2024-11-14T17:11:06-06:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 2021 SPRING ROAD SUITE 200 OAK BROOK IL 60523 990 2023-01-01 363739643 APPRAISAL INSTITUTE APPR 3123354100 200 WEST MADISON 2000 CHICAGO IL 60606 JOHN UDELHOFEN ACTING CEO 3123354100 2024-11-13 1 0 ASHLEY BARSEMA P01332786 6305738600 2024-11-11 2023 2024-10-15 13:58:12Z JOHN UDELHOFEN 200 WEST MADISON 2000 CHICAGO IL 60606 21693171 0 X WWW.APPRAISALINSTITUTE.ORG X 1991 IL OUR MISSION IS TO EMPOWER VALUATION PROFESSIONALS THROUGH COMMUNITY, CREDENTIALING, EDUCATION, BODY OF KNOWLEDGE AND ETHICAL STANDARDS. 25 21 105 197 76000 8608 2132500 1480930 18865627 17416683 541047 606670 1595166 408415 23134340 19912698 512945 350575 0 0 10878124 11714656 0 0 0 8885457 8938652 20276526 21003883 2857814 -1091185 30942389 32179969 15316877 16403674 15625512 15776295 X OUR MISSION IS TO EMPOWER VALUATION PROFESSIONALS THROUGH COMMUNITY, CREDENTIALING, EDUCATION, BODY OF KNOWLEDGE AND ETHICAL STANDARDS. 0 0 TOTAL MEMBERSHIP AS OF DECEMBER 31, 2023 WAS NEARLY 16,000, INCLUDING ACTIVE DESIGNATED MEMBERS, CANDIDATES FOR DESIGNATION, PRACTICING AFFILIATES AND AFFILIATES, AS WELL AS RETIRED DESIGNATED MEMBERS AND LIFE DESIGNATED MEMBERS. THE APPRAISAL INSTITUTE CONFERS THE MAI, SRA, AI-GRS AND AI-RRS MEMBERSHIP DESIGNATIONS, THE REQUIREMENTS FOR WHICH ARE RIGOROUS. EACH MEMBER OF THE APPRAISAL INSTITUTE SHALL ABIDE BY, UPHOLD AND CONFORM THEIR ACTIONS TO THE BYLAWS, REGULATIONS, CODE OF PROFESSIONAL ETHICS AND STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE OF THE APPRAISAL INSTITUTE. THE ORGANIZATION LED THE PROFESSION IN FOSTERING AND PROMOTING THE HIGHEST STANDARDS OF PRACTICE THROUGH ITS DESIGNATION PROGRAMS, PEER REVIEW PROCESS, EDUCATION, RESEARCH, AND PUBLISHING ENDEAVORS. AS THE LEADER IN REAL PROPERTY APPRAISER EDUCATION, THE APPRAISAL INSTITUTE OFFERS AN EXTENSIVE CURRICULUM OF INTRODUCTORY AND ADVANCED COURSES, AS WELL AS A WIDE RANGE OF SEMINARS ON SPECIALTY TOPICS. THESE PROGRAMS ARE DESIGNED TO ADDRESS THE NEEDS OF ALL REAL ESTATE APPRAISERS, RANGING FROM THOSE JUST ENTERING THE PROFESSION AND EARNING CREDIT TOWARD STATE LICENSING OR CERTIFICATION, TO SEASONED PRACTITIONERS WHO WISH TO KEEP ABREAST OF THE LATEST TECHNIQUES AND DEVELOPMENTS. MANY OF THESE PROGRAMS ALSO SERVE TO HELP OTHER INDUSTRY PROFESSIONALS GAIN FURTHER INSIGHT AND UNDERSTANDING OF REAL ESTATE VALUATION TECHNIQUES AND PROCESSES. IN 2023, THE APPRAISAL INSTITUTE SERVED OVER 22,000 STUDENTS THROUGH MORE THAN 1,200 COURSES AND SEMINARS. THE APPRAISAL INSTITUTE IS THE WORLD'S LARGEST PUBLISHER OF REAL ESTATE APPRAISAL LITERATURE. IN ADDITION TO A SERIES OF GENERAL REFERENCE BOOKS, EVERY YEAR THE APPRAISAL INSTITUTE ADDS TO ITS EXTENSIVE