SAE Foundation Annual Report 2011 - 39

SAE FOUNDATION
Notes to the Financial Statements Note 1 - Summary of Significant Accounting Policies A. Nature of Organization

SAE Foundation (the Foundation) is organized as a division of SAE International (SAE), a not-for-profit organization incorporated under the laws of Pennsylvania. The Foundation was created to facilitate financial contributions from members and others to provide an additional source of income, beyond those sources normally available to SAE, for activities in support of SAE’s purpose, missions and goals. The Foundation has also adopted a Financial Management Policy so that the Foundation can maintain fiscal stability and viability, be self-sustaining and have the financial competency to meet its obligation to provide the required funding for programs as well as to pay for its fundraising and administrative costs. The Foundation operates under the direction of a Board of Trustees, with administrative support provided by SAE, and reports directly to the SAE Board of Directors. The Internal Revenue Service has granted SAE tax-exempt status under Section 501(c)(3) of the Internal Revenue Code and SAE is not a private foundation under Section 509(a)(1). As a division of SAE, the activities of the Foundation are included in SAE’s Form 990. SAE Foundation Canada is organized as a separate entity under the laws of Canada. It was formed to manage the activities, missions and goals in support of SAE in Canada, which requires SAE Foundation Canada’s solicitation and receipt of specific funding from individuals, public or private corporations, foundations, or government agencies. SAE Foundation Canada operates under the direction of a Board of Directors. The relationship between the Foundation and SAE Foundation Canada does not meet the criteria requiring consolidation in the accompanying financial statements. B. Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Net asset classifications and changes in each of those classes are reported in the financial statements, and detailed information regarding the purpose of temporarily and permanently restricted net assets are disclosed in Note 5. C. Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates.

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SAE Foundation Annual Report 2011

Table of Contents for the Digital Edition of SAE Foundation Annual Report 2011
