Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2011
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2011 and ending 12-31-2011
BCheck if applicable:
CName of organization
Dairy Management Inc
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
10255 W Higgins Road
 
Room/suite
City or town, state or country, and ZIP + 4
Rosemont, IL60018
D Employer identification number

36-3992031
E Telephone number

G Gross receipts $ 127,182,944
F Name and address of principal officer:
Thomas Gallagher
10255 W Higgins Road Ste 900
Rosemont,IL60018
I
Tax-exempt status: ( 6 ) LeftBullet (insert no.) or
J
Website:MediumBullet
www.dairyinfo.com
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1995
M State of legal domicile: DC
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: TO INVEST DAIRY PRODUCER CHECKOFF FUNDS IN STRATEGIC, COORDINATED MARKETING PROGRAMS DESIGNED TO INCREASE CONSUMPTION OF US DAIRY PRODUCTS BOTH DOMESTICALLY AND INTERNATIONALLY.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a)..... 3 81
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 81
5 Total number of individuals employed in calendar year 2011 (Part V, line 2a) ... 5 227
6 Total number of volunteers (estimate if necessary) .... 6 0
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 0
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b  
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 0 0
9 Program service revenue (Part VIII, line 2g) ......... 126,072,736 127,182,944
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 0 0
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 0 0
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 126,072,736 127,182,944
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 0 519,331
14 Benefits paid to or for members (Part IX, column (A), line 4)..... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 21,392,750 18,349,671
16a Professional fundraising fees (Part IX, column (A), line 11e)..... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 104,679,986 108,313,942
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 126,072,736 127,182,944
19 Revenue less expenses. Subtract line 18 from line 12.......   0
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............. 22,597,931 18,683,002
21 Total liabilities (Part X, line 26)............. 22,597,931 18,683,002
22 Net assets or fund balances. Subtract line 21 from line 20..... 0 0
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid preparer use only
Print/type preparer's name
 
Preparer's signature
Date
PTIN
Firm's name Right pointing arrowhead image

Firm's EIN Right pointing arrowhead image
Firm's address Right pointing arrowhead image



Phone no.
May the IRS discuss this return with the preparer shown above? See instructions .........bullet
For Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2011)
Form 990 (2011)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III .........
1
Briefly describe the organization’s mission: DAIRY MANAGEMENT INC (DMI) WAS FORMED IN 1995 BY THE NATIONAL DAIRY PROMOTION AND RESEARCH BOARD (NDB) AND THE UNITED DAIRY INDUSTRY ASSOCIATION (UDIA). DMI IS A MANAGEMENT ORGANIZATION THAT INVESTS DAIRY PRODUCER CHECKOFF FUNDS IN STRATEGIC, COORDINATED MARKETING PROGRAMS DESIGNED TO INCREASE CONSUMPTION OF US DAIRY PRODUCTS BOTH DOMESTICALLY AND INTERNATIONALLY. THE FORMATION OF DMI HAS CREATED EFFICIENCIES, GAINED THROUGH THE ELMINATION OF REDUNDANCIES AND THE POWER OF JOINT PLANNING.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
CHILD NUTRITION AND FITNESS INITIATIVE. SEE SCHEDULE O MISSION AND ACTIVITIES DESCRIPTION, HEALTH AND WELLNESS SECTION.
4b (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
NUTRITION AFFAIRS. SEE SCHEDULE O MISSION AND ACTIVITIES DESCRIPTION, HEALTH AND WELLNESS SECTION.
4c (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
EXPORT ACTIVITIES. SEE SCHEDULE O MISSION AND ACTIVITIES DESCRIPTION, INTERNATIONAL MARKETING SECTION.
4d Other program services (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet$  
Form 990 (2011)
Form 990 (2011)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule A.....................
1
 
No
2
Is the organization required to complete Schedule B, Schedule of Contributors? ........
2
 
No
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................
4
 
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete Schedule D, Part IClick to see attachment....................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
Yes
 
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
 
No
12a
Did the organization obtain separate, independent audited financial statements for the tax year?
If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
Yes
 
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
 
No
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States or aggregate foreign investments valued at $100,000 or more? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
If “Yes” to line 20a, did the organization attach a copy of its audited financial statement to this return? Note. All Form 990 filers that operated one or more hospitals must attach audited financial statements.
20b
 
 
Form 990 (2011)
Form 990 (2011)
Page 4
Part IV
Checklist of Required Schedules (continued)
21
Did the organization report more than $5,000 of grants and other assistance to any government or organization in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
Yes
 
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
 
No
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................ Click to see attachment
23
Yes
 
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................
24a
 
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
 
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
 
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
 
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I......
25a
 
 
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................
25b
 
 
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II.........................
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If “Yes,” complete Schedule L, Part III.........
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV .........................
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV...................
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV..
28c
 
No
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
Yes
 
35a
Did the organization have a controlled entity within the meaning of section 512(b)(13)?
35a
Yes
 
b
If ‘Yes’ to line 35a, did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
35b
Yes
 
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2...........
36
 
 
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2011)
Form 990 (2011)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V .........
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
170
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
227
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
 
No
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
 
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
 
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
 
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
 
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
 
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2011)
Form 990 (2011)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI .........
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year
If the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O.
1a
81
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
81
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? .
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Did the organization have members or stockholders? ................
6
 
No
7a
Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? .................
7a
 
No
b
Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ............
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ..........
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Did the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ....
10b
 
 
11a
Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?
11a
 
No
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Did the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Were officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ........................
12b
Yes
 
c
Did the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this was done ....................
12c
Yes
 
