Sarah Scaife Foundation 251113452 2006 0326080FSearchable

I

• I , ..

JSA

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

Treated as a Private Foundation

OMB No 1545-0052

Depanment of the Treasury Internal Revenue Service Note: The foundation ma be able to use a co ofth,s return to satis state re ortin r uirements ~@06 For calendar vear 2006, or tax vear beglnnina , 2006, and ending

G Check all that apply: I I lmt1al return I I Final return I I Amended return I I Address change I I Name change Name of foundation A Employer Identification number

Use the IRS label. SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452

Otherwise, Number and street (or P 0. box number if mail is not delivered to street address) Room/suite B Telephone number (see page 11 of print

301 GRANT STREET the instructions)

or type. ONE OXFORD CENTRE. SUITE 3900 1412) See Specific 392-2900 City or town, state, and ZIP code c II exemption appllcaUon Is

:t] Instructions. pending. check here ...... D 1. Foreign organlzaUons. check here

PITTSBURGH PA 15219 2. Foreign organlzaUons meeting the

H Check type of orgamzabon. lxJ Section 501 (cfl exempt private foundation 85'11, test. check here and attach .... o n Section 49471aH1) nonexempt chantable trust Other taxable orivate foundation computation • • • • • • • •

E II private foundation slatus was IBrmlnated D I Fair market value of all assets at end J Accounting method· X Cash LJ Accrual under secUon 507(bX1 XA). check here • ....

of year (from Part II, col. (c), /me D Other (specify)------------------- F II the foundation Is In a 60-month termination n 16) .... $ 305.786 196. (Part/, column (d) must be on cash basis.) under section 507(bX1XB). check here • ....

•~•• Analysls of Revenue and Expenses (The (a) Revenue and (d) Disbursements

total of amounts in columns (b), (c), and (d) (b) Net investment (c) Adjusted net for charitable may not necessarily equal the amounts in expenses per income income purposes column (a) (see page 11 of the instructions} J books

(cash basts onlv)

1 Contribution~, grents. etc , rece;,ed (attach schedule) •

2 .... X 1f the foundation 1s not required to

Check attach Sch B

3 Interest on savings and temporary cash 111vestments

4 Dividends and interest from securities 8.687-756. 8 687-756. ,-....... STMT 1

Sa Gross rents . • • . • • • • • • • • • • • • • I ~ :::--. ... b Net rental income or (loss) J K_ I t;: ( tr,,.~

QI 6a Net gain or (loss) from sale of assets not on hne 10 11.212.544. jg]/ -........::.: ::,,1v~f"',,,-....... :::, b Gross sales pnce for all 54,417,032. 71 if[1i:i - -.....:::::u I a:: QI assets on hne Sa > 7 Capital gain net income (from Part IV, line 2) • STATEMENT 2 ) 11- 212 544. I ........._

~ pf?,., /(1/ QI 0:: ' !......_ ( }~;:,......_ .._V(// /~/ B Net short-term caprtal gain

9 Income mod1f1cations • • • • • • • • • ... ............... """'u /;;;' 1l ' ~ /d.,-/ 10 a Gross sales less returns I ........::::..: u, / J;,,. __,~ I

and allowances • • • • • b Less Cost of goods sold • I ~ I c Gross profit or (loss) (attach schedule) • "' 11 Other income (attach schedule) • • • • 967.875. 967.875. NONE STMT 2

12 Total. Add lines 1 throuoh 11 • • • . • 20.868 175. 20-868.175. NONE

13 Compensation of officers, directors, trustees, etc • 544.360. 87-838. NONE 456.522. 14 Other employee salaries and wages • • • • 336.924. 18.249. NONE 318.675.

CII QI 15 Pension plans, employee benefits • • • • • 335.278. 34-467. NONE 300.811. CII a:: ! 16a Legal fees (attach schedule) ••• ~Tl-17'. ~ 2 309. NONE NONE 2 309. )( b Accounting fees (attach schedule~Tl-17'. 4 94 858. 47.429. NONE 47.429. w QI c Other professional fees (attach sc6liMII!~ 5 . 519.217. 263-217. NONE 256.000. > ;:

17 Interest ••••••••••••• ~T:M'J'. 6 . 786. 786. NONE NON ca ... E -18 Taxes (attach schedule) (see page 14 or the lnstructlonsT' 267.373. 5-170. NONE 45.121. CII

a:: 19 Deprec1at1on (attach schedule) and depletion 38.455. NONE NONE STMT si"A E ,, 20 Occupancy .••.••••.••• 239.702. 24.641. NONE 215.061.

ct ,, 21 Travel, conferences, and meellngs. • • • • 53 299. NONE NONE 53.299. a:: ca 22 Printing and publications • • • • • • • • • Cl

Other expenses (attach schedule)~T:M'J'. e 116. 734. 6.189. NONE 110.545. a:: 23 ;: ca 24 Total operating and administrative expenses. ... QI

Add Imes 13 through 23 2.549.295. 487.986. NONE 1.805-772. a. .......... 0

25 Contributions, gifts, grants paid • ~T:M'J'. 9 . 15.823 000. 15.603.000. 26 Tatel exoenses and dlsbur.,emen1s. Add Imes 24 and 25 18.372.295. 487-986. NONE 17.408.772. 27 Subtract line 26 from line 12·

a Excess of revenue over expenses and disbursements • • 2.495 880. b Net investment income (1f negattVe, enter -0-) 20.380-189. c Adjusted net income (1f n"""live enter -0-). . NONE

For Privacy Act and Paperwork Reduction Act Notice, see the instructions. **STMT 7 Form 990-PF (2006)

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Form 990-PF (2006) 25-1113452 p.,,,e 2 Attached schedules and amounts in the Beginning of year End of year ljjfiIJIII Balance Sheets description column should be for end-of-year t----'...C..:,--=-'""'"':.....;_.......::..=.:...-,-------.......:::.;.;.::...,-:..L..::::.:.. ______ _ amounts only (See instructions) (a) Book Value (b) Book Value (c) Farr Market Value

1 Cash-non-interest-beanng, •• 22.577. 33.880. 33,880. 2 Savingsandtemporarycashinvestments..... 2.770.777. 7.393.269. 7 393.269. 3 Accounts rece,vable .... ___________________ NONE

Less allowance for doubtful accounts .... _________ NONE NONI NONE NONE 1-~~~~~-=:=-"=t-~~~~~-==:.;=i-~~~~~---'~~ 4 Pledges receivable .... ________ ----------------

Less: allowance for doubtful accounts .... _____________ t---------+---------+---------5 Grants receivable • • • • • • • • • •

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

d1squahf1ed persons(attach schedule) (see page 16 of the 1nstruct1ons) t---------+---------+---------7 Other notes and loans receivable (attach schedule) .... ____ _

