THE AMERICAN INDIA FOUNDATION

FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

 INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of

The American India Foundation

We have audited the accompanying financial statements of The American India

Foundation (a not-for-profit organization), which comprise the statements of financial
position as of March 31, 2020 and 2019, and the related statements of activities,
functional expenses and cash flows for the years then ended, and the related notes to the
financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United
States of America; this includes the design, implementation, and maintenance of internal
control relevant to the preparation and fair presentation of financial statements that are
free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our

audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of The American India Foundation as of March 31, 2020 and 2019, and the
changes in its net assets and its cash flows for the years then ended in accordance with
accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 11 to the financial statements, in March 2020, the United States declared
the global pandemic novel coronavirus COVID-19 outbreak a national emergency. As a result,
The American India Foundation has suspended or adapted some of its activities at the direction
of state and local governmental authorities. Our opinion is not modified with respect to this
matter.

New York, New York

October 22, 2020
 3
THE AMERICAN INDIA FOUNDATION

STATEMENTS OF FINANCIAL POSITION

MARCH 31, 2020 AND 2019

2020 2019

Assets
Cash and cash equivalents (Notes 1b and 4) $2,157,844 $1,888,475
Investments (Notes 1d, 1e and 5) 6,187,339 4,879,932
Unconditional promises to give (Notes 1c and 6) 1,257,750 1,908,885
Advance to AIFT (Note 1a) - 88,593
Prepaid expenses and other assets 266,057 336,269
Property and equipment, net of accumulated
depreciation (Notes 1f and 7) 22,738 17,674

Total Assets $9,891,728 $9,119,828

Liabilities and Net Assets

Liabilities
Accounts payable and accrued expenses $ 345,981 $ 449,622
Refundable event receipts 439,126 591,500
Refundable grant 200,000 -
Deposits held 35,524 31,150
Total Liabilities 1,020,631 1,072,272

Commitments (Notes 9 and 10)

Net Assets
Without Donor Restrictions 4,708,515 3,455,876
With Donor Restrictions
Time and purpose restrictions (Note 3a) 3,562,582 3,991,680
Perpetual in nature (Note 3b) 600,000 600,000
Total With Donor Restrictions 4,162,582 4,591,680
Total Net Assets 8,871,097 8,047,556

Total Liabilities and Net Assets $9,891,728 $9,119,828

See notes to financial statements.

 4
THE AMERICAN INDIA FOUNDATION

STATEMENTS OF ACTIVITIES

YEARS ENDED MARCH 31, 2020 AND 2019

2020 2019
With Donor Restrictions With Donor Restrictions
Without Time and Without Time and
Donor Purpose Perpetual Donor Purpose Perpetual
Restrictions Restrictions in Nature Total Restrictions Restrictions in Nature Total

Changes in Net Assets

Support and Revenue
Contributions and grants (Note 1c) $ 903,427 $ 2,748,428 $ - $3,651,855 $ 752,899 $ 1,689,745 $ - $2,442,644
Benefit income 4,683,624 93,000 - 4,776,624 4,314,930 532,853 - 4,847,783
Less: Direct benefit expenses (379,558) - - (379,558) (626,878) - - (626,878)
Net investment income (Note 5) 169,599 - - 169,599 116,024 - - 116,024
Other income 91,661 - - 91,661 103,497 - - 103,497
5,468,753 2,841,428 - 8,310,181 4,660,472 2,222,598 - 6,883,070
Net assets released from restrictions
Satisfaction of time and program restrictions 3,270,526 (3,270,526) - - 2,878,999 (2,878,999) - -

Total Support and Revenue 8,739,279 (429,098) - 8,310,181 7,539,471 (656,401) - 6,883,070

Expenses
Program Services 6,041,867 - - 6,041,867 4,664,475 - - 4,664,475
Supporting Services
Management and general 490,814 - - 490,814 419,339 - - 419,339
Fundraising 953,959 - - 953,959 747,753 - - 747,753
Total Supporting Services 1,444,773 - - 1,444,773 1,167,092 - - 1,167,092

Total Expenses 7,486,640 - - 7,486,640 5,831,567 - - 5,831,567

Increase (decrease) in net assets 1,252,639 (429,098) - 823,541 1,707,904 (656,401) - 1,051,503
Net assets, beginning of year 3,455,876 3,991,680 600,000 8,047,556 1,747,972 4,648,081 600,000 6,996,053

Net Assets, End of Year $ 4,708,515 $ 3,562,582 $600,000 $8,871,097 $ 3,455,876 $ 3,991,680 $600,000 $8,047,556

See notes to financial statements.

