Preserve Rhode Island

“The organization has a collection of invaluable works of art, personal items and historical furnishings which it has accumulated since its inception. In conformity with accounting policies generally followed by museums, the value of the organization's collections is excluded from its statement of financial position and gifts of collections are excluded from the statement of activities. Purchases of collections are recorded as decreases in net assets on the statement of activities. There were no changes in the composition of the organization's collections for the years ended december 31, 2023 and 2022. The net proceeds generated by the disposal of an item of the collection shall be placed into a restricted fund for direct collection care, that is, for direct costs associated with the storage or preservation of the collection, or, when so voted by pri trustees, for acquisitions to the collection. The organization does not consider historical buildings, restorations and related improvements as part of its collections and they have been capitalized at cost or at their appraised fair value on the date of their gift and depreciated over their estimated useful lives.”

“Preserve rhode island maintains a collection of historical and art objects associated with the governor henry lippitt house museum. Most of the collection are objects directly related to historical occupants of the house; a few items are appropriate to the victorian time period. Preserve rhode island uses the collection to interpret the site's significance and history: the material culture tells interesting stories about the past, particulary about daily life in a victorian mansion.”

“Rental expenses netted with form 990 revenue 51,674. Special events expenses netted with form 990 revenue 45,579.”

“Rental expenses netted with form 990 revenue 51,674. Special events expenses netted with form 990 revenue 45,579. Change in accounting method - see explanation below 1,482,171.”

“In accepting the donation of an easement, pri is taking on a permanent responsibility to monitor and enforce the terms. Pri has established an easement stewardship fund that pools cash donations received in connection with all easements. Income from this fund supports pri's annual costs to monitor easements. The fund can be tapped for purposes of legal defense and enforcement. Each easement describes an inspection schedule including how and when pri will monitor the property. When the easement is recorded, pri and the owner attest to a "baseline documentation report" that accurately describes the current conditions of the property. Pri meets on site with the owner on at least an annual basis to assure compliance with the terms of the easement, referring to the baseline documentation report to assess possible changes and alterations. During the visit, pri inspects the property, discusses site and historic building conditions as well as conservation and preservation concerns along with future plans for the property. When major rehabilitation is underway, pri may conduct more frequent inspections. To the greatest extent possible, pri acts as a resource for the property owner, offering technical support, referrals, and general historic preservation guidance to assist owners to keep their historic and conservation property in good condition into the future. If it is found that the terms of the easement have been violated, the easement document lays out the necessary steps for corrective action.”

“In 2023, the organization's board approved to change its accounting policy effective december 31, 2023 to adopt generally accepted accounting principles where a not for profit organization is not required to capitalize items that qualify as works of art, historical treasures or similar type assets. Implementing this change in accounting requires two changes to the organization's financial presentation. First, the removal of collections and exhibits: these items of the collection are no longer treated as fixed assets, thus removing that carrying value of $200,261 from the statement of financial position. Second, previously the organization included its historic buildings being in the collection, accounted for as fixed assets. Now the organization's historic buildings are treated as depreciable assets. In previous financial statements, the acquisition of three historic buildings, walker house, dexter house and lippitt house, were accounted for as fixed assets. Now the three buildings are depreciable. Because preserve ri has owned the buildings since the 1980s, acquisition has by now fully depreciated. Today the organization's depreciation schedule includes improvements, largely conducted over the last 15 years, such as roof replacements and other substantive capital improvements, and these improvements are accounted for following standard depreciation schedules. This change required the recording of $1,281,910 in accumulated depreciation of buildings and improvements that were previously undepreciated. The net result of this change in accounting method results in a one-time charge of $1,482,171 in the statement of activities for the year ending december 31, 2023.”