2011-11-01T10:53:39-05:00 2010-12-31 LARSONALLEN LLP 2900 SOUTH QUINCY ST SUITE 150 ARLINGTON VA 22206 990 2010-01-01 526043929 AIR FORCE ASSOCIATION AIRF 7032475800 1501 LEE HIGHWAY NO 400 ARLINGTON VA 222091198 DAVID BUCKWALTER 7032475800 2011-10-27 1 ANDREW SMITH 7039985100 2010 2016-03-07 17:11:31Z MICHAEL DUNN 1501 LEE HIGHWAY NO 400 ARLINGTON VA 222091198 17720416 0 X WWW.AFA.ORG X 1956 VA PROMOTE AIR FORCE AIRPOWER AND EDUCATE THE PUBLIC. 19 19 72 25 1475737 0 1528160 2786077 7895018 8718796 180110 797506 122500 89244 9725788 12391623 343058 385220 0 0 5250783 5612878 79711 45604 638462 6693003 6976811 12366555 13020513 -2640767 -628890 21943568 24303012 13696578 16657571 8246990 7645441 X THE AIR FORCE ASSOCIATION (AFA) IS AN INDEPENDENT, NONPROFIT, CIVILIAN EDUCATION ORGANIZATION PROMOTING PUBLIC UNDERSTANDING OF AEROSPACE POWER AND THE PIVOTAL ROLE IT PLAYS IN THE SECURITY OF THE NATION. AFA PUBLISHES AIR FORCE MAGAZINE, CONDUCTS NATIONAL SYMPOSIA AND DISSEMINATES INFORMATION THROUGH OUTREACH PROGRAMS. IT SPONSORS PROFESSIONAL DEVELOPMENT SEMINARS AND RECOGNIZES EXCELLENCE IN THE EDUCATION AND AEROSPACE FIELDS THROUGH NATIONAL AWARDS PROGRAMS. AFA PRESENTS SCHOLARSHIPS AND GRANTS TO AIR FORCE ACTIVE DUTY, AIR NATIONAL GUARD AND AIR FORCE RESERVE MEMBERS AND THEIR DEPENDENTS; AND AWARDS EDUCATOR GRANTS TO PROMOTE SCIENCE AND MATH EDUCATION AT THE ELEMENTARY AND SECONDARY SCHOOL LEVEL. ADDITIONALLY, AIR FORCE ASSOCIATION PUBLISHES A WIDE RANGE OF MATERIALS ON WWW.AFA.ORG. 0 0 2743059 1146820 BRIEFINGS & SYMPOSIAAIR FORCE ASSOCIATION SPONSORS COMPREHENSIVE BRIEFINGS BY KEY AIR FORCE AND DOD LEADERS AT NATIONAL SYMPOSIA ACROSS THE COUNTRY. THESE SYMPOSIA ARE KEYED TO TOPICAL AEROSPACE AND DEFENSE ISSUES. THE SCHEDULE FOR 2010 INCLUDED THE AIR & SPACE CONFERENCE AND TECHNOLOGY EXPOSITION IN WASHINGTON, D.C. (SEPTEMBER 2010); A NATIONAL SYMPOSIUM IN LOS ANGELES, CA (NOVEMBER 2010); AND THE AIR WARFARE SYMPOSIUM IN ORLANDO, FL (FEBRUARY 2010). THE ASSOCIATION SPONSORS THE ANNUAL AIR FORCE BALL IN LOS ANGELES, AND SEVERAL OTHER EVENTS, TO RAISE MONEY FOR ITS EDUCATIONAL PROGRAMS AND AIR FORCE CHARITIES. AIR FORCE ASSOCIATION ALSO SUPPORTS THE OUTSTANDING SQUADRON DINNER WHICH HONORS THE AIR FORCE ACADEMY'S TOP CADET SQUADRON. AT ITS AIR & SPACE CONFERENCE, AIR FORCE ASSOCIATION HOSTS A DINNER FOR THE AIR FORCE'S TWELVE OUTSTANDING AIRMEN OF THE YEAR. AIR FORCE ASSOCIATION ALSO CONDUCTS AN EXTENSIVE ANNUAL AWARDS PROGRAM TO HONOR TOP AIR FORCE PROFESSIONALS IN KEY CAREER FIELDS. 