SASAKAWA PEACE FOUNDATION USA, INC.
FINANCIAL STATEMENTSYEARS ENDED MARCH 31, 2023 AND 2022

SASAKAWA PEACE FOUNDATION USA, INC.
TABLE OF CONTENTSYEARS ENDED MARCH 31, 2023 AND 2022

INDEPENDENT ACCOUNTANT’S REVIEW REPORT

1

FINANCIAL STATEMENTS
STATEMENTS OF FINANCIAL POSITION

3STATEMENTS OF ACTIVITIES4STATEMENTS OF FUNCTIONAL EXPENSES

5

STATEMENTS OF CASH FLOWS

7NOTES TO FINANCIAL STATEMENTS

9

CliftonLarsonAllen LLP
CLAconnect.com

INDEPENDENT ACCOUNTANT’S REVIEW REPORTBoard of Directors
Sasakawa Peace Foundation USA, Inc.
Washington, DC
We have reviewed the accompanying financial statements of Sasakawa Peace Foundation USA, Inc. (anonprofit organization), which comprise the statement of financial position as of March 31, 2023, andthe related statements of activities, functional expenses, and cash flows for the year then ended, andthe related notes to the financial statements. A review includes primarily applying analytical procedures
to management’s financial data and making inquiries of management. A review is substantially less inscope than an audit, the objective of which is the expression of an opinion regarding the financial
statements as a whole. Accordingly, we do not express such an opinion.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements inaccordance 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 fairpresentation of financial statements that are free from material misstatement whether due to fraud or
error.
Accountants’ Responsibility
Our responsibility is to conduct the review engagements in accordance with Statements on Standards
for Accounting and Review Services promulgated by the Accounting and Review Services Committeeof the American Institute of Certified Public Accountants. Those standards require us to perform
procedures to obtain limited assurance as a basis for reporting whether we are aware of any material
modifications that should be made to the financial statements for them to be in accordance withaccounting principles generally accepted in the United States of America. We believe that the results ofour procedures provide a reasonable basis for our conclusion.
We are required to be independent of Sasakawa Peace Foundation USA, Inc. and to meet our otherethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.
Accountants’ Conclusion
Based on our review, we are not aware of any material modifications that should be made to theaccompanying financial statements in order for them to be in accordance with accounting principles
generally accepted in the United States of America.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

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Board of Directors
Sasakawa Peace Foundation USA, Inc.

Report on 2022 Financial Statements
The financial statements of Sasakawa Peace Foundation USA, Inc. as of and for the year ended
March 31, 2022 were reviewed by other accountants whose report dated October 31, 2022, stated that,based on their review, they are not aware of any material modifications that should be made to thefinancial statements in order for them to be in accordance with accounting principles generally acceptedin the United States of America.

CliftonLarsonAllen LLP
Arlington, Virginia
October 10, 2023

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SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENTS OF FINANCIAL POSITIONMARCH 31, 2023 AND 2022

2023

2022

CURRENT ASSETS
Cash and Cash Equivalents
Restricted Cash - Endowment Fund
Grants Receivable
Accounts Receivable
Tenant Rents and Other Receivable
Prepaid Expenses
Prepaid Taxes
Total Current Assets

2,551,438
8,942,508
30,47042,2407,812
8,964
11,583,432

3,212,393
9,396,563
25,372
67,2885,742
273
12,707,631

PROPERTY AND EQUIPMENT, NET

4,190,071

4,246,581

105,735
117,251
28,633
1,499
253,118

115,064
144,51328,333287,910$ 16,026,621$ 17,242,122

ASSETS

OTHER ASSETS
Deferred Leasing Commissions, Net of Accumulated Amortizationof $351,277 in 2023 and $742,768 in 2022
Deferred Rent Assets
Restricted Cash - Tenant Security Deposits
Right-of-Use Asset - Operating, Net
Total Other Assets
Total Assets
LIABILITIES AND NET ASSETSCURRENT LIABILITIES
Accounts Payable
Credit Card Payable
Accrued Vacation
Deferred Income
Refundable Advances
Lease Liability - Operating, Current Portion
Total Current Liabilities

