Cape Ann Museum Inc.

“Note 5 of financial statements- collections: "collections consist of works of art, objects, artifacts, and records reflective of cape ann and its heritage. Collection items, whether purchased or donated, are not capitalized because their intrinsic value is not susceptible to reasonable estimation. The collection is carried at $1.00. It is the policy of the museum that proceeds from the sale of collection items will be used to purchase additional collection items or to maintain or preserve the collection. New acquisitions are then charged as collection acquisitions. The collections of the museum are its primary asset and their display and accessibility to the public are two of its primary objectives. A collections committee monitors the acquisition and disposition of collection items. The committee and management are responsible for recommending and implementing measures to enhance the conservation, maintenance and security of the collection."”

“See description for part iii, line 1a, regarding the description of the organization's collections.”

“The restricted endowments and board designated endowment provide income to support current operations and are held to provide financial security in the future.”

“The museum has been granted tax-exempt status inder the internal revenue code section 501(c) (3) and is therefore generally exempt from federal and state income taxes. Accordingly, no provision for income taxes has been provided in the accompanying financial statements. The museum is not a private foundation.the museum is required to evaluate or disclose tax positions that could have an effect on the museum's financial statements. The museum reports its activities to the internal revenue service and to the commonwealth of massachusetts on an annual basis. These informational returns are generally subject to audit and review by the government agencies for a period of three years after filing. Substantially all of the museum's income, expenditures and activities relate to its exempt purpose, therefore, management has determined that the museum is not subject to unrelated business income taxes and will continue to qualifiy as a tax-exempt not-for-profit entity.the museum has filed all of its known required returns in a timely manner including, as permitted, allowed extensions. As of march 31, 2024, the return of organization exempt from income tax on form 990 for the years after 2020 remain open to examination by the internal revenue service and the massachusetts attorney general's office.”