Less: allowance for doubtful accounts .... _____________ !---------+---------+---------Inventories for sale or use , •• , 111 8 - Prepaid expenses and deferred charges, ••• ::;~ .lJJ. l-------'6"-'-'--'6"'-6"'-'-7..!i.f-------"'6.L...:.7..::.3::.:5::....:..;, ~-----6~,L..!. .7..::3!.::5!...:. s: 9

~ 10 a b

c 11

Investments - US and state government obligations (attach schedule)*-:'" t---.=c6-=0.,_, •.....;4=..4.:....:.4.L..: .0:....:6:..:5=-,. ---=5:....:0'-'.'-4..:...:.7-=0'-'.'-0::....:.1.:::5c..:·+--~4.:::9:...i·~6::.6!::..!.7.L • ..::.3~4?...:!:...!1. Investments - corporate stock (attach schedule). p'fl'fJ: ,1;2, t----'1=2=-3=---=·2-'4'""'7_. • .....;8=-0"-'2~-1---1=3..::1'"" • .....;8:....:3=-9=--<....:::"1:..:0:....:6=-.=+----'2=3-=2 .... ..::.8:,.;1:.;6:::.L.~8.:::5:...:4:..:. Investments - corporate bonds (attach schedule) J3P:fl: .1.3. 5 • 0 4 0. 12 9 . 5 . 0 4 0 - 12 9 • 4 . 912 O 8 3 . Investments - land, bu1ld1ngs, .... and equipment basis _________ - ________ _ Less accumulated depreciation .... (attach schedule) - - - - - - - - - - - - - - - - - - - 1---------+---------+---------

12 lnvestments - mortgage loans • • • • • •

13 14

Investments - other (attach schedule), , , • , • l3'J'l'11: .1;4. 1----6.:.,<....;::·0-=3'-'9'-'.'-7.:...4..:...::6..:.·t-----"5'-'.'""'5=-4-=-=2..._-.:9:....:0:...4.:...:... +---.:!:1..::0u·c..:8::.:5~9.L.:::.3:..!:0!.:1!:a..:. Land,bulld1ngs,and .... eomuT .2.Q.824 507 eqU1pment basJS __ ..;J..LL'.I. _ _ __ c. ___ :..

fa~f!ci~::icr~a~id deprec1at1on .... - - - - - - - - - - - - I~ I(. I I 1:.. 1------7.:....::C5..._ . .:1~8=-8=-,· 1-------=3:....:6::..<....:.."7..::3:..:3:..;.:+------.=3.!:6:..i·~7!..;3=.:::!....:3 • 15 Other assets (describe .... ____________________ ) t---------+--------~,----------16 Total assets (to be completed by all filers - see page 17 of

the rnstructrons. Also, see page 1, item I) •

17 Accounts payable and accrued expenses •

18 Grants payable , • ,

D~~~re~n~ ••

Loans from officers, directors, trustees, and other disqualified persons

Mortgages and other notes payable (attach schedule) •

197. 646 951. 200. 362 831.

3.106 500. 3.326 500.

Other liabilities (describe .... ___________________ ) 1-----------1-----------1

23 Total liabilities(add lines 17 through 22). 3.106 500. 3-326-500. Organizations that follow SFAS 117, check here • liJ and complete lines 24 through 26 and lines 30 and 31.

Ill

~ 24 Unrestricted , • • 194.540.451. 197. 036 331.

j 26

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

0 27

.!!! 28 CII

::l 29 ~ 30

Temporarily restricted , •

Permanently restricted • • •

Organizations that do not follow SFAS 117, check here and complete lines 27 through 31. ..,. 0 Capital stock, trust principal, or current funds ,

Pa1d-1n 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 18 of the CII z instructions) , 194.540.451. 197. 036 331.

31 Total llabilities and net assets/fund balances(see page 18 of

the mstructrons). • • 197. 646. 951. 200. 362 831. •:. ,1.;•um Analysis of Chanaes in Net Assets or Fund Balances 1 Total net assets or fund balances at beginning of year - Part II, column (a), hne 30 (must agree with

end-of-year figure reported on prior year's return). 2 Enter amount from Part I, line 27a

3 Other increases not included in line 2 (itemize)•-------------------------------------4 Add lines 1, 2, and 3 5 Decreases not included in hne 2 (rtemize)..,. _______________________________________ _

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

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1 2 3 4 5 6

305.786.196.

194. 540. 451. 2,495,880.

197,036.331.

197, 036. 331. Form 990-PF (2006)

5

1

Form 990-PF 1200 ii 25-1113452 p.,,.,e 3 •!s.:r.•n- Capital Gains and losses for Tax on Investment Income

(a) List and describe the kmd(s) of property sold (e.g , real estate, (D) How (c) Date ~d) Date sold acquired acquired

2-slory bnck warehouse; or common stock, 200 shs. MLC Co) P-f'un:hase (mo., day, yr.) mo., day, yr) D-Donabon 1a STATEMENT 25

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 showma gain m column (h) and owned by the foundation on 12/31/69 (I) Gains (Col. (h) gain minus

(i) F.M V. as of 12/31/69 U) Adjusted basis (k) Excess of col (i) col. (k), but not less than -0-)or as of 12/31/69 over col. (J), if any Losses (from col. (h))

a b

c d e

2 Capital gain net income or (net capital loss) . { If gain, also enter m Part I, line 7 } .... If (loss), enter -0- in Part I, line 7 2 11. 212. 544.

3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6): If gain, also enter in Part I, line 8, column (c) (see pages 13 and 18 of the mstrucbons). } If (loss), enter -0- m Part I, line 8 ..•....•.•.••••.••.........•... .. 3 ·~1 .. ,. 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 foundation liable for the section 4942 tax on the distributable amount of any year in the base period? • • . . D Yes~ No If "Yes," the foundation 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 19 of the instructions before making any entries (a) (b) (c) (d)

Base period years Calendar year D1stnbut1on ratio (or tax year beginning in) AdJusted qualifying d1stnbutions Net value of nonchantable-use assets (col (b) divided by col (c))

2005 17 313.089. 286,448,540. 0.06044048610 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

2 Total of line 1, column (d) ................................... 2 0.29193435493 3 Average distribution ratio for the 5-year base period - divide the total on line 2 by 5, or by

the number of years the foundation has been m existence if less than 5 years • ...... 3 0.05838687099

4 Enter the net value of noncharitable-use assets for 2006 from Part X, line 5 4 288 509.138 • . . . . . . . 5 Multiply line 4 by line 3 5 16 845.146 • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Enter 1 % of net investment income ( 1 % of Part I, line 27b) . . . . . . . . 6 203.802 • . . . . . . . . . .

