Thomas Jefferson Foundation Inc.

“Afs footnote 1 - historic properties and collections: the foundation has elected not to capitalize its historic properties and collections. These collections are related to thomas jefferson and his plantation home, monticello. The most precious artifact in the collection is the house itself and the surrounding landscape, which were designed by thomas jefferson between 1769 and 1809. The curatorial collections chiefly consist of paintings, decorative arts and artifacts, approximately 2,600 of which relate directly to thomas jefferson and monticello, and about 1,900 books with titles and editions selected to duplicate jefferson's original library. About 40 of these volumes are jefferson's own copies. The foundation's restoration department is dedicated to the architectural preservation of the house, while the curatorial collections are under the care of a full curatorial department. The foundation's collections are maintained for public exhibition, education, and research in order to advance understanding of jefferson and monticello in furtherance of public service. The foundation's collections management policy requires that the proceeds from the sale of any artifact from the foundation's collection would be used to acquire additional artifacts for the collection. The foundation does not recognize the donations of collection items as contribution income, as the collections are not capitalized.”

“All endowment investments are classified as noncurrent assets to recognize the foundation's intent to continually reinvest earnings and preserve principal except to the extent of any annual withdrawals in accordance with the endowment spending policy. The foundation has a policy of appropriating 5% of the three-year trailing average of market values of endowment funds as of the preceding june 30. In establishing this policy, the foundation considered its investment policy objective of attaining an average real return of 5%. Accordingly, over the long term, the spending policy will maintain the purchasing power of the endowment.”

“The foundation has been determined by the internal revenue services (irs) to be exempt from taxes on income derived from activities related to its exempt purpose under section 501(c)(3) of the internal revenue code and has been classified as an organization that is not a private foundation. However, the foundation is subject to unrelated business income tax on certain activities which are unrelated to its exempt purpose. The foundation has net operating loss carryforwards totaling approximately $3.5 million, with expirations ranging from 2021 to 2037. A 100% valuation allowance has been recorded against this deferred tax asset because it is uncertain that the loss carryforward represents a future tax benefit. In accordance with u.s. Gaap, the foundation recognizes tax liabilities for uncertain tax positions when it is more likely than not that a tax position will not be sustained upon examination and settlement with various taxing authorities. Liabilities for uncertain tax positions are measured based upon the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. With few exceptions, the foundation is no longer subject to income tax examinations by the u.s. Federal, state or local tax authorities for years ended december 31, 2017 and prior. Management has evaluated the foundation's tax positions and has concluded that the foundation has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance.”

“COST OF GOODS SOLD 5,753,335 Unrealized gain on interest rate swap 1,673,084 ------------ 7,426,419”

“Cost of goods sold 5,753,335”