United Way Foundation of Indian River County Inc.

“Management of the endowment: the endowment will be invested and reinvested in accordance with the investment policies of the foundation. The endowment shall be comprised of the following two funds: (i) a fund used solely to support the uwirc's annual campaign ("annual campaign endowment fund") and (ii) a fund for contributions to support uwirc more generally ("general endowment fund") annual campaign endowment fund: the annual campaign endowment fund shall be used to perpetuate a donor's gift to the united way of indian river's annual campaign. On an annual basis, a payout from the annual campaign endowment fund will be made to the united way of indian river to be used in connection with the annual campaign. The payout will be the greater of: a. The level of the donor's intent to perpetuate their annual gift. B.4% of a five year rolling average of the fiscal year end market values of the annual campaign endowment fund as of june 30 of the prior fiscal year. For purposes of calculating the five year rolling average, the lesser of the life of the annual campaign endowment fund or five years will be used and contributions received during the defined period are to be treated as if they were received at the beginning of the defined period in order to achieve the 4% annual distribution on the contributions. The amount shall be credited in the name of the original donor. Any future gifts to the annual campaign endowment fund, whether or not directed toward the annual campaign, will be owned by the foundation and will be managed and distributed according to such donor restrictions. The general endowment fund: each year, it is the intent of the foundation to make annual distributions from the general endowment fund to the united way of indian river of 5% of a five year rolling average of the fiscal year end market values of the general endowment fund as of june 30 of the prior fiscal year, net of all the foundation expenses, both direct and indirect. For purposes of calculating the five year rolling average, contributions received during the five year period are to be treated as if they were received at the beginning of the five year period in order to achieve the 5% annual distribution of the contributions and historical values of the board- designated fund held by the united way of indian river shall be used. If extraordinary circumstances warrant such action, the foundation may distribute an amount less than or more than 5%, subject to approval by two-thirds vote of the boards of directors of both the united way of indian river and the foundation. The allocation shall be used for the purposes determined by the board of directors of the united way of indian river.”

“Uwirc and the foundation are both not-for-profit organizations as described in sec. 501(c)(3) of the internal revenue code. As such the entities are exempt from federal and state income taxes except on net income derived from unrelated business activities. The entities are not classified as private foundations. United way has analyzed the tax postions taken and has concluded that as of june 30,2023, there are no material uncertain positions taken, or expected to be taken, that would require recognition of a liability or disclosure in the financial statements. Uwirc's and the foundation's tax returns for the past three years are subject to examination by taxing authorities and may change upon examination.”