Madison Ballet Inc.

“Beneficial interest in pleasant t. Rowland great performance fund held by madison community foundation: in november 2001, the pleasant t. Rowland foundation announced a philanthropic milestone challenging the ballet and eight other madison non-profit cultural groups to match a total of $23 million in challenge grants to support performance-related initiatives. The challenge to the ballet was to raise $1 million dollars of pledges before december 31, 2006, and to collect the pledges before december 31, 2011. Contributions are deposited in the pleasant i. Rowland great performance fund for madison ballet, which is held and managed by the madison community foundation ("mcf"), as a donor advised endowment fund. Any distributions from the great performance fund will help fund future performances, educational programs, and special events. Mcf maintains legal ownership of the fund. The ballet received a distribution of $46,735 during the year ended august 31, 2025. Beneficial interest in the madison ballet fund held by madison community foundation : in december 2001, a madison ballet fund was created for the ballet, which is held and managed by the madison community foundation, as a donor advised endowment fund. The purpose of this fund was to accept matching donations in connection with the pleasant i. Rowland great performance fund described in paragraph above. The ballet receives an annual distribution of 5% of the average value of the assets in the fund. This distribution policy is subject to change by the mcf board of governors. Additional distributions may be made if mcf concludes that such distributions will benefit madison ballet, advance their charitable and exempt purposes, and benefit the community. The principal balance of the fund is to remain intact. Mcf maintains legal ownership of the fund. The ballet received a distribution of $41,883 during the year ended august 31, 2025.”

“The ballet is exempt from federal income taxes under section 501(c)(3) of the internal revenue code as a charitable organization whereby only unrelated business income, as defined by section 509(a)(1) of the code, is subject to federal income tax. The organization does not have any unrelated business income tax. Accordingly, no provision for income taxes has been recorded. The ballet recorded no assets or liabilities related to uncertain tax positions the ballet has implemented accounting for uncertainty in income taxes in accordance with u.s. Gaap. This standard describes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognizing, interest, penalties and disclosure required. Management of the ballet evaluates the uncertain tax positions taken, if any, and consults with outside counsel as deemed necessary. The ballet recognizes interest and penalties, if any, related to unrecognized tax liabilities in income tax expense.”