Madison Project DBA the Broad Stage

“Describe the intended use of the organization's endowment funds: the endowment fund's intended use is to provide for the operational expenses of the theater.”

“Fin 48: the organization is a nonprofit, public-benefit corporation organized under the laws of california and, as such, is exempt from federal and state income taxes under internal revenue code section 501(c)(3) and the corresponding state provision. However, the organization is subject to income taxes on any net income that is derived from trade or business regularly carried on and not in the furtherance of the purposes for which it was granted exemption. Management believes that the organization has not received income from any unrelated trade or business and, as such, no income tax provision has been recorded on the organization's financial statements. The organization is subject to potential income tax audits on open tax years by any taxing jurisdiction in which it operates. The statute of limitations for federal and california state purposes is generally three and four years, respectively.”

“The employee retention credit (erc) was enacted in march 2020 by the coronavirus aid, relief, and economic security act (cares act) and amended in december 2020, by the taxpayer certainty and disaster tax relief act (tcdtr act). The erc is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer paid to employees in calendar year 2020 (between march 2020 and before january 2021) and 70% of the qualified wages in calendar year 2021. During the year ended june 30, 2023, the organization recognized $111,393 of refundable ercs claimed under provisions of the cares act and tcdtr act on the accompanying statement of activities. As of june 30, 2023, the organization has recognized a receivable of $111,393 on the accompanying statement of financial position. The amount was collected in full subsequent to year end.”

“In june 2020, the organization received an economic injury disaster loan ("eidl") under the small business administration's (sba) assistance program in light of the impact of the covid-19 pandemic. Pursuant to the eidl agreement, the organization received a forgivable advance of $10,000 and loan of $150,000, to be used for working capital purposes only. Pursuant to the eidl agreement, the organization executed; (i) a note for the benefit of the sba, which contains customary events of default; and (ii) a security agreement, granting the sba a security interest in all tangible and intangible personal property of the organization, which also contains customary events of default. The eidl bears an interest rate of 2.75% per annum which accrues from the date of the advance. Payments will be applied first to accrued interest and then outstanding principal. Installment payments of $641, including principal and interest, is payable, for 30-years from the date of the eidl agreement, with final payment due july 2050.”