| FORM 990, PART VI, SECTION A, LINE 7A |
THE AARP BOARD OF DIRECTORS APPOINTS UP TO TEN VOTING MEMBERS OF THE AARP FOUNDATION BOARD OF DIRECTORS. UP TO FOUR OF THE AARP FOUNDATION BOARD MEMBERS MAY BE CURRENT AARP BOARD MEMBERS. THE REMAINING BOARD MEMBERS SHALL BE UNAFFILIATED WITH AARP. |
| FORM 990, PART VI, SECTION A, LINE 7B |
THE AARP BOARD OF DIRECTORS APPOINTS UP TO TEN VOTING MEMBERS OF THE AARP FOUNDATION BOARD OF DIRECTORS. UP TO FOUR OF THE AARP FOUNDATION BOARD MEMBERS MAY BE CURRENT AARP BOARD MEMBERS. THE REMAINING BOARD MEMBERS SHALL BE UNAFFILIATED WITH AARP. AN AARP FOUNDATION BOARD MEMBER MAY BE REMOVED, WITH OR WITHOUT CAUSE, BY FORMAL ACTION OF THE AARP FOUNDATION BOARD OF DIRECTORS, DESIGNATING A SUCCESSOR. THE AARP FOUNDATION BYLAWS PROVIDE THAT NO AMENDMENTS TO THE BYLAWS ADOPTED BY THE FOUNDATION MAY TAKE EFFECT UNTIL APPROVED BY THE AARP BOARD OF DIRECTORS. |
| FORM 990, PART VI, SECTION B, LINE 11B |
THE FORM 990 FOR AARP FOUNDATION ("FOUNDATION") IS PREPARED BY AN OUTSIDE CONSULTANT AND REVIEWED BY AARP FOUNDATION'S CFO, PRESIDENT, AND OTHER INTERNAL REVIEWERS. THE FORM 990 IS THEN PROVIDED TO THE AARP FOUNDATION BOARD OF DIRECTORS. ONCE ALL REVIEWS ARE COMPLETE, THE RETURN IS ELECTRONICALLY FILED WITH THE INTERNAL REVENUE SERVICE. |
| FORM 990, PART VI, SECTION B, LINE 12C |
ANNUALLY, ALL BOARD MEMBERS AND EMPLOYEES (INCLUDING OFFICERS) ARE REQUIRED TO REVIEW THE CODE OF CONDUCT, FORMALLY ACKNOWLEDGE THEIR UNDERSTANDING OF THE CODE, AND DISCLOSE ANY REAL OR POTENTIAL CONFLICTS OF INTEREST. DISCLOSURES ARE REVIEWED BY APPROPRIATE MANAGEMENT (OR IN THE CASE OF A BOARD MEMBER, THE BOARD CHAIR, AND IF NECESSARY, THE BOARD OF DIRECTORS), AND THE ETHICS & COMPLIANCE OFFICE. THE APPROPRIATE RESOLUTION PLAN IS IMPLEMENTED (FOR EXAMPLE, RECUSAL FROM PARTICIPATING IN ANY DELIBERATIONS AND DECISIONS RELEVANT TO THE DISCLOSURE). THE ETHICS & COMPLIANCE OFFICE MONITORS COMPLIANCE WITH THESE REQUIREMENTS AND ENSURES PROPER FOLLOW-UP AS NEEDED. |
| FORM 990, PART VI, SECTION B, LINE 15A |
THROUGH ITS SHARED SERVICES AGREEMENT WITH AARP, AARP FOUNDATION PARTICIPATES IN AARP'S ENTERPRISE-WIDE COMPENSATION REVIEWS. AARP HAS A COMPETITIVE POSITION IN THE MARKETPLACE THAT CONSIDERS RELEVANT FOR-PROFIT AND NOT-FOR-PROFIT DATA SINCE THIS IS THE LANDSCAPE IN WHICH AARP AND ITS AFFILIATES COMPETE FOR TALENT. ESTABLISHING THE APPROPRIATE COMPENSATION FOR POSITIONS AND JOBS CONSIDERS EXTERNAL MARKET PRICING (WHERE POSSIBLE) FROM AN INDEPENDENT, THIRD PARTY COMPENSATION CONSULTING FIRM, INTERNAL CRITERIA, AND AN INDIVIDUAL'S ACTUAL PERFORMANCE AND CONTRIBUTION. INTERNAL CRITERIA IS BASED ON A STANDARD APPROACH THAT MEASURES THE INTERNAL VALUE OF POSITIONS, INCLUDING: COMPLEXITY AND SCOPE OF RESPONSIBILITY, SKILL SET AND COMPETENCIES, EDUCATION AND EXPERIENCE, AND THE REPORTING RELATIONSHIP OF THE POSITION. AN INDIVIDUAL'S ACTUAL PERFORMANCE AND CONTRIBUTION IS MEASURED THROUGH AARP'S PERFORMANCE MANAGEMENT APPROACH AND THEN REWARDED THROUGH AARP'S ANNUAL BASE PAY MERIT AND INCENTIVE AWARD PROGRAMS. THIS PROCESS APPLIES TO ALL EMPLOYEES OF THE FOUNDATION INCLUDING THE PRESIDENT, CFO, AND KEY EMPLOYEES. BASED ON THE PROCESS DESCRIBED ABOVE, THE AARP FOUNDATION BOARD CHAIR APPROVES ADJUSTMENTS TO THE PRESIDENT'S COMPENSATION PACKAGE. THE JOB PERFORMANCE OF THE CFO AND OTHER KEY EMPLOYEES ARE DISCUSSED ANNUALLY WITH THE STRATEGY AND GOVERNANCE COMMITTEE. |
| FORM 990, PART VI, SECTION C, LINE 18 |
AARP FOUNDATION MAKES ITS FORM 990 AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE AND UPON REQUEST TO THE AARP FOUNDATION'S OFFICE OF THE CFO. |
| FORM 990, PART VI, SECTION C, LINE 19 |
AARP FOUNDATION MAKES ITS AUDITED FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION ON ITS WEBSITE AND UPON REQUEST TO THE AARP FOUNDATION'S OFFICE OF THE CFO. |
| PART VII, SEC. A, OFFICERS, KEY EMPLOYEES AND HIGHEST COMPENSATED EMPLOYEES |
AARP FOUNDATION HAS A STANDARD 40 HOUR WORK WEEK AND THE AVERAGE HOURS ARE DISCLOSED ON FORM 990. OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES OFTEN WORK IN EXCESS OF THAT AMOUNT. |
Attach to Form 990 or 990-EZ.