2013-11-07T12:59:47-07:00 2012-12-31 990 2012-01-01 363739643 APPRAISAL INSTITUTE APPR 3123354100 200 W Madison Street Suite 1500 Chicago IL 60606 Frederick H Grubbe 3123354100 2013-11-07 2012 2016-03-07 17:11:31Z Frederick H Grubbe 200 W Madison St Suite 1500 Chicago IL 60606 19213421 1 0 9464 X www.appraisalinstitute.org X 1991 IL The Appraisal Institute's mission is to advance professionalism and ethics, global standards, methodologies and practices through the professional development of property economics worldwide. 26 22 107 133 123338 0 65000 89500 18192379 18693565 94653 74414 389832 355942 18741864 19213421 0 10375 0 0 8582076 8796316 0 0 0 9083415 9215839 17665491 18022530 1076373 1190891 14237611 16463945 9160061 10153626 5077550 6310319 X See Schedule O 0 0 0 0 0 Total membership as of December 31, 2012, was 23,015 including all active Designated, Associate, Affiliate members, as well as Retired and Retired-Life members. The Appraisal Institute confers the MAI and SRA membership designations, the requirements for which are rigorous. Members may obtain and hold the MAI and SRA designations that elevate them into the upper echelon of valuation experts. Each member of the Appraisal Institute shall abide by, uphold and conform his or her actions to the Bylaws, Regulations, Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The organization has led the profession in fostering and promoting the highest standards of practice through its designation programs, peer review process, education, research, and publishing endeavors. 0 0 0 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. The Appraisal Institute has also expanded its education programs to Asia, Europe and the Middle East, and has a growing international membership. In 2012, the Appraisal Institute served 16,700 students through more than 1500 courses and seminars. 0 0 0 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, covering contemporary practice issues, advances in methodology and technology, and the valuation of a wide range of special purpose properties. In 2012, the Appraisal Institute sold approximately 19,680 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 0 0 0 0 1 1 1 0 0 0 0 0 1 0 0 0 1 1 1 1 0 1 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 1 204 0 1 107 1 1 1 0 0 0 0 0 X 26 22 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X WILLIAM T ZIMMERMANN 3123354100 200 W Madison Street Suite 1500 Chicago IL 60606 SARA W STEPHENS MAI 30 0 X X 134020 0 0 RICHARD L BORGES II MAI SRA 20 0 X X 102676 0 0 KEN P WILSON MAI SRA 20 0 X X 77414 0 0 JOSEPH C MAGDZIARZ MAI SRA 10 0 X X 56700 0 0 JIM AMORIN MAI SRA 2 0 X 0 0 0 SCOTT F BIETHAN MAI 2 0 X 0 0 0 TERRY O BERNHARDT JD SRA 2 0 X 0 0 0 MACKENZIE S BOTTUM MAI 2 0 X 0 0 0 ROBERT E DIETRICH MAI 2 0 X 0 0 0 SHAUNA E ELMER-GEHRING SRA 2 0 X 0 0 0 ROBERT D GRACE MAI SRA 2 0 X 0 0 0 M RALPH GRIFFIN JR MAI 2 0 X 0 0 0 CELEN GUNIZ MAI 2 0 X 0 0 0 JAMES L HENDERSON SRA 2 0 X 0 0 0 JONI L HERNDON SRA 2 0 X 0 0 0 GAIL G HUNYAR SRA 2 0 X 0 0 0 RICHARD J MURRAY SRA 2 0 X 0 0 0 JAMES L MURRETT MAI SRA 2 0 X 0 0 0 THOMAS C REYNOLDS III SRPA 2 0 X 0 0 0 ROSCOE W SHIPLETT MAI 2 0 X 0 0 0 KERN G SLUCTER MAI SRA 2 0 X 0 0 0 RUSSELL K STERLING MAI 2 0 X 0 0 0 DETLEF H WEILER MAI 2 0 X 0 0 0 SHAWN E WILSON MAI 2 0 X 0 0 0 SANDRA M WINTER MAI 2 0 X 0 0 0 GARY S WRIGHT MAI SRA 2 0 X 0 0 0 FREDERICK H GRUBBE 60 0 X 324159 0 46140 WILLIAM T ZIMMERMANN 50 0 X 246933 0 23427 JEFFREY E LISKAR 50 0 X 251915 0 38351 WILLIAM GARBER 37.50 0 X 186163 0 22882 KENNETH CHITESTER 37.50 0 X 138538 0 11225 SHEILA BARNES 37.50 0 X 128892 0 16437 STEPHANIE COLEMAN 37.50 0 X 125706 0 15302 BEATA SWACHA 37.50 0 X 123483 0 7316 1896599 0 181080 10 0 1 0 Rich Feuer Group 1133 Connecticut Ave NW 5th Floor Washington DC 20036 Consulting Fees 130189 Thomas R Kirby 9420 Steeplehill Drive Las Vegas NV 89117 Instructor Fees 110990 John P Wintrol LLC 2000 M Street NW Suite 700 Washington