Frick Art & Historical Center Inc.

“The collections at the frick are at the center of the museum's mission to serve the public through preservation, presentation and interpretation of fine and decorative arts and historically significant artifacts. Encompassing fine and decorative arts, carriages, cars, building and ephemera related to the pittsburgh family life of gilded age industrialist henry clay frick, these collections form the core of what is now displayed in the exhibition venues.”

“The frick's endowment consists of various investment funds established or designated primarily for support of the organization's mission. Its endowment includes donor-restricted endowment funds and those designated by the board. As required by generally accepted accounting principles, net assets associated with endowment funds, including funds designated by the frick to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions. The board of the frick has elected to be governed by the commonwealth of pennsylvania's act 141 (act 141) for the donor-restricted endowment funds. Act 141 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 permanently 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 board elects the amount. The frick has elected a policy that requires the corpus of the permanently restricted net assets to be maintained, notwithstanding investment performance to the contrary. The frick has not adopted act 141 for the funds that are board-designated for endowment. These funds are monitored by the finance committee of the board under operation of the investment policy. In accordance with act 141, the frick has adopted a written investment policy, of which a section specifically relates to the endowment fund. The frick considers the following factors in making a determination to set a spending rate for both the donor-restricted and board-designated endowment funds: 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 frick has adopted investment and spending policies for endowment assets that attempt to provide a reasonable level of funding to programs supported by its endowment while seeking to enhance the purchasing power of the fund's corpus by striving for long-term growth. Endowment assets include those assets of donor-restricted funds that the organization must hold in perpetuity or for a donor-specified period, and board-designated endowment funds. The frick annually transfers approximately 5% of the previous 12 quarters' market value average of the board-designated endowment fund to undesignated unrestricted net assets for use in current and future operations. The percentage is applied to the 12-quarter average market value of the investments at december 31 of the previous year. The draw for the years ended march 31, 2014 and 2013 was approximately $3,061,000 and $2,920,000, respectively. The frick believes that this spending policy is consistent with the frick's objective to maintain the purchasing power of the endowment assets held in perpetuity as well as to provide additional real growth through new gifts and investment return.”

“The frick has been determined to be a tax-exempt organization under section 501(c)(3) of the irc. Furthermore, in a determination letter dated march 10, 2006, the internal revenue service ruled that the frick met the requirements to become a public charity, effective december 31, 2004. In accordance with the applicable provisions of the irc, the frick is not subject to federal income tax on income generated through mission-oriented activities, but is subject to the federal tax on unrelated business income. The federal unrelated business income tax expense for the years ended march 31, 2014 and 2013 is $379 and $-0-, respectively.”

“COST OF SALES 254,444.”

“COST OF SALES 254,444.”

“Board designated or quasi-endowment: 99.9533% permanent endowment: 0.0467% term endowment: 0.0000%”