ZIPCode>
        </AddressUS>
        <EINOfRecipient>943167911</EINOfRecipient>
        <AmountOfCashGrant>11940</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>NEBRASKA DERMATOLOGY SOCIETY INC</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>16120 WEST DODGE RD</AddressLine1>
          <City>OMAHA</City>
          <State>NE</State>
          <ZIPCode>68118</ZIPCode>
        </AddressUS>
        <EINOfRecipient>204263572</EINOfRecipient>
        <AmountOfCashGrant>15920</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>MISSOURI DERMATOLOGICAL SOCIETY</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>315 NICHOLS ROAD</AddressLine1>
          <City>KANSAS CITY</City>
          <State>MO</State>
          <ZIPCode>64112</ZIPCode>
        </AddressUS>
        <EINOfRecipient>263934046</EINOfRecipient>
        <AmountOfCashGrant>7960</AmountOfCashGrant>
        <PurposeOfGrant>CLINICAL RESEARCH</PurposeOfGrant>
      </RecipientTable>
      <TotalNbrOf501C3AndGovtGrants>6</TotalNbrOf501C3AndGovtGrants>
      <TotalNbrOfOtherOrganizations>0</TotalNbrOfOtherOrganizations>
      <Form990ScheduleIPartIV>
        <Identifier>PROCEDURE FOR MONITORING GRANTS IN THE U.S.:</Identifier>
        <ReturnReference>PART I, LINE 2:</ReturnReference>
        <Explanation>SCHEDULE I, PART I, LINE 2: RECIPIENTS OF THE GRANT ARE REQUIRED TO COMPLETE A SURVEY THAT STATES WHAT FIELD IN DERMATOLOGY THE RESIDENT IS ENTERING AND WHERE THE RESIDENT WILL BE PRACTICING, SUCH AS RURAL OR URBAN AREA.</Explanation>
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    </IRS990ScheduleI>
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        <NamePerson>ELIZABETH EDGAR</NamePerson>
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        <NamePerson>ERIK HORN</NamePerson>
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        <NamePerson>ALLISON SCHERER</NamePerson>
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      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 1A</ReturnReference>
        <Explanation>FIRST CLASS IS ALLOWED FOR THE PRESIDENT, SECRETARY-TREASURERS, AND EXECUTIVE DIRECTOR/CEO, BY WRITTEN POLICY, ON FLIGHTS OF THREE HOURS OR MORE. TRAVEL FOR COMPANIONS, BY WRITTEN POLICY, FOR THE PRESIDENT, SECRETARY-TREASURERS, AND EXECUTIVE DIRECTOR/CEO, MAY BE ALLOWED WHEN TRAVELING AS AN OFFICIAL REPRESENTATIVE OF THE ACADEMY FOR WHICH THE EXPECTED LENGTH OF STAY IS THREE DAYS OR LONGER, OR AT WHICH THE SOCIAL ACTIVITIES ARE A STRONG COMPONENT OF THE MEETING. ON OCCASION, RECOGNIZED STAFF RECEIVE GIFT CARDS WITH VALUES RANGING FROM $25-$200, THE VALUE OF THESE CARDS ARE GROSS-UP AND INCLUDED IN THE EMPLOYEES W-2.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 4B</ReturnReference>
        <Explanation>RONALD HENRICHS RECEIVED $144,795 FROM A SECTION 457(F) PLAN.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 6</ReturnReference>
        <Explanation>INTEREST ACCRUED ON THE EXECUTIVE DIRECTORS SERP PLAN IS BASED ON THE QUARTERLY RATE OF RETURN OF THE AAD RESERVE INCOME FUND</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 8</ReturnReference>
        <Explanation>INITIAL CONTRACT EXCEPTION IN FORCE FOR CONTRACT WITH EXECUTIVE DIRECTOR. THE ORGANIZATION FOLLOWS STRINGENT GUIDELINES DESIGNED TO CREATE A REBUTTABLE PRESUMPTION OF REASONABLENESS FOR APPLICABLE COMPENSATION ARRANGEMENTS. SEE SCHEDULE O EXPLANATION APPLICABLE TO PART VI LINE 15 FOR FURTHER EXPLANATION OF THE COMPENSATION PROCESS.</Explanation>