DC 20036 Legal Fees 107266 Appraisal Consultants 2570 Rice Street Roseville MN 55113 Instructor Fees 103670 4 0 0 0 0 0 89500 0 89500 Membership Dues & Fees 541900 10304149 10304149 0 0 Education & Regulation Fees 611600 6369001 6369001 0 0 Publication Sales 511130 799478 799478 0 0 Admission & Grading Fees 611600 744175 744175 0 0 Periodicals 511120 197050 81637 115413 0 279712 0 0 279712 18693565 63822 0 0 63822 0 0 0 0 280942 0 0 280942 0 0 0 0 0 0 0 0 0 0 10592 0 0 0 10592 0 10592 0 0 10592 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Website Advertising 541900 7925 0 7925 0 67075 0 0 67075 75000 19213421 18298440 123338 702143 0 10375 0 0 1334146 0 6033979 243493 661006 523692 66938 287623 39700 120162 0 10000 505417 596367 822551 293359 284530 628212 835620 0 2002884 12508 0 542336 150086 Outside Services 537835 Printing and Publications 212042 Credit Card Fees 250451 Education Certification and License Fees 726386 290832 18022530 0 0 0 4935840 6170693 1395904 1805910 0 0 186226 71203 0 0 0 0 0 0 148426 117435 321891 342862 5892046 3576454 2453055 2315592 4368364 5153739 0 0 0 0 0 0 427905 486511 14237611 16463945 1462165 1373976 0 0 4458301 4823430 0 0 0 0 584209 590163 0 0 0 0 2655386 3366057 9160061 10153626 X 5066988 6282257 10562 28062 0 0 5077550 6310319 14237611 16463945 1190891 31878 0 10000 0 0 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 Appraisal Institute PAC 200 W Madison Street Suite 1500 Chicago IL 60606 363739643 0 25565 0 0 0 10304149 342763 0 342763 362992 0 -20229 SchC_P1A_S00_L01 Schedule C, Part I-A, Line 1 Administrative costs of the PAC are paid directly by AI. SchC_P1C_S00_L05 Schedule C, Part I-C, Line 5 Appraisal Institute PAC (AI PAC) provides a means for designated members, candidates, and affiliates to participate in the political process on a national level. Contributions can be made by individual designated members, candidates, and 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. 0 0 0 0 0 0 0 0 1583171 140672 1442499 0 965641 384755 580886 0 3343234 3051027 292207 2315592 0 457b Plan Liability 106587 Capital Lease Obligations 81015 Deferred Rent Credit 761754 Tenant Improvement Allowance 1416718 Deferred Dues - Chapters 816260 Due to Others 183723 3366057 X 19245299 41878 0 0 0 41878 19203421 10000 0 10000 19213421 18012530 0 0 0 0 0 18012530 10000 0 10000 18022530 SchD_P10_S00_L02 Schedule D, Part X, Line 2 The Appraisal Institute (AI) 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. No provision has been made for income taxes as AI had no material unrelated business income. AI Holdings is a for-profit subsidiary of AI, which did not have taxable income in 2012 or 2011. Therefore, no income taxes have been recorded. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by AI and recognize a tax liability if AI 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 AI, and has concluded that as of December 31, 2012 and 2011, 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. AI is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to 2009. East Asia and the Pacific 0 0 Program Services Education & Admission 211761 0 0 211761 0 0 0 0 0 0 SchF_P01_S00_L03 Schedule F, 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 The Appraisal Journal Award for Best Articles 3 7000 0 Cash N/A Scholarships-AI Courses-Enrolled Students 7 3375 0 Cash N/A SchI_P01_S00_L02 Schedule I, Part I, Line 2 Scholarships are awarded to eligible students upon the successful enrollment into Appraisal Institute courses. X 1 1 X X 0 0 0 FREDERICK H GRUBBE 305159 0 19000 0 17000 0 12500 0 16640 0 370299 0 0 0 JEFFREY E LISKAR 240431 0 11484 0 10000 0 11576 0 16775 0 290266 0 0 0 WILLIAM T ZIMMERMANN 231409 0 15524 0 11241 0 11241 0 945 0 270360 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a Travel and Expense Policy 3.05 - Executive Committee Spouse - In accordance with IRS guidelines, spouse expenses for travel, meals and lodging are