Beaver County YMCA Endowment Foundation

“The board of directors designated $5,014,446 and $4,412,458 as of december 31, 2023 and 2022, respectively, of unrestricted net assets as a general endowment fund to support the future purchase of equipment and renovations to the beaver county ymca building. The board has a policy of appropriating for distribution each year only funds needed in an emergency situation and plans on retaining funds in the board designated endowment for growth. In establishing this policy, the organization considered the long-term expected return on its invest assets, the nature and expected duration of its endowment funds, and the possible effect of inflation. The organization expects the current spending policy to allow its endowment funds to grow at a nominal average rate of approximately 3% annually. This is consistent with the organization's objective to maintain the purchasing power of its endowment assets as well as to provide real growth through new gifts and return on investments.”

“The organization is exempt from federal income tax under section 501(c)(3) of the internal revenue code. However, income from certain activities not directly related to the organization's tax-exempt purpose is subject to taxation as unrelated business income. The organization had no unrelated business income for the years ended december 31, 2022 and 2021. In addition, the organization qualifies for the charitable contribution deduction under section 170(b)(1)(a) and have been classified as organizations other than a private foundation under section 509(a)(2). Income tax benefits are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. The organization have analyzed tax positions taken for filing with the internal revenue service. The organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the organization's financial condition, results of operations or cash flows. Accordingly, the organization has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at december 31, 2022 and 2021. The organization's policy is to classify any income tax related interest and penalties to interest expense and other expenses, respectively. The organization is subject to routine audits by taxing jurisdictions; however, there is currently no audits for any tax periods in progress.”