Chesapeake Bay Foundation Inc.

“William C. Baker and Truman T. Semans have a business relationship.”

“An independent audit firm was engaged to conduct the financial statements' audit and to assist in preparing the Form 990. The Chief Financial Officer and Finance staff directly participated in preparing the form, drafting responses to questions and reviewing the Form 990 in draft. The Chief Financial Officer then reviewed it with the President and Chairman of the Audit and Finance Committee. The 990 was provided to the Audit and Finance Committee, comprised of Board of Trustee members, for their review and comments, after which it was sent to the full Board before being electronically filed with the IRS.”

“Each Trustee, officer, key employee and employees in positions to obligate CBF are required to review a copy of the conflict of interest policy annually and complete a disclosure form identifying any relationship positions or circumstances which he or she believes could contribute to a conflict. The conflict of interest disclosure form is completed, signed and returned to the Chief Financial Officer who notifies the Chairman of the Audit and Finance Committee and the General Counsel of any concerns. This process is also covered in orientation sessions held for new Trustees as well as for new employees. If items arise during Board meetings that are conflicts of interest, the board member having possible conflicts of interest cannot vote or participate in Board or Committee deliberations on the subject or be counted toward meeting a quorum. However, they may answer questions.”

“During the annual budget approval meeting of the Audit and Finance Committee of the Board of Trustees, the Committee reviews and approves the salary and any proposed pay increase for the President and key employees. Compensation related decisions are documented within the minutes. The committee will provide this information to the full board for approval. The President's last compensation review took place in May 2015. Generally, compensation for all staff is independently reviewed and determined annually based on performance evaluation, and analysis of comparable data obtained from industry resources and peer organizations. An overall increase pool, based on market data, is approved by the Committee for use in the process. In addition, the President, Chief of Staff and Director of Human Resources review and approve all staff alignment to ensure consistency and continuity of various positions within the appropriate pay grades and ranges.”

“CBF's governing documents and conflict of interest policy are available to the public upon request using contact information on the website. Audited financial statements, the Form 990, and the Annual Report can be found on CBF's website. Audited financial statements and the Form 990 are also filed with state charitable solicitation registrations, and are also available through not-for-profit internet portals such as Guidestar and Charity Navigator.”

“The Chesapeake Bay and its tributary rivers are broadly recognized as a national treasure. But, they are fouled by excess nitrogen, phosphorus, and sediment pollution. In fact, the Bay and most of its tidal tributaries are listed on the Clean Water Act's 303(d) list of "impaired waters." The Chesapeake Bay Foundation's (CBF) mission, simply stated, is to Save the Bay and keep it saved. We define a saved Bay as having a score of 70 (out of 100) on CBF's State of the Bay health index. Thanks largely to a dramatic reduction in the amount of pollution entering the system, at 70 the Chesapeake Bay and its tributary rivers will be highly productive and in good health as measured by established water-quality standards. The result will be clear water, free of the impacts from toxic contaminants, and healthy oxygen levels, able to support living resources in all parts of the Bay. Founded in 1966, CBF is the largest regional conservation organization dedicated solely to saving a national treasure-the Chesapeake Bay and its rivers and streams. With headquarters in Annapolis, MD; state offices in MD, VA, PA, and DC; and educational centers and programs across the region; CBF works throughout the 64,000-square-mile Chesapeake watershed to educate-build an informed citizenry; advocate-advance pollution reduction; litigate-encourage enforcement of environmental law; and restore-rebuild the Bay system's natural filters such as oysters, underwater grasses, and streamside forests. CBF is supported by more than 248,048 members and e-subscribers and has a staff of 179 full-time employees.”

“Education, continued from page 2: Engaged 60 student leaders from high schools across the region through our Student Leadership summer courses. Designed to engage tomorrow's environmental leaders, these students now participate in CBF events, share what they learned with peers, and create projects in their communities to better the environment. Educated 379 elected officials, policy makers, journalists, and other community leaders and advocates through on-the-water field experiences. These trips inform influential members of the community about the issues facing the Bay and the ways that they can help further the Bay's restoration. Taught 26 principals and school administrators through our Principal Environmental Leadership Courses. These courses increase support for environmental education, while promoting the establishment of environmental school programs. Partnered with 12 Maryland school systems to develop lesson plans that incorporate environmental education. These model curricula are being used by schools across the state, helping teachers to fully implement Maryland's first-in-the-nation environmental literacy graduation requirement. Expanded systemic environmental education in Virginia by partnering with Hampton City Public Schools. This comes in addition to existing partnerships with the Virginia Beach City and Rockingham County school systems. Through this work, CBF is striving to connect classroom instruction to outdoor learning for students at every grade level.”

