Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions. Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
Public Interest Registry
Employer identification number
33-1025119
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions.
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II, or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) A person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the supported organization?
................
11g(i)
No
(ii)
A family member of a person described in (i) above?
......................
11g(ii)
No
(iii)
A 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
No
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of monetary support
Yes
No
Yes
No
Yes
No
(A)
INTERNET SOCIETY
541650477
0
Yes
Yes
Yes
38,137,514
Total
38,137,514
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 2
Part II
Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year (or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year
(or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (see instructions)
..................
12
13
First five years.
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.................................................
Section C. Computation of Public Support Percentage
14
Public support percentage for 2013 (line 6, column (f) divided by line 11, column (f))
.........
14
15
Public support percentage for 2012 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2013.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
.......................
b
33 1/3% support test—2012.
If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2013.
If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization
.....................................................
b
10%-facts-and-circumstances test—2012.
If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization
................................................
18
Private foundation.
If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions
.....................................................
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 3
Part III
Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year (or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
..
13
Total support. (Add lines 9, 10c, 11, and 12.)..
14
First five years.
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public support percentage for 2013 (line 8, column (f) divided by line 13, column (f))
.........
15
16
Public support percentage from 2012 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2013 (line 10c, column (f) divided by line 13, column (f))
......
17
18
Investment income percentage from 2012 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2013.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
........
b
33 1/3% support tests—2012.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
.....
20
Private foundation.
If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 4
Part IV
Supplemental Information.
Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2013
Additional Data
Software ID:
Software Version:
-
TIN:
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.
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
