Orange County NC Website
Browse       Search
13 <br /> THE BOTANICAL GARDEN FOUNDATION, INC. <br /> NOTES TO FINANCIAL STATEMENTS <br /> Page 7 of 13 <br /> PROMISES TO GIVE (CONTINUED) <br /> The carrying value of promises to give at June 30, 2011 and 2010, approximates fair value. <br /> No discount is considered necessary based on value of long-term promises to give. <br /> PROPERTY AND EQUIPMENT <br /> Property and equipment consist of the following: <br /> June 30, <br /> 2011 2010 <br /> Land $ 100,000 $ 100,000 <br /> Building and improvements 171,722 171,722 <br /> Furniture and fixtures 9,388 9,388 <br /> Equipment 1,806 1,806 <br /> 282,916 282,916 <br /> Accumulated depreciation (90,840) (83,929) <br /> Net property and equipment $ 192,076 $ 198,987 <br /> GIFTS OF FUTURE INTEREST <br /> The Foundation has been named the recipient of charitable gift annuities with market values at <br /> the date of gift totaling approximately$228,000. The Foundation is not serving as trustee for <br /> these annuities. These annuities have been reflected in the financial statements at their net <br /> present value of $181,022 and $184,083, as of June 30, 2011 and 2010, respectively. Net <br /> present value was computed using a rate of 2.8% and 3.2%, for the years ended June 30, 2011 <br /> and 2010, respectively. The computation was based on the life expectancy of the beneficiaries <br /> and the required distribution under the terms of the agreements. During the year ended <br /> June 30, 2011, the Foundation received $59,031 from an annuity due to the death of the <br /> donor. <br /> SPLIT-INTEREST AGREEMENT <br /> In 2001 the Foundation was named as beneficiary of a charitable remainder unitrust for which <br /> it is not trustee. The donor retains future income interests equal to 6.5% per year of the net <br /> fair market value of the assets in the trust at the annual valuation date until termination of the <br /> trust at the donor's death. The donor passed away in fiscal year 2011, and the Foundation, <br /> received the net proceeds of $136,748 from the trust. At June 30, 2010, this annuity was <br /> reflected in the financial statements at its net present value of$78,380 computed using a rate <br /> of 3.2%. <br />