Mark Arts Inc.

“In conformity with the practice followed by many art galleries, art objects purchased and donated are not capitalized in the accounting records or included in the statement of financial position. Purchases of collection items reduce net assets in the period when purchased. Proceeds from sales or insurance recoveries are recorded as increases in net assets when received. Mark arts has a significant collection consisting of large european paints; american artists and artisans complete the collection with pieces of decorative art purchased at the biannual wichita national show. Mark arts follows an accessioning system prescribed by the american museum association to account for the collection. Mark arts emloys a curator to ensure that the collection is protected and preserved.”

“The collection consists of american and european paintings and decorative art by american artists. This furthers mark arts's purpose to improve understanding of visual arts and expand aesthetic appreciation.”

“The organization is organized as a kansas nonprofit corporation and has been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as an organization described in section 501(c)(3). The organization is qualified to receive deductible charitable contributions under section 170(b)(1)(a)(vi) and (viii), and has been determined not to be a private foundation under sections 509(a)(1) and (3). The organization is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the organization is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. The organization believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. The organization would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred.”

“FUNDRAISING COSTS”

“FUNDRAISING COSTS”