154,037
2,404
44,95037,565
171,078
1,499
411,533

LONG-TERM LIABILITIESTenant Security Deposits
Total Long-Term Liabilities

28,633
28,63328,33328,333

Total Liabilities

440,166

1,274,607

NET ASSETS
Without Donor Restrictions
With Donor Restrictions
Total Net Assets

6,664,355
8,922,100
15,586,455

6,570,952
9,396,563
15,967,515$ 16,026,621$ 17,242,122

Total Liabilities and Net Assets
See accompanying Notes to Financial Statements.
(3)$

23,344
20,78843,88335,8791,122,380
1,246,274

SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENTS OF ACTIVITIESYEARS ENDED MARCH 31, 2023 AND 2022

2023
Without
Donor
Restrictions

2022

Total

Without
Donor
Restrictions

217,379-$ 3,156,392
1,330,595
231,690-$ 1,618,822
1,652,166
290
46,214

691,842
5,193,140(691,842)(474,463)

4,718,677

190,517
3,508,009(190,517)(185,725)

3,322,284

2,504,396
196,442862,337
3,563,175
340,464
1,196,098
5,099,737-

2,504,396
196,442862,337
3,563,175
340,464
1,196,098
5,099,737

1,201,932
146,398
189,3211,537,651
334,036
1,290,997
3,162,684-

1,201,932
146,398
189,3211,537,651
334,036
1,290,997
3,162,684

93,403(474,463)(381,060)

345,325(185,725)

159,600

Net Assets - Beginning of Year6,570,952

9,396,563

15,967,515

6,225,627

9,582,288

15,807,915

NET ASSETS - END OF YEAR

$ 6,664,355$ 8,922,100$ 15,586,455$ 6,570,952$ 9,396,563$ 15,967,515

REVENUE
Contribution Income
Rental Income
Interest and Dividends
Other Income
Net Assets Released from
Purpose Restrictions
Total Revenue$ 3,156,392
1,330,595
14,311-

EXPENSES
Programs:
Policy Research and Education
JUMP
GrantsTotal Programs
General and Administrative
Rental Operations
Total Expenses
CHANGE IN NET ASSETS

With Donor
Restrictions$

See accompanying Notes to Financial Statements.
(4)

With Donor
Restrictions
$

4,792
-

Total
$

1,618,822
1,652,166
5,082
46,214

SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED MARCH 31, 2023

Programs
PolicyResearch and
Education
Personnel
TravelAssistance Provided to Others
Depreciation and Amortization
Repairs and Maintenance
Meetings
Taxes and Licenses
Professional Fees
Utilities
Communication and Delivery
Insurance
Payroll Processing Fees
Honorarium
Printing
Dues and Subscriptions
Equipment Rental
Office Supplies
Miscellaneous
Total Expenses$ 1,140,697
840,830
14,87335,754
161,974
148,507
3,813
66,811
10,555
16,41021,65010,508
9,901
9,059
8,049
5,005
$ 2,504,396

JUMP
$

$

70,06443,7274,307
1,986
44,3772,065
890
15,398
817
2,085
1,000
6,574
1,935
503
690
24
196,442$$

Grants

Total
Programs

General and
Administrative

RentalOperations

862,337
862,337$ 1,210,761
884,557
862,337
19,18037,740206,351
150,572
4,703
82,20911,372
18,49522,65017,082
11,836
9,562
8,739
5,029
$ 3,563,175$$

See accompanying Notes to Financial Statements.
(5)$

275,828
2,423
19,180
1,986
6,659
2,913
17,778
1,080
3,310
1,952
4,117
330
60
1,738
503
157
450
340,464

247,58245
323,290
235,772
346
206,963
18,532
121,3325
31,727
2,000
1,435
521
6,548
$ 1,196,098

Total$ 1,734,171
887,025
862,337
361,650
275,498
213,356
209,876
186,882
127,115
85,52445,051
24,612
22,98017,142
15,00910,065
9,417
12,027$ 5,099,737

SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENT OF FUNCTIONAL EXPENSESYEAR ENDED MARCH 31, 2022

Programs
PolicyResearch and
Education
Personnel
Depreciation and Amortization
Taxes and Licenses
Professional Fees
Repairs and Maintenance
Assistance Provided to Others
Utilities
TravelCommunication and Delivery
Insurance
Meetings
Honorarium
Payroll Processing Fees
Dues and Subscriptions
Equipment Rental
Printing
Office Supplies
Miscellaneous
Total Expenses$

852,352
17,35180,076
32,6633,570
87,402
39,794
8,653
16,22319,80015,131
9,558
8,618
4,969
5,351
421
$ 1,201,932

