Hartnell College Foundation

“The purpose of hartnell college foundation art collection is to effectively champion, support, and expand the presence and impact of arts in the salinas valley community. The collection has an educaitonal purpose as it is periodically exhibited for the benefit of students and the community at large.”

“Endowment assets have been restricted by donors to be maintained by the foundation in perpetuity. Endowment earnings support scholarships, campus areas, or may be used to further the foundation's mission.”

“The united states treasury department determined that the foundation is a nonprofit tax-exempt corporation as defined by internal revenue code section 501(c)(3). A similar determination was made by the california franchise tax board under section 237 of the state revenue and taxation code. In 2003, the foundation board of directors approved the 501(h)lobby election of the internal revenue code. Such status provides the foundation with the ability to participate in the public policy process through lobbying and advocacy campaigns, but limits the foudnation's expenses for the purpose to a maximum of 20% of the first $500,000 of annual expenditures. The foundation has accounted for uncertainty in income taxes as required by the accounting for uncertinty in income taxes topic of the financial accounting standards board (fasb) accounting standards codification. The foundation uses a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions take or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examinaton being presumed to occur. The amount recognized is the largest amounnt of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely that not: test, no tax benefit is recorded. The effect of applying this model and the resulting identification of uncertain tax positions, if any, were not considered significant for financial reporting purposes. The foundaiton is not subject to any tax liability. Management does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. The foundation would recognize interest and penalities related to unrecognized tax benefits in tax expense. During the year endged june 30, 2019, the foundation did not recognize any interest or penalties. The foudnation is subject to the filing of u.s. Federal california returns for 2014 through 2017 and califonria returns for 2013 through 2017 are currently open for potential federal and state examination.”