4059369 318197 AIR FORCE MAGAZINE - EACH MONTH, AIR FORCE ASSOCIATION PUBLISHES AIR FORCE MAGAZINE, A HIGHLY REGARDED AEROSPACE JOURNAL THAT REACHES THE DESKS OF THOSE IN THE HIGHEST LEVEL OF GOVERNMENT, INDUSTRY, DEFENSE, BUSINESS, ACADEMIA, AND THE MEDIA. IT IS READ FOR ITS AUTHENTICITY, ACCURACY AND INVESTIGATIVE SPIRIT IN REPORTING AEROSPACE AND DEFENSE MATTERS. THE CURRENT MONTHLY CIRCULATION IS 113,777. AIR FORCE ASSOCIATION PUBLISHES SEVERAL WIDELY DISTRIBUTED NEWSLETTERS: "NEWSLINE", WHICH CONSOLIDATES THE ADMINISTRATIVE AND OPERATIONAL NEWS FROM AIR FORCE ASSOCIATION HEADQUARTERS TO AIR FORCE ASSOCIATION FIELD LEADERS; AND THE "VISIONS" NEWSLETTER, WHICH HIGHLIGHTS SUBJECTS AND EVENTS THAT ARE OF INTEREST TO AEROSPACE-ORIENTED CLASSROOMS. THE ASSOCIATION ALSO PUBLISHES ITS ANNUAL STATEMENT OF POLICY AND TOP ISSUES AND, PERIODICALLY, ISSUES BRIEFS AND SPECIAL REPORTS THAT ARE WIDELY DISTRIBUTED ON CAPITOL HILL, TO THE MEDIA, AND THROUGHOUT AIR FORCE ASSOCIATION'S GRASSROOTS NETWORK. 2138754 2428143 MEMBERSHIP - AIR FORCE ASSOCIATION IS A PROFESSIONAL ORGANIZATION THAT REPRESENTS THE ENTIRE AIR FORCE FAMILY - ENLISTED, OFFICER, ACTIVE DUTY AND RETIRED, GUARD, RESERVE AND CIVILIAN. OUR MISSION IS TO EDUCATE THE PUBLIC ON THE IMPORTANCE OF AEROSPACE POWER, ADVOCATE FOR A STRONG NATIONAL DEFENSE, AND TAKE CARE OF OUR OWN. THE GENERAL BILLY MITCHELL INSTITUTE PROMOTES AIR POWER INITIATIVES THROUGH SPECIAL MEDIA PRESENTATIONS AND ADVOCACY EFFORTS. OUR AEROSPACE EDUCATION INITIATIVES RECOGNIZE THOSE WHO TEACH AMERICA'S YOUTH AND REACH MORE THAN 250,000 ELEMENTARY AND MIDDLE SCHOOL STUDENTS WITH MATH AND SCIENCE ACTIVITIES. WE ALSO PROVIDE GRANTS TO FURTHER AEROSPACE EDUCATION AND OFFER PROFESSIONAL DEVELOPMENT PROGRAMS. THROUGH OUR OUTREACH PROGRAMS AIR FORCE ASSOCIATION RECOGNIZES EXCELLENCE WITH A VARIETY OF NATIONAL AEROSPACE AWARDS AND IS RESPONSIBLE FOR THE CREATION OF THE AIR FORCE OUTSTANDING AIRMEN PROGRAM. 725586 FIELD SERVICE -AIR FORCE ASSOCIATION IS LED BY VOLUNTEER LEADERS AT THE NATIONAL, STATE AND LOCAL LEVELS. AIR FORCE ASSOCIATION'S STATE ORGANIZATIONS AND MORE THAN 230 CHAPTERS HOLD ELECTIONS AND CONDUCT PROGRAMS TO INCREASE PUBLIC UNDERSTANDING OF KEY NATIONAL SECURITY ISSUES IN THEIR COMMUNITIES. PROGRAMS RANGE FROM LUNCHEON AND DINNER ACTIVITES TO SYMPOSIA AND LEGISLATIVE ROUNDTABLES WITH CONGRESSIONAL LEADERS. 706356 324784 SCHOLARSHIPS, GRANTS, AWARDS, AND PUBLIC AWARENESS - AIR FORCE ASSOCIATION IS DEDICATED TO ENSURING AMERICA'S AEROSPACE EXCELLENCE THROUGH EDUCATION, SCHOLARSHIPS, GRANTS, AWARDS AND PUBLIC AWARENESS PROGRAMS. IN ADDITION, AIR FORCE ASSOCIATION SPONSORS A SERIES OF STUDIES AND FORUMS ON AEROSPACE AND NATIONAL SECURITY THROUGH ITS PUBLIC POLICY AND RESEARCH ARM, THE MITCHELL INSTITUTE. THE INSTITUTE WAS ESTABLISHED IN 1996 TO FOCUS AND EXPAND UPON EXISTING EDUCATIONAL EFFORTS IN AEROSPACE AND NATIONAL SECURITY POLICY. AIR FORCE ASSOCIATION WORKS THROUGH A NETWORK OF THOUSANDS OF INDIVIDUAL MEMBERS AND VOLUNTEERS TO DISTRIBUTE EDUCATIONAL MATERIALS TO SCHOOLS AND CONCERNED CITIZENS. THIS IS DONE IN PART THROUGH "VISIONS OF EXPLORATION," A JOINT MULTI-DISCIPLINARY SCIENCE, MATH AND SOCIAL STUDIES PROGRAM WITH USA TODAY. 