2023-09-13T14:51:24-05:00 2022-12-31 366055558 GRANT THRONTON LLP 757 THIRD AVE 3RD FLOOR NEW YORK NY 100172013 990 2022-01-01 834639721 USGA FOUNDATION USGA 9082342300 77 LIBERTY CORNER ROAD LIBERTY CORNER NJ 07938 CHARLIE PAGNAM EXECUTIVE DIRECTOR & CPO 9082342300 2023-09-13 1 CHARLIE PAGNAM XXX-XX-XXXX 0 DANIEL ROMANO P00504182 2125990100 3 AAL1 IAL1 2022 2023-04-26 12:10:37Z CHARLIE PAGNAM 77 LIBERTY CORNER ROAD LIBERTY CORNER NJ 07938 10603393 0 X WWW.USGA.ORG X 2019 DE THE FOUNDATION'S PRIMARY OBJECTIVE IS TO PROVIDE FINANCIAL (CONTINUED ON SCHEDULE O).SUPPORT TO THE USGA AS IT CARRIES OUT ITS PROGRAMS TO ADVANCE ITS CHARITABLE MISSION. 7 3 0 3 0 0 4090889 5706886 0 0 64499 116558 -3492 -4496 4151896 5818948 0 0 0 0 811414 806674 31345 6000 6000 1960434 1649213 2803193 2461887 1348703 3357061 5745088 14461419 4852904 10686283 892184 3775136 X THE PURPOSES FOR WHICH THE CORPORATION IS FORMED ARE EXCLUSIVELY CHARITABLE, SCIENTIFIC AND EDUCATIONAL WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986. (CONTINUED ON SCHEDULE O).AS AMENDED, (THE CODE), AND SHALL CONSIST SOLELY OF CONDUCTING OR SUPPORTING ACTIVITIES FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, OR TO CARRY OUT THE PURPOSE OF THE UNITED STATES GOLF ASSOCIATION, AN ORGANIZATION DESCRIBED IN SECTIONS 501(C)(3) AND 509(A)(1) OF THE CODE. THE CORPORATION SHALL ACCOMPLISH THESE PROGRAMS, ACTIVITIES AND PROJECTS DESIGNED TO ACCOMPLISH THE CHARITABLE, SCIENTIFIC AND EDUCATIONAL PURPOSES OF THE UNITED STATES GOLF ASSOCIATION TO PROMOTE AND CONSERVE THE BEST INTERESTS AND THE TRUE SPIRIT OF THE GAME OF GOLF AS EMBODIED IN ITS ANCIENT AND HONORABLE TRADITIONS. 0 0 2441458 0 0 THE USGA FOUNDATION SHALL ACCOMPLISH THESE PURPOSES BY PROVIDING FINANCIAL SUPPORT TO THE UNITED STATES GOLF ASSOCIATION AND ENGAGING IN PROGRAMS, ACTIVITIES AND PROJECTS DESIGNED TO ACCOMPLISH THE CHARITABLE, SCIENTIFIC AND EDUCATIONAL PURPOSES OF THE UNITED STATES GOLF ASSOCIATION. 2441458 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 X 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 7 3 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN KS IA KY LA ME MD MA MI MN NE NV NH NJ NM NY NC OH OK OR PA PR RI SC SD TN TX UT VT VA WV WA WI WY X X X SUSAN PIKITCH CFO 9082342300 77 LIBERTY CORNER ROAD LIBERTY CORNER NJ 07938 MIKE WHAN DIRECTOR 1.00 60.00 X 0 1703585 150791 SUSAN PIKITCH CHIEF FINANCIAL OFFICER 1.00 60.00 X X 0 685551 80966 CHARLIE PAGNAM EXECUTIVE DIRECTOR & CPO 50.00 0.00 X X 610345 0 80528 CHRISTOPHER FRASER SECRETARY 1.00 60.00 X X 0 689872 80910 ANTHONY K ANDERSON CHAIRMAN, DIRECTOR 1.00 10.00 X X 0 0 0 J STUART FRANCIS DIRECTOR 1.00 10.00 X 0 0 0 CATHY ENGELBERT DIRECTOR 1.00 10.00 X 0 0 0 MICHAEL DAVIS FORMER DIRECTOR 0.00 0.00 X 0 2305249 2250 610345 5384257 395445 1 1 1 0 0 5706886 610759 5706886 53310 53310 4843197 4779949 63248 63248 