Naval Historical Foundation

“The foundation has catalogued approximately 4,000 documents and artifacts of historical interest, obtained as donations during the 90-year life of the foundation. The collection is not included in the financial accounts of the foundation because its value is not determinable at a reasonable cost. Although the historical collection has not been valued, management believes that it has significant value. The collection is being dispersed through donation to appropriate government and non-profit museum, library, and archival organizations. The foundation maintains the collection in a secured facility at the washington navy yard in washington, d.c. Expenses of maintaining the collection of $18,680 are included in naval historical foundation program expenses on the statement of activities.”

“The foundation is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and applicable state law.the accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under that guidance, the foundation may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the foundation and various positions related to the potential sources of unrelated business taxable income (ubit). The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. There were no unrecognized tax benefits identified or recorded as liabilities for fiscal year 2016. The foundation's policy would be to recognize interest and penalties, if any, on tax positions related to its unrecognized tax benefits in income tax expense in the financial statements. No interest and penalties were assessed or recorded during fiscal year 2016. The foundation's forms 990, return of organization exempt from income tax, that have been filed as of december 31, 2016, for the years 2015, 2014, and 2013 are subject to examination by the internal revenue service, generally for three years after they were filed.”

“Interest and dividends realized gain”

“Collection is kept to preserve naval history.”