1. AERDO GIK STANDARDS Revisions Proposed for 2009 GIK Summit – December 7 th and 8 th Chevy Chase, Maryland Note: The AERDO GIK Standards can be found online on the GIK Summit website at the following URL: http://www.giksummit.com/GIK_summit_09/standards.html

2. Introduction 1999: Executive Summary 2009: –Purpose –Function –Maintenance –Compliance

3. Standard 1: Mission 1999: Compliance with mission of NPO and affiliates. 2009: Compliance with mission of NPO.

4. Standard 2: Product Appropriateness 1999: Product dating should allow sufficient time for distribution. 2009: Product dating should allow sufficient time for consumption by beneficiaries, refers to WHO and InterAction standards for quality control. http://www.leb.emro.who.int/crisis/guidelines_for_Drug_Donations.pdf http://www.who.int/hac/techguidance/pht/en/1_equipment%20 donationbuletin82WHO.pdf http://www.gdrc.org/ngo/pvo-stand.html

5. Standard 3: Valuation 1999: FMV is maximum price between willing market participants at wholesale level. 2009: Generally, FMV is maximum price a retailer would pay a wholesaler for a GIK asset, an exit price based on FASB hierarchy of 1) quoted price of identical item; 2) price of similar items from observable sources; 3) price of similar items from unobservable sources. Note: for further information on GAAP guidance in regards to Fair Value, please see ASC Topic 820.

6. Standard 3: Valuation 2009: Donor-provided values may be used as one input to prove value, but are insufficient in themselves to establish value. FMV must be substantiated with objective measures. 2009: FMV is not reduced by a lack of marketability if the utility of the commodity is not decreased. Note: for further information on GAAP guidance in regards to Fair Value, please see ASC Topic 820.

7. Standard 4: Documentation 1999: Documentation of value and inventory provided by donor. 2009: NPO is responsible to verify nature, content and value of donation, needs proof of third-party shipping records. 2009: End-use or transfer records not required prior to recording revenue.

8. Standard 5: Revenue & Expenses 1999: 200% shared among partners, generally limited to two NPOs

9. Standard 5: Revenue & Expenses 2009: Requirements for revenue recognition: Variance power – the ability of the recipient organization to exercise control over the GIK donation to direct or redirect it without prior consent of the donor…When a donor specifies a beneficiary but does not provide an organization variance power, the organization is an Agent. Note: please see ASC 958-605-25-25, 26 or the AERDO Standards appendix on page 30 for FASB definition of Variance power

10. Standard 5: Revenue & Expenses 2009: Requirements for revenue recognition: Title and ownership, preferably in writing by donor Organizations generally cannot co-own an asset and declare a percentage of a single good. However, organizations can receive an allocation from a donor (in writing preferably).

11. Standard 5: Revenue & Expenses 2009: Requirements for revenue recognition: NPOs to evaluate: if NPO is an organization other than the initial recipient or end-use charity, should that NPO be involved in the transaction? Does that NPO add utility to the GIK donation? If the NPO does not increase the utility of the donation, the NPO should consider removing itself from the transaction. Note: please see ASC 958-605-25-25, 26 or the AERDO Standards appendix on page 30 for FASB definition of Variance power

12. Standard 6: Service Fees 1999: Service fees must reflect actual costs of GIK transactions 2009 Service fees charged by NPOs must reflect actual costs of GIK transactions. This standard does not refer to the nominal fees paid by NPOs to corporate or nonprofit donors. This standard does not refer to the monetization of GIK donations for program support.

13. Glossary and Appendices 2009: Updated, simplified, enhanced