Mclennan Community College Foundation Attn Harry Harelik

“The foundation's permanently restricted net assets consisted of approximately 250 endowment funds. These donor-restricted endowment funds at august 31, 2018 and 2017 have been established principally for (a) scholarships (approximately $9,550,000 and $8,201,000, respectively), (b) a distinguished lecture series (approximately $506,000 and $506,000, respectively), (c) maintenance of steinway pianos owned by the district (approximately $324,000 and $317,000, respectively), and (d)other educational purposes under a title iii grant (approximately $253,000 and $253,000, respectively). As required by professional standards, 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. Explicit donor stipulations define amounts that may be expended for each of the foundation's endowments. As a result, the foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations (decrements) to the permanent endowment made in accordance with the direction of the applicable donor gift instrument. Temporarily restricted net assets are available for the following specific programs: 2017 2018 scholarships $ 6,498,948 7,729,447 educational purposes under title iii grant 1,892,714 2,054,754 distinguished lecture series 195,626 332,988 $ 8,587,288 10,117,189”

“Form 990, part iv, line 11f: the foundation qualifies as a tax-exempt organization under section 501(c)(3) of the internal revenue code and, accordingly, is generally not subject to federal income tax. The foundation recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in the recognition or measurement are reflected in the period in which the change in judgment occurs. The foundation records interest and penalties related to unrecognized tax benefits in management and general expenses.”

“The permanently restricted fund is intended for scholarships for students attending mclennan community college. Temporarily restricted funds are for scholarships and various campus improvements including the science and hpc buildings.”

“In years prior to the year ended august 31, 2016, administrative expenses of the endowment fund were included with grants and scholarships on line 1d. Beginning with the fiscal year ended august 31, 2016, administrative expenses are reported separately on line 1f.”