LIST OF PUBLICATIONS (INCLUDING DIGITAL PUBLICATIONS), COVERING CONTEMPORARY PRACTICE ISSUES, ADVANCES IN METHODOLOGY AND TECHNOLOGY, AND THE VALUATION OF A WIDE RANGE OF SPECIAL PURPOSE PROPERTIES. IN 2023, THE APPRAISAL INSTITUTE SOLD OVER 8,000 BOOKS. THE APPRAISAL INSTITUTE ALSO PUBLISHES THE APPRAISAL JOURNAL, VALUATION MAGAZINE AND APPRAISER NEWS ONLINE. THE PEER-REVIEWED JOURNAL HAS SERVED AS THE TOP FORUM FOR APPRAISAL PROFESSIONALS AND HAS BECOME THE MOST FREQUENTLY REFERENCED PERIODICAL IN APPRAISAL LITERATURE. VALUATION MAGAZINE FOCUSES ON INNOVATIVE FEATURES AND PRACTICAL IDEAS. APPRAISER NEWS ONLINE KEEPS APPRAISERS ABREAST OF INDUSTRY TRENDS AS WELL AS LEGISLATIVE AND REGULATORY MATTERS IMPACTING APPRAISERS. 0 1 1 1 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 312 0 1 105 1 1 1 0 0 0 0 0 0 0 X 25 21 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X ELIZABETH KRAMER 3123354100 200 WEST MADISON SUITE 2000 CHICAGO IL 60606 ALBERT W FRANKE III MAI SRA DIRECTOR 2.00 0.00 X 0 0 0 ALLEN W GARDINER MAI SRA DIRECTOR 2.00 0.00 X 0 0 0 DALE C COOPER MAISRAAI-GRSAI-RRS DIRECTOR 2.00 0.00 X 0 0 0 DARWIN R ERNST SRA AI-RRS DIRECTOR 2.00 0.00 X 0 0 0 DONALD S BOUCHER SR SRA DIRECTOR 2.00 0.00 X 0 0 0 HEATHER PLACER MULL MAI SRA DIRECTOR 2.00 0.00 X 0 0 0 JACINTO A MUNOZ JR MAI SRA AI-GRS DIRECTOR 2.00 0.00 X 0 0 0 JASON L MESSNER MAI DIRECTOR 2.00 0.00 X 0 0 0 JOSHUA D GARRETSON MAIAI-GRSAI-RRS DIRECTOR 2.00 0.00 X 0 0 0 LINDEL D SCHULZE MAI AI-GRS DIRECTOR 2.00 0.00 X 0 0 0 MARK E VERRETT SRA DIRECTOR 2.00 0.00 X 0 0 0 MATTHEW S MYERS MAI DIRECTOR 2.00 0.00 X 0 0 0 MICHAEL HINNANT SRA DIRECTOR 2.00 0.00 X 0 0 0 MICHAEL V TANKERSLEY MAISRA AI-GRS DIRECTOR 2.00 0.00 X 0 0 0 REGINALD M CARTER MAI SRA DIRECTOR 2.00 0.00 X 0 0 0 ROBERT J VODINELIC MAI DIRECTOR 2.00 0.00 X 0 0 0 ROBERT R ELLIOTT JR MAI SRA DIRECTOR 2.00 0.00 X 0 0 0 SMEDMORE MONTGOMERY BERNARD JR MAI DIRECTOR 2.00 0.00 X 0 0 0 TINA A MINDEMANN SRA AI-RRS DIRECTOR 2.00 0.00 X 0 0 0 TONIA VAILAS MAI AI-GRS DIRECTOR 2.00 0.00 X 0 0 0 WESLEY R SANDERS MAI AI-GRS DIRECTOR 2.00 0.00 X 0 0 0 CRAIG STEINLEY MAISRAAI-GRSAI-RRS PRESIDENT 40.00 0.00 X 152400 0 0 SANDRA K ADOMATIS SRA PRESIDENT ELECT 20.00 0.00 X 108083 0 0 PAULA K KONIKOFF MAI AI-GRS VICE PRESIDENT 20.00 0.00 X 97400 0 0 PLEDGER M BISHOP III MAISRAAI-GRS IMMEDIATE PAST PRESIDENT 20.00 0.00 X 108525 0 0 CYNTHIA CHANCE CEO 50.00 1.00 X 204458 0 3937 JAMES AMORIN MAI SRA AI-GRS CEO (THROUGH FEB 2023) 50.00 1.00 X 150532 0 8190 BEATA E SWACHA CPA CAE CFO (THROUGH SEP 2023) 50.00 1.00 X 397181 0 28451 EVAN R WILLIAMS CAE IOM DIRECTOR, PROFESSIONAL SERVICES & RESOURCES 45.00 0.00 X 201046 0 29058 JEFFREY E LISKAR ESQUIRE GENERAL COUNSEL 40.00 0.00 X 339393 0 