Worcester Natural History Society Inc

“The ecotarium is exempt from federal and state income taxes under section 501(c)(3) of the internal revenue code ("irc") and accordingly, no provision for income taxes has been recorded in the accompanying financial statements. The ecotarium is subject to federal and state income taxes on unrelated business income, if any. The ecotarium files informational tax returns as required by the irc. The ecotarium accounts for uncertain tax positions in accordance with fasb asc topic income taxes. This topic prescribes a recognition threshold and measurement process for financial statement recognition of uncertain tax positions taken or expected to be taken in a tax return. This topic also provides guidance on recognition, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At december 31, 2024 and 2023, management believes that the ecotarium has no material uncertain tax positions.”

“Cost of goods sold expense included in part viii”

“Cost of goods sold expense included in part viii”

“The ecotarium maintains a collection of minerals and preserved plants and animals for public exhibition and a resource for scientific study.”

“The ecotarium's endowment includes both donor-restricted endowment funds and funds designated by the board to function as endowments. 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. As required by u.s. Gaap, the ecotarium classifies as net assets with donor restrictions (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 as net assets with donor restrictions carrying a perpetual restriction is classified as net assets with donor restrictions until those amounts are appropriated for expenditure by the ecotarium 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 ecotarium can consider the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds: the duration and preservation of the fund; the purposes of the ecotarium and the donor-restricted endowment fund; general economic conditions; the possible effect of inflation and deflation; the expected total return from income and the appreciation of investments; other resources of the ecotarium; and the investment policies of the ecotarium. The ecotarium has adopted investment and spending policies for its board-designated and other 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 of trustees, the endowment assets are invested in a manner that is intended to produce results that meet or exceed the price and yield results of the relevant equity and bond indexes while assuming a moderate level of investment risk. The ecotarium targets its endowment funds, over time, to provide an average rate of return of approximately 5% over the consumer price index (cpi), annually. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the ecotarium 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 ecotarium normally invests in institutional mutual funds that target a diversified asset mix that places a greater emphasis on equity-based investments to achieve its longterm return objectives within prudent risk constraints. The ecotarium has a policy of appropriating for distribution each year 4% - 4.5% of its endowment fund's average fair value over the prior twelve quarters through the end of the third quarter preceding the year in which the distribution is planned. In establishing this policy, the ecotarium considered the long-term expected return on its endowment. The appropriation is first deducted from appreciation on donor restricted endowment funds, and then taken from board designated funds, if necessary. This is consistent with the ecotarium's objective to maintain the purchasing power of its board-designated endowment. In 2024 & 2023 the ecotarium appropriated $500,000 and $1,400,000 respectively, from the endowment in accordance with the spending policy.”