Otterbein Green Hills Foundation

“The company's board has interpreted the state of ohio's uniform prudent management of institutional funds act (upmifa) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of the interpretation, the company classifies as permanently restricted, (a) the original value of gifts donated to the permanent endowment, (b) the orignal value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment funds that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the company in a manner consistent with the standards of prudence prescribed by upmifa. The company 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 company must hold in perpetuity. Under this policy, as approved by the company's board, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of various market indices based on type of investments while assuming a moderate level of investment risk. The company expects its endowment funds, over time, to provide an average rate of return of approximately 5% annually. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives the company relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The company targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints.”

“The Community, Foundation, Homes, and Garden Apartments are tax-exempt organizations as described in Section 501(c)(3) of the Internal Revenue Code and are exempt from Federal income taxes on related income pursuant to Section 501(a) of the Code. Care at Home is a single member limited liability company of the Foundation and, therefore, is disregarded for federal income tax purposes, and as a result its operations will be included in the Foundation's Federal tax return. GHA, LLC is a single member limited liability company of the Homes, however GHA, LLC has made an election to be taxed as a corporation. No deferred tax benefit has been recorded at December 31, 2019 and 2018. The entities are no longer subject to Federal income tax examinations by tax authorities before 2016.”