Delta Tau Delta Fraternity

“Classes of members or stockholders: the fraternity is composed of members in good standing who have been duly initiated into undergraduate chapters established at various colleges and universities in the united states and canada. A biennial general convention of members and delegates (karnea) is the legislative session of the fraternity. The karnea delegate body is formed of 2 undergraduate voting delegates elected from each undergraduate chapter, 1 voting alumnus or member of each chapter's alumni advising team, and 1-2 voting delegates elected from each chartered and operating alumni chapter (depends on chapter size). Karnea delegates (1) elect the fraternity's board of directors (president, vice president, second vice president, treasurer, and secretary) which is the principal administrative body of the fraternity as to all its corporate affairs and the director of academic affairs, (2) have the power to levy taxes and assessments, and (3) make all laws necessary and proper for carrying into the execution the mission and values and general welfare of the fraternity, as well as the powers established by the fraternity's constitution with respect to the governance of the fraternity. Karnea delegates may with a two-thirds (2/3) vote of the convention body either repeal or amend the fraternity's constitution only upon the subsequent approval of two-thirds (2/3) of the undergraduate chapters if the karnea action is approved by the president, or repeal or amend the fraternity's constitution only upon the subsequent approval of four-fifths (4/5) of the undergraduate chapters if the karnea action is disapproved by the president.”

“Process to review the form 990: the form 990 is distributed to the executive vice president, all audit committee members and all board members via email and then reviewed jointly via a conference call with the fraternity's external audit firm's tax professionals prior to its electronic filing with the irs.”

“Process for monitoring compliance with conflict of interest policy: a conflict of interest policy and questionnaire are distributed to all interested persons. All new interested persons complete the disclosure statement within sixty days of their election, appointment or employment. The conflict of interest committee reviews the questionnaires and recommends which matters interested persons should recuse themselves from as well as determines that any associated transaction or arrangement is in the fraternity's best interest and for its benefit, that the terms of the transaction or arrangement are fair and reasonable to the fraternity, and after the exercise of due diligence, that the fraternity cannot obtain a more advantageous transaction or arrangement with reasonable efforts under the circumstances. An interested person abstains from taking part in or being present at any committee or board meeting determining the impact of that particular interested person's conflict of interest except to provide such information as the committee or board may request for consideration. If necessary, the board may appoint a disinterested person to investigate any alternatives to the proposed transactions or arrangement.”

“Review of ceo or top mgmt official compensation: annually and prior to considering any change in the executive vice president's compensation, the board receives a report that lists all compensation awarded to the executive vice president and respective values. The board receives one or more compensation surveys containing market-based compensation information for similarly-situated individuals to the executive vice president in similarly-situated organizations to the fraternity. A review of the executive vice president's compensation program and respective market-based information is conducted by the board prior to implementation of any changes to the executive vice president's compensation. The board is assisted with this review by a qualified compensation consultant. The board ensures that no director participating in the review and subsequent compensation decisions has a conflict of interest. The board will rely on the conflict of interest committee for this determination. Written minutes of the board's deliberation and associated actions taken approving the executive vice president's compensation are kept. The board annually reviews the fraternity's tax return (form 990) prior to its filing to ensure that the executive vice president's compensation is accurately and completely disclosed per the irs requirements. The above described process was last undertaken in 2017.”

“Review of other officer or key employees compensation: the executive vice president reviews the salary of other officers and key employees annually. Officers are evaluated on the accomplishment of objective goals set at the beginning of the fiscal year. The review for the year ended july 31, 2017 occurred in august & september 2017.”

“Governing documents available to the public: financial statements, governing documents, and conflict of interest policies are not required disclosures pursuant to internal revenue code (irc) section 6104. These documents are not made public at this time.”

