Herreshoff Marine Museum

“The collection, which was acquired through purchases and contributions since the Organization's inception, is not recognized as an asset on the Statement of Financial Position. The collection consists of items of historical significance that are held by the Organization to be preserved and protected. The collection, which consist of yachts, designs, books, photos and other memorabilia is made available to the general public for study and viewing. Purchases of collection items are recorded as decreases in unrestricted net assets in the year acquired, or as decreases in temporarily restricted or permanently restricted net assets if the assets used to purchase the item are restricted by the donor. The Organization's policy is to provide resources to ensure the collection is protected and preserved in accordance with the policies of the American Association of Museums.”

“The Herreshoff Marine Museum and America's Cup Hall of Fame are dedicated to the education and inspiration of the public through the presentation of the history and innovative work of the Herreshoff Manufacturing Company and the America's Cup Competition. It is the policy of the Organization to collect and preserve objects, documentary materials and related intellectual property that may be used for exhibitions, interpretation, research, or other applications in support of the Mission. The obligation of the Organization to its collection is paramount. The Organization derives its general purpose and use to the general public from its collection, which is an essential part of the Herreshoff Manufacturing Company and the America's Cup record.”

“The Organization's endowment fund is generally donor restricted to support the preservation of the collection and provide operational support in accordance with the donor stipulations.”

“The Organization is generally exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and has been determined not to be a private foundation. The Organization is also exempt from State of Rhode Island income tax. Therefore, no provision for income taxes has been made in the accompanying consolidated financial statements. There were no significant differences in the reporting of revenues and expenses for financial statement and income tax reporting purposes. The Organization follows the guidance in FASB Accounting Standards Codification (ASC) Topic 740, Income Taxes relating to uncertain tax positions. The Organization deems its not-for-profit status and the identification and reporting of unrelated business income and the allocation of related expenses to this unrelated business income to be tax positions. The Organization also considers self-dealing, excess business holdings, certain investment activities and specific types of expenditures to put the Organization at risk for significant punitive tax assessment. The Organization continually evaluates these tax positions in light of changes in tax law, interpretation and new authoritative rulings. The Organization evaluates tax positions taken, or expected to be taken, in its tax returns to determine whether the tax positions are more-likely-than-not to be sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold, along with accrued interest and penalties thereon, are recorded as a liability and expense in the current year financial statements if significant. Accounting principles for risk and uncertainties in accounting for income taxes, including temporary differences between tax and financial accounting basis of assets and liabilities and tax benefits of tax positions are used in the preparation of the Organizations tax returns. The Organization reports tax related interest and penalties, if any, as a component of management and general expenses. As of December 31, 2014 and 2013, there were no accrued interest and penalties outstanding associated with uncertain tax positions. The Organization will file not-for-profit tax returns and the Subsidiary corporate tax returns in the U.S. federal jurisdiction, and the State of Rhode Island where they operate and solicit funds. The Internal Revenue Service (IRS) and the State of Rhode Island have not requested examination of open tax years of 2013, 2012 and 2011. The State of Rhode Island has a statute of limitations of three (3) years. The Organization and Subsidiarys U.S. federal and State of Rhode Island income tax returns prior to December 31, 2011 are closed. The Organization is subject to a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. At December 31, 2014 and 2013, the Organization believes that it has no significant uncertain tax positions within any of its open tax years.”