2024-11-12T19:07:46-07:00 2022-12-31 990 2022-01-01 300346629 THE FOUNDATION THEF 3216558188 PO Box 101422 Palm Bay FL 32910 Nate Carr Founder 3216558188 2024-11-12 1 2022 2024-10-15 13:58:12Z X X Nate Carr PO Box 101422 Palm Bay FL 32910 19287 0 X thefoundation.world X 2006 CO THE FOUNDATION's intrinsic purpose is to alleviate all preventable pain and suffering throughout the world and empower the disadvantaged through self-sufficiency. 1 0 0 1 0 0 17133 18420 1000 1200 32 53 -1987 -386 16178 19287 95 3155 0 0 5650 1702 0 0 80 25482 30364 31227 35221 -15049 -15934 334927 463161 21731 261353 313196 201808 THE FOUNDATION is the first logic-based organization fundamentally designed to save the world. Specifically, our stated purpose is to end all preventable ailments throughout the world by giving every individual an equal opportunity to realize their maximum potential through self-sufficiency. Everything we do is guided by The Pono's 5 Elements of Wisdom: Logical Perseverance; Logical Empathy; Perpetual Self-Improvement; The Search for Truth; Enlighten Future Generations. These guiding principles allow us to catalyze empowerment by means of self-sufficiency, which is the key to enabling the oppressed, exploited, and disadvantaged to develop the cognitive competencies needed to save themselves. Achieving our grandiose vision will result in relief of the impoverished, the equalizing of the underprivileged, the diminution of the burdens of government, the elimination of societal deterioration, and allow for sustainable population growth. 0 0 8114 3125 0 AMENDED: Empowering Self-sufficiency: While in Mkuranga, Tanzania, THE FOUNDATION invested in local small businesses (less than $500 each). Most of these entrepreneurs had proven their character and competence. We invested in a tailor who performed her craft well and displayed admirable honesty. We invested in a carpenter who excelled at his craft. We also gave him a donation of hand-planes valued at $1,390. We invested in a vegetable farmer who exhibited an assertive entrepreneurial spirit even though she was not able to read or write. We invested in a bajaji driver who is the embodiment of an honest, intelligent, hardworking proprietor. Lastly, we gave a living stipend to a random, widowed woman outside of Mkuranga who was living with at least one young child in a run-down house with no doors. THE FOUNDATION contracted local service professionals in Tanzania at above market wages including Occupancy Services (caretaker, welder), Professional Fees (bajaji driver, locksmith, sales, tailor) and Security. Direct Giving Grants - $3,125; Occupancy Services - $1,202; Professional Fees - $420; Security - $3,367. 3368 0 0 AMENDED (immaterial): Community Safety: THE FOUNDATION contracted out 3 local security professionals to perform nightly patrols around the neighborhood of the office in Mkuranga, Tanzania (the office in now closed). Their wages are above market rates to enable them to achieve a greater level of financial security. $3,368 for Community Safety is 50 percent of total security costs. 1490 0 0 AMENDED: Empowering Self-sufficiency - The Endowment: This FOUNDATION Solution is a quasi-endowment established by the Founder; it is a self-sufficient fund(s) that exists as a learning platform for the disadvantaged to empower their financial self-sufficiency. The Endowment may take years (even decades) to properly establish itself. Eventually, excess returns will be used to fund program services. Expenses: Banking Fees - $8; Trading Service Fees - $1,482. 960 30 0 AMENDED: Saving Children: THE FOUNDATION had some remaining expenses from the unsuccessful attempt to start a children's home. These expenses were predominately rent and caretaker expenses. Additional costs stemmed from the selling of the 4x4 vehicle that was purchased by the Founder with his private money and used by THE FOUNDATION in Tanzania. Expenses: In-kind Education Grant - $30; Insurance - $325; Travel - $605. Additional Travel Expenses were reclassified as Management Expenses related to the embezzlement investigation. 