Horatio Alger Endowment Fund

“The endowment funds are used to fund undergraduate and graduate scholarships in honor of horatio alger members at the national, state levels, and within canada. They are also used to advance the association's national visibility initiatives through public service advertising, concerts, and communications program which should ultimately assist in raising visibility and increase contributions.”

“Horatio and the fund have been recognized as exempt from federal income taxes by the internal revenue service under section 501(c)(3) of the internal revenue code and each has been classified as an organization that is not a private foundation. Horatio and the fund follow the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the association may recognize 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 taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the tax positions and concluded that horatio and the fund have taken no uncertain tax positions that require adjustment to the consolidated financial statements to comply with the provisions of this guidance. Generally, horatio and the fund are no longer subject to income tax examinations by the u.s. Federal, state, or local tax authorities for years before 2011.”