Grace to You

“Board President, John MacArthur, is related to Board Treasurer Matt MacArthur (son), and Board member, Mark MacArthur (son).”

“The bylaws were amended to provide the following "significant" changes: (1) one board member will be appointed by Grace Community Church of the Valley (GCC) and may only be removed or replaced by GCC; (2) The bylaws may be altered, amended, or repealed and new bylaws adopted by a vote of three quarters of the GTY directors then in office. The articles of incorporation were amended to provide that upon dissolution, the remaining assets of Grace to You will be distributed to GCC.”

“Grace Community Church of the Valley may appoint, remove, or replace one member of the board of directors of Grace to You.”

“The final Form 990 is distributed to all members of the Board, as well as members of the Audit Committee by email. Also, prior to the filing of the form, it is reviewed by the CFO, the Managing Director, and the independent auditors.”

“The organization's management constantly monitors for any conflicts of interest that may arise in the normal course of business. Board members, managers, and supervisors sign the conflict of interest policy annually which requires disclosure to the Secretary of the Board (or for employees, the Managing Director) of a) any relationships which may create a conflict of interest and b) any conflicts with respect to a particular transaction. A questionnaire is used to facilitate this disclosure. The board is informed of all potential or actual conflicts that are disclosed. Parties with a conflict of interest are prohibited from participating in the consideration of, or voting on, the transaction, although they can be asked to provide information to the Board.”

“The organization engages an independent compensation study periodically to guide the independent members of the Board of Directors in their determination of executive compensation. The Board uses the study to guide their setting of compensation, and their deliberations and decisions are documented in the Board minutes. The study covers all officers, key employees, and highest-compensated employees. No parties with a conflict of interest are part of a compensation decision. During the tax year, the most recent study available was conducted in October 2012, but a new study was conducted in October 2015. No change was made to the president's base compensation during the tax year, and the most recent increase in his base compensation prior to the tax year was in 2010.”

“The same process is followed for the Executive Director/Board Secretary as indicated in the answer for Part VI, Line 15a above, except that in 2014 a length-of-service award was paid that did not follow this process. Nevertheless, the compensation remained within the range considered reasonable in the compensation study conducted in October 2012.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. The most recent audited financial statement is also available on the orgainzation's website.”

“Part vii, line 1a, column b: grace to you exists to expose john macarthur's bible teaching to as wide an audience as possible. John macarthur is one of the nation's foremost christian bible expositors. The content he creates includes sermons, books, radio programs, tv programs, as well as material for distribution through the internet. He also represents grace to you in public appearances around the world.pastor macarthur is the president of grace to you. His contribution to the ministry represents a full time commitment. Because he is a content creator, which requires research, study, and writing in varying amounts each week based on publishing, broadcasting, and speaking demands, and he represents the organization wherever he appears in person, on mic, or on camera, it is not possible to identify an exact number of hours he works every week on behalf of grace to you-but the estimate of 29.9 hours/week is considered a reasonable, if conservative, way of quantifying in hours the scope of his services to grace to you.”

“Part ix, line 6: ambassador advertising agency, based in irvine, california, has been grace to you's agency of record since the mid-1980s. Ambassador represents grace to you both to domestic and select international radio stations and networks. In addition to fielding inquiries from radio stations interested in carrying "grace to you," ambassador advises the ministry on station and programming decisions, negotiates airtime rates on behalf of the ministry, and provides promotional and syndication services for all grace to you radio products. Ambassador is a major player in christian media circles, representing not only grace to you but more than a dozen other media ministries. The services they provide those ministries are similar to what they provide for grace to you.ambassador's founder previously served on grace to you's board within the last 5 years, and his children are "greater than 35% owners," which means ambassador advertising agency is a "disqualified person." grace to you paid ambassador $4,014,460 during the fiscal year, of which $581,975 was for services rendered by ambassador to grace to you and $3,432,485 was paid by them to radio stations and media outlets on our behalf as our agent. Accordingly, $581,975 is included in the amount reported on line 6 of part ix for services rendered, $3,366,185 is included in the amount reported on line 24a of part ix as radio airtime, and $66,300 is included in the amount reported on line 24d of part ix for internet radio.”

“Part IX, Line 24a: See note for Part IX, Line 6”

“Part IX, Line 24d: See note for Part IX, Line 6”

“Line 9: Unrealized gain on cash value of key man life insurance policy.”

“Other program services. 2013586. 953000. 0.”

“Bad debt 421. 0. 421. 0. Late payment penalties 20. 0. 20. 0.”