Second Wind Fund Inc.

“On October 20, 2020, the Board of Directors voted to terminate the quasi-endowment and established a board-designated operating reserve, which was initially funded with the balance of the terminated quasi-endowment account and the prior fiscal year unrestricted fund surplus. The operating reserve is a permanent, revolving fund designed to ensure the long-term financial stability of the Organization. The operating reserve will be maintained to meet the following objectives: 1) to ensure stability of the mission, programs, employment, and ongoing operations; 2) enable the Organization to sustain operations through delays in payments of committed funding and to accept reimbursable contracts and grants without jeopardizing ongoing operations; 3) to promote public and funder confidence in the long-term sustainability of the Organization by preventing chronic cash flow crises that can diminish its reputation and force its leaders to make expensive short-term, crisis-based decisions and; 4) to create an internal line of credit to manage cash flow and maintain financial flexibility.”

“The Organization follows Accounting for Uncertainty in Income Taxes which requires them to determine whether a tax position (and the related tax benefit) is more likely than not to be sustained upon examination by the applicable taxing authority, based solely on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement, presuming that the tax position is examined by the appropriate taxing authority that has full knowledge of all relevant information. During the year ended June 30, 2021, the Organization's management evaluated its tax positions to determine the existence of uncertainties, and did not note any matters that would require recognition of which may have an effect on its tax-exempt status.”