Benevolent Fraternity of Unitarian Churches

“A prior year endowment expenditure include an endowment settlement of $985,900. During the year ended april 30, 2017, the organization obtained approval from the massachusetts attorney general's office to release the restriction of the frances m. Barnard fund in the amount of $2,680,627. Under the stipulations and upon release of the restriction, the organization disbursed $959,400 to an unrelated entity that will expend the funds for their initial intended purpose of supporting the elderly. In connection with the transaction, the organization incurred $26,500 in legal fees, combined these expenditures are included as endowment settlement in the amount of $985,900 in the change in endowment by net asset classification for the year ended april 30, 2017. The organization's spending is determined annually at the discretion of the organization's finance committee and board of directors. The purpose of the endowment funds are for various social programs to benefit the poor, elderly or for maintaining the organization's property.”

“The organization is a nonprofit organization as described in section 501(c)(3) of the internal revenue code and is exempt from federal and state income taxes on trade or business profits generated by activities related to the organization's exempt function. The organization may be subject to federal and state income taxes for profits generated from trade or business activities unrelated to the organization's exempt function. As of april 30, 2023, management believes that the organization has not generated any unrelated business taxable income. The organization assesses the recording of uncertain tax positions by evaluating the minimum recognition threshold and measurement requirements a tax position must meet before being recognized as a benefit in the financial statements. The organization's policy is to recognize interest and penalties accrued on any uncertain tax positions as a component of income tax expense, if any, in its statements of activities. The organization has not recognized any liabilities for uncertain tax positions or unrecognized benefits as of april 30, 2023. The organization does not expect any material change in uncertain tax benefits within the next 12 months.”