Guanacaste Dry Forest Conservation Fund

“THE ORGANIZATION HOLDS TROPICAL FOREST LAND THAT IT HAS ACQUIRED FOR PRESERVATION OF ENDANGERED ECOSYSTEMS AND SPECIES. THIS LAND IS DEDICATED FOR FUTURE INCORPORATION INTO THE COSTA RICAN NATIONAL PARK SYSTEM (OR SOME SIMILAR VEHICLE) FOR ITS PRESERVATION IN PERPETUITY. THE LAND IS USED FOR EDUCATION AND SCIENTIFIC RESEARCH, AS WELL AS PUBLIC EXHIBITION TO VISITORS. SINCE ITS INCEPTION IN 1997, THE ORGANIZATION HAS SPENT OVER $15 MILLION ON LAND ACQUISITIONS THAT ARE NOT SHOWN AS ASSETS ON THE BALANCE SHEET. IT HAS ALSO RECEIVED SEVERAL LAND DONATIONS WHICH ARE ALSO NOT REFLECTED AS ASSETS ON THE BALANCE SHEET.THE TEXT OF THE FINANCIAL STATEMENT FOOTNOTE REGARDING COLLECTIONS READS AS FOLLOWS:GDFCF scientists and parataxonomists have discovered, catalogued, and preserved hundreds of thousands of biological specimens collected on lands owned by the government of Costa Rica and GDFCF. These specimens are formally the property of Costa Rica, but are collected and studied under research permits from the Costa Rican government. Nearly all have been exported from ACG with formal government export permits, with the consent of the Costa Rican government, for donation to various national or international biodiversity institutions for use in research, education, and exhibitions. None have been sold or are destined for sale.The approximately 38,000 acres of land acquired by GDFCF are held as a collection intended for public exhibition, education, and/or research in furtherance of public service. The lands are protected, kept unencumbered, cared for, and preserved. They are subject to GDFCFs and related organizations policy that requires the proceeds of land sales, should any ever occur, to be used to acquire other land for collections.Not-for-profit accounting principles state that an organization that holds items that meet the definition of a collection has the option not to capitalize such collection items. In conformity with GAAP, none of the land received through donation or by purchase has been capitalized; cash or related assets held for future land purchases are reflected in the temporarily restricted net asset portion of the accompanying Statement of Financial Position. During the year ended December 31, 2022, GDFCF purchased approximately 453 acres of forest land at a total cost of $502,953. During the yeat ended December 31, 2021, GDFCF purchased approximately 550 acres of forest land at a total cost of $594,125. GDFCF received no donated land during 2022 and 2021..”

“Gdfcf has three permanent endowment funds:1) a fund established to finance future general operation expenditures, as needed. 2) a fund established to finance the future operation of the parataxonomist program.3) a fund to finance the compensation of a science director(s) for the organization.gdfcf is also the beneficiary of a trust established by a canadian nonprofit organization to hold funds as a permanent endowment fund to support gdfcf's parataxonomist program. In addition to these three permanent endowment funds, gdfcf has established three board-designated endowment funds that mirror and supplement the permanent endowment funds.”

“Income Taxes GDFCF has received notification from the Internal Revenue Service and the State of California that it qualifies for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and Section 23701d of the California Revenue and Taxation Code. The exemptions are subject to periodic review by the federal and state taxing authorities and management is confident that GDFCF continues to satisfy all federal and state statutes in order to qualify for continued tax exemption status. GDFCF may periodically receive unrelated business income requiring GDFCF to file separate tax returns under federal and state statutes. Under such conditions, GDFCF calculates and accrues the applicable taxes.Financial statement presentation follows the recommendations of ASC 740, Income Taxes. Under ASC 740, GDFCF is required to report information regarding its exposure to various tax positions taken by GDFCF and requires a two-step process that separates recognition from measurement. The first step is determining whether a tax position has met the recognition threshold; the second step is measuring a tax position that meets the recognition threshold. Management believes that GDFCF has adequately evaluated its current tax positions and has concluded that as of December 31, 2021 and 2020, GDFCF does not have any uncertain tax positions for which a reserve or an accrual for a tax liability would be necessary.”