Mountain Conservation Trust of Georgia Inc

“Organization has a written policy for monitoring and enforcement.”

“Easements are not accounted for in that they do not meet recognition requirements of modified cash basis of accounting. Conservation easements held by the organization represent intangible property rights granted by a landowner. Under the terms of the easement agreement, the occurrence of specific conditions upon which these intangible rights may directly or indirectly benefit the future cash flows of the organization are determined by management to be both remote and unmeasurable. Thus, in accordance with us gaap, conservation easement transactions represent neither donated intangible assets nor non-cash contributions revenue to the organization, and are not recorded. While the granting of a qualified conservation easement may result in income tax benefits to the landowners as a charitable contribution, such tax benefits to the grantor, if any, are irrelevant to the determination of the appropriate accounting treatment to be applied by the organization in the preparation of its financial statements.”

“Mctga is a not-for-profit corporation and is exempt from income taxes under section 501(c)(3) of the internal revenue code. Accordingly, no income taxes are reflected in the accompanying consolidated financial statements. As a single-member limited liability company, mctga properties is considered a disregarded entity for tax purposes, and thus includes its reportable activity in its parent company's informational tax return. Under asc 740, "income taxes," mctga assesses the likelihood, based on their technical merit, that tax positions taken in its annual informational tax return will be sustained upon examination of the facts, circumstances and information available at the end of each financial statement period. Unrecognized tax benefits are measured and recorded as a liability where mctga has determined it to be probable a tax position would not be sustained (an "uncertain tax position") and the amount of the unrecognized tax benefit, including associated penalties and interest, can be reasonably estimated. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately not sustained for an individual uncertain tax position, or for all uncertain tax positions in the aggregate, could differ from the amount recognized. Asc 740 is applicable to not-for-profit entities in that certain matters, such as mctga's tax-exempt status, are considered tax positions taken in its annual informational tax return and thus must be assessed for potential unrecognized tax benefits. Management has determined that there is no tax liability resulting from unrecognized tax benefits relating to any uncertain income tax positions taken, or expected to be taken, on its informational tax returns as of june 30, 2018. No informational tax returns are currently under examination.”