Edmundson Art Foundation Inc.

“The collections, which were acquired through purchases and contributions since the Foundation's inception, are not recognized as assets on the statements of financial position. Purchases of collection items are recorded as decreases in net assets in the year in which the items are acquired. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes.”

“In keeping with its mission, the Foundation collects works of art from the 19th, 20th, and 21st centuries. Its permanent collections focus on masterpiece quality post 1945 and contemporary international art and are acclaimed for the scholarly import awarded to them. Of the approximately 5,000 objects in the collections, approximately 3,000 are works on paper that range from Rembrandt, Goya, and Durer to the present. There are regular presentations of artworks in the exhibition galleries at the Foundation. Selected objects from the permanent collections are shown as part of special exhibitions either at the Foundation or in museums throughout the world. When not on exhibit at the Foundation or on loan to museums for temporary exhibitions, the objects are cared for in climate controlled storage areas. The Foundation maintains policies and procedures addressing the collections' upkeep, as well as other aspects of its management, including accession and deaccession policies.”

“The Foundation's endowment consists of several individual funds established for a variety of purposes and includes both donor restricted endowment funds and funds designated by the Board of Trustees (the Board) to function as endowments. The Foundation has a policy of appropriating for distribution each year 4.5% of its endowment fund's average fair value over the prior 12 quarters through the second quarter preceding the fiscal year in which the distribution is planned. Single gifts exceeding $200,000 are deducted from this calculation and a specific appropriation of 4.5% of such gifts is allowed for the 12 quarters following these gifts. In establishing this policy, the Foundation considered the long term expected return on its endowment. Accordingly, over the long term, the Foundation expects the current spending policy to allow its endowment to grow or maintain the principal of the endowment gifts. This is consistent with the Foundation'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.”

“The Foundation is a tax exempt organization as described in Section 501(c)(3) of the Internal Revenue Code. As such, the Foundation is subject to federal and state income taxes only on unrelated business income under the provisions of Section 511 of the Internal Revenue Code. The Foundation recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Interest and penalties on unrecognized tax benefits are classified as other noninterest expense. As of December 31, 2015 and 2014, the Foundation had no material unrecognized tax benefits.”

“Direct costs netted against revenues, including cost of goods sold, special events direct expenses, and rental expenses.”

“Direct costs netted against revenues, including cost of goods sold, special events direct expenses, and rental expenses.”