Sarah Scaife Foundation 251113452 2005 02496419Searchable

,_. ' ..

Form990-PF

Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust

Treated as a Private Foundation

OMB No 1545-0052

Depanment cl the Treasury Internal Revenue Serw:e Note: The or amzat,on ma be able to use a co of this return to sat1s state re ortm re wrements ~@05 For ca endar year 2005, or tax vear beginning , 2005, and ending

G Check all that apply I I 1nit1al return I Final return I I Amended return I I Address change I I Name change

Use the IRS label.

Name of organization

SARAH SCAIFE FOUNDATION INCORPORATED

A Employer Identification number

25-1113452 Otherwise,

print Number and street (or P O box number 11 mall is not delivered to street address)

301 GRANT STREET

Room/suite B Telephone number (see page 10 of the instructions)

or type. See Specific ONE OXFORD CENTRE. SUITE 3900 Instructions. City or town, state, and ZIP code

PITTSBURGH. PA 15219

1412 I 392-2900 C If exemption apphcat,cn IS

pending, check here . . . . . . D 1 Foreign organ1zat1ans, check here

2. Foreign crgan,zatJcns meetmg the 85% test. check here and attach computation • • • • • • , •

:o H Check type of organization l2L] Section 501(c.1Q.) exempt private foundation

n Section 494 7(a)(1 \ nonexemot charitable trust I I Other taxable onvate foundation r .. 1 LJ E II prrvate lcundabcn status was terminated D I Fair market value of all assets at end J Accounting method ~ Cash Accrual under sectJcn 507(b)(l)(A). check here . ~

of year (from Part II, col (c), /me D Other (specify) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ F

16)~ $ 289 533 932. (Part/, column(d)mustbeoncashbas1s)

l:.F.Tii•• Analysis of Revenue and Expenses (The total of amounts m columns (b), (c), and (d) may not necessarily equal the amounts ,n column (a) (see page 11 of the mstruct1ons))

(a) Revenue and expenses per

books

(b) Net investment income

If the foundation .. In a SO.month terminaucn n under secbcn 507(b)(1)(8), check here . ~

(c) Adjusted net income

(d) Disbursements for charitable

purposes (cash basis onlv\

1

2

Ccnt11but,cn~ltts, grants, etc . rece,ved (attach schedule) .

Ch k ..._ X 1f lhe foundation 1s not required lo

ec .,.. attachSch B 1--~~~~~~~~+-~~~~~~~~+-~~~~~~~~4--~~~~~~~~

3 Interest on savings and temporary cash investments

4 D1v1dends and interest from securities 7.477.039. 7 477-039. NONE STMT 1

5 a Gross rents ................. 1----------+---------+---------+---------b Net rental income or (loss) ________ ~--------+----------+----------+---------

35,798,129.

6.757.994. GI 6 a Nel gain or (loss) from sale of assets not on line 10 ~ b Gross sales price for all GI assets on line 6a

6 757 994. ~ 7 Capital gam net income (from Part IV, hne 2) .

O::~li ,,. B · Net short-term capital gain ~ )

~ 9 Income mod1f1cat1ons · · · · · · · · ($..; ~ 0 a Gross sales less returns I f);;b and allowances ..... 1--------+--------+---------+---------+---------<:::; ~ b Less Cosl of goods sold . IL---------+----------+---------+----------+--------~ ~- c Gross profit or (loss) (attach schedule)

763 049. 763.049. NONE STMT 2 14.998.082. 14 998 082. NONE

524 745.

329 r-.n O I,!,..

100.797.

3.

~ ') 1 Other income (attach schedule) . . .

(.=, 12 Total Add Imes 1 throuoh 11 . • . .

lJ..I 13 Compensation of officers. d1reclors, trus~eft\. ,.._ ___ ....:::..,::_:.L...;:.._:..=.;:+----..=.c=-.L-'c.=-.:....:+-------====+------!..:.:::!..l.~..o...:::..:

~ 14 O~er~1,p~yn~~~s~~~~- ·0\1-----....::::..,=~~~+--------~+-------====+-------==~~~

~ 15 ~n~n~ans.~~~~~~~----=~==-=+------=~-~=-=+-------====+-------==~..::::.~

NONE 423.948.

NONE 329.669. 266 686. 27.175. NONE 239. 511.

7 021. NONE NONE 7 021.

92 981.

514. 668.

46. 491.

258.668.

c1: 16 a Legal fees (alt,schfE~T~i ~\'.{ \ (l}U) b Accountmgfes (alla schedule~M 4 jt-1::---"< \ ___ :....:::.L.:-==-,-----=-=CL....=-=-:..:.+------==c:..:..::'4-----..:....="'-':..=::..:

~ c Other profes 1ona fees (a~ch\c . ~-~5~ 1-V...,,,\~_.....:::...:..c'-L.==-=+----=:..:::...<...:::..:::..::~e-------=::.!..!,;~---~=--"'-L...!::..:::.!:'....;

NONE 46.490.

NONE 256.000.

161 318. 4.680. ~17 I~~---·~~--~~,~-~-----~------~---~=~-----~ ui 18 Taxes(attachsche ~)-( e~\~;' ,cnst'

NONE

NONE 41.248.

i 19 Deprec1allon (atta h scfie€)~ cldeplehon STMT

: 20

-c 21 c IG 22

g> 23 ;::

Occupancy ....

Travel, conferences, and meetings .

Printing and publications . . . . .

Other expenses (attach schedule) ~TM'.1'. 1 Total operating and administrative expenses.

19 38

230

44

115

455. NONE NONE

489. 23.487. NONE 207.002.

916. NONE NONE 44.916.

NONE

321. 7.242. NONE 108.079.

:! 24 GI a. O 26

468.543. NONE 1 703 884. Add Imes 13 through 23 . . . . . . . . . . ,.._ _ __,,2:J-:3::.c2e:....::::6..L;. -2:....:7c..=2=-,. ___ --=..:..:::.L.:::....:.=.:.+------.:..:..:==::.i-----=-r....:...-=-=c..r....:c..::....:....:

15.754.500. Contnbut1ons, gifts, grants paid . . . . . . . l---'1:.:3::!.L.::8:..7:..1:..r.->O'-'O::.O,c...:..+---------4----------4---~~:...:.-'-I-..::::.~ 26 Total exoenses and disbursements Add lines 24 and 25 16 19 7 2 7 2 . 468.543. NONE 17 458 384.

27 Subtract hne 26 from line 12

a Excess cf revenue ever expenses and disbursements . . 1------=1.L.:.1:,.;9~9.L.:.l:,.;9:c...;:;O...:.+---------+---------+--------b Net investment 1ncome(1f negative,enler-0~ 1--~~~~~~~~+-~~1~4~~-5~2=9~.5::.3~9~.4--~~~~~-~~~~~~-~-~~c Ad rusted net income 111 neaahve enter -0-l ..

For Privacy Act and Paperwork Reduction Act Notice, see the instructions JSA 5E1410 2 000

77270J 770C 05/01/2006 17:09:30 VOS-6

NONE

** STMT 6 Form 990-PF (2005)

3

JSA

' ' Form 99:l-PF (20051 25-1113452 Paae2

Attached schedules and amounts 1n the 1:ffl1jl Balance Sheets description column should be for end-of-vear amounts onlv (See instructions l

Beginning of year

(a) Book Value

End of year

(bl Book Value (cl Fair Market Value

1 Cash • non-interest-bearing . 25,805. 22.577. 22.577. 2 Savings and temporary cash investments . 8.427 886. 2 770 777. 2 770 777. 3 Accounts receivable .... ___________________ NONE

Less allowance for doubtful accounts .... _________ NONE t--------"2'""6'-L.o.=c'3 .... 6'-0"---'-l.1---------"N~O~N""'""E=t---------'N:.:..::O:..:.N::..:E 4 Pledges receivable .... _______________________ _

Less allowance for doubtful accounts .... _____________ 1----------11-----------t----------5 Grants receivable •.

6 Receivables due from officers, directors, trustees, and other

d1squahf1ed persons (attach schedule) (see page 15 of the 1nstruct1ons) t-------------11-----------t----------7 Other notes and loans receivable (attach schedule) .... ____ _

Less allowance for doubtful accounts .... _____________ t-------------11-----------t----------

111 8 Inventories for sale or use .. :l: 9 Prepa1dexpensesanddeferredcharges. STITT .8. 28.823. 6.667. 6.667. ~ 10 a Investments - US and state government obhgat1ons (attach schedule)*: 1-----=6-=2:...•r......:.4-=3-=2=--,'-=8-=1:..:5~. f-----'6=-0=-..r..--4:..4=-4.=...L...,0:..6:..5:=-..a.+----=5-=9'-'--4.:....:.7..::8'-'--8=3-=9'--'.

b lnvestments-corporatestock(attachschedule). STITT lP. 116.347 782. 123.247.802. 211 994 031. c lnvestments-corporatebonds(attachschedule) STITT l).. 6,088 440. 5,040,129. 5 011 749.

Investments - land, buildings, .... and equipment basis __________________ _ 11

Less accumulated deprec1at1on .... (attach schedule) - - - - - - - - - - - ________ 1-------------1~---------t----------

12 lnvestments - mortgage loans

13 Investments - other (attach schedule) . STITT l2. 7,263 888. 6,039,746. 10 174 104. 14 Land, buildings, and .... 8 2 4 5 0 7

equipment basis - STMT 19- - - -'- - - - ~ Less accumulated deprec1at1on .... ' 7 4 9 3 19 113 6 3 7 5 18 8 7 5 8 (attach schedule) _______________ '- ___ ~ 1-----=-==-'L..::'--'4:...::....,· f------=-=-..r..•...;::..::;..::;..:·+------..:....::'-'--1=..::8:...,.

15 Other assets (describe .... ____________________ ) t-------------1,-----------t----------16

17

18 Ill 19 QI

~ 20 jj

21

Total assets (to be completed by all filers - see page 16 of

the instructions Also see oaae 1 item 1\ •

Accounts payable and accrued expenses

Grants payable • •

Deferred revenue

Loans from officers. directors, trustees, and other d1squahfied persons

Mortgages and other notes payable (attach schedule) .

200.755.442. 197.646.951.

4.990.000. 3.106.500.

~ 22 Other hab1ht1es (describe .... ___________________ ) 1-------------11------------1

23

Ill ~ 24 ; 25

~ 26 "O c :::, u. ...

27 0 Ill 28 .. QI

: 29

~ 30 QI z

31

Total hab1hlles (add lines 17 throuah 22) ·

Organizations that follow SFAS 117, check here .... W and complete lines 24 through 26 and lines 30 and 31.

Unrestricted •

Temporarily restricted

Permanently restricted

Organizations that do not follow SFAS 117, check here and complete lines 27 through 31. .... D Capital stock, trust principal, or current funds • •

Paid-in or capital surplus, or land, bldg . and equipment fund

Retained earnings, accumulated income endowment, or other funds

Total net assets or fund balances (see page 17 of the

instructions) •

Total hab1ht1es and net assets/fund balances (see page 17 of

the 1nstruct1ons) . • .

4 990 000.

195 765.442.

195 765 442.

200.755,442.

