Cancer Support Community Greater San Gabriel Valley

“Cscp maintains two funds: (1) donor-restricted endowment (the endowment) for the purpose of securing the long-term economic wellbeing of the cscp program, to achieve the program's mission objectives, and to provide reasonable assurances of financial stability for donors. This is classified as net assets with donor restrictions; and (2) board-designated endowment (the reserve) also known as a quasi-endowment. This is classified as net assets without donor restrictions. Use of endowment: the endowment's principal ("principal") is defined as the original corpus placed in the endowment upon creation, plus the value of additional assets that have been contributed to the endowment since its inception. Cscp is prohibited from withdrawing any principal in the endowment. Endowment funds may be used to provide income to support ongoing operations in accordance with cscp's endowment fund and reserve fund policies (the "endowment policies"). The endowment's value for withdrawals of funds to support ongoing operations shall be determined annually as a trailing average of the market value of the endowment over the preceding 12 quarters. Any withdrawal of funds shall not exceed 5% of the market value of the endowment. Use of reserve: to provide income to support cscp, the board is authorized to withdraw funds at any time from the reserve, by action of its executive committee, for application to any and all cscp needs. As the reserve is a board-designated quasi endowment fund, and not a true endowment, the executive committee is authorized to spend principal and income.”

“Cscp is exempt from federal income tax under internal revenue code section 501(c)(3). Cscp considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. Cscp evaluates its uncertain tax positions using the provisions in conformity with u.s. Gaap. These standards require management to perform an evaluation of all income tax positions taken, or expected to be taken in the course of preparing cscp's tax returns. Management believes the tax positions taken more likely than not will be sustained under examination by the applicable tax authorities. Examples of tax positions taken include the tax-exempt status of cscp, and various positions related to the potential sources of unrelated business taxable income. Since matters are subject to some degree of uncertainty, there can be no assurance that cscp tax returns will not be challenged by the taxing authorities and that cscp will not be subject to additional tax, penalties, and interests as a result of such challenge.”