JUMP
$

$

75,344
5,059
2,375
1,931
833
10,87817,342
1,030
18,800
3,000
1,883
1,824
509
4,946
623
21
146,398

Total
Programs

General and
Administrative

RentalOperations

927,696
22,41082,451
34,594
189,321
4,403
98,28057,136
9,683
35,02322,80017,014
11,382
9,127
9,915
5,974
442
$ 1,537,651$$

Grants$$

189,321
189,321

See accompanying Notes to Financial Statements.
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$

$

243,357
24,127
6,711
32,880
4,022
1,012
1,428
4,166
2,603
6,391
330
3,862
1,129
1,055
54
667
242
334,036

264,061
323,115250,224
125,628
165,213
113,59030
13,87531,387
19
1,883
107
1,001
864
$ 1,290,997

Total$ 1,435,114
369,652
256,935
240,959
203,829
189,321
119,005
99,73875,17743,67341,43323,13022,75912,618
10,182
9,969
7,642
1,548
$ 3,162,684

SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENTS OF CASH FLOWSYEARS ENDED MARCH 31, 2023 AND 2022

2023
CASH FLOWS FROM OPERATING ACTIVITIES
Changes in Net Assets
Adjustments to Reconcile Change in Net Assets to
Net Cash Provided (Used) by Operating Activities:
Depreciation and Amortization
Amortization of Right-of-Use Asset - Operating
Loss on Retirement of Property and Equipment
Changes in Assets and Liabilities:
Grants Receivable
Accounts Receivable
Tenant Rents and Other Receivable
Prepaid Expenses
Prepaid Taxes
Deferred Leasing Commissions
Deferred Rent Assets
Accounts Payable
Refundable Advances
Credit Card Payable
Accrued Vacation
Deferred Income
Lease Liability - Operating
Deferred Rent Liabilities
Net Cash Provided (Used) by Operating Activities

$

2022

(381,060)$

159,600

361,6508,904
534

369,652-(5,098)(42,240)
59,476(3,222)273(50,212)27,262
130,693(951,302)(18,384)
1,067
1,686
(8,904)(868,877)(20,082)
163,558
277,376
27,642674(16,783)(144,513)(16,536)736,334
17,7007,622
1,089(25,181)
1,538,152(246,133)(82,871)300
300(12,665)(12,665)

NET CHANGE IN CASH, CASH EQUIVALENTS, AND
RESTRICTED CASH

(1,114,710)

1,442,616

Cash, Cash Equivalents, and Restricted Cash - Beginning of Year

12,637,289

11,194,673$ 11,522,579$ 12,637,289

CASH FLOWS FROM INVESTING ACTIVITIESAcquisitions of Property and Equipment
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts (Repayments) of Tenant Security Deposits
Net Cash Provided (Used) by Financing Activities

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH END OF YEAR

See accompanying Notes to Financial Statements.
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SASAKAWA PEACE FOUNDATION USA, INC.
STATEMENTS OF CASH FLOWS (CONTINUED)YEARS ENDED MARCH 31, 2023 AND 2022

2023
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Noncash Transactions Arising from ASC 842 Adoption:
Recognition of Right-of-Use Asset - Operating
Recognition of Lease Liability - Operating
Total
SUPPLEMENTAL DISCLOSURES OF CASH, CASH EQUIVALENTS,
AND RESTRICTED CASH
Cash and Cash Equivalents
Restricted Cash - Endowment Fund
Restricted Cash - Tenant Security Deposits
Total Cash, Cash Equivalents, and Restricted CashSee accompanying Notes to Financial Statements.
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$

