Spirit Matters-Serving Anthroposophical Initiative

Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote

“RSF and affiliates (excluding SEI, CMP, CAM LLC, MML and MFL) are qualified organizations exempt from federal and California income taxes under Section 501(c)(3) of the Internal Revenue Code ("IRC") and Section 23701d of the California Revenue and Taxation Code. RSF is an organization described under IRC Sections 509(a)(1) and 170(b)(1)(A)(vi). Both GCF and SIF are organizations as described within IRC Section 509(a)(3). SEI and CMP pay both federal and state income tax on its taxable income. Income taxes are provided for the tax effect of transactions reported in the accompanying consolidated financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial and income tax reporting purposes. The deferred tax assets and liabilities represent future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. A valuation allowance is established against deferred tax assets if, in management's opinion, it is more likely than not that all or a portion of such deferred tax assets will not be fully realized. CAM LLC is a limited liability company and is not subject to income taxes. Federal and state income tax statutes require that the income or loss of CAM LLC be included in the tax returns of the members. Each member is individually responsible for reporting income or loss, to the extent required by the federal and state income tax laws and regulations, based upon its respective share of the company's income and expense as reported for income tax purposes. Accounting principles generally accepted in the United States of America prescribes recognition thresholds and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Tax benefits will be recognized only if a tax position is more-likely-than-not sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized will be the largest amount of tax benefit that is greater than 50% likely being realized on examination. For tax positions not meeting the more-likely-than-not test, no tax benefit will be recorded. Management has concluded that there are no tax benefits or liabilities to be recognized at December 31, 2016 and 2015.”