Grand Forks Foundation for Education

“Grand forks foundation for education, inc.'s endowment consists of 67 individual funds established for a variety of purposes. Its endowment includes both donor-restricted funds and funds designated by the board of directors to function as endowments. As required by generally accepted accounting principles, net assets associated with the endowment funds, including funds designated by the board of directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The board of directors of grand forks foundation for education, inc. Has interpreted the north dakota 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 of this interpretation, grand forks foundation for education, inc. Classifies as net assets with donor restrictions (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 classified as net assets with donor restrictions until those amounts are appropriated for expenditure by the foundation in a manner consistent with the standard of prudence prescribed by spmifa. In accordance with spmifa, the foundation considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: 1. The duration and preservation of the endowment fund. 2. The purposes of the donor-restricted endowment fund. 3. General economic conditions. 4. The possible effect of inflation or deflation. 5. The expected total return from income and the appreciation of investments. 6. Other resources of the foundation. 7. The investment policies of the foundation. The board of directors determined that the foundation shall not distribute more than 4% of its endowment funds based upon a 3 year (12 quarter average) of the fund corpus and its accumulated funds available. If a fund has been in existence for fewer than three years, the computation shall be calculated based upon the time that the fund has been in existence. In establishing this policy, the foundation considered the long-term expected return on its investment assets, the nature and duration of the individual endowment funds, many of which must be maintained in perpetuity because of donor-restrictions, and the possible effects of inflation. The foundation's objective is to maintain the purchasing power of the endowment assets as well as to provide additional real growth through new gifts and investment returns. Currently, the board of directors has authorized the spending of all interest and dividend earnings from donor restricted endowment funds where no restrictions have been placed on the earnings. For donor restricted funds, with restrictions on earnings, the foundation complies with the requirements established by the donor. Board designated endowment funds are classified as net assets without donor restrictions. The board of directors has authorized the spending of all interest and dividend earnings for the designated purpose of each fund. These earnings are classified as unrestricted earnings. Funds with deficiencies from time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level the donor or spmifa requires the foundation to retain as a fund of perpetual duration. These deficiencies can result from unfavorable market fluctuations that occurred. Return objectives and risk parameters grand forks foundation for education, inc. Has adopted investment and spending policies for endowment assets that attempt to”

“The foundation and subsidiary are organized as a north dakota non-profit corporations and are exempt from federal income taxes under section 501(c)(3) of the internal revenue code. The foundation and subsidiary are each annually required to file a return of organization exempt from income tax with the irs. The foundation and subsidiary's policy is to evaluate the likelihood that its uncertain tax positions will prevail upon examination based on the extent to which those positions have substantial support within the internal revenue code and regulations, revenue rulings, court decisions and other evidence. It is the opinion of management that the organization has no significant uncertain tax positions that would be subject to change upon examination. The federal income tax returns of the organization are subject to examination by the irs, generally for three years after they are filed. All filings are current.”