63248 4496 -4496 -4496 5818948 0 0 112062 690873 690873 32945 32945 82856 82856 6000 6000 5062 5062 42958 42958 8800 8800 114350 114350 159643 159643 ALLOCATED SUPPORT EXPEN 1086459 1086459 BAD DEBTS 200000 200000 GENERAL GIFTS 9733 9733 BANK CHARGES 9367 9367 12841 12841 2461887 2441458 14429 6000 218178 858317 1710704 2438646 956341 4686932 2859865 6477524 5745088 14461419 4852904 10686283 4852904 10686283 X 892184 3775136 892184 3775136 5745088 14461419 3357061 -474109 0 X 0 1 X 1 0 X X 1 USGA 131427105 7 1 1700000 0 1 1700000 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 956341 4095000 -364409 0 0 0 4686932 402037 431354 122950 0 0 0 956341 0 402037 0 0 0 0 402037 0 0 0 0 0 0 0 0 0 0 0 0 1.00000 0.00000 0.00000 0 0 0 DUE FROM AFFILIATE 5922552 UNDEPOSITED FUNDS 554972 6477524 DUE TO AFFILIATE 10686283 10686283 X PART V, LINE 4: ENDOWMENT FUNDS THE INTENDED USE OF THE ORGANIZATION'S ENDOWMENT FUNDS IS TO DEVELOP, SUPPORT AND EXTEND THE PROGRAMS AND ACTIVITIES OF UNITED STATES GOLF ASSOCIATION. PART X, LINE 2: USGA FOUNDATION HAS BEEN RECOGNIZED AS A PUBLIC CHARITY GENERALLY EXEMPT FROM FEDERAL INCOME TAXATION UNDER PROVISIONS OF SECTION 501(A) AS DESCRIBED IN SECTION 501(C)(3) OF THE CODE OF 1986, AS AMENDED. USGA IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. USGA FOUNDATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND, TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. USGA FOUNDATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE INCOME TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS "MORE LIKELY THAN NOT" TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. X X X X 1 WASHBURN & MCGOLDBRICK LLC 24 NORTH BRYN MAWR AVENUE 252 BRYN MAWR PA 19010 FUNDRAISING ACTIVITY 0 0 6000 -6000 6000 -6000 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY DC PR SCHEDULE G, PART I, LINE 2B WASHBURN & MCGOLDRICK, LLC PROVIDES EDITORIAL, CREATIVE AND MARKETING TEXT THAT DESCRIBES AND PROMOTES THE USGA FOUNDATION EFFORTS SPECIFICALLY IN PLANNED GIVING. GROSS RECEIPTS SPECIFICALLY ATTRIBUTABLE TO THEIR ADVICE CANNOT BE CALCULATED. THEREFORE, NO GROSS RECEIPTS HAVE BEEN REPORTED. WASHBURN & MCGOLDRICK, LLC'S SERVICES ARE USED FOR CONSULTING BUT DOES NOT FUNDRAISE ON BEHALF OF THE USGA FOUNDATION. 0 1 0 0 1 0 1 0 0 MICHAEL DAVIS FORMER DIRECTOR 0 17308 0 2147749 0 140192 0 2250 0 0 0 2307499 0 1731949 MIKE WHAN DIRECTOR 0 1037671 0 650000 0 15914 0 119082 0 31709 0 1854376 0 0 CHRISTOPHER FRASER SECRETARY 0 457766 0 131348 0 100758 0 56650 0 24260 0 770782 0 0 SUSAN PIKITCH CHIEF FINANCIAL OFFICER 0 495292 0 144008 0 46251 0 56650 0 24316 0 766517 0 0 CHARLIE PAGNAM EXECUTIVE DIRECTOR & CPO 495932 0 105500 0 8913 0 56650 0 23878 0 690873 0 0 0 PART I, LINE 3: THE USGA FOUNDATION RELIED ON UNITED STATES GOLF ASSOCIATION, A RELATED ORGANIZATION THAT USED ONE OR MORE OF THE METHODS LISTED