Communication Service for the Deaf Inc.

“Endowment fund is to be used to financially support deaf organizations fund. The fund will be addressing the need for fundraising, grant funding, capacity building, and resources for nonprofit organizations that serve the deaf community. Endowment assets will be managed on a total return basis while taking into account the level of liquidity required. The finance committee of the board of directors recognizes the importance of the long-term preservation of capital. The finance committee also adheres to the principle that varying degrees of investment risk are generally rewarded with commensurate returns over the long term. Therefore, investments with different types and degrees of risk are appropriate for the endowment, provided that such risks are regularly identified and managed. These investment objectives will support the fund's goals of grant giving and internal administrative and operational costs. The overall investment performance of the portfolio is determined by factors such as spending goals, investment expenses, risk tolerance, and time horizon. Based on expectations, goals, investment expenses, and risk tolerance, csd has determined that the most appropriate objective for the fund is to increase the purchasing power of the current assets within reasonable risk levels. The expected return needed to meet the stated distribution requirements and financial goals is approximately 6 percent. Accordingly, this portfolio should achieve broad diversification, risk management, and low investment expenses, while retaining the potential to outpace inflation.”

“Csd is exempt from federal income taxes under section 501(c)(3) of the internal revenue code. Csd is annually required to file a return of organization exempt from income tax (form 990) with the internal revenue service (irs). In addition, csd is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. Csd files an exempt organization business income tax return (form 990-t) with the irs to report its unrelated business taxable income. Csd believes that it has appropriate support 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 consolidated financial statements. Csd 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.”