Women for Sobriety Inc

“In 2013, the organization received a donor-restricted endowment to fund the wfs online community. Under the terms of the gift, the organization purchased an annuity and the payments received are restricted for that purpose. As required by generally accepted accounting principles and state law, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. This annuity has been classified as a net asset with donor restrictions until it is appropriated for expenditure by the organization in accordance with donor restrictions. The organization has considered the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of the organization, and (7) the organization's investment policies. The organization has no unrestricted of permanently restricted endowment funds.”

“The organization is exempt from federal income taxes under provisions of section 501(c)(3) of the internal revenue code, and from pennsylvania taxation under the applicable provisions of the commonwealth's non-profit organization statutes. Under asc 740-10, accounting for uncertainty in income taxes, management has reviewed its current and past federal and state income tax positions and has determined that the tax positions taken are certain and there is no likelihood that a material tax assessment would be made if the respective government agencies examined the tax returns subject to audit. Accordingly, no provision for the effect of uncertain tax positions has been recorded, nor have any related interest and penalties been accrued. The irs and state taxing authorities retain the right to review filed tax returns, generally for three years after they are filed. However, the organization is no longer subject to income tax examinations for years prior to 2021, is not currently under audit, and has not been contacted by any of these tax jurisdictions.”