36824 WILLIAM E GARBER JR DIRECTOR, GOVERNMENT RELATIONS 45.00 0.00 X 251947 0 15479 STEPHEN WAGNER MAI SRA AI-GRS DIRECTOR, ETHICS & STANDARDS 37.50 0.00 X 175648 0 16314 HEIDI KORTHASE DIRECTOR, INFORMATION TECHNOLOGY 55.00 0.00 X 172757 0 27291 CHRISTINA MITAKIS ASSOCIATE GENERAL COUNSEL 40.00 1.00 X 175726 0 14958 2535096 0 180502 31 0 1 0 SANDSTORM DESIGN INC 4422 N RAVENSWOOD AVE 50 CHICAGO IL 60640 PROFESSIONAL SERVICES 201675 KORN FERRY NW 5854 PO BOX 1450 MINNEAPOLIS MN 554855854 PROFESSIONAL SERVICES 176335 MYRA WITHERS PITTS 2405 WILLINGHURST DRIVE GERMANTOWN TN 38139 PROFESSIONAL SERVICES 135925 AMC - ASSOCIATION MANAGEMENT CONSULTANTS 1321 ANTOINE DRIVE HOUSTON TX 77055 PROFESSIONAL SERVICES 129260 PROJECTIFY IT SERVICES LLC 660 E BELMONT AVE ADDISON IL 60101 CONSULTING FEES 129200 5 5000 1475930 1480930 MEMBERSHIP DUES & FEES 541900 11078911 11078911 EDUCATION & REGISTRATION FEES 611600 4859804 4859804 PUBLICATION SALES 513130 672576 672576 OTHER 900099 468045 468045 ADMISSION & GRADING FEES 611600 254950 254950 82397 6397 76000 17416683 611605 611605 185717 185717 1775538 1780473 -4935 -4935 -4935 ADMINISTRATIVE FEES 561000 222852 222852 OTHER REVENUE 900099 -154 -154 222698 19912698 17340683 76000 1015085 350575 1635376 8199532 362179 830070 687499 202787 35881 120207 10000 1168117 452241 454067 863972 174452 863721 587118 1199330 704105 241920 EDUCATION CERTIFICATION 733571 CREDIT CARD FEES 337934 GAIN/LOSS ON ASSET DISP 318189 ONLINE REVENUE SHARING 145547 325493 21003883 7860555 5209301 157289 324501 104213 80773 196325 172972 6193863 1641891 2237734 4551972 16965640 18136368 3420633 3704082 30942389 32179969 2299488 2003181 6828264 5917516 3460455 4220216 2728670 4262761 15316877 16403674 X 13574730 13132325 2050782 2643970 15625512 15776295 30942389 32179969 -1091185 896956 345012 0 X X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED APPRAISAL INSTITUTE PAC 200 W MADISON STREET STE 2000 CHICAGO IL 60606 363739643 66210 0 0 1 11078911 493900 -235194 258706 639281 -380575 SCHEDULE C, PART I-C, LINE 5 APPRAISAL INSTITUTE PAC (AI PAC) PROVIDES A MEANS FOR DESIGNATED MEMBERS, CANDIDATES, AND PRACTICING AFFILIATES TO PARTICIPATE IN THE POLITICAL PROCESS ON A NATIONAL LEVEL. CONTRIBUTIONS CAN BE MADE BY INDIVIDUAL DESIGNATED MEMBERS, CANDIDATES, AND PRACTICING AFFILIATES OF THE APPRAISAL INSTITUTE AND THEIR FAMILIES, AS WELL AS BY APPRAISAL INSTITUTE EMPLOYEES. CONTRIBUTIONS FROM AI PAC SUPPORT THE PRIMARY AND GENERAL ELECTION CAMPAIGN EFFORTS OF CANDIDATES FOR THE U.S. CONGRESS WHO SUPPORT AND PROMOTE THE PRINCIPLES OF THE APPRAISAL PROFESSION. AI PAC DOES NOT CONTRIBUTE TO POLITICAL PARTIES, TO PRESIDENTIAL CANDIDATES, OR TO LEADERSHIP POLITICAL ACTION COMMITTEES. PART