The Living Stones Foundation Charitable

“Based upon the trust agreement and bylaws, the independent managing trustees always have a majority vote, regardless of the number of trustees. This rule of governance applies to all trustee votes, including all executive committee and other committee votes. The organization's bylaws provide 7 votes to the independent managing trustees and 6 votes to other trustees, including major contributors and related parties. The independent managing trustee positions are restricted to those holding officer, director, trustee or leadership positions in charities among this organizations's supported class. During the year, the independent trustees held officer, director or leadership positions in waterstone as well as positions in other organizions in this organization's supported class. Grants are approved by the executive committee under grant guidelines approved by, and frequently reviewed by, the full board of trustees. Two-thirds of the executive committee are independent managing trustees.”

“Kenneth a. Eldred, chairman, & roberta e. Eldred, secretary, are spouses and the parents of kary & justin eldred (both trustees). These family members, and their spouses, monica and rachel eldred, are all considered to be non-independent trustees. According to the bylaws, the non-independent trustees are allocated a total of 6 votes and the independent trustees, whatever their number, are allocated, in total, 7 votes. Kary n. Eldred, president, & monica i. Eldred, trustee, are spouses. Justin a. Eldred, treasurer, & rachel m. Eldred, trustee, are spouses. Doug kiesewetter, trustee, & deborah kiesewetter, trustee, are spouses. John b. Mumford, trustee, & dena wren mumford, trustee, are spouses. David a. Seeba, trustee, owns a cpa firm which provides tax & consulting services to the foundation and to some of the trustees.”

“Kenneth & roberta eldred, trustees, appoint the remaining foundation trustees, including the independent trustees, which are restricted to those holding officer, director, trustee or leadership positions in charities among the foundation's supported class.”

“Prior to filing, the 990 is reviewed individually by the executive committee of the board of trustees. Changes needed to the form 990 are communicated to the tax return preparer for correction. A complete copy of the form 990 is provided to the full board at the time of filing.”

“At the annual board meeting, the trustees are required to disclose interests that could give rise to conflicts. The other trustees then decide if the interest is an actual conflict and advises the trustees concerned about whether voing on certain organizational issues should be avoided.”

“The organization makes its exemption application (form 1023), trust document & bylaws, and its annual tax forms (form 990) available upon request.”