Golden Key International Honour Society Foundation Inc.

“The basic philosophy governing the investment of the society's portfolio is the long term preservation of principal. The general fund is a board-designated quasi-endowment fund. The general fund is set aside for current and future scholarships, uses a total return investment approach to maintain purchasing power, and allows for $270,000 in annual spending. Starting in 2014, the annual spending amount was based on a 3-three average of earnings. In establishing this policy, the society considered the long-term expected return on its investment assets, the nature and duration of the individual endowment funds, some of which must be maintained in perpetuity because of donorrestrictions, and the possible effects of inflation. The society's objective is to maintain the purchasing power of the endowment assets as well as to provide additional real growth through investment return. The society expects a rate of return of 3% to 4% annually. Actual returns in any given year may vary from this amount. The board of directors imposed a safety reserve level of $4,000,000, and this level is reviewed annually.”

“The society recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authority, based on the technical merits of the position. The golden key international honour society, inc., including its branch activities in australia, canada, new zealand and india, are exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code (the code). The society's south africa branch is registered as an overseas company subject to the respective charitable laws that govern south africa. The society is not a private foundation. The golden key international honour society foundation, inc. (the foundation) is exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code (the code). The foundation is not a private foundation. The society is subject to federal and state income taxes on income which is determined to be unrelated to its exempt purpose, if any. Tax years that remain subject to examination by major tax jurisdictions date back to the year ended december 31, 2014. The society is liable for any tax related to its south africa branch. In accordance with the asc, an asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for the difference between the consolidated financial statements and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce the deferred income tax assets to amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities. There were no deferred or current income taxes for the years ended december 31, 2017 and 2016. As of december 31, 2017 and 2016, there are no known items which would result in a material accrual related to uncertain foreign, federal, or state tax positions.”