Nationalassociationof Music Merchants

“Consistent with NAMM's tax-exempt mission of strengthening the music products industry and promoting the pleasure and benefit of making music, the NAMM board of directors is comprised of individuals associated with the music products industry. As NAMM's officers and directors are associated with the music products industry, officers and Directors may do business transactions with each other in the normal course of business. These are normal transactions that may occur between a supplier and a customer. An example of this is a retailer buying musical instruments from a manufacturer of musical instruments. The retailer buys musical instruments from many manufacturers. A board member may be a retailer and another board member may be a manufacturer.”

“The organization has members that are engaged in business within the music products industry.”

“The Board of Directors and Officers of the organization are elected by the members.”

“Certain decisions made by the organization ( as described in the organization's bylaws) are subject to the approval of the members.”

“A copy of Form 990 is reviewed by the governing body prior to filling. A copy of the 990 is sent to the Executive Committee via NAMM's website prior to submission to the IRS.”

“The organization monitors any potential conflict of interest by circulating a disclosure questionaire annually to its Board of Directors, officers and key employees. If a conflict is found, it is resolved so that ultimately the conflict is removed. The conflict of interest policy states that it is the responsibility of each Person , upon knowledge of any violation of the guidelines in the Conflict of Interest Policy, to report all material facts on the subject to the Executive Committee of the Board of Directors.”

“Review of compensation of the President is performed by the compensation committee of the Board of Directors, which is the Executive Committee. The CEO's compensation is compared to other similar organizations and at times, the Executive Committee retains a compensation consultant to assist them in evaluating the CEO's compensation. The compensation committee approves CEO compensation before it is paid. In comparing NAMM to comparable organizations for the purpose of the CEO's compensation, the compensation committee looks at the size of the organization's annual revenue and its trade show activities. The recommendations of a compensation consultant are considered carefully when determining the CEO's level of compensation and the package of benefits. The Board takes the recommendations of the compensation committee in approving the amount of compensation of the CEO. The Board considers other factors in the CEO's compensation including tenure, the organization's success and particular industry knowledge and expertise in the music products industry.”

“The President approves all other employees compensation within a budget established by the Board of Directors.”

“NAMM complies with the public inspection of Internal Revenue Code section 6104 by making its Form 1024, Application for Recognition of Exemption Under Section 501(a), determination letter from the IRS, and the Forms 990 for its three most recently completed tax periods available to the public. However, as section 6104 does not require organizations exempt under section 501(c)(6) to disclose their governing documents, conflict of interest policies, or financial statements. NAMM does not intend to make such information available for public inspection.”