Bethany Christian Services Inc.

“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 the IRS or other applicable taxing authorities. Management has analyzed the tax positions taken by the Organization and has concluded that as of December 31, 2013 and 2012, respectively, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the 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. Management believes it is no longer subject to income tax examinations for years prior to December 31, 2010.”

“The Organization intends to use the endowment fund, in accordance with its approved spending policy, to support families who are adopting children with special placement needs and to assist affiliated offices in developing special needs adoption programs. The Organization has a policy of appropriating for distribution each year 5 percent of its endowment funds average fair value over the prior eight quarters in which the distribution is planned. In establishing this policy, the Organization considered the long-term expected return on its endowment. Accordingly, over the long term, the Organization expects the current spending policy to allow its endowment to grow at an average rate of 3 percent annually. This is consistent with the Organizations objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified, as well as to provide additional real growth through new gifts and investment returns.”

“This Form 990 reports only the activity of the Parent Organization, however the annual Audited Financial Statements include the results of all of Bethany Chrisitan Services, including those entities covered under our Group Exemption Ruling. As such, those entities are reported on our separately filed Form 990 - Bethany Christian Services Group Return.”

“This Form 990 reports only the activity of the Parent Organization, however the annual Audited Financial Statements include the results of all of Bethany Chrisitan Services, including those entities covered under our Group Exemption Ruling. As such, those entities are reported on our separately filed Form 990 - Bethany Christian Services Group Return.”