Pheasants Forever Inc.

“Pheasants Forever, Inc. believe that the long-term control of wildlife habitat is often in the best interest of both the public and wildlife. Conservation easements provide one mechanism by which the organization can facilitate long-term control without the upfront expense and long term operational costs of land ownership. On-going monitoring and enforcement are important components of successful conservation easements. The following steps will be conducted for each Pheasant Forever owned conservation easement. Baseline survey - Pheasants Forever staff will evaluate the property with the owners to document the property's resource values (current and potential), boundaries, and potential threats and hazards. The Baseline Survey will be conducted using The Forever Land Trust Baseline Documentation Checklist. The Baseline Survey should be conducted within one year of acquiring the interest and the landowner should be involved whenever possible. Monitoring - Pheasants Forever staff and/or volunteers will conduct annual on-site or aerial monitoring of all conservation easements to evaluate current resource conditions and to document existing or potential threats to the easement. To the extent practicable, the persons involved in monitoring should have pertinent information from the Baseline Survey for comparison with current conditions. A monitoring report will be filed and maintained along with the Baseline Survey in Pheasant Forever's files at the National Office. The Public Finance Director will immediately be notified of any perceived threats. Enforcement - Any necessary enforcement action is to be undertaken by Pheasants Forever's Public Finance Director in conjunction with local staff. Easement Modifications - Easements may be modified only if the protected resources will benefit from a modification. Any modification request should be sent to the Public Finance Director for evaluation. The Chief Executive Officer must approve any modification.”

“A conservation easement is a voluntary, legal enforceable agreement between a landowner and another entity in which the landowner gives up certain rights to use or modify their land subject to the terms of the easement. The entity agrees to monitor and enforce conditions within the agreement throughout the life of the easement (usually in perpetuity). In certain cases, the Organization acquires, or accepts as a donation, easements that provide conservation benefits consistent with the Organization's mission. Conservation easements that are purchased are recorded as program expense in the year acquired. Contributed easements are recorded as contribution income and program expense based on appraisal or other estimated value. At June 30, 2014 the Organization held three conservation easements covering 432 acres. These same three easements were held as of June 30 2013.”

“Wildlife Conservation Experience Fund - The Wildlife Conservation Experience Fund is meant to perpetually fund an annual Conservation Career Day for high school aged students in the host community of Pheasants Fest or other national events. Students are provided the opportunity to explore a variety of careers in conservation and the outdoor recreation industry. Resource professionals and representatives from the outdoor recreation industry provide sessions that emphasize the opportunities and career paths students can pursue. Students are provided the opportunity to visit the Youth Village and the show floor to experience "hands on" activities. Forever Shooting Sports Fund - The Forever Shooting Sports Fund will perpetually fund the Chapter incentive portion of PF & QF's Forever Shooting Sports Program. The chapter incentive program consists of an ammunition match grant that partially reimburses chapters for ammunition costs associated with local shooting events for kids and their families. Chapters are required to submit a post event report form, ammo grant request form and a copy of the ammo receipt. Dependent upon organizational chapter priorities, this program may provide other incentives for shooting sports initiatives in the future.”

“The Organization has been granted exempt status relative to federal and state corporate income taxes under Section 501(c)(3) of the Internal Revenue Code and applicable state statutes. It has been classified as an organization that is not a private foundation. Therefore, charitable contributions are tax deductible. The Organization follows the guidance outlined in the Income Tax Topic of FASB Accounting Standards Codification. The Organization is subject to unrelated business income tax on advertising revenues and merchandise sales. As of June 30, 2014 and 2013, there was no liability recorded for unrelated business income tax as the income from those activities did not generate net income. The Organization has generated net operating losses which are offset 100% by valuation allowances. The organizations tax returns are subject to review and examination by federal authorities. The tax returns for the years 2011 through 2013 are currently under examination. The two single member limited liability companies owned by Organization are disregarded entities for income tax purposes and follow the same tax treatment as the Organization.”

“Cost of membership premiums -$407,808; Change in temporarily restricted net assets -$3,256,009; Change in permanently restricted assets -$12,345.”

“Cost of habitat seed sold -$1,386,070.”

“Cost of habitat seed sold $1,386,070.”

“Cost of membership premium $407,808.”