Vatican Observatory Foundation Attn Brother Tom Williams

“The Foundation's endowments were established to support, further and enhance the mission of the Foundation. The Foundation has interpreted the "Management of Charitable Funds Act" (Arizona's version of the Uniform Prudent Management of Institutional Funds Act or "UPMIFA"), which underlies the Foundation's net asset classification of donor-restricted endowment funds, as requiring the preservation of the fair value of the original gift. As a result of this interpretation, the Organization classifies as net assets with donor restrictions (1) the original value of gifts donated to the endowment, (2) the original value of subsequent gifts to the endowment, and (3) accumulations to the endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by the Foundation in a manner consistent with the standard of prudence prescribed by the law, at which time those amounts will be reported as net assets without donor restrictions. Accordingly, the Foundation considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: The duration and preservation of the fund. The purposes of the Foundation and the donor-restricted endowment fund. General economic conditions. The possible effect of inflation and deflation. The expected total return from income and the appreciation of investments. Other resources of the Foundation. The Foundation's investment policies.”

“The Foundation is an Internal Revenue Code ("IRC") Section 501(c)(3) organization, exempt from taxes by application of IRC Section 501(a) and is a public charity by application of IRC Section 509(a)(1). Accordingly, no provision for federal or state income taxes is recorded in the accompanying financial statements. Income from certain activities not directly related to the Foundation's tax-exempt purpose, however, may be subject to taxation as unrelated business income. Management has considered its tax positions in accordance with the accounting standard for uncertainty in income taxes and believes that all of the positions taken in its federal and state exempt organization returns are more likely than not to be sustained upon examination. In addition, Management is not aware of any matters which would cause the Foundation to lose its tax-exempt status. The Foundation's returns are subject to examination by federal and state taxing authorities, generally for three and four years, respectively, after they are filed. The Foundation recognizes interest and penalties related to unrecognized tax benefits in general and administrative expenses in the accompanying financial statements. During the year ended December 31, 2019 and 2018, the Foundation did not recognize any interest and penalties.”

“Fees 21,973. Taxes 1,312.”

“Fees 21,973. Taxes 1,312.”