“RELATIONSHIPS TO OTHER ORGANIZATIONS: DELTA TAU DELTA EDUCATIONAL FOUNDATION, INC. (FOUNDATION) IS A LEGALLY SEPARATE ENTITY ORGANIZED TO SOLICIT CONTRIBUTIONS AND DISBURSE SUCH FUNDS IN THE FORM OF EDUCATIONAL GRANTS, SCHOLARSHIPS AND LOANS. SOLICITATIONS ARE MADE IN ITS NAME AND ALL FUNDS ARE USED BY THE FOUNDATION IN FULFILLING ITS EDUCATIONAL OBJECTIVES. ALTHOUGH THE FRATERNITY AND THE FOUNDATION ARE SEPARATE LEGAL ENTITIES, THEY DO HAVE A COUPLE OF COMMON BOARD MEMBERS. THE FRATERNITY AND FOUNDATION WERE SHOWN AS RELATED ORGANIZATIONS ON PRIOR RETURNS. AMENDED BYLAWS WERE FILED BY THE FOUNDATION NOVEMBER 10, 2012 TO LIMIT THE NUMBER OF BOARD MEMBERS SERVING FROM THE FRATERNITY FROM FIVE TO TWO. THIS CHANGE MEANS THE TWO ORGANIZATIONS ARE NO LONGER CONSIDERED RELATED BY THE DEFINITIONS USED BY FORM 990, SCHEDULE R. THE FRATERNITY SIGNED A RENEWABLE, FIVE-YEAR NONCANCELlABLE OPERATING LEASE THROUGH JULY 31, 2017 TO OCCUPY SPACE WITHIN AN OFFICE BUILDING THE FOUNDATION OWNS. THE FRATERNITY AND FOUNDATION NEGOTIATED A NEW TEN-YEAR NON-CANCELLABLE OPERATING LEASE THAT WILL COMMENCE ON AUGUST 1, 2017. THE FRATERNITY PROVIDES SERVICES SUCH AS PERSONNEL AND RELATED BENEFITS, OFFICE EQUIPMENT AND SUPPLIES TO THE FOUNDATION, AND THE FOUNDATION REIMBURSES THE FRATERNITY FOR ITS ALLOCABLE SHARE OF THESE COSTS. THE FRATERNITY PROVIDES A BROAD SPECTRUM OF EDUCATIONAL PROGRAMMING INCLUDING LEADERSHIP DEVELOPMENT AND ALCOHOL ABUSE PREVENTION. THE COST OF THESE PROGRAMS IS PRIMARILY FUNDED BY THE FRATERNITY; HOWEVER, THE FOUNDATION MAKES QUALIFIED CONTRIBUTIONS TO THE FRATERNITY THAT ARE USED TO FUND A PORTION OF THE COST OF THESE EDUCATIONAL PROGRAMS.”

“Other changes to net assets: change in value of beneficial interest in trust $ 5,000”

“Organization's mission - cont. From page 2 loyalty to our brotherhood of honor, our host institutions and our country, intellectual integrity, and responsibility to those who follow.”

“Leadership education - cont. From page 2 after attending ignite, 84 percent of attendees were able to identify their primary leadership style and 100 percent agreed or strongly agreed they believed they could be a leader in the chapter now. The charge is a capstone program for upperclassmen. This academy focuses on helping participants identify a five-year personal strategic plan. The objective is for each man to identify goals for his professional and personal life and analyze the role he wants to have in his community. 94 percent of attendees agreed or strongly agreed that the charge was the defining experience for them as an undergraduate member of delta tau delta fraternity. 100 percent agreed or strongly agreed that they now have an action plan to utilize that will help them improve in all areas of their life. 87 percent agreed or strongly agreed that they developed a better understanding for the importance of giving back to their community. In addition to the 8 academies, a presidents and advisors leadership retreat was hosted at the fraternity's central office headquarters for 38 men representing 19 chapters. The primary objectives for the presidents and advisors retreat are to build relationships between chapter presidents and advisors based on honesty, trust and integrity, practice leadership skills necessary for upholding the fraternity's fundamental principles and values, and to identify short-term and long-term goals and strategies to advance their chapters. Following the retreat 95 percent of attendees had a greater awareness of their responsibilities as an advisor or chapter president and 86 percent felt they were better prepared to address issues with chapter members.”

“Other program services: risk management program: delta tau delta fraternity provides a comprehensive risk management program for its undergraduate chapters. This program includes educational materials, loss prevention assistance, general liability, property, commercial crime, member accident protection, and officers and directors liability insurance. Alcohol education: delta tau delta provides an online science-based alcohol course that aims to educate over 3500 undergraduate new members about alcohol and its effects on the mind and body, especially with regard to sexual assault and hazing.”

“Business transactions with independent board member: jody danneman and atlanta imagearts, inc. Provide video and live-event production services to delta tau delta fraternity. The payments received by both jody danneman and atlanta imagearts, inc. Were below reporting requirements and thus do not affect jody danneman's independence to delta tau delta fraternity.”