636197 16800 CYBER PATRIOTIS A NATIONAL HIGH SCHOOL CYBER DEFENSE COMPETITION CREATED BY AFA DURING 2009 TO EXCITE, EDUCATE, AND MOTIVATE THE UPCOMING GENERATION OF CYBER DEFENDERS TOWARDS CAREERS IN SCIENCE, TECHNOLOGY, ENGINEERING AND MATH. CURRENTLY CYBER SECURITY IS THE NATIONS TOP SECURITY CONCERN. OUR GREATEST CHALLENGE IN ACHIEVING CYBER SECURITY IS FINDING TECHNICALLY EDUCATED PEOPLE OF WHICH THERE IS A SERIOUS SHORTAGE. THE CYBER PATRIOT PROGRAM PROVIDES STUDENTS THE OPPORTUNITY TO GAIN HANDS ON PRACTICAL KNOWLEDGE THAT PREPARES THEM FOR POST SECONDARY EDUCATION AND JOBS IN SCIENCE, TECHNOLOGY, AND ENGINEERING. 2068139 324784 16800 11009321 1 1 0 1 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 66 0 1 72 1 1 1 0 0 0 0 0 0 0 0 0 X 19 19 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 AK AZ AR CA CT FL HI IL KS KY LA ME MD MA MI MN MS MO NH NJ NY NC ND OH OK OR PA SC TN UT VA WA WV WI AL CO GA IA NM RI X THE ORGANIZATION 7032475800 1501 LEE HIGHWAY NO 400 ARLINGTON VA 222091198 X S SANFORD SCHLITT 20.00 X X 0 0 0 JUSTIN FAIFERLICK 15.00 X X 0 0 0 GEORGE K MUELLNER 15.00 X X 0 0 0 JOAN SELL 5.00 X X 0 0 0 LEN VERNAMONTI 10.00 X X 0 0 0 JOHN T BROCK 1.00 X 0 0 0 ROBERT W DREWES 1.00 X 0 0 0 ANGELA DUPONT 1.00 X 0 0 0 W LEE EVEY 1.00 X 0 0 0 EMIL M FRIEDAUER 1.00 X 0 0 0 WAYNE R KAUFFMAN 1.00 X 0 0 0 LARRY LAWSON 1.00 X 0 0 0 WILLIAM R LOONEY III 1.00 X 0 0 0 ROD MCKINLEY 1.00 X 0 0 0 DON MICHELS 1.00 X 0 0 0 T MICHAEL MOSELEY 1.00 X 0 0 0 JOHN F PHILLIPS 1.00 X 0 0 0 MARVIN TOOMAN 1.00 X 0 0 0 SCOTT VAN CLEEF 1.00 X 0 0 0 MICHAEL M DUNN 40.00 X 230570 57643 2720 DAVID BUCKWALTER 40.00 X 124547 31136 1027 WILLIAM TURNER 40.00 X 207753 0 9805 JOHN SMITH 26.00 X 77864 41928 3951 WILLIAM COX 29.00 X 87998 33094 3951 LAUREN BRICE 28.00 X 85479 36634 960 MARY ELLEN DOBROWOLSKI 26.00 X 112146 0 3979 KATHY SNODGRASS 20.00 X 54324 54324 4268 980681 254759 30661 4 0 1 0 RR DONNELLY POB 730216 DALLAS TX 753730216 AF MAGAZINE PRINT DISTRIBUTION 701593 AVRICH AND ASSOCIATES 439 IVYLAND RD WARMINSTER PA 18974 MAILING SERVICES 195924 CHELSEA COURT 8 CHELSEA COURT MARLTON NJ 080532804 PRINTING SERVICES 172912 GETTINGS PRODUCTION INC 275 NORTH LAKE SHORE DRIVE OCOEE FL 34761 A&S CONFERENCE PRODUCTION SERVICES 170595 HUBBARD MARKETING GROUP INC PO BOX 