Historical Society of Western Pennsylvania

“The history center's collections includes its collection of western pennsylvania historical artifacts and archives. These items are held for educational, scientific and curatorial purposes. Each of the items is cataloged, perserved and cared for, and activities verifying their existence and assessing their condition are performed continuously. The collections, which were acquired through donations, loans and purchases since the history center's inception, are not recognized as assets in the statements of financial position. Purchases of collection items are recorded as operation expenditures in the year in which the items are acquired. Contributed collection items are not reflected in the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the statements of activities and changes in net assets with donor restrictions and are used for the acquisition of collections.”

“Collections provide a basis for fulfilling the organization's mission as a historical museum, preserving and interpreting the legacy of western pennsylvania.”

“The history center's endowment consists of various investment funds established for support of its mission. Its endowment includes donor-restricted endowment funds. As required by generally accepted accounting principles, net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. Interpretation of relevant law - the history center has elected to be governed by the commonwealth of pennsylvania's act 141 (act 141), which permits election of a total return policy that allows a nonprofit to choose to treat a percentage of the average market value of the endowment's donor-restricted investments as income each year. However, the long-term preservation of the real value of the assets must be taken into consideration when the history center elects the amount. In accordance with act 141, the spending rate elected must be between 2% and 7%. This percentage is applied to a 36-month average market value of the investments at the prior year-end. The history center used a spending rate of 6.6% and 6.9% for the years ended june 30, 2022 and 2021. The history center classifies as donor-restricted net assets the original value of gifts donated to be maintained in perpetuity. Earnings on these gifts are accumulated in net assets with donor restrictions. As required by act 141, the history center has adopted a written investment policy, of which a section specifically relates to the endowment fund. The history center considers the following factors in making a determination to set a spending rate: 1. Protecting the corpus of the endowment fund. 2. Preserving the spending power of the assets. 3. Obtaining maximum investment return with reasonable risk and operational consideration. 4. Complying with applicable laws.”

“The history center is exempt from federal income tax under section 501(c)(3) of the u.s. Internal revenue code (irc). Accordingly, no federal or state income taxes have been provided. The history center follows the income taxes topic of the codification that requires a recognition threshold and measurement principles for financial statement disclosures of tax positions taken or expected to be taken on a tax return. The history center has assessed the tax positions it has taken or expects to take in its tax returns and, as a result, no liability for uncertain tax positions has been recorded; further, the history center has no unrecognized tax benefits. The history center is no longer subject to examination of its tax returns for years before 2019.”

“Special event expenses 214,237. Cost of goods sold 510,442. Rental expenses 158,026.”

“Special event expenses 214,237. Cost of goods sold 510,442. Rental expenses 158,026.”