(y IN1"ERNAL REVENUE "P.O.BOX2508 CINCINNATI, OH

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1 -,! (y IN1"ERNAL REVENUE "P.O.BOX2508 CINCINNATI, OH Date: SERVICE MAR 2 4 'l.oo~ C/O SCOTT W HANSEN NINE EXCHANGE PL STE 801 SALT LAKE CITY, UT DEPARTMENT OF THE TREASURY Emplyer Identificatin Numbe~: DLN: Cntact Persn: COLLEEN E. PROCTOR ID# Cntact Telephne Number: (877) Accunting Perid Ending: December 31 Public Charity Status: 170 (b) (1) (A) (vi) Frm 990 Required: Yes Effective Date f Exemptin: April 14, 2005 Cntributin Deductibility: Yes Advance Ruling Ending Date: De'cember 3l, 2009 MAR Dear Applicant: We are plea-sed t infrm yu that upn r'eview f yur applicatin fr tax exempt status we have determined that yu are exempt frm\federal incme tax under sectin 501 (c) (3) f the Internal Revenue Cde. Cntributins t yu are deductible under sectin 170 f the Cde. Yu are als qual~fied t receive tax deductible bequests, devises, transfers r gifts under sectin 2055/ 2106 r 2522 f the Cde. Because this letter culd help reslve any questins regarding yur exempt status, yu s,huld keep it in yur permanent recrds,. Organizatins exempt under sectin 501 (c) (3) f the as' either public charities r private fundatins ~ perid, yu will be treated as a public charity. begins with the effective date f yur exemptin ending date shwn in the heading f the letter". Cde are further classified During yur advance ruling Yur advance ruling perid and ends with advance ruling Shrtly. befre the end f yur advance ruling perid, we will send yu Frm 8734; Supprt Schedule fr Advance Ruling Perid. Yu will have 90 days after the end f yu~ advance ruling perid t, return the cmpleted frm. We will then ntify yu/ in writing, abut yur public "charity statu~. Please see englsed Infrmatin fr Exempt Organizatins Under Sectin 501 (c) (3) fr sme helpful infrmatin abut yur respnsibilities as an exempt rganizatin. Infrmatin submitted with yur applicatin indicates yu may engage'in lbbying activities. Sectin 501 (c) (3) f the Cde specifically prhibits lbbying as a substantial part f yur activities. If yu d nt wish t be subject t the test f substantiality under sectin 501 (c) (3), yu may elect t Letter 1045 (DO/CG)

2 () be cvered Under the prvisins. f sectin 501 (h) f the Cde by filing Frm.5768, Electin/Revcatin f Electin by an Eligible Sectin 501(c) (3) Organizatin t Make Expenditures t Influerice Legislatin..Sectin 501 (h) establishes ceiling amunts fr lbbying expenditures. $incerely, ~~f~c?'> Lis G. '4erner Directr l Exempt Organizatins Rulings a~d Agreements Enclsures: Infrmatin fr Organizatins. Exempt Under Sectin 501 (c) (3) Statute. Extensin Le.tter (DO/CG)

3 , INFORMATION FOR ORGANIZATIONS EXEMPT UNDER SECTION 501(c) (3) WHERE T.O GET FORMS AND HELP Frms and instructins may be btained by calling tll free , thrugh the Internet Web Site at and als at lcal tax assistance centers. Additinal infrmatin abut any tpic discussed belw may be btained thrugh ur custmer service functin by calling tll free NOTIFY US ON THESE MATTERS If yu change yur name, address I purpses, peratins r surces f financial supprt, please infrm ur TE/GE EO Determinatins Office at the fllwing address: lnt ernal Revenue Service, P.O. Bx 2508,' Cincinnati, Ohi If yu amend yur rganizatinal dcument r by-laws, r disslve, prvide "the EO Determinqtins Office with a cpy f the amended dcuments. Please use yur emp~yer identificatin number n all returns yu file and in all crrespride~ce with'the Internal Revenue Service. FILING REQUIREMENTS In yur exemptin letter we indicated whether yu must file Frm 990, Return f Organizatin Exempt Frm Incme Tax. Frm 990 (r Frm 990-EZ) is filed with the Ogden Submissin Prcessing Center, Ogden UT Yu are required t file a Frm 990 nly if yur grss receipts are nrmally mre than $25,000.. If yur grss receipts are nrmally between $25,000 and $100,000, and yur ttal assets are less than $250,000, yu may file Frm 990-EZ. If yur grss receipts are ver $100,000, r yur ttal assets are ver $250,000, yu must file the cmplete Frm 990. The Frm 990 instructins shw hw t cmpute yur "nrmal!! receipts. Frm 990 Schedule A is required fr bth Frm 990 and Frm 990-EZ. If a return is required, it must be filed by the 15th day f the fifth mnth after the end f yur annual accunting perid. There are penalties fr failing t timely file a cmplete return. Fr additinal infrmatin n penalties, see Frm 990 instructins r call ur tll free number. If yur receipts are belw $25,000, and we send yu a Frm 990 Package, fllw the instructins in the package n hw t cmplete the limited return t advise us that yu are nt required t file. If yur exemptin letter states that yu are nt required t file Frm 990, yu are exempt frm these requirements. Letter 1045 (DO/CG)

