Vail Valley Foundation Inc.

“Vail valley foundation's intended use of the permanent endowment fund is to use the earnings from the invested funds for repair and maintenance expenses on the ford amphitheater. Temporarily restricted designated endowments are used to fund educational, scholarship, and other programs of the foundation.”

“Vail valley foundation, vilar center and youthpower365 are organized as colorado nonprofit corporations and have been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3). Vail valley foundation has been determined to not be a private foundation under section 509(a)(2) and qualifies for the charitable contribution deduction under section 170(b)(1)(a)(viii). Vilar center and youthpower365 have been determined to not be private foundations under section 509(a)(1) and both qualify for the charitable contribution deduction under section 170(b)(1)(a)(vi). Each entity is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the entities are subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. Vilar center and youthpower365 have determined they are not subject to unrelated business income tax and have not filed an exempt organization business income tax return (form 990-t) with the irs. Vail valley foundation files an exempt organization business income tax return (form 990-t) with the irs to report its unrelated business taxable income and these tax filings are no longer subject to examination for years before 2012. No income taxes were paid during or for the years ended september 30, 2016 and 2015. Vail valley foundation believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The entities would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”

“During fiscal year ended september 30, 2016, vail valley foundation's management discovered an error in the allocation and reporting of endowment funds on schedule d, part v for vvf and its related organizations, youthpower365 and vilar center for the arts foundation. To correct the error, the endowment fund activity reported on schedule d, part v for the current reporting period has been adjusted on each entities tax return to properly reflect the ending endowment fund balances as of september 30, 2016. The correction of endowment balances between the vvf and its related organizations would not have changed consolidated endowment balances in prior years, but merely to which related entity the endowment balances would have been allocated.”