Add lines 5 and 6 . . . . 7 17.048 948 • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Enter quahfymg distributions from Part XII, line 4 .•• . . . . . . . . . . . . 8 17.408.772 • . . 8 If line 8 1s equal to or greater than line 7, check the box m Part VI, line 1b, and complete that part using a 1% tax rate See the Part VI instructions on page 19

~~430 3 ooo Form 990-PF (2006)

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Form990-PF(2006l 25-1113452 Pa!:Je4 •~T~illfjl Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948 - see page 19 of the Instructions)

Date of ruling letter _________ (attach copy of ruling letter if necessary • see instructions) ••••

1 a Exempt operatmg foundations described 111 section 4940(d)(2), check here ~ LJ and enter "NIA" on line 1 ••• }

b Domestic foundations that meet the section 4940(e) requirements in Part V, check 1 2 o 3. 8 02 •

here ~ Ii] and enter 1% of Part J, line 27b •••••••••••••••••••••••••••••• c All other domestic foundations enter 2% of line 27b Exempt foreign organizations enter 4% of Part I, hne 12, col (b)

2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-).

3 Add lines 1 and 2

4

5

6

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 line 3 If zero or less, enter -0- •

Credits/Payments.

a 2006 estimated tax payments and 2005 overpayment credited to 2006.

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

207.000.

NONE NONE

2

3 203 802.

4 NONE 5 203.802.

7 Total credits and payments. Add lines 6a through 6d • • • • • • • • • • • • • • • • • • • • ••

8 Enter any penalty for underpayment of estimated tax Check here Ii] 1f Form 2220 is attached • • t----'1--11-------'2=0~1 ..... -=o-=oc...:o:...:.

8

9 Tax due. If the total of hnes 5 and 8 is more than line 7, enter amount owed • • • • • • • • • • ~l-9"'-+-----------

1 O Overpayment. If hne 7 is more than the total of Imes 5 and 8, enter theamount overpaid • • • • ~t---1 __ 0-t--------=3'-'''-"'1.;;9...:8:...:. 11 Enter the amount of hne 10 to be: Credited to 2007 estimated tax~ 3. 198. Refunded ~ 11

•~ .. •m"'•• Statements Reoardino Activities Yes No 1 a During the tax year, did the foundation attempt to influence any national, state, or local legislation or did it

participate or intervene in any polrt1cal campaign? • • • • • • • • • • • • • • • • • • ••••••••••••••

b Did 11 spend more than $100 during the year (either directly or indirectly) for poht1cal purposes (see page 20

• • • • • • _1_a ____ --'x=-

of the instructions for definrt1on)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • i--,1_b-t----1-=x'"" If the answer is "Yes" to 1a or 1b, attach a detailed descripflon of the act1v1ties and copies of any materials

published or d1stnbuted by the foundation m connection with the activities.

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

d Enter the amount (1f any) of tax on pohhcal expenditures (section 4955) imposed during the year:

1c X . • • . • . . • • • . • • . t------+---1---=-

(1) On the foundation ~ $ (2) On foundation managers ~ $ -----------e Enter the reimbursement (if any) paid by the organization during the year for poht1cal expenditure tax imposed on

foundation managers ~ $ ___________ _

2 Has the foundation engaged in any activities that have not previously been reported to the IRS? ••••••••••

If "Yes,• attach a detailed descrtption of the activities

3 Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles of

incorporation, or bylaws, or other similar instruments?/f "Yes,• attach a conformed copy of the changes

4a Did the foundation have unrelated business gross income of $1,000 or more during the year?.

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

5 Was there a hqu1dation, termination, dissolution, or substantial contraction during the year?. •

If "Yes,• attach the statement required by General Instruction 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 directions that

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

7 Did the foundation have at least $5,000 in assets at any time during the year'llf"Yes, • complete Part II, col. (c), and Part XV

Ba Enter the states to which the foundation reports or with which 11 1s registered (see page 20 of the

instructions) ~ PA.1. ____________________ ------- __ --------------------------------- _ b If the answer is ''Yes" to llne 7. has the foundation furnished a copy of Form 990-PF to the Attorney General

2

3

4a x

4b x

5

6 x 7 x

(or designate) of each state as required byGeneralfnstruct,on G? lf"No," attach explanation • • . • • . • • • • • • • • . . . • Sb X

9 Is the foundation claiming status as a private operating foundation within the meaning of section 49420)(3)

or 4942(1)(5) for calendar year 2006 or the taxable year beginning in 2006 (see instructions for Part XIV on

x

x

x

page 28)? If "Yes,• complete Part XIV • • . . • • • • • • • • • • • • • • . • • • . • • . • • . • • . . • • • • • • • • • • • ~9'--t----4--X=-

1 O Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule listing their

names and addresses • . • • . • . . . • . . . • . . • • . . . . . . . • . • . . . . . • • • . . . . • • • • . . • • . . . . 1 o x Form 990-PF (2006)

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11 a At•any time during the year, did the foundation, directly or indirectly, own a controlled entity wrth1n the

meaning of section 512(b)(13)7 If "Yes," attach schedule (see instructions), , , , , ••• , • , , ••

b If "Yes," did the foundation have a binding written contract in effect on August 17, 2006, covering the interest,

rents, royalties, and annuities described in the attachment for hne 11a? ••••• , , , , • , ••• , ••• , ,

11a x

11b x 12 Did the foundation acquire a direct or indirect interest in any applicable insurance contract?. • • • • • • • • • 2 X

13 Did the foundation comply with the pubhc inspection requirements for its annual returns and exemption application? 13 X

Website address..,.. _____ NLA--------------------------------------------------------------------14 The books are in care of .... _SARAH _SCAIFE _FOUNDATION _INC. ______ Telephone no . ..,.. ____ 412-392-2900 ______ _

Located at .... 301 GRANT STREETJ_ SUITE 3900.J_ PITTSBURGHL_PA _________ ZIP+ 4 .... 15219 ---------T"i' 15 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-F 1n heu of Form 1041 - Check here , , , • , , , , •• NI A . • . . • • ..,.. L..J

and enter the amount of tax-exempt interest received or accrues during the year , , , , , , , , , , , , , , • • • • ..,.. I 15 I •~1aaml!!:• 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 foundation (either directly or 1nd1rectty):

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

(2) Borrow money from, lend money to, or otherwise ex1end credrt to (or accept it from)

0Yes

a disqualified person? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • , • •

(3) Furnish goods, services, or facilrt1es to (or accept them from) a disqualified person?, , •••

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person?£TMTS , §Yes

Yes

Yes

(5) Transfer any income or assets to a disqualified person (or make any of either available 1 5- 1 9D for the benefit or use of a disqualified person)?. • • • • • • • • • • • • • • • , , • . • . • . Yes

