Alleghany Arts Council

“Form 990 EZ Line 16 and Schedule O Detail / Program Service Expenses: In prior years, the Organization ("AAC") reported most marketing expenses outside of program services, even when they directly supported community arts programming. Beginning in the tax year ending June 30, 2025, the AAC refined its expense classification methodology to better reflect the actual purpose of each marketing expenditure. As a result, approximately $6,900 of costs directly tied to the delivery and promotion of mission-oriented programming (e.g., event marketing) were reclassified into program service expenses reported on Schedule O Line 16A. Marketing expenses unrelated to specific program delivery - including a brand-awareness activity in the form of a $100 golf tournament sponsorship with Alleghany Memorial Hospital - were excluded from Line 16A and reported separately under a new category labeled as 16B Organizational Marketing. Expenses related to fundraising outreach (e.g., remittance envelopes and a targeted donor mailing) continue to be reported as 16C Organizational Fundraising expenses, consistent with prior years. This refinement was adopted prospectively and does not change the AAC's total expenses.”

“There was no inventory purchased in the tax year ending June 30, 2025. Cost of goods sold is $0.”

“Alleghany County Library $545.00 // NC Mountain Arts Adventure Studio Tour $100.00 // Total $645.00”

“Description;Amount^16A PROGRAM SERVICE AND EVENT EXPENSES;69123|16B ORGANIZATIONAL MARKETING EXPENSES;100|16C ORGANIZATIONAL FUNDRAISING EXPENSES;965|16D DUES SUBSCRIPTIONS AND LICENSES;372|16E ACCESSIBILITY;805|16F INSURANCE;794|16G TECHNOLOGY SOFTWARE AND WEB SERVICES;1006|16H GENERAL AND ADMIN;557|16I BOARD DEVELOPMENT;791|16J BANK FEES;236^Total;74749^”

“Description;EOY Amount^OFFICE LEASE SECURITY DEPOSIT;150|PREPAID MARKETING;224^Total;374^”

“Description;EOY Amount^NC SALES TAX PAYABLE;23^Total;23^”

“In August 2024, the Organization amended its bylaws to establish a "Program Year" for the election of officers and appointment of executive board members, with a target effective date of February 1 annually. Prior to this change, leadership transitions occurred on the same schedule as the Organization's fiscal year, beginning July 1. The revised timeline was adopted to better align transitions with a natural pause in programming and fundraising activities, supporting a smoother handoff in the Organization's annual fundraising cycle. As a small, volunteer working board, actual transition dates may vary based on availability and scheduling needs. This amendment does not affect the Organization's mission, tax-exempt purpose, governance structure, or fiscal year for financial reporting purposes, and is therefore not considered a significant change for IRS reporting. It is disclosed here for informational purposes.”