Ulfl1jj1 Analysis of Changes in Net Assets or Fund Balances

3 106 500.

194 540 451.

194. 540. 451.

197,646.951.

1 Total net assets or fund balances at beginning of year - Part II, column (a), hne 30 (must agree wrth end-of-year figure reported on prior year's return) 1

2 Enter amount from Part I, hne 27a 2

3 Other increases not included in line 2 (itemize) .... _________________________ ------------ 3

4 Add lines 1, 2, and 3 4

5 Decreases not included in hne 2 (itemize) .... _____ SEE STATEMENT 13 ___________________ 5

6 Total net assets or fund balances at end of year (line 4 minus hne 5) - Part II column (bl. line 30 . 6

**STMT 9

289.533.932.

195 765 442. -1.199.190.

194 566 252. 25,801.

194 540.451. Form 990-PF (2005)

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JSA

Form 990-PF (2005) ?5-1113115? Page3 • ::,::T,, .. u- Capital Gains and Losses for Tax on Investment Income

(a) List and describe the kmd(s) of property sold (e g , real estate, (b) How (c) Date ld) Date sold acquired acquired P-Purchase mo, day, yr) 2-story bnck warehouse, or common stock, 200 shs MLC Co) D-DonatJon (mo , day, yr)

1a ST A TEMENT 24 b

c d

e (e) Gross sales pnce (f) Depreciation allowed (g) Cost or other basis (h) Gain or (loss)

(or allowable) plus expense of sale (e) plus (f) minus (g)

a b c d

e Complete only for assets showing gain m column (h) and owned bv the foundation on 12/31/69 (I) Gains (Col (h) gain minus

(1) FM V as of 12/31/69 (J) Adjusted basis (k) Excess of col (1) col (k), but not less than -0-) or as of 12/31 /69 over col (J), 11 any Losses (from col. (h))

a b

c d e

2 Capital gain net income or (net capital loss) { If gain, also enter 1n Part I, hne 7 } ..... If (loss), enter -0- 1n Part I, hne 7 2 6,757,994.

3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6)

If gain, also enter m Part I, line 8, column (c) (see pages 13 and 17 of the mstructJons) } If (loss), enter -0- 1n Part I, hne 8 __ . _ .... ____ .................. ... 3

1::.,.1oa,• Qualification Under Section 4940(e} for Reduced Tax on Net Investment Income (For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income)

If section 4940(d)(2) applies, leave this part blank

Was the organization liable for the section 4942 tax on the distributable amount of any year m the base penod?. . . . D Yes [Kl No If "Yes," the organization does not qualify under section 4940(e) Do not complete this part

1 Enter the appropriate amount m each column for each year, see page 18 of the instructions before making any entries

(a) (b) (c) (d)

Base period years Calendar year D1stnbut1on ratio (or tax vear beginning 1nl Adjusted qualifying d1stnbullons Net value of nonchantable-use assets (col Cbl dMded bv col fell

2004 15.662 022. 282.467.139. 0.05544723558

2003 15,766.052. 268.736.081. 0.05866741802

2002 16.962.136. 290. 472. 551. 0.05839497034

2001 19,520.180. 330.938 881. 0.05898424489

2000 22.741.995. 385.715.155. 0.05896059490

2 Total of line 1, column (d) ................................... - - 2 0.29045446373

3 Average d1stribut1on ratio for the 5-year base period - d1v1de the total on line 2 by 5, or by

the number of years the foundation has been m existence 1f less than 5 years ....... . . 3 0.05809089275

4 Enter the net value of noncharitable-use assets for 2005 from Part X, hne 5 4 286 448 540. ..........

5 Multiply line 4 by line 3 5 16 640 051. ................... . . . ................

6 Enter 1% of net investment income (1% of Part I, line 27b) ................... 6 145. 295.

7 Add Imes 5 and 6 7 16.785 346. . . . . . . . . . . . . . . . . . . . . . . .... ....... . . . . . . . .

8 Enter qualifying d1stribut1ons from Part XII, hne 4 _ . . . . . . . . . ....... . ....... 8 17.458.384. If line 8 1s equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1% tax rate See the Part VI instructions on page 18

5E1430 1 000 Form 990-PF (2005)

5 77270J 770C 05/01/2006 17:09:30 V05-6

... l

JSA

Forrn990-PF(2005) 25-1113452 Page4 1:#ffiilJJI Excise Tax Based on Investment Income {Section 4940(a), 4940(b), 4940(e), or 4948 - see page 18 of the Instructions)

Date of ruhng letter _________ (attach copy of ruling letter If necessary - see instructions) •

1 a Exempt operating foundations descnbed m section 4940(dl(2), check here .... LJ and enter "N/A" on hne 1 • }

b Domestic organizations that meet the section 4940(e) requirements m Part V, check 1 14 5. 2 9 5 •

here .... Wand enter 1% of Part I, hne 27b •••••••••.•••••••••••••••••••

c All other domestic organizations enter 2% of lme 27b Exempt foreign organizations enter 4% of Part I, lme 12, col (b)

2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only others enter -0-) 1--'2=--+-----------

3

4

5

6

7

B

Add Imes 1 and 2

Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-)

Tax based on investment income. Subtract line 4 from hne 3. If zero or less, enter -O

Cred1ts/Payments.

a 2005 estimated tax payments and 2004 overpayment credited to 2005

b Exempt foreign organizations - tax withheld at source • • • • • •

c Tax paid with application for extension of time to file (Form 8868).

d Backup withholding erroneously withheld • • • • • • • • • • • •

6a

6b

6c

6d

Total credits and payments. Add Imes 6a through 6d • • • • • • • • . ••••••••

Enter any penalty for underpayment of estimated tax Check here Q 1f Form 2220 1s attached

135.212.

NONE

NONE

3 145.295.

4 NONE

6 145.295.

7 135.212.

B

9 Tax due. If the total of Imes 5 and 8 is more than hne 7, enter amount owed • • • • • ....1--9~+------.......;l:;:..;;;.O.L • ....;O;_B;c,=..;3.

1 O Overpayment. If hne 7 1s more than the total of lines 5 and 8, enter the amount overpaid .... _1_0 __________ _

11 Enter the amount of hne 10 to be Credited to 2006 estimated tax.... NONE Refunded .... 11

1::,,r.am11r,w Statements Regarding Activities

Yes No 1 a During the tax year, did the organization attempt to influence any national, state, or local legislation or did

11 part1c1pate or intervene in any political campaign? • • • • • • • • • • • • • • • • • • • • • • • • • •

b Did 11 spend more than $100 during the year (either directly or indirectly) for polrt1cal purposes (see page

19 of the instructions for definrt1on)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

If the answer is "Yes• to 1 a or 1 b, attach a detailed description of the activities and copies of any materials

• • • • • • • • • • • 1--1'-'a:.......j.---+---=-X:...

• • • • • • • • • • 1--'1-=b~ _ __,f-..:aX:...

publtshed or d1strtbuted by the organization m connection with the act1vtt1es.

c Did the organization file Form 1120-POL for this year? •••••••••••••••••••••

d Enter the amount (1f any) of tax on poht1cal expenditures (section 4955) imposed dunng the year

1c X . . . . . . . . . . . . . . . ----------=-11) On the organization .... $ 12) On organization managers .... $ __________ _

e Enter the reimbursement (1f any) paid by the organization during the year for political expenditure tax imposed

on organization managers .... $ _________ _

2 Has the organization engaged m any act1v1t1es that have not previously been reported to the IRS? • • • • ••

If "Yes,• attach a detailed description of the act1vtt1es

3 Has the organization made any changes, not previously reported to the IRS, 1n rts governing instrument, articles

of incorporation, or bylaws, or other s1m1lar instruments? If "Yes,• attach a conformed copy of the changes

4a Did the organization have unrelated business gross income of $1,000 or more dunng the year?

b If "Yes," has 11 filed a tax return on Form 990-T for this year? •••••••••••••••

5 Was there a hquidat1on, termination, dissolution, or substantial contraction dunng the year? ••

If ·ves, • attach the statcrnent raq;;;;ad by General instruct,on T

6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either

• By language in the governing instrument, or

• By state leg1slat1on that effectively amends the governing instrument so that no mandatory d1rect1ons

that conflict with the state law remain in the governing instrument? • • • • • • • • • • • • • • • • • • • • • • • • • •

7 Did the organization have at least $5,000 m assets at any time during the year? lf"Yes, • complete Part II, col (c), and Part XV.

Ba Enter the states to which the foundation reports or with which 111s registered (see page 19 of the

instructions) .... PA.L ______________________________ ----------------------------------

b If the answer 1s "Yes" to line 7, has the organization furnished a copy of Form 990-PF to the Attorney

2 x

3 x 4a x 4b x 6 x

6 x 7 x

General (or designate) of each state as required by General Instruction G? If "No,• attach explanation • • •••

Is the organization claiming status as a private operating foundation within the meaning of section 4942())(3)

or 4942())(5) for calendar year 2005 or the taxable year beginning in 2005 (see instructions for Part XIV on

page 26)? If "Yes,• complete Part XIV • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

• • • • • • • • • t-""B=b--t--X--1--9

9 x 1 O Did any persons become substantial contributors dunng the tax year? If "Yes.• attach a schedule listing the,r names and addresses 10 x 11 Did the organization comply with the pubhc inspection requirements for its annual returns and exemption apphcat1on? ••• 11 x

Web site address .... _____ NjA ____________________ ------ ----------------------------- ------------

12 The books are m care of .... _ SARAH SCAIFE FOUNDATION INC. _________ Telephone no .... __ 412-392-2900 _______ _

13

Located at .... 301 _GRANT _STREET L_SUITE_ 3900..,_ PITTSBURGHL_PA ____ ZIP+4 .... 15219 ________________

0 Section 494 7(a)(1) nonexempt charitable trusts f1hng Form 990-PF m lieu of Form 1041 - Check here • • • • • • • • • NI A. ....... .... and enter the amount of tax-exem t interest received or accrued durin the ear • • • • • • • • • • • • .... 13

Form 990-PF (2005)

5E1440 1 000

77270J 770C 05/08/2006 16:39:46 V05-6 6

Form 990-PF (./005) 25-1113452 l:.F.T·•'~ll!l:• Statements Regarding Activities for Which Form 4720 May Be Required

File Form 4720 If any item Is checked In the "Yes" column, unless an exception applies. 1a During the year did the organization (either directly or indirectly)·

(1) Engage in the sale or exchange, or leasing of property wrth a disqualified person? •••••••• OYes

(2) Borrow money from, lend money to, or otherwise extend credrt to (or accept rt from)

a disqualified person? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • § Yes

(3) Furnish goods, services, or fac1lrt1es to (or accept them from) a d1squahfied person? . • . • • • • Yes

(4) Pay compensation to, or pay or reimburse the expenses of, a d1squahf1ed person· S'f1'.:1T 14-16 & 18 X Yes

(5) Transfer any income or assets to a d1squahfied person (or make any of either available

for the benefit or use of a d1squahfied person)? • • • • • • • • • • • • • • • • •

(6) Agree to pay money or property to a government official? (Exception. Check "No"

