Investor Presentaiton

University of South Carolina Upstate Foundation and Supporting Organization Notes to Consolidated Financial Statements Cash and Cash Equivalents Cash and cash equivalents include certain investments in highly liquid debt instruments with original maturities of three months or less. The Organization maintains bank accounts at various financial institutions covered by the Federal Deposit Insurance Corporation ("FDIC"). At times throughout the year, the Organization may maintain bank account balances in excess of the FDIC insured limit. It is management's opinion that the Organization is not exposed to any significant credit risk related to cash. Promises to Give The Organization records unconditional promises to give as receivables and revenues within the appropriate net assets category. Revenues are considered to be available for unrestricted use unless specifically restricted by the donor. Contributions that are expected to be collected within one year are recorded at net realizable value. Contributions that are expected to be collected in future years are recorded at fair value at the date of the promise. The fair value is computed by using the present value of their estimated future cash flows, using a risk- free rate of return appropriate for the expected term of the promise to give. Amortization of the discounts is recorded as contribution revenue in accordance with donor restrictions on the contributions. An allowance for uncollectible promises to give is determined based on collection experience in prior years and management's analysis of specific promises made. Conditional promises to give are recognized when the conditions on which they depend are substantially met. There were no conditional promises to give at June 30, 2022 and 2021. Annuity Under the charitable gift annuity agreement, the Organization agrees to pay an annuity in consideration for a specific gift. For the charitable gift annuity, the asset is recorded at fair value when received on the consolidated statement of financial position with a liability recognized equal to the present value of amounts which the Organization expects to pay the annuity beneficiary. At June 30, 2021 there was one annuity, which was calculated using a discount rate of 2%. During 2022, this annuity was transferred to a different beneficiary so there is no annuity receivable and associated obligation at June 30, 2022. Investments The Organization's investments are recorded at fair value on the consolidated statement of financial position. The Organization reports investment income and gains and losses on investments and increases or decreases in net assets without donor restrictions unless a donor or law restricts their use. Investments are managed to achieve maximum long-term total return. Therefore, the distinction between dividend and interest income and realized gains is not considered significant. The board has authorized a policy permitting the distribution of amounts not exceeding 4% of the prior 12-quarter rolling average Unitized Market Value of the long-term pooled investment portfolio. This policy is designed to maintain the long-term purchasing power of each fund. In July 2022, the policy was updated to 3%-5% of the prior 12-quarter rolling average Unitized Market Value of the long-term pooled investment portfolio. Income Taxes The Organization has been granted exemption from income taxes under Section 501(c)(3) of the Internal Revenue Code and, accordingly, no provision for income tax is recorded in the accompanying consolidated financial statements. The Organization has determined that it does not have any unrecognized tax benefits or obligations as of June 30, 2022. 8

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