Scott Key Center Inc.

“The endowment fund was established for the long term benefit of the organization. Fund disbursements are used for both program and administrative expenses of the organization. The fund is held by the community foundation of frederick county, inc.”

“The center is generally exempt from federal income taxes under the provisions of section 501(c)(3) of the internal revenue code. The center has been classified as an organization that is not a private foundation under section 509(a)(1). Income which is not related to exempt purposes, less applicable deductions, is subject to federal and state corporate income taxes. The center had no income unrelated to exempt purposes during 2020 or 2019. During fiscal year 2011, the center adopted the provisions of fasb accounting standards codification 740 (fasb asc 740), income taxes. As part of that adoption, the center considered the possibility of uncertain tax positions and their impact on the financial position of the center. Management believes that all of the center's tax positions are based on clear and unambiguous tax law and therefore has a high confidence level in the technical merits of the positions taken. The most significant tax position of the center is its tax-exempt status. As of june 30, 2020 and 2019, management did not identify any uncertain tax positions. Accordingly, the center has not calculated a liability for unrecognized tax benefits. When applicable, the center accrues interest and penalties for income taxes in accrued expenses on the statements of financial position and records any expense in interest or other expense, respectively, on the statements of activities. The center had no interest or tax penalties for the years ended june 30, 2020 and 2019. Because the statute of limitation has not expired, the center remains subject to potential examination of its income tax returns for tax years 2016 and later.”