Ozark Trails Council Trust Fund306

“Most of the endowment fund income is unrestricted and used for the council's general operating purpose. Restricted funds are used per the restrictions.”

“The council is a not-for-profit organization that is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and comparable state law as a charitable organization whereby only unrelated business income, as defined by section 509(a)(1) of the code, is subject to federal income tax. The council currently has no unrelated business income. Accordingly, no provision for income taxes has been recorded. The council assesses whether it is more likely than not that a tax position will be sustained upon examination of the technical merits or the position, assuming the taxing authority has full knowledge of all information. If the tax position does not meet the more likely than not recognition threshold, the benefit of the tax position is not recognized in the financial statements. The council does not believe there are any material uncertain tax positions and, accordingly, it will not recognize any liability for unrecognized tax benefits. For the year ended december 31, 2017, there were no interest or penalties recorded in its financial statements. The council's forms 990, return of organization exempt from income taxes for the years ending december 31, 2016, 2015 and 2014, are subject to examination by the irs, generally three years after they were filed.”

“Endowment fund footnote: the council's endowment fund includes donor- restricted endowment funds. As required by accounting principles generally accepted in the united states of america, net assets associated with the endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Unrestricted net assets, identified by the council's board of directors to be used for future investment and growth, are included in unrestricted net assets - board designated. Interpretation of relevant law the council has interpreted the state prudent management of institutional funds act ("spmifa") as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result, the council classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the council. The council considers the following factors in making a determination to appropriate or accumulate donor- restricted endowment funds: 1) the duration and preservation of the fund 2) the purposes of the council and the donor-restricted endowment fund 3) general economic conditions 4) the possible effect of inflation and deflation 5) the expected total return from income and the appreciation of investments 6) other resources of the council 7) the investment policies of the council return objectives and risk parameters the council has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor- restricted funds that the council must hold in perpetuity or for a donor- specified period as well as board-designated funds. Strategies employed for achieving objectives to satisfy its long-term rate-of-return objectives, the council relies on a total return strategy in which investment returns are achieved through capital appreciation (realized and unrealized) and current yield (interest and dividends). The council targets a diverse asset allocation that places greater emphasis on equity-based investments, (70%) to achieve its long- term return objectives within prudent risk constraints.”