Disclosure Form 1

Part I – Conflicts of Interest

Name: _______________________________________________________________

Position (e.g., employee/volunteer/director):__________________________________

Date: ________________________________________________________________

Note that the words in bold are defined in the appendix attached to the back of this
questionnaire.

Certification

By signing this form below, I certify that:

1. I have received a copy of the organization’s conflicts of interest policy;

2. I have read and understand the policy;

3. I agree to comply with the policy;

4. I agree to report promptly any changes in the information reported on this

form, or any new information relevant to a conflict of interest; and

5. I understand that the organization is charitable and in order to maintain its

federal tax exemption it must engage primarily in activities that accomplish
one or more of its exempt purposes and not engage in activities and
transactions that provide impermissible benefits to individuals or entities.

Conflict of Interest Disclosure

1 The following is a sample document for nonprofit organizations incorporated in the

District of Columbia only. It is intended only for corporations seeking to qualify as a
tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code. This
sample is provided only for informational purposes and does not provide specific legal
advice for any individual situation. Some or all of this document may not be appropriate
for your organization. The sample also reflects the provisions of the Internal Revenue
Code and the laws of the District of Columbia as of the date it is written. However, laws
change. Only an attorney with knowledge of your particular situation can provide the
legal assistance you need.

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 Please certify below that you either have nothing to report under the
Organization’s conflicts of interest policy, or describe below anything you believe could
give rise to an actual or possible conflict of interest under the policy:

____ I have nothing to report.

____ I have the following matters to report.

1. Please specify below any matters you have to report.

(Please attach a supplemental statement if you have additional matters to disclose.)

2. For the purposes of determining possible future conflicts of interest, please specify
other nonprofit and for-profit boards on which you and/or your spouse sit, any for-
profit businesses for which you or a family member is an officer, a director, or a
majority shareholder, and the name of your employer and any businesses you or a
family member own).

1. ____________________________________________________________

2. ____________________________________________________________

3. ____________________________________________________________

(Please attach a supplemental statement if you have additional actual or possible

conflicts of interest to disclose.)

I hereby certify that the information set forth above is true and complete to the best of my
knowledge.

Signature: _________________________________ Date: _____________________

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 PART II - Annual Independence Questionnaire

Name:_______________________________________________________________

Position (e.g., employee/volunteer/director):_________________________________

Date:________________________________________________________________

Note that the words in bold are defined in the appendix attached to the back of this
questionnaire.

As you may be aware, the IRS Form 990’s section on governance asks questions related to
your independence. 2 In order to assist us in completing the Form 990, we ask that you
please complete the following questionnaire. You may attach additional pages if
necessary. We recognize that many of the questions below are technical and that they may
overlap with information provided in response to the Conflicts of Interest Questionnaire.
Please contact us if you are uncertain about any question or your response to such question
and please answer every question (cross-references to prior responses are acceptable where
appropriate).

1. Payments by the Organization. Have you been compensated as an officer or

employee of this Organization since the beginning of the Organization’s most
recently completed tax year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such compensation:

2 Note: A member of the governing body is not considered to lack independence merely because
of the following circumstances:

i) The member is a donor to the Organization, regardless of the amount of the contribution;
ii) The member has taken a bona fide vow of poverty and either: (a) receives compensation
as an agent of a religious order or a section 501(d) religious or apostolic organization, but
only under circumstances in which the member does not receive taxable income or (b)
belongs to a religious order that receives sponsorship or payments from the organization
that do not constitute taxable income to the member; or
iii) The member receives financial benefits from the Organization solely in the capacity of
being a member of the charitable or other class served by the organization in the exercise
of its exempt function, so long as the financial benefits comply with the organization’s
terms of membership.

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2. Payments by a Related Organization. Have you been compensated as an officer
or employee of a Related Organization since the beginning of the Organization’s
most recently completed tax year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such compensation:

3. Payments to Independent Contractors. Have you received total compensation or

other payments exceeding $10,000 from the Organization or from a Related
Organization as an independent contractor, other than reimbursement of expenses
under an accountable plan or reasonable compensation for services provided in the
capacity as a member of the governing body, since the beginning of the
Organization’s most recently completed tax year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such compensation:

4. Transactions with the Organization. Have you, or any of your family members,
been involved in a transaction with the Organization in one of the following threshold
amounts (whether directly or indirectly through affiliation with another organization)
since the beginning of the Organization’s most recently completed tax year?

i) Greater than $100,000 in the aggregate;

-OR-
ii) A single transaction in which the amount involved exceeded the greater of
$10,000 or 1% of the Organization’s total revenue for the year.

ANSWER:  YES  NO
If you answered “Yes,” please describe such transaction(s):

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5. Family Relationship. Have any of your family members been employed as an
officer, director, trustee or key employee of the Organization since the beginning of
the Organization’s most recently completed tax year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such family members’ employment:

6. Employment Business Relationship. Have you, or any family member, been

employed since the beginning of the Organization’s most recently completed tax year by
either a sole proprietorship or an organization with which an officer, director, trustee, key
employee or greater-than-35% owner of the Organization is associated?

ANSWER:  YES  NO
If you answered “Yes,” please describe such business relationship:

7. Transaction Business Relationship. Have you, or any family member, directly or

indirectly, 3 made one or more contracts of sale, lease, license, loan, performance of
services or other transaction involving transfers of cash or property valued in excess of
$10,000 in the aggregate with an officer, director, trustee or key employee of the
Organization since the beginning of the Organization’s most recently completed tax
year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such business relationship:

3 For the purpose of question 7, “indirectly” means a transaction with an organization with which
either you or the officer, director, trustee or key employee is associated as a trustee, director,
officer, key employee or greater-than-35% owner.