4 -4- UNRELATED BUSINESS INCOME TAX RETURN If yu receive mre than $1,000 annually in grss receipts frm a regular trade r business yq. may be subject t Unrelated Business Incme Tax and required t file Frm 990-T, Exempt Organizatin Business Inc9rne Tax Return. There " are several exceptins t this tax. 1. Incme yu receive frm the perfrmance "f yur exempt activity is nt unrelated business incme. 2. Incme frm fundraisers cnducted by vlunteer wrkers, r where dnated merchandise is sld, is nt unrelated business incme. 3. Incme frm rutine investments such as certificates f depsit, savings accunts I r stck dividends is usually nt unrelated business incme. There are special rules fr incme derived frm real estate r ther.investments purchased with brrwed funds. This incme is called IIdebt financed ll incme. Fr additinal infrmatin regarding unrelated business incme tax see Publicatin 598, Tax n 'Unrelated Business Incme f Exemp.t Organizatins, r call ur tll free number shwn abve. PUBLIC INSPECTION OF APPLICATION AND INFORMATION RETURN Yu are required t make yur annual infrmatin return, Frm 990 r Frm 990-EZ, available fr public inspectin fr three years after the later f the due date f the return, r the date.the return is filed. Yu are als required t make available fr public inspectin yur exemptin applicatin/ any supprting dcuments, and yur exemptin letter. Cpies f these dcuments are als required t be prvided t any individual upn written r in persn request withut charge ther than reasnable fees fr cpying and pstage. Yu may fulfill this requirement by placing these dcuments n the Internet. Penalties may be impsed fr failure t cmply with these requirements. Additinal infrmatin is available in Publicatin 557/ Tax-Exempt Status fr Yur Organizatin, r yu. may c.all ur tll free number shwn abve.. FUNDRAISING Cntributins t yu are deductible nly t the extent that they are gifts and n cnsideratin is received in return. Depending n the circumstances, ticket purchases and similar payments in cnjunctin wi~h fundraising events may nt qualify as fully deductible cntributins. CONTRIBUTIONS OF $250 OR.MORE Dnrs must have written substantiatin frm the charity fr any charitable cntributin f $250 r mre. Althugh it is the dnr1s respnsibility t btain written substantiatin frm the charity/ yu ca~ assist dnrs by prviding a written statement listing any cash cntributin r describing any Letter l045 (DO/CG)

5 -5- dnated prperty. This written statement must be prvided at the time is n prescribed frmat fr the written statement. electrnic ( ) r cmputer-generated frms are f the cntributin. There Letters, pstcards and acceptable. The dnr is respnsible fr the valuatin f dnated prperty.' Hwever, yur written statement must prvide a sufficient descriptin t supprt the dnrrs cntributin. Fr additinal infrmatin regarding dnr substantiatiti t see Publicatiqn 1771, Charitable Cntributins - Substantiatin and Disclsure Requirements. Fr infrmatin abut the valuatin f dnated prperty, see Publicatin 561, Determining the Value f Dnated Prperty. CONTRIBUTIONS OF MORE THAN $75 AND CHARITY PROVIDES GOODS OR SERVICES Yu must prvide a written dis'clsure statement t dnrs wh receive gds r services frm yu in exchange fr cntributins in' excess f $75. Cntributin deductins are allwable t dnrs nly t the extent their cntributins exceed the value f.the gds r services regeived in exchange. Ticket purch~ses and similar payments in c~njunctin with fundraising events may nt necessarily qualify as fully deductible cntributins, depending n the circumstances. If yur rganizatin cnducts fundraising events such as benefit dinners, shws, membership drives, etc., whe.re smething f value is received, yu are. required t prvide a written: statement,infrming dnrs f the fair market. value f the specific items r services yu prvided in exchange fr cntributins f mre than $75. Yu 'shuld prvide the written disclsure statement in advance f any event,. determine the fair market value f any benefit received, determine the amunt f the cntributin that is dedu~tible, and' state this infrmatin in yur fundraising materials such as slicitatins, tickets, and receipts. The amunt f the cntributin that is de.ductible is limited t the excess f any mney (and the value f any prperty ther than mney) cntributed by the dnr less the value f gds r ser~ices prvided by the charity. Yur disclsure statement shuld be made, n later than, at the time payment is received.' Subject t certain exceptins, yur disclsure respnsibility applies t any fundraising circumstances where each cmplete payment, including the cntributin prtin, exceeds $75. Fr additinal infrmatin, see Publicatin 1771 and Public.atin 526, Charitable Cntributins. EXCESS BENEFIT TRANSACTIONS Excess benefit transactins are gverned by sectin 4958 f the Cde. Excess benefit transactins invlve situatins. where a sectin 501(c) (~) rganizatin prvi~es an unreasnable benefit t a persn wh is in a psitin t exercise substantial influence ver the rganizatin1s affairs. If 'yu believe there may,be ~n excess benefit transactin invlving yur rganizatin, yu shuld reprt the transactin n Frm 990 r 990-EZ. Additinal infrmatin can be fund in the instructins fr Frm 990 and Frm 990-EZ, r yu may call ur Le.tter 1045 (DO/CG)

