Shining Hope for Communities Inc.

“The co-founders of shofco, jessica posner odede and kennedy odede, board member and ceo of the organization, respectively, have a family relationship.”

“The return was prepared by the outside accountants and reviewed by senior management. A final copy of the return was provided to the board before it was filed with the irs.”

“Officers, directors and trustees are required to report any new conflicts of interest to the board chairperson in a timely fashion. After disclosure of the financial interest and all material facts and after any discussion with the interested person, he/she leaves the governing board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining board or committee members decide if a conflict of interest exists. If the governing board or committee has reasonable cause to believe a member has failed to disclose actual or possible conflicts of interest, it informs the member of the basis for such belief and affords the member an opportunity to explain the alleged failure to disclose. If, after hearing the member's response and after making further investigation as warranted by the circumstances, the governing board or committee determines the member has failed to disclose an actual or possible conflict of interest, it takes appropriate disciplinary and corrective action.”

“Members of the board of directors complete a comparability data survey and evaluate performance of top management. Salaries are set by the board and subject to review by the finance committee, requiring a vote of the full board and based on comparable data. The last compensation review took place in may 2020, when ceo and cfo compensation was reduced due to the impact of the covid pandemic.”

“The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“As described further in schedule o, in 2020 shofco had a variety of efforts in response to the covid-19 pandemic in 2020.”

“On may 4, 2020, shofco received loan proceeds in the amount of $89,297 under the paycheck protection program. The promissory note calls for monthly principal and interest payments amortized over the term of the promissory note with a deferral of payments for the first six months. Under the coronavirus aid, relief, and economic security act (cares act), the promissory note may be forgiven by the small business administration in whole or in part. Shofco intends to use the proceeds for purposes consistent with the paycheck protection program and believes that its use of the loan proceeds will meet the conditions for forgiveness of the loan. Subsequent to year-end, the loan was forgiven (principal and interest totaling $89,897), and accordingly, shofco will record revenue from debt extinguishments during the year ending december 31, 2021.”