Cedar Crest Foundation

“Endowment funds are used to provide a predictable stream of funding to intended services and programs. The principal of the fund is held in perpetuity. The income, as specified by the donor, should be used for purposes of benevolent care for residents.”

“The corporation is exempt from income taxes under internal revenue code section 501(c)(3). Accordingly, there is no provision for federal or state income taxes. The corporation files form 990 (return of organization exempt from income tax) annually. When this return is filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to health care organizations include such matters as the following: the tax-exempt status of each entity, the continued tax-exempt status of bonds issued and various positions relative to potential sources of unrelated business taxable income (ubit). Ubit is reported on form 990t, as appropriate. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Form 990 filed by the corporation is subject to examination by the internal revenue service (irs) up to three years from the extended due date of each return.”