S Grant - Co Ext - Golden Leaf Grant for Piedmont Value Added Shared Use Food & Agricultural Processing center 01-22-2009-4p

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Golden LEAF FO€1NDAT10N {LONG-TERM ECONOMIC ADVANCEMENT FOUNClATION} jE.SSi& THOMAS BUNN April 15, 20x9 p~~ ~ CHA/RMANOFTLiEBOARD Via E-Mail and US Mail Geoffrey E. Gledhill Coleman, Gledhill, Hargrave & Peek, P.C. P.O. Drawer 1529 Hillsborough, NC 27278 Dear Geof: This letter is to clarify the meaniiag of certain provisions of the Golden LEAF Grantee Acknawiedgment and Agreement previously tendered to Orange County in connection with the project "Piedmont Value-Added Shared-Use Food and. Agricultural Processing Center" (the "Agreement"). The third sentence of Section 7 of the Agreement states that "[The Grantee] agrees that it will use the funds from this grant only for charitable, educational, or scientific purposes withixi the meaning of Section 501(c)(3) of the Code, and that it will not use the funds from this grant in any way that woald result in or give rise to private inurement or private benefit" (emphasis supplied). This is to confirm: that it is the intent of Golden LEAF that the phrase "private inurement" shall be construed to have the meaning assigned to that phrase by the Internal Revenue Service, and that the phrase "private benefit" shall be construed to have the meaning assigned to the phrase "impermissible private beneft" by the Internal Revenue Service. You may #'md it helpful to consider Rev. RuI.56-304, which states as follows: Organizations privately established and funded as charitable founda#ions which are organized and actively operated to carry on one or more of the purposes specified in section SO1{c)(3) of the Internal Revenue Code of 1954, and which otherwise meet the requirements for exemption from Federal income tax are not precluded froxxl making distributions of their funds to individuals, provided such distributions are made on a true charitable basis in furthezance of the puuposes for which they are organized. However, organizations of this character which snake such distributions should maintain adequate records and case histories to show the name and address of each recipient of aid; the amount distributed to each; the purpose far which the aid was given; the manner in which the recipient was selected and the relationship, if any, between the recipient and (1} members, officers, or trustees of the organization, (2) a grantor or subs#antial contributor to the organization or a member of the family of either, and (3) a corporation controlled by a grantoz or substantial cozrtributor, in order that any or all distributions made to individuals can be substantiated upon request by the Internal Revenue Service. 301 NORTH WINSTEAD AVENUE • ROCKY MOUNT, NC 27804 • {252) 442-7474 •(888) 684-8404 • FAX {252) 442-7404 www.goldenleaf.org • Email: lafoQgoldenleaforg