generally not reimbursable by the Appraisal Institute. Exceptions include instances where there is a real business purpose, in conformance with Appraisal Institute guidelines, for the presence of a spouse at an Appraisal Institute function or meeting, or at an approved function or meeting that the Appraisal Institute participates. The elected officers and CEO of the Appraisal Institute may travel with their spouses to meetings of the Board of Directors, Regional Meetings of the Appraisal Institute, and other meetings. The Appraisal Institute will reimburse ordinary and necessary expenses in accordance with established policy. Officers may elect to cover the cost of spouse travel to meetings with funds from the Officer's pooled travel budget. Spousal travel reimbursements are typically treated as taxable income to the Officers and Directors in accordance with IRS rules. SchJ_P01_S00_L03 Schedule J, Part I, Line 3 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 for all Appraisal Institute positions (including the CEO and other positions). Position grades and salary ranges are based on the market rates of organizations of similar size and budget. The CEO approves all staff salaries. The same evaluation form is used for the CEO as well as the rest of the staff. The Past President of the organization is responsible for completing the CEO's evaluation and can solicit input from the other officers. The Executive Committee approves changes to the CEO's compensation package. F990_P03_S00_L00a Form 990, Part III (Cont. 1) The Appraisal Institute is an Illinois not for profit corporation organized under the Illinois General Not For Profit Corporation Act of 1986, as amended, (the "Act") for general education, research and professional association purposes relating to appraisal services. The objectives of the Appraisal Institute are to serve the general public; to establish, maintain and publicize minimum requirements for designated membership and confer appropriate membership designations to properly qualified appraisers; to formulate and maintain a Code of Professional Ethics and Standards of Professional Appraisal Practice for the real estate appraisal profession and enforce that Code and Standards on and for Members, Candidates, Practicing Affiliates and Affiliates of the Appraisal Institute; to identify the body of knowledge in which the appraisal profession operates; to establish, maintain and publicize educational standards and the means for education for its Members, Candidates, Practicing Affiliates, Affiliates and others interested in the appraisal and real estate professions; to promote research and publication of materials that further the education and professional needs of the appraisal and real estate professions; to establish and maintain effective liaison with governmental agencies concerned with appraising and represent itself in legislative and regulatory matters concerning the appraisal and real estate professions; to provide and maintain an effective and responsive organization and staff that serves the needs of Members, Candidates, Practicing Affiliates and Affiliates; to conduct meetings, conferences, seminars, educational courses and other activities that further the objectives of the Appraisal Institute; and to cooperate with other organizations on issues of mutual concern such as legislative and regulatory matters, education and research activities. F990_P06_S0A_L04 Form 990, Part VI, Section A, Line 4 The Appraisal Institute modified the Bylaws to include the Candidate for Designation program. F990_P06_S0A_L06 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. F990_P06_S0A_L07a Form 990, Part VI, Section A, Line 7a The Board of Directors shall consist of: 1) the officers of the Appraisal Institute; 2) the Chair and Vice Chair of each Regional Committee; 3) one International Designated Member in good standing elected by the Board of Directors; 