52 0 0 AMENDED: Misc Taxi Services - $49; Worker Meals - $3 1012 30 0 13984 1 1 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 1 0 0 0 0 1 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 X Nate Carr 3216558188 PO Box 101422 Palm Bay FL 32910 X Nate Carr Founder 40 X X 0 0 0 0 0 0 0 0 0 0 0 X 0 0 0 0 0 18420 1420 18420 Rent Charged to Officers and/or Employees 531110 1200 1200 0 0 The Endowment 523910 0 0 0 0 0 0 0 0 1200 53 53 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -386 -386 0 0 -386 19287 867 0 0 X 0 0 0 0 3155 3155 0 0 0 0 0 0 0 0 0 0 1699 0 1699 0 0 0 0 0 3 3 0 0 0 0 0 0 0 0 0 0 20 0 20 0 47 0 47 0 0 0 0 0 0 0 0 0 0 0 7155 7155 0 0 96 0 16 80 1552 0 1552 0 1318 0 1318 0 0 0 0 0 4418 1202 3216 0 7841 654 7187 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 325 325 0 0 Embezzlement by Salima [Salma] Msham Munde 6091 0 6091 0 Endowment Service Fees 1490 1490 0 0 CO Govt Fee 10 0 10 0 Adjustments (rounding) 1 0 1 0 0 0 0 0 35221 13984 21157 80 X 3244 21435 94109 143452 0 0 0 0 0 0 0 0 0 0 0 0 0 0 161449 0 161449 237574 136825 334927 463161 0 0 0 0 0 0 0 0 0 0 21731 261353 0 0 0 0 21731 261353 X 75622 64983 0 0 237574 136825 313196 201808 334927 463161 X -15934 0 0 0 0 -95454 X 0 0 0 X 747 17133 18420 36300 0 0 0 0 0 0 0 0 0 0 747 17133 18420 36300 35540 760 0 32 53 85 0 0 0 0 0 0 0 0 36385 1200 X Schedule A, Part II, Line 6(f) AMENDED: An important fact to be considered is the declaration of a national state of emergency by the president of the United States on 13 March 2020. Most countries throughout the world also implemented their own strict emergency regulations and mandates. During this time, travel and commerce were drastically constricted, if not completely halted. Tens of thousands, if not millions, of organizations (mostly small businesses) shuttered their doors permanently. Transactions with entities (including government bodies) became exceptionally difficult on a good day. Tanzania was not our original choice, but due to the fact that our intended destination country, Malawi (The Warm Heart of Africa), closed its borders and implemented exceptionally irrational, Draconian measures, we compromised and attempted to do our charitable work in Tanzania. We would NOT have chosen Tanzania if not for the world response to the common coronavirus. The U.S. state of emergency wasn't lifted until 10 April 2023. No organization, especially a start-up organization, can be legally expected to satisfy strict time constraints during a declared national state of emergency; therefore, the years 2021 & 2022, as well as the first half of 2023, should be disregarded when performing public support calculations. Schedule A, Part II, Line 10 AMENDED: Endowment (Other Income) had total mark-to-market losses of $(99,322). Income from The Endowment is now classified as "Other Income". Because The Endowment is managed completely by volunteers and exists to further the exempt goals of THE FOUNDATION, it is classified as related support. Due to the fact that it is a regularly carried on "business", the assets sold are not capital assets. SOURCE: "Property used in the trade or business of a taxpayer of a character which is subject to the allowance for depreciation provided in section 167 and real property used in the trade or business of a taxpayer is excluded from the term capital assets." [1.1221-1(b)] Schedule A, Part II, Line 11(f) AMENDED: An important fact to be considered is the cumulative losses of The Endowment. The recommendations from Schedule A, Section B, Line 9 have been applied to Line 10 by entering zero for losses; however, it is a well established precedence that trading losses can be carried over from previous years using mark-to-market accounting procedures. It is unreasonable to prohibit applying these principles to the trading losses of The Endowment. If proper mark-to-market rules were followed, cumulative total losses for The Endowment were $(149,151). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 237574 0 -99322 0 1482 0 136770 277000 12145 -49829 0 1742 0 237574 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 38032 38032 0 123291 0 123291 0 0 0 0 0 125 0 125 0 1 0 1 161449 The Endowment 136770 Member Assets 55 136825 Schedule D, Part V, Line 1g AMENDED: Due to exploitative practices by Etrade, money reserved for the endowment was moved to another account, but due to an accounting oversight, was improperly classified as negative contributions. End of year balance was increased by $50,000 and Endowment specific interest/dividends of $69 were properly added to line 1c, reducing contributions to zero. Schedule D, Part V, Line 4 AMENDED: Empowering Self-sufficiency - The Endowment: This FOUNDATION Solution is a "quasi-endowment" established by the Founder; it is a self-sufficient fund(s) that exists as a learning platform for the disadvantaged to empower their financial self-sufficiency. The initial fund is an actively managed vehicle that attempts to maximize alpha using a proprietary trading methodology. The Endowment may take years (even decades) to properly establish itself. Eventually, excess returns will be used to fund program services, which directly furthers THE FOUNDATION's exempt purposes by teaching self-sufficiency. Schedule D, Part VI, Line 1d AMENDED (immaterial): $125 in Other Fixed Assets was reclassified as Equipment. 