HARVARD CLUB OF BOSTON FOUNDATION

Notes to Financial Statements

(See Independent Accountants’ Compilation Report)

Note 5 – Fair value measurements

The Fair Value Measurements topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820 establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

The fair value of the Foundation’s investment in the Harvard University Pooled General Investment Account is determined based on per unit Net Asset Value (“NAV”) provided by Harvard University. There has been no change in the methodology used.

The method described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.

Note 6 – Scholarships and fellowships

The Foundation provided funds to Harvard College for undergraduate scholarships totaling $512,322 and $475,398 for the years ended June 30, 2022 and 2021, respectively. The Foundation also provided to Harvard College a Summer Community Fellowship in the amount of $5,000 during the year ended June 30, 2022.

Note 7 – Tax status

The Foundation is exempt from Federal and State income taxes under Section 501(c)(3) of the Internal Revenue Code and is not classified as a private foundation. Contributions to the Foundation are deductible by donors for income tax purposes.

The Income Taxes topic of the FASB ASC prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Management of the Foundation has evaluated its uncertain tax positions and related income tax contingencies and does not believe that any material uncertain tax positions exist.

The Foundation’s tax returns are generally subject to examination by the Internal Revenue Service and the Commonwealth of Massachusetts for a period of three years from the date they are filed.