SAE Foundation Annual Report 2016 - 26

SAE Foundation
Notes to the Financial Statements

1. Organization

2. Summary of Significant
Accounting Policies

Nature of Organization
SAE Foundation (the Foundation)
is organized as a division of SAE
International (SAE), a not-forprofit
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
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.
26 | 2016 Annual Report

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 is disclosed in
Note 7.
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 amounts of revenues
and expenses during the reporting
period. Actual results could differ
from those estimates.
Cash and Cash Equivalents
Substantially all of the
Foundation's cash is on deposit
at one bank. From time to time,
the balance may be in excess of
the Federal Deposit Insurance
Corporation insurance limit.
Management believes it has placed
its cash with high credit quality
financial institutions and does
not believe it is exposed to any
significant credit risks.

Pledges Receivable
Unconditional promises to give are
recognized as revenues or gains
in the period received as assets,
decreases of liabilities, or expenses
depending on the form of the
benefits received. Conditional
promises to give are recognized
when the conditions on which they
depend are substantially met.
Pledges receivable are stated at
the amount management expects
to collect from outstanding
balances. Management has
established an allowance for
uncollectible pledges based on
its evaluation of the individual
pledges. See Note 4.
Investments
Investments are presented at fair
value as measured by quoted
market prices. Those investments
SAE Foundation Annual Report 2016

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