 5
THE AMERICAN INDIA FOUNDATION

STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENDED MARCH 31, 2020 WITH COMPARATIVE TOTALS FOR 2019

Program Services Supporting Services 2020 2019

Engage,
Educate,
Public Digital Clinton Inform and Management Total Total
Education Livelihood Health Equalizer Fellows Involve (EEII) Total and General Fundraising Total Expenses Expenses

Grants - program related - AIFT $1,044,441 $1,492,176 $ 840,628 $399,009 $194,142 $ - $3,970,396 $ - $ - $ - $3,970,396 $1,518,820
Grants - direct to non-governmental organizations 36,070 - - - - 9,000 45,070 - - - 45,070 1,055,388
Grants - Donor Advised Funds - 25,700 - - - - 25,700 - - - 25,700 88,120
Program and donor communications 37,226 53,172 29,954 14,220 6,919 - 141,491 - 44,042 44,042 185,533 60,839
Stipends - - - - 70,582 - 70,582 - - - 70,582 77,366

Salaries 174,344 171,159 160,973 163,130 212,590 190,316 1,072,512 174,164 189,228 363,392 1,435,904 1,378,790
Payroll taxes and fringe benefits 58,097 57,160 49,664 52,475 60,908 71,216 349,520 58,699 56,597 115,296 464,816 409,533
Occupancy 26,864 26,431 22,965 24,265 28,757 32,930 162,212 28,165 94,845 123,010 285,222 272,917
Professional fees - - - - - - - 82,788 69,261 152,049 152,049 117,188
Consulting fees 6,150 6,150 9,225 9,225 9,225 9,225 49,200 10,700 127,560 138,260 187,460 24,978

Telephone and internet 1,910 1,879 1,633 1,725 2,211 2,342 11,700 6,470 11,667 18,137 29,837 29,302
Office supplies and related expenses 1,435 - - - 19,804 - 21,239 5,310 27,302 32,612 53,851 61,203
Repairs and maintenance 2,312 2,275 1,977 2,089 2,424 2,835 13,912 2,425 2,312 4,737 18,649 20,500
Travel, entertainment and lodging 645 800 552 583 57,344 791 60,715 676 19,814 20,490 81,205 67,373
Cultivation, digital and Young Professional events 2,018 2,018 3,027 3,027 3,027 3,027 16,144 2,015 61,430 63,445 79,589 151,310

Indirect benefit expenses - - - - - - - - 235,687 235,687 235,687 314,071

Depreciation 242 239 207 219 254 297 1,458 1,331 2,742 4,073 5,531 5,447
Miscellaneous 5,581 2,221 1,929 2,039 15,479 2,767 30,016 118,071 11,472 129,543 159,559 139,976
Leadership retreat - travel and lodging - - - - - - - - - - - 38,446

Total Expenses $1,397,335 $1,841,380 $1,122,734 $672,006 $683,666 $ 324,746 $6,041,867 $ 490,814 $ 953,959 $1,444,773 $7,486,640 $5,831,567

See notes to financial statements.

