Caritas

“On september 18, 2007, caritas entered into an agreement with the community foundation for a greater richmond (the "cf") to create an agency endowment fund (the "fund") as described under fasb asc 958-20, financially interrelated nonprofit entities. The board of directors designated $500,000 to be transferred to establish the endowment and recorded it as a "beneficial interest in assets held at the community foundation". Under the terms of the agreement, variance power was granted to the cf, including the power for the cf's board of governors to modify any restrictions or conditions on the distribution of the funds for any specified charitable purpose or to specified organizations, if in their sole judgment, such restriction or condition becomes incapable of fulfillment. Endowment spendable income shall be determined each year to be not more than 4% of the fund's balance at the prior calendar year-end. In addition to the aforementioned spendable income, upon a vote of 75% of all members of the caritas board of directors, and not more than once in any five year period, up to 10% of the prior calendar year ending fund balance may be requested for capital or emergency purposes. Any spendable income not requested by the caritas board of directors within a given calendar year will be added to the fund's principal balance.”

“The internal revenue service (the "irs") has determined that caritas is exempt from federal income tax under section 501(c)(3) of the internal revenue code (the "irc or the "code"). Caritas did not have any unrelated business income for the year ended june 30, 2023. Developer is a disregarded entity for tax purposes and its taxable income or loss is included with the return for caritas. Caritas is required to file and does file tax returns with the irs and other taxing authorities. Management has analyzed the tax positions taken by the organization and has concluded that, as of june 30, 2023, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosures in the consolidated financial statements. Generally, the organization's information/tax returns remain open for possible federal income tax examination for three years after the filing date. While no income tax returns are currently being examined by the internal revenue service ("irs"), tax years since 2020 remain open.”