ON LINE 3 TO ESTABLISH THE TOP MANAGEMENT OFFICER'S COMPENSATION. PLEASE REFER TO SCHEDULE O NARRATIVE REGARDING PART VI LINE 15 - COMPENSATION REVIEW PROCEDURE FOR DETAILS. SCHEDULE J, PART I, LINE 4B THE 457(F) NONQUALIFIED DEFINED CONTRIBUTION PLAN FOR THE UNITED STATES GOLF ASSOCIATION (THE "457(F) DC PLAN") IS A TAX FAVORED, NON-QUALIFIED SUPPLEMENTAL RETIREMENT PROGRAM OFFERED TO HIGHLY COMPENSATED SENIOR MANAGEMENT. THIS PLAN ADDRESSES THE POTENTIAL SHORTFALL FOR SENIOR MANAGEMENT THAT MAY RESULT FROM THE INTERNAL REVENUE SERVICE LIMITS ASSOCIATED WITH QUALIFIED RETIREMENT PLANS. THOSE LIMITS INCLUDE COMPENSATION CAPS FOR THE USGA PENSION PLAN AND USGA DEFINED CONTRIBUTION RETIREMENT PLAN. PURSUANT TO REGULATIONS CONTAINED IN THE IRS CODE GOVERNING NOT-FOR-PROFIT EXECUTIVE COMPENSATION PLANS, ACCRUED BENEFITS BECOME TAXABLE TO THE EMPLOYEE AT VESTING. THE VESTING PERIOD IS FIVE YEARS. ONCE VESTED, THE ANNUAL ACCRUED BENEFIT IS RECORDED AS INCOME, EVEN THOUGH THE INDIVIDUAL DID NOT RECEIVE THE BENEFIT. THESE AMOUNTS ARE INCLUDED IN OTHER REPORTABLE COMPENSATION FOR VESTED PARTICIPANTS. THE BENEFIT IS PAYABLE UPON TERMINATION FROM THE USGA. THE ACCRUED, NON-VESTED BENEFITS ARE REPORTED AS DEFERRED COMPENSATION ON SCHEDULE J COLUMN (C). THE FOLLOWING PEOPLE RECEIVED CONTRIBUTIONS TO THE USGA 457(F) PLAN IN 2022: (ALL NAMED PERSONS ON SCHEDULE J, PART II). SECTION 457(F) DEFERRED COMPENSATION PLAN, VESTED PORTION WHICH IS REPORTED ON SCHEDULE J PART II COLUMN B(III): - SUSAN PIKITCH $24,478 - CHRISTOPHER FRASER $79,905 SECTION 457(F) DEFERRED COMPENSATION PLAN, NON-VESTED PORTION WHICH IS REPORTED ON SCHEDULE J PART II COLUMN C: - MIKE WHAN $62,432 SCHEDULE J, PART I, LINES 5 & 6: CEO AND SENIOR LEADERSHIP TEAM PARTICIPATE IN AN INCENTIVE COMPENSATION PLAN WITH METRICS MEASURED AGAINST STRATEGIC ORGANIZATIONAL OBJECTIVES AND FINANCIAL RESULTS WHICH INCLUDE REVENUE AND OTHER METRICS AS APPROVED BY THE EXECUTIVE COMMITTEE. INCENTIVE COMPENSATION REQUIRES INPUT FROM COMPENSATION COMMITTEE, A STANDING COMMITTEE OF THE ORGANIZATIONS EXECUTIVE COMMITTEE, AND APPROVAL BY THE USGA BOARD PRESIDENT. INCENTIVE PLAN MAY NOT EXCEED BUDGET. TOTAL COMPENSATION (BASE SALARY AND INCENTIVE COMPENSATION PLAN) FOR THE CEO AND SENIOR LEADERSHIP TEAM IS EXTERNALLY BENCHMARKED ON A REGULAR BASIS. THE BENCHMARKING PROCESS IS CONDUCTED BY A THIRD PARTY AND REVIEWED BY THE USGA BOARD PRESIDENT. PART II - COMPENSATION OF CHARLIE PAGNAM CHARLIE PAGNAM REPORTED IN THE USGA FOUNDATION FORM 990 IS PAID BY UNITED STATES GOLF ASSOCIATION, THE SUPPORTED ORGANIZATION OF USGA FOUNDATION. ON PART VII AND SCHEDULE J, ALL COMPENSATION OF CHARLIE PAGNAM IS BEING REPORTED AS HAVING BEEN PAID BY USGA FOUNDATION. FURTHERMORE, THE INDIVIDUAL'S COMPENSATION IS REIMBURSED BY USGA FOUNDATION, BASED ON SERVICES RENDERED TO THAT ORGANIZATION IN THE INTEREST OF