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THE HIGGINSON 1908 FOUNDATION, INC.

Notes to Financial Statements

(See Independent Accountants' Compilation Report)

Note 3 – Liquidity and availability

Financial assets available for general expenditure, that is, without donor restrictions limiting their use, within one year of the Statements of Financial Position date, are comprised of the following as of June 30:

Note 4 – Net assets with donor restrictions

Net assets with donor restrictions are restricted for the following purposes at June 30, 2022 and 2021: Scholarships for Harvard College students from the greater Boston area; Harvard College Community Service fellowships; Internship programs; Harvard Prize Books to be awarded to outstanding high school juniors, appraisal and cataloguing of the art collection at the Harvard Club of Boston.

Note 5 – Related party transactions

The Club is a member owned social club located in Boston, Massachusetts. The Club’s primary purpose is to provide a social meeting place for its members. The Foundation has a special relationship with the Club, as the Club is expected to receive funds from the Foundation to preserve and protect the Club’s physical infrastructure as well as the cultural and artistic materials held by the Club. The Foundation remains an independent organization dedicated solely to its charitable and educational purposes. The Foundation’s operations are maintained separately from the Club’s operating activities and its assets are not available to the Club.

The Club provides administrative support staff to the Foundation, for which the Foundation reimburses the Club. The Club requests that its members donate funds to the Foundation. Donations collected by the Club are remitted to the Foundation. The Club accounts for the donations as agency transactions and does not reflect them in its financial statements. Donations reimbursable to the Foundation by the Club during 2022 and 2021 totaled approximately $159,000 and $93,000, respectively.

Note 6 – Risk and uncertainties

Beginning in January 2020, global financial markets have experienced, and continue to experience, significant volatility resulting from the spread of a virus known as COVID-19. The outbreak has had a material adverse effect on global, national and local economies, as well as on the Foundation’s operations by disrupting scheduled events. The potential impact of a pandemic, epidemic or outbreak of a contagious disease on the Foundation’s operations is difficult to predict, and could have a material adverse effect on the Foundation’s results of operations and financial condition.

Note 7 – Subsequent events

The Foundation has evaluated subsequent events and transactions through December 14, 2022, the date the financial statements were available to be issued. There were no events or transactions that occurred that would require recognition or disclosure in the financial statements.

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