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; and 5) the Chief Executive Officer of the Appraisal Institute. The Regional Committee, consisting of eligible Designated Members and/or Candidates, shall hold elections for all Regional positions, including the Third Regional Director, at a regular meeting the first of each year. A Regional Director shall serve in the following positions during his or her term: 1) in the first year of his or her term, the Regional Director shall serve as the Third Regional Director; 2) in the second and third years of his or her term, the Regional Director shall serve as Vice Chair of the Region and a national Director from the Region; and 3) in the fourth and fifth years of his or her term, the Regional Director shall serve as Chair of the Region and a national Director from the Region. F990_P06_S0A_L07b Form 990, Part VI, Section A, Line 7b Designated Members in good standing, except Temporarily Non-Practicing Members, 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, except Temporarily Non-Practicing Members, shall have one (1) vote and shall be entitled to attend membership meetings and vote by proxy. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b 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. Prior to finalizing the 990, it is reviewed by outside accountants. F990_P06_S0B_L12c 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. F990_P06_S0B_L15 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 for all Appraisal Institute positions (including the CEO and other positions). Position grades and salary ranges are based on the market rates of organizations of similar size and budget. The CEO approves all salaries. The same evaluation form is used for the CEO as well as the rest of the staff. Also, all staff must complete a self-evaluation. The Past President of the organization is responsible for completing the CEO's evaluation and can solicit input from the other Officers. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 Appraisal Institute Bylaws are available to the public on our website at www.appraisalinstitute.org. 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. Appraisal Institute Education Trust 200 W Madison Street Suite 1500 Chicago IL 60606 366076334 Grants to Eligible Individuals IL 501(c)(3) 509(a)(3) N/A 0 Appraisal Institute Relief Foundation 200 W Madison Street Suite 1500 Chicago IL 60606 203950855 Grants to Eligible Individuals IL 501(c)(3) 509(a)(1) N/A 0 Appraisal Institute Political Action Committee 200 W Madison Street Suite 1500 Chicago IL 60606 Political Action Committee IL 527 N/A 0 Appraisers Liability Ins Program 200 W Madison Street Suite 1500 Chicago IL 60606 363633085 Insurance Administration IL N/A C 0 2157 1 Appraisal Institute Holdings Inc 200 W Madison Street Suite 1500 Chicago IL 60606 141898951 Holding Company DE N/A C 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 Appraisers Liability Ins Program a-iii 226928 Appraisal Institute Education Trust c 72000 Appraisal Institute Region I 200 W Madison Street Suite 1500 Chicago IL 60606 931085131 APPR Appraisal Institute Region II 200 W Madison Street Suite 1500 Chicago IL 60606 956007073 APPR Appraisal Institute Region III 200 W Madison Street Suite 1500 Chicago IL 60606 363827426 APPR Appraisal Institute Region IV 200 W Madison Street Suite 1500 Chicago IL 60606 113111524 APPR Appraisal Institute Region V 200 W Madison Street Suite 1500 Chicago IL 60606 351844185 APPR Appraisal Institute Region VI 200 W Madison Street Suite 1500 Chicago IL 60606 363967949 APPR Appraisal Institute Region VII 200 W Madison Street Suite 1500 Chicago IL 60606 990294918 APPR Appraisal Institute Region VIII 200 W Madison Street Suite 1500 Chicago IL 60606 760370518 APPR Appraisal Institute Region IX 200 W Madison Street Suite 1500 Chicago IL 60606 581409476 APPR Appraisal Institute Region X 200 W Madison Street Suite 1500 Chicago IL 60606 650335543 APPR