Avda

“Avda's endowment consists of investment funds to endow an avda attorney position to protect women who have been battered that cannot afford legal representation and for the long-term fulfillment of avda's mission. Its endowment funds include donor-restricted funds and funds designated by the board of directors to function as endowments. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the board of directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. Spending policy the organization does not have a policy of planned annual distribution of the endowment funds. Decisions to appropriate funds for expenditures consistent with the purpose of the endowments or to accumulate such funds shall be made only by the board of directors. In establishing this policy, the organization considered the long-term expected return on its investment assets, the nature and duration of the individual endowment funds, and the possible effects of inflation. The organization expects the current spending policy to allow its endowment funds to grow at an average rate of 5% annually. This is consistent with the organization's objective to maintain the purchasing power of the endowment assets as well as to provide additional real growth through new gifts and investment return. The organization has a policy that permits spending underwater endowment funds depending on the degree to which the fund is underwater, unless otherwise precluded by donor intent or relevant laws regulations. The organization is committed to honoring the wishes of the donor(s) while also preserving the principal investment of the endowment fund(s) so that it will last in perpetuity. Although the organization strives to provide prudent fiduciary management and administration of each individual endowment fund, the organization recognizes that sometimes due to conditions out of its control, the fair market value (fmv) of an endowed fund can fall below the historic principal value of the contributions received deeming it an underwater endowment. In the event an endowment falls underwater, an analysis of the fund will be undertaken in order to make a determination on future spending distributions.”

“The organization applies the provisions of fasb asc topic 740, income taxes, (formerly fasb interpretation no. 48 (fin 48), accounting for uncertainty in income taxes - an interpretation of fasb statement no. 109), which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Fin 48 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The organization believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements.”