Public Interest Registry
Employer identification number
33-1025119
Return Reference
Explanation
Form 990, Page 1, Box G
DURING 2013, THE PUBLIC INTEREST REGISTRY CHANGED INVESTMENT ADVISORY FIRMS. ACCORDINGLY, GROSS RECEIPTS FOR FORM 990 PURPOSES TOTALED $120,482,205 IN 2013, OF WHICH $49,158,704 REPRESENTS THE GROSS AMOUNT RECEIVED FROM THE SALE OF SUCH FUNDS. THESE ASSETS WERE IMMEDIATELY TRANSFERRED TO AND REINVESTED BY THE NEW INVESTMENT ADVISORY FIRM IN ACCORDANCE WITH THE PUBLIC INTEREST REGISTRY'S INVESTMENT POLICY STATEMENT. Organization's Mission Form 990, Part III, Line 1 PUBLIC INTEREST REGISTRY'S EXEMPT PURPOSES ARE LESSENING THE BURDENS OF GOVERNMENT AS AN INTEGRAL PART OF THE INTERNET SOCIETY (ISOC), A 501(C)(3)ORGANIZATION, SUPPORTING THE IMPORTANT MISSION OF ISOC TO FACILITATE, SUPPORT AND PROMOTE THE EVOLUTION AND GROWTH OF THE INTERNET AS A GLOBAL RESEARCH AND COMMUNICATIONS INFRASTRUCTURE, AND EDUCATING THE COMMUNITY OF NONCOMMERCIAL, NON-GOVERNMENTAL ORGANIZATIONS (NGOS) AND OTHER NONPROFIT ORGANIZATIONS ABOUT HOW TO UTILIZE THE INTERNET MORE EFFECTIVELY AND MORE EFFICIENTLY TO ACCOMPLISH THEIR MISSIONS TO BENEFIT THE PUBLIC. Program Services Form 990, Part III, Line 4a: PUBLIC INTEREST REGISTRY'S PRIMARY ACTIVITY IS TO MAINTAIN THE .ORG DOMAIN REGISTRY AS THE EXEMPLARY TOP LEVEL DOMAIN (TLD) REGISTRY SERVICE, BY ADVOCATING FOR HIGHER STANDARDS OF INTERNET SECURITY, SAFETY AND RELIABILITY. PUBLIC INTEREST REGISTRY'S MISSION IS TO FACILITATE THE EFFECTIVE USE OF A GLOBAL INTERNET AMONG NON-COMMERCIAL AND OTHER INTERNET USERS WORLDWIDE. PUBLIC INTEREST REGISTRY IS COMMITTED TO SUPPORTING ISOC'S GOALS OF ENCOURAGING THE EVOLUTION OF THE INTERNET AS A RESEARCH, EDUCATION AND COMMUNICATION INFRASTRUCTURE EQUALLY ACCESSIBLE TO THE GLOBAL NON-COMMERCIAL, NGO AND NON-PROFIT COMMUNITY. IN 2011 PUBLIC INTEREST REGISTRY INITIATED ACTIVITY RESPONDING TO THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS (ICANN) INITIATIVE TO EXPAND THE NUMBER OF GENERIC TLDS AVAILABLE IN THE INTERNET IN AN EFFORT TO INCREASE COMPETITION, ENHANCE CONSUMER CHOICE, AND ENABLE INNOVATION. PUBLIC INTEREST REGISTRY ENGAGED IN EXTENSIVE CONVERSATIONS WITH MEMBERS OF THE GLOBAL NGO COMMUNITY ABOUT THEIR INTEREST IN AND SUPPORT FOR A UNIQUE .NGO/.ONG DOMAIN. THE OUTREACH EFFORT WAS DESIGNED TO SEEK BETTER UNDERSTANDING OF WHAT THE NGO COMMUNITY WOULD LOOK FOR IN A NEW .NGO/.ONG DOMAIN AND TO HELP DEVELOP THE ECONOMIC JUSTIFICATION FOR BUILDING SUCH A DOMAIN. IN ADDITION, PUBLIC INTEREST REGISTRY EXPLORED THE OPTION TO OFFER MULTIPLE INTERNATIONALIZED DOMAIN NAME (IDN) VERSIONS OF .ORG IN LANGUAGE-SPECIFIC SCRIPTS. SUCH PREPARATORY WORK WAS ESSENTIAL IN ASSESSING THE LEVEL OF INTEREST IN THESE NEW DOMAINS. SUBSEQUENTLY, IN APRIL 2012, PUBLIC INTEREST REGISTRY SUBMITTED SIX NEW TLD APPLICATIONS TO ICANN IN AN EFFORT TO CREATE AND BECOME THE REGISTRY OPERATOR OF .NGO, .ONG, AND FOUR IDNS: TWO CHINESE SCRIPTS, HINDI, AND CYRILLIC.IN NOVEMBER OF 2013, PUBLIC INTEREST REGISTRY ENTERED INTO CONTRACTS WITH ICANN FOR THE FOUR IDN TLDS. THREE OF THOSE TLDS WERE LAUNCHED IN APRIL 2014. THE