Colonial Williamsburg Foundation

“Collections primarily consist of 18th century decorative arts and 19th century folk art, acquired through purchases and contributions since the Foundation's inception. Through the leadership of its Board of Trustees and staff, the Foundation strives to preserve, protect, and maintain the collection in perpetuity.In 2016, Colonial Williamsburg elected to make a change in accounting principle to no longer capitalize collection items. This change has been applied retrospectively to the prior year shown on the Form 990. This change was a direct result of the reaccreditation process for the American Alliance of Museums. The Accreditation Commission expects the Foundation to abide by all applicable discipline-specific standards. The Foundation "is subject to the Association of Art Museum Directors' Code of Ethics which bars museums from capitalizing collections". While the Foundation has never depreciated or encumbered its collection, and has consistently applied accounting principles generally accepted in the United States of America (U.S. GAAP), management determined that not capitalizing collection items was a preferable accounting policy so as not to risk its accreditation status and therefore, retrospectively applied a change in accounting principle. The change in accounting principle had the following net effects on the consolidated statement of financial position (in thousands) at December 31, 2015:Noncurrent contributions receivable, net$(5,520)Real and personal property, net$(78,790)Total assets$(84,310)Unrestricted net assets$(78,035)Temporarily restricted net assets$(145)Permanently restricted net assets$(6,130)Total net assets$84,310Total liabilities and net assets$(84,310)The change in accounting principle had the following net effect on the consolidated statement of activities (in thousands) as of December 31,2015:Gifts and grants$(409)Exhibitions and historical programs$152Operating deficit$(561)Change in net asset$(561)”

“The Colonial Williamsburg collection includes more than 60,000 examples of fine, decorative, and mechanical art from the 17th, 18th, and early 19th-centuries. Many of these objects are used to accurately furnish more than thirty historical structures maintained by the Foundation and opened to the public for educational purposes. The balance appear in rotating exhibitions at the Foundation's Abby Aldrich Rockefeller Folk Art Museum and DeWitt Wallace Decorative Arts Museum. The institution also maintains a collection of some 5,000 architectural artifacts. Most are associated with the nearly ninety 18th and early 19th-century structures that survive in Williamsburg's Historic Area. These materials, periodically exhibited to the public, inform our restoration and preservation decisions. Finally, Colonial Williamsburg holds approximately six million archaeological artifacts, most excavated in or near the Historic Area. These materials are widely studied by scholars in the United States and abroad. The artifacts are periodically featured in exhibits.”

“The Foundation's endowment consists of 204 individual funds restricted for a variety of purposes. The endowment includes both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments. In accordance with the Foundation's Investment Policy, the Foundation appropriates for distribution each year six percent of its endowment fund's average fair market value over the prior 12 quarters through the June 30 preceding the calendar year in which the distribution is planned. The annual withdrawal applies to permanent (donor-restricted) and quasi-endowment (managment-designated) funds. Withdrawals from the unrestricted portion of the endowment fund may by made with the approval of the Foundation's Board of Trustees. Withdrawals from permanent (donor-restricted) endowment funds comply with the terms of the relevant gift agreement.”

“There are no material tax positions that the Foundation believes will significantly change within twelve months of December 31, 2016.Parts XI and XII:The Foundation's audited financial statements are prepared on a consolidated basis, so the reconcilations in Parts XI-XII are not required. The Foundation does not include as a functional expense on Form 990 pension-related costs under ASC 740 (formerly FAS 158) or changes in the value of split interest agreements, consistent with the treatment of these items on the Foundation's audited financial statements.”