Cincinnati Museums Foundation

“Cincinnati museum foundation has a policy of appropriating distributions each year of up to five percent of its previous three-year average endowment fund balance. In establishing this policy, the corporation has considered the long-term expected return on its endowment. Accordingly, this spending policy should, over time, protect the inflation-adjusted value of the endowment and, consequently, allow inflation-adjusted spending to occur in the distant future. This is consistent with the corporation's objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide additional real growth through new gifts and investment return.”

“For federal tax purposes, the museum, hsr, freedom center, and the foundation are exempt organizations under section 501(c)(3) of the internal revenue code, utc and mms are taxable corporations, and utllc is a pass-through entity and is not subject to income taxes. The financial accounting standards board ("fasb") has issued guidance which clarifies generally accepted accounting principles for recognition, measurement, presentation and disclosure relating to uncertain tax positions. This guidance clarifies the accounting and recognition for income tax positions taken or expected to be taken in the corporation's income tax returns. The corporation's income tax filings are subject to audit by various taxing authorities for a period of three years. While no income tax returns are currently being examined by the internal revenue service, tax years since 2019 remain open. The corporation's policy with regards to interest and penalties is to recognize interest through interest expense and penalties through other expense. In evaluating the corporation's tax provision and tax-exempt status, interpretations and tax planning strategies were considered. The corporation believes their estimates are appropriate based on the current facts and circumstances. Revenues derived from certain catering services provided by the museum and freedom center, certain museum shop sales and advertising income that are not substantially related to furthering the corporation's mission are considered unrelated business income. Taxes on unrelated business income are paid in accordance with the internal revenue code. No accrual has been provided because the amount of tax due is considered immaterial by management.”

“Related organization revenues 37,225,580. Intercompany eliminations -4,327,431.”

“Related organization expenses 44,681,840. Intercompany eliminations -13,950,363.”