2022

10,403(10,403)-$2,551,438
8,942,508
28,633$ 11,522,579

$

$

$

$

-

3,212,393
9,396,563
28,333$ 12,637,289

SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 1ORGANIZATION AND NATURE OF BUSINESS
Sasakawa Peace Foundation USA, Inc. (the Foundation) was incorporated on
September 24, 1990, as a nonprofit private foundation and commenced operations in March
1991. The Foundation is dedicated to strengthening U.S.-Japan relations through education,
programs and research. To foster this mission, the Foundation's research programs focus
on security, diplomacy, economics, business, trade, technology, and other matters ofcommon concern. The Foundation's education programs are designed to facilitate peopleto-people exchange and dialogue on these issues with American and Japanesepolicymakers, influential citizens and the broader public.
Upon its formation, the Foundation received a grant from its founder, the Sasakawa Peace
Foundation Japan (SPF-Japan), to acquire a building in Washington, D.C. to house a libraryof research, survey, and other noncommercial publications, and an art gallery dedicated forthe purpose of fostering a better understanding of contemporary Japan in the United States.
After extensive renovations to the property, the Foundation opened the library and art
gallery on December 2, 1992. In October 1996, after reevaluating its activities, theFoundation terminated the art gallery operations and initiated new programs to promotebetter understanding and dialogue between the United States and Asia. The library
operations were discontinued during 2014, and the related assets were donated to othereducational and charitable organizations. Subsequently, the Foundation expanded its
research, educational, and grant programs on U.S.-Japan relations with additional grants.
The Foundation is currently renting space in the building to unrelated commercial tenants
and uses the income from the rental activities to maintain the building and support theFoundation's activities.
A description of the significant program activities of the Foundation are as follows:
Policy Research and Education – addressing issues of importance to the United States
and Japan requiring greater attention, coordination, and cooperation; organizing
programs that improve understanding of U.S.-Japan relations in the United States
through dialogue, exchanges, and outreach; engaging the American public through thenews media and the Foundation's own social media.
Japan-US. Military Program (JUMP) – conducting seminars, conferences, and outreachthrough social media to inform and connect Americans who have served or are serving
in the U.S. military in Japan to facilitate their contributions to strengthen the U.S.-Japan
relationship.
Grants – awarding grants to organizations to support projects promoting dialogue andstrengthening the U.S.-Japan relationship.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of Accounting
The financial statements of the Foundation have been prepared in accordance withaccounting principles generally accepted in the United States of America (U.S. GAAP),
which require the Foundation to report information regarding its financial position andactivities according to the following net assets classifications:
Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management
to make estimates and assumptions that affect the reported amounts and disclosures in thefinancial statements. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents consist primarily of cash on deposit and money market accounts
that are readily convertible into cash.
Restricted Cash
Cash received as endowment contribution from donor (see Note 9) is maintained in a
separate restricted cash account at a financial institution.
Tenant security deposits are held in a separate bank account in accordance with applicablestate laws and disbursed in accordance with the tenant lease agreements.
Receivables
Unconditional promises to give are recognized as grants and contributions receivable in theyear the promises are made. Receivables also consist of grant commitments, expense
reimbursements and tenant-related income and are stated at the amounts that management
expects to collect. Management evaluates such receivables and establishes an allowancefor doubtful accounts based on a history of write-offs and collections and current credit
conditions. The Foundation charges off uncollected receivables when management
determines that it has exhausted all collection efforts. Management has determined that at
March 31, 2023 and 2022, all of its receivables were collectible, and that no allowance for
doubtful accounts was required.
Property and Equipment
Acquisitions of property and equipment, including improvements and replacements, arerecorded at cost. Depreciation is provided using the straight-line method over the estimateduseful lives of 5 to 39 years for buildings and improvements and three to seven years forfurniture and equipment. Maintenance and repairs that do not improve or extend the lives of
the assets are charged to expense as incurred. When assets are sold or retired, their costand related accumulated depreciation are removed from the accounts and any gain or loss
reported in the statements of activities.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Deferred Leasing Commissions
Deferred leasing commissions consist of commissions due to the property managementcompany for locating tenants for the Foundation's rental property. Such costs are amortizedover the terms of the respective lease agreements using the straight-line method. For theyears ended March 31, 2023 and 2022, amortization of the leasing commissions totaled$59,541 and $66,711, respectively.
LeasesThe Foundation leases office equipment. The Foundation determines if an arrangement is alease at inception. Operating leases are included in right-of-use (ROU) assets – operating
and lease liability – operating on the statements of financial position.
The ROU asset represents the Foundation’s right to use an underlying asset for the leaseterm and the lease liability represents the Foundation 's obligation to make lease payments
arising from the lease. The ROU asset and lease liability are recognized at the leasecommencement date based on the present value of lease payments over the lease term. As
most of the leases do not provide an implicit rate, the Foundation uses the risk-free rate
based on information available at commencement date in determining the present value oflease payments. The ROU asset also includes the lease payments made and excludes