CLARITY. USGA FOUNDATION IS DISCLOSING THE SALARY AND BENEFIT AMOUNTS AS HAVING BEEN REIMBURSED BY USGA FOUNDATION TO UNITED STATES GOLF ASSOCIATION. PART III: OTHER REPORTABLE COMPENSATION: AMOUNTS INCLUDED IN OTHER REPORTABLE COMPENSATION INCLUDE AMOUNTS ATTRIBUTABLE TO LIFE, LONG TERM DISABILITY & LONG-TERM CARE INSURANCES, CHILD SCHOLARSHIPS, PERSONAL MILEAGE AND AUTOMOBILE EXPENSES, AS WELL AS NON-CASH VESTED BENEFITS IN THE USGA 457(F) NON-QUALIFIED SUPPLEMENTAL RETIREMENT PLAN. X 6 610759 FMV 0 1 0 PART I, COLUMN (B): NUMBER OF CONTRIBUTORS OR ITEMS CONTRIBUTED USGA FOUNDATION IS REPORTING 6 CONTRIBUTIONS RECEIVED. FORM 990, PART III, LINE 1 THE USGA CHAMPIONS AND ADVANCES THE GAME OF GOLF. IT SERVES MILLIONS OF GOLFERS AND THOUSANDS OF GOLF COURSES BOTH IN THE UNITED STATES AND AROUND THE WORLD THROUGH PROGRAMS AND SERVICES THAT PROMOTE A THRIVING, WELCOMING AND SUSTAINABLE GAME. THE USGA FOUNDATION SERVES AS THE MEMBER ENGAGEMENT AND PHILANTHROPIC GIVING PROGRAM WITHIN THE USGA. IT SECURES RESOURCES TO FULFILL THE USGA'S COMMITMENT TO CONTINUALLY INVEST IN THE GAME'S LONG-TERM HEALTH. THROUGH THE FOUNDATION, THE USGA CONTINUES TO FUND SCIENCE, RESEARCH AND INNOVATION TO KEEP THE GAME ENVIRONMENTALLY AND FINANCIALLY STABLE, WHILE IMPROVING THE GOLFER EXPERIENCE. THE ASSOCIATION IS ALSO COMMITTED TO GROWING THE AMATEUR GAME, PROVIDING AN OPEN OPPORTUNITY FOR GOLFERS TO ACHIEVE GREATNESS AND INSPIRE OTHERS. FINANCIAL SUPPORT THROUGH THE FOUNDATION ALSO CELEBRATES AND PRESERVES THE GAME'S REMARKABLE AND RICH HISTORY THROUGH ITS EXTENSIVE COLLECTIONS AND PROGRAMMING AT THE USGA GOLF MUSEUM AND LIBRARY, AMONG OTHER TRANSFORMATIVE PROJECTS. THE USGA EXISTS FOR THE GOOD OF THE GAME. FOR MORE INFORMATION ON THE USGA'S PROGRAMS FOR GOLF, SEE USGA.ORG. FORM 990, PART V, LINE 2B: USGA FOUNDATION DOES NOT HAVE ITS OWN EMPLOYEES; IT SHARES EMPLOYEES WITH ITS PARENT ORGANIZATION, UNITED STATES GOLF ASSOCIATION (EIN# 13-1427105) VIA A COMMON PAYMASTER ARRANGEMENT. ALL W-2S AND REQUIRED EMPLOYMENT TAX RETURNS ARE FILED BY UNITED STATES GOLF ASSOCIATION. FORM 990, PART VI, SECTION A, LINE 2 BUSINESS RELATIONSHIP SOME OF USGA FOUNDATION'S CURRENT OFFICERS AND DIRECTORS, AS REPORTED IN FORM 990 PART VII-A, ARE SERVING AS BOARD MEMBERS AND/OR OFFICERS OF UNITED STATES GOLF ASSOCIATION, THE SUPPORTED ORGANIZATION OF USGA FOUNDATION, DURING TAX YEAR 2022. FORM 990, PART VI, LINE 3: DELEGATION OF CONTROL OVER MANAGEMENT DUTIES UNITED STATES GOLF ASSOCIATION HAS ASSUMED RESPONSIBILITY FOR THE ADMINISTRATION AND MANAGEMENT OF USGA FOUNDATION. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OF THE ORGANIZATION & ELECTION OF GOVERNANCE BODY UNITED STATES GOLF ASSOCIATION IS THE SETTLOR AND THE SOLE MEMBER OF USGA FOUNDATION AND HAS THE RIGHT TO APPOINT THE TRUSTEES OF USGA FOUNDATION. