Historic Hawai'I Foundation

“Preservation easements are legally binding documents, which require that historic properties be preserved and maintained. In august 2011, a preservation and conservation easement for the fred c. Baldwin memorial home (home) in makawao, maui, hawaii, was donated to the foundation. The purpose of the easement was to assure that the architectural, historic, cultural, and aesthetic features of the building's exterior will be retained and maintained forever substantially in their appearance and condition as they exist on the effective date of the easement for conservation and preservation purposes, and to prevent any use or change of the easement area that will significantly impact or interfere with the visual buffer that the easement area creates around the home. The foundation, as holder of this easement, is charged with making sure the home's exterior is preserved in substantially the same or better condition as existed on the effective date of the easement; however, the owner of the home will decide how it is to be used and will be responsible for financing its preservation. The easement provides the foundation with a vested real property interest in the property that was not recognized in the accompanying financial statements because a major uncertainty exists about the existence of value, and the easement has no alternative use. Previously, a parcel of property was donated to the university of hawaii by the estate of jean charlot with a stipulation that the foundation be given a preservation and conservation easement to assist in preserving and maintaining the property and its architectural, historic, and cultural features for the benefit of the people of honolulu. The responsibility of the foundation, as holder of this easement, is to review any proposed changes to the building on the parcel to assure the changes do not affect the historical integrity of the building. The foundation is also charged with making sure the building receives appropriate maintenance and repair; however, the university, as owner of the house, will decide how it is to be used and will be responsible for financing its preservation. The easement provides the foundation with a vested real property interest in the property that was not recognized in the accompanying financial statements because a major uncertainty exists about the existence of value, and the easement has no alternative use. During the year ended december 31, 2018, a preservation easement was donated to the foundation by dearborn 535 llc. The responsibility of the foundation, as holder of this easement, is to ensure that all work is consistent with the secretary of interior's standards for the rehabilitation of historic properties and the historic building, site, and features, are preserved in perpetuity. The owner of the building will retain rights, including access, use, and enjoyment of the building and is responsible for maintenance, compliance with codes, and other liabilities. The easement provides the foundation with a vested real property interest in the property that was not recognized in the accompanying financial statements because a major uncertainty exists about the existence of value as the easement has no alternative use.”

“Historic hawaii foundation (hhf) holds two endowments, totaling $240,495. The bretzlaff foundation endowment ($225,000) was established in 1998 to provide support for the operations and activities of the foundation. The hhf endowment ($15,495) was established to provide a continuous source of funding for the foundation's operations over the long term. During the year of december 31, 2011, the board of trustees of the foundation designated $40,000 of unrestricted net assets as an easement stewardship endowment fund to support annual easement stewardship obligations. During the year of december 31, 2018, the board of trustees designated an additional $60,000 of unrestricted net assets to the easement stewardship endowment fund.”

“Accounting principles generally accepted in the united states of america require uncertain tax positions to be recognized in the financial statements if they are more likely than not to fail upon regulatory examination. Management has evaluated the tax positions of the foundation as of and for the years ended december 31, 2018 and 2017 by reviewing its income tax returns and conferring with its tax advisors, and determined that it had no uncertain tax positions required to be reported in accordance with such generally accepted accounting principles. The foundation is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any open tax periods.”

“Increase in temporarily restricted net assets 716.”