Americares Foundation Inc.

“FORM 990, SCHEDULE D, PART V, LINE 4 THE AMERICARES FOUNDATION ENDOWMENT IS INTENDED TO SUPPORT THE GENERAL CHARITABLE MISSION OF THE ORGANIZATION. The Foundation intends that the principal in the temporarily restricted and permanent endowments should remain untouched, while the earnings on the endowment's investments shall be used to support various charitable programs. DURING TAX YEAR ENDING 2015,THE FOUNDATION APPROPRIATED $400,000 (OF WHICH $300,000 and $100,000 WERE WITHDRAWN in 2015 and 2016, RESPECTIVELY, FROM ITS ENDOWMENT FOR EXPENDITURES TO SUPPORT THE RECONFIGURATION OF ITS DISTRIBUTION CENTER IN STAMFORD, CT. During the tax years ending 2017 and 2018, $170,000 and $158,000, respectively, was withdrawn from its endowment to support the implementation of a new enterprise resource planning ("ERP") system. Management of Americares has removed planned giving gifts from its annual operating budget and has established guidelines for allocating these gifts on an annual basis between the management-directed quasi endowment, an innovation fund, and strategic initiatives or operating funds. These guidelines are reviewed at the end of each fiscal year dependent on the level of planned giving gifts and the financial results for the fiscal year. Management informs the Board of Directors of these decisions. In tax years ending 2019 and 2018, respectively, Management designated $1.1 million and $2.7 million of gifts without donor restrictions for long-term investment in the quasi-endowment (i.e. without donor restrictions). Management has access to such funds and may use them without a resolution from the Board of Directors.”

“Form 990, schedule d, part x americares follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. Americares is exempt from federal income tax under irc section 501(c)(3), though they are subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the code. Americares has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. Americares has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements.”

“THE AMERICARES FOUNDATION, INC. FILES A CONSOLIDATED AUDITED FINANCIAL STATEMENT WITH ITS SUBSIDIARY, AMERICARES FREE CLINICS, INC. THE RECONCILIATION IN PARTS XI & XII OF SCHEDULE D RECONCILES BACK TO THE FOUNDATION'S FINANCIAL INFORMATION AS PRESENTED IN THE AUDITED FINANCIAL STATEMENTS AND NOT TO THE CONSOLIDATED NUMBERS (INCLUSIVE OF CLINICS). REVENUE ON BOOKS NOT ON RETURN FORM 990, SCHEDULE D, PART XI, LINE 2d Changes in split-interest agreements ($359,624) ---------------------------------------------------------- Total Revenue Adjustments for line 2d ($359,624) FORM 990, SCHEDULE D, PART XI, LINE 4b Rental Expenses Reclassed to Offset rental inCome ($194,695) Direct fundraising Expense ($770,256) Cost of goods sold ($932,201) --------------------------------------------------------- Total Revenue Adjustments for line 4b ($1,897,152)”

“Rental expense reclassed to offset rental income $194,695 direct fundraising expense $770,256 cost of goods sold $932,201 --------------------------------------------------------- total $1,897,152”