Icast Internationl Center for Appropriate & Sustanabl Technology

“In 2014, the organization invested $20,000 of unrestricted net assets with the community first foundation (community first). Community first agreed to match the organization's contribution by 50% as a temporary restricted endowment to support the mission of the organization. The total invested in the temporarily restricted endowment was $30,000. The organization is allowed to use the initial principal invested as well as the annual earnings on the invested amounts to subsidize operations. Per the spending provisions of the endowment fund agreement, the organization is allowed to withdraw up to 5% of the fair market value of the endowment fund for the prior 3 year average, calculated annually. The distributions are not cumulative; therefore, if the organization does not withdraw the annual 5%, they cannot take out 10% in the subsequent year. The balance in the temporary restricted endowment fund at december 31, 2018 and 2017 was $27,291 and $30,477, respectively. In establishing a policy, the organization considered the long-term expected investment return on its endowment and its appeal to investors as a stable investment. Accordingly, over the long term, the organization expects the current distribution policy to allow its endowment fund to serve the needs of the organization and serve as a stable, consistent, and predictable cash flow. To achieve the objective, the organization has adopted the investment policies of community first, which attempts to maximize total return consistent with an acceptable level of risk. Endowment assets are invested by community first in accordance with prudent investment policies and objectives of institutional funds. Community first invests in diversified portfolios of cash equivalents, fixed income investments, alternative investments, and equities as described in their online investment policy. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed by community first to not expose the fund to unacceptable levels of risk.”

“The organization has adopted the provisions of income taxes. In determining the recognition of uncertain tax positions, the organization applies a more-likely-than-not recognition threshold and determines the measurement of uncertain tax positions considering the amounts and probabilities of the outcomes that could be realized upon ultimate settlement with taxing authorities. The organization analyzed its tax positions taken on their federal tax returns for the open tax years 2015 through 2017. Based on their analysis, the organization determined that there were no uncertain tax positions and that the organization should prevail upon examination by the taxing authorities.”

“Unrealized loss on investments 7,823.”