Prehab Foundation DBA a New Leaf 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, 2019, 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 2019, 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 foundation is organized as an arizona nonprofit corporation and has been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as an organization described in section 501(c)(3) and has been determined not to be a private foundation under section 509(a)(2). Accordingly, contributions to it qualify for the charitable contribution deduction under section 170(b)(1)(a). The foundation is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the foundation is generally subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. Management has determined the foundation has no material unrelated business taxable income. As an arizona limited partnership, the partnership's taxable income or loss is allocated to partners in accordance with the partnership agreement. No income or loss was allocated to prospect park llc. Therefore, no provision for income taxes has been included in the consolidated financial statements related to the partnership's activities. Management evaluates its tax positions that have been taken, or are expected to be taken, on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of june 30, 2019, the unrecognized tax benefit accrued was $-0-. The consolidated entity will recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if incurred.”

“Income tax refund included in form 990, part viii 4,578. Bingo expenses included in form 990, part viii -27,453. Cost of sales included in form 990, part viii -145,302. Rental expenses included in form 990, part viii -565.”

“Bingo expenses included in form 990, part viii 27,453. Cost of sales included in form 990, part viii 145,302. Income tax refund included in form 990, part viii -4,578. Rental expenses included in form 990, part viii 565.”

“Management evaluates its tax positions that have been taken, or are expected to be taken, on income tax returns to determine if an accrual is necessary for uncertain tax positions. As of june 30, 2019, the unrecognized tax benefit accrued was $-0-. The consolidated entity will recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if incurred.”