Alpha XI Delta National Housing Corporation

PART X, LINE 2:

“The note to the consolidated financial statements reads as follows: the fraternity and the nhc are each organized as not-for-profit corporations and have obtained exemption from income taxes under section 501(c)(7) of the internal revenue code and similar state laws. 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. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside. Income that is properly set aside must be used for the qualifying purposes outlined in the set aside resolution. Neither the fraternity nor the nhc paid unrelated business income tax in the years ended may 31, 2019 and 2018. The activities of sjsu, cornell, wisconsin, unh, oshkosh, and wv are exempt as programs under the nhc's not-for profit exemption and are included in the income tax filings of the nhc. The exemption is on all revenue except unrelated business income. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the organization and to 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 both the organization, and has concluded that as of may 31, 2019 and 2018, there are no uncertain tax 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. The fraternity and nhc have filed their federal and state income tax returns for periods through may 31, 2018. 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).”