 6
THE AMERICAN INDIA FOUNDATION

STATEMENT OF FUNCTIONAL EXPENSES

YEAR ENDED MARCH 31, 2019

Program Services Supporting Services

Engage,
Educate,
Public Digital Clinton Inform and Management Total
Education Livelihood Health Equalizer Fellows Involve (EEII) Total and General Fundraising Total Expenses

Grants - program related - AIFT $136,398 $190,989 $336,337 $502,375 $352,721 $ - $1,518,820 $ - $ - $ - $1,518,820
Grants - direct to non-governmental organizations 315,348 352,681 387,359 - - - 1,055,388 - - - 1,055,388
Grants - Donor Advised Funds 29,222 58,898 - - - - 88,120 - - - 88,120
Donor communications - - - - - - - - 60,839 60,839 60,839
Specific programs related expenses - - - - 77,366 - 77,366 - - - 77,366

Salaries 179,874 151,803 152,261 159,544 207,011 190,690 1,041,183 163,707 173,900 337,607 1,378,790
Payroll taxes and fringe benefits 52,140 47,142 43,329 45,975 59,931 54,688 303,205 44,564 61,764 106,328 409,533
Occupancy 27,073 22,723 22,859 23,953 31,457 87,261 215,326 25,045 32,546 57,591 272,917
Professional fees - - - - - - - 95,906 21,282 117,188 117,188
Consulting fees 2,261 1,898 1,909 2,001 4,346 2,239 14,654 2,093 8,231 10,324 24,978

Telephone and internet 2,501 2,099 2,112 2,213 4,163 2,477 15,565 2,315 11,422 13,737 29,302
Office supplies and related expenses 2,133 1,240 1,247 1,307 22,912 2,313 31,152 1,364 28,687 30,051 61,203
Repairs and maintenance 2,618 2,198 2,211 2,317 3,006 2,593 14,943 2,422 3,135 5,557 20,500
Travel, entertainment and lodging 227 151 227 227 48,911 2,948 52,691 2,663 12,019 14,682 67,373
Cultivation, digital and Young Professional events 6,420 4,280 6,420 6,420 6,420 114,930 144,890 2,140 4,280 6,420 151,310

Indirect benefit expenses - - - - - - - - 314,071 314,071 314,071

Depreciation 696 584 588 616 799 689 3,972 642 833 1,475 5,447
Miscellaneous 6,699 6,075 5,656 9,708 10,103 10,513 48,754 76,478 14,744 91,222 139,976
Leadership retreat - travel and lodging - - - - - 38,446 38,446 - - - 38,446

Total Expenses $763,610 $842,761 $962,515 $756,656 $829,146 $ 509,787 $4,664,475 $ 419,339 $ 747,753 $1,167,092 $5,831,567

See notes to financial statements.

 7
THE AMERICAN INDIA FOUNDATION

STATEMENTS OF CASH FLOWS

YEARS ENDED MARCH 31, 2020 AND 2019

2020 2019

Cash Flows From Operating Activities

Increase in net assets $ 823,541 $1,051,503
Adjustments to reconcile increase in net assets
to net cash provided by operating activities:
Depreciation 5,531 5,447
Unrealized gain on investments (39,094) (31,894)
Donated securities on hand (29,876) (82,554)
(Increase) decrease in:
Unconditional promises to give 651,135 (18,454)
Advance to AIFT 88,593 (88,593)
Prepaid expenses and other assets 70,212 (141,174)
Increase (decrease) in:
Accounts payable and accrued expenses (103,641) (236,590)
Grant payable - AIFT - (55,688)
Refundable event receipts (152,374) 348,200
Refundable grant 200,000 -
Deposits held 4,374 (2,000)
Net Cash Provided By Operating Activities 1,518,401 748,203

Cash Flows From Investing Activities

Purchase of property and equipment (10,595) (4,544)
Purchases of investments (1,295,523) (270,792)
Proceeds from sale of investments 57,086 90,612
Net Cash Used By Investing Activities (1,249,032) (184,724)

Net increase in cash and cash equivalents 269,369 563,479

Cash and cash equivalents, beginning of year 1,888,475 1,324,996

Cash and Cash Equivalents, End of Year $2,157,844 $1,888,475

See notes to financial statements.

 8
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 1 - Organization and Summary of Significant Accounting Policies

a - Organization
The American India Foundation (“AIF” or the “Organization”) is a not-for-profit
organization formed to provide financial, technological, and managerial resources
toward helping the people of India realize their full potential and strengthening the
bonds between the United States of America and India.

