Maricopa County Historical Society

“The Museums collection comprises more than 10,000 works of art and artifacts that are held for public exhibition and education. These works of art are protected, kept unencumbered, cared for, and preserved, and are subject to a policy that requires the proceeds from sales of collection items be used to acquire other items for collection.In conformity with accounting policies generally followed by art museums, the value of the Museums collections has been excluded from the Statements of Financial Position, and gifts of art objects are excluded from revenue in the Statement of Activities. Purchases of art and artifacts by the Museum are recorded as decreases in net assets in the Statement of Activities. Additions to the permanent collection are made either by gifts, bequests, or through purchases using acquisition funds. Acquisition funds may be classified as with donor restrictions, in which either (i) the principal balance is to be held in perpetuity and only the income earned on principal balances may be used for acquisitions, or (ii) both the principal and earned income may be used for acquisitions; or without donor restrictions, representing funds designated by the Board to be used for acquisitionsThe withdrawal of works of art from the collection of the Museum is performed in accordance with a formal policy initially adopted in 1995 and last revised in fiscal year 2023. All funds realized from the sale of deaccessioned art and artifacts are to be directed to the Art or Artifact Acquisition Fund and are classified as with donor restrictions. There was no consideration for deaccession of collection items in the current year. Collection acquisitions by purchase totaled $535,513 for the year ended September 30, 2024.”

“Earnings from endowment funds are used for museum operations and art acquisition.”

“NOTE H - INCOME TAX POSITIONS The Organization has taken the following income tax positions with respect to preparing its exempt organization tax returns and financial statements:The Organization continues to qualify as exempt from federal and state income taxes.There is no unrelated business income, subject to income tax.The Organization has not engaged in prohibited transactions subject to penalties.In the opinion of management, these positions are reasonable and comply with income tax rules and regulations. All of these positions are subject to review by Federal, state, and local taxing authorities.”