I-A, LINE 1 ADMINISTRATIVE COSTS OF THE PAC ARE PAID DIRECTLY BY AI PAC. 1 5186845 773221 4413624 1 X 1616855 30850 1586005 775001 267312 507689 3802007 1343729 2458278 4551972 RIGHT OF USE ASSET 1597167 OTHER ASSETS 2106915 3704082 457B PLAN LIABILITY 490729 DUE TO CHAPTERS AND REGIONS 576744 LEASE LIABILITY 3195288 4262761 X PART IV, LINE 1B: AS OF DECEMBER 31, 2023, ALL OF THE INSTITUTE'S 66 CHAPTERS' BANK ACCOUNTS ARE MANAGED UNDER THE INSTITUTE'S TAX ID NUMBER TO ENABLE CENTRAL PAYMENT PROCESSING, ACCOUNTING AND ENHANCED INTERNAL CONTROLS. THE CHAPTERS FILE SEPARATE FORM 990S IN WHICH THEY REPORT THEIR OWN FINANCIAL ACTIVITIES, INCLUSIVE OF THESE ASSETS. THE CHAPTERS' BOARD OF DIRECTORS MAINTAINS FULL DECISION MAKING AUTHORITY ON USE OF ASSETS. THE APPRAISAL INSTITUTE'S BALANCE SHEET DOES NOT INCLUDE AN ASSET OR LIABILITY FOR THESE AMOUNTS. PART IV, LINE 2B: AS OF DECEMBER 31, 2023, 40 OF THE INSTITUTE'S 66 CHAPTERS' INVESTED FUNDS INTO THE INSTITUTES RESERVE PORTFOLIO. THE APPRAISAL INSTITUTE'S BALANCE SHEET INCLUDES AN ASSET AND LIABILITY FOR THESE AMOUNTS. PART X, LINE 2: THE INSTITUTE IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE AND, EXCEPT FOR TAXES PERTAINING TO UNRELATED BUSINESS INCOME, IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES. INCOME TAX (CREDIT) EXPENSE FOR UNRELATED BUSINESS INCOME TAXES WAS $-0- FOR THE YEARS ENDING DECEMBER 31, 2023 AND 2022, RESPECTIVELY. U.S. GAAP REQUIRES MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE INSTITUTE AND RECOGNIZE A TAX LIABILITY IF THE INSTITUTE HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE INSTITUTE AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2023 AND 2022, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES EDUCATION, MEMBER SERVICES & ADVANCEMENT OF THE PROFESSION 1234 EUROPE 0 0 PROGRAM SERVICES MEMBER SERVICES & ADVANCEMENT OF THE PROFESSION 70264 NORTH AMERICA 0 0 PROGRAM SERVICES EDUCATION, MEMBER SERVICES & ADVANCEMENT OF THE PROFESSION 25645 0 0 0 0 0 0 97143 0 97143 0 0 0 0 0 0 PART I, LINE 3: TO ACHIEVE GLOBAL UNIFORMITY IN PROFESSIONAL STANDARDS AND ETHICAL PRACTICES, APPRAISAL INSTITUTE OFFERS CONTINUING EDUCATION AND DESIGNATION PROGRAMS OUTSIDE THE UNITED STATES. EXPENDITURES ARE RECORDED USING THE ACCRUAL METHOD AND IN U.S. DOLLARS. ALL EXPENSES ARE RECOGNIZED AS INCURRED BY THE PROGRAM. 