lease incentives. The lease terms may include options to extend or terminate the lease
when it is reasonably certain that the Foundation will exercise that option. Lease expense
for lease payments is recognized on a straight-line basis over the lease term. The
Foundation has elected to recognize payments for short-term leases with a lease term of 12months or less as expense as incurred and these leases are not included as lease liabilities
or right of use assets on the statements of financial position.
The Foundation’s lease agreement does not contain any material residual value guarantees
or material restrictive covenants.
In evaluating contracts to determine it qualifies as a lease, the Foundation considers factors
such as if the Foundation has obtained substantially all of the rights to the underlying asset
through exclusivity, if the Foundation can direct the use of the asset by making decisions
about how and for what purpose the asset will be used and if the lessor has substantive
substitution rights. This evaluation may require significant judgment.
The individual lease contract does not provide information about the discount rate implicit in
the lease. Therefore, the Foundation has elected to use a risk-free discount rate determinedusing a period comparable with that of the lease term for computing the present value oflease liability.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Long-Lived Assets
Management assesses whether indicators of impairment of long-lived assets, such as
property, equipment, and intangible assets, are present. If such indicators are present,
recoverability of these assets is determined based upon expected undiscounted future net
cash flows from the operations to which the assets relate utilizing management's best
estimates, appropriate assumptions, and projections at the time. If the carrying value isdetermined not to be recoverable from future operating cash flows, the asset would be
deemed impaired, and an impairment loss would be recognized to the extent the carrying
value exceeded the estimated fair value of the asset. Management determined that there
was no impairment to its long-lived assets during the years ended March 31, 2023 and2022.
Refundable Advances
Transfers of assets that are conditional contributions are recorded as refundable advances
until the conditions have been substantially met or explicitly waived by the donor.
Net Assets
Net assets, revenues, gains, and losses are classified based on the existence or absence ofdonor or grantor-imposed restrictions. Accordingly, net assets and changes therein areclassified and reported as follows:
Net Assets Without Donor Restrictions – Net assets available for use in general
operations and not subject to donor (or certain grantor) restrictions.
Net Assets With Donor Restrictions – Net assets subject to donor-imposed restrictions.
Some donor-imposed restrictions are temporary in nature, such as those that will be metby the passage of time or other events specified by the donor. Other donor- imposed
restrictions are perpetual in nature, where the donor stipulates those resources bemaintained in perpetuity. Donor-imposed restrictions are released when a restriction
expires, that is, when the stipulated time has elapsed, when the stipulated purpose forwhich the resource was restricted has been fulfilled, or both.
The Foundation reports contributions restricted by donors as increases in net assets without
donor restrictions if the restrictions expire (that is, when a stipulated time restriction ends or
purpose restriction is accomplished) in the reporting period in which the revenue isrecognized. All other donor-restricted contributions are reported as increases in net assets
with donor restrictions, depending on the nature of the restrictions. When a restriction
expires, net assets with donor restrictions are reclassified to net assets without donor
restrictions and reported in the statements of activities as net assets released fromrestrictions.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Revenue Recognition
Revenue from contributions and grants is recognized as income when it is unconditionallypromised. The Foundation reports gifts of cash and other assets as revenue with donor
restrictions if they are received with donor stipulations that limit the use of the donatedassets. The Foundation also reports investment income on funds with donor restrictions asrevenue with donor restrictions. When expenses in accordance with the donors’ restrictions
are incurred, net assets with donor restrictions are reclassified to net assets without donor
restrictions and reported in the statements of activities as net assets released fromrestrictions. Amounts that have not been collected as of year-end are included in grants andcontributions receivable in the accompanying statements of financial position. Conditional
contributions, that is, those with a measurable performance or other barrier, and a right ofreturn, are not recognized until the conditions on which they depend have been substantiallymet. Conditional contributions amounted to $171,078 and $1,122,380 as of March 31, 2023
and 2022, respectively.
Contributions of noncash assets are recorded at their fair values in the period received.
Contributions of services that create or enhance nonfinancial assets or that require
specialized skills, are provided by individuals possessing those skills, and would typicallyneed to be purchased if not provided by donation, are recorded at their fair values in the
period received. For the years ended March 31, 2023 and 2022, there were no contributionsof noncash assets or contributed services meeting the requirements for recognition in thefinancial statements.
The Foundation recognizes rental revenue on the straight-line basis over the terms of therespective leases.
Functional Allocation of Expenses
The costs of providing the Foundation's various programs and supporting services havebeen summarized on a functional basis in the accompanying statements of activities. The
Foundation incurs expenses that directly relate, and can be assigned, to a specific programor supporting activity. The Foundation also conducts a number of activities which benefit
both its program objectives as well as supporting services.
The statements of functional expenses present the natural classification detail of expenses
by function. Accordingly, certain expenses have been allocated among the programs andsupporting services benefited.
The expenses that are allocated include the following:
ExpenseSalaries and Employee Benefits
General Administrative
Depreciation and Amortization
Occupancy Expenses(13)