AIF has a memorandum of understanding (“MOU”) with The American India

Foundation Trust (“the Trust” or “AIFT”) located in India. The MOU includes
licensing and general grant administration agreements. The Trust will carry out
developmental activities with funds provided by AIF. AIF and the Trust do not share
any common members on their respective Boards of Directors, and accordingly, the
transactions of the Trust have not been included in the accompanying financial
statements.

Grants to the Trust from AIF, to support program related expenses, totaled
$3,970,396 and $1,518,820 for the years ended March 31, 2020 and 2019,
respectively (see Note 8). The outstanding advance to the Trust was $88,593 at
March 31, 2019. In addition, $45,070 and $1,055,388 was awarded to non-
governmental organizations during the years ended March 31, 2020 and 2019,
respectively.

b - Cash and Cash Equivalents

For purposes of the statement of cash flows, the Organization considers all highly
liquid debt instruments purchased with a maturity of three months or less to be cash
equivalents, except for those short-term investments and cash managed by AIF’s
investment managers as part of their long-term investment strategies.

c - Contributions and Unconditional Promises to Give

Contributions are recognized when the donor makes a promise to give to the
Organization, that is in substance, unconditional. Contributions that are restricted by
the donor are reported as increases in net assets with donor restrictions. When a
restriction is met, net assets with donor restrictions are reclassified to net assets
without donor restrictions. Conditional promises to give, that have a measurable
performance or other barrier and a right of return, are not recognized as support
until the conditions have been met.

AIF received 13% of its contributions from one donor during the year ended March
31, 2019.

The Organization uses the allowance method to determine uncollectible promises

to give, if any. The allowance is based on prior years’ experience and
management’s analysis of specific promises made.
 9
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 1 - Organization and Summary of Significant Accounting Policies (continued)

d - Fair Value Measurements

Fair value is an estimate of the exit price, representing the amount that would be
received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants (i.e., the exit price at the measurement date). Fair
value measurements are not adjusted for transaction costs. The fair value hierarchy
prioritizes inputs to valuation techniques used to measure fair value into three
levels.

Unadjusted quoted prices in active markets for identical assets and liabilities are
referred to as Level 1 inputs. Inputs other than quoted market prices that are
observable, either directly or indirectly and reasonably available are referred to as
Level 2 inputs. Observable inputs reflect the assumptions market participants would
use in pricing the asset or liability and are developed based on market data
obtained from sources independent of the Organization. Unobservable inputs reflect
the assumptions developed based on available information about what market
participants would use in valuing the asset or liability and are referred to as Level 3
inputs.

An asset or liability’s level within the fair value hierarchy is based on the lowest
level of any input that is significant to the fair value measurement. Availability of
observable inputs can vary and is affected by a variety of factors. The investment
managers use judgment in determining fair value of assets and liabilities. Level 3
assets and liabilities involve greater judgment than Level 1 or Level 2 assets or
liabilities.

The classification of investments in the fair value hierarchy is not necessarily an

indication of the risks, liquidity, or degree of difficulty in estimating the fair value of
each investment’s underlying assets and liabilities.

All of the Organization's marketable investments are classified within Level 1 (prices
in active markets for identical assets or liabilities) of the fair value hierarchy.

e - Investments
The Organization reflects its marketable investments at fair value in the statement
of financial position. Restricted stock is reflected at the appraised value at the time
of donation. Interest, dividends, and gains and losses on investments are reflected
in the statement of activities as increases and decreases in net assets without
donor restrictions, unless their use is restricted by explicit donor stipulations or by
law.

Purchases and sales of investments reflected in the statement of cash flows are
reported net of short-term investments with maturities of three months or less.
 10
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 1 - Organization and Summary of Significant Accounting Policies (continued)

f - Property and Equipment

Property and equipment acquired are recorded at cost and are depreciated using
the straight-line method over the estimated useful life of the related asset.

g - Grants Awarded
Unconditional grants are recorded when awarded to the grantee organization.

h - Financial Statement Presentation

The financial statements of the Organization have been prepared in accordance
with U.S. generally accepted accounting principles, which require the Organization
to report information regarding its financial position and activities according to the
following net asset classifications:

Net Assets Without Donor Restrictions

Net assets that are not subject to donor-imposed restrictions and may be
expended for any purpose in performing the primary objectives of the
Organization. These net assets may be used at the discretion of the
Organization’s management and Board of Directors.

