Winter Park Library Association Inc

“The library considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: a. The purposes of the library; b. The intent of the donors of the endowment fund; c. The terms of the applicable instrument; d. The long-term and short-term needs of the library in carrying out its purposes; e. The general economic conditions; f. The possible effect of inflation or deflation; g. The other resources of the library; and h. Perpetuation of the endowment.”

“The library is a tax-exempt organization under section 501(c)(3) of the internal revenue code. Thus, the library is not subject to corporate income taxes except for taxes on unrelated business income. Accounting principles generally accepted in the united states of america prescribe requirements for the recognition of income taxes in financial statements, and the amounts recognized are affected by income tax positions taken by the library in its tax returns. The library's status as an exempt organization is defined as an income tax position under these requirements. While management believes it has complied with the internal revenue code, the sustainability of some income tax positions taken by the library in its tax returns may be uncertain. There are minimum thresholds of likelihood that uncertain tax positions are required to meet before being recognized in the financial statements. Management does not believe that the library has any material uncertain tax positions at september 30, 2014. In the event interest and penalties were due relating to an unsustainable tax position, they would be treated as a component of income tax expense. The library's federal income tax returns are subject to examination by the internal revenue service. At september 30, 2014, the fiscal years 2011 through 2014 federal tax returns are subject to examination.”