Democracy Works Inc.

“Form 990 is prepared by the organization's independent accountants. A draft of the return is first reviewed by the ceo, director of finance and employee engagement, 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 periodically 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 chief executive officer and chief operating officer after analyzing salary data for comparably sized nonprofits. Specifically, the process works as follows. The ceo alerts the chair of the board that a salary increase will be requested at the next board meeting. The chair then requests that the ceo compile a report of salary data for comparably sized nonprofits within the same geographic region. At the board meeting, the ceo and coo are asked to leave the room and the independent members of the board deliberate on the salary data presented by the ceo and make a decision. As per a previously negotiated arrangement, the coo salary is linked to the ceo salary, and so the board reviews that salary request during the same private conversation.”

“AVAILABLE UPON REQUEST”

“Program and research consultants: program service expenses 836,050. Management and general expenses 301,050. Fundraising expenses 18,069. Total expenses 1,155,169. Peo service fees: program service expenses 58,772. Management and general expenses 6,478. Fundraising expenses 3,026. Total expenses 68,276. Stipends: program service expenses 25,352. Management and general expenses 0. Fundraising expenses 0. Total expenses 25,352.”

“Reversal of prior year grant -8,000.”