Sedgwick County Zoological Foundation

“Based upon interpretation of applicable state laws governing donor-restricted endowment funds, certain net assets of the foundation have been classified as net assets with donor restrictions - endowment. Net assets with donor restrictions - endowment consist of various contributions whereby the donor has designated that the original contribution be invested in perpetuity. Based upon the original donor designation, earnings from the invested principal of $385,196 are unrestricted. 90% of the earnings on the remaining invested principal of $200,000 are temporarily restricted for the use of zoo animal exhibits that do not bear the name of an organization or an individual. The remaining 10% of earnings is accumulated as part of the permanent endowment fund.”

“The foundation is organized as a kansas nonprofit corporation and has been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3). The foundation is qualified to receive deductible charitable contributions under section 170(b)(1)(a)(vi) and (viii), and have been determined not to be private foundations under sections 509(a)(1) and (3). The foundation is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the foundation is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. The foundation has determined it is not subject to unrelated business income tax and has not filed an exempt organization business income tax return (form 990-t) with the irs. The foundation 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 financial statements. The foundation 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. The zoo adopted the accounting standard on accounting for uncertainty in income taxes, which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the zoo may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. At december 31, 2024 and 2023, there were no unrecognized tax benefits identified or recorded as liabilities.”