Leap Innovations

“The organization has one member, phyllis lockett, who is the initial member. The initial member may from time to time designate one or more individuals as her successor or successors, or a series of successors, to serve after the initial member ceases to be a member and may specify the length of time that each successor shall serve.”

“The members shall: (a) have the right, together with the affirmative vote of a majority of the then acting directors of the corporation, to approve an amendment to the articles of incorporation; (b) have the right, together with the affirmative vote of a majority of the then acting directors of the corporation, to adopt and amend these bylaws; (c) have the right to approve (i) any voluntary dissolution of the corporation; (ii) any merger or consolidation of the corporation; or (iii) any sale, lease, exchange, or other disposition of all, or substantially all, the property and assets of the corporation if not made in the usual and regular course of the conduct of the affairs of the corporation; and (d) have the right to approve all matters pertaining to the affairs of the corporation on which a vote of the members is required by the not for profit corporation act, the articles of incorporation, or these bylaws, or is otherwise deemed desirable by the board of directors. Each member shall be entitled to one vote on all matters submitted to a vote of the members.”

“There are no committees with authority to act on behalf of the board.”

“Prior to filing, a draft version of the form 990 will be reviewed by the board following management's internal review.”

“A conflict of interest policy questionnaire is annually distributed and completed. The board discusses all conflicts of interest that arise, including potential conflicts with new board members and conflicts of interest would be dealt with by the board on a case by case basis at the time that they arise.”

“The process for determining the compensation of the organization's executive director was performed by independent board members and included a compensation survey with the deliberation and decision documented in the board minutes. There were no other compensated officers or key employees as of the fiscal year end.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“The organization is in the process of adopting a written document retention and destruction policy and whistleblower policy.”

“An amended 2013 form 990 is being filed as it was recently discovered that the organization's prior return, a 990 n, failed to properly recognize grants received by the organization from its fiscal sponsor, the chicago community trust (cct). As fiscal sponsor, cct incurred a number of expenses and made a number of grants directly in support of the organization's activities. It also made certain indirect grants to the organization via transfers to the organization's payroll service. The organization's initial 2013 filing failed to report those grants as the organization was unaware that salaries were being treated differently from other program expenses. Whereas most of the program expenses that were incurred on behalf of leap innovations' programs were treated as program expenses of the fiscal sponsor, salaries and related payroll taxes were treated as grants to leap innovations. The payroll service provider was paid directly and at no time were any of these funds in an account controlled by leap innovations (as of december, 2014, leap innovations still does not have any bank accounts of its own). Because the organization was advised that funds not controlled by the organization are not considered leap innovations' revenues according to the fiscal sponsorship agreement, the organization filed a form 990-n with the understanding that the revenue for the fiscal year was $0. Upon the subsequent discovery of this error, the organization took steps to immediately prepare and file this amended return and to properly track and report such information in the future.”

“The organization currently operates pursuant to a fiscal sponsorship agreement with chicago community trust (cct) and has no bank accounts of its own at june 30, 2014, there are no assets, liabilities and net assets to reflect on the balance sheet. With the exception of certain grants to fund the organization's payroll obligations, cct as fiscal sponsor receives all funds in support of the organization's activities and pays all expenses related the organization's activities.”