Sewell C Biggs Trust the Biggs

“As a museum, in accordance with sfas 116, the assets are not capitalized. The collections, which were acquired through purchases and contributions since the organization's inception, are not recognized as assets on the statement of assets, liabilities and net assets. Purchases of collection items are recorded as decreases in temporarily restricted net assets in the year in which the items are acquired.contributed collection items are not reflected in the financial statements. Proceeds from deacessions or insurance recoveries are reflected as increases in the appropriate net asset class.”

“The museum's collection consists of fine and decorative art of delaware, the mid-atlantic region and the nation from 1700 to the present. The museum offers changing exhibitions throughout the year relating to historical and contemporary art topics. Public education of art is supported through educational programming for adults and children and special events designed to bring art to everyone.”

“The original principle of the endowment fund is to be held and invested by the museum indefinitely. The income from the fund, net of any management fees, may be expended for maintaining and upgrading the collection and for interior improvements to the facility.”

“The museum is a not-for-profit entity that is exempt from income tax under section 501(c)(3) of the internal revenue code and, therefore, has made no provision for federal, state or local income tax in the accompanying financial statements. In addition, the museum has been determined by the internal revenue service not to be a "private foundation" within the meaning of section 509(a) of the internal revenue code. The museum follows asc 740-10, income taxes, as it relates to uncertain tax positions. Management has reviewed its current and past federal income tax positions and has determined, based on clear and unambiguous tax law and regulations, that the tax positions taken are certain and that there is no likelihood that a material tax assessment would be made if a respective government agency examined tax returns subject to audit. Accordingly, no provision for the effects of uncertain tax positions has been recorded. Currently, the 2015, 2016, and 2017 tax years are open and subject to examination by the internal revenue service. However, the museum is not currently under audit nor has the museum been contacted by this jurisdiction. Interest and penalties related to income taxes are included in income tax expense when incurred.”