1467 MIDDLEBURG VA 201181467 DIRECT MAILING 110220 7 74171 100000 2611906 2786077 AIR & SPACE CONFERENCE 900099 3822415 1146820 2675595 MEMBERSHIP DUES 900099 2327188 2327188 MAGAZINE ADVERTISING 541800 1418636 1418636 SYMPOSIUMS 900099 657504 657504 CORPORATE MEMBERS 900099 318197 318197 174856 117755 57101 8718796 454467 454467 36362 36362 5671832 5328793 343039 343039 343039 MISCELLANEOUS 900099 52882 52882 52882 12391623 3909960 1475737 4219849 385220 385220 473880 364887 85299 23694 3908481 3247776 511118 149587 683019 566068 90523 26428 242778 192992 43060 6726 304720 250429 41195 13096 31991 31991 27972 1722 26250 45604 45604 130046 98168 31878 811730 666460 117578 27692 2140516 1690841 43815 405860 118100 118082 18 263551 252430 8694 2427 3703 3703 90322 90322 82802 78660 4142 HOTEL AND RESTAURANT 1538497 1520498 15731 2268 MAGAZINE PRODUCTION & P 889566 889566 CHAPTER & STATE COMMISS 403542 403542 VISIONS PROGRAM MATERIA 174417 174417 SPACE ADVERTISING 153452 142847 10605 116604 -161300 342824 -64920 13020513 11009321 1372730 638462 X 261992 151869 10949 99174 2524634 2440769 431000 249820 57608 56167 185228 195703 1718277 1164049 387743 554228 16968581 19189847 1388774 1616478 21943568 24303012 1832447 1886434 1440045 2606303 300000 10124086 12164834 13696578 16657571 X 7226228 5902921 149439 791022 871323 951498 8246990 7645441 21943568 24303012 X -628890 27341 X 0 1 1 X 0 X 1661395 1842087 2168087 1528160 2786076 9985805 1661395 1842087 2168087 1528160 2786076 9985805 1079278 8906527 596545 750000 608627 523984 487648 2966804 30690 34213 70450 74915 69682 279950 13232559 23913192 0.67310 0.47490 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 617610 16500 104993 7000 14902 717201 453070 7890 196840 7000 33190 617610 746305 116400 -111766 12000 17722 721217 1.00000 0 0 842694 698886 143808 875583 465163 410420 554228 ACCRUED INTEREST RECEIVABLE 72443 CASH SURRENDER VALUE OF INSURANCE POLICY 341258 DUE FROM AFFILIATED ORGANIZATIONS 1142411 DUE FROM AIR FORCE MEMORIAL FOUNDATION 60366 1616478 PENSION LIABILITY 3805527 DUE TO AFFILIATED ORGANIZATIONS 8291626 CAPITAL LEASE OBLIGATION 67681 12164834 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: SCHOLARSHIPS AND AWARDS ENDOWMENT: THE BEGINNING BALANCE WAS CHANGED IN 2009 TO REMOVE AN ITEM THAT DID NOT APPLY TO ENDOWMENT FUNDS. IN ORDER TO HAVE THE TAX RETURN AGREE TO THE AUDITED FINANCIAL STATEMENTS, AFA ADJUSTED THE BEGINNING BALANCE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: AIR FORCE ASSOCIAITON IS EXEMPT FROM THE PAYMENT OF INCOME TAXES ON ITS EXEMPT ACTIVITIES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). IT HAS BEEN DETERMINED THAT