Hillcrest Family Services

“Custodial funds”

“The endowments are used for several different purposes some of which are restricted for education, Family Life Campus building project and future operating expenses of the Family Life Campus building project. The Community Foundation also holds funds contributed by individual donors for the benefit of Hillcrest Family Services, Inc. It should be noted, however, that the Community Foundation has variance power, which allows them to modify the stipulations of the donors under certain circumstances as they monitor the changing needs of the community. These funds will not be recorded as an asset on the financial statements of the Organization. The funds are held by the Community Foundation as permanently endowed for the support of Hillcrest Family Services, Inc.”

“The Organization is organized as an Iowa nonprofit corporation and has 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), qualify for the charitable contribution deduction under Section 170(b)(1)(A)(vi), and has been determined not to be a private foundations under Sections 509(a)(1). The Organization is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, the Organization is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. The Organization files an Exempt Organization Business Income Tax Return (Form 990-T) with the IRS to report its unrelated business taxable income. The Organization believes that it has appropriate purpose for any tax positions taken affecting its 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. The entities' Form 990, 990-T and other income tax filings required by state, local, or non-U.S. tax authorities are no longer subject to tax examination for the years before 2013.”

“Fundraising expenses included in revenue for Form 990 -103,906. Rental expenses included in revenue for Form 990 -15,273.”

“Fundraising expenses included in revenue for Form 990 103,906. Rental expenses included in revenue for Form 990 15,273.”