Mozilla Foundation

“The bylaws were amended to reflect the organization's existing practice of treating all directors of the organization, including the chair, as independent fiduciaries and not as employees or officers of the organization.”

“The audit committee periodically meets in executive session. Although separate meeting minutes are not kept, it reports back to the full board where meeting minutes are kept.”

“Several individuals associated with the organization diligently gather and prepare all data and narrative explanations to accurately complete irs form 990. Drafts of the form 990 are reviewed and edited by management, officers and its outside counsel and accountants. All directors receive a final copy of the 990 prior to filing.”

“The foundation annually asks board members and key employees to respond to a questionnaire detailing potential conflicts of interest. Individuals are to report any potential conflicts with respect to particular decisions as they arise, and if the board determines that a conflict exists, the conflicted individual does not participate in voting on that decision (and in some cases the foundation may not pursue the transaction at all). While the foundation has not engaged in additional monitoring or enforcement beyond this, it believes its existing mechanisms have been adequate to protect against conflicts of interest affecting the board's decision making.”

“The board of directors determined the executive director's compensation after taking into account assessments of his individual performance and that of the organization as a whole, along with market data about executive compensation at similar organizations drawn from both general surveys and the forms 990 for a set of peer institutions. The executive director and interested parties were absent from the final board discussion, and the determination was ultimately approved by a quorum of the board of directors not including anyone with a conflict of interest regarding the compensation package. The process and the data on which the decision was made is documented in the minutes of the organization.”

“The forms 990, 990-t, and the form 1023 in their original form are available upon request. We also make these forms available online, along with our financial statements and governing documents, except that to protect individual privacy some personal address information is redacted from the version made available online.”

“The organization received several payments from sponsors in return for recognition at, and in some cases admission to, its events. To the best of its knowledge, these payments were deductible as ordinary and necessary business expenses rather than as charitable contributions, and no good faith estimate of the value of these benefits was provided to such sponsors.”

“Foreign exchange gain/(loss) -16,968.”

“The prior period adjustment shown here is a section 481(a) adjustment of $10,795,940 that constitutes an increase to income that was reported as a prior year adjustment in the organization's financial statements. The section 481(a) adjustment is equal to the accrued but unpaid royalties as of 12/31/17, which would have been reported when actually paid this year under the organization's previous method of accounting for royalties. The organization has shifted to report royalties in the year of accrual, in accordance with its financial statements and section 451(b) of the code, and has filed form 3115 with the irs in connection with this change.”

“Section 1.263(a)-1(f) de minimis safe harbor election : taxpayer is making the de minimis safe harbor election under treas. Reg. 1.263(a)-1(f) for all eligible amounts paid or incurred during the taxable year. Section 1.263(a)-3(n) capitalization election : taxpayer hereby elects to capitalize repair and maintenance costs under treas. Reg. 1.263(a)-3(n). The costs were incurred during the taxable year in the electing taxpayer's trade or business and the electing taxpayer treats such costs as capital expenditures on its books and records.”