AIR FORCE ASSOCIATION IS NOT A PRIVATE FOUNDATION AS IT MEETS THE REQUIREMENTS OF BEING PUBLICLY SUPPORTED UNDER IRC SECTION 509(A)(2). AFA VETERAN BENEFITS ASSOCIATION IS EXEMPT FROM THE PAYMENT OF INCOME TAXES ON ITS EXEMPT ACTIVITIES UNDER SECTION 501(C)(19) OF THE INTERNAL REVENUE CODE. AIR FORCE MEMORIAL FOUNDATION IS A NOT-FOR-PROFIT ORGANIZATION INCORPORATED IN THE DISTRICT OF COLUMBIA AND IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). IT HAS BEEN DETERMINED THAT THE FOUNDATION IS NOT A PRIVATE FOUNDATION AS DEFINED AS SECTION 509(A)(1) OF THE IRC. ALL ENTITIES ARE SUBJECT TO INCOME TAXES FROM UNRELATED BUSINESS INCOME. EFFECTIVE JANUARY 1, 2009, AIR FORCE ASSOCIATION AND AFFILIATES ADOPTED A POLICY THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS. THE POLICY PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PRINCIPLES FOR THE FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN THAT ARE NOT CERTAIN TO BE RECOGNIZED. THE IMPLEMENTATION OF THIS POLICY HAD NO IMPACT ON THE AIR FORCE ASSOCIATION AND AFFILIATES' FINANCIAL STATEMENTS. THE AIR FORCE ASSOCIATION AND AFFILIATES TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE AND LOCAL AUTHORITIES. THE TAX RETURNS FOR THE YEARS 2007 TO 2009 ARE OPEN TO EXAMINATION BY FEDERAL, STATE AND LOCAL AUTHORITIES. X X X 1 PM DIRECT MARKETING 11250 WAPLES MILL ROAD SUITE 310 FAIRFAX VA 22030 FUNDRAISING CONSULTANT 0 965782 41250 924532 THE PLANNED GIVING COMPANY LLC 28 WEST STATE STREET MEDIA PA 19063 FUNDRAISING CONSULTANT 0 0 1404 -1404 VIRTUALGIVINGCOM 1288 VALLEY FORGE RD BLDG 82 PHOENIXVILLE PA 19460 FUNDRAISING CONSULTANT 0 0 2950 -2950 965782 45604 920178 CA WA WI UT VA AL AK AZ AR CO CT FL HI IA IL KS KY LA ME MA MD MI MN MS NH NJ NC ND OH OK OR SC TN MO PA WV GA NM NY RI 1 HQ CIVIL AIR PATROL 105 SOUTH HANSELL ST BLDG 714 MAXWELL AFB AL 36112 756037853 501(C)(3) 22500 PROVIDES GRANTS TO CIVIL AIR PATROL UNITS TO ENHANCE AEROSPACE EDUCATION EMBRY-RIDDLE AERONAUTICAL UNIVERSITY FL AFROTC DET 157 600 S CLYDE MORRIS BLVD DAYTONA BEACH FL 321143900 590936101 501(C)(3) 48191 PROVIDES SCHOLARSHIPS TO AIR FORCE ROTC STUDENTS SPORTS NETWORK INTERNATIONAL 775 FENTRESS BLVD DAYTONA BEACH FL 32114 592344992 5000 PROVIDES TROPHIES TO COMPETITION WINNERS ARNOLD AIR SOCIETY 9 E LOCKERMAN ST STE 2B DOVER DE 19901 530231491 501(C)(4) 8500 FINANCIAL SUPPORT FOR AAS CONCLAVE (ANNUAL MEETING) 2 2 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ALL REQUESTS ARE REVIEWED BY COMMITTEES. MOST COMMITTEES ARE OUTSIDE THE AIR FORCE ASSOCIATION. SCHOLARSHIPS ARE GRANTED BASED ON NEED, ACADEMIC ACHIEVEMENT, AND STUDY IN TECHNICAL DISCIPLINES. AIR FORCE ASSOCIATION MONITORS THE