THE HIGGINSON 1908 FOUNDATION, INC.

Notes to Financial Statements

(See Independent Accountants' Compilation Report)

Cash

The Foundation considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.

Contributions

The Foundation recognizes contributions when cash, securities or other assets; an unconditional promise to give; or a notification of a beneficial interest is received. Conditional promises to give, that is, those with a measurable performance or other barrier and a right of return, are not recognized until the conditions on which they depend have been met.

Income taxes

The Internal Revenue Service has determined that the Foundation qualifies as an exempt organization under Internal Revenue Code Section 501(c)(3). In addition, the Foundation qualifies for the charitable contribution deduction under Section 170 (b)(1)(A) and has been classified as an organization that is not a private foundation under Section 509(a)(2).

The Income Taxes topic of the FASB Accounting Standards Codification 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 tax positions and does not believe that any material uncertain tax positions exist. The Foundation’s policy is to record interest expense and penalties, if any, in management and general expenses. For the years ended June 30, 2022 and 2021 there was no interest and penalties expense recorded.

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.

Functional expense allocations

The costs of program and supporting services activities have been summarized on a functional basis in the Statements of Activities and Changes in Net Assets, as well as by natural classification detail. Expenses that can be identified with a specific program or supporting service are charged directly to the program or supporting service. Expenses which apply to more than one functional category have been allocated based on estimates made by management.

Accounting estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.