Internal Revenue Service Audit of FY2002 Records

December 22, 2003

The Nature Conservancy has been notified via letter from the Department of Treasury that the Internal Revenue Service would undertake an examination of the Conservancy's fiscal year 2002 IRS Forms 990 and 990-T.

The IRS Form 990 and 990-T are forms most charitable organizations recognized by the IRS are required annually to file.

The IRS letter provided no information as to what, if any, areas beyond the FY2002 IRS Form 990 and 990-T the examination might focus.

The Nature Conservancy will fully cooperate and actively work with the IRS to provide requested documents and other materials in a timely manner. The Nature Conservancy will provide IRS staff with workspace at The Nature Conservancy's Worldwide Office and access to equipment and telephones as needed.