2025-06-16T03:45:28-05:00 2024-07-31 861065772 DELOITTE TAX LLP 695 TOWN CENTER DRIVE SUITE 1000 COSTA MESA CA 92626 990 2023-08-01 954516666 NARAS PROPERTIES INC NARA 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 WAYNE J ZAHNER CHIEF FINANCIAL OFFICER 3103923777 2025-06-09 1 0 JESSICA KARANTONIS P00969387 7144367100 2023 2025-03-06 01:10:19Z WAYNE J ZAHNER 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 5260216 0 X N/A X 1994 CA TO HOLD PROPERTY AND COLLECT RENT FOR THE BENEFIT OF THE RECORDING ACADEMY. 3 0 0 0 0 0 0 0 5186275 5260216 0 0 0 0 5186275 5260216 0 0 0 0 0 0 0 0 0 1708206 1624564 1708206 1624564 3478069 3635652 48820821 51200599 1255874 0 47564947 51200599 TO HOLD REAL PROPERTY, COLLECT RENT THEREFROM AND TURN OVER THE ENTIRE AMOUNT THEREOF, LESS EXPENSES, TO THE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. 0 0 THE ORGANIZATION COLLECTS INCOME ON REAL PROPERTIES FOR THE BENEFIT OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 X 3 0 1 0 0 0 1 1 1 1 0 0 0 1 1 1 1 1 1 0 0 0 CA NY X WAYNE J ZAHNER 3103923777 3030 OLYMPIC BOULEVARD SANTA MONICA CA 904045073 HARVEY MASON JR CHIEF EXECUTIVE OFFICER 1.00 40.00 X X 0 1286777 16996 BRANDEN CHAPMAN DIRECTOR 1.00 40.00 X 0 544144 34018 WAYNE J ZAHNER CHIEF FINANCIAL OFFICER 1.00 40.00 X X 0 449249 31203 0 2280170 82217 0 0 1 0 0 RENTAL INCOME 531120 5260216 5260216 5260216 5260216 5260216 0 0 3418 55416 1564264 TAXES AND LICENSES 1466 1624564 115369 221902 65310241 18164785 48699937 47145456 5515 3833241 48820821 51200599 48242 1207632 0 1255874 0 X 47564947 51200599 0 0 47564947 51200599 48820821 51200599 3635652 0 X X 0 1 X 1 0 5498380 5498380 59336227 18075005 41261222 475634 89780 385854 47145456 DUE FROM THE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. 3833241 3833241 X PART X, LINE 2: THE RECORDING ACADEMY ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES. FASB ASC 740 PRESCRIBES A COMPREHENSIVE MODEL FOR HOW A COMPANY SHOULD RECOGNIZE, MEASURE, PRESENT, AND DISCLOSE IN ITS FINANCIAL STATEMENTS UNCERTAIN TAX POSITIONS THAT THE COMPANY HAS TAKEN, OR EXPECTS TO TAKE, ON A TAX RETURN. DURING THE YEARS ENDED JULY 31, 2023 AND 2022, THE RECORDING ACADEMY DID NOT INCUR A MATERIAL LIABILITY FOR UNRECOGNIZED TAX BENEFITS. 0 0 0 HARVEY MASON JR CHIEF EXECUTIVE OFFICER 0 906325 0 362530 0 17922 0 15000 0 1996 0 1303773 0 0 BRANDEN CHAPMAN DIRECTOR 0 538152 0 1750 0 4242 0 15000 0 19018 0 578162 0 0 WAYNE J ZAHNER CHIEF FINANCIAL OFFICER 0 443257 0 1750 0 4242 0 15000 0 16203 0 480452 0 0 FORM 990, PART VI, SECTION A, LINE 2 HARVEY MASON, WAYNE ZAHNER, AND BRANDEN CHAPMAN HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. IS THE SOLE CORPORATE MEMBER OF NARAS PROPERTIES, INC. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS OF NARAS PROPERTIES, INC. IS SELF-ELECTING. AS THE INCORPORATOR, NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. NAMED THE INITIAL DIRECTORS OF NARAS PROPERTIES, INC. THE INITIAL DIRECTORS THEN ELECTED THE FIRST BOARD OF DIRECTORS. THEREAFTER, THE DIRECTORS ARE ELECTED SO THAT ONE-THIRD OF THE MEMBERSHIP OF THE BOARD OF DIRECTORS IS ELECTED EACH YEAR. DIRECTORS MAY SUCCEED THEMSELVES IN THE OFFICE. FORM 990, PART VI, SECTION A, LINE 7B PRIOR TO MAKING ANY BINDING GOVERNANCE DECISIONS FOR THE ORGANIZATION, THE TRUSTEES OF NARAS PROPERTIES, INC. CONSULT WITH AND OBTAIN THE APPROVAL OF THE GOVERNING BODY OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC. FORM 990, PART VI, SECTION A, LINE 8B NARAS PROPERTIES, INC. DOES NOT HAVE ANY COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 IS PREPARED BY DELOITTE TAX LLP, WORKING IN CONJUNCTION WITH NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC.'S FINANCE DEPARTMENT (NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. IS A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC.). THE DRAFT OF THE FORM 990 IS REVIEWED BY THE ORGANIZATION'S MANAGEMENT. THE INITIAL DRAFT OF THE FORM 990 IS THEN PROVIDED TO NARAS PROPERTIES, INC.'S GOVERNING BODY FOR THEIR REVIEW. ANY COMMENTS RESULTING FROM THEIR REVIEW ARE INCORPORATED INTO THE FINAL FILING OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATE SECRETARY FOR NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC., DISTRIBUTES THE STATEMENT OF CONFLICT OF INTEREST POLICY AT A TRUSTEES MEETING. THE STATEMENTS ARE COLLECTED BY THE CORPORATE SECRETARY AND THEN A SUMMARY REPORT IS GIVEN TO THE CHAIR OF THE BOARD OF TRUSTEES AND THE PRESIDENT/CHIEF EXECUTIVE OFFICER OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. THE CHAIR OF THE BOARD OF TRUSTEES AS WELL AS THE PRESIDENT/CHIEF EXECUTIVE OFFICER ARE RESPONSIBLE FOR BOTH MONITORING AND ENFORCING THE CONFLICT OF INTEREST POLICY BASED ON THE STATEMENTS THAT ARE PROVIDED. FORM 990, PART VI, SECTION B, LINE 15 RESPONSES PERTAIN TO COMPENSATION PAID BY NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC. NARAS PROPERTIES, INC. DOES NOT HAVE EMPLOYEES AND DOES NOT PAY COMPENSATION TO ITS DIRECTORS. 15A) THE PRESIDENT/CEO COMPENSATION WAS DETERMINED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., FUNCTIONING AS A COMPENSATION COMMITTEE. THE DECISION WAS THEN RATIFIED BY THE BOARD OF TRUSTEES OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. THE COMMITTEE RELIED UPON THE COUNSEL AND EXPERTISE OF LEGAL COUNSEL, AN INDEPENDENT OUTSIDE COMPENSATION CONSULTANT AND COMPARABILITY DATA IN DETERMINING THE COMPENSATION. THE MEETING IN WHICH THOSE DELIBERATIONS WERE CONDUCTED WAS CONTEMPORANEOUSLY DOCUMENTED. 15B) COMPENSATION FOR OTHER EMPLOYEES OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. IS SET BY THE PRESIDENT/CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER AND CHIEF PEOPLE AND CULTURE OFFICER. COMPENSATION IS DETERMINED BY THE REVIEW OF THE COMPENSATION OF OTHER EMPLOYEES AT SIMILAR LEVELS. INFORMATION FROM OUTSIDE ORGANIZATIONS IS GATHERED BY THE CHIEF PEOPLE AND CULTURE OFFICER AND BY A GENERAL KNOWLEDGE OF WHAT IS EXPECTED FOR THE POSITION BY THESE THREE INDIVIDUALS. AS IT RELATES TO ANNUAL INCREASES, THE CHIEF PEOPLE AND CULTURE OFFICER AND THE CHIEF FINANCIAL OFFICER HAVE DISCUSSED BENCHMARKING WITH HUMAN RESOURCES MANAGEMENT AND THE CHIEF FINANCIAL OFFICER OF