Dearborn Community Foundation Inc.

“The Organization's amount on Form 990 Part X Line 21 consists of two components. The first is the liability for funds held as agency endowments which represent funds placed on deposit with the Organization by other organizations based on their individual board resolutions. The second component is custodial funds that represent non-permanent grant programs. The Organization accounts for these transfers as a liability in accordance with applicable accounting standards.”

“The Organization's endowment funds are used to support charitable organizations that promote improvement in the quality of life in Dearborn County.”

“FIN 48 (ASC 740) Footnote - The Organization is organized as a not-for-profit corporation under Section 501(c)(3) of the United States Internal Revenue Code. Accounting principals 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 than 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 December 31, 2020 and 2019, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying 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 Organization is generally exempt from income taxes. However, the Organization is required to file Federal Form 990 - Return of Organization Exempt from Income Tax which is an information return only.”

“Other - Direct Fundraising expenses (Form 990 Part VIII Line 8 ) subtracted from revenues on Form 990 that are recorded as an expense and not netted against revenues in the audited financial statements $3,233 and endowment administrative fees $341,414. In addition there is an adjustment of $3,233 for the net profit of a fundraiser transferred to endowment.”

“Other amounts included in Form 990 Part VIII Line 12 but not on Line 1 of Schedule D Part XI - FASB Accounting Standards Codification (ASC) Not for Profits 958-605-55 Agency Transactions adjustment that are reflected as adjustments to the liability and are not reflected as revenue in the Statement of Activities in the audited financial statements in accordance with accounting standards.”

“Other amounts included on Line 1 but not on Form 990, Part IX - Direct Fundraising expenses (Form 990 Part VIII Line 8 ) subtracted from revenues on Form 990 that are recorded as an expense and not netted against revenues in the audited financial statements $3,233 and endowment administrative fees $341,414. In addition there is an adjustment of $3,233 for the net profit of a fundraiser transferred to endowment.”

“Other amounts included in Form 990 Part VIII Line 25 but not on Line 1 of Schedule D Part XII - FASB Accounting Standards Codification (ASC) Not for Profits 958-605-55 Agency Transactions adjustment that are reflected as adjustments to the liability and are not reflected as expenses in the Statement of Activities in the audited financial statements in accordance with accounting standards.”