FOURTH, A CHINESE FOUR-CHARACTER IDN, HAS BEEN APPROVED FOR DELEGATION BY ICANN. PUBLIC INTEREST REGISTRY IS ACTIVELY DEVELOPING A BUSINESS PLAN FOR THIS IDN AND WILL LAUNCH IT AS SOON AS THE PLAN IS FINALIZED. IN ADDITION PUBLIC INTEREST REGISTRY SIGNED CONTRACTS WITH ICANN FOR .NGO AND .ONG IN 2014 AND WE ANTICIPATE THOSE DOMAINS WILL LAUNCH IN OCTOBER 2014. IN 2012 PUBLIC INTEREST REGISTRY BEGAN RESEARCH AND INVESTIGATION INTO THE POTENTIAL FOR CONDUCTING REGISTRAR FUNCTIONS THROUGH AN AFFILIATE SO AS TO DISTRIBUTE DOMAIN NAME REGISTRATIONS WITH A FOCUS ON THE GRASSROOTS NGO COMMUNITY OF THE GLOBAL SOUTH. THIS RESEARCH AND INVESTIGATION IS DESIGNED IN PART TO DETERMINE IF DISTRIBUTION THROUGH AN AFFILIATE WILL BETTER SERVE OUR COMMUNITY AT REASONABLE COSTS WITH EXEMPLARY SERVICE. IN 2014, PUBLIC INTEREST REGISGTRY'S BOARD OF DIRECTORS AND OUR MEMBER THE INTERNET SOCIETY'S BOARD OF TRUSTEES APPROVED CREATING A NOT-FOR-PROFIT AFFILIATE FOR DISTRIBUTION OF DOMAIN NAMES AND RELATED SERVICES WITH A FOCUS ON UNDERSERVED AREAS IN THE GLOBAL SOUTH. PUBLIC INTEREST REGISTRY HAS STARTED THE PROCESS TO CREATE THE AFFILIATE WHICH WILL MOST LIKELY OCCUR IN EARLY 2015. ADDITIONALLY, PUBLIC INTEREST REGISTRY HAS ESTABLISHED A RESOURCE CENTER ON ITS VARIOUS WEBSITES AND LAUNCHED TARGETED EDUCATIONAL CAMPAIGNS TO MAKE AVAILABLE DOCUMENTS AND APPLICATIONS SUCH AS MARKETING TOOLS, WHITE PAPERS AND FAQ'S ON INTERNET TOPICS SUCH AS SOCIAL MEDIA NETWORKING AND INTERNATIONALIZED DOMAIN NAMES (IDN'S). IN ADDITION, PUBLIC INTEREST REGISTRY, SINCE ITS FOUNDING, HAS BEEN AN ACTIVE SUPPORTER OF THE NON-COMMERCIAL USERS CONSTITUENCY (NCUC) WITHIN ICANN. THE NCUC REPRESENTS THE VIEWS OF NON-COMMERCIAL, NGO AND NONPROFIT ORGANIZATIONS. PUBLIC INTEREST REGISTRY PROVIDES WEBINARS AND FORUMS FOR EDUCATIONAL PURPOSES WITHIN THE SCOPE OF THE REGISTRY INDUSTRY, SUCH AS THE .org FORUM AND DNSSEC WEBINARS. MANAGING THE .ORG REGISTRY INCLUDES MAKING SURE OUR COMMUNITY HAS A VOICE IN CRITICAL ISSUES RELATED TO INTERNET POLICIES AND PROCEDURES. TO EFFECTIVELY REPRESENT SPECIFIC AND COLLECTIVE INTERESTS,.ORG RELIES ON THE INSIGHT AND KNOWLEDGE OF ITS ADVISORY COUNCIL, BOARD OF DIRECTORS AND REGISTRARS. WORKING WITH ICANN, THE INTERNET SOCIETY (ISOC), TECHNICAL ENGINEERS AND VARIOUS INTERNET LEADERS AROUND THE WORLD, PUBLIC INTEREST REGISTRY INITIATES, SUPPORTS AND FUNDS INTERNET ENHANCEMENTS THAT MEET THE NEEDS AND GOALS OF .ORG CUSTOMERS. .ORG IS USED BY INDIVIDUALS, ORGANIZATIONS AND COMPANIES TO EDUCATE MOBILIZE AND EMPOWER THEIR COMMUNITIES. SEE ADDITIONAL INFORMATION ABOUT PUBLIC INTEREST REGISTRY'S ACTIVITIES ON THE PUBLIC INTEREST REGISTRY WEBSITE AT PIR.ORG.
Form 990, Part VI, Line 4a
PUBLIC INTEREST REGISTRY'S BYLAWS WERE AMENDED IN TWO SECTIONS: (1) TO ACCOMMODATE THE POSSIBILITY THAT A FUTURE PRESIDENT OF THE CORPORATION MAY OR MAY NOT BE A MEMBER OF THE BOARD WHEN ELECTED AND (2) TO CONFORM TO THE APPROVED PRACTICE OF THE CORPORATION REGARDING THE DUTIES OF THE TREASURER AND CLARIFYING THE TREASURER'S ABILITY TO DESIGNATE CERTAIN REPORTING DUTIES TO A SENIOR PERSON WITHIN THE CORPORATION'S FINANCE AND ADMINISTRATION DEPARTMENT.