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    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 6</Identifier>
        <Explanation>AADA IS AN ASSOCIATION REPRESENTING APPROXIMATELY 17,000 DERMATOLOGISTS, WHO BECOME MEMBERS OF THE ACADEMY. THE ACADEMY HAS TEN CLASSES OF MEMBERS BUT ONLY FELLOWS AND LIFE AND HONORARY MEMBERS WHO WERE FELLOWS ARE ELIGIBLE TO VOTE AND SERVE IN ANY ELECTIVE OFFICE. MEMBERS ANNUALLY ELECT THE PRESIDENT TO A THREE YEAR TERM AS PRESIDENT ELECT, PRESIDENT, AND PAST PRESIDENT AND VICE-PRESIDENT TO TWO YEAR TERM AS VICE-PRESIDENT ELECT AND VICE PRESIDENT. ADDITIONALLY, MEMBERS ALSO ELECT FOUR DIRECTORS TO SERVE A FOUR YEAR TERM. PROPOSED AMENDMENTS TO THE BY-LAWS BY THE BOARD OF DIRECTORS ARE SUBJECT TO APPROVAL BY THE MEMBERSHIP.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 7A</Identifier>
        <Explanation>SEE EXPLANATION OF LINE 6 ABOVE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 7B</Identifier>
        <Explanation>SEE EXPLANATION OF LINE 6 ABOVE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION B, LINE 11</Identifier>
        <Explanation>THE BOARD RETAINED THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S FORM 990. MANAGEMENT REVIEWS THE COMPLETED FORM 990 AND PROVIDES A FULL COPY TO THE BOARD OF DIRECTORS' PRIOR TO FILING. THE RETURN IS POSTED ON A SECURED WEB SITE FOR THEIR REVIEW. BOARD MEMBERS ARE GIVEN A REASONABLE PERIOD OF TIME TO CONTACT EITHER MANAGEMENT OR THE CPA FIRM WITH ANY QUESTIONS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>OFFICERS, DIRECTORS, COMMITTEE MEMBERS, EDITORS, SPEAKERS, AND KEY EMPLOYEES ARE ANNUALLY REQUIRED TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE STATEMENT AS A PRECURSOR TO THEIR SERVICE TO THE ORGANIZATION. DETAILED BELOW IS THE DISCLOSURE PROCESS: DISCLOSURE PROCESS 1. THE INDIVIDUALS COVERED ARE REQUIRED TO ELECTRONICALLY SUBMIT A DISCLOSURE STATEMENT ACKNOWLEDGING A DUTY TO SERVE THE ACADEMY IN GOOD FAITH AND WITH UNDIVIDED LOYALTY. THESE INDIVIDUALS ARE TO DESCRIBE ALL PERSONAL OR PROFESSIONAL CIRCUMSTANCES WHICH MIGHT CREATE A POTENTIAL CONFLICT OF INTEREST WITH THE INTERESTS OF THE ACADEMY. ACCOMPANYING THIS POLICY STATEMENT AS EXHIBIT A IS A SAMPLE COPY OF SUCH A DISCLOSURE STATEMENT. MEMBERS WHO DO NOT SUBMIT A YEARLY CONFLICT OF INTEREST DISCLOSURE, MAY LOSE THE RIGHT TO HOLD OFFICE AND, EXCEPT IN UNUSUAL CIRCUMSTANCES APPROVED IN ADVANCE BY THE BOARD OF DIRECTORS, TO PARTICIPATE IN ACADEMY PROGRAMS AS A FACULTY MEMBER, PRESENTER, OR SCIENTIFIC EXHIBIT CONTRIBUTOR, OR PARTICIPATE ON A COUNCIL, COMMITTEE OR TASK FORCE. REVIEW PROCESS 1.OFFICERS, DIRECTORS, CHAIRMEN AND MEMBERS OF COUNCILS, COMMITTEES, AND TASK FORCES, THE EDITORS OF JAAD AND SENIOR STAFF WILL SUBMIT THEIR STATEMENTS DIRECTLY ONTO THE ACADEMY WEBSITE. 2.THE STATEMENTS ARE PROVIDED AT EVERY COMMITTEE MEETING TO ALL COMMITTEE MEMBERS. IF NECESSARY, THE CHAIRMEN WILL FORWARD THOSE THAT APPEAR TO HAVE CONFLICTS WHICH COULD PREVENT THEM FROM SERVING TO THE SECRETARY-TREASURER WITH ANY RELEVANT OBSERVATIONS OR RECOMMENDATIONS. 3.THE SECRETARY-TREASURER WILL REVIEW ALL STATEMENTS SUBMITTED FOR FURTHER REVIEW AND IF NECESSARY WILL FORWARD TO THE ETHICS COMMITTEE, WHILE AT THE SAME TIME INFORMING THE BOARD OF DIRECTORS OF ANY CONFLICTS THAT APPEAR ESPECIALLY SIGNIFICANT. 