Silver Key Senior Services Inc

“The general purpose of the fund is to improve the ability of the organization to continuously carry out its mission by: 1. Helping to ensure the long-term financial stability of the organization; 2. Positioning it to respond to varying economic conditions and changes affecting the organization's financial position; 3. Creating an internal line of credit to manage financial flexibility; and 4. Seizing strategic opportunities. Operating reserves are intended to provide an internal source of funds for situations such as a sudden increase in expenses, one-time unbudgeted expenses, unanticipated loss in funding, or uninsured losses. Operating reserves may also be used for one-time, nonrecurring expenses that will build long-term capacity, such as investment in infrastructure. Operating reserves are not intended to replace a permanent loss of funds or eliminate an on-going budget gap.”

“The organization is exempt from federal income tax under section 501(c)(3) of the internal revenue code (the "code") and comparable colorado law as a charitable organization, whereby only unrelated business income, as defined by section 509(a)(2) of the code, is subject to federal and colorado income tax. For the year ended june 30, 2020, the organization had no unrelated business income. Accordingly, no provision for income taxes has been recorded. In addition, the organization qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). The organization evaluates the effect of uncertain income tax positions, if any, and provides for those positions in accordance with the provisions of us gaap. The organization discloses any material adjustments as a result of tax examinations. The organization reports interest and penalties resulting from these adjustments as interest expense and other expenses, as applicable. There were no income tax examinations or adjustments relating therefrom for the year ended june 30, 2020. The organization's informational tax returns are subject to examination by taxing authorities for a period of three years from the date it is filed. As of june 30, 2018, the informational tax returns for the three prior years are considered open for internal revenue service examination.”