Pyramid Atlantic Inc.

“Collections and relation to exempt purpose: pyramid atlantic received donated art work throughout the year. Pyramid maintains two classes of art work. Items recorded as inventory are generally made at the organization's studios and donated to the organization for possible resale. Contributed inventory was $0 during fy19. Items recorded as archive inventory are kept in perpetuity as educational and exhibit pieces. All artworks further the mission of pyramid atlantic by showcasing artists with a focus primarily on the disciplines of printmaking, papermaking, and bookmaking. Having artwork on hand to display and educate provides the ability to make printmaking, papermaking, and bookmaking accessible to more than just artists and academics.”

“Paac is exempt from federal and local income taxes under section 501(c)(3) of the internal revenue code on any net income derived from activities related to its exempt purpose. This code section enables paac to accept donations that qualify as charitable contributions to the donor. Paac is subject to tax on net income from unrelated business activities. For the years ended june 30, 2019 and 2018, paac did not recognize income tax expense in the accompanying financial statements as there was no unrelated business taxable income. The organization is not aware of any activities that would jeopardize its tax exempt status that would require recognition in the accompanying financial statements, pursuant to accounting standards codification (asc) for income taxes. Generally, tax returns are subject to examination by taxing authorities for up to three years from the date a completed return is filed. The open tax years are june 30, 2017, 2018, and 2019. If there are material omissions of income, tax returns may be subject to examination for up to six years. It is paac's policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expense. As of june 30, 2019 and 2018, the organization had no accruals for interest and/or penalties as there were no uncertain tax positions.”