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

if the foundation agreed to make a grant to or to employ the official for a period D after termination of government service, if terminating wrthin 90 days.) • • • • • • • • • • • • • Yes

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

6No

No

No

[xi No

[xi No

section 53 4941 (d)-3 or in a current notice regarding disaster assistance (see page 22 of the instructions)?. •• •• , .:.. , o· , · Organizations relying on a current notice regarding disaster assistance check here , , , , , , , , , • ...-

c Did the foundation 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 in 2006? • • , , , , , • , • • • • ,

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

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

a At the end of tax year 2006, did the foundation have any undistributed income (hnes 6d D and Se, Part XIII) for tax year(s) beginning before 2006? • • • • • • • • • • • • • • • • • • • • • • Yes If "Yes," list the years ..,.. __________ , _________ , _________ , ________ _

b Are there any years hsted in 2a for which the foundation 1snot 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 listed, answer "No" and attach statement - see page 22 of the instructions.) • • • • • • • • • •

c If the provisions of section 4942(a)(2) are being applied toany of the years listed in 2a, list the years here.

~ ---------- '--------- '--------- '---------

[xi No

3a Did the foundation hold more than a 2% direct or indirect interest 1n any business

enterprise at any time during the year?, , , , , , • • • • • • • • , , • , , , , , , , , , • , , • • D Yes [xi No

b If "Yes," did it have excess business holdings in 2006 as a result of(1) any purchase by the foundation

or d1squalif1ed persons after May 26, 1969; (2) the lapse of the 5-year period (or longer period approved

by the Comm1ss1oner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest; o(3)

the lapse of the 10-, 15-, or 20-year first phase holding period,YUse Schedule C, Form 4720, to determine

1f the foundation had excess business holdings in 2006.)

Yes No

1b x

1c x

2b NIA

3b

4a Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes? • • • • • t-4..;..a;;;.....+--+~X.__

b Did the foundation make any investment in 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 1n 2006?, , , , , •• , , , , , 4b x

Form 990-PF (2006)

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Form 990-PF (2006) 25-1113452 Page6

•~h· ,,u!!:• • Statements Regarding Activities for Which Fonn 4720 Mav Be Required Continued

5 a During the year did the foundation pay or incur any amount to: (1) Carry on propaganda, or otherwise attempt to influence leg1slallon (section 4945(e))?.

(2) Influence the outcome of any specific public election (see section 4955), or to carry

on, directly or indirectly, any voter registration dnve?. • • • • • • • • • • • • • • • •

(3) Provide a grant to an Individual for travel, study, or other similar purposes? ••••••

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

in section 509(a)(1 ), (2), or (3), or section 4940(d)(2)? (see instructions). • • •••••

(5) Provide for any purpose other than rehgious, charitable, scientific, literary, or

educational purposes. or for the prevention of cruelty to chlldren or animals?

Oves

0Yes Oves

0Yes

0Yes

b If any answer 1s ''Yes" to 5a(1)-(5), d1dany of the transactions fail to quahfy under the exceptions described in

Ci] No

[i]No

ULJ No

[i]No

Regulations section 53 4945 or in a current notice regarding disaster assistance (see page 23 of the instructions)? •

0. · · · · ·

Organizations relying on a current notice regarding disaster assistance check here • • • • • • • • • • • • • • ~ c If the answer 1s ''Yes" to question 5a(4), does the foundation claim exemption from the D

tax because 11 maintained expenditure respons1bilrty for the grant? • • • • • • • •••••••• N/ P.. Yes D No

If "Yes,• attach the statement required by Regulations section 53.494>5(d)

Sa Did the foundation, during the year, receive any funds, directly or indirectly, to pay

premiums on a personal benefit contract? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D Yes Ci] No b Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ••••••••••

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

7 a Al any lime dunng the tax year, was the foundation a party to a prohibited tax shelter transaction? D Yes Ci] No

Sb

Sb

b If yes, did the foundation receive any proceeds or have any net income attributable to the transaclio11?. • • • • • • • • • • • • 7 b

•~··•m11 Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors

1 List all officers, directors, trustees, foundation managers and their compensation (see page 23 of the Instructions).

NIIA

x

x

(a) Name and address (b) Title, and average

hours per week (f:I c.;ompensat1on (If not paid, enter

(d) ContrlbutJons to (e) Expense account, employee benefit plans

devoted to oos1t1on ,0.) and deferred comDensabon other allowances

-------------- ----------------------SEE STATEMENT 15-17. 544.360. 79 500. NON

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

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

--------------------------------------2 Compensation of five highest-paid employees (other than those Included on line 1 - see page 24 of the Instructions).

If none, enter "NONE."

(b) Tiiie and average (d) Contributions 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 pos1t1on compensation

-------------------------------------SEE STATEMENT 18 163.433. 36.888. NON

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

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

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

-------------------------------------Total number of other employees paid over $50,000 -~INONE

E

E

Form 990-PF (2006)

6E1460 4 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 9

JSA

Form'990-PF (2006) 25-11134 52 UtfliWli IQformation About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,

and Contractors Continued

Page7

3 Five highest-paid Independent contractors for professional services (see page 24 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

SEE STATEMENT 19 554.719 .

Total number of others rece1vma over $50,000 for professional services . . . . . . . . . . . . . . . . . . ~I NONE

j:tflifJJj Summary of Direct Charitable Activities

List the foundation's four largest direct charitable act1vrt1es dunng the tax year Include relevant stat1st1cal information such as the number or organizations and other benefic1anes served, conferences convened, research papers produced, etc

1_NOT_APPLICABLE ___________________________________________________________ _

2

3

4

•:r.1oil• -=• Summary of Program-Related Investments (see page 24 of the instructions) Describe the two largest program-related investments made up b'{ the foundation dunng the tax year on lines 1 and 2

1_NOT_APPLICABLE ___________________________________________________________ _

2

All other program-related investments See page 25 of the 1nstruct1ons

3_NONE----------------------------------------------------------------------

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

Expenses

Amount

Form 990-PF (2006)

6E1465 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 10

Form 990-PF {2006) 25-1113452

i@f!I Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see page 25 of the instructions.)

