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1 <br /> S <br /> THE BOTANICAL GARDEN FOUNDATION, INC. <br /> NOTES TO FINANCIAL STATEMENTS <br /> Page 2 of 13 <br /> SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> E. Promises to Give. <br /> Unconditional promises to give are recognized as support and assets in the period <br /> received. Conditional promises to give are recognized when the conditions on which <br /> they depend are substantially met. Unconditional promises to give that are expected to be <br /> collected within one year are recorded at net realizable value. Unconditional promises to <br /> give that are expected to be collected in future years are recorded at the present value of <br /> their estimated future cash flows. An allowance for uncollectible promises is calculated <br /> based on management's estimate of collectability. <br /> F. Net Assets. <br /> Unrestricted- Resources of the Foundation that are not restricted by donors or grantors as <br /> to use or purpose. These resources include amounts generated from operations, <br /> undesignated gifts, and investments in property and equipment. <br /> Temporarily Restricted- Resources that carry a donor-imposed restriction that require the <br /> Foundation to use or expend the donated assets as specified by the donor. The <br /> restrictions are satisfied by the passage of time or by actions of the Foundation. <br /> Permanently Restricted - Resources that carry a donor-imposed restriction that stipulate <br /> that donated assets be maintained in perpetuity, but may permit the Foundation to use or <br /> expend part or all of the income derived from the donated assets. <br /> G. Fair Value Measurements. <br /> Accounting principles generally accepted in the United States of America require the <br /> Foundation to disclose estimated fair values for its financial instruments. The carrying <br /> amount of financial instruments approximates fair value because of the short maturities of <br /> the instruments held. <br /> H. Real Estate. <br /> Real estate gifts received without sale restrictions are reported at fair market value at the <br /> date of gift. Real estate gifts restricted to conservation use that cannot be sold are not <br /> recorded. <br />