Sonoma County Public Library Foundation

“The donor-restricted Endowment Fund is to be kept at the original value of the gifts donated to the permanent endowment plus additions in accordance with donor restrictions. The remaining portion of the donor-restricted endowment funds that are not classified as permanently restricted are temporarily restricted until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the standard of prudence prescribed by the Uniform Prudent Management of Institutional Funds Act of 2006.The Foundation's Board has established an annual spending policy, which is determined using 4% of the fair value at the end of the first fiscal year, and then averaged over two years in year two, and a rolling three subsequent years going forward.”

“The Foundation is exempt from federal and state income taxes under Internal Revenue Code Section 501(c)(3) and California Franchise Tax Board Code Section 23701(d); however, income from certain activities not directly related to the Foundation's tax-exempt purpose could be subject to taxation as unrelated business income if carried out on a regular basis. The Internal Revenue Service has determined the Foundation qualifies for the charitable contribution deduction under Section 170(b)(1)(A) and has been classified as an organization other than a private foundation under Section 509(A)(2).The Foundation determines whether its tax positions are "more-likely-than-not" to be sustained upon examination by the applicable taxing authority based on the technical merits of the positions. As of June 30, 2024, the Foundation had no unrecognized tax positions or uncertain tax positions requiring accrual. Therefore, no provision for income taxes has been provided in these financial statements. Exempt organization information returns are subject to review through three years after the date of filing for federal and four years after the date of filing for California.”