Page8

1 Fair market value of assets not used (or held for use) directly in carrying out chantable, etc., purposes·

a Average monthly fair market value of securities 1a 292, 877, 726 • . . . . . . . . . . . . . . . . . b Average of monthly cash balances. . . . . . • . . • . . . . ....•..• 1b 24.952 . . . . . c Fair market value of all other assets (see page 25 of the instructions) •...• 1c NONE .. d Total (add lines 1a, b, and c) ......•...••..•..•.......... 1d 292 902.678 . . . e Reduction claimed for blockage or other factors reported on lines 1 a and

1 c ( attach detailed explanation) • . . • . • . . . . . . . . . . . . . . . I 1 e I 2 Acquisition indebtedness applicable to hne 1 assets 2 NONE . . ................... 3 Subtract line 2 from hne 1 d 3 292.902.678 • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Cash deemed held for charitable activities. Enter 11/2 % of hne 3 (for greater amount, see page 26

of the instructions) ..•••.•.......... , ....•...••.••..•..•...••..•. 4 4,393 540. 5 Net value of noncharltable-use assets. Subtract line 4 from line 3. Enter here and on Part V, hne 4 . . 5 288.509.138 . 6 Minimum Investment return. Enter 5% of hne 5 ..........•.....•.....•.•.•••. 6 14,425,457. ·!l:T~·"I· Distributable Amount (see page 26 of the instructions) (Section 4942(J)(3) and (J)(5) private operating

foundations and certain foreign organizations check here .,. and do not complete this part.)

1 Minimum investment return from Part X, hne 6 ............ . . . . . . • . . . • . . • • . 1 14 425 457. 1---1------=-a:..o..~aa.&-....:..::'-'--''-

2a Tax on investment income for 2006 from Part VI, line 5 ..•....• b Income tax for 2006. (This does not include the tax from Part VI.), .• c Add lines 2a and 2b

2a 2b

203 802.

2c 203 802. 3 4 5

Distributable amou~t before adjustments. Subtract line 2c from hne 1 . . . . . . . . . . • . . • • . . • t--3;;..._t------=1~4......,2~2=1L.::6:..::5:..::5:...,,'

Recoveries of amounts treated as qualifying distributions . . . . . . . . . . . . . . • . • • • • • . • . . 1--4-1------------

Add lines 3 and 4 5 14 221 655. 6 Deduction from distributable amount (see page 26 of the instructions) •.•••.....• 6 7 Distributable amount as adjusted Subtract line 6 from line 5 Enter here and on Part XIII,

line 1 7 14 221 655.

1:tflf3ii Qualifying Distributions (see page 26 of the instructions)

1 Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes a Expenses, contributions, gifts, etc. - total from Part I, column (d), line 26, •......... 1a 17.408 772. .. b Program-related investments - total from Part IX-B. . . . . . . . • . . . . • . • • . . . • . . 1b NONE ..

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

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

a Suitability test (prior IRS approval required) . . . • . . . . • . . .. 3a NONE . . . . . . . . . . . . . . . . . .. b Cash distribution test (attach the required schedule) 3b NONE I I • I I I I I ......... . . . . . .

4 Qualifying distributions.Add Imes 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4 • , . . . . 4 17,408 772 . 5 Foundations 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 27 of the instructions) •. 5 203.802. . . . ... I I I I

Adjusted quallfylng distributions.Subtract line 5 from hne 4 6 17.204 970 . . . . . . . . . . . . . . .... 6 Note: The amount on /me 6 will be used in Part V, column (b), m subsequent years when calculating whether the foundation

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

Form 990-PF (2006)

JSA 6E1470 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 11

Form 990-PF (2006) 25-1113452 Page9

1:Zftjf1jj1 Undistributed Income (see page 27 of the instructions)

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

1 Distributable amount for 2006 from Part XI, Corpus Years prior to 2005 2005 2006

line 7 . . . . . . . . . . . . . . . . . . . . 14.221.655 . 2 Und1strrbuted income, 1f any, as of the end of 2005

a Enter amount for 2005 only ......... b Total for pnor years 2004 . NONE

3 Excess distributions carryover, if any, to 2006

a From 2001 3.642.972. b From 2002 2.616.074. c From 2003 2 505.328. d From 2004 1- 779. 880. e From 2005 3.281 252. f Total of lines 3a through e • . . ........ 13.825.506.

4 Qualifying distributions for 2006 from Part

XII, line 4: 1J11,, $ 17,408,772. a Applied to 2005, but not more than line 2a • • •

b Apphed to undistributed income of prior years (Election required - see page 27 of the 1nstruct1ons) ..

c Treated as d1strrbutions out of corpus (Election required - see page 27 of the instructions)

d Applied to 2006 ,distributable amount • e • I e

14.221. 655. e Remaining amount distributed out of corpus .. 3 187.117.

5 Excess distributions carryover applied to 2006 • (If an amount appears ,n column (d), the same amount must be shown in column (a).)

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

a Corpus Add lines 3f, 4c, and 4e Subtract line 5 17.012.623.

b Prror years' undistributed income. Subtract hne 4b from hne 2b NONE

• I I I I I I I I I I I I I

c Enter the amount of prror years' und1strrbuted income for which a notice of deficiency has been issued, or on which the section 4942(a) tax has been previously assessed ••••••••

d Subtract line Sc from hne Sb. Taxable amount - see page 27 of the instructions • • •• NONE

e Und1stnbuted income for 2005 Subtract line 4a from line 2a Taxable amount - see page 27 of the instructions

I I I I I I I I I I I I I I I

f Undistributed income for 2006. Subtract lrnes 4d and 5 from line 1. This amount must be d1strrbuted 1n 2007

I I I I I I I I I I I I I

7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(E) or 4942(g)(3) (see page 28 of the instructions) • • • • • • • • • • • • •

8 Excess distributions carryover from 2001 not applied on hne 5 or line 7 (see page 28 of

3.642.972. the instructions) • • • • • • • • • • • • • • • •

9 Excess distributions carryover to 2007. Subtract lines 7 and 8 from line Sa

I I I I I I I 13 369 651.

0 Analysis of line 9: a Excess from 2002 2.616.074. b Excess from 2003 2.505.328. c Excess from 2004 1. 779. 880. d Excess from 2005 3.281 252. e Excess from 2006 3-187 117.