1 APPRAISER DIVERSITY INITIATIVE PROGRAM SCHOLARSHIPS 397 350575 FMV SUPPORT FOR EDUCATION ENROLLMENT AND MATERIALS PART I, LINE 2: THE APPRAISAL INSTITUTE, IN COLLABORATION WITH FANNIE MAE FREDDIE MAC, AND THE NATIONAL URBAN LEAGUE, LAUNCHED AN APPRAISER DIVERSITY INITIATIVE (ADI). THE INITIATIVE IS INTENDED TO ATTRACT NEW ENTRANTS TO THE RESIDENTIAL APPRAISAL FIELD, OVERCOME BARRIERS TO ENTRY AND FOSTER DIVERSITY. ADI SCHOLARSHIP RECIPIENTS RECEIVE GRANTS TO COVER EDUCATION, PUBLICATIONS, MATERIALS, AND NETWORKING EVENTS ALL OF WHICH HELP CANDIDATES PURSUE BECOMING AN APPRAISER. X 1 1 X X X X X 0 0 0 BEATA E SWACHA CPA CAE CFO (THROUGH SEP 2023) 376681 0 0 0 20500 0 15015 0 13436 0 425632 0 0 0 JEFFREY E LISKAR ESQUIRE GENERAL COUNSEL 314543 0 4350 0 20500 0 15831 0 20993 0 376217 0 0 0 WILLIAM E GARBER JR DIRECTOR, GOVERNMENT RELATIONS 238307 0 6500 0 7140 0 11999 0 3480 0 267426 0 0 0 EVAN R WILLIAMS CAE IOM DIRECTOR, PROFESSIONAL SERVICES & RE 189403 0 5500 0 6143 0 10687 0 18371 0 230104 0 0 0 CYNTHIA CHANCE CEO 164458 0 40000 0 0 0 0 0 3937 0 208395 0 0 0 HEIDI KORTHASE DIRECTOR, INFORMATION TECHNOLOGY 166757 0 6000 0 0 0 8920 0 18371 0 200048 0 0 0 STEPHEN WAGNER MAI SRA AI-GRS DIRECTOR, ETHICS & STANDARDS 165938 0 9710 0 0 0 3652 0 12662 0 191962 0 0 0 CHRISTINA MITAKIS ASSOCIATE GENERAL COUNSEL 172626 0 3100 0 0 0 8894 0 6064 0 190684 0 0 0 JAMES AMORIN MAI SRA AI-GRS CEO (THROUGH FEB 2023) 119672 0 28086 0 2774 0 7396 0 794 0 158722 0 0 0 CRAIG STEINLEY MAISRAAI-GRSAI-RRS PRESIDENT 152400 0 0 0 0 0 0 0 0 0 152400 0 0 0 PART I, LINE 1A IN ACCORDANCE WITH IRS GUIDELINES, SPOUSE EXPENSES FOR TRAVEL, MEALS, AND LODGING ARE GENERALLY NOT REIMBURSABLE UNLESS THERE IS AN OFFICIAL BUSINESS PURPOSE FOR THE PRESENCE OF A SPOUSE. THE EXECUTIVE COMMITTEE MEMBERS MAY TRAVEL WITH THEIR SPOUSES TO MEETINGS OF THE BOARD OF DIRECTORS, INSTITUTE ANNUAL CONFERENCE AND OTHER AUTHORIZED MEETINGS IN WHICH THE INSTITUTE PARTICIPATES. ORDINARY AND NECESSARY TRAVEL EXPENSES FOR SPOUSES ATTENDING SUCH MEETINGS MAY BE REIMBURSED BY THE INSTITUTE WHEN THAT TRAVEL IS IN CONJUNCTION WITH AN APPROPRIATE BUSINESS PURPOSE, EXCEPT FOR INTERNATIONAL TRAVEL OUTSIDE OF CANADA. OFFICERS MAY ELECT TO COVER THE COST OF SPOUSE TRAVEL TO MEETINGS WITH FUNDS FROM THE OFFICERS POOLED TRAVEL BUDGET. SPOUSE TRAVEL EXPENSES WILL BE REPORTED TO THE EXECUTIVE COMMITTEE MEMBER IN ACCORDANCE WITH IRS REQUIREMENTS. PART I, LINE 3 THE HIGHEST-LEVEL APPRAISAL INSTITUTE HR STAFF SHALL SUPPORT THE AUDIT COMMITTEE IN PERFORMING COMPENSATION BENCHMARKING RESPONSIBILITIES AS LONG AS THEY ARE NOT ONE OF THE POSITIONS BEING REVIEWED BY THE COMMITTEE ("HR STAFF"). WORKING WITH THE HR STAFF, THE COMMITTEE SHALL ESTABLISH APPROPRIATE PROCEDURES TO SELECT AN OUTSIDE COMPENSATION CONSULTANT FOLLOWING THE APPRAISAL INSTITUTE CONTRACT APPROVAL POLICY. THE COMMITTEE SHALL RECOMMEND FOR BOARD OF DIRECTORS' APPROVAL THE COMPENSATION CONSULTANT TO BE ENGAGED BY THE ORGANIZATION. PENDING BUDGETARY APPROVAL BY THE BOARD OF DIRECTORS, AT LEAST EVERY FIVE YEARS, A COMPENSATION STUDY SHALL BE PERFORMED BY AN OUTSIDE