AWARDS THROUGH FEEDBACK REPORTS. AWARDS ARE PRESENTED BY A NATIONAL OFFICER AT THE ROTC COMPETITION AND ARE HANDED OUT AT BOARD MEETINGS AND AT THE CONVENTION. X X X X X 0 0 0 0 0 0 0 0 0 MICHAEL M DUNN 214240 53560 16000 4000 330 83 240 60 1936 484 232746 58187 0 0 DAVID BUCKWALTER 124230 31057 0 0 317 79 240 60 582 145 125369 31341 0 0 WILLIAM TURNER 207753 0 0 0 0 0 300 0 9505 0 217558 0 0 0 FORM 990, PART VI, SECTION A, LINE 1 AN EXECUTIVE COMMITTEE ACTS AS AN EXTENSION OF THE BOARD, PERFORMING SUCH BUSINESS AS REQUIRED BETWEEN MEETINGS OF THE BOARD OF DIRECTORS SUBJECT TO AMENDMENT OR RATIFICATION BY THE BOARD OF DIRECTORS. ALL SEVEN COMMITTEE MEMBERS ARE ALSO MEMBERS OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 6 AIR FORCE ASSOCIATION HAS ONE CLASS OF MEMBERS. ALL MEMBERS CAN VOTE WHETHER THEY ARE A 1-YEAR, 3-YEAR, OR LIFE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A DELEGATES ELECT NATIONAL OFFICERS FORM 990, PART VI, SECTION A, LINE 7B DELEGATES APPROVE AIR FORCE ASSOCIATION STATEMENT OF POLICY; ELECT BOARD MEMBERS; APPROVE DUES INCREASES; APPROVE CHANGES TO AIR FORCE ASSOCIATION CONSTITUTION. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE ORGANIZATION'S FORM 990 WAS PROVIDED BY ELECTRONIC MEANS TO ALL BOARD MEMBERS FOR THEIR REVIEW PRIOR TO FILING. THE ORGANIZATION'S COMPTROLLER REVIEWED THE FORM 990 AND ALL RELATED RETURNS FOR ACCURACY BEFORE THE RETURN WAS FILED. FORM 990, PART VI, SECTION B, LINE 12C HANDLING A CONFLICT OF INTEREST THAT ARISES AT A MEETING - A DIRECTOR SHOULD BE SENSITIVE TO ANY INTEREST HE OR SHE MAY HAVE IN A DECISION TO BE MADE BY THE BOARD OF DIRECTORS AND, INSOFAR AS POSSIBLE, RECOGNIZE THAT SUCH INTEREST EXISTS PRIOR TO THE DISCUSSION OR PRESENTATION OF SUCH A MATTER BEFORE THE BOARD. WHEN A DIRECTOR HAS AN INTEREST IN A TRANSACTION BEING CONSIDERED BY THE BOARD, HE OR SHE SHOULD DISCLOSE THE CONFLICT BEFORE THE BOARD TAKES ACTION ON THE MATTER. THE DIRECTOR SHALL REFRAIN FROM VOTING ON ANY SUCH TRANSACTION, PARTICIPATING IN DELIBERATIONS CONCERNING IT, OR USING PERSONAL INFLUENCE IN ANY WAY. THE DIRECTOR'S PRESENCE MAY NOT BE COUNTED IN DETERMINING THE QUORUM FOR ANY AIR FORCE ASSOCIATION BUSINESS TRANSACTION IN WHICH HE OR SHE HAS A POSSIBLE INTEREST. IF THE DIRECTOR RECOGNIZES THAT THE CONFLICT IS ONGOING AND THAT THE INFORMATION DISCUSSED AT THE BOARD MEETING WILL BEAR ON THAT CONFLICT, THE DIRECTOR SHOULD NOT PARTICIPATE IN THAT PORTION OF THE DISCUSSION AND LEAVE THE ROOM. IN THIS CASE, THE APPROPRIATE MATERIAL SHOULD BE DELETED FROM THE MINUTES PROVIDED TO THAT DIRECTOR. IF THE DIRECTOR IN GOOD FAITH DETECTS THAT HE OR SHE HAS FAILED TO RECOGNIZE A CONFLICT, THE