Democracy Works Inc.

“Form 990 is prepared by the organization's independent accountants. A draft of the return is first reviewed by the president and the administrative director. A final draft is provided to the board prior to filing.”

“The conflict of interest policy is in an addendum to the organization's by-laws, adopted september 10, 2010. All directors are required to sign disclosure statements annually to affirm they have received a copy of the policy, understand and agree to comply with the policy. No director may vote on any matter in which he or she has a conflict of interest. Directors who disclose a conflict of interest will not participate in discussions on related transactions. The board has the right to use comparability data on decisions where interested parties are affected.”

“The independent members of the board review, deliberate and determine the salaries of both the executive director and chief operating officer after analyzing salary data for comparably sized nonprofits. Specifically, the process works as follows. The executive director alerts the chair of the board that a salary increase will be requested at the next board meeting. The chair then requests that the ed compile a report of salary data for comparably sized nonprofits within the same geographic region. At the board meeting, the ed and coo are asked to leave the room and the independent members of the board deliberate on the salary data presented by the ed and make a decision. As per a previously negotiated arrangement, the coo salary is linked to the ed salary, and so the board reviews that salary request during the same private conversation.”

“AVAILABLE UPON REQUEST”

“Program and research consultants: program service expenses 288,788. Management and general expenses 3,912. Fundraising expenses 1. Total expenses 292,701. Payroll processing: program service expenses 0. Management and general expenses 3,442. Fundraising expenses 0. Total expenses 3,442.”