Form 990, Part VI, Line 6
PUBLIC INTEREST REGISTRY IS A MEMBERSHIP CORPORATION AND ITS ONLY MEMBER IS THE INTERNET SOCIETY (ISOC), WHICH IS CLASSIFIED AS A PUBLICLY SUPPORTED CHARITABLE ORGANIZATION UNDER CODE SECTION 501(C)(3).
Form 990, Part VI, Line 7a
THE INTERNET SOCIETY APPOINTS THE MEMBERS OF THE GOVERNING BODY.
Form 990, Part VI, Line 7b
THE FOLLOWING DECISIONS OF THE GOVERNING BODY ARE SUBJECT TO THE MEMBER'S APPROVAL: (1) AMENDMENT, REVOCATION OR REPEAL OF THE BYLAWS; (2) ENTERING INTO, AMENDING, TERMINATING, ASSIGNING, OR BRINGING ANY LEGAL ACTION WITH RESPECT TO, OR WAIVING ANY MATERIAL RIGHT UNDER, AND AGREEMENT OR CONTRACT WITH: (I) THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS (ICANN) OR (II) AFILIAS LIMITED; AND (III) PAYMENT, CONTRIBUTION OR SUBVENTION OF ANY AMOUNT IN EXCESS OF $50,000 TO ANY PERSON, ENTITY OR ORGANIZATION, CHARITABLE OR OTHERWISE, OTHER THAN IN CONNECTION WITH THE PURCHASE OF GOODS OR SERVICES RECEIVED BY THE CORPORATION.
Form 990, Part VI, Line 11
THE IRS FORM 990 IS PREPARED AND REVIEWED BY AN INDEPENDENT ACCOUNTING FIRM GRANT THORNTON LLP. THE FINANCE TEAM, EXECUTIVE TEAM, AND LEGAL COUNSEL WILL COMPLETE A FINAL REVIEW ONCE THE FORM 990 IS DELIVERED. ONCE REVIEWED AND FINALIZED, THE FORM 990 IS SENT TO EACH BOARD MEMBER. PRIOR TO FILING, THE FORM 990 IS REVIEWED AT A BOARD MEETING, WITH A REPRESENTATIVE OF THE INDEPENDENT ACCOUNTING FIRM PRESENT TO ADDRESS ANY QUESTIONS FROM THE BOARD MEMBERS. AFTER THE BOARD'S REVIEW, THE FORM 990 IS FILED.
Form 990, Part VI, Line 12c
PUBLIC INTEREST REGISTRY'S CONFLICT OF INTEREST POLICY REQUIRES DISCLOSURE OF ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST ON THE PART OF AN OFFICER, DIRECTOR, MANAGER, OR MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS. AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST, AND MUST DISCLOSE ALL MATERIAL FACTS TO THE BOARD OF DIRECTORS AND/OR THE MEMBERS OF THE COMMITTEE WITH BOARD-DELEGATED POWERS CONCERNING THE PROPOSED TRANSACTION OR ARRANGEMENT. THE DISINTERESTED MEMBERS OF THE BOARD OR COMMITTEE WILL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS, AFTER CONSIDERING ALL MATERIAL FACTS, AND AFTER A DISCUSSION WITH THE INTERESTED PERSON. THE INTERESTED PERSON WILL BE REQUIRED TO LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE BOARD OR COMMITTEE DISCUSSES THE MATTER AND VOTES ON WHETHER A CONFLICT OF INTEREST EXISTS. If a Board member or a committee member is determined to have a conflict of interest, he or she is required to leave the Board or committee meeting while the Board or committee discusses, deliberates on, and votes on, the transaction in question.
