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        <ExplanationTxt>During the tax year, SOUTHERLY INC. entered into an agreement with Grist, a nonprofit organization, whereby SOUTHERLY, INC. transferred the majority of its remaining cash assets to Grist. These funds were restricted to support community engagement and journalism activities in alignment with SOUTHERLYs exempt purpose. This transfer was made pursuant to a contract executed between the two organizations and reflects the organizations decision to discontinue independent operations and transfer resources to Grist for continuation of mission-related activities. Accordingly, the transfer is reported on Part I, Line 16 under Other Expenses and Schedule N.</ExplanationTxt>
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