Summary

The International Center for Law, Trade and Diplomacy, Inc. ("ICLTD") was incorporated on March 17, 1997. It received its Advance Letter Ruling from the Internal Revenue Service qualifying it as a tax exempt 501(c)(3) public charity for tax purposes in October, 1997. It was registered with the New York State Attorney General's Charities Bureau in January, 1998. The ICLTD's 1997 Fiscal Year lasted three months, closing on June 30, 1997. During the 1997 Fiscal Year, the President expended about $726 in personal funds to defray the day to day operating costs of the organization. That expenditure was reviewed and deemed a contribution to the organization pursuant to Board of Directors Resolution 014. During the 1998 Fiscal Year, insider cash contributions in the amount of approximately $6,885 have been made to defray the day-to-day operating costs of the ICLTD and to upgrade its computer equipment. Of that amount, $3,046 was deemed a contribution by the President pursuant to Board of Directors Resolution 014. Non-cash contributions have been made to the ICLTD in the form of corner, room office space located at 155 West 70th Street, Apartment 4F, New York, N.Y. 10023. The ICLTD has also been afforded access to a computer and printing facilities.

During its first year of operation the ICLTD has incurred relatively little debt and has thus been able to meet day-to-day expenses through periodic infusions of cash by directors. Expenditures deemed contributions were itemized in detail and were reviewed for reasonableness by the organization's Board of Directors. Directors' cash contributions were made entirely out of the President's personal funds and were reviewed and approved by the non-interested members of the Board. Contributing to the ICLTD's virtually debt-free condition was that all legal/regulatory compliance work of the organization was done in-house, with two firms donating legal and accounting services. Informational materials about the ICLTD were also developed in-house.

As described in its Mission Statement, the purpose of the organization is principally to develop long-range programs on international trade, and politics. In its first year, the ICLTD laid the ground work for three discussion group programs that are expected to be implemented over the next six months--The Global Reach Program on Political and Economic Development in Africa for High School Students, The Global Reach Program on Law and Foreign Policy and the Program on Canadian Studies. The ICLTD is also developing a data base--INFODAT--which is expected to be of substantial use to students and educators interested in a wide range of trends in international affairs, including country conditions. A related data base project, the Global Reach Information System on International Risk Assessment, is expected to meet the needs of small to mid-size businesses interested in international trade. It is expected that in the long term this latter project will serve as an income generating resource for the organization. In general, these programs and data base projects are expected to serve as bases for developing educational materials and interactive media that will promote interest and engagement among a wider than traditional segment of the community. Because of its emphasis on institution building as opposed to single event programming, the ICLTD functions like a research and development firm, trying to develop new products and approaches to serve long-range needs.

Because the ICLTD's registration with the State Attorney General's Charities Bureau did not become effective until the middle of January, 1998, the ICLTD was not able to engage in any fund-raising activities until rather recently. On this basis, the organization is confident that the need for periodic insider contributions will diminish and be replaced by a reliable and growing base of public support over the next several months. Because expenses of the ICLTD have been minimal, we are confident that the insider contributions made so far will not impact upon the Internal Revenue Service's final assessment of the organization's degree of public support.

Because the ICLTD is in the initial phase of its development it expects to receive contributions at an accelerated rate as its projects evolve. In the short-term, the ICLTD is choosing funding targets selectively, to minimize fund-raising costs, and to enhance the prospects of developing long-term institutional support for itself and its projects. Targets will include individuals with a history of large-scale philanthropy in this area, financial institutions, businesses, and foundations. Emphasizing accessibility and efficiency, the organization expects to be able to identify and promote the interests of its contributors consistent with the organization's goals, and to use funds effectively and efficiently to develop programs and provide services with long-range potential and broad appeal.

For those interested in reviewing the ICLTD's composite fiscal 1997&1998 report, please refer to the ICLTD's web site.

Stated in U.S. Dollars

INCOME/EXPENSE STATEMENT

INCOME (1)

BALANCE SHEET

JULY 1, 1998

LIABILITES

FUND BALANCES AND NET ASSETS

(1) Depreciable assets comprise a fax machine, a Presario Compaq Computer, Microsoft Professional Office Software and Viroscan. The cost of this equipment will be depreciated over a five year period.

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