The Putnam Foundation DBA Timken Museum of Art

“The Foundation has capitalized its works of art since its inception. If purchased, items accessioned into works of art are capitalized at cost and, if donated, they are capitalized at their appraised or fair value on the accession date, the date on which the item is accepted by the Board of Directors (the Board). Gains or losses on the deaccession of works of art are classified in the statements of activities as with donor restrictions or without donor restrictions depending on donor restrictions, if any, placed on the item at the time of accession. Accession of works of art totaled $110,000 and $-0- for the years ended March 31, 2021 and 2020, respectively. Deaccession of works of art from the collection totaled $13,600 and $-0- during the years ended March 31, 2021 and 2020, respectively, with no proceeds received for each year ended resulting in a loss on sale of $13,600 and $-0- for the years ended March 31, 2021 and 2020, respectively. The collection totaled $13,856,022 and $13,759,622 at March 31, 2021 and 2020, respectively.The collection is subject to a policy that requires proceeds from their sales to be used to acquire other items for collections or to support the direct care of collections. Direct care of collections is defined by the Foundation as costs that prolong the life and usefulness of the collection, costs providing benefits that enhance the quality and protection of the collection, and costs that make a physical impact on collection objects, increasing or restoring their cultural or scientific value. Routine and ongoing expenditures are not considered direct care of collections. Costs incurred in connection with the acquisition and conservation of works of art are expensed in the period incurred.An independent appraisal made during 2015, adjusted for accessions and deaccessions at cost, valued the works of art held by the Foundation at $275,283,000. Subsequent to the issuance of the appraisal report, the museum made acquisitions and received donated works of art totaling in the amount of $1,954,599. Management believes that the value at March 31, 2021 has not declined since the 2015 appraisal.”

“The museum has investment and spending policies for endowment assets that attempt to provide a predictable stream of funding for operations. The museum targets a diversified asset allocation primarily focused on equity and fixed income based investments to achieve long-term objectives with prudent risk constraints.”

“The Foundation is a public charity and is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the California Revenue and Taxation Code, except on net income derived from unrelated business activities. The Foundations unrelated business activity did not generate taxable income, and no tax liability has been recorded at March 31, 2021 and 2020. The Foundation believes that it has appropriate support for any tax positions taken, and, as such, does not have any uncertain tax positions that are material to the financial statements. The Foundation is not a private foundation.The Foundations Return of Organization Exempt from Income Tax and Exempt Organization Business Income Tax Returns for Tax for the years ended March 31, 2021, 2020, 2019, and 2018 are subject to examination by Internal Revenue Service and State taxing authorities, generally three to four years after the returns were filed.”

“Cost of goods sold $18547”

“COST OF SALES $18547”