COMPENSATION CONSULTANT FOR POSITIONS UNDER THE PURVIEW OF THIS COMMITTEE. IF THE APPRAISAL INSTITUTE DOES NOT HAVE AN APPLICABLE COMPENSATION STUDY, THE COMMITTEE SHALL EVALUATE A MINIMUM OF TWO THIRD-PARTY SURVEYS TO ESTABLISH COMPENSATION REASONABLENESS FOR SIMILAR POSITIONS WITHIN ORGANIZATIONS OF SIMILAR REVENUE. THE COMMITTEE IS TO ASSESS THE REASONABLENESS OF THE COMPENSATION STUDY OR SALARY SURVEYS RELATING TO THE POSITIONS WITHIN THE COMMITTEE'S BENCHMARKING FUNCTION PURVIEW AND VALIDITY/APPROPRIATENESS OF SURVEYS UTILIZED TO ESTABLISH REASONABLE COMPENSATION THRESHOLDS. THE COMMITTEE SHALL ESTABLISH THE RANGE OF REASONABLE COMPENSATION FOR EACH OF THE POSITIONS WITHIN ITS BENCHMARKING FUNCTION PURVIEW AND APPROVE ADJUSTMENTS TO THE RANGES ANNUALLY, IF ANY. BEFORE ANY ANNUAL MERIT INCREASES ARE AWARDED TO POSITIONS WITHIN THE COMMITTEE'S PURVIEW, THE COMMITTEE SHALL COMPARE PROPOSED INCREASES TO REPORTABLE AND OTHER COMPENSATION AS DEFINED IN SCHEDULE J OF THE IRS FORM 990 TO THE BENCHMARKS FOR EACH SUCH POSITION TO ENSURE THAT COMPENSATION IS REASONABLE. THE COMMITTEE SHALL PROVIDE ITS DETERMINATIONS OF THE RANGE OF REASONABLE COMPENSATION AND THE REASONABLENESS OF COMPENSATION FOR THE CEO TO THE COMPENSATION COMMITTEE, THE RANGE OF REASONABLE COMPENSATION AND THE REASONABLENESS OF COMPENSATION FOR THE KEY EMPLOYEES TO THE CEO, AND THE RANGE OF REASONABLE COMPENSATION AND THE REASONABLENESS OF COMPENSATION FOR THE OFFICERS TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 6 THE APPRAISAL INSTITUTE SHALL HAVE TWO (2) CATEGORIES OF MEMBERS: DESIGNATED MEMBERS AND HONORARY MEMBERS. A DESIGNATED MEMBER IS AN INDIVIDUAL WHO HOLDS AN APPRAISAL INSTITUTE DESIGNATION. AN HONORARY MEMBER IS AN INDIVIDUAL WHO, IN THE OPINION OF THE BOARD OF DIRECTORS, HAS MADE A SIGNIFICANT CONTRIBUTION TO THE APPRAISAL PROFESSION. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS SHALL CONSIST OF THE FOLLOWING: 1) OFFICERS OF THE APPRAISAL INSTITUTE - THE NOMINATING COMMITTEE SHALL SUBMIT ITS NOMINATION(S) FOR VICE PRESIDENT TO THE BOARD OF DIRECTORS DURING THE SECOND REGULAR BOARD OF DIRECTORS MEETING EACH YEAR, UNLESS A VACANCY IN THE OFFICE OF VICE PRESIDENT OCCURS DURING THE COURSE OF A VICE PRESIDENT'S TERM, IN WHICH CASE THE NOMINATION(S) FOR VICE PRESIDENT SHALL BE SUBMITTED AS SOON AS PRACTICABLE AFTER THE VACANCY OCCURS OR AFTER NOTICE OF THE IMPENDING VACANCY IS RECEIVED. IF A VACANCY OCCURS IN THE OFFICE OF PRESIDENT OR PRESIDENT ELECT AND SUCH VACANCY IS NOT FILLED BY AUTOMATIC SUCCESSION, THE NOMINATING COMMITTEE SHALL SUBMIT ITS NOMINATION(S) FOR SUCH VACANT POSITION AS SOON AS PRACTICABLE AFTER THE VACANCY OCCURS OR AFTER NOTICE OF THE IMPENDING VACANCY IS RECEIVED; 2) THE