13
Did the organization have a written whistleblower policy? ...............
13
Yes
 
14
Did the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes," to line 15a or 15b, describe the process in Schedule O (see instructions).
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
ROGER ALBERT
10255 W HIGGINS ROAD SUITE 900
Rosemont,IL600185616
(847) 803-2000
Form 990 (2011)
Form 990 (2011)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII .........
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) PATRICIA M BOETTCHER
DIRECTOR
 1.0 X           0 0 0
(2) BRIAN W ESPLIN
DIRECTOR
 1.0 X           0 0 0
(3) JOHN B FISCALINI
DIRECTOR
 1.0 X           0 0 0
(4) DAVID P CROWL
DIRECTOR
 1.0 X           0 0 0
(5) DOUGLAS T DANIELSON
DIRECTOR
 1.0 X           0 0 0
(6) PAUL A FRITSCHE
DIRECTOR
 1.0 X           0 0 0
(7) STEVEN R HANSON
DIRECTOR
 1.0 X           0 0 0
(8) JEFFREY A HARDY
DIRECTOR
 1.0 X           0 0 0
(9) NEIL A HOFF
DIRECTOR
 1.0 X           0 7,400 0
(10) KENTON W HOLLE
DIRECTOR
 1.0 X           0   0
(11) LARRY B JAGGERS
DIRECTOR
 1.0 X           0   0
(12) RITA P KENNEDY
DIRECTOR
 1.0 X           0   0
(13) RONALD L KOETSIER
DIRECTOR
 1.0 X           0   0
(14) DOUGLAS L KRICKENBARGER
DIRECTOR
 1.0 X           0   0
(15) SHARON K LAUBSCHER
DIRECTOR
 1.0 X           0   0
(16) BYRON A LEHMAN
DIRECTOR
 1.0 X           0   0
(17) STEPHEN D MADDOX
DIRECTOR
 1.0 X           0   0
Form 990 (2011)
Form 990 (2011)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (do not check more than one box, unless person is both an officer and a director/trustee) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) GEORGE E MARSH
DIRECTOR
 1.0 X           0   0
(19) RONALD R MCCORMICK
DIRECTOR
 1.0 X           0   0
(20) KEN MEYERS
DIRECTOR
 1.0 X           0   0
(21) ZACHARY H MYERS
DIRECTOR
 1.0 X           0   0
(22) DOUGLAS D NUTTELMAN
DIRECTOR
 1.0 X           0   0
(23) ELLEN H PARADEE
DIRECTOR
 1.0 X           0   0
(24) RAY S PROCK
DIRECTOR
 1.0 X           0   0
(25) RANDY G ROECKER
DIRECTOR
 1.0 X           0   0
(26) CARL A SCHMITZ
DIRECTOR
 1.0 X           0   0
(27) BRAD SCOTT
DIRECTOR
 1.0 X           0   0
(28) RONALD E SHELTON
DIRECTOR
 1.0 X           0   0
(29) SANFORD STAUFFER
TREASURER
 1.0 X           0   0
(30) SUSAN D K TROYER
DIRECTOR
 1.0 X           0   0
(31) CARL F VANDEN AVOND
DIRECTOR
 1.0 X           0   0
(32) ARLENE J VANDER EYK
DIRECTOR
 1.0 X           0   0
(33) GIGI VITA
DIRECTOR
 1.0 X           0   0
(34) HAROLD ANDY WICK
DIRECTOR
 1.0 X           0   0
(35) LARRY ALEXANDER
DIRECTOR
 1.0 X           0 0 0
(36) ELIZABETH LIZ ANDERSON
DIRECTOR
 1.0 X           0 3,300 0
(37) VICTOR BISSELL
DIRECTOR
 1.0 X           0 4,500 0
(38) PAUL BROERING
DIRECTOR
 1.0 X           0 4,500 0
(39) BOBBY COMBS
DIRECTOR
 1.0 X           0 3,800 0
(40) TOM CRONER
DIRECTOR
 1.0 X           0 3,700 0
(41) BRYAN DAVIS
DIRECTOR
 1.0 X           0 4,100 0
(42) AUDREY DONAHOE
DIRECTOR
 1.0 X           0 5,000 0
(43) TOM DORSEY
DIRECTOR
 1.0 X           0 4,200 0
(44) PAUL DOTON
DIRECTOR
 1.0 X           0 4,500 0
(45) GLEN EASTER
DIRECTOR
 1.0 X           0 0 0
(46) STEVE P FRISCHKNECHT
DIRECTOR
 1.0 X           0 5,700 0
(47) JOE L GONZALEZ
DIRECTOR
 1.0 X           0 3,000 0
(48) R STEVEN GRAYBEAL
DIRECTOR
 1.0 X           0 0 0
(49) DAN GRUNHOVD
DIRECTOR
 1.0 X           0 3,900 0
(50) DONALD GURTNER
DIRECTOR
 1.0 X           0 3,800 0
(51) LESTER E HARDESTY
DIRECTOR
 1.0 X           0 8,300 0
(52) DAVID SKIP HARDIE
DIRECTOR
 1.0 X           0 8,100 0
(53) JERREL HEATWOLE
DIRECTOR
 1.0 X           0 3,700 0
(54) VERNON HORST
DIRECTOR
 1.0 X           0 4,400 0
(55) JOHN HOWERTON
DIRECTOR
 1.0 X           0 2,850 0
(56) RON HURLIMAN
DIRECTOR
 1.0 X           0 3,900 0
(57) DWAINE JUNCK
DIRECTOR
 1.0 X           0 1,500 0
(58) ROBERT KRAN
DIRECTOR
 1.0 X           0 3,800 0
(59) JOHN M LARSON
DIRECTOR
 1.0 X           0 0 0
(60) ALLEN MERRILL
DIRECTOR
 1.0 X           0 2,800 0
(61) JERRY G MESSER
DIRECTOR
 1.0 X           0 2,200 0
(62) KEN NOBIS
DIRECTOR
 1.0 X           0 600 0
(63) LYNN RAMSEY
DIRECTOR
 1.0 X           0 1,050 0
(64) JIM REID
DIRECTOR
 1.0 X           0 0 0
(65) ARIE ROELOFFS
DIRECTOR
 1.0 X           0 0 0
(66) PAUL E ROVEY
CHAIR
 1.0 X           0 12,250 0
(67) NORBERT SCHMIDT
DIRECTOR
 1.0 X           0 4,000 0
(68) CONNIE SEEFELDT
DIRECTOR
 1.0 X           0 4,200 0
(69) WILLIAM B SIEBENBORN
DIRECTOR
 1.0 X           0 12,600 0
(70) ROBERT SMIT
DIRECTOR
 1.0 X           0 3,800 0
(71) JOAN D SMITH
DIRECTOR
 1.0 X           0 4,000 0
(72) JAY STAUFFACHER
DIRECTOR
 1.0 X           0 700 0
(73) BERNIE TEUNISSEN
DIRECTOR
 1.0 X           0 3,500 0
(74) JOHN TRAWEEK
DIRECTOR
 1.0 X           0 2,000 0
(75) JERRY TRUELOVE
DIRECTOR
 1.0 X           0 0 0
(76) DAVE VEENHOUWER
DIRECTOR
 1.0 X           0 2,300 0
(77) TOM A WOODS
DIRECTOR
 1.0 X           0 3,200 0
(78) JAMES L AHLEM
VICE CHAIR
 1.0 X           0   0
(79) RENAE A DE JAGER
DIRECTOR
 1.0 X           0   0
(80) W RYAN ANGLIN
DIRECTOR
 1.0 X           0   0
(81) MARK E ERDMAN
DIRECTOR
 1.0 X           0   0
(82) CARROLL V WADE
DIRECTOR
 1.0 X           0 4,100 0
(83) PAULA A MEABON
DIRECTOR
 1.0 X           0 8,600 0
(84) DAN RICE
DIRECTOR
 1.0 X           0 700 0
(85) EARL STITZLEIN
DIRECTOR
 1.0 X           0 2,500 0
(86) EARL HORNING
DIRECTOR
 1.0 X           0 3,700 0
(87) BILLY TRAVIS
DIRECTOR
 1.0 X           0 6,100 0
(88) MICHAEL FERGUSON
DIRECTOR
 1.0 X           0 3,500 0
(89) Thomas Gallagher
CEO
 40.0     X       619,557 0 65,570
(90) Daniel Chavka
CFO
 40.0     X       308,453 0 118,445
(91) Julian Toney
COO (RETIRED 2011)
 40.0       X     1,776,263 0 59,176
(92) KEVIN PONTICELLI
COO
 40.0       X     485,150 0 34,983
(93) Thomas Suber
Executive VP
 40.0         X   492,043 0 238,734
(94) Jean Ragalie
Executive VP
 40.0         X   424,232 0 146,811
(95) Gregory Miller
Executive VP
 40.0         X   427,973 0 209,176
(96) Mark Leitner
Executive VP
 40.0         X   351,358 0 97,664
(97) BARBARA O'BRIEN
EXECUTIVE VP
 40.0         X   379,268 0 30,567
1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 5,264,297 186,350 1,001,126
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationMediumBullet68
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
 
