Delta Sigma Phi Fraternity

PART X, LINE 2:

“Notes to the consolidated financial statements: both the fraternity and housing are nonprofit corporations exempt from income taxes under section 501(c)(7) of the united states internal revenue code and similar state law. Title holding is a nonprofit corporation exempt from income taxes under section 501(c)(2) of the united states internal revenue code and similar state law. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Certain nonmember income that would otherwise be taxable may be set aside. Any income that the grand council has properly set aside must be used for the qualifying purposes outlined in the set aside resolution. Included in cash at june 30, 2025 and 2024 is $101,826 and $62,130, respectively, of funds set aside by the grand council. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the organization and recognize a tax liability if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of june 30, 2025 and 2024, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying consolidated financial statements. The organization has filed its federal and state income tax returns for periods through june 30, 2024 and is subject to routine audits by taxing jurisdictions. However, as of the date of the consolidated financial statements were available to be issued, there were no audits for any tax periods in progress. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”