Heart of Compassion Distribution

“Prior to filing, the form 990 is first reviewed by management for accuracy, completeness, and disclosures and then reviewed by the board of directors.”

“The organization's governing documents and financial statements are available for review on-site upon request.”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- ln 1f - other contrib 35,211,518 26,108,780 (9,102,738) ln 1g - noncash contrib 34,830,268 25,736,802 (9,093,466) ln 1h, col a - total 35,211,518 26,108,780 (9,102,738) ln 3, col a & d - invest inc 226 167 (59) ln 12 - total revenue column a 35,211,744 26,108,947 (9,102,797) column d 226 167 (59)”

“The organization's board of directors has responsibility for the oversight of the review of its financial statements and selection of the independent auditor. This responsibility is unchanged from the prior year.”

“The organization is filing an amended form 990 return for the year ended 6/30/2017 because its original filing was submitted before its financial statements review had been completed. Primarily, the return is being amended as the fair market value of the in-kind donations was incorrect on the original return. Affected form 990 line items are detailed below: form 990, box g - gross receipts: as originally filed 35,211,744 as amended 26,108,947 amount of decrease (9,102,797)”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- ln 8 - contributions 35,211,518 26,108,780 (9,102,738) ln 10 - investment inc 226 167 (59) ln 12 - total revenue 35,211,744 26,108,947 (9,102,797) ln 13 - grants paid 0 26,093,935 26,093,935 ln 17 - other expenses 35,124,708 278,014 (34,846,694) ln 18 - total expenses 35,124,708 26,371,948 (8,752,760) ln 19 - rev less exps 87,036 -263,001 (350,037) ln 20 - total assets 919,407 956,405 36,998 ln 21 - total liabilities 2,177 2,176 (1) ln 22 - net assets 917,230 954,229 36,999”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- line 4a - distribution of food, clothing, and other personal goods expenses: 35,075,341 26,335,398 (8,739,943) grants: 0 26,093,935 26,093,935 line 4e - total program service expenses 35,075,341 26,335,398 (8,739,943)”

“Line 21 - did the organization report more than $5,000 of grants or other assistance? As orignally filed no as amended yes”

“Total program m&g fundrsg column a column b column c column d -------- -------- -------- -------- line 1 - grants and other assistance to domestic organizations as originally filed 0 0 as amended 26,093,935 26,093,935 amount of increase 26,093,935 26,093,935 line 11g - fees for service, other as originally filed 0 0 0 0 as amended 935 841 94 0 amount of increase 935 841 94 0 line 13 - office expenses as originally filed 15,077 7,142 7,395 540 as amended 16,509 14,858 1,651 0 amount of increase 1,432 7,716 0 0 amount of decrease 0 0 (5,744) (540) line 16 - occupancy as originally filed 156,216 124,973 23,432 7,811 as amended 174,978 148,731 26,247 0 amount of increase 18,762 23,758 2,815 0 amount of decrease 0 0 0 (7,811) line 20 - interest as originally filed 0 0 0 0 as amended 1,195 1,076 119 0 amount of increase 1,195 1,076 119 0 line 23 - insurance as originally filed 11,961 9,569 1,794 598 as amended 12,643 11,379 1,264 0 amount of increase 682 1,810 0 0 amount of decrease 0 0 (530) (598) line 24 - other expenses as originally filed: program expenses 34,830,268 34,830,268 0 0 fuel costs 60,852 60,852 0 0 utilities 19,076 15,260 2,862 954 auto repairs 7,162 7,162 0 0 all other expenses 24,096 20,115 3,406 575 total 34,941,454 34,933,657 6,268 1,529 as amended: mileage and travel 48,904 44,014 4,890 0 supplies 9,263 8,337 926 0 repairs & maint 7,074 6,366 708 0 miscellaneous 4,749 4,274 475 0 all other expenses 1,763 1,587 176 0 total 71,753 64,578 7,175 0 amt of total incr 0 0 907 0 amt of total decr (34,869,700) (34,869,078) 0 (1,529) line 25 - total functional expenses as originally filed 35,124,708 35,075,341 38,889 10,478 as amended 26,371,948 26,335,398 36,550 0 amount of decrease (8,752,760) (8,739,943) (2,339) (10,478)”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- ln 1, col b - cash 97,470 99,833 2,363 ln 8, col b - inventories 809,378 844,013 34,635 ln 16, col b - total assets 919,407 956,405 36,998 lns 17 & 26, col b - accounts payable/total liabilities 2,177 2,176 (1) lns 27 & 33, col b - unrestricted net assets/total net assets 917,230 954,229 36,999 ln 34, col b - total liabilities and net assets 919,407 956,405 36,998”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- ln 1 - total revenue 35,211,744 26,108,947 (9,102,797) ln 2 - total expenses 35,124,708 26,371,948 (8,752,760) ln 3 - revenue less exps 87,036 -263,001 (350,037) ln 8 - prior period adj -1,583,656 -1,196,620 387,036 ln 10 - ending net assets 917,230 954,229 36,999”

“Line 2a - were the organization's financial statements compiled or reviewed? As originally filed no as amended yes, on a separate basis line 2c - does the organization have a committee that assumes responsibility for the review? As originally filed no as amended yes”

“As originally increase/ filed as amended (decrease) ------------- ---------- ---------- section a, line 1 - gifts, grants, contributions received section a, line 4 - total section b, line 7 - amounts from line 4 column (e)2016 35,211,518 26,108,780 (9,102,738) column (f)total 179,928,409 170,825,671 (9,102,738) section a, line 6 - public support column (f) 179,928,409 170,825,671 (9,102,738) section b, line 8 - gross income from interest and dividends column (e)2016 226 167 (59) column (f)total 454 395 (59) section b, line 10 - other income column (b)2013 148 0 (148) column (c)2014 40 0 (40) column (d)2015 40 0 (40) column (f)total 603 375 (228) section b, line 11 - total support column (f)total 179,929,466 170,826,441 (9,103,025)”

“As originally filed: 8 contributors with contributions greater than $704,230 as amended: 11 contributors with contributions greater than $522,176”

“Schedule i was not included in the original filing.”

“Line 5, column (c) - clothing and household goods as originally filed 397,727 as amended 468,392 amount of increase 70,665”