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
Yes
 
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization’s tax year.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
Daniel J Edelman
200 E Randolph 63rd Floor
CHICAGO,IL60601 		Agency Services 10,443,595
Foodminds LLC
One Tower Lane Suite 2610
OAK BROOK TERRACE,IL60181 		Agency Services 1,341,590
MMS Education
105 Terry Drive Suite 120
NEWTOWN,PA18940 		Agency Services 2,563,062
TEAM SERVICES LLC
1700 ROCKVILLE PIKE SUITE 615
ROCKVILLE,MD20852 		Agency Services 1,160,655
REVERE GROUP LTD
625 N LASALLE
CHICAGO,IL60654 		IT PROJECT SERVICES 2,223,779
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization MediumBullet29
Form 990 (2011)
Form 990 (2011)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, Gifts, Grants and Other Similar Amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d  
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 0
Program Service Revenue Business Code
2a PROGRAM FUNDING REVENUE 900,099 99,271,807 99,271,807    
b CORE FUNDING REVENUE 900,099 25,394,124 25,394,124    
c CONTRACT SERVICE REVENUE 900,099 2,517,013 2,517,013    
d
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 127,182,944
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 0      
4 Income from investment of tax-exempt bond proceeds..MediumBullet 0      
5 Royalties............MediumBullet 0      
(i) Real (ii) Personal
6a Gross rents    
b Less: rental expenses    
c Rental income or (loss)    
d Net rental income or (loss).......MediumBullet        
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory    
b Less: cost or other basis and sales expenses    
c Gain or (loss)    
d Net gain or (loss)..........MediumBullet 0      
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet 0    
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet 0      
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet 0      
Miscellaneous Revenue Business Code
11a            
b            
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 0
12 Total revenue. See Instructions....MediumBullet 127,182,944 127,182,944    
Form 990 (2011)
Form 990 (2011)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Check if Schedule O contains a response to any question in this Part IX. .........
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the United States. See Part IV, line 21 519,331  
2 Grants and other assistance to individuals in the United States. See Part IV, line 22 0  
3 Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16 0  
4 Benefits paid to or for members 0  
5 Compensation of current officers, directors, trustees, and key employees .... 3,467,597      
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) .... 0      
7 Other salaries and wages 10,844,458      
8 Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) .... 2,106,044      
9 Other employee benefits ....... 1,032,679      
10 Payroll taxes ........... 898,893      
11 Fees for services (non-employees):        
a Management ...... 0      
b Legal ......... 1,078,937      
c Accounting ........... 142,373      
d Lobbying ........... 0      
e Professional fundraising. See Part IV, line 17.. 0  
f Investment management fees ...... 0      
g Other .......... 67,432      
12 Advertising and promotion .... 11,670      
13 Office expenses ....... 935,713      
14 Information technology ...... 4,104,277      
15 Royalties .. 0      
16 Occupancy ........... 1,624,754      
17 Travel ............ 1,825,758      
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ...... 0      
19 Conferences, conventions, and meetings .... 1,818,074      
20 Interest ........... 0      
21 Payments to affiliates ....... 0      
22 Depreciation, depletion, and amortization ..... 572,934      
23 Insurance .............. 83,957      
24 Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a DOMESTIC MARKETING PROGRAM 89,163,944      
b COMMUNICATIONS/MEMBER RELATION 21,096      
c PLACEMENT & SHARED STAFF -659,760      
d OUTSIDE HELP 6,979,285      
e
f All other expenses 543,498      
25 Total functional expenses. Add lines 1 through 24f 127,182,944      
26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here MediumBullet if following SOP 98-2 (ASC 958-720).        
Form 990 (2011)
Form 990 (2011)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... 93,720 1 81,252
2 Savings and temporary cash investments ....... 0 2 0
3 Pledges and grants receivable, net ......... 0 3 0
4 Accounts receivable, net ......... 727,445 4 1,080,438
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L .......... 0 5 0
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L .......... 0 6 0
7 Notes and loans receivable, net ............. 0 7 0
8 Inventories for sale or use .............. 0 8 0
9 Prepaid expenses and deferred charges ............ 446,182 9 707,347
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 8,627,894
b Less: accumulated depreciation. ..... 10b 7,186,146 1,717,723 10c 1,441,748
11 Investments—publicly traded securities .......... 0 11 0
12 Investments—other securities. See Part IV, line 11 ...... 0 12 0
13 Investments—program-related. See Part IV, line 11 .. 0 13 0
14 Intangible assets ......... 0 14 0
15 Other assets. See Part IV, line 11 ........... 19,612,861 15 15,372,217
16 Total assets. Add lines 1 through 15 (must equal line 34)... 22,597,931 16 18,683,002
Liabilities 17 Accounts payable and accrued expenses . 17,474,802 17 11,799,750
18 Grants payable .......... 0 18 0
19 Deferred revenue .......... 0 19 0
20 Tax-exempt bond liabilities .......... 0 20 0
21 Escrow or custodial account liability. Complete Part IV of Schedule D.. 0 21 0
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L.......... 0 22 0
23 Secured mortgages and notes payable to unrelated third parties .. 0 23 0
24 Unsecured notes and loans payable to unrelated third parties .... 0 24 0
25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D..... 5,123,129 25 6,883,252
26 Total liabilities. Add lines 17 through 25..... 22,597,931 26 18,683,002
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 0 27 0
28 Temporarily restricted net assets ..... 0 28 0
29 Permanently restricted net assets ..... 0 29 0
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... 0 33 0
34 Total liabilities and net assets/fund balances ..... 22,597,931 34 18,683,002
Form 990 (2011)
Form 990 (2011)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI .........
1
Total revenue (must equal Part VIII, column (A), line 12) ...
1
127,182,944
2
Total expenses (must equal Part IX, column (A), line 25) ....
2
127,182,944
3
Revenue less expenses. Subtract line 2 from line 1 ...
3
0
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ..
4
0
5
Other changes in net assets or fund balances (explain in Schedule O) ...
5
0
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) ....
6
0
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII .........
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?....
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. ...........................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
 
No
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
 
 
Form 990 (2011)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
Dairy Management Inc
 
Employer identification number

36-3992031
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register .................... 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 (ASC 958), relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2011

