Dallas Spark

“Collections are works of art comprised of welded metal doors and wall murals created for the organization. In accordance with gaap, the organization does not record donations of collection items and records purchases of collection items as reductions in net assets in the year in which the item is acquired. Accordingly, the organization's collections are not recognized as assets in the accompanying statements of financial position and donated collection items are not recognized in the accompanying statements of activities and changes in net assets. Professional standards require that collections are held for public exhibition and education in furtherance of public service rather than financial gain; are protected, kept unencumbered, cared for, and preserved; and are subject to a policy that requires the proceeds from sales of collection items to be used to acquire other items for collections. These works of art further the organization's exempt purpose by igniting the spark of creativity inherent in all children.”

“The organization is exempt from federal income taxes under section 501(a) of the internal revenue code (irc) of 1986, as amended, as an organization described in section 501(c)(3) of the irc. The organization has been classified as an organization that is not a private foundation under irc section 509(a)(2), and as such, contributions to the organization qualify for deductions as charitable contributions. However, income generated from activities unrelated to the organization's exempt purpose is subject to tax under irc section 511. Management has concluded that any tax positions that would not meet the more-likely-than-not criterion of financial accounting standards board (fasb) accounting standards codification (asc) topic 740-10, accounting for income taxes, would be immaterial to the financial statements taken as a whole. Accordingly, the accompanying financial statements do not include any provision for uncertain tax positions, and no related interest or penalties have been recorded in the statements of activities and changes in net assets or accrued in the statements of financial position. Federal and state tax returns of the organization are generally open to examination by the relevant taxing authorities for a period of three years from the date the returns are filed.”

“Special event expenses grouped on audit with expenses ($49,624)”

“Special event expenses grouped on audit with expenses ($49,624)”