Democracy Works Inc.

“In 2020, the organization's bylaws were amended to revise the number and term of directors, to clarify the limits of authority for board committees, and to reflect other updates required for conformity under massachusetts corporate law.”

“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.”

“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 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. In 2021, the organization adopted a revised process to determine ceo compensation. An independent compensation consultant reviewed compensation surveys and performed an analysis of 990's of comparable nonprofits. The consultant provided a report of the findings to a newly formed board compensation committee made up of board members and the final salary figure for the ceo was recommended by the committee and approved by the board.”

“AVAILABLE UPON REQUEST”

“Program and research consultants: program service expenses 1,302,477. Management and general expenses 216,161. Fundraising expenses 9,048. Total expenses 1,527,686. Stipends: program service expenses 7,200. Management and general expenses 0. Fundraising expenses 0. Total expenses 7,200. Peo service fees: program service expenses 104,524. Management and general expenses 7,618. Fundraising expenses 8,959. Total expenses 121,101.”

“Cumulative effect of change in accounting principle -96,940.”