Mcdowell Sonoran Land Conservancy

“THE LAND UNDER A CONSERVATION EASEMENT IS MONITORED ON A MONTHLY BASIS AND IS HELD AS LAND WITH A PERMANENT RESTRICTION ON THE BALANCE SHEET. Any violations noted during monitoring are reported to the City of Scottsdale for enforcement of required corrections.LAND HELD FOR CONSERVATION CONSISTS OF CERTAIN UNDEVELOPED DESERT LAND LOCATED IN THE CITY OF SCOTTSDALE, AZ AND HELD FOR THE PURPOSE OF CONSERVATION. THE LAND WAS DONATED TO THE CONSERVANCY AND IS RECORDED AT THE FAIR VALUE OF THE LAND AT THE DATE OF GIFT. THE LAND IS DONOR RESTRICTED TO BE MAINTAINED IN PERPETUITY AND IS INCLUDED IN THE CONSERVANCY'S PERMANENTLY RESTRICTED NET ASSETS AT JUNE 30, 2016 AND 2015.”

“The Conservancy qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code and, therefore, there is no provision for income taxes. In addition, the Conservancy qualifies for the charitable contribution deduction under Section 170 of the Code and has been classified as an organization that is not a private foundation. Income determined to be unrelated business taxable income (UBTI) would be taxable. The Conservancy has adopted Accounting for Uncertainty in Income Taxes. This standard clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This standard provides that the tax effects from an uncertain tax position can be recognized in the financial statements only if the position is "more-likely-than-not" to be sustained if the position were to be challenged by a taxing authority. The standard also provides guidance on measurement, classification, interest and penalties, and disclosure. The tax years ended 2013, 2014, and 2015 are still open to audit for both federal and state purposes. The Conservancy has processes presently in place to ensure the maintenance of its tax-exempt status; its exemption; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. The Conservancy has determined there is no impact on the accompanying financial statements related to the adoption of this standard.”