Grammy Museum Foundation Inc.

“Business Relationship: Neil Portnow, Branden Chapman, Wayne Zahner, James "Jimmy Jam" Harris, Terry Lickona, Joel Katz, Carolyn Powers, Giselle Fernandez, Charles Ortner, Ted Fikre, Ken Ehrlich, John Branca, Dan Beckerman, Todd Goldstein, Jay Marciano.”

“The Foundation entered into an Outsourcing Services Agreement between GRAMMY Museum Foundation Inc. and AEG Museum, LLC effective January 1, 2008, in which AEG Museum, LLC was engaged to perform certain management services in connection with the operation of the GRAMMY Museum on behalf and for the benefit of the Foundation. The Foundation retains ultimate responsibility for supervising the operations of the Museum and making policy decisions.”

“The Museum has one Class A Member (National Academy of Recording Arts & Sciences, Inc.) and one Class B Member (L.A. Arena Land Co, a majority owned subsidiary of Anschutz Entertainment Group, Inc.).”

“The Class A Member shall designate all Class A Directors. The Class B Member shall designate all Class B Directors. At all times, there shall be one more Class A Director than there are Class B Directors on the Board.”

“Decisions of the governing body are subject to approval by the National Academy of Recording Arts & Sciences, Inc.”

“After the Form 990 is prepared, it is submitted to the audit committee for review. The Board has designated the audit committee to review and approve the filing of the tax return on its behalf. After all comments and questions from the audit committee have been addressed and incorporated, the audit committee approves the filing with the IRS.”

“Each director, principal officer and member of a committee with powers delegated by the board of directors needs to sign a statement upon hiring or appointment affirming that he/she 1) has received a copy of the conflicts of interest policy, 2) has read and understands the policy, 3) has agreed to comply with the policy, and 4) understands that the Museum is a non-profit organization and in order to maintain its federal tax exemption status, it must engage primarily in activities which accomplish one of more of its tax-exempt purposes. Periodic reviews are conducted by the Human Resources department to ensure compliance with the policy. This function is performed by AEG Museum, LLC as part of its Outsourcing Agreement with Grammy Museum Foundation. Periodically, a Conflict of Interest Questionnaire is distributed to selected employees for completion and signature, and then reviewed by Human Resources. Copies of these forms are maintained by Human Resources in personnel files. Annually, the Corporate Secretary distributes the Annual Disclosure Statement at a Board Meeting. The statements are collected by the Corporate Secretary and then a summary report is given to the Chair of the Audit Committee. Accordingly, the Chair of the Audit Committee is responsible for both monitoring and enforcing the conflict of interest policy based on the statements that are provided.”

“DURING the 2016 tax year, THE Executive Director was compensated in accordance with the Outsourcing Services Agreement between GRAMMY Museum Foundation Inc. and AEG Museum, LLC dated January 1, 2008. Pursuant to Exhibit A of Article 2, Section 2.2(a), AEG Museum, LLC is to "In accordance with Article 7 of the Agreement, hire or otherwise engage, pay, supervise, and direct all personnel in connection with the operation of the Museum and conduct retention and training programs as requested by Foundation in its reasonable discretion." ACCORDINGLY, ALL FORM W-2S WERE ISSUED BY AEG MUSEUM, LLC. THE EXECUTIVE DIRECTOR'S COMPENSATION WAS DETERMINED BY REVIEWING AND COMPARING WITH THE COMPENSATION OF OTHER NON-PROFIT MUSEUM DIRECTORS IN THE GENERAL AREA. BASED UPON THIS COMPARISON AND THE TERMS OF THE AGREEMENT WITH AEG, AN AMOUNT WAS DETERMINED BY DISCUSSION AND APPROVAL OF SELECTED BOARD MEMBERS OF THE MUSEUM.”

“The organization does not make its governing documents, financial statements, and conflict of interest policy available to the public.”

“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.”