6 T -6- tll free number t btain additinal infrmatin n hw t crrect and reprt this transactin. EMPLOYMENT TAXES If yu have emplyees/ yu are subject t incme tax withhlding and the scial security taxes impsed under the Federal Insurance Cntributin Act (FICA)'. Yu are required t withhld Federal incme tax frm yur emplyee's wages and yu are required t pay FICA n each emplyee wh is paid mre than $100 in wages during a calendar year. T knw hw much incme tax t withhld/ yu shuld have a Frm W-4/ Emplyeets Withhlding Allwance Certificate, n file fr each emplyee. Organizatins described in sectin 501 (c) (3) f the Cde are nt required t pay F~deral Unemplyment Tax (FUTA). Emplyment taxes are reprted n Frm Emplyer's Quarterly Federal Tax Re.turn. The requirements fr withhlding,,depsiting, reprting and paying emplyment taxes are explained in Circular E, Emplyer's Tax Guide, (Publicatin 15), and Emplyer's Supplemental Tax Guide, (Publicatin IS-A). These public"atins explain yur tax respnsibil,i ties as an emplyer. CHURCHES Churches may,emply bth ministers and church wrkers. Emplyees f churches r church-cntrlled rganizatins are subject t incme tax"withhldingi but may be exempt frm FICA taxes. Churches are nt r~quired t pay FUTA ta~. In additin, althugh ministers are generally cmmn law emplyees,' th~y are nt treated as 'emplyees fr emplyment tax purpses. These special emplyment tax rules fr members f the clergy and religius wrkers are explained in Publicatin 517, Scial Security and Other Infrmatin fr Members,f th~ Clergy and Religius Wrkers. Churches shuld als c"nsult Publicatins 15 and 15-A. Publicatin 1828, Tax Guide fr Churches and Religius Organizatins, als discusses the varius benefits. and respnsibilities f these rganizatins under Federal tax law. PUBLIC CHARITY STATUS Every rganizatin that qualifies fr -tax-exemptin as an rganizatin described in sectin 501 (c) (3) is a private fundatin unless it falls int ne f the categries specifically excluded frm the definitin f that term [referred t in sectin 509 (a) (1), (2), (3), r (4) 1. In effect, the definitin divides these rganizatins int tw classes, namely private fundatins and public charities. Public charities are generally thse that either have brad public supprt r actively functin in a supprting relatinship t thse rganizatins. Public charities enjy several advantages ver private' fundatins. There are certain excise taxes that apply t private fundatins but nt t public charities. A private fundatin must als annually file Frm ".9 90-PF, Return f Private Fundatin, even if it had n revenue r expenses. Letter 1045 (DO/CG)

7 The Cde sectin under which yu are classified as a public charity is shwn in the heading f yur exemptin letter. This determinatin is based n th~ infrmati~ yu prvided and the request yu made n yur Frm 1023 a1?plicatin. Please refer t,publicatin 557 fr additinal, infrmatin abut public charity status. GRANTS TO INDIVIDUALS The fllwing infrmatin is prvided fr rga~izatins that make grants t individuals. If yu begin an individual grant prgram that was nt described in yur exemptin applicatin l please infrm us abut the prgram. Funds yu distrib~te t an individual as a grant must be made n a true charitable basis in furtherance f the purpses fr which yu are rganized. Therefre/ yu shuld keep adequate recrds and case histries 'that demnstrate that grants t individuals serve yur charitable purpses. Fr example, yu shuld be in a psitin t substantiate the basis fr grants awarded t individuals t relieve pverty r under a schl,arship r educatin lan prgram. Case histries regarding grants t individuals shuld shw,names, addresses, purpses f grant's, manner f selectin, and relatinship (if any) t members/.fficers, trustees, r dnrs f funds t yu. Fr mre infrmatin n the exclusin f schlarships frm incme by an individual recipient, see Publicatin 520, Schlarships and Fellwships. Letter 1045 (DO/CG)