Nantucket Maria Mitchell Association Inc

“As allowed by accounting principles generally accepted in the united states of america and following the practices of many museums, the association has not capitalized its collection of items of historical nature and other related objects purchased or donated. The collection is held for public exhibition, education, or research in furtherance of public service rather than financial gain. The association continually reviews its collection and may deaccess or acquire additional items. Expenditures for additional collection items are presented as a reduction in the appropriate class of net assets. Proceeds from deaccessions are reflected as increases in unrestricted net assets.”

“The association owns and operates two observatories, an aquarium, a natural science museum, an historic house, and archives and special collections in their research library. Their properties serve as active research centers, housing for scientific collections, and forums for public education programs.”

“The association's endowment consists of individual donor restricted funds established for a variety of purposes. Its endowment includes both donor restricted endowment funds and funds designated by the association 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 generally accepted accounting principles, the association 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 association 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 association 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 organization 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 organization - the investment policies of the organization. The association 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, the endowment assets are invested in a portfolio of debt and equity securities with the objective of achieving long-term capital appreciation while moderating the level of investment risk. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the association relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest, dividends and net rental income). The association has invested in debt and equity securities that target a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term return objectives within prudent risk constraints. The association has a policy of appropriating for distribution each year 5% of the three-year average fair market value of the endowment calculated as of june 30 of the three years preceding the year in which the distribution is planned. In establishing this policy, the association considered the long-term expected return on its endowment. This is consistent with the association'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 association to retain as a fund of perpetual duration. In accordance with generally accepted acounting principles, deficiencies of this nature are reported in unrestricted net assets. Such deficiencies amounted to $114,922 and $464,351 as of december 31, 2013 and 2012, respectively.”

“Management annually reviews for uncertain tax positions along with any related interest and penalties and believes that the association has no uncertain tax positions that would have a material adverse effect, individually or in the aggregate upon the association's statements of financial position, or the related statements of activities, or cash flows.”

“Expenses associated with special events 19,451. Purchases for resale 6,811.”

“Expenses associated with special events 19,451. Purchases for resale 6,811.”