0Yes

[i) No

~

No

No

No

[i] No

1f the organization agreed to make a grant to or to employ the official for a period

after termination of government service, 1f terminating within 90 days) • • • • • • • • • • • • • D Yes [i] No

b If any answer is "Yes" to 1a(1)-(6), did any of the acts fail to qualify under the exceptions described in Regulations

section 53.4941 (d)-3 or in a current notice regarding disaster assistance (see page 20 of the instructions)? •

Organizations relying on a current notice regarding disaster assistance check here • • • • • • • • • • • •

c Did the organization engage in a prior year in any of the acts described in 1a, other than excepted acts,

that were not corrected before the first day of the tax year beginning 1n 2005? • • • • • • • • • • • • • •

2 Taxes on failure to distribute income (section 4942) (does not apply for years the organization was a pnvate

operating foundation defined in section 49420)(3) or 4942(1)(5))

a At the end of tax year 2005, did the organization have any und1stnbuted income (hnes 6d

and 6e, Part XIII) for tax year(s) beg1nnrng before 2005? • • • • • • • • • • • • • • • • • • • • • • 0 Yes [i] No If "Yes," hst the years .... __________ , _________ , _________ , ________ _

b Are there any years listed in 2a for which the organization 1s not applying the provisions of section 4942(a)(2)

(relating to incorrect valuation of assets) to the year's undistributed income? (If applying section 4942(a)(2)

to all years hsted, answer "No" and attach statement - see page 20 of the instructions ) • • • • • • • • •

c If the prov1s1ons of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here

~ ---------- ·--------- '--------- ·---------3a Did the organ1zat1on hold more than a 2% direct or indirect interest in any business O

enterprise at any lime during the year? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Yes

b If "Yes," did rt have excess business holdings 1n 2005 as a result of (1) any purchase by the organization

or drsqualif1ed persons after May 26, 1969, (2) the lapse of the 5-year period (or longer period approved

by the Commrss1oner under sectron 4943(c)(7)) to dispose of holdings acqurred by gift or bequest, or (3)

the lapse of the 10-, 15-, or 20-year first phase holdrng period? (Use Schedule C, Form 4720, to determine

if the orgamzat,on had excess business holdings in 2005) • • • • . . . • • • • . • • • • • • • • • • •

[i] No

4a Ord the organrzatron invest during the year any amount in a manner that would Jeopardize rts charitable purposes? •••••

b Ord the organization make any investment rn a prior year (but after December 31, 1969) that could Jeopardize rts charitable

purpose that had not been removed from Jeopardy before the first day of the tax year beginning in 2005? • • • •

5 a During the year drd the organization pay or incur any amount to· (1) Carry on propaganda, or athe!"Nise attempt to n1fluence leg!s!at1on (sect!on 4945(e))?

(2) Influence the outcome of any spec1frc public election (see sectron 4955); or to carry

on, drrectly or rndrrectly, any voter regrstrahon drrve? ••••••••••••••••

(3) Provrde a grant to an indrvrdual for travel, study, or other s1mrlar purposes? • • •••

(4) Provide a grant to an orgamzatron other than a charitable, etc, organization described

rn section 509(a)(1 ), (2), or (3), or section 4940(d)(2)? • • • • • • • • • • • • • • ••

Oves

0Yes

DYes

0Yes

[x] No

[ii No

[i] No

[i] No

(5) Provrde for any purpose other than relrgrous, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty lo children or animals? • • • • . • • • • • D Yes [i] No

b If any answer 1s "Yes" to 5a(1)-(5), did any of the transactions fail to qualify under the exceptions described rn

1b

1c

2b

3b

4a

4b

Regulations section 53 4945 or in a current notice regarding disaster assistance (see page 20 of the instructions)? •

0. · · · · · 5 b

Organizations relyrng on a current notice regarding disaster assistance check here • • • . • • • • • • • • • • ....

c If the answer 1s "Yes" to question 5a(4), does the organization claim exemption from the

tax because 1t maintarned expenditure respons1b1lrty for the grant? • • • • • • • • • • •

If "Yes,• attach the statement required by Regulations section 53.494:rS(d).

.N/f.. 0Yes

6 a Did the organization, during the year, receive any funds, directly or indirectly, to pay

premiums on a personal benefit contract? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D Yes b Did the organrzat1on, during the year, pay premiums, directly or indirectly, on a personal benefit contract? • • ••

If you answered "Yes• to 6b, also file Form 8870

0No

[i] No

6b

Page5

Yes No

x

x

x

x

NJIA

x

Form 990-PF (2005)

JSA SE 1450 1 000

77270J 770C 05/08/2006 16:39:46 V05-6 7

------------------

25-1113452 Forrf1 990-PF (2005)

and ontractors i:Jffilf]III Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, c 1 List all officers, directors, trustees, foundation managers and their compensation (see page 21 of the Instructions).

(a) Name and address (b) Title, and average ~c) Compensation (di Contributions to (e) Expense account, hours per week ( f not paid, enter employee boner~ plans other allowances ··- devoted to oos1t1on ~) and deferred comcensatlon

---------------------------------s EE ST A TEMENTS 14 - 16 524,745. 79,850. NON

--------------------------------------

-------------------------------------

-------------------------------------2 Compensation of five highest-paid employees (other than those Included on lme 1 . see page 21 of the Instructions).

If none, enter "NONE."

(b) Title and average (d) Contnbut1ons to

(e) Expense account, (a) Name and address of each employee paid more than $50,000 (c) Compensation employee benefrt hours per week plans and deferred other allowances

devoted to posrt1on compensation

-------------------------------------SEE STATEMENT 17 110,600. 25,900. NON

-------------------------------------

-------------------------------------

-------------------------------------

-------------------------------------Total number of other employees paid over $50,000 -~INONE 3 Five highest-paid Independent contractors for professional services - (see page 21 of the Instructions). If none, enter

"NONE." (a) Name and address of each person paid more than $50,000 (b) Type of seMce (c) Compensation

E

E

SEE STATEMENT 18 833 230.

Total number of others receiving over $50,000 for professional services .........•................... • I NONE

1iff 1tff Summary of Direct Charitable Activities

List the foundation's four largest direct charitable activities dunng the tax year Include relevant stabst1cal 1nformat1on such as the number of organizations and other benefic1anes served, conferences convened, research papers produced, etc

1_NOT_APPLICABLE ____________________________________________________________ _

2 ___________________________________________________________________________ _

3

4

JSA 5E14601000

77270J 770C 05/08/2006 16:39:46 V05-6

Expenses

Form 990-PF (2005)

8

Form 990~F (2005) 25-11134 52 1::r.1 ....... :• Summary of Program-Related Investments (see page 22 of the instructions)

Describe the two largest program-related investments made by the foundation dunng the tax year on lines 1 and 2 Amount

1 _NOT APPLICABLE-----------------------------------------------------------

2

All other program-related investments See page 22 of the 1nstruchons

3 _ NONE ______________________ ----- ______________________ --------------- -----

Total. Add Imes 1 through 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . ~

l::6m•• Minimum Investment Return (All domestic foundations must complete this part. Foreign foundabons, see page 22 of the instructions.)

1 Fair market value of assets not used (or held for use) directly 1n carrying out charrtable, etc,

purposes

a Average monthly fair market value of securrtres 1a 290.783.678. b Average of monthly cash balances_ 1b 27 023. c Fair market value of all other assets (see page 23 of the 1nstruct1ons). 1c NONE d Total (add Imes 1a, b, and c). 1d 290.810.701. e Reduction claimed for blockage or other factors reported on hnes 1a and

1 c ( attach detailed explanation) . . . . . . . . . . . . I 1 e I 2 Acqu1s1t1on indebtedness applicable to line 1 assets 2 NONE 3 Subtract line 2 from line 1 d 3 290. 810. 701. .. 4 Cash deemed held for charitable act1vrt1es Enter 1 1 /2 % of hne 3 (for greater amount, see page 23

of the instructions) 4 4 362 161. 5 Net value of noncharitable-use assets. Subtract hne 4 from line 3 Enter here and on Part V, line 4 5 286 448 540. 6 Minimum investment return. Enter 5% of line 5 . 6 14 322 427. i:iffil:41 Distributable Amount (see page 23 of the instructions) (Section 4942(J)(3) and (J)(5) private operating - ~n foundations and certain foreign organizations check here and do not complete this part )

1 Minimum investment return from Part X, line 6 . 1 14 322.427. 2a Tax on investment income for 2005 from Part VI, hne 5 i ~~ i 145 295.

b Income tax for 2005 (This does not include the tax from Part VI ) . I 2b I c Add Imes 2a and 2b 2c 145.295.

3 Distributable amount before adjustments Subtract hne 2c from hne 1 3 14.177.132.

4 Recoveries of amounts treated as qualifying d1stnbubons 4 NONE 5 Add Imes 3 and 4 5 14.177.132. .. 6 Deduction from distributable amount (see page 24 of the instructions) . 6 NONE 7 Distributable amount as adjusted Subtract hne 6 from hne 5 Enter here and on Part XIII,

line 1 7 14.177.132.

htfff31i Qualifying Distributions (see page 24 of the instructions)

1 Amounts paid (including admm1strat1ve expenses) to accomplish charitable, etc , purposes

a Expenses, contributions, gifts, etc - total from Part I, column (d), hne 26 .......•... 1a 17.458.384. b Program-related investments - total from Part IX-8 . . . . . . . . . . . . . . . . . . . . . . . 1b NONE

2 Amounts paid to acquire assets used (or held for use) directly in carrying out charrtable, etc,

purposes 2 NONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... 3 Amounts set aside for spec1f1c charitable projects that satisfy the

a Su1tab1hty test (prior IRS approval required) 3a NONE .......................... b Cash d1stribut1on test (attach the required schedule) 3b NONE .....................

4 Quahfymg distributions. Add Imes 1a through 3b Enter here and on Part V, hne 8, and Part XIII, hne 4 4 17 458 384. 5 Organizations that qualify under section 4940(e) for the reduced rate of tax on net investment

income Enter 1 % of Part I, hne 27b (see page 24 of the 1nstruct1ons) 5 145.295.

6 Adjusted qualifying distributions. Subtract hne 5 from hne 4 6 17 313 089. .................. Note: The amount on /me 6 will be used m Part V, column (b), m subsequent years when ca/culatmg whether the foundation

qualifies for the section 4940(e) reduction of tax m those years

Form 990-PF (2005)

JSA 5E14701 ODO

77270J 770C 05/01/2006 17:09:30 V05-6 9

Form 990-PF (2005) 25-1113452 Page8

1:fbfjjj1 Undistributed Income (see page 24 of the instructions)

(a) (b) (c) (d)

1 Distributable amount for 2005 from Part XI, Corpus Years prior to 2004 2004 2005

line 7 . . . . . . . . . . . . . . . . . . . . 14.177.132 . 2 Und1stnbuted income, 1f any, as of the end of 2004

a Enter amount for 2004 only ......... NONE b Total for pnor years NONE

3 Excess d1stribut1ons carryover, 11 any, to 2005

a From 2000 3.867.037. b From 2001 3 642.972. c From 2002 2.616.074. d From 2003 2.505.328. e From 2004 1 779 880. f Total of Imes 3a through e . . . ........ 14 411 291.

