Lutheran High School in Mayer Foundation

“The Foundation's Endowment Funds are designated funds which Lutheran High School in Mayer has entrusted to the Foundation to invest. Temporarily restricted net assets represent contributions and investment income whose use has been restricted by donors for a specific purpose or time period. These are comprised of the School's Christan Leadership, Alumni Church Worker, Frieda Schwecke, and Timothy Scholarship funds, a temporarily restricted operating reserve and endowment fund investment income accumulated in excess of the original principal amount. Permanently restricted net assets represent restricted contributions requiring the principal of the gift to be maintained in perpetuity and includes amounts that have been designated by the School's Board of Directors. Endowment funds include the original gifts and the temporarily restricted earnings to be used for the following programs: Brandenburg Student Aid, Extra Curricular, Klemp Muelich Academic Endowment, Meulich Landscape Endowment, Kramer Endowment, Melchert Endowment, General Endowment, Rose Scholarship Fund, Schwarz Student Aid, Schroeder Student Aid, Technology Endowment, Tutor/Resource and Zimmer Fine Arts Endowment.”

“The Foundation is a not-for-profit organization that is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and classified as other than a private foundation within the meaning of Section 509(a) of the Internal Revenue Code. The Foundation is subject to a tax on income from any unrelated business. The Foundation has implemented the accounting guidance for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. The term tax position emcompasses the Foundation's tax status as a tax-exempt entity, as well as the decision to classify all transaction activity as tax-exempt. As of July 31, 2016, the Foundation had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements. Management is not aware of any tax audits in process for prior years and believes the Foundation is no longer subject to examination for tax years prior to 2013 from the Internal Revenue Service and the Minnesota Department of Revenue.”

“The amount classified as "Administrative Expenses" represents the amount of Net Endowment Assets released from temporary restriction on the reviewed financial statements.”