SIMILAR ORGANIZATIONS. AGREEMENT IS OBTAINED BETWEEN THESE THREE INDIVIDUALS (CEO, CFO, CHIEF PEOPLE AND CULTURE OFFICER) AS TO THE VALUE OF SERVICES PROVIDED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. PART XII, LINE 2: THE ORGANIZATION'S FINANCIAL STATEMENTS WERE AUDITED AS PART OF THE COMBINED FINANCIAL STATEMENTS THAT INCLUDED NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC. PART XII, LINE 2C: THE ORGANIZATION FILES CONSOLIDATED FINANCIAL STATEMENTS WITH THE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC. ("THE RECORDING ACADEMY"). THE RECORDING ACADEMY HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS. TANGIBLE PROPERTY REGULATIONS ELECTIONS SECTION 1.263(A)-1(F) DE MINIMIS SAFE HARBOR ELECTION TAXPAYER IS MAKING THE DE MINIMIS SAFE HARBOR ELECTION UNDER TREAS. REG. 1.263(A)-1(F) FOR ALL ELIGIBLE AMOUNTS PAID OR INCURRED DURING THE TAXABLE YEAR. SECTION 1.263(A)-3(N) CAPITALIZATION ELECTION TAXPAYER HEREBY ELECTS TO CAPITALIZE REPAIR AND MAINTENANCE COSTS UNDER TREAS. REG. 1.263(A)-3(N). THE COSTS WERE INCURRED DURING THE TAXABLE YEAR IN THE ELECTING TAXPAYER'S TRADE OR BUSINESS AND THE ELECTING TAXPAYER TREATS SUCH COSTS AS CAPITAL EXPENDITURES ON ITS BOOKS AND RECORDS. FORM 990, PART VI, SECTION A, LINE 1B: HARVEY MASON, WAYNE ZAHNER, AND BRANDEN CHAPMAN PROVIDED SERVICES TO THE RECORDING ACADEMY, A RELATED ORGANIZATION. NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC 3030 OLYMPIC BLVD SANTA MONICA CA 90404 956052058 ADVANCE ARTS & SCIENCES OF RECORDING MUSIC DE 501(C)(6) N/A 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 1 1 0 NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC E 100000 CASH VALUE NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC J 4872399 FMV NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC O 55392 FMV NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC Q 1374 FMV NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES INC R 5254395 CASH VALUE PART II: NARAS PROPERTIES, INC. OWNS THE CORPORATE HEADQUARTERS IN SANTA MONICA, CALIFORNIA USED BY NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC., A RELATED TAX-EXEMPT ORGANIZATION THAT IS THE CONTROLLING ENTITY OF NARAS PROPERTIES, INC., AND ITS AFFILIATED TAX-EXEMPT ORGANIZATIONS. NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. PAID RENT FOR ITS USE OF THE CORPORATE HEADQUARTERS. THE VALUE OF THE RENT WAS DETERMINED BASED ON COMPARABLES OF SIMILAR PROPERTIES. NARAS PROPERTIES, INC. ALSO OWNS AN OFFICE BUILDING IN NASHVILLE, TENNESSEE USED BY THE NASHVILLE CHAPTER OF NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. AND MUSICARES, ONE OF ITS AFFILIATED TAX-EXEMPT ORGANIZATIONS. NATIONAL ACADEMY OF RECORDING ARTS & SCIENCES, INC. PAID RENT FOR ITS USE OF THE NASHVILLE PROPERTY. THE VALUE OF THE RENT WAS DETERMINED BASED ON COMPARABLES OF SIMILAR PROPERTY. ON DECEMBER 21, 2016 NARAS PROPERTIES, INC. PURCHASED A RESIDENTIAL BUILDING IN NEW YORK CITY, NEW YORK. THE NEW YORK CHAPTERS OF THE RECORDING ACADEMY AND MUSICARES WILL UTILIZE THE PROPERTY AS RENOVATIONS WERE COMPLETED IN JULY 2022.