“Environmental Protection and Restoration (EPR), continued from page 2: Raised and planted more than 17.7 million juvenile oysters and deployed 546 reef balls (artificial habitat for oysters). Situated on protected reefs, these oysters will play a critical role in filtering pollution from waterways. Collected 1,215 bushels of oyster shell through the Save Oyster Shells program. Gathered from restaurants and individuals, the shells serve as valuable habitat for juvenile oysters in restoration projects. Engaged volunteers in environmental restoration projects. All told, these dedicated volunteers contributed 26,062 hours of their time and assisted with projects ranging from tree plantings to oyster gardening. Cleaned 450 miles of stream and shoreline during the 27th annual Clean the Bay Day. That day, 6,000 volunteers collected 105,000 pounds of trash at 275 sites across Virginia. Planted almost 70 miles of forested buffers along streams and creeks in Pennsylvania and Maryland. Worked with 122 farmers and landowners in Pennsylvania to install conservation practices. Restored 229 acres of wetlands. Helped secure $27 million in public funding to enable Virginia farmers to reduce polluted runoff-the largest investment ever made in this program. We also helped to secure funding for the state's environmental education program. Improved fisheries management in Virginia by advocating for legislation that better manages menhaden. We also fought to preserve the Virginia Marine Resources Commission's authority to enforce laws aimed at protecting oyster reefs from poaching. Defended Virginia's stormwater management law against efforts to weaken it. Advocated for the passage of a regulatory tool that will help Maryland farmers better manage chicken manure. This science-based tool will significantly reduce the amount of agricultural pollution fouling Maryland waterways. Protected Maryland's stormwater management law from repeal and, in so doing, convinced the General Assembly to improve the law. Launched "Clean Water Counts," a campaign to challenge Pennsylvania officials to make clean water a priority and to commit the resources needed to achieve it. So far, 17 counties have signed on to the initiative, representing about a third of the state's population. Blocked legislation in Pennsylvania that would have weakened pollution-reduction efforts, while helping to preserve public funding to reduce agricultural pollution and restore urban areas. Litigation Defended the Chesapeake Clean Water Blueprint in federal appeals court, arguing in support of the pollution limits that are the cornerstone of the plan. The court agreed, ensuring that multi-state clean-up efforts will continue. Challenged stormwater permits issued by the Maryland Department of the Environment in six counties. As a result, the permits are being rewritten to include clearer pollution limits. Joined a case to defend the federal Mercury and Air Toxics Standards, which are designed to limit the emission of toxic air pollutants released by power plants. These important pollution limits are being challenged by industry. Advocated in the Richmond Circuit Court for mandatory regulations to exclude livestock from streams. Although the judge ruled in favor of the county, the case revealed new information about the condition of Virginia's waterways, and brought valuable attention to the need to fence livestock from streams. Prompted the Anne Arundel County Circuit Court to review their authorization of development beside waterways. Previously, despite a law that requires a two-hundred-foot buffer, the court routinely granted exceptions when asked. Urged the Environmental Protection Agency to study sediment toxicity and potential human health impacts associated with discharges from a hazardous waste site on the Patapsco River in Maryland. Monitored federal proceedings concerning the re-licensing of the Conowingo Dam, making sure that environmental considerations are fully taken into accou”

“Communications, continued from page 2: More than 709,000 unique individuals visited cbf.org, and over 21,000 advocacy messages were sent to key decision makers. CBF's quarterly electronic newsletter was distributed to more than 168,000 e-members. CBF's Facebook audience increased by more than 25% to over 70,000 fans. CBF's Twitter following increased by more than 30% to over 18,000 followers. CBF's more than 19,028 volunteers donated over 33,859 hours. Using the Independent Sector scale, their value is greater than $780 thousand.”

“During FY12, the organization accrued federal and state tax expenses, related to unrelated business income generated from the sale of its interest in a partnership. No tax expenses were accrued for federal and state taxes. In FY15, $4,590 were recovered.”

“Unrealized gain on interest rate swap 136,824.”