DIRECTOR, WHEN IT IS RECOGNIZED, SHALL REPORT THAT FAILURE TO THE CHAIRMAN OF THE BOARD, WHO SHALL TAKE APPROPRIATE ACTION TO PREVENT CONTINUATION OF THE CONFLICT AND MITIGATE PAST ACTION TO THE EXTENT REASONABLE. THE MATTER SHALL BE REFERRED TO THE EXECUTIVE COMMITTEE FOR REVIEW AND RECOMMENDATION. FORM 990, PART VI, SECTION B, LINE 15A PRESIDENT ONLY - 2008 WAS THE LAST REVIEW, CONSISTENT WITH THE PRESIDENT EVALUATION COMPENSATION COMMITTEE PROCEDURE (PECC). THE BOARD HAS ESTABLISHED A POLICY TO PROVIDE FOR ANNUAL REVIEW OF CEO PERFORMANCE AND COMPENSATION. THE POLICY PROVIDES FOR A PRESIDENT EVALUATION AND COMPENSATION COMMITTEE (PECC) BY THE TREASURER OF THE ASSOCIATION THAT INCLUDES THE TWO VICE CHAIRMEN, THE NATIONAL SECRETARY, AND UP TO THREE MEMBERS OF THE BOARD TO BE NOMINATED BY THE CHAIRMAN OF THE BOARD AND APPROVED BY THE BOARD. THE CHAIRMAN WILL SERVE EX-OFFICIO ON THE PECC WITHOUT VOTE. THE PECC REPORTS ANNUALLY TO THE EXECUTIVE COMMITTEE, WHO IN TURN, RECOMMENDS COMPENSATION ADJUSTMENTS TO THE BOARD FOR APPROVAL. BROAD CRITERIA ARE PROVIDED TO THE PECC AS ARE SUGGESTED EXTERNAL REFERENCES, AND THE PECC MAY USE THE SERVICES OF AN OUTSIDE CONSULTANT. OFFICERS ARE NON-COMPENSATED. KEY EMPLOYEES ARE EVALUATED ANNUALLY BY THE PRESIDENT. ACTUAL EMPLOYEE COMPENSATION IS COMPARED TO SALARY SURVEY INFORMATION PROVIDED BY INDEPENDENT SOURCES. THE MOST RECENT YEAR THIS PROCES TOOK PLACE WAS IN 2009. FORM 990, PART VI, SECTION C, LINE 19 AIR FORCE ASSOCIATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND ITS FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE AND UPON REQUEST. THE FOLLOWING OFFICERS, DIRECTORS, OR HIGHEST COMPENSATED EMPLOYEES SERVED FORM 990, PART VII ON RELATED ENTITIES. THE AVERAGE HOURS PER WEEK ARE DEVOTED TO EACH ENTITY: S. SANFORD SCHLITT AIR FORCE ASSOCIATION - 20.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR JUSTIN FAIFERLICK AIR FORCE ASSOCIATION - 15.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR GEORGE K. MUELLNER AIR FORCE ASSOCIATION - 15.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR JOAN SELL AIR FORCE ASSOCIATION - 5.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR LEN VERNAMONTI AIR FORCE ASSOCIATION - 10.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR JOHN T. BROCK AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR ROBERT W. DREWES AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR ANGELA DUPONT AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR W. LEE EVEY AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR EMIL M. FRIEDAUER AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR WAYNE R. KAUFFMAN AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR