Committee of 100 Inc

“On may 21, 2018, the committee received a guarantee from a committee member of an annual commitment of $500,000 for 10 years. The total $5,000,000 guarantee was recognized as a pledge receivable during the year ended june 30, 2018 and is to be used 50% for general operations (general fund) and 50% for programs approved by the committee's board of directors (earmarked funds). Income earned from the endowment fund during the 10-year period will be applied against this annual commitment. The difference between the investment income applied and the $500,000 in any given year (shortfall) will be paid by the donor. In any year where endowment investment income exceeds $500,000, such excess will be returned to the donor to the extent of any previous years' shortfall paid by the donor, with any remaining amounts retained by the committee for the earmarked fund.”

“The committee has been granted tax-exempt status by the internal revenue service under section 501(c)(3). Contributions to the organization are tax deductible to donors under section 170 of the internal revenue code. The organization is not classified as a private foundation. Accordingly, no provision for income tax has been made in the accompanying financial statements. The fund is classified as a partnership for federal and state tax purposes and shall be subject to all federal tax laws governing partnerships and limited liability companies (llc). An llc is not subject to federal income taxes. In lieu of income tax, the members of an llc may be subject to state income taxes on their proportionate share of the entity's taxable income. The fund may also be subject to an annual tax and llc fees, based upon gross receipts from all sources derived from or attributable to the state of new york, imposed by the new york franchise tax board as well as taxes at various rates from certain other states in which the fund does business. U.s. Gaap provides disclosure guidance about uncertain tax positions taken by an entity in its tax returns. Management has considered its tax positions and does not believe that the organization has any uncertain tax positions that require adjustment or disclosure in the financial statements. The organization's returns are subject to examination by federal and state taxing authorities, generally for three to four years, respectively, after they are filed.”