Worcester Art Museum

“As allowed by accounting principles generally accepted in the united states of america and in conformity with the practices followed by many museums, the museum has not capitalized its collection of art objects and other collection items purchased or donated. The collection is held for public exhibition and education rather than for financial gain. The museum continually reviews its collection and may deaccession or acquire additional items. Expenditures for additional collection items are presented as a reduction in the appropriate class of net assets. The museum has established a policy whereby proceeds from items deaccessed are utilized to acquire other items for collection.”

“The worcester art museum's collections are comprised of art objects/paintings,etc. That are held for exhibition and education, furthering the organization's exempt purpose by providing various exhibits that may be viewed by the public to further enhance their knowledge and appreciation of art and to provide valuable research and informational tools for students of all ages.”

“The museum's endowment consists of 75 individual donor restricted funds established for a variety of purposes. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed or legal restrictions. Endowment funds include invested gifts and uninvested cash. As required by generally accepted accounting principles, the museum classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the museum in a manner consistent with the standard of prudence prescribed by state law. In accordance with the uniform prudent management of institutional funds act, the museum can consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment fund; general economic condition; the possible effect of inflation and deflation; the expected total return from income and the appreciation of investments; other resources of the museum; and the investment policies of the museum. The museum has adopted investment and spending policies for its endowment assets that attempt to provide a predictable stream of funding for its programs while seeking to maintain the purchasing power of the endowment assets. Under this policy, as approved by the board, the endowment assets are invested in a manner that will achieve results over the long-term that compare favorably with those of other endowments and foundations of similar size, professionally managed portfolios and of appropriate market indexes. Actual returns in any given year may vary from these benchmarks. To satisfy its long-term rate-of-return objectives, the museum relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The museum has invested in a portfolio that targets a diversified asset allocation, placing a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The museum has a policy of appropriating for distribution each year 5.75% of its general endowment fund's average fair value over the prior five years preceding the year in which the distribution is planned. In establishing this policy, the museum considered the long-term expected return on its endowment. This is consistent with the museum's objective to maintain the purchasing power of its endowment. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor imposed restrictions require the museum to retain as a fund of perpetual duration. In accordance with generally accepted accounting principles, deficiencies of this nature are reported in unrestricted net assets. There were no deficiencies as of august 31, 2014.”

“The museum qualifies as a tax-exempt, nonprofit organizaion under section 501(c)(3) of the internal revenue code. Accordingly, no provision for income tax is required. Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the museum has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the museum's statements of financial position, or the related statements of activities, or cash flows. The museum files income tax returns in the u.s. Federal jurisdiction. The museum is no longer subject to u.s. Federal income tax examinations by tax authorities for years before 2011.”

“Cost of goods sold 224,333. Rental expenses 9,411. Special event expenses 115,315.”

“Cost of goods sold 224,333. Rental expenses 9,411. Special events expense 115,315.”

“The museum qualifies as a tax-exempt, nonprofit organizaion under section 501(c)(3) of the internal revenue code. Accordingly, no provision for income tax is required. Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the museum has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the museum's statements of financial position, or the related statements of activities, or cash flows. The museum files income tax returns in the u.s. Federal jurisdiction. The museum is no longer subject to u.s. Federal income tax examinations by tax authorities for years before 2011.”