Bet Tzedek

“The clients trust accounts are a part of the organization's normal operations. The accounts includes funds that are held in a trust on behalf of clients for the purposes of rendering legal services.”

“The organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the organization must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the board of trustees, the endowment assets are invested in a manner that is intended to produce total returns (net of inflation) in excess of the endowment spend-out rate, thus allowing for real growth of endowment assets while assuming a moderate level of investment risk.”

“The organization is exempt from federal income and california franchise taxes under section 501(c)(3) of the internal revenue code and the corresponding sections of the california revenue and taxation code. In accordance with financial accounting standards board ("fasb") accounting standards codification ("asc") topic no. 740, "uncertainty in income taxes" ("asc 740"), the organization recognizes the impact of tax positions in the financial statements if that position is more likely than not to be sustained on audit, based on the technical merits of the position. To date, the organization has not recorded any uncertain tax positions. During the year ended august 31, 2019, the organization performed an evaluation of uncertain tax positions and did not note any matters that would require recognition in the financial statements of which may have an effect on its tax-exempt status. The organization's income tax returns remain subject to examination for all tax years ended on or after august 31, 2015 with regard to all tax positions and the results reported.”

“Nationally recognized for its pro bono model, bet tzedek leverages the donated services of thousands of volunteers to dramatically increase the impact of its staff's work. Donated services and use of facilities in the amount of $5,236,029 is comprised of $662,968 in donated subscriptions and $4,573,061 in donated services. Donated subscriptions are recorded at their fair value when an unconditional promise to give has been made or when subscriptions have been received. The value of the donation is based on appraisal and other objective bases for determining the value or, in certain instances, based on management's best estimate of the fair value. Donated services are comprised of in-kind support for contributed professional services of volunteer attorneys, paralegals and law clerks for services received from the external and internal legal professionals based on the fiscal year. Donated services are valued at rates normally charged by the volunteers for similar services. In fiscal year 2019, bet tzedek received 21,174 hours of donated services that were provided as part of case work overseen by bet tzedek attorneys, paralegals, and law students.”