Maricopa County Historical Society

“The Art Museums collection comprises more than 10,000 works of art 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.The value of the art objects in the permanent collection is recorded at cost if purchased by the Museum. If the item is donated to the museum and the item has been appraised, it is recorded at the appraised or fair market value. If the item has not been appraised, no value is recorded on the financial statements. An addition of a work of art to the permanent collection is made either by donation from a benefactor or through a purchase from Art Museum acquisition funds. Art Museum funds may be classified as permanently restricted, for which only the income earned on the principal balances may be used for acquisitions; temporarily restricted, for which both the principal and earned income may be used for acquisitions; or unrestricted, representing funds designated by the Board to be used for acquisitions. Proceeds from deaccessions of collection items are reflected as increases in the appropriate net asset classes.”

“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.”