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 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. The Foundations tax returns and filings are subject to examination by taxing authorities. The Foundation follows FASB ASC Topic 740-10, Accounting for Uncertainty in Income Taxes, which prescribes a comprehensive model for how an organization should measure, recognize, present and disclose in its financial statements uncertain tax positions it has taken or expects to take on a tax return. Management annually reviews its tax positions and has determined that there no material uncertain tax positions that require recognition in the consolidated financial statements at December 31, 2018. 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, 2015.”

“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 consolidated financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. In the prior year, the Foundation's financial statements were audited and reported on the income tax basis of accounting. As such, the following adjustments were made to beginning balances to reflect the change in reporting method from the income tax basis of accounting to U.S. GAAP. Unrealized gains on investments $37,313,719 Unrealized losses on equity and partnership investments (18,249,681) Other Receivable and Current Assets 543,657 Accounts Payable (346,802) Change in beginning net assets $19,260,893”