Salish Kootenai College Foundation Inc

“The foundation's endowment consists of several individual funds established for the purpose of scholarships. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Investment return objectives, risk parameters and strategies. The foundation has adopted investment and spending policies, approved by the board of directors, for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment funds while also maintaining the purchasing power of those endowment assets over the long-term. Accordingly, the investment process seeks to achieve an after-cost total real rate of return, including investment income as well as capital appreciation, which exceeds the annual distribution with acceptable levels of risk. Endowment assets are invested in a well diversified asset mix, which includes equity and fixed income securities, which is intended to result in a consistent inflation protected rate of return that has sufficient liquidity to make an annual distribution of approximately 5%, while growing the funds if possible. Therefore, the organization expects its endowment assets, over time, to produce an average rate of return of approximately 5% to 12%. Actual returns in any given year may vary from this amount. Investment risk is measured in terms of the total endowment fund; investment assets and allocation between asset classes and strategies are managed to not expose the fund to unacceptable levels of risk. Spending policy. The organization has a policy of appropriating for distribution each year 5% of the total investment return. 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 maintain a constant funding-support ratio.”

“The organization is exempt from federal income tax under section 501(c)(3) of the internal revenue code; therefore, no provision for income taxes has been made. The organization recognizes tax benefits only to the extent that they believe it is "more likely than not" that their tax position will be sustained upon examination by taxing authorities. The organization believes that all of the positions taken on their federal income tax returns would more likely than not be sustained upon examination. Generally, the organization's income tax returns remain subject to examination by taxing authorities for three years after they are filed.”