Arizona State University Foundation for a New American University

“FORM 990, PART III, LINE 4D THE Arizona State University FOUNDATION for a new American University (ASUF or Foundation) PROVIDED OVER $32 MILLION TO SUPPORT THE EDUCATION, PUBLIC SERVICE AND OTHER ACTIVITIES OF ARIZONA STATE UNIVERSITY (ASU). IN ADDITION TO THE NEAR $5 MILLION OF PROGRAM REVENUE, the FOUNDATION PROVIDED OVER $71 MILLION OF CONTRIBUTIONS IN SUPPORT OF THESE ACTIVITIES. FUNDRAISING EVENTS FORM 990, PART V, LINES 7A AND 7B The Foundation RECEIVES GIFTS FOR ASU THAT AT TIMES PROVIDES THE DONOR WITH A BENEFIT. THOSE DONORS RECEIVE CHARITABLE GIFT RECEIPTS INDICATING THE TOTAL VALUE OF PAYMENT, THE FAIR MARKET VALUE OF BENEFITS RECEIVED BY THE DONOR, AND THE NET AMOUNT THAT MAY BE CONSIDERED A CHARITABLE CONTRIBUTION.”

“FORM 990, PART VI, SECTION A, LINE 4 IN SEPTEMBER 2015, THE FOUNDATION'S BOARD OF DIRECTORS APPROVED A CORPORATE ENTITY RESTRUCTURE, WHERE A NEW ENTITY ASU ENTERPRISE PARTNERS (EP), WAS CREATED TO BE THE PARENT AND HOLDING COMPANY OF THE FOUNDATION AND FOUR OTHER AFFILIATED ORGANIZATIONS DESCRIBED FURTHER BELOW. EP BEGAN OPERATIONS ON JULY 1, 2016, AND IS THE SOLE MEMBER OF EACH OF THESE FIVE ENTITIES. EP IS AN ARIZONA NONPROFIT CORPORATION AND A 501(C)(3) TAX-EXEMPT ORGANIZATION. EFFECTIVE JULY 1, 2016 THE FOUNDATION ASSIGNED ITS INTEREST IN VARIOUS ASSETS AND LIABILITIES TO EP OR TO A SUBSIDIARY OF EP. MEMBERS, POWER TO ELECT MEMBERS, AND GOVERNANCE DECISIONS Form 990, Part VI, Section A, Lines 6, 7a and 7b EP is the sole member of ASUF and has the power to elect or appoint one or more members of the governing body as well as holds the right for governance decisions.”

“FORM 990, PART VI, SECTION B, LINE 11B ASUF'S FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, IS PREPARED BY AN OUTSIDE ACCOUNTING FIRM. THE DRAFT IS SUBMITTED TO ASUF'S MANAGEMENT FOR REVIEW AND ACCURACY OF REPORTING. THE BOARD OF DIRECTORS HAS DELEGATED REVIEW OF THE FORM 990 TO THE AUDIT COMMITTEE of EP. MANAGEMENT AND A REPRESENTATIVE OF THE OUTSIDE ACCOUNTING FIRM REVIEW THE FORM 990 WITH THE AUDIT COMMITTEE. ONCE APPROVED AND ACCEPTED BY THE AUDIT COMMITTEE, THE FORM 990 IS SIGNED BY THE CFO AND SUBMITTED ELECTRONICALLY TO THE IRS AND THE BOARD OF DIRECTORS.”

“Policy form 990, part vi, section b, line 12c upon hire and on an annual basis, officers, directors, trustees, and key employees are required to disclose any conflicts or potential conflicts relating to their involvement with asuf. In addition, any time the individuals referred to above become aware of a new conflict, they are required to submit an updated conflict of interest/commitment form to the cfo. Any identified conflicts would be reviewed by the board chair and the ceo to determine any mitigation actions needed.”

“EMPLOYEES FORM 990, PART VI, Section B, LINES 15A AND 15B FOR ASUF, THE BOARD OF DIRECTORS APPROVES THE COMPENSATION PACKAGE FOR THE PRESIDENT AND CEO BASED ON CURRENT MARKET COMPARISONS PROVIDED BY THE FOUNDATION'S HUMAN RESOURCES DEPARTMENT (WHICH OBTAINS THIS INFORMATION FROM AN INDEPENDENT COMPENSATION CONSULTANT), RESPONSIBILITIES OF THE POSITION, GOALS OF THE FOUNDATION, AND NEGOTIATIONS WITH THE PRESIDENT AND CEO. ALL OTHER COMPENSATION DECISIONS FOR KEY EMPLOYEES HAVE BEEN DELEGATED FROM THE BOARD OF DIRECTORS TO THE PRESIDENT AND CEO, WHO FOLLOWS A SIMILAR PROCESS AFOREMENTIONED.”

“FORM 990, PART VI, Section C, LINE 19 THE FINANCIAL STATEMENTS FOR ASUF ARE AVAILABLE TO THE PUBLIC ON THE ORGANIZATION'S WEBSITE. THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST STATEMENT ARE NOT MADE AVAILABLE TO THE PUBLIC.”

“FORM 990, PART VIII AND FORM 990, PART IX IN ITS EFFORT TO SUPPORT ASU, ASUF PERFORMS A BROAD SCOPE OF SERVICES THAT INCLUDE FUNDRAISING AND INVESTMENT MANAGEMENT Services. ASUF'S FUNDRAISING EXPENSES SUPPORT ACTIVITIES THAT GENERATE CONTRIBUTIONS THAT GO DIRECTLY TO ENTITIES OTHER THAN ITSELF, SUCH AS ASU AND OTHER ASU AFFILIATES; THUS, NOT ALL FUNDRAISING RESULTS GENERATED THROUGH ASUF'S EFFORTS ARE REFLECTED IN THE CONTRIBUTION TOTALS ON ASUF'S FORM 990. Tax-Exempt Bond Liabilities Form 990, Part X, Line 20 The estimated fair value of the Organizations bonds were approximately $0 at 2017 and $108.2 million at 2016. Effective July 1, 2016 the Foundation assigned its interest in the tax-exempt bonds to EP and subsidiaries as part of the restructure.”

“FORM 990, PART XI, LINE 9 RESTRUCTURE TRANSFER to EP and Subs: $(42,381,874) CHANGE IN ASSETS DUE TO OTHER ENTITIES: $(16,063,127) CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS: $ 336,138 TAYLOR TRUST FBO ASUF ASSETS: $ (1,312,763) ASU ENTERPRISE PARTNERS: 661,349 ------------- TOTAL $(58,760,277)”