CHAIR/VICE CHAIR OF EACH REGIONAL COMMITTEE - EACH OF THE TEN REGIONS SHALL HAVE A REGIONAL COMMITTEE AS PROVIDED IN THE REGULATION GOVERNING REGIONS. EACH REGIONAL COMMITTEE SHALL ELECT A CHAIR AND VICE CHAIR, WHO SHALL ADMINISTER THE AFFAIRS OF THE REGION AND SERVES AS MEMBERS OF THE BOARD OF DIRECTORS OF THE APPRAISAL INSTITUTE; 3) ONE INTERNATIONAL DESIGNATED MEMBER IN GOOD STANDING ELECTED BY THE BOARD OF DIRECTORS - THE INTERNATIONAL DESIGNATED MEMBER ELECTED TO SERVE ON THE BOARD OF DIRECTORS SHALL SERVE A TWO (2) YEAR TERM THAT SHALL COMMENCE ON JANUARY 1ST OF THE FIRST YEAR OF THE INTERNATIONAL DESIGNATED MEMBER'S TERM. EXCEPT AS OTHERWISE PROVIDED, THE INTERNATIONAL DESIGNATED MEMBER SHALL BE ELECTED AT THE THIRD REGULAR BOARD OF DIRECTORS MEETING IN THE YEAR PRIOR TO COMMENCEMENT OF THE INTERNATIONAL DESIGNATED MEMBER'S TERM; 4) ANY MEMBER OF THE AUDIT COMMITTEE WHO IS NOT SERVING ON THE BOARD BY VIRTUE OF HOLDING THE POSITION OF CHAIR OR VICE CHAIR OF A REGIONAL COMMITTEE - THERE SHALL BE AN AUDIT COMMITTEE COMPOSED OF FIVE (5) MEMBERS ELECTED BY THE BOARD OF DIRECTORS. AT ITS THIRD REGULAR MEETING EACH YEAR, THE BOARD OF DIRECTORS SHALL HOLD AN ELECTION FOR THOSE AUDIT COMMITTEE POSITIONS WHOSE TERMS END THAT YEAR; 5) THE CHIEF EXECUTIVE OFFICER OF THE APPRAISAL INSTITUTE - THERE SHALL BE A CHIEF EXECUTIVE OFFICER OF THE APPRAISAL INSTITUTE APPROVED BY THE BOARD OF DIRECTORS. THE CHIEF EXECUTIVE OFFICER SHALL REPORT TO THE EXECUTIVE COMMITTEE AND THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B DESIGNATED MEMBERS IN GOOD STANDING SHALL BE ENTITLED TO VOTE ON: (A) THE DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE APPRAISAL INSTITUTE; (B) ANY MERGER OR CONSOLIDATION AND THE SUBSTANTIAL TERMS, AND ANY SUBSTANTIAL AMENDMENT OF THE TERMS, OF ANY SUCH TRANSACTION; (C) ANY DISSOLUTION OF THE APPRAISAL INSTITUTE; AND (D) ANY AMENDMENT, RESTATEMENT OR REPEAL OF THE ARTICLES OF INCORPORATION, WITH ALL SUCH VOTES REQUIRING A SIXTY PERCENT (60%) MAJORITY OF THOSE DESIGNATED MEMBERS IN GOOD STANDING PRESENT AND VOTING FOR APPROVAL. DESIGNATED MEMBERS IN GOOD STANDING SHALL HAVE ONE (1) VOTE AND SHALL BE ENTITLED TO ATTEND MEMBERSHIP MEETINGS AND VOTE BY PROXY. FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION RETAINS THE SERVICES OF AN INDEPENDENT CPA FIRM TO PREPARE THE ORGANIZATION'S 990. MANAGMEMENT REVIEWS THE COMPLETED FORM 990 DRAFT. ONCE A DRAFT OF THE 990 HAS BEEN COMPLETED, THE 990 IS DISTRIBUTED TO ALL AUDIT COMMITTEE AND BOARD OF DIRECTOR MEMBERS OF THE ORGANIZATION VIA A SECURE WEBSITE. THE BOARD MEMBERS ARE THEN ABLE TO REVIEW THE 990 DRAFT AND RESPOND WITH QUESTIONS, CONCERNS OR COMMENTS. AT THE END OF THE REVIEW PERIOD, INCLUDING ANY TIME