Lambda Chi Alpha Fraternity Inc

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“The fraternity and lca investments are organized as not-for-profit corporations. The fraternity has obtained exemption from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. Lca investments has obtained exemption from income taxes under section 501(c)(2) of the united states internal revenue code and similar state law. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Certain nonmember income, that would otherwise be taxable, may be set aside. Income that is properly set aside must be used for the qualifying purposes outlined in the set-aside resolution. Deltaco is a for-profit corporation owned by lca investments that is treated as a taxable corporation for federal and state income tax purpose. Deltaco incurred no income tax expense during the year ended june 30, 2022. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the organization and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of june 30, 2022 and 2021 there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying consolidated financial statements. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. As such, the fraternity and lca investments are generally exempt from income taxes. However, the fraternity and lca investments are required to file federal form 990 return of organization exempt from income tax and a corresponding state return, which are informational returns only. The organization has filed its federal and state income tax returns for periods through june 30, 2021. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”