Riverside Art Museum

“Collection items consist of art objects that are held for educational and curatorial purposes. Each of the items is cataloged, preserved, cared for, and kept unencumbered. Activities verifying their existence and assessing their condition are performed continuously. Collection items acquired either through purchase or donation are not capitalized. Purchases of collection items 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 statement of activities. Proceeds from deaccessions or insurance recoveries are reflected on the statement of activities based on the absence or existence and nature of donor-imposed restrictions. If collection items are sold, the proceeds from the sale are used to purchase additional collection items.”

“The museum maintains perpetual endowment funds with purpose restrictions (for youth art scholarships to our programs) and without purpose restrictions. These endowment funds are retained permanently either by explicit donar stipulation or by spmifa. The museum has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs suported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the museum must hold in perpetuity or for a donor-specified period(s). Under this policy, as approved by the board of directors, the endowment assets are invested in a manner that is intended to preserve the real (i.e. Inflation-adjusted) purchasing power of the endowment, and are restricted to investments in certificates of deposit, passbook and money market accounts, and mutual funds. Actual returns in any given year will vary due to market fluctuation.”

“The museum is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and from state income tax under section 23701(d) of the california revenue and taxation code. In addition, the museum has been classified as an organization that is not a private foundation under section 509(a)(2). However, certain sales in the museum's shop and rent receipts net of rent expenses are subject to unrelated business income tax, if they exceed certain thresholds. For the year ended august 31, 2018 the museum has recorded a tax liability of $35,131 federal and state purposes on this unrelated business activity. Management believes that all of the positions taken by the museum in its federal and state income tax returns are more likely than not to be sustained upon examination. The museum's tax returns are subject to examination by the internal revenue service and the california franchise tax board for three years and fouryears, respectively, after they are filed.”

“RENTAL EXPENSES 208,531.”

“RENTAL EXPENSES 208,531.”