Schedule D (Form 990) 2011
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance ....        
b Contributions ........        
c Net investment earnings, gains, and losses ...        
d Grants or scholarships .....        
e Other expenditures for facilities
and programs ........ 		       
f Administrative expenses ....        
g End of year balance ......        
2
Provide the estimated percentage of the year end balance (line 1g) held as:
a
Board designated or quasi-endowment SchDMd Bullet  
b
Permanent endowment SchDMd Bullet  
c
Temporarily restricted endowment SchDMd Bullet  
The percentages in lines 2a, 2b, and 2c should equal 100%.
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of property (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................      
b Buildings ................        
c Leasehold improvements ............   878,282 297,686 580,596
d Equipment ................   4,363,473 3,610,693 752,780
e Other .................   3,386,139 3,277,767 108,372
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......SchDMdBullet 1,441,748
Schedule D (Form 990) 2011

Schedule D (Form 990) 2011
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
Other








Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)Small Bullet  
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value
(1) DUE FROM AFFILIATES 15,372,217








Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........Small Bullet 15,372,217
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Book value
Federal Income Taxes 0
DUE TO AFFILIATES 6,883,252








Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)Small Bullet 6,883,252
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2011

Schedule D (Form 990) 2011
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1 127,182,944
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 127,182,944
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3  
4 Net unrealized gains (losses) on investments .......................... 4  
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV.) ................................. 8  
9 Total adjustments (net). Add lines 4 through 8 ......................... 9  
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10  
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 127,182,944
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV.) ............ 2d  
e Add lines 2a through 2d ..................... 2e  
3 Subtract line 2e from line 1..................... 3 127,182,944
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV.) ........... 4b  
c Add lines 4a and 4b....................... 4c  
5 Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ...... 5 127,182,944
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 127,182,944
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV.) ............ 2d  
e Add lines 2a through 2d...................... 2e  
3 Subtract line 2e from line 1..................... 3 127,182,944
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV.) ............ 4b  
c Add lines 4a and 4b....................... 4c  
5 Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ...... 5 127,182,944
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
Schedule D (Form 990) 2011

Additional Data


Software ID:  
Software Version:  




Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2011
Open to Public
Inspection
Name of the organization
Dairy Management Inc
 
Employer identification number
36-3992031
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance
(1) Youth Improved Inc10255 WEST HIGGINS RD
ROSEMONT,IL60018 		27-0988546 501(C)(3) 519,331       Progam service Expense






















2
Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................. Bullet Image
1
3
Enter total number of other organizations listed in the line 1 table ......................... . Bullet Image
 
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2011

Schedule I (Form 990) 2011
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance













Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF ASSISTANCE SCHEDULE I, PART I, LINE 2 The organization reported on Schedule I received a contribution from Dairy Management Inc. (DMI), but not a grant. DMI's accounting department books contributions made to other 501(c)(3) organizations.
Schedule I (Form 990) 2011


Additional Data


Software ID:  
Software Version:  


Schedule J
(Form 990)
Department of the Treasury
Internal Revenue Service
Compensation Information
For certain Officers, Directors, Trustees, Key Employees, and Highest
Compensated Employees
SchJMediumBullet Complete if the organization answered "Yes" to Form 990,
Part IV, question 23.
SchJMediumBullet Attach to Form 990. SchJMediumBullet See separate instructions.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
Dairy Management Inc
 
Employer identification number

36-3992031
Part I
Questions Regarding Compensation
Yes
No
1a
Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.
b
If any of the boxes in line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all the expenses described above? If "No," complete Part III to explain....
1b
Yes
 
2
Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all
officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ....
2
Yes
 
3
Indicate which, if any, of the following the organization uses to establish the compensation of the
organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods
used by a related organization to establish compensation of the CEO/Executive Director, but explain in Part III.
4
During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization:
a
Receive a severance payment or change-of-control payment? ...............
4a
 
No
b
Participate in, or receive payment from, a supplemental nonqualified retirement plan? ........
4b
Yes
 
c
Participate in, or receive payment from, an equity-based compensation arrangement? ........
4c
 
No
If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III.
Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9.
5
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the revenues of:
a
The organization? ...........................
5a
 
 
b
Any related organization? .........................
5b
 
 
If "Yes," to line 5a or 5b, describe in Part III.
6
For persons listed in form 990, Part VII, Section A, line 1a, did the organization pay or accrue any
compensation contingent on the net earnings of:
a
The organization? ...........................
6a
 
 
b
Any related organization? .........................
6b
 
 
If "Yes," to line 6a or 6b, describe in Part III.
7
For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed
payments not described in lines 5 and 6? If "Yes," describe in Part III ............
7
 
 
8
Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................
8
 
 
9
If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................
9
 
 
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 50053T
Schedule J (Form 990) 2011

Schedule J (Form 990) 2011
Page 2
Part II
Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.
For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.

Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and column (E) for that individual.
(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and other deferred compensation (D) Nontaxable
benefits		 (E) Total of columns
(B)(i)-(D) 		(F) Compensation
reported as deferred
in prior Form 990
(i) Base compensation (ii) Bonus & incentive compensation (iii) Other reportable compensation
(1) Thomas Gallagher (i)
(ii)		 410,000
0 		0
0 		209,557
0 		52,675
0 		12,895
0 		685,127
0 		141,455
0
(2) Daniel Chavka (i)
(ii)		 284,947
0 		0
0 		23,506
0 		95,620
0 		22,825
0 		426,898
0 		0
0
(3) Julian Toney (i)
(ii)		 232,957
0 		82,295
0 		1,461,011
0 		50,203
0 		8,973
0 		1,835,439
0 		976,242
0
(4) Thomas Suber (i)
(ii)		 325,566
0 		77,000
0 		89,477
0 		213,272
0 		25,462
0 		730,777
0 		140,225
0
(5) Jean Ragalie (i)
(ii)		 269,100
0 		84,100
0 		71,032
0 		129,848
0 		16,963
0 		571,043
0 		120,737
0
(6) Gregory Miller (i)
(ii)		 283,525
0 		85,000
0 		59,448
0 		187,544
0 		21,632
0 		637,149
0 		119,602
0
(7) Mark Leitner (i)
(ii)		 230,805
0 		68,222
0 		52,331
0 		77,479
0 		20,185
0 		449,022
0 		99,857
0
(8) KEVIN PONTICELLI (i)
(ii)		 340,000
0 		110,000
0 		35,150
0 		34,000
0 		983
0 		520,133
0 		0
0
(9) BARBARA O'BRIEN (i)
(ii)		 232,500
0 		120,000
0 		26,768
0 		13,950
0 		16,617
0 		409,835
0 		0
0







