Nc Child

“Endowment assets are invested in a well-diversified mix of asset classes and holding periods, designed to preserve and protect the principal balance of endowed funds while achieving a long-term net rate of return. This return is intended to grow the board designated reserve fund to support expenditures as outlined in the organization's operating reserve policy. The organization also seeks investments that generate positive social and environmental impacts aligned with the priorities and values of nc child. Actual returns may vary from year to year. Investment risk is measured in terms of the total endowment fund. Investment assets and allocations across asset classes and strategies are managed to avoid exposing the fund to unacceptable levels of risk.”

“The organization is exempt from income taxes as a not-for-profit entity under internal revenue service ("irs") code section 501(c)(3), and from state income taxes under similar provisions of north carolina tax laws. During the years ended december 31, 2024 and 2023, the organization reported no unrelated business taxable income, which is defined by the irs as gross income derived from any unrelated trade or business that is not substantially related to the organization's tax-exempt purpose. Accordingly, no provision for income taxes has been recorded. The organization adopted the provisions of fasb asc 740-10-25, accounting for uncertainty in income taxes. Under this guidance, an organization must recognize the tax benefit associated with a tax position taken for tax return purposes when it is more likely than not that the position will be sustained. The implementation had no impact on the organization's financial statements. The organization does not believe there are any material uncertain tax positions and, accordingly, it has not recognized any liability for unrecognized tax benefits. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax years. The organization believes it is no longer subject to income tax examinations for years prior to 2020. As of december 31, 2024 and 2023, the organization had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.”