Memphis Botanic Garden Foundation Inc

“In conformity with the practice of many not-for-profit organizations, items donated for use in the permanent or teaching collections of the foundation are not included in the statement of financial position or statement of activities.”

“Sculptures are displayed to engage, enrich, and transform the public's exposure by presenting and encouraging artistic endeavors.”

“The foundation's endowment consists of four individual funds established for a variety of purposes. Net assets associated with endowment funds, are classified and reported based on the existence or absence of donor-imposed restrictions. The board of trustees of the foundation has interpreted the state prudent management of institutional funds act ("spmifa") as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the foundation in a manner consistent with the standard of prudence prescribed by spmifa. The foundation generally appropriates and spends the temporary restricted assets in the same year; therefore, there are no temporarily restricted endowment funds at year end. As of june 30, 2019, all of the foundation's endowment funds were permanently restricted. The foundation has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. At june 30, 2019, all of the endowment funds are invested in the community foundation as further discussed in note 4.”

“The foundation is a tax-exempt organization under section 501(c)(3) of the internal revenue code and has been determined to be an organization that is not a private foundation. However, the foundation is subject to unrelated business income taxes, related to the garden concert series and facility rentals. The foundation has net operating loss carry forwards of approximately $3,300,000 expiring beginning in 2031. The foundation has not recorded a deferred tax asset related to the operating loss carryforwards as management does not expect to utilize them prior to their expiration. The foundation has determined that it does not have any material uncertain tax positions as of june 30, 2019.”

“Rental expense 620,298. Special event expense 2,772,057. Cost of goods sold 34,379.”

“ROUNDING 2.”

“Rental expenses 620,298. Special event expense 2,772,057. Cost of goods sold 34,379.”

“Building depreciation expense 290,041. Afs net income difference -307.”