The Dallas Foundation

“Agency endowment funds are the permanent and non-permanent endowments given by individuals or nonprofit organizations. These funds may provide perpetual support for scholarships, specific charities or charitable fields of interest, all benefiting the dallas community. Of the multiple endowed funds at the dallas foundation, there are two types of funds who award annual grants via a competitive application process. These for field of interest funds and the community impact fund. The field of interest funds award grants to organizations who fit within a specific charitable focus. The community impact fund is an unrestricted, general endowment which benefits a variety of causes.”

“The foundation follows the provisions of asc 740-10, income taxes, related to unrecognized tax positions. The foundation recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax positions will be sustained on examination by the taxing authorities, based on the technical merits of the positions. The tax benefits recognized in the consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The foundation does not believe there are any material uncertain tax positions and accordingly, it will not recognize any liability for unrecognized tax benefits. For the years ended december 31, 2014 and 2013, there were no interest or penalties recorded or included in the financial statements. The foundation is relying on its tax-exempt status and its adherence to all applicable laws and regulations to preserve that status. However, the conclusions regarding accounting for uncertainty in income taxes will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analysis of tax laws, regulations, and interpretations thereof. The foundation recognizes interest and penalties, if any, related to uncertain tax positions as tax expense. The foundation's informational returns are generally subject to examination for three years after the later of the due date or date of filing. As a result, the foundation is no longer subject to income tax examinations by tax authorities for years prior to 2011.”

“Part v, line 1b the large increase in contributions for the current year is a result of the organization reclassifying the way the agency funds are reported. During the 2014 audit the organization decided to classify all agency funds as endowments resulting in a 20,732,921 reclassification.”