Handmaker Foundation

PART X, LINE 2:

“Asc 740 (fin 48) consolidated disclosure for handmaker jewish services for the aging, handmaker foundation dba the sandruby community fund, and hme, inc.: handmaker and sandruby are exempt from income taxes under both federal (internal revenue code section 501(c)(3)) and arizona income tax laws, and is classified as other than a private foundation. Accordingly, no provision for federal and state income taxes is made. Income from certain activities not directly related to the organization's tax-exempt purpose, however, may be subject to taxation as unrelated business taxable income (ubti). Hme is a taxable corporation. Gaap requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the organization's tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. Handmaker and sandruby are only subject to income taxes on ubti as applicable. As a result, the organization is required to file informational returns for federal and state purposes and, if it has ubti, federal and state income tax returns. Hme is required to file federal and state income tax returns. Management has performed its evaluation of tax positions taken on all open tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard. Accordingly, there are no provisions for income taxes, penalties or interest relating to uncertain income tax provisions in the accompanying consolidated financial statements. From time to time, the organization may be subject to penalties and interest assessed by various taxing authorities, which are classified as management and general expenses, if they occur.”