Net Assets With Donor Restrictions

Net assets subject to stipulations imposed by donors and grantors. Some
donor restrictions are temporary in nature; those restrictions will be met by
actions of the Organization or the passage of time. Other donor restrictions are
perpetual in nature, whereby the donor has stipulated the funds be maintained
in perpetuity.

i - Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.

j - Income Taxes
The American India Foundation is a not-for-profit organization exempt from federal
income taxes under Section 501(c) (3) of the Internal Revenue Code and has been
designated as an organization which is not a private foundation.

k - Subsequent Events
The Organization has evaluated subsequent events through October 22, 2020, the
date that the financial statements are considered available to be issued.
 11
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 1 - Organization and Summary of Significant Accounting Policies (continued)

l - Functional Allocation of Expenses

The financial statements report certain categories of expenses that are attributable
to more than one program or supporting function. Expenses are applied directly to
programs where applicable or allocated on a reasonable and consistent basis. A
substantial portion of the Organization’s expenses are directly related to program
activities. The expenses that are allocated include payroll and benefits, occupancy,
consulting fees, telephone and internet, office supplies, repairs and maintenance,
depreciation, and certain miscellaneous expenses which are allocated on the basis
of staff time and effort.

m - New Accounting Pronouncements

In 2020, the Organization adopted Accounting Standards Update (ASU) No 2014-
09, Revenue from Contracts with Customers (Topic 606), and ASU 2018-08, Not-
for-Profit Entities: Clarifying the Scope and the Accounting Guidance for
Contributions Received and Contributions Made (Topic 605). Analysis of the
various provisions of these standards resulted in no significant changes in the way
the Organization recognizes revenue, and therefore no changes to the previously
issued audited financial statements were required on a retrospective basis.

Note 2 - Information Regarding Liquidity and Availability

The Organization operates with a balanced budget for each fiscal year based on the
revenues expected to be available to fund anticipated expenses. A substantial portion
of annual revenue is comprised of contribution revenue raised during the current year,
and revenue from other sources earned during the year. The Organization considers
general expenditures to consist of all expenses related to its ongoing program activities,
and the expenses related to general and administrative and fundraising activities
undertaken to support those services.

The Organization regularly monitors liquidity to meet its operating needs and other
commitments and obligations, while seeking to maximize the investment of its available
funds. Management prepares regular cash flow projections to determine liquidity needs,
and has a policy to maintain liquid financial assets on an ongoing basis sufficient to
cover ninety days of general expenditures. Financial assets in excess of daily cash
requirements are invested in money market funds and certificates of deposit.
 12
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 2 - Information Regarding Liquidity and Availability (continued)

The Organization’s financial assets as of March 31, 2020 and 2019 and those available
within one year to meet cash needs for general expenditures are summarized as
follows:
2020 2019
Financial Assets at Year End:
Cash and cash equivalents $2,157,844 $1,888,475
Investments 6,187,339 4,879,932
Unconditional promises to give 1,257,750 1,908,885
Total Financial Assets 9,602,933 8,677,292
Less: Amounts not Available to be Used within One Year:
Net assets with donor restrictions, subject to expenditure
for specific purposes or passage of time (3,562,582) (3,991,680)
Plus: Net assets with donor restrictions expected to be
met in less than one year 2,015,289 1,940,026
Net assets with donor restrictions for endowment, subject
to spending policy and appropriation (600,000) (600,000)
Financial Assets Available to Meet General
Expenditures within One Year $7,455,640 $6,025,638

