Scratch Foundation

“David M. Siegel (Vice Chair of the Scratch Board) is the Co-Chairman of Two Sigma Investments, LP. Sheri Womack (Board Secretary) and Richard Sauer (Board Treasurer) are employees of Two Sigma Investments, LP.”

“The Organization has two members who were elected by the sole incorporator.”

“The members have the right to appoint individuals to the Board of Directors.”

“The Form is prepared by a third party. The Form 990 goes through a detailed review internally by the Treasurer. Once the return has gone through this review, the final Form 990 is distributed via email to each member of the Board of Directors for their review and comment and with a recommendation to file the return with the IRS.”

“The conflict of interest policy and disclosure form are sent to every board member and corporate officer on an annual basis. During the course of board meetings, board members disclose any conflicts related to the agenda item/discussion and abstain from voting. Whenever appropriate, the board member would be excused from the room during discussion and voting. To ensure the foundation operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews of this policy are conducted.”

“The Foundation will enter into a written compensation arrangement, specifying the date and terms of any arrangement whereby the foundation will pay compensation to a person, company or entity, prior to paying compensation to any person, company, or entity. The Foundation can only enter into a compensation arrangement with the approval of a majority of Board of Directors. When determining whether to vote for a proposed compensation arrangement, the Board of Directors considers information about compensation paid by similarly situated taxable or tax-exempt organizations for similar services, current compensation surveys compiled by independent firms, or actual written offers from similarly situated organizations. The Foundation will record in writing the information on which it bases its decision to approve a compensation arrangement.”

“The Organization considers requests for financial statements, governing documents or conflict of interest policy on a case by case basis.”

“Richard Sauer is an employee of Two Sigma Investments, LP ("TSI") and was paid for the services he provided to the Foundation through a management contract the Foundation has with TSI. Payments by the Foundation for such services of this officer were made to TSI quarterly in arrears. Total payments received by TSI for accounting services in 2022 were $189,315. The amount paid to TSI for services rendered includes services provided by other employees of TSI to Scratch Foundation, and is not exclusive to Richard Sauer. The actual amount of compensation paid by TSI to Richard Sauer for services rendered to the Foundation is not known by the filing organization.”

“Other Professional Fees: Program service expenses 1,095,078. Management and general expenses 1,537,585. Fundraising expenses 111,308. Total expenses 2,743,971.”

“Section 1.263(a)-3(n) Election: Scratch Foundation 201 South Street, Suite 1-102 Boston, MA 02111 EIN 46-2612143 Scratch Foundation is electing to capitalize repair and maintenance costs under Regulation Section 1.263(a)-3(n).”