Arizona'S Catholic Tuition Support Organization

“The organization accepted funds in 2011 originally bequeathed to san xavier mission school to be held for use by that school for scholarships to the school's students. The final distribution from the estate was received during 2016. Unexpended amounts still held for the school totaled $5,977 at june 30, 2017 and 2016.”

“During 2016, the governing board designated $200,000 of unrestricted net assets to be used to establish a board designated quasi endowment fund. The purpose of the quasi endowment fund is to support catholic education within the diocese of tucson.”

“The organization is exempt from income taxes under both federal (internal revenue code section 501(c)(3)) and arizona income tax laws, and is classified as other than a private foundation. Accordingly, no provision for federal and state income taxes is made. Income from certain activities not directly related to the organization's tax-exempt purpose, however, may be subject to taxation as unrelated business taxable income (ubti). Gaap requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the organization's tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. The organization is only subject to income taxes on ubti as applicable. As a result, the organization is required to file informational returns for federal and state purposes and, if it has ubti, federal and state income tax returns. Management has performed its evaluation of tax positions taken on all open tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard. From time to time, the organization may be subject to penalties and interest assessed by various taxing authorities, which are classified as administrative expenses if they occur.”