4 Qualifying d1stribut1ons for 2005 from Part

XII, line 4 ~ $ 17,458,384. a Applied to 2004, but not more than line 2a ... NONE

b Applied to undistributed income of prior years (Election required· see page 25 of the instructions) NONE

c Treated as d1stribut1ons out of corpus (Election required - see page 25 of the instructions) NONE

d Applied to 2005 distributable amount. ..... 14.177.132. e Remaining amount distributed out of corpus .. 3 281 252.

5 Excess d1stribut1ons carryover applied to 2005 (If an amount appears ,n column (d), the same amount must be shown ,n column (a))

6 Enter the net total of each column as indicated below:

a Corpus Add Imes 31, 4c, and 4e Subtract line 5 17.692 543.

b Prior years' undistributed income Subtract line 4b from line 2b NONE

0 0 0 I o o O O O O o o O O

c Enter the amount of prior years' undistributed income for which a notice of def1c1ency has been issued, or on which the section 4942(a) tax has been previously assessed . . . . . • . . NONE

d Subtract line 6c from line 6b Taxable amount - see page 25 of the instructions .... NONE

e Und1stnbuted income for 2004 Subtract line 4a from line 2a Taxable amount see page 25 of the 1nstrucllons NONE ..............

f Undistributed income for 2005 Subtract Imes 4d and 5 from line 1 This amount must be distributed 1n 2006 .......... . . .

7 Amounts treated as d1stribut1ons out of corpus to satisfy requirements imposed by section 170(b)(1 )(E) or 4942(9)(3) (see page 25 of the instructions) • . . . . • . . . • • . • NONE

B Excess d1stribut1ons carryover from 2000 not applied on line 5 or line 7 (see page 25 of

3.867.037. the instructions) • . . • . . • • . . • • . • .

9 Excess distributions carryover to 2006. Subtract Imes 7 and 8 from line 6a 13.825.506. . . . . ..

1 0 Analysis of line 9

a Excess from 2001 3.642 972. b Excess from 2002 2.616 074. c Excess from 2003 2.505.328. d Excess from 2004 1. 779. 880. e Excess from 2005 3.281.252.

Form 990-PF (2005)

JSA 5E1480 1 000

77270J 770C 05/01/2006 17:09:30 V05-6 10

l

Form 990-PF t2005) 25-1113452 Page9 •::E:i.• IU• Private Operating Foundations (see page 26 of the instructions and Part VII-A, question 9) NOT APPLICABLE 1a If the foundation has received a ruling or determ1nat1on letter that rt 1s a private operating

foundation, and the ruling 1s effective for 2005, enter the date of the ruling ..... b Check box to indicate whether the organization 1s a private operating foundation described in section I 4942())(3) or I I 4942())(5)

2a Enter the lesser of the Tax year Prior 3 years

(e) Total adjusted net income from (a) 2005 (b) 2004 (c) 2003 (d) 2002 Part I or the minimum investment return from Part X for each year listed

b 85% of line 2a

c aualofying d1stnbut,ons from Pan XII, line 4 for each year listed

d Amounts included m luie 2c not

used directly for active conduct of exempt actlVlties ,

e Cuallfy1ng d1str1butions made directly tor active conduct of exempt actrvrt.,es Subtract hne 2d from hne 2c

3 Complete 3a, b, or c for the altemauve test rehed upon

a •Assets• alternative test - enter

(1) Value of all assets

(2) Value of assets qualifying under sect10n

4942(J)(3XBH•), b "Endowmenr alternatt.'e test-

enter 2/3 of minimum invest-

ment return shown 1n Part X

line 6 for each year listed

c ·supporr alternatN"e test - enter

( 1) Total suppol1 other than gross investment income (,nterest, dMdends rents, payments on securntes leans (sect,on 512(a)(5)), or royalties)

(2) Suppon from general public and 5 or more exempt organizations as provided m sectlOn 4942 (JXJ)(BHIU) •

(3) Largest amount of sup-port from an exempt organization

(4) G rcss investment Lncome

1:r...o•:u• Supplementar~ lnform~tion (Complete this part only if_the org~nization had $5,000 or more in assets at any time during the year - see page 26 of the instructions.)

1 Information Regarding Foundation Managers:

a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation before the close of any tax year (but only 1f they have contributed more than $5 000) (See section 507(d)(2))

N/A b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the

ownership of a partnership or other entity) of which the foundation has a 10% or greater interest

N/A

2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs:

Check here..,.. D 1f the organization only makes contributions to preselected charitable organizations and does not accept unsohc1ted requests for funds If the organization makes gifts, grants, etc (see page 26 of the instructions) to ind1v1duals or organizations under other cond1t1ons, complete items 2a, b, c, and d

a The name, address, and telephone number of the person to whom apphcat1ons should be addressed

SEE STATEMENT ;,u)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~b The form 1n which apphcat1ons should be submitted and information and materials they should include

SEE STATEMENT 20 c Any subm1ss1on deadlines

SEE STATEMENT 20 d Any restrictions or lim1tat1ons on awards, such as by geographical areas, charitable fields, kinds of institutions, or other

factors

SEE STATEMENT 20 JSA 5E1490 1 000

77270J 770C 05/01/2006 17:09:30 V05-6

Form 990-PF (2005)

11

Form 990-PF (2005) 25-1113452 i:,,ftjf:\!J Supplementary lnfonnation (continued) 3 Grants and Contributions Paid During the Year or Approved for Future Payment

Recipient II recipient IS an Uldr.ndual, Foundation Purpose of ~rant or show any relationship to status of Amount Name and address (home or business) any roundatx>n manager rec1p1ent contnbu ,on

or substantial contnbutor

a Paid dunng the year

SEE ST A TEMENTS 21 & 22 15,754,500 .

Total ... 3a 15 754 500. b Jlpproved for fl..1ture pa;1ment SEE STATEMENT 22 3,106,500.

Total ... 3b 3.106.500.

Form 990-PF (2005)

JSA 5EU91 1 000

77270J 770C 05/08/2006 16:39:46 V05-6 12

Form,990-PF (2005) 25-1113452 ·~--,--.-· ...... _,_ Analysis of Income-Producing Activities Enter gross amounts unless otherwise indicated Unrelated business income Excluded b1 section 512, 513, or 514

(a) (b) (c) (d) Business Exclusion

1 Program service revenue code Amount code Amount

a

b

c

d

e

f

g Fees and contracts from government agencies

2 Membership dues and assessments • . . • •

3 Interest on saV1ngs and temporary cash investments

4 D1v1dends and interest from secunt1es ... 14 7,477,039.

5 Net rental income or (loss) from real estate

a Debt-financed property ........ b Nol debt-financed property ......

6 Net rental income or (loss) from personal property

7 Other investment income ......... 8 Gain or (loss) from sales of assets other than inventory 18 6.757.994.

9 Net income or (loss) from special events .. 1 O Gross profit or (loss) from sales of inventory.

11 Other revenue a

b VENTURE FUND INC. 900000 -40.669. 14 744,478.

c OTHER INCOME 01 59.240.

d

e

12 Subtotal Add columns (b), (d), and (e) . • . -40.669. 15 038 751.

13 Total. Add line 12, columns (b), (d), and (e}. .•..•...•.•..•••.••..••••••••••••• 13 (See worksheet m line 13 instructions on page 27 lo venfy calculations) ·~l~ .. , ... , =• Relationship of Activities to the Accomplishment of Exempt Purposes

(e) Related or exempt function income ~ee page 26 of I e instructions l

14,998,082.

Line No Explain below how each act1v1ty for which income 1s reported in column (e) of Part XVI-A contributed importantly to

...

JSA 5E14921000

the accomplishment of the orgarnzat1on's exempt purposes (other than by providing funds for such purposes) (See page 27 of the instructions )

NOT APPLICABLE

Form 990-PF (2005)

77270J 770C 05/01/2006 17:09:30 V05-6 13

JSA

1

25-1113452 Page12

Information Regarding Transfers To and Transactions and Relationships With Noncharitable E t O xemp rgamza t' ions

Did the organization directly or indirectly engage in any of the following with any other orgamzahon described in section

501 (c) of the Code (other than section 501 (c)(3) organizations) or in section 527, relating to political orgamzahons?

a Transfers from the reporting organization to a nonchantable exempt organization of

(1) Cash

(2) Other assets

b Other transactions

(1) Sales of assets to a noncharitable exempt organization

(2) Purchases of assets from a nonchantable exempt organization

(3) Rental of fac1ht1es, equipment, or other assets

(4) Reimbursement arrangements .

(5) Loans or loan guarantees

(6) Performance of services or membership or fundra1smg sohcrtahons

c Sharing of fac11it1es, equipment, mailing lists, other assets, or paid employees

d If the answer to any of the above 1s "Yes," complete the following schedule Column (b) should always show the fair market

value of the goods, other assets, or services given by the reporting organization If the organization received less than fair

market value in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services

received

Yes No

1al1l x 1al2l x

1bl11 x 1bl21 x 1bl31 x 1bl41 x 1bl51 x 1bl61 x

1c x

(a) Line no (b) Amount involved (c) Name of nonchantable exempt organization (d) Descnpt1on of transfers, transactions, and sharing arrangements

NIA N/A

2 a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations

described in section 501(c) of the Code (other than section 501(c)(3)) or 1n section 527? ••••••••••.•••••.• D Yes [i] No

b If "Yes" comolete the follow1no schedule (a) Name of organization (b) Type of organization (c) Description of relat1onst,rp

Under penalties of perJury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and behef, 11 1s true, correct, and complete Declaration of preparer (other than taxpayer or fiduciary) 1s based on all 1nformahon of which preparer has any knowledge