Form 990-PF (2006)

JSA

6EU80 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 12

Form 990-PF (2006) 25-1113452 •!...; ·- ·-Private Operating Foundations (see page 28 of the instructions and Part VII-A, question 9) 1a If tl1e foundation has received a ruhng or determination letter that it IS a private operating

foundation, and the ruling 1s effective for 2006, enter the date of the ruling ..... b Check box to indicate whether the foundation is a private operating foundati~~ d~~c~b~d 1~ ;e~ll~n· I 4942 ())(3) or I

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

adJusted net income from (a) 2006 (b)2005 (c) 2004 (d)2003 Part I or the minimum investment return from Part X for each year hsted • • •

b 85% of hne 2a ...... c Qualifying distributions from Part

XII, line 4 for each year listed d Amounts Included in line 2c not

used directly for active conduct ol exempt actlvllles. • • • •

e Quallf'yfng dlstrlbu11ons made directly tor active conduct or exempt activities Subtract line 2d from hne 2c • • • • •

3 Complete 3a, b, or c !or the alternative test relied upon

a "Assets" alternative test· enter (1) Value or au assets ... 12) Value ol assets qualifying

under section 49420)(3)(8)(1). , • • •

b "Endowment" alterna!JYe test-enter 2/3 ol minimum Invest-

men! return shown in Part X,

line 6 loreach year Pstud .. c "Support'" altematlva lest· enter

(1) Total support other than gross Investment income (Interest dividends, rents, payments on securities loans (section 512(aK5)). or royalUes). • • • • •

(2) Support from general publ,e and 5 or more exempt organizabons as provided in sectx>n 4942 UX3XBXIIQ ••••••

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

( 4) Gross lnvestmenl income •

I

NOT

E APPLICABL

49420)(5)

le) Total

1:..:, •• _ ... ,_ Supple'!'entary_ Information (Complete this pa~ only if Jhe organization had $5,000 or more in assets at any time during the year - see page 28 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 if 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 if the foundation only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds If the foundation makes gifts, grants, etc (see page 28 of the instructions) to individuals or organizations under other cond1t1ons, complete items 2a, b, c, and d.

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

SEE STATEMENT 21-~..:1..~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~b The form in which applications should be submitted and information and materials they should include:

SEE STATEMENT 21 24 c Any subm1ss1on deadlines:

SEE STATEMENT 21 - 2 4 d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other

factors.

SEE STATEMENT 21 24 JSA 6E1490 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3

Form 990-PF (2006)

13

Form 990-PF (2006} 2 5-1113 4 5 2 1@f3!1 Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment Recipient II recipient Is an Individual, Foundation

Purpose of irant or show any relabonshlp ID status of Amount Name and address (home or business) any loundabon manager rec1p1ent contnbu ,on

or substantial contributor

a Paid dun'ng the year

SEE STATEMENT 21 _ 2 4 15,603,000.

Total . . . ..,.. 3a 15.603.000 . b Approved for future payment

SEE STATEMENT 21 - 2 4 3,326,500.

Total . . . . .... 3b 3.326.500 .

Form 990-PF (2006)

JSA 6E1491 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 14

Form 990-PF (200~) 25-1113452 •~1-•"&'fJl'!'•W Analysis of Income-Producing Activities Enter gross amounts unless otherwise 1nd1cated Unrelated business income Excluded bl section 512, 513, or 514 (e)

Related or exempt (a) (b) (c) (d) function income

1 Program service revenue Business Code Amount Exclusoon code Amount fi;'ee page 29 of

t e instructions.) a

b

c

d

e

f

g Fees and contracts from government agencies

2 Membership dues and assessments • • • • •

3 Interest on savings and temporary cash investments

4 Dividends and interest from securities ... 14 8 687.756. 5 Net rental income or (loss) from real estate:

a Debt-financed property • • • • • • • •

b Not 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 11.212.544. 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 -43.354. 14 1.011.229. c

d

e

2 Subtotal. Add columns (b), (d), and (e) • . . . -43 354. 20. 911 529 . 13 Total. Add line 12, columns (b), (d), and (e), . , .• , .•. , , •• , ..•.• , , •• 13 20,868,175 . (See worksheet in line 13 instructions on page 29 to venfy calculations )

1~11•.UJI =• Relationship of Activities to the Accomplishment of Exempt Purposes

Line No. Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to

~ the accomphshment of the foundation's exempt purposes (other than by prov1d1ng funds for such purposes). (See page 29 of the instructions )

NOT APPLICABLE

JSA Form 990-PF (2006)

6E1492 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 15

JSA

25-1113452 Information Regarding Transfers To and Transactions and Relationships With Noncharitable . E O .. xempt rgamzat,ons

1· Did the organization directly or indirectly engage in any of the following with any other orgamzat1on described in section Yes No 501 (c) of the Code (other than section 501 (c)(3) organizations) or 1n section 527, relating to political organizations?

a Transfers from the reporting foundation to a noncharrtable exempt organization of·

11> cash • 1a(1) x (2) Other assets 1a(2l x

b Other transactions.

(1) Sales of assets to a noncharitable exempt organization. 1b(1) x (2) Purchases of assets from a noncharitable exempt organization • 1b(2) x (3) Rental of facilities, equipment, or other assets 1b(3) x (4) Reimbursement arrangements. 1b(4) x (5) Loans or loan guarantees • 1b(5l x (6) Performance of services or membership or fundralsmg solicitations • 1b(6) x

c Sharing of facilities, equipment, mailing lists, other assets, or paid employees. 1c x d If the answer to any of the above is ''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 foundation. If the foundation 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.

(a) Line no (b) Amount involved (c) Name of nonchantable exempt orgarnzat1on (d) Descnpt1on of transfers, transactions, and shanng arrangements

N/A NIA

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

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

b If "Yes" com lete the followm schedule. (a) Name of organization (b) Type of organization (c) Descnpllon of relallonshlp

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 belief, 11 1s ue, correct, an omplete Declarat10 of preparer (other than taxpayer or fiduciary) is b sed on all information of which preparer has any knowledge

11... l). b 6 1.../ Z.0°1-11... CX', Vet.£ Pt<EL e! ,,. Signature of officer or trustee Date ,,. Title QI :::c

FORT WASHINGTON PA 19034 Phone no 215-654-1600 Form 990-PF (2006)

6E1493 3 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 16

~llli.A.tt SCAIFE FOUNDATION INCORPORATED 25-1113452

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

DESCRIPTION

INTEREST INCOME DIVIDEND INCOME

TOTAL

77270J 827G 06/06/2007 12:21:06 V06-6.3

REVENUE AND

EXPENSES PER BOOKS

5,579,851. 3,107,905.

8,687,756.

NET INVESTMENT

INCOME

5,579,851. 3,107,905.

8,687,756. ==============

18 STATEMENT 1

;:,J-lKtUt ::,L.1un:.: t~OUNDATION INCORPORATED

FORM 990PF, PART I - OTHER INCOME =================================

DESCRIPTION

VENTURE INCOME

TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

REVENUE AND

EXPENSES PER BOOKS

967,875.

967,875.

NET INVESTMENT

INCOME

967,875.

967,875.

ADJUSTED NET

INCOME

NONE

NONE ====-=--=-=--- -------------- --------------

19 STATEMENT 2

SARAH SCAIFE FOUNDATION INCORPORATED

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

DESCRIPTION

LEGAL FEES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

2,309.

2,309.

25-1113452

NET INVESTMENT

INCOME

NONE

NONE

ADJUSTED NET

INCOME

NONE

NONE

CHARITABLE PURPOSES

2,309.

