Lowell Art Association D/B/A Whistler House Museum of Art

“The museum maintains collections of paintings and other works of art for public exhibition and education. Each of the items in the collection is catalogued, preserved, and cared for. Activities verifying their existence and assessing their condition are performed continuously. In accordance with gaap, the mueum has been capitalizing its collections prospectively since 7/1/1997. Donated art objets recieved since that date have been recorded at their fair market values at the time of donation, and purchased objects have been recorded at their cost. Proceeds from the sale of items in the collection are used to purchase other items for the collection.”

“The museum has been recognized as exempt from federal income taxes under section 501(c)(3) of the internal revenue code and therefore has made no provision for federal income taxes in the accompanying financial statements. In addition, the museum has been determined by the internal revenue service not to be a private foundation within the meaning of section 509(a) of the internal revenue code. The museum is required to evaluate and disclose tax positions that could have an effect on their 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 governmental agencies for a period of three years after filing. All of the museums 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 qualify as a tax-exempt not for profit entity.”