~ u!:!::::£rt~e· ~~ / I ~f {2-Lo, ~f,c. V11..6,. ni.~s t~e,.JT a, Title ... a,

~() M Da~/ut

Preparer's SSN or PTIN :c Check1f D (See Signature on page 28 c Ill >, Preparer's ~ self-employed .... of the instructions ) -~ 'I.. - . C? c?tJv.J2.N'"v UJ ~~5 signature

~~~ Firm's name (or yours 1f ~WTAS EIN .... 01-0719088 11. :::, self-employed), address, 335 COMMERCE DRIVE, SUITE 201 and ZIP code

FORT WASHINGTON. PA 19034 Phone no 215-654-1600

Form 990-PF (2005)

5E1493 1 000

77270J 770C 05/01/2006 17:09:30 V05-6 14

Form 2220 Underpayment of Estimated Tax by Corporations OMB No 1545-0142

Depanment of the Treasury Internal Revenue SeMCe

Name

~ See separate Instructions.

~ Attach to the cor oration's tax return.


~@05 Employer identification number

25-1113452 Note: Generally, the corporation ,s not reqwred to file Form 2220 (see Part II below for exceptions) because the IRS will figure any penalty owed and bill the corporation However. the corporation may still use Form 2220 to figure the penalty If so, enter the amount from page 2, /me 34 on the estimated tax penalty /me of the corporation's income tax return, but do not attach Form 2220.

l:.F.Tii•• Required Annual Payment

1 Total tax (see instructions). 1 145,295. .. . .

2a Personal holding company tax (Schedule PH (Form 1120), line 26) included on hne 1 2a

b Look-back interest included on hne 1 under section 460(b)(2) for completed long-term

contracts or section 167(g) for deprec,ahon under the income forecast method 2b

c Credit for Federal tax paid on fuels (see instructions) 2c

d Total. Add lines 2a through 2c 2d

3 Subtract line 2d from line 1 If the result 1s less than $500, do not complete or file this form The corporation

does not owe the penalty 3 145.295. 4 Enter the tax shown on the corporation's 2004 income tax return (see instructions) Caution: If the tax Is zero

or the tax year was for less than 12 months, skip this line and enter the amount from line 3 on line 5 4 241.215.

5 Required Annual Payment. Enter the smaller of line 3 or lme 4 If the corporation 1s required to skip hne 4, enter the amount from hne 3 5 145,295.

•::.fff•.11 Reasons for Filing - Check the boxes below tha_t apply: If any boxes are checked, the corporation must file Form 2220 even 1f 1t does not owe a penalty (see mstruct1ons).

6 The corporation 1s using the ad1usted seasonal installment method >--

7 _x. The corporation 1s using the annualized income installment method

8 The corporation 1s a "large corporation" figuring its first required installment based on the pnor year's tax

•:.. .hil !Im Figuring the Underpayment

(a) (b) (c) (d)

9 Installment due dates. Enter ,n columns (a) through (d) the 15th day of the 4th (Fonn 990-PF tilers: Use 5th month), 6th, 9th, and 12th months of the

9 05/16/2005 06/15/2005 09/15/2005 12/15/2005 corporal ion's tax year • . . 10 Required installments. If the box on line 6 and/or

hne 7 above ,s checked, enter the amounts from Schedule A. line 38 If the box on line 8 (but not 6 or 7) ,s checked, see instructions for the amounts to enter If none of these boxes are checked, enter

13.358_ 25% of line 5 above ,n each column , 10 36.324. 29.897. 38,031_

11 Estimated tax paid or credited for each period (see ,nstruchons) For column (a) only, enter the amount

11 80,212. 25 000. 30.000. from line 11 on line 15

Complete Imes 12 lhrough 18 of one column before going to the next column.

12 Enter amount, 1f any, from line 18 of the preceding 12 43.888. 13 991. 960. column ,

13 Add Imes 11 and 12 13 43,888. 38,991. 30,960. 14 Add amounts on lines 16 and 17 of the preceding column 14

15 Subtract line 14 from line 13 H zero or less, enter -0- 15 80,212. 43,888. 38,991. 30,960.

16 If the amount on hne 15 ,s zero. subtract line 1 3 from line 14 Otherwise. enter -0- 16

17 Underpayment. If hne 15 ,s less than or equal to hne 10. subtract hne 15 from line 10 Then go to lme 12 of the next column Otherwise. go to hne 18 17

18 Overpayment. If hne 10 IS less than line 15, subtract hne 10 from line 15 Then go to hne

43.888. 13.991. 960. 12 of the next column • 18

Go to Pan IV on page 2 to figure the penalty. Do not go to Pan IV if there are no entries on line 17 • no penalty is owed.

For Paperwork Reduction Act Notice, see separate instructions. Form 2220 (2005)

JSA 5XB006 2 000

77270J 770C 05/01/2006 17:09:30 V05-6 35

Utff1jj1 Figuring the Penalty

(a) (b) (c) (d) 19 Enter the date of payment or the 15th day of the 3rd month

after the close of the tax year, whichever 1s earher (see instructions) (Form 990-PF and Form 990-Tfilers. Use 5th month instead of 3rd month ) ............ . . . . 19

20 Number of days from due date of installment on hne 9 to the

date shown on hne 19 20 ............ . . . . . . . . . 21 Number of days on hne 20 after 4/15/2005 and before

10/1/2005 21 ..................... . . . .

22 Underpayment on hne 17 x Number of days on hne 21 x 6% 22 .. 365

23 Number of days on hne 20 after 9/30/2005 and before 4/1/2006 . .. 23

24 Underpayment on hne 17 x Number of days on hne 23 x 7% 24 .. 365

26 Number of days on hne 20 after 3/31/2006 and before 7/1/2006 25 ..

26 Underpayment on line 17 x Number of days on hne 25 x •% 26 365

27 Number of days on line 20 after 6/30/2006 and before 10/1/2006 .. 27

28 Underpayment on hne 17 x Number of days on hne 27 x •% • 28 .. 365

29 Number of days on line 20 after 9/30/2006 and before 1/1 /2007 . .. 29

30 Underpayment on hne 17 x Number of days on hne 29 x •% . 30 365

31 Number of days on lone 20 after 12/3112006 and before 2/16/2007 . 31

32 Underpayment on hne 17 x Number of days on hne 31 x •% 32 .. 365

33 Add Imes 22, 24, 26, 28, 30, and 32 ... . ....... 33

34 Penalty. Add columns (a) through (d) of hne 33 Enter the total here and on Form 1120, hne 33,

Form 1120-A, hne 29, or the comparable hne for other income tax returns • • . • . • . . • • • .............. 34

*For underpayments paid after March 31, 2006: For Imes 26, 28, 30, and 32, use the penalty interest rate for each calendar quarter, which the IRS will determine during the first month in the preceding quarter. These rates are pub!!shed quarterly m an !RS News Release and in a revenue ruling in the Internal Revenue Bulletin To obtain this information on the Internet, access the IRS website at www.irs.gov. You can also call 1-800-829-4933 to get interest rate information

Form2220 (2005)

JSA 5X8007 2 000

77270J 770C 05/01/2006 17:09:30 VOS-6 36

Form 2220 (2005) Page4

·~T•llll. Annualized Income (a) (b) (c) (d) Installment Method

First 3 First 4 First 7 First 10 20 Annualizahon periods (see 1nstruct1ons) 20 months months months months

21 Enter taxable income for each annuahzat1on period (see instructions) 21 3.755.307. 4.414,701. 8.108 482. 10780929.

22 Annualizahon amounts (see instructions) 22 4.00000 3.00000 1.71429 1.09091 23 Annualized taxable income Multiply hne 21

by line 22 23 15021228. 13244103. 13900290. 11761023. 24 Figure the tax on the amount on hne 23

using the instructions for Form 1120, Schedule J, line 3 (or comparable hne of corporation's return) 24 150,212. 132. 441. 139,003. 117,610.

25 Enter any alternative minimum tax for each

payment period (see instructions) 25

26 Enter any other taxes for each payment period (see 1nstrucllons) 26

27 Total tax Add Imes 24 through 26 27 150.212. 132. 441. 139 003. 117.610. 28 For each period. enter the same type of credits

as allowed on Form 2220 lines 1 and 2c (see instructions) 28

29 Total tax after credits Subtract line 28 from line 27 If zero or less, enter -0- 29 150.212. 132.441. 139.003. 117 610.

30 Applicable percentage 30 25% 50% 75% 100%

31 Multiply line 29 by line 30 31 37.553. 66.221. 104 252. 117.610. l:.F.Tillllll Required Installments

Note: Complete Imes 32 through 38 of 1st 2nd 3rd 4th one column before completmg the next column

installment installment installment installment

32 If only Part I or Part II is completed, enter the amount m each column from line 19 or line 31 If both parts are completed, enter the smaller of the amounts 1n each column from hne 19 or hne 31 32 37.553. 66.221. 104.252. 117,610.

33 Add the amounts m all preceding columns

of hne 38 (see instructions) 33 36.324. 66.221. 104 252. 34 Adjusted seasonal or annualized income

inct!:lllmont.:, ~ .. htr'!ll"'t l1no ~3 from hno

32 If zero or less, enter -0- 34 37.553. 29.897. 38, 031. 13 358. 35 Enter 25% of line 5 on page 1 of Form

2220 m each column (Note: "Large cor1r orations,• see the mstruct,ons for /me 10 for the amounts to enter) 35 36.324. 36.324. 36,324. 36,324.

36 Subtract line 38 of the preceding column from line 37 of the preceding column 36 6,427. 4,720.

37 Add Imes 35 and 36 37 36,324. 36.324. 42,751. 41,044. 38 Required installments. Enter the smaller of

line 34 or line 37 here and on page 1 of

Form 2220, line 1 O (see 1nstruct1ons) 38 36 324. 29.897. 38.031. 13 358. Form 2220 (2005)

JSA

5X8009 2 000

77270J 770C 05/01/2006 17:09:30 V05-6 37

SARAH SCAIFE FOUNDATION INCORPORATl~D 25-1113452

FORM 990PF, PART I - DIVIDENDS AND INTEREST FROM SECURITIES

DESCRIPTION

INTEREST INCOME DIVIDEND INCOME

TOTAL

77270J 770C 05/01/2006 17:09:30 V05-6

REVENUE AND

EXPENSES PER BOOKS

3,754,747. 3,722,292.

7,477,039.

NET INVESTMENT

INCOME

3,754,747. 3,722,292.

7,477,039.

16

ADJUSTED NET

INCOME

NONE NONE

NONE

STATEMENT 1


FORM 990PF, PART I - OTHER INCOME

DESCRIPTION

VENTURE INCOME MISCELLANEOUS INCOME

TOTALS

77270J 770C 05/01/2006 17:09:30 VOS-6

25-1113452

REVENUE AND

EXPENSES PER BOOKS

703,809. 59,240.

763,049.

NET INVESTMENT

INCOME

17

703,809. 59,240.

763,049.

ADJUSTED NET

INCOME

NONE NONE

NONE

STATEMENT 2


FORM 990PF, PART I - LEGAL FEES --------------------=--------==

DESCRIPTION

LEGAL FEES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

7 I 02 l_

7 I 021.