Method of Allocation
Time and Effort
Time and Effort
Square Footage
Square Footage

SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Income Taxes
The Foundation is classified as a private foundation as described in Section 501(c)(3) of theInternal Revenue Code (the Code) and is exempt from federal income taxes on its exempt
income under Sections 509(a)(3) and 170(6)(1)(A)(vi) of the Code. Contributions to theFoundation are deductible to the extent permitted by law. The Foundation is subject tocertain excise taxes on any net investment income. The Foundation is also exempt from theDistrict of Columbia's income and franchise, personal property, and sales and use taxes.
The Foundation files income tax returns in the U.S. federal jurisdiction. Its tax returns are
subject to review and examination by federal authorities. As of March 31, 2023 and 2022,
management has determined that the Foundation had no uncertain tax positions taken that
require adjustment to or disclosure in the financial statements.
Recently Adopted Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (FASB) issued the AccountingStandards Update (ASU) 2016-02, Leases (Topic 842). The new standard increases
transparency and comparability among organizations by requiring the recognition of ROU
assets and lease liabilities on the statement of financial position. Most prominent of thechanges in the standard is the recognition of ROU assets and lease liabilities by lessees for
those leases classified as operating leases. Under the standard, disclosures are required tomeet the objective of enabling users of financial statements to assess the amount, timing,and uncertainty of cash flows arising from leases.
The Foundation adopted the requirements of the guidance effective April 1, 2022 and has
elected to apply the provisions of this standard to the beginning of the period of adoption.
The Foundation has elected to adopt the package of practical expedients available in theyear or adoption. The Foundation has not elected to adopt the available practical expedient
to use hindsight in determining the lease term and in assessing impairment of theFoundation’s ROU assets.
As a result of the adoption of the new lease accounting guidance, SVA recognized on
April 1, 2022 a lease liability of $10,403, which represents the present value of theremaining operating lease payments of $10,500 discounted using the risk free rate of
1.72%, and a right-of-use asset of $10,403.
During the year ended March 31, 2023, the Foundation also adopted the requirements of
FASB ASU No. 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by
Not-for-Profit Entities for Contributed Nonfinancial Assets, which requires not-for-profits topresent contributed nonfinancial assets as a separate line in the statement of activities andprovide additional disclosures about contributions of nonfinancial assets. The adoption ofthis guidance did not have a significant impact on the financial statements.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Subsequent Events
In preparing these financial statements, the Foundation has evaluated subsequent events
for potential recognition or disclosure through October 10, 2023, the date the financial
statements were available to be issued.

NOTE 3LIQUIDITY AND AVAILABILITY
As of March 31, 2023 and 2022, the following financial assets could readily be madeavailable within one year of the statements of financial position date to meet general
expenditures:
2023
Financial Assets at Year-End:
Cash and Cash Equivalents
Restricted Cash - Endowment Fund
Grants Receivable
Accounts Receivable
Tenant Rents and Other Receivable
Total Financial Assets at Year-End$

Less: Amounts not Available to be Used
Within One Year:Net Assets with Donor Restrictions
Financial Assets Available to Meet General
Expenditures Within One Year2,551,438
8,942,508
30,47042,240
7,812
11,574,468

2022$

8,922,100$

2,652,368

3,212,393
9,396,563
25,372
67,28812,701,616

9,396,563$

3,305,053

For the purposes of analyzing resources available to meet general expenditures, theFoundation considers all expenditures related to its ongoing activities of policy research,education, grant commitments, rental operations, as well as the conduct of services
undertaken to support those activities to be general expenditures. In addition to financial
assets available to meet general expenditures, the Foundation operates with a balanced
budget and anticipates collecting sufficient revenue to cover general expenditures notcovered by donor-restricted resources.
The Foundation manages its liquidity and reserves by following three guiding principles:
operating within a prudent range of financial soundness and stability, maintaining adequate
liquid assets to fund near-term operating needs, and maintaining sufficient reserves toprovide reasonable assurance that long-term obligations will be discharged. The
Foundation's goal is generally to maintain financial assets to meet at least 30 days ofoperating expenses.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 4

