The Marvin M Schwan Charitable Foundation

“the foundation has a trustee succession committee. this committee cannot influence the trustees or make decisions for the trustees, but if the committee determines that the trustee(s) acted outside the best interests of the foundation, they can replace that trustee.”

“there are no committees with the authority to act on behalf of the governing body.”

“the disclosure statement on conflict of interest is submitted annually by all individuals at the beginning of the fiscal year of the foundation and returned to the board of trustees. after review, copies are submitted to the legal advisors of the foundation.”

“the foundation makes its governing documents and conflict of interest policy available to the public upon request. the foundation considers its financial statements as confidential and proprietary information and, therefore, does not make them available to the public.”

“The organization is reporting investment income, rental income and gain/(loss) amounts in column (D) because such amounts represent revenue which is excludable under the rules provided in IRC Sections 512, 513 and 514. Such amounts are used by the Foundation to operate for the benefit of, to perform the functions of, or to carry out the purposes of one or more of its specific religious supported organizations. The expenses reflected on Part IX relate to that revenue and those uses. For purposes of Form 990 reporting, both short-term and long-term gains (as applicable) are reported together.”

“The Marvin M. Schwan Charitable Foundation obtained separate, independent audited financial statements for the twelve-month period ending 12/31/2016. These financial statements were prepared on the tax basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles, which does not satisfy the requirements for a positive response under the instructions to Form 990, Part IV, Line 12.”

“The share of total income and end of year assets for certain entities are not included because they are not included in Part X of Form 990. For entities which require Form 5471 or Form 8858 reporting see attached Forms for entities' activity including end of year assets and total income.”

“The Foundation is exempt from income taxes under Internal Revenue Code Section 501(a) as an organization described under Section 501(c)(3) and is not a private foundation, because it is an organization described under Section 509(a)(3) of the Internal Revenue Code. Specifically, the Foundation is a 509(a)(3) Type III, non-functionally integrated supporting organization and is therefore subject to certain ongoing statutory and regulatory requirements with respect to maintaining its public charity status. The Foundation files tax and informational returns with the United States government and income tax returns with state governments, if it has taxable income in those states. Under the income tax basis of accounting, the Foundation records tax expense in the year taxes are paid. The Foundations tax returns and filings are subject to examination by taxing authorities. The Foundation is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for jurisdictions in which the Foundation has filed tax returns for years prior to the fiscal year ended December 31, 2013.”