Escondido Creek Conservancy

“The conservancy monitors activities on the land and enforces restrictions contained in both donated and purchased conservation easements.”

“The conservancy receives gifts of conservation easements and grants toward the purchase of conservation easements. The easements contain numerous restrictions over the use and development of land that is not owned by the conservancy. The value of donated conservation easements is based on the appraised value as determined by an independent appraiser. Easements are recorded as revenue when they are received, and an expense is recorded for an equal amount whether the easement is held by the conservancy or transferred to an eligible entity. Grants received for the purchase of conservation easements are recorded as revenue and as a conservation easement expense when the easement is purchased. The conservancy monitors activities on the land and enforces restrictions contained in both donated and purchased conservation easements. The value of the easements is not reflected in the statements of financial position because the easements have no economic value to the conservancy.”

“The conservancy's endowment funds consist of individual funds that were established by the conservancy for habitat management. Net assets associated with endowment funds are classified and reported based on the existence of donor-imposed restrictions. The endowment funds are held and managed by the san diego foundation and the rancho santa fe foundation.”

“The conservancy is exempt from federal income tax under section 501(c)(3) of the internal revenue code. In addition, the conservancy qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). Since the conservancy is exempt from federal and state income tax liability, no provision is made for current or deferred income taxes. The conservancy uses the same accounting methods for tax and financial reporting. The conservancy has evaluated its tax positions and the certainty as to whether those positions will be sustained in the event of an audit by taxing authorities at the federal and state levels. The primary tax positions evaluated are related to the conservancy's continued qualification as a tax-exempt organization and whether there is unrelated business income activities conducted that would be taxable. Management has considered its tax positions and believes that all of the positions taken by the conservancy in its federal and state exempt organization tax returns are more likely than not to be sustained upon examination; therefore, no disclosures of uncertain income tax positions are required. The conservancy's returns are subject to examination by federal and state taxing authorities, generally for four years after they are filed.”

“Prior period adjustment - (9,503)”