PROPERTY AND EQUIPMENTThe Foundation's property and equipment consisted of the following at March 31, 2023 and
2022:
Land
Building and Improvements
Furniture and Equipment
Total
Less: Accumulated Depreciation
Property and Equipment, Net

NOTE 5$$2023
1,200,000
7,439,742
226,857
8,866,599
4,676,528
4,190,071

$

$

2022
1,200,000
7,202,842
265,977
8,668,819
4,422,238
4,246,581

FOUNDING GRANT AND ONGOING SUPPORTIn March 1991, the Foundation received an initial grant from SPF-Japan (Tokyo) in theamount of $21,655,122 for the purpose of acquiring an office building at 1819 L Street in
Washington, D.C. The building was acquired in May 1991 at a cost of $19,074,660. The
remaining proceeds were used to renovate the building and to fund the initial operations of
the Foundation.
In 1996, the Foundation recorded an impairment loss on the building in the amount of$14,630,058, as management determined that the carrying amount of the property
exceeded the estimated future cash flows expected to be received from the operations of
the property.
For the years ended March 31, 2023 and 2022, the Foundation recognized grant revenue
totaling $2,928,922 and $1,427,620, respectively, from SPF-Japan (Tokyo) to assist with
operating activities. As of March 31, 2023 and 2022 there was no grants receivable from
SPF-Japan (Tokyo).

NOTE 6RENTAL INCOME
The Foundation is the lessor of commercial space under operating leases expiring
periodically through 2029. Certain of the lease agreements include renewal periods at theFoundation's option, as well as rent holidays and scheduled rent increases. Rental income isrecognized on the straight-line method over the terms of the respective leases.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 6RENTAL INCOME (CONTINUED)
Future minimum lease payments expected to be received under the existing leases at
March 31, 2023, are as follows:Year Ending March 31,
2024
2025
2026
2027
2028
Thereafter
Total

$

$

Amount993,956
703,085
512,849
326,782
179,155
75,412
2,791,239

The Foundation's board of directors has approved the use of rental income to fund current
operations of the Foundation.
At March 31, 2023 and 2022, the cost of the property subject to rental operations amounted
to $8,639,742 and $8,402,842, respectively. At March 31, 2023 and 2022, the accumulated
depreciation for the rental property amounted to $4,523,352 and $4,240,763, respectively.
NOTE 7

GRANTSThe Foundation awarded the following grants during the years ended March 31, 2023 and2022, to support projects with a purpose to promote dialogue and strengthen the U.S.-Japan
relationship:
Delegation Travel and Events
JUMP
Strengthening the U.S. - Japan Relationship from
U.S. Perspectives
Others
Total

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$

$

2023
757,760
53,22950,848500
862,337$$2022
105,31150,63233,378
189,321

SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 7

GRANTS (CONTINUED)
The following are descriptions of the grants awarded by the Foundation:
Delegation Travel and Events – Grants were awarded to support projects to organize
events and delegation trips to Japan for congressional members and staff. There was
one grant recipient for each of the years ended March 31, 2023 and 2022.
Strengthening the U.S.-Japan Relationship from U.S. Perspectives – Grants wereawarded to organize programs and offer opportunities for students, policy experts,
congressional staff and practitioners to learn more about, and strengthen their ties to,
Japan. There were two and three grant recipients for the years ended March 31, 2023
and 2022, respectively.
JUMP – Grants were awarded to organize events and networking activities in the UnitedStates and Yokosuka, Japan for Americans who have served or are serving in the U.S.
military in Japan to update them on U.S.-Japan relations and enhance their ties toJapan. There were three and two grant recipients for the years ended March 31, 2023
and 2022, respectively.

