Fund for the Arts Inc.

“Delegation of Authority - Pursuant to the Bylaws, the Board elected an Executive Committee of 25 members. Under the Bylaws, when the Board is not in session, the Executive Committee has and may exercise all the authority of the Board with various stated exceptions: (a) elect or appoint Directors; (b) elect or appoint officers; (c) approve any annual allocation among the Assisted Organizations of funds raised in the annual fund-raising campaigns or otherwise controlled and distributable by the Fund; (d)amend, alter or repeal these Bylaws; (e) appoint or remove any member of the Executive Committee, any Director or any officer; (f) amend or restate the Articles; (g)adopt a plan of merger or consolidation with another corporation; (h) authorize the sale, lease, exchange or mortgage of all or substantially all, of the property and assets of the Fund; (i) authorize the voluntary dissolution of the Corporation, or adopt a plan for the distribution of the assets of the Corporation: or (j) amend, alter or repeal any resolution of the Board.”

“Board Member, James Welch, Jr. and Board Member, Rusty Cheuvront, Jr. - business relationship; Board Member J. David Smith and Board Member, Matthew R. Lindblom - business relationship; Board Member, Jonathan D. Blum and Board Member, Jerilan Greene - business relationship; Board Member, Carl M. Thomas and CFO Diane Cornwell - business relationship”

“Did the organization delegate control over the management duties customarily performed by or under the direct supervision of officers, directors, trustees, or key employees to a management company or other person? - The Chief Financial Officer position is contracted to Diane Cornwell, an independent contractor. She was paid $96,000 reportable compensation and provided parking to oversee the complete financial function including the annual allocation process with a dual reporting relationship to the Fund Board and CEO.”

“Description of process for reviewing the organization's Form 990 - A committee consisting of the organization's Board Chair, CEO, Chair of Compensation Committee, Chair of Finance Committee and at least two other members of the Finance Committee are provided with a draft of the Form 990 for review prior to its finalization. A copy of the finalized return is electronically provided to all voting Board members prior to being filed with the IRS.”

“Conflict of Interest (COI) Policy/Enforcement - Annually, the Fund for the Arts provides a copy of the COI Policy to all directors and officers. Directors and Officers are required to read and comply with the policy which requires, at a minimum, annual disclosure of outside activities and relationships which could give rise to a potential conflict. This is then used by the organization's management in its ongoing monitoring of potential conflicts. In addition, the COI Policy requires that a director or officer provide full disclosure of any conflicts or perceived conflicts as defined in the policy and recues him/herself from participation in the decision-making or vote regarding the affected transaction.”

“Process for determining compensation of top management official, other officers or key employees - Each year the Fund for the Arts' Compensation Committee reviews the compensation arrangements for the CEO. They also review the CEO's recommendations regarding compensation for other key employees and the contract CFO. The Committee then presents their recommendations to the organization's Executive Committee or Board for final approval. The Compensation Committee is comprised primarily of independent members, uses comparability data and contemporaneously documents the deliberation and recommendations. The compensation arrangements are generally approved in advance for the upcoming year period July 1 through June 30. The process was completed in the fiscal year ended June 30, 2014.”

“Public Availability of Information - The Conflict of Interest Policy and the most current audited financial statements are available on the Fund for the Arts' website. Articles of Incorporation are on file with the KY Secretary of State.”

“Returned Grant”