Ohio State University Foundation

“Loann Crane is Tanny Crane's mother; Tanny Crane and John Gerlach serve on the same business board.”

“The Code of Regulations was amended and restated on April 25, 2014 to add director term limits and reconfigure board committees.”

“Before the Form 990 is filed, it is reviewed by the Audit Committee of the Board. Prior to being filed the Form 990 is made available to all board members for comments.”

“Board members are required to complete a conflict of interest questionnaire annually. Staff members follow up on any conflicts disclosed on the questionnaires. Any conflicts not resolved by staff are presented to the Audit Committee for resolution.”

“The Board of Pelotonia, the disregarded entity reported in Schedule R, gathered comparability data and reviewed that data prior to determining the total compensation of the key employees. The key employees are not Board members of the organization or Pelotonia. Compensation discussions were held in executive session of the Pelotonia Board and documented.”

“The governing documents, conflict of interest policy, and financial statements are available upon request.”

“For Pelotonia LLC, the disregarded entity reported in Schedule R, the majority of gross fundraising income is comprised of (1) the operating funds pledged by the corporate funding partners, (2) the registration fees paid by the riders and (3) the donations raised by Pelotonia's riders, virtual riders and volunteers. With regard to the first category, the corporate funding partners underwrite Pelotonia's annual operating expenses, including all staff, office and event costs as well as all of the costs of processing the donations raised by the riders, virtual riders and volunteers. Often these corporate funding partners make a multi-year pledge to underwrite operating expenses each year for a designated number of years; however the total amount of multi-year pledge is booked on an accrual basis and held as a receivable. With regard to the second category, riders pay non-tax deductible registration fees that are also used to defray Pelotonia's operating costs. With regard to the third category, riders and virtual riders each agree to a minimum fundraising commitment that is satisfied through donations received by or made by the riders and virtual riders. These donations are deposited and maintained in an account that is entirely separate from Pelotonia's operating account and 100% of these donations are transferred to the Ohio State University Foundation to be directed to cancer research at The Ohio State University Compreshensive Cancer Center and James Cancer Hospital. Because Pelotonia's fundraising period for each of its events starts in December of one year and ends in November of the next year, the donations reported on the 990 in any particular fiscal year actually represent donations raised for two different Pelotonia events-i.e. donations for the event that was ongoing between July and November of a particular year and the donations for the event that was ongoing between December and June of the next year.”

“As noted in part 1, Line 1, the organization is operated for the benefit of The Ohio State University; however based on the definition of "related" in the instructions to the Form 990, the organization and The Ohio State University are not related. The organization is not a supporting organization unders IRC 509(a)(3). It maintains its public charity status under IRC 509(a)(1). Also, the Univeristy does not appoint a majority of the organization's directors. All of the information in schedule R or in other parts of the Form 990 for related organizations is available from The Ohio State University upon request.”

“The organization paid no contractors. The contractors used in Section B on Part VI were paid by Pelotonia, the disregarded entity listed in Schedule R.”

“The organization has no employees. For Pelotonia LLC, the disregarded entity reported in Schedule R, the employees are contracted for through Sequent so no W-2's are reported.”

“Includes gift annuity reserve adjustment of $4,619,191 and charitable remainder trusts loss of income of $1,115,296.”