Note 3 - Net Assets With Donor Restrictions

a - Time and Purpose Restrictions

Net assets with time and purpose restrictions at March 31, 2020 and 2019 are
restricted for the following purposes:
2020 2019
Public health $1,292,301 $1,674,512
LAMP- learning and migration program 615,463 703,934
Livelihood 530,920 750,432
Clinton fellows 455,961 117,719
Digital equalizer 306,197 267,064
Donor advised funds 197,165 278,769
Gender program 58,789 58,789
Advocacy 51,128 24,161
Uttarakhand relief fund 28,947 28,947
Chennai flood fund 13,668 26,292
Kashmir flood fund 5,237 5,237
Taplin friend’s fund 4,450 2,450
Future periods and gala 1,501 3,001
Kerala rehabilitation 855 48,873
IIMPACT - 1,500
$3,562,582 $3,991,680
 13
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 3 - Net Assets With Donor Restrictions (continued)

b - Endowment Funds
The Organization’s endowment consists of two funds established for general
support. As required by generally accepted accounting principles, net assets
associated with endowment funds are classified and reported based on the
existence or absence of donor-imposed restrictions.

Consistent with New York Prudent Management of Institutional Funds Act

(NYPMIFA), the Organization classifies as net assets with donor restrictions (a) the
original value of gifts donated to the permanent endowment, (b) the original value of
subsequent gifts to the permanent endowment, and (c) accumulations to the
permanent endowment made in accordance with the direction of any applicable
donor gift instrument at the time the accumulation is added to the fund.

The remaining portion of the donor-restricted endowment that is not for investment
in perpetuity is classified as endowment subject to spending policy and
appropriation until those amounts are appropriated for expenditure by the
Organization.

In accordance with NYPMIFA, the Organization considers the following factors in

making a determination to appropriate or accumulate donor-restricted endowment
funds:
(i) the duration and preservation of the endowment fund;
(ii) the purposes of the Organization and the endowment fund;
(iii) general economic conditions;
(iv) the possible effect of inflation or deflation;
(v) the expected total return from income and the appreciation of investments;
(vi) other resources of the Organization;
(vii) where appropriate and circumstances would otherwise warrant,
alternatives to expenditure of the endowment fund, giving due
consideration to the effect that such alternatives may have on the
Organization; and
(viii) the investment policy of the Organization

Changes in the Organization’s endowment funds for the years ended March 31,
2020 and 2019 are summarized as follows:

2020
Without Investment
Donor in
Restrictions Perpetuity Total
Endowment funds, beginning of year $ - $600,000 $600,000
Investment return 17,503 - 17,503
Appropriation of endowment assets
to operations (17,503) - (17,503)
Endowment Funds, End of Year $ - $600,000 $600,000
 14
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 3 - Restrictions on Assets (continued)

b - Endowment Funds (continued)

2019
Without Investment
Donor in
Restrictions Perpetuity Total

Endowment funds, beginning of year $ - $600,000 $600,000

Investment return 5,813 - 5,813
Appropriation of endowment assets
to operations (5,813) - (5,813)

Endowment Funds, End of Year $ - $600,000 $600,000

Return Objective and Risk Parameters

The primary investment objective of AIF is to preserve and protect its assets by
earning a total return for each fund appropriate to each fund’s time horizon, liquidity
needs, and risk tolerance. AIF seeks to eliminate any excess interest rate risk by
limiting the type and the time horizons of its investments.

Strategies Employed for Achieving Objectives and Spending Policy

Asset Quality
Fixed income securities - The quality rating of bonds and notes must be “A” or
better, as rated by Standard & Poor’s and Moody’s. The portfolio may consist of
only transitional principal and interest obligations (no derivatives) with maturities
of seven years or less.

Cash/Cash equivalents - The quality rating of commercial paper must be A-1, as

rated by Standard & Poor’s, P-1, as rated by Moody’s, or better. The assets of
any money market mutual funds must comply with rule 2a-7.

AIF has taken a conservative view of protecting capital and has been primarily
investing in money markets, corporate bonds and FDIC insured CD’s based on the
guidelines set by the Finance Committee.

The Organization has a policy of appropriating 100% of endowment earnings.

 15
THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 4 - Concentration of Credit Risk

The Organization maintains cash and cash equivalent balances in financial institutions,
which, from time to time, may exceed the Federal Depository Insurance Corporation
limit and subject the Organization to concentration of credit risk.