Schedule J (Form 990) 2011

Schedule J (Form 990) 2011
Page 3
Part III
Supplemental Information
Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information.
Identifier Return Reference Explanation
SCHEDULE J, PART I, LINE 1A   First class travel is only available to the CEO as authorized by the board of directors. The travel is not taxable since it is part of an accountable plan. Tax indemnification is available to the CEO only and is included in taxable wages. The officers, key employees, and highest compensated employees have the option of receiving health club benefits under the executive flexible benefits account.
SCHEDULE J, PART I, LINE 4B   The following Officer and key employee participate in a supplemental nonqualified retirement program and were paid an actuarially determined supplemental retirement program benefit in 2011: Thomas Gallagher: $88,559 Julian Toney (UPON RETIREMENT): $1,264,438
Schedule J, Part II, Column B "BREAKDOWN OF W-2 AND/OR 1099 MISC COMPENSATION" 2011 W-2 TOTALS CONSIST OF TOTAL OF COLUMNS B(I), B(II), AND B(III) FROM SCHEDULE J. THESE AMOUNTS ARE W-2 REPORTABLE COMPENSATION AND WERE PAID TO EMPLOYEES IN 2011. 2011 W-2 TOTALS _____________________ THOMAS GALLAGHER $619,557 DANIEL CHAVKA $308,453 KEVIN PONTICELLI $485,150 JULIAN TONEY (RETIRED) $1,776,263 THOMAS SUBER $492,043 JEAN RAGALIE $424,232 GREGORY MILLER $427,973 MARK LEITNER $351,358 BARBARA O'BRIEN $379,248
SCHEDULE J, PART II, COLUMN C "Retirement and Other Deferred Compensation" EXCEPT FOR JULIAN TONEY, None of the amounts contained in Column C were paid to employees during 2011 nor are considered W-2 reportable compensation in 2011. Column C is comprised of noncash benefits and book accruals for: A) Employer funding to the qualified retirement and 401k plans. B) Book accruals for estimated future benefits from the supplemental nonqualified employee retirement program and estimated future benefits from the nonqualified 401k makeup contribution program. The Supplemental nonqualified employee retirement and 401k makeup contribution programs are designed to restore lost benefits to the employee resulting from IRS benefit limitations on the qualified retirement and 401k plans, respectively.
Schedule J (Form 990) 2011

Additional Data


Software ID:  
Software Version:  
SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2011
Open to Public
Inspection
Name of the organization
Dairy Management Inc
 