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE ORGANIZATION & ELECTION OF GOVERNANCE BODY UNITED STATES GOLF ASSOCIATION IS THE SETTLOR AND THE SOLE MEMBER OF USGA FOUNDATION AND HAS THE RIGHT TO APPOINT THE TRUSTEES OF USGA FOUNDATION. FORM 990, PART VI, SECTION A, LINE 7B THE USGA BY-LAWS PROVIDE THAT THEY MAY BE ALTERED OR REPEALED BY MEMBER CLUBS ACTING PURSUANT TO THE BY-LAWS. FORM 990, PART VI, SECTION B, LINE 11B THE FEDERAL FORM 990 IS COMPILED BY THE USGA FOUNDATION'S TAX FIRM GRANT THORNTON. AFTER THE USGA'S TAX FIRM GRANT THORNTON HAS THOROUGHLY REVIEWED THE FEDERAL FORM 990 AND DEEMED IT TO BE ACCURATE AND COMPLETE, THE FEDERAL FORM 990 IS REVIEWED WITH THE CEO AND THE AUDIT COMMITTEE. BEFORE THE FEDERAL FORM 990 IS SIGNED BY AN OFFICER AND SUBMITTED TO THE IRS, A FULL COPY OF THE DOCUMENT, INCLUDING ALL ATTACHMENTS, IS PROVIDED TO EACH VOTING MEMBER OF THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 12C THE USGA FOUNDATION REQUIRES EXECUTIVE COMMITTEE MEMBERS AND USGA FOUNDATION-DESIGNATED EMPLOYEES TO ADMINISTER THEIR AFFAIRS HONESTLY AND EFFICIENTLY, EXERCISING DUE CARE, SKILL AND JUDGMENT FOR THE BENEFIT OF THE USGA. IT IS THE RESPONSIBILITY OF EXECUTIVE COMMITTEE MEMBERS AND USGA EMPLOYEES TO MAKE A FULL DISCLOSURE OF ANY PERSONAL INVOLVEMENT WHICH MIGHT RESULT IN A CONFLICT OF INTEREST OR THE APPEARANCE OF A CONFLICT OF INTEREST ON THEIR PART. SUCH DISCLOSURES ARE SUBMITTED TO THE AUDIT COMMITTEE CHAIR AND/OR THE CHIEF LEGAL OFFICER FOR REVIEW AND CONSIDERATION AS PER STATED PROCEDURES. ADDITIONALLY, ONCE A YEAR, THE USGA REQUIRES EXECUTIVE COMMITTEE MEMBERS AND USGA FOUNDATION-DESIGNATED EMPLOYEES TO REVIEW THE USGA FOUNDATION'S CONFLICT OF INTEREST POLICY AND SUBMIT A STATEMENT ATTESTING TO THEIR UNDERSTANDING OF AND COMPLIANCE WITH THE POLICY. ANY CONFLICT OF INTEREST OR THE APPEARANCE OF A CONFLICT OF INTEREST MUST BE INCLUDED ON THE SUBMITTED STATEMENT. THE AUDIT COMMITTEE REVIEWS THE STATEMENTS AND MAKES ANY NECESSARY DECISIONS TO MANAGE AND/OR ELIMINATE THE CONFLICTS. FORM 990, PART VI SECTION B, LINE 13: WHISTLEBLOWER POLICY UNITED STATES GOLF ASSOCIATION, THE SUPPORTED ORGANIZATION, HAS A WRITTEN WHISTLEBLOWER POLICY WHICH APPLIES TO USGA FOUNDATION. FORM 990, PART VI, SECTION B, LINE 14: DOCUMENT RETENTION POLICY THE UNITED STATES GOLF ASSOCIATION'S DOCUMENT RETENTION AND DESTRUCTION POLICY APPLIES TO ALL BOOKS AND RECORDS HELD BY THE UNITED STATES GOLF ASSOCIATION, INCLUDING BOOKS AND RECORDS OF THE USGA FOUNDATION. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION POLICY SOME OF USGA FOUNDATION'S CURRENT OFFICERS AND DIRECTORS, ARE OFFICERS OR KEY EMPLOYEES OF UNITED STATES GOLF ASSOCIATION. AS SUCH, THEIR COMPENSATION IS REVIEWED AND APPROVED BY A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT TRUSTEES. ON A PERIODIC BASIS, THE USGA DOES A THOROUGH REVIEW OF COMPENSATION FOR THE CEO AND THE EXECUTIVE TEAM. THIS REVIEW INCLUDES A COMPENSATION SURVEY BY AN INDEPENDENT COMPENSATION CONSULTANT, AND CONSIDERATION OF COMPARABILITY DATA OBTAINED FROM OTHER SOURCES. THE SURVEY AND DATA ARE CAREFULLY CONSIDERED BY THE USGA'S COMPENSATION COMMITTEE TO ENSURE THAT COMPENSATION IS REASONABLE AND APPROPRIATE. MERCER PREPARED AN "EXECUTIVE CASH COMPENSATION UPDATE" (INTERMEDIATE SANCTIONS) REPORT DATED DECEMBER 31,2022. THIS REPORT WOULD HAVE BEEN USED TO MAKE COMPENSATION DECISIONS FOR USGA FOUNDATION EXECUTIVES FOR CALENDAR YEAR 2023. SUBSTANTIATION OF THE DELIBERATION AND DECISION OF THE COMPENSATION COMMITTEE IS MAINTAINED IN THE MEETING MINUTES. IN ADDITION, EMPLOYEES OF THE USGA FOUNDATION UNDERGO A THOROUGH EVALUATION PROCESS AT THE END OF EACH YEAR. PERFORMANCE AND GOALS ARE CAREFULLY REVIEWED AND DOCUMENTED, THEN DISCUSSED WITH THE EMPLOYEE. MERIT INCREASES AND BONUS AWARDS ARE DETERMINED BASED ON THESE EVALUATIONS. FORM 990, PART VI, SECTION B, LINE 16B: JOINT VENTURE POLICY THE USGA FOUNDATION DOES NOT CURRENTLY HAVE ANY JOINT VENTURES, BUT MAINTAIN A JOINT VENTURES POLICY TO ENSURE THAT ALL ARRANGEMENTS ARE CONSISTENT WITH THE ORGANIZATION'S TAX EXEMPT STATUS UNDER IRC SECTION 501(C)(3). SPECIFICALLY, THE PURPOSE OF THE POLICY IS TO SET FORTH GUIDELINES TO HELP ENSURE THAT ARRANGEMENTS WITH FOR-PROFIT ENTITIES WILL NOT JEOPARDIZE THE USGA FOUNDATION'S TAX EXEMPT STATUS. FORM 990, PART VI, SECTION C, LINE 19 THE USGA FOUNDATION'S MOST RECENT FORM 990 AND AUDITED FINANCIAL STATEMENTS ARE VIEWABLE BY THE PUBLIC, AS WELL AS THE ASSOCIATION'S ANNUAL IMPACT REPORT, ON USGA.ORG EACH YEAR. THE USGA FOUNDATION MAKES THE FOLLOWING DOCUMENTS AVAILABLE TO THE PUBLIC BY PROVIDING THEM TO GUIDESTAR TO POST ON THEIR WEBSITE AT WWW.GUIDESTAR.ORG: IRS LETTER OF DETERMINATION; FEDERAL FORM 1023; FEDERAL FORM 990; FEDERAL FORM 990-T; AUDITED FINANCIAL STATEMENTS. THE USGA ALSO MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC "UPON REQUEST" AT ITS HEADQUARTERS LOCATION IN NEW JERSEY, DURING NORMAL BUSINESS HOURS. FORM 990, PART IX, LINE 24 SHARED SERVICE ARRANGEMENT USGA FOUNDATION DOES NOT HAVE ITS OWN EMPLOYEES; IT SHARES EMPLOYEES WITH ITS PARENT ORGANIZATION, UNITED STATES GOLF ASSOCIATION (EIN# 13-1427105) VIA A COMMON PAYMASTER ARRANGEMENT. ALL W-2S AND REQUIRED EMPLOYMENT TAX RETURNS ARE FILED BY UNITED STATES GOLF ASSOCIATION. THE USGA FOUNDATION AND UNITED STATES GOLF ASSOCIATION ARRANGED A SHARED SERVICE AGREEMENT OUTLINING THE SERVICES AND APPROPRIATE ALLOCATION OF COSTS. USGA FOUNDATION WILL REIMBURSE THE UNITED STATES GOLF ASSOCIATION, FOR THE COST INCURRED BY THE PARENT ORGANIZATION FOR PROVIDING EMPLOYEE AND OTHER SERVICES. UNITED STATES GOLF ASSOCIATION 77 LIBERTY CORNER ROAD LIBERTY CORNER NJ 07938 131427105 PROFESSIONAL ASSOCIATION NJ 501(C)(3) LINE 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 1 0