Fine Arts Society of Indianapolis

“The organization has capitalized $48,529 for its music collection and other audio assets based on the estimated fair value of the donated assets at the date of gift. The organization has determined the music collection has an undeterminable estimated life and, accordingly, the assets are subject to an annual evaluation of the carrying value and impairments, if any, and are recorded as a reduction in carrying value and charged to earnings in the year such impairment is determined. No impairment has been recognized for the year ended december 31, 2024.”

“The organization's board designated fund has been created and designated by the board of directors. The fund has been set aside by the board of directors for the purpose of supporting the operating expenses of the organization.”

“Cmi is determined by the internal revenue service to be tax exempt under section 501(c) (3) of the internal revenue code. As a result, contributions made to cmi qualify as charitable deductions as described in section 170(c) of the code. Cmi is classified as an organization that is not a private foundation under section 509(a) of the code. Therefore, no provision for income taxes is included in the financial statements. However, cmi would be subject to tax on income unrelated to its tax-exempt purpose. Professional accounting standards require cmi to recognize a tax liability only if it is more likely than not the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax liability greater than 50% likely of being realized on examination. For tax positions not meeting the more-likely-than-not test, no tax liability is recorded. Cmi examined this issue and determined there are no material contingent tax liabilities or questionable tax positions. Tax years ended after december 31, 2020 are open to audit for federal and state purposes.”