Employer identification number

36-3992031
Identifier Return Reference Explanation
DAIRY MANAGEMENT, INC.'S ACTIVITIES FOR 2011 FORM 990, PART III When the National Dairy Promotion and Research Board (NDB) was formed in 1983, its mission was to increase demand for US dairy products on behalf of U.S. dairy farmers. This farmer-led and farmer-funded initiative shared a mission with another farmer led and farmer-funded initiative, the United Dairy Industry Association (UDIA), created in 1971 to unite several local dairy promotion entities. Through their efforts, per capita dairy consumption has increased more than 14% since 1983. As non-profit entities, these organizations are grassroots created and grassroots led with a single, unified mission. In 1995, the dairy farmer leadership realized that they could have a bigger impact on dairy demand if the NDB and UDIA combined efforts so they created Dairy Management Inc. (DMI). By combining forces, farmer-funded promotion programs have maximized the impact of their promotions dollars through a coordinated and unified marketing plan that uses national and local resources in an efficient and effective manner. In 2011, dairy importers were represented through a 7.5-cents-per-hundred weight investment. Dairy Management Inc. DMI is a non-profit management organization that leads the farmer-funded dairy promotion programs nationwide. DMI manages national and local organizations and ensures that the principle of grassroots created, grassroots led, remains the cornerstone of the company. DMI manages: * American Dairy Association * National Dairy Council * Innovation Center for U.S. Dairy * U.S. Dairy Export Council * Dairy Research Institute The mission of DMI is to increase sales and demand of U.S. dairy products on behalf of U.S. dairy producers and importers. The DMI board is comprised of dairy producers and dairy importer representatives from around the country who authorize the activities of the unified marketing plan. Funding for the plan comes from a 15 cent per hundredweight assessment for farmers and 7.5 cents per hundredweight from dairy importers. Governance of DMI is structured to maximize national and local representation on behalf of the nation's dairy producers and importers. Competitive Talent DMI staff comes from a variety of backgrounds including a high percentage from for profit consumer product goods companies (CPGs), advertising and public relations agencies and marketing firms. DMI retains staff that can effectively and efficiently work with a number of business partners which include Domino's Pizza, McDonald's, Kraft Foods, Deans Foods, LALA, HP Hood and Leprino Foods. The talent pool DMI recruits from are typically for profit companies as described above. CPGs and agencies have a competitive advantage as they can offer stock options and other compensation benefits to their recruits. Despite that, DMI recruits and retains high performing talent because of the culture and opportunities that exist and because of the success that DMI has had in working with the industry to increase dairy sales. DMI offers a strong professional growth and development program and offers competitive compensation and benefits wherever possible. Unmet Demand DMI and its affiliate organizations are focused on increasing dairy sales by meeting unmet demand. Unmet demand is the difference between existing sales and potential sales and can be captured by offering the products consumers want, when and where they want them. Unmet demand exists in many areas: Fluid Milk Milk is a nutrient rich product and essential to a healthy diet, but it is recognized that per capita consumption of fluid milk had slowly yet steadily declined over the past twenty years. As part of the effort to reverse this trend, DMI fielded a study among school aged children in which children claimed that they would drink more milk at school if: it tasted better, were offered in more flavors, looked more appealing and were more convenient. The study informed the development of new single-serve, re-sealable, contemporary milk packaging. Follow-up trials offering the enhanced product to students demonstrated an 18% improvement in milk sales. DMI took this research to the quick serve industry and in 2004; two of the nation's top chains began offering an improved product. McDonald's increased their sales six fold, and six years later, they remain at that level. Their success bred more success. Today, over 70,000 quick serve restaurants plus 11,000 schools offer milk in an improved package and in more flavors. This research and the efforts of DMI to encourage adoption by schools and the quick serve industry means two very important things: * In 2006 per capita consumption of fluid milk rose for the first time in over two decades * Today, 1.3 billion times a year, consumers get the product they want, when and where they want it which equates to over 250 million incremental pounds of milk sold each year. The nation's largest restaurant chain, McDonald's, continues to be a "dairy destination" for millions of Americans as part of a multi-year partnership with DMI. * McCafe specialty coffees contain up to 80% milk and have been available nationwide for more than two years. These products alone use an additional million 300 pounds of milk annually. The line will continue to be updated with new varieties and flavors and continues to represent a true growth opportunity for dairy. Other major QSR chains such as Burger King have added specialty coffee lines as a result of McDonald's success. * Frappes, consisting of approximately 50 percent milk, are now in all of McDonald's 14,000 restaurants. The products, offered in mocha and caramel flavors, will use an additional 100 million pounds of milk annually. New varieties such as Chocolate Chip are added to the line every year to keep it exciting for consumers. * Real Fruit Smoothies, available in strawberry, wild berry and pineapple mango flavors, launched nationwide in July 2010 and use low-fat yogurt. The smoothies will require an additional 23 million pounds of milk annually. * New Fat Free Chocolate Milk rolled out nationally in March, 2012 as the beverage of choice in the new nutritionally improved Happy Meals. More kids are now choosing milk as their beverage with their Happy Meals. Chocolate Milk is now the featured beverage for Happy Meals in all national promotions and advertising. * There are more exciting new products yet to come. The chain has welcomed four DMI employees to work onsite fulltime at McDonald's Menu Development Center in Oak Brook, Illinois, in addition to the support of a Registered Dietician who spends 50% of her time at McDonald's and a dedicated relationship manager. These employees, who have an extensive dairy food science background, work side-by-side with the McDonald's team every day on a wide range of dairy-friendly beverages, sandwiches and dessert ideas which will help grow dairy sales over the next few years. Over 24 new menu items where dairy is a key ingredient are in various stages of development, with our onsite team leading the projects. All these efforts are meeting unmet consumer demand.
DAIRY MANAGEMENT, INC.'S ACTIVITIES FOR 2011 (CONT) FORM 990, PART III (CONT) DMI is also partnering with HP Hood and its Lactaid brand - the category leader with more than 70 percent of all lactose-free dairy sales - to help grow fluid milk sales. If we can recapture the 53 million U.S. adult consumers who currently restrict or avoid dairy consumption due to real or perceived lactose intolerance, it represents a tremendous opportunity to grow milk sales. If we can bring them back to dairy and get them to 3 servings daily of milk, cheese and yogurt, estimated dairy consumption could grow by approximately 2 billion pounds of milk annually. In 2010, the gap between lactose intolerant and Lactose tolerant purchasing of milk and cheese narrowed by 276 million pounds annually. To help meet this unmet demand, Lactaid has introduced new products such as half and half and the 96 ounce container -- the fastest-growing SKU in the category. In addition, five new processer entrants offering 13 new product SKUs joined the category since the start of the program. Additional efforts focus on health professional and consumer health and wellness education, which has had a marked impact on the recommendations health care providers are offering their patients as well as the way consumers are purchasing dairy. Cheese Per capita consumption of cheese steadily rose in the 80's, 90's and early 2000's. In the mid-late 2000's, consumption was flat and, in one area, down: pizza cheese. 25% of all cheese used in the U.S. is served on pizza. Dairy producers worked with leading pizza chains in the late 2000's to help revitalize this category, reverse the trend and grow cheese sales. Results have been very positive; domestic disappearance of Other Than American Cheese in 2011 increased 3.3%, or 2 billion pounds of milk, as compared to 2010. This results in two consecutive years of growth; disappearance was up 3.6%, or 2.1 billion pounds of milk, in 2010 vs. 2009. Dairy producers continue to invest in the category, with Domino's Pizza, to ensure that the positive trend continues and that the category leaders continue to innovate and promote cheese-centric menu items. * In 2011, Domino's modified their Carryout Specials to align with their newly transformed business. In May 2011, they featured a Carryout Special from Monday - Wednesday, designed to drive traffic and sales during the slower part of the week. They were so pleased with the results that the promotion continued throughout the calendar year. Late 2011, Domino's launched their Stuffed Cheesy Bread line, with three varieties, each containing as much cheese as a medium pizza. Sales far exceeded Domino's expectations, and they continued to feature Stuffed Cheesy Bread on national TV in early 2012. Additionally, chains responded with cheesy breadsticks and continued their focus on pizza and cheese. * Dairy producers are into their third year of collaboration with Domino's in the area of school lunch. The Domino's Smart Slice line of six pizzas are now in over 310 school districts in 37 states, throughout the country. All pizzas were formulated to meet the new USDA school meal requirements, which go into effect in the fall of 2012. Domino's created a catalytic effect in this channel, as well; frozen pizza manufacturers have introduced new pizzas and Pizza Hut recently introduced a school lunch pizza program at the School Nutrition Association annual conference in July. When it comes to school, pizza remains the number one entre. DMI is working with the pizza category leaders to reformulate their school pizza to meet tighter nutrition standards. Ensuring pizza is seen as a nutrient-rich food is essential as over 25% of all school meals include pizza. Cheeseburgers represent about 5% of all cheese use and DMI works with McDonald's and others on cheese focused menu items. DMI is working closely with McDonald's to develop new cheese varieties which will be used on a wide array of specialty sandwiches that are rolling out late 2012 and throughout 2013. In addition, our onsite scientists are leading development efforts for a natural cheese initiative which will lead to over 50% of cheese in McDonald's system being natural by 2017. This meets a consumer demand for more natural, unprocessed foods. Natural cheese also has 50% less sodium than processed, which is an important initiative for McDonald's. Natural Cheese utilizes approximately 20% more milk per pound compared to processed cheese, so the transition will lead to a significant increase in incremental pounds of milk utilized. Yogurt The yogurt category has seen tremendous growth - over 10% in the key grocery channels between 2006 and 2010 -- thanks to new product introductions that addressed unmet consumer demand. Through its science, consumer insights, and industry outreach, DMI has assisted the industry with product development and uncovering new consumer insights and trends that have assisted in fueling this growth. In addition, with the assistance of DMI, today yogurt is a mainstay menu item at quick serve restaurants; where just five years ago very few offered this product. This is further evidence that DMI, through partnerships with the quick serve industry, works to extend the places and times of day that yogurt is offered. Global Markets In 1995, when dairy farmers created DMI, they also saw the potential for dairy sales internationally and founded the U.S. Dairy Export Council (USDEC), a non-profit, independent, membership organization that represents the export trade interests of U.S. farmers, processors and manufacturers. With over 100 member companies, USDEC works to enhance U.S. global competitiveness and assist the industry to increase global dairy ingredient sales and exports of U.S. dairy products. The organization accomplishes these goals through market development programs that seek to build overseas demand, resolve market access barriers and advance industry trade policy goals. Dairy exports have steadily grown in the past fifteen years and now a growing and significant proportion of the U.S. milk supply is sold overseas: In 2011, 13.3 percent of total milk solids production was exported, up from 12.8 percent in 2010. Such export expansion has been due in part to USDEC programming that provides professional export marketing support from its headquarters staff in Arlington, Virginia, and international representation in Mexico, South America, Europe, Middle East, Southeast Asia, China, Korea and Japan. For more information on USDEC, visit their web site www.usdec.org.