1 Sub-Saharan Africa 0 4 Program Services AMENDED: Community Safety; Economic Empowerment; Saving Children (discontinued) 17625 Sub-Saharan Africa 0 0 Grantmaking AMENDED: Empowering Self-sufficiency - Direct Giving Investment Grants to 6 separate individuals/families - ($3,125); Saving Children - $30 in-kind grant to a local school. 3155 0 4 20780 0 0 0 0 0 0 Schedule F, Part I, Line 2 AMENDED (immaterial): Due to the closing of our office in Mkuranga, we are unable to directly monitor the use of the one-time investments/grants we made in Tanzania. The head of security, Mr. Shempemba, is familiar with most of the recipients; he sends updates (including pictures). He uses an older-style flip-phone and does not have the means and/or expertise to purchase the technology required to submit video online. In anticipation of these obstacles, we limited the cash grants/investments to less than $500 per family/business. The Founder personally participated in the delivery of all grants, ensuring that all intended grantees received the appropriate funds. Making additional unmonitored grants/investments is not currently part of the future plans of THE FOUNDATION. Nate Carr Founder Working capital to fund program expenses in Tanzania X 21731 21353 0 1 1 Elaine Carr Related to Founder Purchase and renovate real estate property X 240000 240000 0 1 1 261353 Schedule L, Part II The loaned funds from Elaine Carr are a private mortgage. The interest rate is 0%. Ms. Carr must be paid in full before any liquidation proceeds of the mortgaged properties are used to pay any other creditors who may exist (including the Founder). Form 990, Header, Line B AMENDED: This 2022 990 form is being amended to reflect new information, which changes how we interpret the Code of Federal Regulations, Chapter 26, 1.509(a)(3) and related provisions of the regulations. The substantial contribution by the Founder was assumed to be the first of similar annual donations; however, it has become clear through the past couple years that this donation was abnormally unusual in its amount. Furthermore, the inclusion of this contribution in the proscribed support tests would have a severely adverse affect on the status of THE FOUNDATION. Given that The Endowment has always been a related program service activity (actively managed by the Founder, who will always be an unpaid volunteer, as is mandated in the governing documents of THE FOUNDATION), gross proceeds from sales of securities from the actively traded brokerage accounts are no longer defined as "gross receipts". Instead, trading gains (losses) are reported after cost basis considerations. The result is an almost complete elimination of related activity gross receipts ($1.33M to $1,200), and since The Endowment had mark-to-market realized losses of $(99,322), "Other Income" remained unchanged at zero. After all reclassifications and corrections, net assets of the organization was increased by an immaterial 1.2% to $201,808. In Form 990, Part III, Line 4a, some expenses were reclassified. In Form 990, Part III, Line 4c, The Endowment was reclassified and direct gifts were properly recognized as grants. In Form 990, Part III, Line 4, the majority of travel expenses were reclassified under management expenses related to the embezzlement investigation. Miscellaneous Revenue was amended to more properly include currency losses of $386 on Form 990, Part VIII, 11e. In Form 990, Part IX, Line 7, instead of deducting embezzled wages from Wages, they were deducted from retained earnings and included in Other Expenses. In Form 990, Part IX, Line 16, $4,419 in Occupancy Expenses were capitalized and reclassified as Fixed Property Assets (Schedule D was updated to recognize this change). In Schedule A, due to the reclassifications described above, Public Support was reduced from $8,276 to $760. Total Support was reduced from $413,429 to $36,385. In Schedule D, Part V, money reserved for the endowment was moved to another account, but due to an accounting oversight, was improperly classified as negative contributions. In Schedule F, items were better classified and total expenditures were recalculated to include all expenses (including management & general). In Schedule L, the outstanding loan from the Founder was increased by 9% due to previous year adjustments (see form 990 for tax-year 2021) and currency adjustments. In addition to the above changes, we are updating contact information and the mission statement as well as correcting immaterial errors in Form 990, part III, 4b; Form 990, Part IV, Line 11; Form 990, part VII, Section A; and Schedule D, Part