The Pre-Hab Foundation

“The foundation's endowment (the endowment) consists of funds established by donors to provide long-term sustainability for the foundation's operations. Net assets associated with the endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The foundation has adopted investment and spending policies for the endowment that attempt to provide a predictable stream of funding for operations while seeking to maintain the purchasing power of the endowment assets. Over time, long-term rates of return should be equal to an amount sufficient to maintain the purchasing power of the endowment assets, to provide the necessary capital to fund the spending policy, and to cover the costs of managing the endowment investments. Actual returns in any given year may vary from this amount. To satisfy this long-term rate-of-return objective, the investment portfolio is structured on a total-return approach through which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). As of june 30, 2024, a significant portion of the funds are invested to seek growth of principal over time. The foundation uses an endowment spending-rate formula to determine the amount to spend from the endowment each year. The rate, determined and adjusted from time to time by the board of directors, is applied to the average fair value of the endowment investments for the prior 12 quarters at december 31 of each year to determine the spending amount for the upcoming year. In establishing this policy, the foundation considered the long-term expected return on the endowment, and set the rate with the objective of maintaining the purchasing power of the endowment over time. During 2024, the spending rate was 0.00% because the board of directors has established a policy that there shall be no expenditures until such time as the endowment's corpus, including investment return earned up until that point, reaches $5,000,000.”

“The organization recognizes uncertainty in income taxes in the financial statements when it is more likely-than-not that the positions will not be sustained upon examination by the tax authorities. As of june 30, 2024, the organization had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.”