Shepherds Foundation Inc.

“Shepherds Baptist Ministries is the sole member of Shepherds Foundation.”

“Shepherds Baptist Ministries elects the members of Shepherds Foundation's Board of Directors.”

“The Form 990 is prepared and reviewed by an independent CPA firm, reviewed in detail and approved by certain members of the organization's board and management, and a final copy of the return as filed with the IRS is presented to the full board before filing with the IRS.”

“Board members and officers are required to disclose potential conflicts on an annual basis. The Board Chairman and Board Secretary monitor the process. Should any potential conflicts of interest be disclosed, the board member or officer would be asked to refrain from participation in any deliberation or decision with regard to matters affected by the relationship.”

“The organization does not compensate any officers or key employees. Therefore, these lines were answered "no" in accordance with the instructions.”

“The organization's governing documents, conflict of interest policy, and financial statements are made available to the public upon request.”

“Staff are compensated by a related organization, Shepherds Baptist Ministries. Shepherds Baptist Ministries files all required payroll information returns as required by the IRS. As such, due to common paymaster rules as instructed by the IRS, the number of employees reported represent the number of employees who work for the filing organization but are compensated by a related organization.”

“As a supporting organization, the exempt purpose of the organization is to raise funds and support the ministry of Shepherds Baptist Ministries (SBM). Therefore, fundraising expenses equal to $323,690 have been reported in Column (b), Program service expenses on the functional expense statement as it is the "program" of the organization to raise funds for SBM. The Management and general expenses equal to $61,474 have been reported in Column (c) on the functional expense statement as these are determined to be the "administrative" expenses of the organization.”

“In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 6/30/2019. To date, Form 990 and its associated schedules have not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Part X, Lines 27-29: Line 27 - Net assets without donor restrictions $ 314,175 Line 29 - Net assets with donor restrictions $2,250,828 Total net assets $2,565,003”

“Change in value of beneficial interests -12,657.”

“The organization's Finance Commmittee assumes responsibility for oversight of the audit of its financial statements and selection of its independent accountant. This process has not changed since the prior year.”