Santiam Christian Schools

“The school is the trustee and remainder beneficiary under charitable remainder annuity trust established december 28, 1995 with contribution of 280,000 in cash. The assets contributed are in a trust and invested. During the term of the trust, distributions of 14,000 per year are made to a beneficiary (or beneficiaries) over their lifetimes. The net present value of these future payments is recorded as a liability. Upon the death of the final beneficiary, the remaining assets are available for the school to be used according to the donor's wishes.”

“The organization's endowment is established for scholarships. Its endowments consist of permanent and temporary donor-restricted endowment funds managed by the school. The organization classifies as permanently restricted net assets the original value of gifts donated to the permanent endowment, the original value of subsequent gifts to the permanent endowment, and accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.”

“Santiam christian schools are exempt from income taxes under section 501 (c)(3) of the internal revenue code; therefore, no provision for income taxes has been made. In addition, the schools qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a) (2). The taxexempt status can be revoked by the internal revenue service as a result of direct violations of laws and regulations governing 501(c)(3) organizations. The schools operating policy requires strict adherence to these laws and regulations in order to maintain its tax-exempt status. Managements policy is to engage in activities related to their exempt purpose. Management evaluates tax positions annually based on the guidance in financial accounting standards board (fasb) accounting standards codification (asc) section 740. Fasb asc section 740 prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing, in the financial statements, tax positions taken or expected to be taken on a tax return, including positions that the schools is exempt from income taxes or not subject to income taxes on unrelated business income.the schools presently disclose or recognize income tax positions based on managements estimate of whether it is reasonably possible or probable, respectively, that a liability has been incurred for unrecognized income tax benefits. Generally, the schools is subject to examination by federal and state income tax authorities for three years from the filing of a tax return.”

“FUNDRAISING -34,285”

“Fundraising expenses -34,285”