LARRY LAWSON AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR WILLIAM R. LOONEY III AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR ROD MCKINLEY AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR DON MICHELS AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR T. MICHAEL MOSELEY AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOURS AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR ROD MCKINLEY AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR JOHN F. PHILLIPS AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION -1.0 HOUR MARVIN TOOMAN AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR SCOTT VAN CLEEF AIR FORCE ASSOCIATION - 1.0 HOUR AFA VETERAN BENEFITS ASSOCIATION - 1.0 HOUR AIR FORCE MEMORIAL FOUNDATION - 1.0 HOUR MICHAEL M. DUNN AIR FORCE ASSOCIATION - 40.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 8.0 HOURS AIR FORCE MEMORIAL FOUNDATION - 2.0 HOURS DAVID BUCKWALTER AIR FORCE ASSOCIATION - 40.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 8.0 HOURS AIR FORCE MEMORIAL FOUNDATION - 2.0 HOURS JOHN SMITH AIR FORCE ASSOCIATION - 26.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 12.0 HOURS AIR FORCE MEMORIAL FOUNDATION - 2.0 HOURS WILLIAM COX AIR FORCE ASSOCIATION - 29.0 HOURS AIR FORCE MEMORIAL FOUNDATION - 11.0 HOURS LAUREN BRICE AIR FORCE ASSOCIATION - 28.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 12.0 HOURS KATHY SNODGRASS AIR FORCE ASSOCIATION - 20.0 HOURS AFA VETERAN BENEFITS ASSOCIATION - 20.0 HOURS CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,351,994. CHANGE IN PENSION LIABILITY -302,187. RECONCILIATION OF BEGINNING NET ASSETS -1,022,466. TOTAL TO FORM 990, PART XI, LINE 5: 27,341. VALUATION METHOD SCHEDULE R, PART V, LINE 2 M - ALLOCATED PORTION BASED ON USE N - ALLOCATED PORTION BASED ON TIME SPENT BY EMPLOYEES Q - VALUE OF INCOME COLLECTED ON BEHALF OF AFA VETERAN BENEFITS ASSOCIATION (PASS-THROUGH) P - ACTUAL COSTS PAID ON BEHALF OF AFA VETERAN BENEFITS ASSOCIATION AFA VETERAN BENEFITS ASSOCIATION 1501 LEE HIGHWAY ARLINGTON VA 22209 530177555 TO PROVIDE VETERAN BENEFITS VA 501(C)(19) AIR FORCE ASSOCIATION 1 AIR FORCE MEMORIAL FOUNDATION 1501 LEE HIGHWAY ARLINGTON VA 22209 541629975 STEWARDSHIP OF MEMORIAL VA 501(C)(3) 7 AIR FORCE ASSOCIATION 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 AFA VETERAN BENEFITS ASSOCIATION M 498119 BOOK VALUE AFA VETERAN BENEFITS ASSOCIATION N 190041 BOOK VALUE AFA VETERAN BENEFITS ASSOCIATION P 1377198 BOOK VALUE AFA VETERAN BENEFITS ASSOCIATION Q 1336689 BOOK VALUE AIR FORCE MEMORIAL FOUNDATION P 136540 BOOK VALUE AIR FORCE MEMORIAL FOUNDATION N 35201 BOOK VALUE