The Pacific Forest Trust Incorporated

“All easements have a stewardship monitoring plan written and approved prior to the close of the easement transaction. Upon closing the transaction, an amount calculated based on various criteria is deposited into the organizations stewardship fund, from which investment earnings are used to pay for easement monitoring and any easement defense costs.”

“Organizations balance sheet shows the value of the land at cost; direct expenses are included in program expenses. Footnote in financial statements: the corporation held 36 conservation easements located in california and oregon comprising 118,685 acres at the end of 2023. The easements carry no marketable value. Accordingly, they are not reported as assets on the balance sheet and are expensed in the year in which they are acquired. The corporation maintains an internal record keeping system to account for all easements and to assure the regular monitoring of compliance and other stewardship obligations”

“The Organization is exempt from Federal income taxes under Section 501(c)(3) of the Internal Revenue Code. The Organization is also exempt from California franchise taxes under Section 23701(d) of the Revenue and Taxation Code and, therefore, has made no provision for Federal or California income taxes. Contributors, donors, and grantors may obtain tax benefits. In addition, the Organization has been determined by the Internal Revenue Service not to be a private foundation within the meaning of Section 509(a) of the Code. The Organization adopted the recognition requirements for uncertain income tax positions as required by generally accepted accounting principles, with no cumulative effect adjustment required. Income tax benefits are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-thannot be sustained upon examination by taxing authorities. The Organization has analyzed tax positions taken for filing with the Internal Revenue Service and all state jurisdictions where it operates. The Organization believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse affect on the Organizations financial condition, results of operations or cash flows. Accordingly, the Organization has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions. The Organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.”