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        <FormAndLineReferenceDesc>SCHEDULE F, PAGE 5, PART V</FormAndLineReferenceDesc>
        <ExplanationTxt>CFC MAKES GRANTS TO A RELATED ORGANIZATION THAT IS A UNITED KINGDOM REGISTERED CHARITY 1072199, CARE FOR CHILDREN-UK (CFC-UK). CFC-UK IS ORGANIZED TO RELIEVE HARDSHIP, DISTRESS AND SICKNESS IN ORPHANED AND ABANDONED CHILDREN IN ASIA. CFC-UK HAS OFFICES AND STAFF IN THE UK AND SEVERAL COUNTRIES IN ASIA. THE ORGANIZATION WORKS WITH NATIONAL AND LOCAL GOVERNMENT AUTHORITIES ON PROJECTS TO IMPROVE CARE FOR ORPHANED AND ABANDONED CHILDREN AND ENABLE FAMILIES TO PROVIDE FOSTER CARE FOR THESE CHILDREN. CFC MAKES PERIODIC GRANTS FOR SPECIFIC PROJECTS TO BE CARRIED OUT BY CFC-UK BASED ON A MEMORANDUM OF UNDERSTANDING (MOU). THE MOU PROVIDES FOR REGULAR FINANCIAL REPORTING BY CFC-UK ON ITS USE OF FUNDS, PROVISION OF AUDITED FINANCIAL STATEMENTS AND ANNUAL REPORTS FOR CFC-UK, AND REPORTS ON SPECIFIC PROJECTS. CFC OFFICERS AND DIRECTORS TRAVEL TO INSPECT FACILITIES AND PROJECTS. CFC-UK AGREES TO MAKE ITS BOOKS AND RECORDS AVAILABLE TO CFC. CFC-UK AGREES THAT NO PORTION OF FUNDS DONATED WILL BE USED TO SUPPORT OR PAY FOR ANY ACTIONS THAT ARE FORBIDDEN TO BE CARRIED OUT BY A US NONPROFIT. ALL GRANTS TO CFC-UK ARE USED FOR PROGRAM SERVICES. WORKING THROUGH CFC-UK ENABLES CFC TO OPERATE WITH FEW STAFF AND OVERHEAD. THOUSANDS OF CHILDREN HAVE BEEN HELPED BY CFC AND THE GOAL IS TO PLACE ONE MILLION ORPHANED AND ABANDONED CHILDREN IN FOSTER OR ADOPTIVE FAMILIES.</ExplanationTxt>
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        <ExplanationTxt>COPIES OF FORM 990 AND AUDITED FINANCIAL STATEMENTS WERE SUBMITTED TO AND REVIEWED BY THE APPROPRIATE BOARD MEMBERS FOR THEIR FINAL APPROVAL.</ExplanationTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>FORM 990, PAGE 6, PART VI, LINE 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>THE TREASURER WILL PERFORM AN ANNUAL SURVEY OF POTENTIAL CONFLICTS OF INTEREST AND RELATED PARTY TRANSACTIONS BY REQUIRING THAT EACH BOARD MEMBER, OFFICER, AND SENIOR MANAGER COMPLETE AN ANNUAL CONFLICT OF INTEREST QUESTIONNAIRE. THESE REPORTS WILL BE REVIEWED BY THE TREASURER AND, AS APPROPRIATE, BY LEGAL COUNSEL, AUDITORS, OR ANOTHER INDEPENDENT PERSON. THE BOARD (OR A SUBCOMMITTEE OF THE BOARD) OR A DISINTERESTED MEMBER OF MANAGEMENT WILL FIRST EVALUATE ANY POTENTIAL SITUATION TO DETERMINE WHETHER THERE IS AN ACTUAL CONFLICT OF INTEREST AND WHETHER IT IS MATERIAL. (A CONFLICT IS CONSIDERED MATERIAL IF IT MIGHT AFFECT, OR MIGHT REASONABLY BE THOUGHT BY OTHERS TO AFFECT, THE JUDGEMENT OR CONDUCT OF THE INTERESTED PARTY.) IF SO, A FURTHER EVALUATION OF THE TRANSACTION WILL OCCUR.</ExplanationTxt>
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        <ExplanationTxt>CFC-US FORM 990 AND FORM 1023 ARE AVAILABLE ON REQUEST.</ExplanationTxt>
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</Return>