Boston Lyric Opera Company

“Blo has adopted investment and spending policies for endowment assets. Endowment assets include those assets of donor restricted funds that blo must hold in perpetuity. Under this policy, as approved by the board of directors, the primary long-term financial objective is to preserve the real (i.e. Inflation adjusted) value of the endowment fund portfolio. This objective is measured on an intermediate and long-term basis (three, five and ten years). The secondary financial objectives are to provide within the parameters of moderate risk; 1) annual income, defined as total return from interest, dividends and appreciation in excess of inflation and; 2) long-term growth of the assets. To satisfy its objectives, blo relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized gains) and current yield (interest and dividends). Blo targets a diversiifed asset allocation that includes equities and fixed income investments within prudent risk constraints. The investing and spending policies adopted incorporate the transfer of a portion of the value of endowment assets to the operating budget subject to various factors. The spending policy is calculated as follows: blo may, under the advisement of the finance committee, transfer to the operating budget on a quarterly basis as determined by the calculation for the quarter, an amount equal to a percentage established by the board each fiscal year using a 12-quarter rolling average.”

“Blo is exempt from federal income taxes under section 501(c)(3) of the internal revenue code. Asc topic 740 addresses the accounting for uncertainty in income taxes and establishes for all entities, including not-for-profit entities such as blo, a minimum threshold for financial statement recognition of the benefit of positions taken or expected to be taken in filing tax returns (including whether an entity is taxable in a particular jurisdiction). Blo recognizes tax benefits only if it is more likely than not that a tax position (including blo's assertion that its income is exempt from tax) will be sustained upon examination. No liability for uncertain tax positions was recorded as of june 30, 2024 or 2023. Blo files income tax returns in the u.s. Federal jurisdiction and in the state of massachusetts.”