VI, 1d. Form 990, Part VI, Section A, Line 5 During the previous year, the Founder became aware of embezzlement allegations. The Founder flew to the inactive office in Mkuranga, Tanzania to investigate. With the assistance of Mr. Shempemba (the head of security) and Mr. Jamal (bajaji driver extraordinaire), an amateur sting operation was initiated to catch the embezzler, Salma Munde (former executive assistant to the Founder). After being caught red-handed in her deception, she admitted her crimes. She was immediately dismissed and all keys and FOUNDATION property was confiscated from her persons. The Founder will strive to never trust anyone again. The most important lesson learned is to only select employees/volunteers who prove themselves worthy of the privilege to be part of THE FOUNDATION. Although completely leaving Tanzania was considered, the Founder decided it would be unfair to those who committed no wrong; therefore, we continue to support neighborhood security in the Ngunguti neighborhood in Mkuranga, Tanzania. Form 990, Part VI, Section B, Line 11b The Founder and acting Director of the Board of Trustees prepared form 990 independently. The final version of form 990 was sent to all board members for unofficial review. No official review was or will be conducted. Form 990, Part VI, Section C, Line 19 Stakeholders and/or the public were given copies of the relevant documents and/or these documents were made available upon request. Form 990, Part VIII, Line 2a - 2e AMENDED: The Endowment is a self-sufficient fund(s) that exists as a learning platform for the disadvantaged to empower their financial self-sufficiency. After exhaustive tax law research, it has been decided that part VIII, "Total Revenue" is to be calculated by subtracting the cost basis and sales expenses from the gross proceeds of the securities sales. Financial instruments in this account are actively traded and should not be classified as "investments", nor should the gross proceeds be classified as "gross receipts". For the current tax year, The Endowment received net proceeds of $435,704 from the sale of securities, with $519,985 in mark-to-market costs, resulting in mark-to-market realized losses (total revenues) of $(84,379). Due to the inadequacies of the tax code and/or the online form from form990.org (Civic Leadership Project), we are disallowed from entering a negative revenue number and there is no area within Program Service Revenue where we can enter a cost basis; therefore, zero was entered. The Founder inquired about the Civic Leadership Project's interpretation of the tax code; however, they were dismissive and belittling. CITED SOURCE #1: It is well established in the Code of Federal Regulations (CFR) that certain property and/or asset transactions classified as "gross" are to have the cost basis subtracted from the total transaction proceeds. In section 448, Methods of Accounting in General, it is stated, "With respect to sales of capital assets as defined in section 1221, or sales of property described in 1221 (2) (relating to property used in a trade or business), gross receipts shall be reduced by the taxpayer's adjusted basis in such property." [26 CFR 1.448-1T(f)(2)(iv)] CITED SOURCE #2: In addition, Section 1244 states, "gross receipts from the sales or exchanges of stock or securities shall be taken into account only to the extent of gains therefrom." [26 CFR 1.1244(c)-1(e)(1)(i)(a)] Form 990, Part VIII, Line 11e AMENDED: Estimated realized currency losses of $386. Form 990, Part IX, Line 11g AMENDED (immaterial): Total Security Fees of $6,735 (50% Community Safety=$3,368); Special Assistance to the Founder of $393; Locksmith - $4; Sales - $21; Tailor - $1. Form 990, Part IX, Line 16 AMENDED: $4,419 in taxes and fees were reclassified from Occupancy Expenses to asset adjustments to property. Form 990, Part IX, Line 17 AMENDED: The travel expenses pertaining to the Embezzlement Investigation were reclassified as Management Expenses. Travel Expenses include: Embezzlement Investigation - $7,187; Saving Children - $605; Misc Taxi Services - $49. Form 990, Part X, Line 13 AMENDED: Proceeds from the sale of securities within The Endowment are no longer classified as 'Gross receipts from related activities' in Schedule A. See previous notes. Form 990, Part XI, Line 9 AMENDED: The Endowment's unrealized trading losses were $(15,321). Realized mark-to-market trading losses were $(84,379). Endowment Dividends and Interest were $69. Miscellaneous adjustments were $4,177. $(15,321) + $(84,379) + $4,177 + $69= $(95,454). This is an amended return. All previous returns (2020, 2021 & 2022) are being amended. See accompanying notes.