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

NET INVESTMENT

INCOME

NONE

NONE

18

ADJUSTED NET

INCOME

NONE

NONE

CHARITABLE PURPOSES

7 I 021.

7 I 021.

STATEMENT 3


FORM 990PF, PART I - ACCOUNTING FEE:S

DESCRIPTION

AUDIT, COMPLIANCE, AND TAX SRV

TOTALS

REVENUE AND

EXPENSES PER BOOKS

92,981.

92,981.

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

NET INVESTMENT

INCOME

46,491.

46,491.

19

ADJUSTED NET

INCOME

NONE

NONE

CHARITABLE PURPOSES

46,490.

46,490.

STATEMENT 4


FORM 990PF, PART I - OTHER PROFESSIONAL FEES

DESCRIPTION

FISCAL AGENT FEES CONSULTING

TOTALS

REVENUE AND

EXPENSES PER BOOKS ---------

258,668. 256,000.

514,668.

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

NET INVESTMENT

INCOME ------

258,668. NONE

258,668.

20

ADJUSTED NET

INCOME ------

NONE NONE

NONE

CHARITABLE PURPOSES --------

NONE 256,000.

256,000.

STATEMENT 5


FORM 990PF, PART I - TAXES

DESCRIPTION

FEDERAL EXCISE TAX PAYROLL TAX STATE TAX

TOTALS

REVENUE AND

EXPENSES PER BOOKS

115,000. 45,928.

390.

161,318.

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

NET INVESTMENT

INCOME

NONE 4, 680.

NONE

4,680.

21

ADJUSTED NET

INCOME

NONE NONE NONE

NONE

CHARITABLE PURPOSES

NONE 41,248.

NONE

41,248.

STATEMENT 6

.


FORM 990PF, PART I - OTHER EXPENSES

DESCRIPTION

COMPUTER MAINTENANCE

INSURANCE

DUES & SUBSCRIPTIONS

OFFICE EXPENSES

OFFICE TEMP

TELEPHONE

SECURITY

TOTALS

REVENUE AND

EXPENSES PER BOOKS

978.

16,730.

8,414.

23,498.

15,879.

5,184.

44,638.

115, 321.

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

..

NET ADJUSTED INVESTMENT NET CHARITABLE

INCOME INCOME PURPOSES ------ ------ --------

NONE NONE 978.

1,705. NONE 15,025.

997. NONE 7,417.

2,394. NONE 21,104.

1,618. NONE 14,261.

528. NONE 4,656.

NONE NONE 44,638.

7,242. NONE 108,079.

22 STATEMENT 7

SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452

FORM 990PF, PART II - PREPAID EXPENSES AND DEFERRED CHARGES

DESCRIPTION

PREPAID INSURANCE

TOTALS

77270J 770C 05/01/2006 17:09:JO V05-6

ENDING BOOK VALUE

6,667.

6,667.

23

ENDING FMV

6,667.

6,667.

STATEMENT 8


FORM 990PF, PART II - U.S. AND STATE OBLIGATIONS

DESCRIPTION

GOVERNMENT SECURITIES (SEE STATEMENT 12A)

US OBLIGATIONS TOTAL

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

ENDING BOOK VALUE

60,444,065.

60,444,065.

24

ENDING FMV

59,478,839.

59,478,839.

STATEMENT 9

SARAH SCAIFE FOUNDATION INCORPORATl::D

FORM 990PF, PART II - CORPORATE STOCK

DESCRIPTION

COMMON STOCK INVESTMENTS (SEE STATEMENT 12A)

TOTALS

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

ENDING BOOK VALUE

123,247,802.

123,247,802.

25

ENDING FMV

211,994,031.

211,994,031.

STATEMENT 10


FORM 990PF, PART II - CORPORATE BONDS -------------------------------=-----

DESCRIPTION

CORPORATE BOND INVESTMENTS (SEE STATEMENT 12A)

TOTALS

77270J 770C 05/01/2006 17:09:30 V05-6

25-1113452

ENDING BOOK VALUE

5,040,129.

5,040,129.

26

ENDING FMV

5,011,749.

5,011,749.

STATEMENT 11


FORM 990PF, PART II - OTHER INVESTMENTS --------------------------------------=

DESCRIPTION

VENTURE FUNDS (SEE STMT. 12A) MUTUAL FUNDS (SEE STMT. 12A)

TOTALS

77270J 770C 05/01/2006 17:09:30 V05-6

-------- ----------

25-1113452

ENDING BOOK VALUE

2,143,574. 3,896,172.

6,039,746.

27

ENDING FMV

2,701,464. 7,472,640.

10,174,104.

STATEMENT 12

ST A TEMENT 12A

SARAH SCAIFE FOUNDATION IN CORPORA TED

Schedule of Investments

December 31, 2005

Shares or Cost Fair Investments par value basis value

Cash: Cash 9,720 $ 9.720 9.720

Equity fund- (01-01-000-4276952): Money market:

Money market 271,686 271.686 271,686

Common stocks: Abbott Laboratories Inc. 40,000 1,828,000 1.577,200 ACCO Brands Corp. 8,225 121,514 201,512 Alberto Culver Co. 41,000 1,922.601 1,875,750 Allstate Corp. 44,000 1,985,948 2,379,080 Altria Group Inc. 307,000 9,966,821 22.939,040 American Express Co. 38,200 1,795,088 1,965,772 American International Group, Inc. 166,111 945,868 11,333,754 AMGEN Inc. 103,000 1,481,937 8,122,580 Automatic Data Processing Inc. 83,600 4,018,343 3,837,240 Berkshire Hathaway Inc. 900 2,028,491 2.641.950 BP P.L.C 79,400 643,335 5,099,068 Bristol-Myers Squibb Co. 85,000 1,945,259 1,953,300 ChevronTexaco Corp. 56,340 2,582,306 3.198,422 Cintas Corp. 62,200 1,518,303 2,558,286 Diebold, Inc. 55,400 2,833,421 2,105,200 Ecolab Inc. 40,000 949,832 1,450,800 Exxon Mobil Corp. 250,000 2,940,570 14,042,500 Fortune Brands, Inc. 35,000 1,897,276 2,730,700 FPL Group, Inc. 80,000 1,303,680 3,324,800 Gannett Co., Inc. 31,400 2,377,008 1,901,898 General Dynamics Corp. 22,000 1,932,762 2,509,100 General Elect.fie Co. 260,000 1,812,113 9,113,000 Graco Inc. 68,000 2,381,907 2,480,640 Home Depot, Inc. 95,250 2,934,992 3,855,720 Illinois Tool Works Inc. 5,600 524,336 492,744 Intel Corp. 148,000 739,000 3,694,080 International Business Machines Corp. 157,000 6,836,884 12.905.400 Johnson & Johnson 86,000 5,182,346 5,168,600 Johnson Controls, Inc. 19,400 1,143,605 1,414.454 Kellogg Co. 47,000 2, 117 ,180 2,031.340 Liz Claiborne Inc. 35,000 990,787 1,253,700 Lockheed Martm Corp. 25,000 883,025 1,590,750 Lowes Companies, Inc. 65,750 1.479,656 4,382,895 Marshall & Ilsley Corp. 69,000 2,957,614 2,969,760 McGraw Hill Cos., Inc 41,250 2,161,050 2,129,737 Medtronic, Inc. 89,000 4,671.600 5,123,730 Memll Lynch & Co., Inc. 72,859 1,321.241 4.934.740 Omnicon Group, Inc. 32,000 2,568,318 2,724,160 Paychex Inc. 27,000 998,833 1,029,240 Pepsico Jnc. 50,500 2,815,921 2,983,540 Praxair Inc. 52,000 2,497.634 2,753.920

(Continued)

SARAH SCAIFE FOUNDATION IN CORPORA TED


December 31, 2005

Shares or Investments par value

Equity fund - (01-01-000-4276952), continued: Common stocks:

Proctor & Gamble Co. 120,000 Southern Co. 55,498 Sprint-Nextel Corp. 88.725 Stryker Corp. 48,000 Sysco Corp. 50,000 Texas Instruments Inc. 80,000 3M Co. 41,500 U.S. Bancorp. 83,998 United Parcel Service, Inc. 13,500 United Technologies Corp. 120,000 UnitedHealth Group Inc. 64,000 Wachovia Corp. 52,015 Wells Fargo & Company 61,300

Mutual fund: !Shares Trust 112,000

Total equity fund -(01-01-000-4276952)

Cash equivalents mvestment fund - (01-01-000-4276937): Cash:

Cash 710 Money market:

Money market 625,668

Total cash equ1valents investment funds -(01-01-000-4276937)

Venture capital fund - (01-01-000-427691 l): Money market:

Money market 1,239,784

Venture funds: Venture funds

Total venture capital fund -(01-01-000-4276911)

Cost basis

$ 5,463,120 1,572,069

797,712 2,215,363 1,424,160 1,883,200 3,316,414 1,980,645 1,002,375 2,218,926 1,977,203 2,004,960 3,355,250

123,247 ,802

3,896,172

127,425,380

710

625,668

626,378

1,239,784

2,143,574

3,383,358

ST A TEMENT J 2A

Fair value

6.945,600 1,916,346 2,072,616 2,132,640 1,552,500 2,565,600 3,216,250 2,510,700 1,014,525 6,709,200 3,976.960 2,749,513 3,851,479

211,994 ,031

7,472.640

219,748,077

710

625,668

626,378

1,239,784

2.701,464

3,941,248

(Continued)

STATEMENT 12A SARAH SCAIFE FOUNDATION IN CORPORA TED


December 31, 2005

Shares or Cost Fair Jnvestments par value basis value

Bond fund - (01-0l-000-4276929): Money market:

Money market 177,579 $ 177,579 177,579

U.S. Treasury and agencies secunties: Federal Fann Credit Bank 2,000,000 2,007,420 2,045,000 Federal Home Loan Banks 3,700,000 3,751,364 3,764,782 Federal Home Loan Mortgage Corp. 5,000,000 5,382,192 5,205,330 Tennessee Valley Authority 3,000,000 3,088,520 3,053,580 Treasury Inflation Securities 6,500,000 6,871,349 7,321,387

21,100,845 21,390,079

Corporate bonds: GTE Northwest Inc. 775,000 860,750 772,822 Harvard University Massachusetts 1,000,000 1,077,163 1,043,020 National Rural Utilities 1,050,000 1,004,357 1,083,947 Pharmacia Corporation 1,000,000 1,071,680 1,030,030 South Carolina Electric Gas Co. 1,000,000 1,026,180 1,081,930

5,040,130 5.011,749

Total bond fund - (01-01-000-4276929) 26,318,554 26,579,407

U.S. Treasury fund (01-01-000-4276945) Money market:

Money market 445,630 445,630 445,630 U.S. Treasury securities:

U.S. Treasury Notes 37,880,000 39,343,221 38,088,760

Total U.S. Treasury fund (Ol-Ol-000-4276945) 39,788,851 38,534,390

Total investments $ 197,542,521 289,429,500

SARAH S~AIFE FOUNDATION INCORPORATED 25-1113452

FORM 990PF, PART III - OTHER DECREASES IN NET WORTH OR FUND BALANCES

DESCRIPTION

REMOVAL OF PRIOR PERIOD PREPAID FEDERAL EXCISE TAX

PRIOR YEAR UNREALIZED GAINS INCLUDED IN VENTURE FUND INCOME

TOTAL

77270J 770C 05/01/2006 17:09:30 V05-6

AMOUNT

20,192.

5,609.

25,801.

STATEMENT 13

28


FORM 990PF, PART VIII - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES --- --- - -- ----------------------------------------=--------

NAME AND ADDRESS

RICHARD M. SCAIFE 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

MICHAEL W. GLEBA 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

BARBARA L .. SLANEY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

R. DANIEL MCMICHAEL 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

YVONNE MARIE BLY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

T. WESTRAY BATTLE III 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

WILLIAM J. BENNETT

CONTRIBUTIONS EXPENSE ACCT TITLE AND TIME TO EMPLOYEE AND OTHER

DEVOTED TO POSITION COMPENSATION BENEFIT PLANS ALLOWANCES

CHAIRMAN/TRUSTEE NONE NONE NONE 32 HRS/QTR

EXECUTIVE VP 195,907. 33,200. NONE 32 HRS/WK

VP/TREASURER 245,738. 35,250. NONE 32 HRS/WK

SECRETARY NONE NONE NONE 32 HRS/QTR

ASST. TREASURER 48,600. 11,400. NONE 32 HRS/WK

TRUSTEE NONE NONE NONE 32 HRS/QTR

TRUSTEE (UNTIL 11 /17 /05) / NONE NONE NONE 32 HRS/QTR

77270J 770C 05/01/2006 17:09:30 V05-6 29 STATEMENT 14


FORM 990PF, PART VI I I - LIST OF OFF'ICERS, DIRECTORS, AND TRUSTEES ================================================-======-==-======-

TITLE AND TIME NAME AND ADDRESS DEVOTED TO POSITION COMPENSATION

