Our Lady of Peace

“The organization has adopted a policy for distributions of earnings on the investments of the endowment fund. The principal of the endowment fund must not be spent and the earnings may only be spent with approval from the board. The board will not designate a scheduled amount to be spent from the earnings each year; instead, it will spend any earnings from either fund only when an opportunity arises to benefit the organization. Regarding olph's endowment supporting hospice services, the board intends that the earnings be used each year to support operations. Regarding fhc's endowment to support various health care services, the board intends that the earnings would be appropriated primarily for capital purchases and to support new programs. At no time will distributions from the endowment fund reduce their value below donor contributions.”

“Fhc, fhhs, and olph are organized as a minnesota nonprofit corporations and have been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3), they qualify for the charitable contribution deduction under section 170(b)(1)(a)(vi), and have been determined to be a public charities under section 509(a)(2) for fhc and fhhs and section 509(a)(1) for olph. The organizations are annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the organizations are subject to income tax on net income that is derived from business activities that are unrelated to their exempt purpose. The organizations have determined they are not subject to unrelated business income tax and have not filed an exempt organization business income tax return (form 990-t) with the irs. The organization believes it has appropriate support for any tax positions taken affecting their annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The organization would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”