Note 5 - Investments

Investments are reflected at the carrying value and consist of the following at March 31:

2020 2019
Carrying Carrying
Cost Value Cost Value

Cash and money market funds $ 266,239 $ 266,239 $ 37,909 $ 37,909

Certificates of deposit 3,911,000 3,918,571 2,863,000 2,863,183
Government securities 809,244 852,289 771,173 776,373
Municipal bonds 256,689 271,962 246,945 251,836
Corporate bonds 412,203 420,688 442,263 444,355
Mutual funds 396,699 379,427 369,535 369,110
Equities 29,876 20,823 82,812 79,826
Investments, Level 1, carried at fair value 6,081,950 6,129,999 4,813,637 4,822,592

Restricted stock, valued at appraised

value at time of donation 57,340 57,340 57,340 57,340

$6,139,290 $6,187,339 $4,870,977 $4,879,932

In fiscal year 2012, The American India Foundation received a donation of stock in a
privately held company, which is not marketable. The shares are reflected at the
appraisal value at the date of donation. Sale of this stock is subject to restrictions.

Net investment income is summarized as follows for the years ended March 31:

2020 2019

Interest and dividend income $130,505 $ 84,130

Unrealized gain on investments 39,094 31,894

$169,599 $116,024
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THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 6 - Promises to Give

a - Unconditional Promises to Give

Unconditional promises to give at March 31, 2020 and 2019 are due as follows:

2020
Without With
Donor Donor
Restrictions Restrictions Total

Less than one year $339,791 $726,570 $1,066,361

One to three years - 203,209 203,209
Less: Discount to present value - (11,820) (11,820)

Total $339,791 $917,959 $1,257,750

2019
Without With
Donor Donor
Restrictions Restrictions Total

Less than one year $893,459 $ 803,545 $1,697,004

One to three years - 224,785 224,785
Less: Discount to present value - (12,904) (12,904)

Total $893,459 $1,015,426 $1,908,885

Uncollectible promises are expected to be insignificant. Unconditional promises to

give that are due in more than one year are discounted to net present value using a
rate of 3%.

b - Conditional Promises to Give

As of March 31, 2020, the Organization received approximately $1,263,000 of
contributions that have barriers that have not been met by year end, and
accordingly have not been recognized as support in the accompanying financial
statements.
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THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 7 - Property and Equipment

Property and equipment consist of the following:

Life 2020 2019

Computer equipment 3-5 years $104,637 $ 94,042

Website 3 years 50,507 50,507
155,144 144,549
Less: Accumulated depreciation (132,406) (126,875)

$ 22,738 $ 17,674

Note 8 - Grant Making Activities

AIF awards grants to AIFT in support of its programs for Education, Livelihood and
Public Health in India. AIF also awards grants to reputable Indian non-governmental
organizations that were executing development projects in India.

Note 9 - Commitments

a - AIF leases office space in New York. The lease provides for minimum annual
payments as follows:

Year ending March 31, 2021 $196,173

Thereafter, through June 30, 2021 49,043

Rent expense for the years ended March 31, 2020 and 2019 was $202,846 and
$195,330, respectively.

b - AIF sublets part of its office space in New York. Rental income under sub-leases is
expected to be received as follows:

Year ending March 31, 2021 $59,402

Thereafter, through June 30, 2021 5,400
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THE AMERICAN INDIA FOUNDATION

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2020 AND 2019

Note 10 - Pension Plan

AIF maintains a defined contribution pension plan for all eligible employees. The
Organization contributes 6% of annual compensation after one year of service. The
total contribution to the plan for the years ended March 31 2020 and 2019 was $59,550
and $59,676, respectively.

Note 11 - Risks and Uncertainties

In March 2020, the United States declared the global pandemic novel coronavirus
COVID-19 outbreak a national emergency. AIF believes that its current financial assets
are sufficient to support its operations on an ongoing basis.

In May 2020, AIF received a $326,000 Paycheck Protection Program loan having an
interest rate of 1% and a maturity of 2 years. The loan and any accrued interest can be
forgiven in its entirety if the loan proceeds are applied towards applicable payroll and
occupancy costs, as defined by the Coronavirus Aid, Relief and Economic Security Act.
AIF expects the entire loan and all accrued interest will be forgiven.