Investor Presentaiton

University of South Carolina Upstate Foundation and Supporting Organization Notes to Consolidated Financial Statements Notes to Consolidated Financial Statements 1. Description of Organization and Summary of Significant Accounting Policies Organization The University of South Carolina Upstate Foundation (the "Foundation") was incorporated under the laws of South Carolina to operate as a permanent foundation to accept gifts for charitable, benevolent, cultural and educational purposes for the exclusive use and benefit of the University of South Carolina Upstate (the “University"). The University of South Carolina Upstate Foundation Capital Development Foundation ("CDF") was formed in 2011 to accept real property donated to the University, serve as the purchasing agent for property on behalf of the University that is integral to the growth of the campus, and to manage property under leasing agreements to the University. In 2020, CDF became a supporting organization of the Foundation and is known collectively as the University of South Carolina Upstate Foundation and Supporting Organization (the "Organization"). The Organization's activities are overseen by a self-perpetuating, independent board of directors. Principles of Consolidation The accompanying consolidated financial statements include the consolidated accounts of the Foundation and CDF. All material intercompany accounts and transactions have been eliminated in consolidation. Basis of Accounting The consolidated financial statements have been prepared using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recorded as earned and expenses are recorded at the time the liability is incurred. Basis of Presentation Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor- imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Net Assets without Donor Restrictions - Net assets that are not subject to donor-imposed restrictions or otherwise limited by contractual agreements with outside parties and may be expended for any purpose by the Organization. Net Assets with Donor Restrictions - Net assets whose use by the Organization is subject to donor-imposed stipulations. Some donor restrictions are temporary in nature; such restrictions may be fulfilled by actions of the Organization pursuant to those stipulations or by the passage of time. Other donor restrictions are perpetual in nature, where the donor has stipulated the funds be maintained in perpetuity. Use of Estimates The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Methods Used for Allocation of Expenses Among Programs and Supporting Services The Organization allocates expenses on a functional basis among its various programs and supporting services and uses a direct allocation of expenses. 7

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