Common use of EXPLANATORY STATEMENT Clause in Contracts

EXPLANATORY STATEMENT. UME is a unit of the College of Agriculture of the University of Maryland, College Park, a Maryland State land-grant university. Pursuant to federal law and Department of Agriculture (“USDA”) regulations, UME administers the 4-H Program in Maryland, including issuing Charters to 4-H Clubs and granting permission to 4-H Clubs and other entities to use the 4-H name and logo. The Foundation is a voluntary nonprofit corporation organized under the laws of the State of Maryland, with its principal offices in College Park, Maryland. The mission of the Foundation is to advance the interests and work of 4-H throughout Maryland, including the 4-H Program at the University. The Foundation is recognized as an Affiliated Foundation of the University; as such, it operates in accordance with the University’s Policy on Affiliated Foundations and an annual Operating Agreement with the University. The Club is a nonprofit unincorporated association located in (County/Baltimore City), Maryland. The Club has received a 4-H Charter from UME and USDA, a copy of which is attached as Attachment 1. The Charter authorizes the Club to use the 4-H name and emblem for educational purposes and requires it to operate in accordance with the requirements of UME, which oversees Club activities and finances. UME requirements for 4-H Clubs include the Maryland 4-H Club Charter Requirements and the Maryland 4-H Club Financial Guidelines, current copies of which are attached for information purposes as Attachments 2 and 3, respectively. By virtue of its 4-H Charter, the Club has received federal tax exempt status under a 4-H group exemption number (GEN) issued by the Internal Revenue Service (IRS) to USDA. The USDA’s GEN is currently set to expire, requiring 4-H Clubs and other 4-H entities to maintain their tax exempt status through other means. The Foundation is tax exempt under §501(c)(3) of the Internal Revenue Code. Pursuant to its Operating Agreement with the University, the Foundation has applied or will apply, as a central organization, for a group exemption number under the Internal Revenue Code. The Foundation’s GEN will include as subordinate organizations those Maryland 4-H Clubs and other 4-H entities that are affiliated with the Foundation. The IRS requires a central organization to exercise general supervision or control over its GEN subordinates for tax purposes. In recognition of their common purpose and missions, the Club and Foundation desire to for Club to become affiliated with the Foundation and to be included as a subordinate organization in the Foundation’s group exemption number for purposes of maintaining the Club’s federal tax exempt status. UME supports this affiliation.

EXPLANATORY STATEMENT. UME is a unit of the College of Agriculture of the University of Maryland, College Park, a Maryland State land-grant university. Pursuant to federal law and Department of Agriculture (“USDA”) regulations, UME administers the 4-H Program in Maryland, including issuing Charters to 4-H Clubs and granting permission to 4-H Clubs and other entities to use the 4-H name and logo. The Foundation is a voluntary nonprofit corporation organized under the laws of the State of Maryland, with its principal offices in College Park, Maryland. The mission of the Foundation is to advance the interests and work of 4-H throughout Maryland, including the 4-H Program at the University. The Foundation is recognized as an Affiliated Foundation of the University; as such, it operates in accordance with the University’s Policy on Affiliated Foundations and an annual Operating Agreement with the University. The Club is a nonprofit unincorporated association located in (County/Baltimore City), Maryland. The Club has received a 4-H Charter from UME and USDA, a copy of which is attached as Attachment 1. The Charter authorizes the Club to use the 4-H name and emblem for educational purposes and requires it to operate in accordance with the requirements of UME, which oversees Club activities and finances. UME requirements for 4-H Clubs include the Maryland 4-H Club Charter Requirements and the Maryland 4-H Club Financial Guidelines, current copies of which are attached for information purposes as Attachments 2 and 3, respectively. By virtue of its 4-H Charter, the The Club has received federal tax exempt status under a 4-H group exemption number (“GEN”) issued by the Internal Revenue Service (IRS) to USDA. The USDA’s GEN is currently set to expire, requiring 4-H Clubs and other 4-H entities to maintain their tax exempt status through other means. The Foundation is recognized as tax exempt under §501(c)(3) and as a non-private foundation under Section 509(a)(1) and 170(b)(1)(a)(vi) of the Internal Revenue Code. Pursuant to its Operating Agreement with the University, the Foundation has applied or will apply, as a central organization, for a group exemption number GEN under the Internal Revenue Code. The Foundation’s GEN will include as subordinate organizations those Maryland 4-H Clubs and other 4-H entities that are affiliated with the Foundation. The IRS requires a central organization to exercise general supervision or control over its GEN subordinates for tax purposes. In recognition of their common purpose and missions, the Club and Foundation desire to for Club to become affiliated with the Foundation and to be included as a subordinate organization in the Foundation’s group exemption number GEN for purposes of maintaining the Club’s federal tax exempt status. UME supports this affiliation.

EXPLANATORY STATEMENT. UME is a unit of the College of Agriculture of the University of Maryland, College Park, a Maryland State land-grant university. Pursuant to federal law and Department of Agriculture (“USDA”) regulations, UME administers the 4-H Program in Maryland, including issuing Charters to 4-H Clubs Authorized Groups and granting permission to 4-H Clubs and other entities Authorized Groups to use the 4-H name and logo. The Foundation is a voluntary nonprofit corporation organized under the laws of the State of Maryland, with its principal offices in College Park, Maryland. The mission of the Foundation is to advance the interests and work of 4-H throughout Maryland, including the 4-H Program at the University. The Foundation is recognized as an Affiliated Foundation of the University; as such, it operates in accordance with the University’s Policy on Affiliated Foundations and an annual Operating Agreement with the University. The Club Authorized Group is a nonprofit unincorporated association located in (County/Baltimore City), Maryland. The Club Authorized Group has received a 4-H Charter from UME and USDA, a copy of which is attached as Attachment 1. The Charter authorizes the Club Authorized Group to use the 4-H name and emblem for educational purposes and requires it to operate in accordance with the requirements of UME, which oversees Club Authorized Group activities and finances. UME requirements for 4-H Clubs Authorized Groups include the Maryland 4-H Club Authorized Group Charter Requirements and the Maryland 4-H Club Authorized Group Financial Guidelines, current copies of which are attached for information purposes as Attachments 2 and 3, respectively. By virtue of its 4-H Charter, the Club Authorized Group has received federal tax exempt status under a 4-H group exemption number (GEN) issued by the Internal Revenue Service (IRS) to USDA. The USDA’s GEN is currently set to expire, requiring 4-H Clubs and other 4-H entities to maintain their tax exempt status through other means. The Foundation is tax exempt under §501(c)(3) of the Internal Revenue Code. Pursuant to its Operating Agreement with the University, the Foundation has applied or will apply, as a central organization, for a group exemption number under the Internal Revenue Code. The Foundation’s GEN will include as subordinate organizations those Maryland 4-H Clubs and other 4-H entities Authorized Groups that are affiliated with the Foundation. The IRS requires a central organization to exercise general supervision or control over its GEN subordinates for tax purposes. In recognition of their common purpose and missions, the Club Authorized Group and Foundation desire to for Club the Authorized Group to become affiliated with the Foundation and to be included as a subordinate organization in the Foundation’s group exemption number for purposes of maintaining the ClubAuthorized Group’s federal tax exempt status. UME supports this affiliation.