DAIRY MANAGEMENT, INC.'S ACTIVITIES FOR 2011 (CONT) FORM 990, PART III (CONT) Ingredients A few decades ago, whey was a by-product of cheese making that was spread on fields to help feed the crops. Today, it is a highly sought after protein source, used around the globe in everything from energy bars to smoothies. Dairy farmers and importers, through their checkoff program, support Dairy Research Centers at Universities across the nation. These centers conduct nutrition and product research and work together with USDEC's Global Marketing Program to promote new uses for dairy ingredients. The outreach includes working with more than 20 companies on an annual basis to support development for consumer relevant products which include dairy ingredients. These products provide an important sales opportunity, utilizing billions of pounds of milk each year. And, by doing so, dairy checkoff has played an important role in supporting the phenomenal growth in value-added whey ingredient production - assisting in doubling the market between 2004 and 2011. Steady growth has continued over the past five years with these high value whey proteins increasing by 42.9% or 75 million pounds. Sustainability For centuries, dairy families and businesses have had a proud legacy of providing nutrient-rich products that promote good health and well-being throughout all stages of life. Dairy farmers' responsibility for the earth and a passion for consumer satisfaction come naturally. And today, there is growing consumer demand for healthy, environmentally sustainable products. In fact, research has indicated that consumers, including frequent milk users, are becoming more concerned with their personal impact on the environment. The general population is changing how and what they buy, and how they dispose of products in order to lead a more environmentally friendly lifestyle. Research shows that if consumers believe dairy is not only nutritious, good-tasting, and delivered at a good value, but also environmentally-friendly, then their consumption could increase. Through the U.S. Dairy Sustainability Commitment, established by dairy farmers in 2007, organizations at every step in our supply chain - from dairy farms to processors to the local grocer - have made an unprecedented commitment to work together to build on our legacy and identify and deploy sustainability innovations that make good business sense. The industry wide commitment to sustainability is designed to move innovation forward and to forge a more sustainable and profitable U.S. dairy industry. DMI staff has facilitated accomplishments including: * Developing key strategic partnerships with governmental and nongovernmental organizations * Engaging more than 830 stakeholders who invested approximately 6,700 working days supporting sustainability projects throughout 2011 * Conducting research to set the record straight and establish baseline measures of dairy's environmental impact, from which we can tell our story of progress Success through Partnerships DMI's impact on dairy sales in the U.S. and abroad is amplified by successful partnerships. The farmer and staff leadership at DMI realized early on that promotion funding was finite but its impact could be infinite. By working with the dairy industry, the quick serve industry, consumer product companies, health professional organizations, universities and others, DMI has extended the impact of dairy checkoff promotion dollars. DMI partnerships with industry leaders have resulted in billions of additional pounds of milk sold. This approach has been successful because DMI is: * Working with companies whose strategies are aligned with dairy producers * Working with category leader companies that can affect sales across the entire category, not just for a specific brand * Using industry investments to build on producer investments to help grow sales. In the fluid milk and cheese examples discussed earlier, for every $1 that dairy producers contribute, our partners invested more than $6. This includes equipment at restaurants to accommodate new specialty beverages, marketing and advertising campaigns, and dedicated dairy-specific menu development and innovation. Partnerships extend the impact of the farmer's promotion dollars which means more opportunities exist to meet unmet demand. DMI formed the Innovation Center for U.S. Dairy in 2008 to further amplify this business model by providing a forum for the dairy industry to pre-competitively address common barriers and opportunities for growth. Innovation Center priorities are dairy farmer priorities: Health and Wellness, Research and Insights, Globalization, Sustainability, and Consumer Confidence. The Innovation Center boasts participation from 200+ companies and more than 800 individuals, all volunteering time and resources to support industry growth and extending the impact of promotion dollars. Most recently, DMI founded the Dairy Research Institute to strengthen U.S. dairy's access to and the industry's investment in technical research to drive innovation and grow sales in the United States and around the world. The Institute supports the nutrition, product and sustainability research needs of the industry on behalf of the National Dairy Council and the Innovation Center for U.S. Dairy. In 2010, nearly $3.5 million in non-checkoff resources from government and non-government sources, including direct dollars, in-kind services and volunteer manpower hours by industry and technical experts have been raised to support projects that improve efficiency, lower costs, add business value, and contribute to the sustainability of U.S. dairy.
DAIRY MANAGEMENT INC.'S ACTIVITIES (CONT.) FORM 990, PART III (CONT.) Health & Wellness Since 1915, the National Dairy Council (NDC) has funded research and provided education ensuring that dairy's naturally nutrient-rich package is protected and promoted as a critical part of a healthy lifestyle. Most recently this research was used to inform the 2010 Dietary Guidelines for Americans (DGA) process. The DGAs shape the nutritional guidelines for governmental feeding programs (including at schools), and are represented in the USDA Food Guide Pyramid. The results of this effort served as support for the role and value of 3 servings of low-fat and fat-free dairy foods each day, which was reinforced in the recent scientific report from the Dietary Guidelines Science Advisory Committee. There's a library worth of science proving dairy's health benefits and consumer desire for dairy. Dairy health and wellness is coming to life through the Child Nutrition and Fitness Initiative, a unique program which empowers students to improve their own health through good nutrition and physical activity. Through a partnership with the National Football League (NFL), DMI and the NFL are inspiring kids to fuel up with nutrient-rich dairy foods and get up and play 60 minutes of physical activity every day. This initiative stands apart from other obesity fighting efforts because the students lead the program evaluating their school's overall "wellness" and help choose the food and physical activities they want to do. Fuel Up to Play 60 (FUTP 60) is now being implemented in over two-thirds of our nation's schools (more than 70,000), reaching 36 million students. Kids represent 100 percent of our future consumers. FUTP 60 helps protect dairy's place in schools and helps grow sales by introducing dairy in breakfast and after-school snack offerings and in new packages and formulations. Other partners include the U.S. Department of Agriculture, which signed a memorandum of understanding with DMI to bring more awareness and support for this program, health and nutrition organizations, including the American Academy of Pediatrics, the American Dietetic Association and the School Nutrition Association. In addition, the business community supports these efforts, including Domino's Pizza, Kraft Foods, LALA, HP Hood and Leprino Foods. Unique Local and National Resources Across the country there are more than 350 individuals working each day to promote and protect dairy. These people are experts in communications, school programs, nutrition affairs and marketing. They have decades-long relationships with school systems, health professional organizations and universities. Their efforts are coordinated into an annual unified marketing plan to ensure efficient and effective use of farmer resources. Partners are attracted to DMI and its local affiliates because of this unique and valuable resource that exists across the country. At its heart, dairy promotion is grassroots created and grassroots led. Over the years, the farmer leadership has encouraged DMI to grow sales, look for unmet demand opportunities and protect and promote dairy's place in a healthy diet. Per capita consumption of dairy products is up, from 522 pounds in 1983 to over 600 pounds today. Dairy farmers and importers benefit from the partnerships, nutrition research and product development efforts that they fund as the dairy checkoff and DMI help create new sales opportunities for dairy products, here and abroad. For more information on DMI and the dairy checkoff please visit dairyinfo.com.
DESCRIBE THE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, LINE 11A FORM 990 INFORMATION WAS DISCUSSED WITH THE OFFICERS OF THE BOARD OF DIRECTORS. FORM 990 IS AVAILABLE TO BOARD MEMBERS FOR REVIEW UPON REQUEST. MANAGEMENT REVIEWS THE 990 DETAILS FOR COMPLIANCE WITH THE ORGANIZATION'S TAX SPECIALISTS FROM ITS AUDIT AND TAX FIRM. MANAGEMENT AND CORPORATE COUNCIL REVIEW THE POLICIES RELATING TO GOVERNANCE, MANAGEMENT AND DISLOSURE TO ENSURE AND MONITOR COMPLIANCE WITHIN THE ORGANIZATION.
Description of Process to Monitor Transactions for Conflicts of Interest FORM 990, PART VI, LINE 12C POLICY REVIEWED IN DETAIL WITH THE BOARD OF DIRECTORS, MANAGEMENT AND ANNUALLY BY THE ORGANIZATION'S CORPORATE ATTORNEYS, AND THERE ARE PERIODIC COMPLIANCE DISCUSSIONS BETWEEN THE OFFICERS OF THE BOARD OF DIRECTORS AND MANAGEMENT DURING THE YEAR. BOARD MEMBERS ARE ASKED TO RECUSE THEMSELVES FROM VOTING IF THEY ARE PERSONALLY INVOLVED IN A MATTER.
Offices & Positions for Which Process was Used, & Year Process was Begun FORM 990, PART VI, LINE 15A AND 15B COMPENSATION OF THE CEO IS DETERMINED BY INVOLVEMENT OF THE PERSONNEL COMMITTEE OF THE BOARD OF DIRECTORS AND FOR OTHER EMPLOYEES OF THE ORGANIZATION, THROUGH THE USE OF INDUSTRY SURVEYS, MARKET SALARY GUIDES AND OTHER COMPETITIVE COMPENSATION INFORMATION.
AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, WHISTLE BLOWER POLICY, DOCUMENT RETENTION POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST.
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PATRICIA M. BOETTCHER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BRIAN W. ESPLIN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN B. FISCALINI TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DAVID P. CROWL TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DOUGLAS T. DANIELSON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAUL A. FRITSCHE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:STEVEN R. HANSON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JEFFREY A. HARDY TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:NEIL A. HOFF TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:KENTON W. HOLLE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:LARRY B. JAGGERS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RITA P. KENNEDY TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RONALD L. KOETSIER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DOUGLAS L. KRICKENBARGER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:SHARON K. LAUBSCHER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BYRON A. LEHMAN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:STEPHEN D. MADDOX TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:GEORGE E. MARSH TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RONALD R. MCCORMICK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:KEN MEYERS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ZACHARY H. MYERS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DOUGLAS D. NUTTELMAN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ELLEN H. PARADEE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RAY S. PROCK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RANDY G. ROECKER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CARL A. SCHMITZ TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BRAD SCOTT TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RONALD E. SHELTON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:SANFORD STAUFFER TITLE:TREASURER HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:SUSAN D. K. TROYER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CARL F. VANDEN AVOND TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ARLENE J. VANDER EYK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:GIGI VITA TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:HAROLD "ANDY" WICK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:LARRY ALEXANDER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ELIZABETH (LIZ) ANDERSON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:VICTOR BISSELL TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAUL BROERING TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BOBBY COMBS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:TOM CRONER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BRYAN DAVIS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:AUDREY DONAHOE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:TOM DORSEY TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAUL DOTON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:GLEN EASTER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:STEVE P. FRISCHKNECHT TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOE L. GONZALEZ TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:R. STEVEN GRAYBEAL TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DAN GRUNHOVD TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DONALD GURTNER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:LESTER E. HARDESTY TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DAVID "SKIP" HARDIE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JERREL HEATWOLE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:VERNON HORST TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN HOWERTON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RON HURLIMAN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DWAINE JUNCK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ROBERT KRAN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN M. LARSON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ALLEN MERRILL TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JERRY G. MESSER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:KEN NOBIS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:LYNN RAMSEY TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JIM REID TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ARIE ROELOFFS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAUL E. ROVEY TITLE:CHAIR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:NORBERT SCHMIDT TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CONNIE SEEFELDT TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:WILLIAM B. SIEBENBORN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ROBERT SMIT TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOAN D. SMITH TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JAY STAUFFACHER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BERNIE TEUNISSEN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JOHN TRAWEEK TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JERRY TRUELOVE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DAVE VEENHOUWER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:TOM A. WOODS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JAMES L. AHLEM TITLE:VICE CHAIR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:RENAE A. DE JAGER TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:W. RYAN ANGLIN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:MARK E. ERDMAN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CARROLL V. WADE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAULA A. MEABON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DAN RICE TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:EARL STITZLEIN TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:EARL HORNING TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BILLY TRAVIS TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:MICHAEL FERGUSON TITLE:DIRECTOR HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Thomas Gallagher TITLE:CEO HOURS:1
HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Daniel Chavka TITLE:CFO HOURS:1
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2011

