The Phillips Collection

“Works of art in the museum's collection are not recognized as assets on the statements of financial position. Purchases of art are recorded as decreases in unrestricted net assets if purchased with unrestricted assets and as decreases in temporarily restricted or permanently restricted net assets if purchased with donor-restricted assets. Contributions of collection items are not recognized in the statements of activities and changes in net assets; however, certain contributions are recorded as increases in temporarily restricted net assets if a donor makes a contribution intended to fund the subsequent purchase of art. Proceeds from the sale of deaccessions or insurance recoveries are reflected on the statements of activities and changes in net assets based on the absence or existence and nature of donor-imposed restrictions. There were no deaccessions during each of the years ended july 31, 2014 and 2013.”

“As stated in article 3 of the collection's articles of incorporation, the focus of the permanent collection is the emergence of modern art in europe and the united states in the late nineteenth and the twentieth centuries (now the 21st as well), and in particular the expressive, individualistic, colorful, nature-based art favored by duncan phillips. Phillips wished for the museum to continue to collect contemporary art of the kind he favored so that living and emerging artists would have a venue to show the results of their research and their aesthetic adventures. The collection permits the museum to provide outstanding exhibitions and related art programming for the education of the public.”

“The museum's endowment is invested to provide income for operations, for programs and exhibitions, for display and preservation of the permanent collection, and for purchases of works of art.”

“For the years ended july 31, 2014 and 2013, the collection has documented its consideration of fasb asc 740-10, income taxes, that provides guidance for reporting uncertainty in income taxes and has determined that no material uncertain tax positions qualify for either recognition or disclosure in the financial statements. The federal form 990, return of organization exempt from income tax, is subject to examination by the internal revenue service, generally for three years after it is filed.”

“Endowment earnings transferred for operations 2,120,378.”

“Gala expenses netted against revenue on the financial 48,690. Statements and included as an expense on form 990, part viii membership travel expenses netted against revenue on the 24,210. Financial statements and included as an expense on form 990, part viii interest/dividends, non-operating, reported as an "other 610,095. Item" on the financial statements and included as revenue on form 990, part viii realized gains, non-operating, reported as an "other item" 3,129,603. On the financial statements and included as revenue on form 990, part viii operating unrealized losses not reported on form 990, part viii -1,622.”

“Bond expenses, non-operating reported as an "other item" on 371,503. The financial statements and included as an expense on form 990, part ix art acquisition costs reported as an "other item" on the 69,384. Financial statements and included as an expense on part ix depreciation, non-operating, reported as an "other item" on 1,027,469. The financial statements and included as an expense on form 990, part ix gala expenses netted against revenue on the financial 48,690. Statements and included as an expense on form 990, part viii membership travel expenses netted against revenue on the 24,210. Financial statements and included as an expense on form 990, part viii unrelated business income taxes netted against revenue on 98. The financial statements and included as an expense on form 990, part ix capital campaign expenses reported as an "other item" on 154,250. The financial statements and included as an expense on form 990, part ix investment expenses reported as an "other item" on the 192,921. Financial statements and included as an expense on form 990, part viii”