Form 990, Part VI, Lines 15a & 15b
IT IS THE DESIRE OF PUBLIC INTEREST REGISTRY TO COMPENSATE EACH OF ITS OFFICERS AND KEY EMPLOYEES AT A LEVEL THAT REPRESENTS THE FAIR MARKET VALUE OF THAT PERSON'S SERVICES, AND DOES NOT EXCEED SUCH FAIR MARKET VALUE, TAKING INTO CONSIDERATION ALL FRINGE BENEFITS AS WELL AS CASH COMPENSATION. IN 2013, PUBLIC INTEREST REGISTRY HIRED AN OUTSIDE COMPENSATION CONSULTANT TO ANALYZE COMPARABLE DATA RELATING TO THE COMPENSATION OF ITS CEO, AND THE COMPENSATION OF ITS OTHER OFFICERS AND KEY EMPLOYEES. THE CEO STUDY WAS PERFORMED SEPARATELY. IN THE CASE OF THE CEO, THE CONSULTANT USED A COMPARATIVE SURVEY IN THE WASHINGTON, D.C. METRO AREA, LOOKING AT A MIX OF INDUSTRIES AND SIZES OF ORGANIZATIONS, BOTH NON-PROFIT AND FOR-PROFIT. THE CONSULTANT ANALYZED THE COMPENSATION RECEIVED BY SIMILARLY QUALIFIED INDIVIDUALS HOLDING COMPARABLE POSITIONS AT SIMILAR ORGANIZATIONS. THE CEO COMPENSATION COMMITTEE DISCUSSED AND ANALYZED THE CONSULTANT'S REPORT AND OTHER INDEPENDENT RESEARCH AND MADE ITS RECOMMENDATION TO THE BOARD OF DIRECTORS BASED ON THOSE FINDINGS. AFTER DETAILED DISCUSSION AND DELIBERATION AMONG BOARD MEMBERS, THE RECOMMENDATION WAS ACCEPTED AND THE DELIBERATION AND DECISION-MAKING PROCESS DOCUMENTED IN THE BOARD'S ANNUAL MINUTES. IN THE CASE OF THE COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES THE CONSULTANT USED BOTH (1) A COMPARATIVE SURVEY IN THE WASHINGTON, D.C. METRO AREA, LOOKING AT A MIX OF INDUSTRIES AND SIZES OF ORGANIZATIONS, BOTH NON-PROFIT AND FOR-PROFIT, AND (2) A LARGE NATIONAL SURVEY THAT ALSO COVERED A MIX OF INDUSTRIES AND SIZES OF ORGANIZATIONS, BOTH NON-PROFIT AND FOR-PROFIT. THE CONSULTANT ANALYZED THE COMPENSATION RECEIVED BY SIMILARLY QUALIFIED INDIVIDUALS HOLDING COMPARABLE POSITIONS AT SIMILAR ORGANIZATIONS. THE CONSULTANT THEN DISCUSSED THE DATA AND ITS FINDINGS WITH PUBLIC INTEREST REGISTRY'S INTERNAL COMPENSATION REVIEW COMMITTEE. THE INTERNAL COMPENSATION REVIEW COMMITTEE FOLLOWED THE RECOMMENDATIONS OF THE OUTSIDE CONSULTANT, AND SET COMPENSATION LEVELS WITHIN THE RANGE OF FAIR MARKET VALUE COMPENSATION, AS DETERMINED BY THE CONSULTANT. THE CEO ALSO PARTICIPATED IN THE PROCESS OF SETTING THE COMPENSATION OF THE OTHER OFFICERS AND KEY EMPLOYEES, BUT NOT HIS OWN COMPENSATION. BECAUSE OF THE DIFFERENCE IN THE LEVEL OF FORMAL DOCUMENTATION PREPARED, PUBLIC INTEREST REGISTRY HAS ANSWERED LINE 15A "YES", AND LINE 15B "NO". WE ARE REVISING OUR PROCESS SO THAT NEXT YEAR, WE EXPECT TO BE ABLE TO ANSWER "YES" TO BOTH.
