YMCA Foundation of Southern Arizona

“The ymca and the foundation have adopted the provision under the uniform prudent management institutional funds act ("upmifa") and have adopted a spending policy that seeks to preserve and build the permanent funds entrusted to the ymca and the foundation on a real dollar basis and to maintain the distribution levels in periods of "down markets". The spending policy determines the annual dollar value of distributions that may be made from the unrestricted fund and the permanently restricted endowment funds unless the donor has clearly expressed a different intent. This amount is established by the board of directors prior to each fiscal year at the rate of 3% to 5% of the rolling average market value of the previous 12 quarters. Spending from the permanently restricted income endowment funds is limited to interest and dividends earned in the previous calendar year on that fund. Investment objectives of the ymca and the foundation are to manage the portfolio in a manner that will maximize the benefits intended by donors, to provide perpetual financial support for the ymca and the foundation, and to achieve a total return over time sufficient to preserve and increase the purchasing power of the assets. The ymca and the foundation believe this goal can best be achieved by managing the unrestricted, restricted income endowment, and endowment portion of the fund on a total return basis. Accordingly, the asset allocation range for equities will be 25% to 75% for this portion of the fund. For the restricted income only portion of the fund, equities will be 20% to 45%. For the charitable gift annuity reserve portion of the fund the asset allocation range for equities will be 20% to 45%. The remainder may be invested in fixed income or cash and cash equivalents of 55% to 80% of the portfolio. The investment policy statement applies only to those assets for which the investment managers and the finance committee have discretionary authority.”

“The ymca and the foundation are organized as arizona nonprofit corporations and have been recognized by the internal revenue service ("irs") as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3), qualify for the charitable contribution deduction under section 170(b )(1 )(a)(vi) and (viii), and have been determined not to be private foundations under sections 509(a)(1) and (3), respectively. The organizations are annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the organizations are subject to income tax on net income that is derived from business activities that are unrelated to its exempt purposes. Each organization has determined it is not subject to unrelated business income tax and has not filed an exempt organization business income tax return (form 990-t) with the irs. Each organization believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The organizations would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”