NEEDED TO ADDRESS QUESTIONS AND COMMENTS, THE 990 IS FINALIZED AND FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C IN JANUARY OF EACH YEAR, ALL MEMBERS OF THE BOARD OF DIRECTORS ARE REQUIRED TO READ AND SIGN THE BOARD OF DIRECTORS CERTIFICATION AND DISCLOSURE STATEMENT. THIS STATEMENT REQUIRES THAT EACH BOARD MEMBER CERTIFIES THAT THEY "ARE NOT AWARE OF ANY MATTER IN WHICH I AM PERSONALLY INVOLVED THAT MAY PRESENT AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST." IF ANY POTENTIAL OR ACTUAL CONFLICT OF INTEREST ARISES DURING THEIR TERM, THEY AGREE TO IMMEDIATELY DISCLOSE THE CONFLICT AND IF APPROPRIATE REMOVE THEMSELVES FROM DISCUSSION, VOTE AND/OR FURTHER SERVICE. MEMBERS OF THE BOARD OF DIRECTORS AGREE AND UNDERSTAND THAT THEY MAY BE SUBJECT TO EVALUATION AND SELF-ASSESSMENT AT ANY TIME. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR ALL EMPLOYEES IS DETERMINED BY THE GUIDELINES CONTAINED IN THE INSTITUTE'S WAGE AND SALARY PROGRAM. THIS PROGRAM WAS DEVELOPED BY OUTSIDE HR CONSULTANTS IN CONJUNCTION WITH A CONSULTING FIRM. THE PROGRAM INCLUDES THE ESTABLISHMENT OF POSITION GRADES AND SALARY RANGES WHICH ARE BASED ON THE MARKET RATES OF ORGANIZATIONS OF SIMILAR SIZE AND BUDGET. THE CEO APPROVES ALL STAFF SALARIES. CEO'S PERFORMANCE IS EVALUATED EACH YEAR. THE PAST PRESIDENT OF THE ORGANIZATION IS RESPONSIBLE FOR COMPLETING THE CEO'S EVALUATION AND CAN SOLICIT INPUT FROM THE OTHER OFFICERS. CEO COMPENSATION IS EVALUATED USING INDUSTRY BENCHMARKS FOR SIMILAR ORGANIZATIONS BASED ON STAFF SIZE, BUDGET SIZE AND GEOGRAPHIC LOCATION. CEO COMPENSATION PACKAGE IS ALSO REVIEWED BY AN INDEPENDENT OUTSIDE CONSULTANT WHO RECOMMENDS AN APPROPRIATE SALARY RANGE FOR THE ORGANIZATION'S CEO POSITION. THE EXECUTIVE COMMITTEE APPROVES CHANGES TO THE CEO'S COMPENSATION PACKAGE. FORM 990, PART VI, SECTION C, LINE 19 APPRAISAL INSTITUTE BYLAWS ARE AVAILABLE TO THE PUBLIC ON OUR WEBSITE AT WWW.APPRAISALINSTITUTE.ORG UPON CREATION OF A LOGIN. THE CONFLICT OF INTEREST POLICY IS AVAILABLE UPON REQUEST TO THE APPRAISAL INSTITUTE'S EXECUTIVE DEPARTMENT AND THE FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST TO THE APPRAISAL INSTITUTE'S FINANCE DEPARTMENT. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. APPRAISAL INSTITUTE EDUCATION AND RELIEF FOUNDATION 200 W MADISON STREET SUITE 2000 CHICAGO IL 60606 366076334 GRANTS TO ELIGIBLE INDIVIDUALS IL 501(C)(3) 509(A)(3) N/A 0 APPRAISAL INSTITUTE POLITICAL ACTION COMMITTEE 200 W MADISON STREET SUITE 2000 CHICAGO IL 60606 363739643 POLITCAL ACTION COMMITTEE IL 527 N/A 0 0 0 1 0 0 0 0 0 0 0 0 1 0 1 1 0 1 1 0 APPRAISAL INSTITUTE EDUCATION AND RELIEF FOUNDATION C 5000 CASH APPRAISAL INSTITUTE EDUCATION AND RELIEF FOUNDATION Q 125514 CASH