Form 990, Part VI, Line 18
THE 990 IS DISTRIBUTED TO GUIDESTAR AND IS FREELY AVAILABLE ON THEIR WEBSITE. IN ADDITION PUBLIC INTEREST REGISTRY MAKES ITS 990 RETURN AVAILABLE TO THE GENERAL PUBLIC UPON WRITTEN REQUEST.
FORM 990 PART VI SECTION C, LINE 19
Public Interest Registry makes these documents available upon request.
Form 990, Part VII, Section B
AFILIAS LTD. (AFILIAS) PROVIDES REGISTRY TECHNICAL SERVICES TO PUBLIC INTEREST REGISTRY INCLUDING ELECTRONIC CONNECTION TO CUSTOMERS (REGISTRARS), TO ADD, MODIFY OR DELETE DOMAIN NAMES WITHIN THE .ORG DATABASE. THESE SERVICES INCLUDE 24/7, 365 DAYS A YEAR, TECHNICAL SUPPORT TO REGISTRARS, DEVELOPMENT OF REGISTRY COMPUTER SOFTWARE SYSTEMS INCLUDING CUSTOMER BILLING, AND REVENUE RECOGNITION IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, (GAAP). IN ADDITION, AFILIAS PROVIDES TECHNICAL SUPPORT IN IMPLEMENTING PUBLIC INTEREST REGISTRY'S DOMAIN NAME ABUSE POLICIES DESIGNED TO STOP OR REDUCE MALWARE, VIRUS OR OTHER ACTIVITIES. ALSO, AFILIAS COLLABORATES WITH PUBLIC INTEREST REGISTRY ON THE ANALYSIS AND DISCUSSION OF CUSTOMER AND BUSINESS TRENDS BOTH DOMESTICALLY AND INTERNATIONALLY. STARTING IN 2009, PUBLIC INTEREST REGISTRY COMMISSIONED A CONSULTANT TO DETERMINE IF THE PROPOSED CONTRACT EXTENSION IN DISCUSSION WITH AFILIAS REPRESENTED A FAIR MARKET PRICE. THE CONSULTANT CONCLUDED THAT THE FEES PAID TO AFILIAS UNDER THE PROPOSED EXTENSION WERE A FAIR MARKET PRICE. THE STUDY WAS EXTENSIVE AND COMPARED THE PROPOSED FEES FOR THE SERVICES TO BE RENDERED TO OTHER SIMILAR REGISTRIES THAT HAD AT LEAST 3 MILLION DOMAIN NAMES UNDER MANAGEMENT. IN EARLY 2012, PUBLIC INTEREST REGISTRY'S BOARD INITIATED AN INTERNAL UPDATE OF THIS STUDY, AND AGAIN COMPARED THE FEE STRUCTURE, INCLUDING FEES THAT WOULD ACCRUE TO AFILIAS AS A RESULT OF A PRICE INCREASE FOR DOMAIN NAMES. PUBLIC INTEREST REGISTRY FOUND THAT THE FEES PAID TO AFILIAS WOULD STILL BE WITHIN THE RANGE OF FAIR MARKET VALUE FOR THE SERVICES RENDERED.
FORM 990 PART XI, LINE 2B
THE PUBLIC INTEREST REGISTRY ISSUES AUDITED FINANCIAL STATEMENTS ON A SEPARATE BASIS. ADDITIONALLY, PUBLIC INTEREST REGISTRY'S FINANCIAL RESULTS ARE INCLUDED IN A CONSOLIDATED AUDITED FINANCIAL STATEMENT REPORT ISSUED BY THE INTERNET SOCIETY, PUBLIC INTEREST REGISTRY'S SOLE MEMBER.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.