2,309. ============== ============== ===-====-----~ --------------

77270J 827G 06/06/2007 12:21:06 V06-6.3 20 STATEMENT 3

:::>1-\KlUi ~CAlt't; FOUNDATION INCORPORATED

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

DESCRIPTION

AUDIT, COMPLIANCE, AND TAX SRV

TOTALS

REVENUE AND

EXPENSES PER BOOKS

94,858.

94,858.

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

NET INVESTMENT

INCOME

47,429.

47,429. ==============

ADJUSTED NET

INCOME

NONE

NONE ==============

21

CHARITABLE PURPOSES

47,429.

47,429.

STATEMENT 4


FORM 990PF, PART I - OTHER PROFESSIONAL FEES -===-=======================================

DESCRIPTION

FISCAL AGENT FEES CONSULTING

TOTALS

REVENUE AND

EXPENSES PER BOOKS

263,217. 256,000.

519,217. ==============

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

NET INVESTMENT

INCOME

263,217. NONE

263,217.

ADJUSTED NET

INCOME

22

NONE NONE

NONE

CHARITABLE PURPOSES

NONE 256,000.

256,000.

STATEMENT 5


FORM 990PF, PART I - INTEREST EXPENSE =====================================

DESCRIPTION

INTEREST EXPENSE

TOTALS

REVENUE AND

EXPENSES PER BOOKS

786.

786.

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

NET INVESTMENT

INCOME

786.

786. ==============

ADJUSTED NET

INCOME

NONE

NONE

23

CHARITABLE PURPOSES

NONE

NONE

STATEMENT 6


FORM 990PF, PART I - TAXES ==========================

DESCRIPTION

FEDERAL EXCISE TAX PAYROLL TAX

TOTALS

REVENUE AND

EXPENSES PER BOOKS

217,082. 50,291.

267,373.

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

NET INVESTMENT

INCOME

NONE 5,170.

5,170.

ADJUSTED NET

INCOME

NONE NONE

NONE ==============

24

CHARITABLE PURPOSES

NONE 45,121.

45,121. ==============

STATEMENT 7

~llli.A.H SCAIFE FOUNDATION INCORPORATED

FORM 990PF, PART I - OTHER EXPENSES --------------=====================

DESCRIPTION

COMPUTER MAINTENANCE

INSURANCE

DUES & SUBSCRIPTIONS

OFFICE EXPENSES

OFFICE TEMP

TELEPHONE

SECURITY

TOTALS

REVENUE AND

EXPENSES PER BOOKS

1,700.

15,161.

6,517.

23,118.

16,720.

5,198.

48,320.

116,734. --------------

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

NET INVESTMENT

INCOME

NONE

1,559.

NONE

2,377.

1,719.

534.

NONE

6,189.

ADJUSTED NET

INCOME

NONE

NONE

NONE

NONE

NONE

NONE

NONE

NONE -------------- --------------

25

CHARITABLE PURPOSES

1,700.

13,602.

6,517.

20, 741.

15,001.

4,664.

48,320.

110,545. --------------

STATEMENT 8


FORM 990PF, PART I - CONTRIBUTIONS, GIFTS, GRANTS PAID

RECIPIENT NAME AND ADDRESS

GRANTS PAID

SEE STATEMENT 23

GRANTS ACCRUED

SEE STATEMENT 23

RELATIONSHIP TO SUBSTANTIAL CONTRIBUTOR AND

FOUNDATION STATUS OF RECIPIENT

77270J B27G 06/06/2007 12:21:06 V06-6.3

25-1113452

PURPOSE OF GRANT OR CONTRIBUTION AMOUNT

15,603,000.

TOTAL CONTRIBUTIONS PAID 15,603,000.

3,326,500.

TOTAL APPROVED CONTRIBUTIONS ACCRUED 3,326,500.

26 STATEMENT 9

.::>tt.IVUl .:>\....1-U t .I!. t UU.NUAT l UN !NCORPORATED 25-1113452

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

DESCRIPTION

PREPAID INSURANCE

TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

ENDING BOOK VALUE

6,735.

6,735.

27

ENDING FMV

6,735.

6,735.

STATEMENT 10


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

DESCRIPTION

GOVERNMENT SECURITIES (SEE STATEMENT 14A)

US OBLIGATIONS TOTAL

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

ENDING BOOK VALUE

50,470,075.

50,470,075. ---------------

28

ENDING EMV

49,667,341.

49,667,341. ---------------

STATEMENT 11

~1-UU-U1 ~CAl t't: FOUNDATION INCORPORATED

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

DESCRIPTION

COMMON STOCK INVESTMENTS (SEE STATEMENT 14A)

TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

ENDING BOOK VALUE

131,839,106.

131,839,106. ---============

29

ENDING FMV

232,876,854.

232,876,854.

STATEMENT 12


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

DESCRIPTION

CORPORATE BOND INVESTMENTS (SEE STATEMENT 14A)

TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

ENDING BOOK VALUE

5,040,129.

5,040,129.

30

ENDING FMV

4,912,083.

4,912,083. ------=========

STATEMENT 13

::i.lIBAH !::iCAlr'E FOUNDATION INCORPORATED

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

DESCRIPTION

VENTURE FUNDS (SEE STMT. 14A) MUTUAL FUNDS (SEE STMT. 14A)

TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

25-1113452

ENDING BOOK VALUE

1,646,732. 3,896,172.

5,542,904. ---------------

31

ENDING FMV

2,119,941. 8,739,360.

10,859,301.

STATEMENT 14

Government Securities

U.S. Treasury and agencies securities Federal Farm Credit Bank Federal Home Loan Banks Federal Home Loan Mortgage Corp. Tennessee Valley Authority Treasury Inflation Securities

U.S. Treasury Notes

TOTAL GOVERNMENT SECURITIES

Common Stock

Common Stocks: AT&T, Inc. Alberto Culver Co. Altria Group, Inc. American Express Co. American International Group, Inc. AMGEN Inc. Automatic Data Processing, Inc. Becton Dickinson & Co. Berkshire Hathaway, Inc. Bristol-Myers Squibb Co. Cardinal Health, Inc. Carnival Corporation Chevron Texaco Corp. Cintas Corp. Diebold, Inc. Ecolab Inc. Exxon Mobil Corp. Fortune Brands, Inc. FPL Group, Inc. Gannett Co., Inc. General Dynamics Corp. General Electric Co. Graco inc. Illinois Tool Works, Inc. Intel Corp. International Business Machines Corp. Johnson & Johnson Johnson Controls, Inc. Kellogg Co. Liz Claiborne Inc. Lockheed Martin Corp. Marshall & Ilsley Corp. McGraw Hill Cos., Inc. Merrill Lynch & Co., Inc.