301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

T. KENNETH CRIBB, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

EDWIN J. FEULNER, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ALLAN H. MELTZER 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

E. VAN R. MILBURY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ROGER W. ROBINSON, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

JAMES C. RODDEY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900

TRUSTEE 32 HRS/QTR

TRUSTEE 32 HRS/QTR

TRUSTEE 32 HRS/QTR

TRUSTEE {STARTING 11/17/05) 32 HRS/QTR

TRUSTEE 32 HRS/QTR

TRUSTEE 32 HRS/QTR

77270J 770C 05/01/2006 17:09:30 VOS-6

6,000.

6,000.

6,000.

1,500.

3,000.

4,500.

30

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE AND OTHER

BENEFIT PLANS ALLOWANCES

NONE NONE

NONE NONE

NONE NONE

NONE NONE

NONE NONE

NONE NONE

STATEMENT 15


FORM 990PF, PART VIII - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES -----------------------------------·--=======----=-----===========

NAME AND ADDRESS

PITTSBURGH, PA 15219-6401

JAMES M. WALTON 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ARTHUR P. ZIEGLER, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

TITLE AND TIME DEVOTED TO POSITION COMPENSATION

TRUSTEE 1,500. 32 HRS/QTR

TRUSTEE 6,000. 32 HRS/QTR

GRAND TOTALS 524,745.

77270J 770C 05/01/2006 17:09:30 V05-6 31


BENEFIT PLANS ALLOWANCES

NONE NONE

NONE NONE

79,850. NONE

STATEMENT 16


990PF, PART VIII - COMPENSATION OF THE FIVE HIGHEST PAID EMPLOYEES -------------------------------------------------------------------


NAME AND ADDRESS TITLE AND TIME

DEVOTED TO POSITION COMPENSATION BENEFIT PLANS ALLOWANCES

CAROL NOLAN 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ALEXIS J. KONKOL 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

EMPLOYEE 32 HRS/WK

EMPLOYEE 32 HRS/WK

TOTAL COMPENSATION

77270J 770C 05/01/2006 17:09:30 V05-6

55,533. 13,000. NONE

55,067. 12,900. NONE

110,600. 25,900. NONE

32 STATEMENT 17


990PF, PART VIII- COMPENSATION OF THE FIVE HIGHEST PAID PROFESSIONALS -------------------------------------------------------------==----==

NAME AND ADDRESS TYPE OF SERVICE COMPENSATION

KPMG LLP ACCOUNTING SERVICES 87,399. ONE MELLON CENTER PITTSBURGH, PA 15219

OXFORD DEVELOPMENT COMPANY/GRANT ST. FACILITY RENTAL 220, 951. ONE OXFORD CTR, PLAZA LEVEL,301 GRANT ST PITTSBURGH, PA 15219

R. DANIEL MCMICHAEL CONSULTING 266,212. ONE OXFORD CENTRE, 301 GRANT STREET PITTSBURGH, PA 15219

PNC BANK FISCAL AGENT 258,668.

PITTSBURGH, PA

TOTAL COMPENSATION 833,230.

STATEMENT 18

77270J 770C V05-6 33

SARAH SCAIFE FOUNDATION INCORPORATED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2005

FORM 990-PF

PART I, LINE 19- DEPRECIATION EXPENSE PART II, LINE 14 - LAND, BUILDINGS, AND EQUIPMENT

PART II, LINE 14 -ACCUMULATED DEPRECIATION

STATEMENT19

DESCRIPTION AMOUNT

LEASEHOLD IMPROVEMENTS OFFICE EQUIPMENT

SUBTOTAL FIXED ASSETS LESS: ACCUMULATED DEPRECIATION

NET FIXED ASSETS

316,204 508,303 824,507

(749,319) 75,188

DEPRECIATION AND AMORTIZATION EXPENSE FOR 12/31/05 WAS $38,455.

STATEMENT19

SARAH SCAIFE FOUNDATION Incorporated

One Oxford Centre 301 Grant Street, Suite 3900

Pittsburgh, Pennsylvania 15219-6401 412-392-2900

ANNUAL REPORT

ST A TEMENT 20

The Sarah Scaife Foundation's grant program is primarily directed toward public policy programs that address major domestic and international issues. There are no geographical restrictions. The Foundation does not make grants to individuals for any purpose or to nationally-organized fundraising groups. Proposals for the following are usually declined: event sponsorships, endowments, capital campaigns, renovations, or government agencies.

Initial inquiries to the Foundation should be in letter form signed by the organization's President, or authorized representative, and have the approval of the organization's Board of Directors. The letter should include a concise description of the specific program for which funds are requested, and a program budget and timetable. Accompanying information should include a copy of the latest audited financial statements and annual report; current budget; list of officers and directors and their major affiliations; and a copy of the current determination letter from the Internal Revenue Service evidencing tax-exempt status under Section 50l(c)(3) of the IRS Code. Additional information may be requested, if needed, for further evaluation.

The Foundation meets in February, May, September, and November to consider grants. However, requests may be submitted at any time and will be acted upon as expeditiously as possible.

Requests should be addressed to:

Michael W. Gleba Executive Vice President Sarah Scaife Foundation One Oxford Centre 301 Grant Street, Suite 3900 Pittsburgh, PA 15219-6401

ST A TEMENT 20

SARAH SCAIFE FOUNDATION IN CORPORA TED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2005

FORM 990-PF

Federal Footnotes

Grants Paid & Approved:

STATEMENT 21

All of the grantees shown on the attached statement of grants are exempt under Internal Revenue Code (IRC) Section 50l(c)(3), and have the status of public charities within the meaning ofIRC Section 509(A)(l)(2) or (3).

ST A TEMENT 21

ST A TEMENT 22 SARAH SCAIFE FOUNDATION INCORPORATED

Schedule of Grants

As of and for lhe 1welve months ended December 31, 2005

Accuracy in Media, Inc., Washington, D.C.

General operating support Allegheny Institute for Pubhc Pohcy,

Pmsburgh, Pennsylvania General operating supporl

American Academy for Liberal Educa11on, Washinglon, D.C

General operating supporl Amencan Bar Association Fund for Jusllce and

Educallon, Chicago, Illinois Standing Committee on Law and Nallonal Secunty

Amencan C1v1) Rights lnstltule, Sacramento, Cahfom1a

General operating support Amencan Councll of Trustees and Alumni,

Washington, D C General operating support

Amencan Enterprise Institute for Pubhc Pohcy Research, Washington, DC.

Program support Shadow Financial Regulalory Committee

America's Future Foundallon, Washington, DC.

General operating support Atlantic Legal Foundation,

New York, New York General operating support

Atlas Econorruc Research Foundation, Arhngton, V1Tg1nia

General operating and program support Boston University,

Bos1on, Massachusetts lnst11ute for the Study of Conflict,

Ideology and Pohcy Capital Research Center,

Washington, DC. Generai opera1ing and projeCI supporl

Carnegie Mellon Univernty, Pittsburgh, Pennsylvania

Ga1lhot Center for Public Pohcy Cato lnstJlute,

Washing1on, D.C Program support

Center for Equal Opponunity, Sterling, Vugin1a

Project support Cenler for Freedom and Prosperlly Founda11on,

Alexandna, Vug1nia Project support

Center for lmm1gra11on Studies, Inc , Washing1on, D.C.

General operating support Center for Secun1y Policy, Inc ,

Washmg1on, D C. General operallng support

Cenler for Strategic and ln1ema11onal S1ud1es, Inc , Washington, DC

Secunty-related s1ud1es, special projects and s1aff support

$

Payable, December 31,

2004

65,000

January 1 to December 31, 2005

Approved Paid

300,000 300,000

110,000 110,000

50,000 50,000

130,000 195,000

150,000 150,000

50,000 50,000

200,000 200,000 25,000 25,000

45,000 45,000

100,000 100,000

200,000 200,000

89,500 45,000

235,000 235,000

150,000 150,000

60,000 60,000

50,000 50,000

45,000 45,000

150,000 150,000

350,000 350,000

435,000 435,000


2005

44,500

(Continued)


Schedule of Grants

As of and for the twelve months ended December 3 I, 2005

Center for the Study of Popular Culture Los Angeles, California

General operating and project suppon Center for the Study of the Presidency

Washington, D.C. Program support

Claremont lns111ute for the Study of Statesmanship and Pollucal Philosophy Claremont, California

General operating, program and Washington Fellow suppon

Collegiate Network, Inc . W1lrrungton, Delaware

General operaung suppon Professional Journalism Fellowships

The Commonwealth Foundation for Public Pohcy Altemauves,

Hamsburg, Pennsylvania General operating support

Compeuuve Enterpnse lnslllute, Washington, DC.

General operaung suppon Project suppon

Duquesne Uruversny, Pmsburgh, Pennsylvama

Project support Envrronmental Literacy Council,

Washington, DC. General operating support

Ethics and Public Pohcy Center, Inc , Washington, D.C.

General operaung and program support The Federalist Society for Law & Public Policy Studies,

Washington, D.C. General operating and project support

Foreign Policy Research Institute, Phlladelph1a, Pennsylvania

Genera! operating and conference suppun The Foundallon Endowment,

Alexandna, Vugin1a General operaung suppon

Foundauon for California University of Pennsylvania, California, Pennsylvania

Government Agency Coordination Office Foundation for Cultural Review, Inc,

New York, New York General operating support

Foundauon for Individual Rights in Educauon, Inc., Ph1ladelph1a, Pennsylvania

General operaung support Foundauon for the Defense of Democracies, Inc ,

Washington, DC Program suppon Project suppon

Freedom House, Inc , Washington, DC

Center for Rehg1ous Freedom Freedom Works Foundauon,

Washington, DC General operaung and pro1ect support

$


2004

125,000


Approved Paid

300,000 150,000

150,000 150,000

325,000 325,000

140,000 140,000 50,000 50,000

130,000 130,000

150,000 150,000 150,000 150,000

35,000 35,000

75,000 75,000

175,000 175,000

325,000 325,000

50,000 50,000

75,000 75,000

125,000 125,000

260,000 260,000

125,000 125,000

125,000 150,000 150,000

140,000 140,000

250,000 250,000

ST A TEMENT 22


2005

150,000

(Continued)

ST A TEMENT 22


Schedule of Grants

As of and for the twelve months ended December 31, 2005

Galen lnstnute, Inc Alexandria, Vugmia

General operatmg support George C MarshaJI Jnsutute,

