PLANET AID, INC.
NOTES TO FINANClAL STATEMENTS
DECEMBER 31, 2009 AND 2008
(Continued)

(1)

OPERATIONS, NONPROFIT STATUS AND SIGNIFICANT ACCOUNTING POLICIES
(Continued)

SIGNIFICANT ACCOUNTING POLICIES (Continued)
Subsequent Events
The preparation of financial statements in accordance with U. S. GAAP requires management to
disclose the date through which subsequent events have been evaluated for possibie recognition or
disclosure in the accompanying financial statements. Subsequent events are transactions or events
that occur after the statement of financial position date, but before the financial statements are
issued or available to be issued. The accompanying financial statements include the evaluation of
subsequent events that have occurred through May 11, 2010, which is the date the financial
statements were available to be issued.

(2)

RELATED PARTY TRANSACTIONS
Certain directors and members of senior management are directors or employees of other
organizations with which the Organization does business. The Board of Directors of the
Organization has adopted a conflict of interest policy requiring full disclosure of possibie conflicts.
The policy established that Board members, senior management and employees can not participate in
decisions where their personal interests and those of the Organization may conflict.
The Organization is a member of "The Federation for Associations connected to the International
Humana People to People Movement" (the Federation). The Federation is a not-for-profit
membership organization established under the laws of SwitzerIand. The Federation coordinates
funds raised by its members with the needs of the numerous international aid programs, assists with
program development and training of staff through workshops and conferenees, and delivers services
in the areas of administration and supervision. The Organization's Chairman was a member ofthe
Board of Directors of the Federation until October 31, 2009. The Organization paid annual
membership fees of $927,854 and $1,068,490 to the Federation in 2009 and 2008, respectively,
based on a formula outlined in the membership contract agreement. In addition, the Organization
donated $273,337 and $181,986 to programs run by the Federation in 2009 and 2008, respectively.
One of the Organization's Board of Directors is also a Board member of two other not-for-profit
organizations in the United States of America. The Organization exchanged services with one
agency totaling $3,250 and $53,541 during 2009 and 2008, respectively. These services were for
assistance with placing collection boxes at businesses throughout the United States of America.

11