4.THE ETHICS COMMITTEE WILL REVIEW AND INITIATE ANY REQUEST FOR FURTHER INFORMATION AND PROMPTLY PREPARE A REPORT TO THE SECRETARY-TREASURER REGARDING ITS FINDINGS. THE SECRETARY-TREASURER WILL REPORT TO THE BOARD OF DIRECTORS ON ANY ITEMS FOUND BY THE COMMITTEE TO BE OF SPECIAL SIGNIFICANCE. ALL DISCLOSURE STATEMENTS WILL BE RETAINED ON THE ACADEMY SERVER. THEY WILL BE AVAILABLE ELECTRONICALLY FOR REVIEW BY MEMBERS OF THE BOARD OF DIRECTORS AND STAFF, AND UPON REQUEST BY ACADEMY MEMBERS. THEY WILL BE AVAILABLE TO THE COUNCIL, COMMITTEE AND TASK FORCE MEMBERS TO REVIEW PRIOR TO ALL CONFERENCE CALLS AND MEETINGS. ALL MEMBERS FILING AN ANNUAL DISCLOSURE STATEMENT WILL BE OBLIGATED TO PROMPTLY UPDATE ANY CHANGE IN CIRCUMSTANCES WHICH MIGHT GIVE RISE TO AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST. MEMBERS ALSO SHOULD VERBALLY DISCLOSE AND UPDATE THEIR CONFLICT OF INTEREST FORM FOR ANY RELEVANT CONFLICTS THAT MAY OCCUR DURING A CONFERENCE CALL OR MEETING THAT DO NOT ALREADY APPEAR ON THE DISCLOSURE FORM. CHAIRMEN OF COUNCILS, COMMITTEE AND TASK FORCES ARE REQUIRED TO INCLUDE IN THE SUMMATION REPORT ANY CONFLICT OF INTERESTS THAT HAVE BEEN EXPRESSED BY A MEMBER DURING A MEETING OR CONFERENCE CALL.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15</ReturnReference>
        <Explanation>THE COMPETITIVE MARKET IS TYPICALLY DEFINED IN TERMS OF REVENUE AND COMPANY SIZE. TO DEFINE COMPETITIVE MARKET THE ACADEMY CONSIDERS THE FOLLOWING AS VALID RESOURCES FOR COMPARABLE MARKET DATA: COMPANIES WITH SIMILAR OPERATING BUDGET; COMPANIES WITH ROUGHLY SAME NUMBER OF EMPLOYEES; AND COMPANIES WHO OPERATE UNDER LIKE CIRCUMSTANCES. COMPENSATION DECISIONS ARE APPROVED BY INDEPENDENT OFFICERS OF THE BOARD OF DIRECTORS. THE DECISIONS ARE BASED ON ANALYSIS OF COMPARABLE MARKET DATA. OTHER OFFICERS OR KEY EMPLOYEES OF THE ORGANIZATION: COMPENSATION OF KEY EMPLOYEES OF THE ORGANIZATION IS DETERMINED IN THE SAME FASHION OF THE EXECUTIVE DIRECTOR ALTHOUGH THEIR COMPENSATION DECISIONS ARE APPROVED BY THE EXECUTIVE DIRECTOR.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE ACADEMY'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE ON THE ACADEMY'S WEB SITE FOR THE MEMBERSHIP AND PUBLIC TO VIEW. THE ANNUAL FINANCIAL STATEMENTS ARE PUBLISHED IN DERMATOLOGY WORLD, THE ACADEMY'S MAGAZINE, AND ARE AVAILABLE ON GUIDESTAR.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>NET UNREALIZED GAINS ON INVESTMENTS: 8,556. TRANSFER TO AAD -1,586,185. OFFICER COMPENSATION ALLOCATED TO AADA ON FINANCIAL STATEMENTS -875,770. TOTAL TO FORM 990, PART XI, LINE 5: -2,453,399.</Explanation>
      </GeneralExplanation>
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          <City>SCHAUMBURG</City>
          <State>IL</State>
          <ZIPCode>60173</ZIPCode>
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        <EIN>410793046</EIN>
        <PrimaryActivities>MEMBERSHIP ASSOCIATION FOR DERMATOLOGISTS.</PrimaryActivities>
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          <AddressLine1>1445 NEW YORK AVENUE NW</AddressLine1>
          <City>WASHINGTON</City>
          <State>DC</State>
          <ZIPCode>20005</ZIPCode>
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        <PrimaryActivities>POLITICAL ACTION COMMITTEE SUPPORTING DERMATOLOGISTS</PrimaryActivities>
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