Washington, DC General operatmg support

George Mason Umversny Foundauon, Inc., Farrfax, Virgmia

Law and Econonucs Center The Herllage Foundauon,

Washington, D.C. General operating support

High Frontier, Washmgton, D.C

Program support Hudson lnstnute, Inc.,

Indianapolis, Indiana ProJeclS support

Independent Women's Forum, Washington, D C.

General operatmg support Institute for Foreign Policy Analysis, Inc ,

Cambridge, Massachusetts Economic Secunty Program General operaung support

lnstitute for Health Freedom, Washington, D.C

General operatmg support lnsutute for Humane Studies, Inc.,

Arlington, Vugima General operatmg support

lnstllute for Jusuce, Washmgton, D.C.

General operatmg support lnterc0Jleg1ate Studies lnsutute, Inc.,

Wilmington, Delaware Civic Lneracy ProJect General operating support

International Policy Network US, Inc , Washington, D.C

General operatmg suppon Jamestown Foundauon,

Washmgton, D.C General operaung support

Johns Hopkins Umversny, Washington, D.C

The Paul H Nnze School of Advanced lntemauonal Studies

Landmark Legal Foundation, Kansas City, M1ssoun

General operating support L1gomer Valley School D1stnct.

Ligonier, Pennsylvania Chnstmas gift program

Manhattan lnsutute for Pohcy Research, Inc , New York, New York

General operatmg, project and pubhcauon support Media Research Center,

Alexandria, Virginia General operating support

$


2004

800,000

300,000

350,000


Approved Paid

35,000 35,000

155,000 155,000

200,000 200,000

800,000

100,000 50,000

150,000 150,000

150,000 150,000

160,000 160,000 450,000 450,000

200,000 100,000

50,000 50,000

100,000 100,000

100,000 350,000 350,000

50,000 50,000

135,000 135,000

187,000 187,000

250,000 250,000

7,500 7,500

240,000 240,000

350,000


2005

50,000

100,000

200,000

(Continued)


Schedule of Grants

As of and for the twelve months ended December 31, 2005

Mercatus Center, Inc , Fairfax, Virginia

General operating support M1ch1gan State Universlly,

East Lansing, Michigan Program support

Mountain States Legal Foundauon, Lakewood, Colorado

General operating support Nantucket Sustainable Development Corporation,

Nantucket, Massachusetts Program support

National Association of Scholars, Inc., Princeton, New Jersey

General operating support NalJOnal Aviary Pmsburgh, Inc,

Pmsburgh, Pennsylvania Bud show

National Center for Pohcy Analysis, Dallas, Texas

General operating support National lnsutute for Public Policy,

Fairfax, Virginia Program support

Nauonal Taxpayers Union Foundation, Alexandna, Vug1ma

Congressional Budget Tracking System New England Legal Foundation,

Boston, Massachusetts General operating support

Pacific Research Insutute for Pubhc Policy, San Francisco, Cahfomia

General operating support Philadelphia Society,

Chicago, llhno1s General operating support

Phipps Conservatory and Botanical Gardens, Inc., P111sburgh, Pennsylv~ma

Campaign 2000 Mellon Park improvements

P1t1sburgh History and Landmarks Foundation, Pmsburgh, Pennsylvania

W1Jkmsburg Revolving Fund Police Execuuve Research Forum,

Washington, DC ProJect and pubhca11on suppon

Pnnce1on Univers11y, Princeton, New Jersey

James Madison Program in Amencan Ideals and lnst11uuons

Samt Ymcent College, Latrobe, Pennsylvania

Center for Poliucal and Economic Thought The Salvauon Army, Western Pennsylvania D1vJSJon,

P111sburgh, Pennsylvania Local rehef efforts

Social Philosophy and Pohcy Foundation, Bowling Green, Ohio

Social Philosophy and Pohcy Center

$


2004

100,000

3,250,000


A pp roved Paid

80,000 80,000

100,000 100,000

25,000 25,000

10,000 10,000

250,000 250,000

100,000

125,000 125,000

200,000 200,000

60,000 60,000

60,000 60,000

200,000 200,000

15,000 15,000

1,000,000 112,000

500,000 500,000

150,000 150,000

75,000 75,000

35,000 35,000

50,000 50,000

625,000 625,000

ST A TEMENT 22


2005

2,250,000 112,000

(Continued)

I 'I ;.


Schedule of Grants

As of and for the twelve months ended December 3 I, 2005

Southwest M1ssoun State University Foundation, Springfield, M1ssoun

Department of Defense and Strategic Studies Stanford University, Hoover lnst1tu1Jon on War.

Revolution and Peace Stanford, California

Programs and fellows support Stat1st1cal Assessment Service.

Washington, D.C. General operating support

Tax Foundation, Washington, DC.

General operating and proJect support Thoreau lnstnute,

Bandon, Oregon ProJeCt support

Tufts University, Medford, Massachusetts

The Fletcher School of Law and Diplomacy The Universny of Chicago,

Chicago, lllinois George J. Sugler Center for the Study of the

Economy and the State Law and Econorrucs Program

University of Kentucky, Lexington, Kentucky

Program in Quahty, Safety and Pauent Rights University of Virginia Law School FoundatJon,

Charlottesvdle, Virginia Center for National Secunty Law

The UPG FoundatJon, Greensburg, Pennsylvania

Smar1 Growth Partnership of Westmoreland County

World Affairs Council of Pittsburgh, Pmsburgh, Pennsylvania

Teacher-Student Educational ProJects

$

,r ...


2004

A nnn tv\n ""t 1 77V 1 \JVV

January I to December 31, 2005

A pp roved Paid

150,000 150.000

500,000 500,000

100,000 100,000

100,000 100,000

50,000 50,000

300,000 300,000

50,000 50,000 150,000 150,000

300,000 100,000

325,000 325,000

25,000 25,000

75,000 75,000

j3,87j,QOO i5,754,500

ST A TEMENT 22


2005

200,000

3,i06,500

SARAH SCAIFE FOUNDATION IN CORPORA TED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2005

FORM 990-PF

Federal Footnotes

Allocation of Expenses in Part I:

ST A TEMENT 23

Compensation of officers, trustees, and other employees, as well as the related employee benefits are allocated based on time spent in carrying out the Foundation's exempt purpose versus time spent in the production of income. Professional fees are allocated based on the nature of services performed for the Foundation. All other expenses are prorated based on the salary expense and the Foundation's estimates, with the exception of investment expenses, which are directly related to producing income.

ST A TEMENT 23

-------

4

,.


Schedule of Gains (Losses) ror Tax on Investment Income

Twelve months ended December 31. 2005

(a) (h) (cl (d) (e) co (h) (I) Ul (k) (I) (m) LO'ises from

How Cost or Gain Fair market column (I) acquired other basis (los~) value as of Exces~ anrl gain~

Kind or P-purchase Date Date sold/ Gross and expense ((0 December 31, Adjusted of Ul (excess (i)

eroecrt:z: Dcscrletlon D-donated acgulred matured sale erlce of sale less (h)) 1969 cost basis over (k) over (I))

Security ACCO BrJnds Corp p 12115/97 08126/05 s 14 9 s NIA NIA NIA s 5

Secunly Amgen, Inc 06/03196 09120/05 851..544 148,661 702.883 NIA NIA NIA 702.883

Secun1y Amgen. Inc 06103/96 09120/05 1,438.387 252.723 1.185.664 NIA NIA NIA 1.185 664

Security Anheuser Busch Companies Inc p 10/03100 06107/05 2.259.841 2,028,835 231.006 NIA NIA NIA 231,006 01/31/01

Security Boeing Co. p 03/10/04 02123/05 1.214.301 949,241 265,060 NIA NIA NIA 265 060

Security Countrywide Financial Corp p 03/10/03 02123/05 825,857 316,175 509,682 NIA NIA NIA 509,682

Security Federal National Mortgage Association p 12129/98 02123/05 861,703 1,044,540 (182.837) NIA NIA NIA (182.837) 06/16198

Security General Mills. Inc. 12111/97 09120/05 903.936 776.638 127.298 NIA NIA NIA 127.298

Security General Mills. Inc 12111/97 09120/05 1.3.52.313 1.164,956 187.357 NIA NIA NIA 187.3.57

Security Hewleu Packard Co p 03/10/04 02123/05 996,596 1,101.626 (105,030) NIA NIA NIA (105.030)

Security Hewlett Packard Co. p 03/10/04 02123/05 812.364 899,287 (86.923) NIA NIA NIA (86.923)

Security Merck & Co , Inc p 10/19/87 02123/05 1.897,200 821.916 1.075,284 NIA NIA NIA 1,075.284 02125/93

Securily Moody's Corp p 03110/04 02123/05 1,592,464 1.306.608 285.856 NIA NIA NIA 285.856

Security Dominion Resources Inc p 03/16/03 06/07/05 2.151.661 1,833.194 318,467 NIA NIA NIA 318.467 05/06/02

Security MBNA Corp p 09122/03 06107/05 3.447,904 3,849,096 (401.192) NIA NIA NIA (401.192) 12122/03

Security WJl·MartStores Inc p 12111/97 06/07/05 3.590,692 1.813.181 1,777,511 NIA NIA NIA 1.777.511 12129198

Security Pfizer. Inc 05103101 09120/05 1.016,000 1,707.211 (691.211) NIA NIA NII\ (691,211) 05/15101 08127101

Security Pfizer. Inc 10/12101 09120105 2, 176.882 3.348,873 (1.171.991) NIA NIA NIA (1.171.991) 02101/95 08127101

Security Sprint-Nextel Corp p 12120/98 08124/05 4 I 3 NIA NIA NIA 3 (/) ...., :;i:.. ...., m ?;:: m z ...., N ~

(Continued)

(a) (h) (c)

How acquired

Kind or P-purchase eroeert;!'. Descrletlon D-donnted

Securny General Electric Capllal Corp

Sccunly Federal Farm Credi!

Sccurny Amenpnse Financial, Inc

Security Home Depot. Inc

Security Lowes Companies. Inc

Security Zimmer Holdings, Inc


Schedule of Gains (Losses) for Tax on !nves1men1 Income

Twelve months ended December 31, 2005

(d) (e) co (h)

Cost or other basis

Date Date sold/ Gross and expense acgulred matured sale erlce or sale

05/18/05 11/01105 s 1.000.000 1.048,310

08/01199 11123/05 2,018,540 1.988,750

05115100 11122105 321.568 256.133 10103100 01131/01

12129198 11122105 963,032 902.109 05/10199

12129198 11122105 2.296.045 911.826 05110199

12109186 11122105 1,809,281 570,237 10116189 02125193 08127/01

$ 35,798,129 29,040,136

(I) (I) (kl

Gain Fair market (loss) value as of ((r) December JI, Adjusted

less Ch)! 1969 cost hasls

(48,310) NIA NIA

29.790 NIA NIA

65,435 NIA NIA

60,923 NIA NIA

1.384.219 NIA NIA

1,239,044 NIA NIA

6,757,993 NIA NIA

(I)

Excess orO)

over (kl

NIA s

NIA

NIA

NIA

NIA

NIA

NIA s

(m) Losses from column (I) and gains (excess (I) over (Ql

(48.310)

29,790

65.435

60.923

1.384.219

1.239.044

6,757,993

(/)

-l :> -l [TJ

~ [TJ z -l N ~

' .. • T

Sarah Scaife Foundation 251113452 2005 02496419Searchable

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