Additional Data


Software ID:  
Software Version:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
Dairy Management Inc
 
Employer identification number

36-3992031
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income
(e)
End-of-year assets


 		(f)
Direct controlling
entity

















Part II
Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section
(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled organization
Yes No
(1) UNITED DAIRY INDUSTRY ASSOCIATION INC

10255 W HIGGINS RD STE 900

ROSEMONT,IL60018
36-2702849 		PROMOTION IL 501(C)(6) N/A DMI
 
Yes
 
(2) NATIONAL DAIRY COUNCIL

10255 W HIGGINS RD STE 900

ROSEMONT,IL60018
36-1522265 		EDUCATION IL 501(C)(3) 9 UDIA
 
Yes
 
(3) INNOVATION CTR FOR US DAIRY

10255 W HIGGINS RD STE 900

ROSEMONT,IL60018
26-3918900 		PROMOTION IL 501(C)(6) N/A DMI
 
Yes
 








For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No












Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)
(a)
Name, address, and EIN of related organization



 		(b)
Primary activity



 		(c)
Legal domicile
(state or
foreign
country)
 		(d)
Direct controlling
entity


 		(e)
Type of entity
(C corp, S corp,
or trust)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership












Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III or IV.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
No
b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
No
c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
 
No
d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
No
e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
No
f Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
No
g Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
No
h Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
No
i Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
No
j Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
No
k Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .
1k
 
No
l Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .
1l
 
No
m Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .
1m
 
No
n Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
Yes
 
o Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
 
No
p Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
Yes
 
q Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
No
r Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
No
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of other organization 		(b)
Transaction
type(a-r) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1) UNITED DAIRY INDUSTRY ASSOCIATION

 N 625,224 CASH
(2) UNITED DAIRY INDUSTRY ASSOCIATION

 P 30,187,260 CASH
(3)
(4)
(5)
(6)
Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(e)
Are all
partners
section
501(c)(3)
organizations? 		(f)
Share of total income




 		(g)
Share of
end-of-year
assets 		(h)
Disproprtionate allocations? 		(i)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(j)
General or
managing
partner? 		(k)
Percentage
ownership
Yes No Yes No Yes No






























Schedule R (Form 990) 2011
Schedule R (Form 990) 2011
Page 5
Part VII
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule R (see instructions).
Identifier Return Reference Explanation
Additional Data


Software ID:  
Software Version: