The Pew Charitable Trusts

“A family relationship exists between Sandy Ford Pew and R. Anderson Pew. A family relationship exists between James S. Pew, J.N. Pew IV, M.D., Mary Catharine Pew, M.D., Doris Pew Scott, and J. Howard Pew II. A business relationship exists between Susan W. Catherwood, Aristides W. Georgantas, J. Howard Pew II, J.N. Pew IV, M.D., R. Anderson Pew, Sandy Ford Pew, Robert G. Williams and James S. Pew.”

“Pew's Form 990 is thoroughly prepared and rigorously reviewed before it is filed with the IRS. After the Form 990 is internally prepared by finance department staff members, the return is reviewed by senior management, including the Chief Financial Officer, Senior Vice President and Treasurer; Senior Vice President, General Counsel and Corporate Secretary; and the President and CEO; as well as outside independent certified public accountants and outside legal counsel. Following this review, the draft Form 990 is provided to the audit committee of the Pew board of directors for a pre-filing review. A TELEPHONIC CONFERENCE CALL IS then HELD WITH THE AUDIT COMMITTEE to discuss the draft Form 990 and any significant changes or differences from the prior year's Form 990, and to respond to questions from the Audit Committee regarding the return. Participating in the call with the audit committee are: THE INDEPENDENT certified public accountants; the Chief Financial Officer, Senior Vice President and TREASURER; the Senior Vice President, GENERAL COUNSEL AND CORPORATE SECRETARY; THE PRESIDENT AND CEO; AND OTHER MEMBERS OF THE FINANCE DEPARTMENT. After the Form 990 has been reviewed by and discussed with the audit committee, and their feedback has been incorporated, THE return IS DISTRIBUTED TO ALL MEMBERS OF THE PEW BOARD OF DIRECTORS FOR REVIEW before THE return is filed WITH THE IRS. BOARD MEMBERS ARE ENCOURAGED TO CONTACT THE Chief Financial Officer, Senior Vice President and Treasurer WITH ANY QUESTIONS.”

“Pew regularly and consistently monitors and enforces compliance with its Conflict of Interest policies for officers, directors, and staff. On an annual basis, all officers, directors, and employees certify that they have read and will continue to follow the applicable Conflict of Interest policy and complete a form disclosing their potential conflicts. As part of this process, all Pew employees are required to complete an annual conflict of interest disclosure and certification training. Pew's board and officer conflict of interest policy requires the following of all directors and officers: (1)impartial fulfillment of their roles in Pew's affairs; (2)disclosure of potential financial or other conflicts of interest involving Pew; (3)review of all affiliations; and (4)recusal and abstention in all situations of actual, potential, or perceived conflict of interest. Pew's staff conflict of interest policy requires the following of all employees: (1)impartial fulfillment of their roles in Pew's affairs; (2)avoidance of impropriety or the appearance of impropriety; (3)disclosure of potential financial or other conflicts of interest involving Pew; (4)review and approval by management of affiliations with outside organizations, with subsequent board review as appropriate; and (5)recusal and abstention in all situations of actual or perceived conflict of interest. These and other requirements are monitored, reviewed and resolved on an ongoing basis pursuant to the applicable conflict of interest policy.”

“Annually, the compensation committee of the board of pew engages an independent compensation consultant to conduct a compensation analysis for the organization's officers and key employees, and a separate compensation analysis for the organization's ceo. As part of these analyses, the independent compensation consultant identifies, gathers, and analyzes appropriate comparablity data upon which the committee and the full board will rely to assess the reasonableness of the total proposed compensation (including benefits) of the officers, the key employees, and the ceo. Once the compensation analyses are complete and documented in reports, the reports are provided to pew's board for review and consideration, together with written opinions from the compensation consultant that the proposed compensation arrangements for the officers, key employees, and ceo are "reasonable" within the meaning of treas. Reg. 53.4958-4(b)(1)(ii)(a). With input from the compensation committee, the full board makes annual decisions with respect to compensation for officers and key employees based upon the data in the relevant report and the opinion of the compensation consultant that the proposed compensation is reasonable. These decisions, and the basis for these decisions, are contemporaneously documented in the minutes. The board also makes annual decisions regarding the proposed compensation increase and resulting total compensation for the ceo based on the board's assessment of the ceo's performance, the data in the ceo compensation report, and the opinion of the compensation consultant that the proposed ceo compensation is reasonable. The board's decision regarding the ceo's compensation, and the basis for its decision, are documented in the minutes. The board members who vote on compensation for officers, key employees, and the ceo do not have a conflict of interest with respect to these compensation arrangements.”

“In accordance with Treas. Reg. 301.6104(d)-2, Pew's Form 1023 and copies of Pew's most recently-filed Forms 990 and 990-T, are made available to the public on Pew's website. Pew's audited financial statements and staff conflict of interest policy are also available on the organization's website. The organization does not normally make its governing documents available to the public. In accordance with Treas. Reg. 301.6104(d)-1(a)and IRS Notice 2007-45, copies of Pew's three most recent Forms 990 and 990-T are made available for inspection by the public during regular business hours at Pew's offices in Philadelphia and Washington, DC.”

“Sarah Senno served as interim treasurer beginning February 2016 following the departure of Usha Chaudhary, until March 2016 when Linda Bartlett was elected Treasurer.”

“As part of its charitable mission, Pew rents certain space in 901 E Street, NW, WAshington, DC to entities which are exempt from federal income taxes under IRC section 501(c)(3) and have exempt purposes related to Pew's mission. The amount of the rental fees are set below fair market value, and included in the rental agreements' terms is the right to use the building's conference center space. Pew treats such rental fees as related income since the tenants' activities are substantially related to Pew's exempt purposes. Accordingly, Pew has reported such fees on the Form 990, Part VIII, Line 2B, Column (B). The expenses related to the rental activity are included in various line items in Part IX, Functional expenses.”

“as part of its charitable mission, PEW rents certain CONFERence center space IN 901 E STREET NW, WASHINGTON, DC TO organizations that do not rent office space from Pew. All such organizations ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER IRC SECTION 501(C)(3). THE SPACE IS MADE AVAILABLE AT A RATE THAT IS LESS THAN THE LOWER OF PEW'S COST RECOVERY BASIS AND FAIR MARKET RATES IN THE Washington, DC AREA. PEW TREATS such revenue AS related INCOME SINCE THE ACTIVITY IS substantially RELATED TO PEW'S EXEMPT purposes. ACCORDINGLY, PEW HAS REPORTED such income ON THE FORM 990, PART VIII, LINE 2c, COLUMN (B). THE EXPENSES RELATED TO THE activity are INCLUDED IN various line items in PART IX, FUNCTIONAL EXPENSES.”

“Pew leases certain space at 901 E street NW, Washington, DC to entities that are not exempt from federal income taxes under IRC section 501(c)(3). However, less than 15 percent of the building is leased to such tenants. Therefore, as allowed under the IRC Section 512(b) and Treas. Reg. 1.514(b)-1(b)(1)(ii), this revenue, net of related expenses, is excluded from unrelated business income. Accordingly, Pew has reported the net rental income on form 990, Part VIII, Line 6d, column (D). In addition, Pew subleases space to entities in space that it rents at F Street in Washington, DC, as well as various office spaces throughout the country. The space is subleased below Pew's cost. Included in the sublease agreement terms are the tenants' right to use the existing furnishings and certain office services. Pew considers the net value of the personal property to be less than 10 percent of the total rents under the lease and the value of the shared services to be insignificant in terms of the agreement as a whole. Therefore, pew treats such rental payments, net of the related expenses, as excluded income under IRC section 512(B)(3). Accordingly, Pew has reported the net rental income on Form 990, Part VIII, Line 6d, column (D).”

“the pew charitable trusts and its subsidiary, pew research center (together "the organization") meet the U.S. Generally Accepted Accounting Principles requirements for consolidation. The organization received an unqualified audit opinion on its consolidated financial statements for the fiscal year.”

“Pew has included on Part IX, Line 11A, Columns B and C fees paid to the organization that provides staffing and other services for the conference center at 901 E Street NW, Washington, DC as well as fees paid by that organization on behalf of Pew (as Pew's agent) to the organization that provides catering services for the conference center.”

“As part of its program services, pew hosts many educational conferences that are widely attended by members of the general public and by interested parties, including representatives from grantees, mission-aligned nonprofit organizations, and governmental bodies. Periodically pew pays for travel, lodging, and food for conference participants, including government officials. Pew has implemented robust policies and processes to ensure that expenses paid for by pew that are attributable to attendees, including government officials, comply with applicable gifts and ethics laws and the irs accountable plan rules.”

“Other changes in net assets is comprised of the following: Unrealized foreign exchange gain 208,426 Unrealized loss on interest rate swap agreements (13,067,843) Returned contributions (18,577) Bad debt expense (185,000) ---------- Total (13,062,994)”