THE HIGGINSON 1908 FOUNDATION, INC.

Notes to Financial Statements

(See Independent Accountants' Compilation Report)

Note 1 – Organization

The Higginson 1908 Foundation, Inc. (the "Foundation"), a charitable corporation, was organized under the laws of the Commonwealth of Massachusetts in 2015. The Foundation’s purpose is to:

 Preserve and protect old and historic buildings in and around Boston, Massachusetts, including specifically the Clubhouse of the Harvard Club of Boston (the “Club”), in order to perpetuate the further education of posterity with regard to the architectural, historic, and general cultural heritage of the Boston area.

 Preserve and protect historically significant artwork exhibited in and around Boston, Massachusetts, in order to perpetuate the further education of posterity with regard to the arts.

 Encourage education and personal advancement for youth in the Greater Boston area.

 Foster scientific, literary and educational interests among members of the Club and to advance the interests and promote the welfare of Harvard University.

The Foundation’s fundraising activities consist primarily of the solicitation of Club members by direct mailings and an annual solicitation by the Club.

Note 2 – Summary of significant accounting policies

Basis of accounting

The Foundation prepares its financial statements in accordance with accounting principles generally accepted in the United States of America, which includes the application of accrual accounting. Consequently, revenues and gains are recognized when earned, and expenses and losses are recognized when incurred.

Classification and reporting of net assets

Accounting principles generally accepted in the United States of America require the Foundation to report information regarding its financial position and activities according to the following net asset classifications:

Net assets without donor restrictions: Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in performing the primary objectives of the organization. These net assets may be used at the discretion of the Foundation’s Board of Directors.

Net assets with donor restrictions: Net assets subject to stipulations imposed by donors, and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Foundation or by the passage of time; other donor restrictions are perpetual in nature, whereby the donor has stipulated funds be maintained in perpetuity.

Donor restricted contributions are reported as increases in net assets with donor restrictions if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends, or purpose restriction is accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the Statements of Activities and Changes in Net Assets as net assets released from restrictions.