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8. Investment Business Relationship. Have you, or any family member, been a greater-
than-10% owner 4 in the same business or investment entity as any officer, director,
trustee or key employee of the Organization since the beginning of the Organization’s
most recently completed tax year?

ANSWER:  YES  NO
If you answered “Yes,” please describe such business relationship:

9. Other Relationships. Are there any other transactions or relationships that are not
addressed elsewhere in this questionnaire, involving you or any family member, that could
affect your ability to exercise independent judgment in making decisions as a member of
the Organization’s governing body?

Please sign, date and return this questionnaire as soon as possible. Responses may be
sent to:

[Include Contact Information]

By signing below, I affirm that my answers to the foregoing questions are true and
accurate to the best of my knowledge. I understand that the Organization will rely
on my answers in completing its Form 990.

I will promptly advise the Organization if, after the date hereof, I become aware of
any information that would change my responses to this questionnaire.

Signature: _________________________________ Date: _____________________

Name: ____________________________________

Title: _____________________________________

4 Ownership is measured by stock ownership – either voting power or value – of a corporation,

profits or capital interest in a partnership or limited liability company, membership interest in a
nonprofit organization or beneficial interest in a trust. Note that ownership includes indirect
ownership, for example, ownership in an entity that has ownership in the entity in question. There
may be ownership through multiple tiers of entities.

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Part III – Definitions

“Accountable Plan” means a reimbursement or other expense allowance for business

expenses incurred by the employee in connection with the performance of services as an
employee which can be substantiated as bona fide expenses related to the employer’s
business and which requires the employee to return any moneys paid by the employer
which are in excess of the expenses substantiated.

“Compensation” (or being “compensated”) means all forms of cash and noncash
payments or benefits provided in exchange for services, including salary and wages,
bonuses, severance payments, deferred payments, retirement benefits, fringe benefits and
other financial arrangements or transactions such as personal vehicles, meals, housing,
personal and family educational benefits, below-market loans, payment of personal or
family travel, entertainment and personal use of the organization’s property.

“Control” means:

(i) In the case of nonprofit organizations:

(a) In the case of a parent/subsidiary relationship: (1) the power to

remove and replace a majority of the organization’s or other organization’s directors or
trustees or (2) management or board overlap where a majority of the subsidiary
organization’s directors or trustees are trustees, directors, officers, employees or agents of
the parent organization.

(b) In the case of a brother/sister relationship: the same persons

constitute a majority of the members of the governing body of both organizations.

(ii) In the case of stock corporations and other organizations with owners or
persons having beneficial interests, whether such organization is taxable or tax-exempt: (1)
ownership of more than 50% of the stock (by voting power or value) of a corporation; (2)
ownership of more than 50% of the profits or capital interests in a partnership; (3)
ownership of more than 50% of the profits or capital interest in a limited liability company
treated as a partnership for federal income tax purposes, regardless of the designation under
state law of the ownership interests as stock, membership interests, or otherwise; (4) being
a managing partner or managing member in a partnership or limited liability company
which has three or fewer managing partners or managing members (regardless of which
partner or member has the most actual control); (5) being a general partner in a limited
partnership which as three or fewer general partners (regardless of which partner has the
most actual control); (6) being the sole member of a disregarded entity (an entity that is
wholly owned by the organization that is not a separate entity for Federal tax purposes) or
(7) ownership of more than 50% of the beneficial interest in a trust.

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“Director” means a member of the organization’s governing body, but only if the member
has any voting rights. A member of an advisory board that does not exercise any
governance authority over the organization is not considered a director or a trustee.

“Family Members” means the family of an individual which only includes his or her
spouse, grandparents, great-grandparents, brothers and sisters (whether whole or half-
blood), children (whether natural or adopted), grandchildren, great-grandchildren and
spouses of grandparents, great-grandparents, brothers, sisters, children, grandchildren and
great-grandchildren and any person residing in the same household as the individual.

“Independent Contractor” means a person who provides services to the Organization but
who is not treated as an employee.

“Key Employee” means an employee of the Organization, other than an officer, director
or trustee, who meets all three of the following tests:

(i) Receives reportable compensation from the Organization and all Related
Organizations in excess of $150,000 for the calendar year ending with or within the
Organization’s tax year.

(ii) (a) has responsibilities, powers or influence over the organization as a whole
similar to those of officers, directors or trustees; (b) manages a discrete segment or activity
of the Organization that represents 10% or more of the activities, assets, income or
expenses of the Organization, as compared to the Organization as a whole; or (c) has or
shares authority to control or determine 10% or more of the Organization’s capital
expenditures, operating budget or compensation for employees.

(iii) Is one of the 20 employees (which satisfy (i) and (ii) above) with the highest
reportable compensation from the Organization and Related Organizations for the calendar
year ending with or within the Organization’s most recent tax year.

“Officer” means a person elected or appointed to manage the Organization’s daily

operations, such as president, vice-president, secretary or treasurer, as determined by the
organizational documents and state law. For purposes of this questionnaire, an officer
includes any top management official and top financial official.

“Related Organization” means any organization over which the Organization has
Control.

Check which applies:

 The Organization has no Related Organizations.

 The following are Related Organizations: ___________________.

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