Pencils of Promise Incorporated

“The chief operating officer, in collaboration with the finance & governance committee, is tasked with drafting form 990, in conjunction with an independent accounting firm. All members of the committee, the chief executive officer, and other employees of the organization are provided with a copy of form 990 for review, comment, and approval. A copy of form 990 is also provided to the entire board of directors prior to filing the return with the internal revenue service.”

“The organization has a conflict of interest policy that applies to all employees, board members, and officers of the organization. Each person is asked to read the policy each year and sign an affirmation statement regarding the policy. Should a conflict arise, they are brought to the attention of the chief operating officer ("coo") (when an employee is involved), and the chairs of the board of directors (when a board member or officer is involved), and both are discussed at the board level to decide the proper course of action. There are quarterly conflict checks administered by the coo to employees, and by the chairman of the board to board members. At the start of each board meeting, the chair asks if there are any conflicts. If there are, the member raises to the level of a conflict that the organization should not pursue. A final decision is made by members of the board present, excluding the conflicted board member. The board has an attorney on retainer who they consult with if needed. Similar disclosures and procedures are used for employees with potential conflicts, and is administered by the coo, with counsel from the board chair if needed.”

“The organization has a policy to determine the compensation of the chief executive officer which includes: (1) review and approval by the talent and compensation committee of the board; (2) use of data as to comparable compensation; and (3) contemporaneous documentation and recordkeeping. Review and approval - the compensation of the ceo is reviewed and approved by the talent and compensation committee of the board. Use of data as to comparable compensation - the compensation of the person is reviewed and approved using data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated organizations. Contemporaneous documentation and recordkeeping - there is contemporaneous documentation and recordkeeping with respect to the deliberations and decisions regarding the compensation arrangement. The ceo makes recommendations for compensation for the other members of the leadership team, and the board decides whether to support the ceo's recommendations. The last compensation review process was undertaken in december 2021.”

“Pop makes its form 990 and form 1023 available for public inspection as required under section 6104 of the internal revenue code. The return is available on guidestar.org and other similar types of websites, as well as the organization's own website. In addition, the audited financial statements are available on the organizations website, as well as upon written request. Governing documents are also available upon a written request.”

“Loss of foreign currency -4,386.”