Detroit Athletic Club

“The club's artwork, acquired mainly through contributions since the club's inception, is not recognized as an asset on the consolidated balance sheet. Each item of artwork is cataloged, preserved, and cared for and procedures verifying their existence and assessing their condition are performed continuously. Any additions to the artwork collection subsequent to 1994, if purchased, are capitalized at cost and, if donated, capitalized at fair market value as of the date of donation. All artwork of the club recognized on the consolidated balance sheet is held solely by the dac foundation.”

“Various works of art primarily contributed by members for the quiet enjoyment of members of the club.”

“Detroit athletic club is a not-for-profit corporation exempt from federal income taxes under internal revenue code section 501(c)(7). No tax provision is recognized in the consolidated financial statements, as no tax benefit is expected to be realized on the accumulated losses to date. The club is, however, subject to tax on its unrelated business income, for which appropriate provision has been made in the accompanying consolidated financial statements. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the club and recognize a tax liability if the club has taken an uncertain position that more likely than not would not be sustained upon examination by the irs or other applicable taxing authorities. Management has analyzed the tax positions taken by the club and has concluded that, as of december 31, 2024 and 2023, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The club is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.”