Community Foundation of Northeast Iowa

“The foundation invests funds for other organizations which maintain complete discretion over the use of all of these agency quasi-endowment funds and agency expendable funds held at the foundation by naming their organization as the specified beneficiary of those funds. All financial activity and charitable distributions related to these funds are recorded as adjustments to the liability and are not recorded in revenue and expenses. The liability does not include endowment funds of these organizations since distribution of those funds is limited by the foundation's spending policy and those distributions may not invade the original contribution amount.”

“The foundation has adopted investment and spending policies for endowment assets. Those policies attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income, which exceeds the annual distribution with acceptable levels of risk. Endowment assets are invested in a well diversified asset mix. Investment risk is measured in terms of the total endowment fund with an allocation among asset classes and strategies managed to prevent exposing the funds to unacceptable levels of risk. The foundation's written investment policy is required to be followed by its investment advisors and custodians. The foundation has a policy of appropriating for distribution each year 4% of its endowment fund's average fair value based upon an eight-quarter back-rolling average. Endowment funds must be invested for at least one year before distributions are available to be made. All distributions are subject to compliance with the uniform prudent management of institutional funds act (upmifa). The foundation participates in the endow iowa program, which is administered by the iowa economic development authority through qualified community foundations. The program's purpose is to create sustainable philanthropic opportunities for charitable impact in iowa communities. The legislation governing the program mandates that the spending policy may not exceed 5% of the fund. The foundation interprets this as a restriction to endowment funds and has classified these endowment funds as contributions with donor restrictions.”

“Management annually makes an appropriate evaluation of any uncertain income tax positions based upon current statutes in completing these consoldiated financial statements and the notes to the consolidated financial statements. As of december 31, 2024, management believes that there were no uncertain income tax positions for which a material change in the unrecognized effect would be reasonably possible within the next 12 months.”

“Unrealized gain on investments 4,762,973 unrealized gain on beneficial interest 314,352”