Charlotte Hornets Foundation Inc.

“The Vice Chairman, President, Executive Director, Secretary, Treasurer and Chairman all have business relationships.”

“The Treasurer compiles the information for the tax service provider, Grant Thornton LLP. Grant Thornton LLP in turn, prepares the return and reviews it with the Treasurer. The Treasurer takes the return to the Foundation's executive director and provides the necessary explanations. The executive director performs a highly detailed review and completes his/her understanding by posing follow-up questions to the Treasurer. Once edits have been made and the 990 has been finalized, the executive director presents the 990 to the board of directors. The 990 is submitted to the IRS only after the board has approved the filling.”

“The Charlotte Hornets Foundation, Inc. has implemented a written conflict of interest policy. The policy applies to all persons in a position to influence the affairs of the corporation including without limitation, officers, directors, any person described as management personnel, any person who makes purchasing decisions on behalf of the corporation and any person who has proprietary information (each interested person). Immediate family members of interested persons and entities in which any interested person has a 30% ownership interest also are covered by this policy. An interested person must disclose the existence of his or her financial interest and must be given the opportunity to disclose all material facts to the directors, and members of committees with board delegated powers, considering the proposed transaction or arrangement. After an interested person discloses a financial interest and all material facts, and after any discussion with the interested person, the interested person must leave the board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members decide if a conflict of interest exists. A conflict of interest always exists when a voting member receives compensation directly from the corporation. If it is decided that a conflict of interest exists, the interested person may make a presentation at the board or committee meeting. After such presentation, he/she must leave the meeting during the discussion of, and the vote on, the transaction or arrangement that results in the conflict of interest. The chairperson of the board or committee then, if appropriate, appoints a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence (at least 3 comparable quotes, if applicable), the board or committee determines whether the corporation can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably attainable, the board or committee determines by a majority vote of the disinterested directors whether the transaction or arrangement is in the corporation's best interest and for its own benefit and whether the transaction is fair and reasonable to the corporation. The board or committee makes its decision as to whether to enter into the transaction or arrangement in conformity with such determination.”

“The compensation was determined by the board (independent persons) after reviewing reasonable compensation plans. The decision can be found in the Foundation's board meetings minutes. Also see the response to Form 990, Part VII.”

“All documents (governing documents, conflict of interest policy, & financial statements) are made available to the public upon request.”

“Compensation THE EXECUTIVE DIRECTOR IS AN EMPLOYEE OF, AND HER COMPENSATION IS PROVIDED ENTIRELY BY, THE RELATED ORGANIZATION FOR SERVICES PROVIDED TO THIS ORGANIZATION. THESE SERVICES WERE DONATED TO THE FOUNDATION.”

“Scholarship accrual $62,601”