NOTE 8NET ASSETS WITH DONOR RESTRICTIONSAs of March 31, 2023 and 2022, net assets with donor restrictions subject to expenditure for
specific purpose are available for the following program:
2023
Endowment Restricted by Donor for:Strengthening the U.S. - Japan Relationship inPartner with The Nippon Foundation$

8,922,100

2022$

9,396,563

Net assets were released from donor restrictions by incurring expenses satisfying the
purpose restrictions specified by the donors in the amounts of $691,842 and $190,517 forthe years ended March 31, 2023 and 2022, respectively.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 9ENDOWMENT FUNDS
In accordance with U.S. GAAP, net assets associated with endowment funds are classified
and reported based on the existence or absence of donor-imposed restrictions.
The Foundation's endowment funds consist of funds received from The Nippon Foundation,
which are donor-restricted but not in perpetuity. This endowment was established to support
the Foundation's program to strengthen the U.S.-Japan relationship within the Asia-Pacificcontext, placing emphasis on security and diplomacy, through exchanges, dialogue,
research, and networking.
The interest and dividends earned on the endowment funds are used for the operation of the
program, as specified by the donor.
An analysis of changes in endowment funds for the years ended March 31, 2023 and 2022
is as follows:
Endowment Net Assets, Beginning of Year
Investment Return, Net
Amounts Appropriated for Expenditure
Endowment Net Assets, End of Year

$

$

2023
9,396,563
217,379(691,842)
8,922,100

$

$

2022
9,582,288
4,792(190,517)
9,396,563

Spending Policy and Use of Endowment
The Foundation shall appropriate for use the endowment and its interest and/or dividends
solely for the purpose of enhancing program function to deepen the understanding andstrengthen the relationship between the U.S. and Japan within the Asia-Pacific context.
Risk Parameter
The endowment is administered by an outside professional investment firm and resides in a
separate account.
Endowment Activity
Utilizing the endowment funds, the Foundation launched a new program named the “USJapan NEXT Alliance Initiative” in October 2021, and in March 2023, the program completed
its first full fiscal year of activity. Throughout the year ended March 31, 2023, the Foundation
worked to connect US-Japan policy makers and issue area specialists by organizing eleveninvite-only roundtable dialogues (in-person, virtual, and hybrid) and one open public event
related to economic security, technology, foreign policy, and bilateral defense cooperation.
The Foundation also composed not-for-attribution summaries of the roundtables for broader
public dissemination on the Foundation website, published eighteen articles and short policy
papers by NEXT staff, non-resident scholars, and event participants, and published twentyfour editions of the bi-weekly US-Japan Alliance Digest. NEXT Senior Director Jim Schoffalso spoke on US-Japan relations at sixteen events organized by other groups, and heengaged in nineteen interviews with media outlets. During the years ended March 31, 2023
and 2022, the project incurred costs of $691,842 and of $190,517, respectively.

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SASAKAWA PEACE FOUNDATION USA, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2023 AND 2022

NOTE 10 CONCENTRATIONSThe Foundation places its cash and cash equivalents, which may at times be in excess ofFederal Deposit Insurance Corporation (FDIC) insurance limits of up to $250,000, with highcredit quality financial institutions. The amounts in excess of FDIC insurance limits were
$10,825,311 and $11,890,028 as of March 31, 2023 and 2022, respectively.
The Foundation receives rental income from office space leased in Washington, D.C., which
is subject to the normal fluctuations and risk associated with the real estate market in thisarea.
During the years ended March 31, 2023 and 2022, the Foundation received a significant
portion of its grant income from SPF-Japan (Tokyo) (see Note 5).
NOTE 11 FEDERAL EXCISE TAXThe Foundation is subject to federal excise tax on net investment income. During the years
ended March 31, 2023 and 2022, the Foundation earned net investment income of$366,186 and $349,549, respectively. Federal excise tax incurred during the years ended
March 31, 2023 and 2022, amounted to $5,090 and $4,859, respectively. At March 31, 2023
excise tax liability amounted to $159 and at March 31, 2022, prepaid taxes amounted to$273.
Additionally, the Code requires minimum qualifying distributions of funds related to theirexempt purpose. During the years ended March 31, 2023 and 2022, the Foundation madequalifying distributions of $3,861,700 and $1,763,485, respectively, which were in excess ofthe minimum distributable amounts of $1,151,347 and $1,123,503, respectively. The Codeallows for excess distributions to be carried forward to reduce the minimum distributions
required in future years. At March 31, 2023, the Foundation had excess distribution
carryforwards of $8,385,325.
NOTE 12 RETIREMENT PLAN
The Foundation has a defined contribution 401(k) plan. Substantially all employees are
eligible to participate. The Foundation made contributions of $37,528 and $29,910 to theplan for the years ended March 31, 2023 and 2022, respectively.

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