Sarah Scaife Foundation Incorporated Schedule of Investments

December 31, 2006

Shares/or Par Value

2,000,000 1,700,000 5,000,000 3,000,000 6,500,000

Shares/or Par Value

100,000 41,000

307,000 38,200

166, 111 56,500 83,600 35,000

900 85,000 36,000 40,000 56,340 62,200 82,500 40,000

250,000 35,000 80,000 31,400 44,000

260,000 68,000 11,200

148,000 157,000 86,000 19,400 67,000 35,000 25,000 69,000 41,250 72,859

Cost

2,007,420 1,703,944 5,382,192 3,088,520 6,871,349

19,053,425

31,416,650

50,470,075

3,292,750 1,401,943 9,966,821 1,795,088

945,868 793,156

4,018,343 2,093,588 2,028,491 1,945,259 2,408,562 2,158,052 2,582,306 1,518,303 3,907,028

949,832 2,940,570 1,897,276 1,303,680 2,377,008 1,932,762 1,812, 113 2,381,907

524,336 739,000

6,836,884 5,182,346 1,143,605 3,009,243

990,787 883,025

2,957,614 2,161,050 1,321,241

Market Value

2,015,620 1,730,821 5,128,440 3,018,750 7,230, 193

19,123,824

30,543,517

49,667,341

Market Value

3,575,000 879,450

26,346,740 2,317,594

11,903,514 3,859,515 4,117,300 2,455,250 3,299,400 2,237,200 2,319,480 1,962,000 4,142,680 2,469,962 3,844,500 1,808,000

19,157,500 2,988,650 4,353,600 1,898,444 3,271,400 9,674,600 2,694,160

517,328 2,997,000

15,252,550 5,677,720 1,666,848

'3,354,020 1,521,100 2,301,750 3,319,590 2,805,825 6,783,173

STATEMENT 14A

Sarah Scaife Foundation Incorporated Schedule of Investments

December 31, 2006 Microchip Technology, Inc. 88,000 2,751,311 2,877,600 Nike, Inc. 27,000 2,115,479 2,673,810 Novartis AG 84,000 4,769,879 4,824,960 Nuveen Investments, Inc. 56,000 2,536,733 2,905,280 Omnicon Group, Inc. 32,000 2,568,318 3,345,280 Paychex Inc. 27,000 998,833 1,067,580 Pepsico, Inc. 50,500 2,815,921 3, 158,775 Praxair, Inc. 52,000 2.497,634 3,085,160 Proctor & Gamble Co. 120,000 5,463,120 7,712,400 Sally Beauty Co., Inc. 41,000 520,658 319,800 Southern Co. 55,498 1,572,069 2,045,656 Stryker Corp. 80,500 3,846,827 4,436,355 Sysco Corp. 50,000 1,424,160 1,838,000 Texas Instruments Inc. 80,000 1,883,200 2,304,000 3M Co. 41,500 3,316,414 3,234,095 United Parcel Service, Inc. 13,500 1,002,375 1,012,230 United Technologies Corp. 120,000 2,218,926 7,502,400 UnitedHealth Group, Inc. 64,000 1,977,202 3,438,720 Wachovia Corp. 52,015 2,004,960 2,962,254 Wells Fargo & Company 122,600 3,355,250 4,359,656

TOTAL COMMON STOCK 131,839,106 232,876,854

Corporate Bonds Shares/or Par Value Cost Market Value

GTE Northwest Inc. 775,000 860,750 777,217 Harvard University Massachusetts 1,000,000 1,077,163 1,007,580 National Rural Utilities 1,050,000 1,004,356 1,064,396 Pharmacia Corporation 1,000,000 1,071,680 1,010,550 South Carolina Electnc Gas Co. 100,000 1,026,180 1,052,340

TOTAL CORPORATE BONDS 5,040,129 4,912,083

Venture Funds Shares/or Par Value Cost Market Value

Code, Hennessy & Simmons Limited Partnership 64,366 18553 Code, Hennessy & Simmons II, LP. 245,883 623337 Code, Hennessy & Simmons Ill, LP. 250,960 111827 Code, Hennessy & Simmons IV, LP. 1,005,523 1286224 Meakem Becker Ventures Captial I LP 80,000 80,000

TOTAL VENTURE FUNDS 1,646,732 2,119,941

Mutual Funds Shares/or Par Value Cost Market Value

Mutual Fund: !Shares Trust 112,000 3,896,172 8,739,360

TOTAL MUTUAL FUNDS 3,896,172 8,739,360

STATEMENT14A

SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452

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

T. KENNETH CRIBB, JR.

TITLE AND TIME DEVOTED TO POSITION

CHAIRMAN /TRUSTEE 2.50

EXECUTIVE VP 32.00

VP/TREASURER 32.00

SECRETARY 2.50

ASST. TREASURER 32.00

TRUSTEE 2.50

TRUSTEE 2.50

77270J 827G 06/06/2007 12:21:06 V06-6.3

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE

COMPENSATION BENEFIT PLANS

NONE NONE

210,847. 34,000.

244,180. 34,000.

NONE NONE

50,333. 11,500.

NONE NONE

6,000. NONE

32;TATEMENT 15

AND OTHER ALLOWANCES

NONE

NONE

NONE

NONE

NONE

NONE

NONE


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

NAME AND ADDRESS

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 PITTSBURGH, PA 15219-6401

JAMES M. WALTON 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900


TRUSTEE 2.50

TRUSTEE 2.50

TRUSTEE 2.50

TRUSTEE 2.50

TRUSTEE 2.50

TRUSTEE 2.50

77270J 827G 06/06/2007 12:21:06 V06-6.3

COMPENSATION

6,000.

6,000.

3,000.

6,000.

3,000.

3,000.

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE AND OTHER BENEFIT PLANS ALLOWANCES

NONE NONE

NONE NONE

NONE NONE

NONE NONE

NONE NONE

NONE NONE

3.3;TATEMENT 16


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

NAME AND ADDRESS

PITTSBURGH, PA 15219-6401

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


TRUSTEE 2.50

GRAND TOTALS

77270J 827G 06/06/2007 12:21:06 V06-6.3

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE AND OTHER

COMPENSATION BENEFIT PLANS ALLOWANCES

6,000. NONE NONE

544,360. 79,500. NONE ============== ============== ==============

3~TATEMENT 1 7


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

CONTRIBUTIONS EXPENSE ACCT TITLE AND TIME TO EMPLOYEE AND OTHER .

NAME AND ADDRESS DEVOTED TO POSITION COMPENSATION BENEFIT PLANS ALLOWANCES

CAROL NOLAN 301 GRANT STREET PITTSBURGH, PA 15219-6401

ALEXIS J. KONKOL 301 GRANT STREET PITTSBURGH, PA 15219-6401

POLLY MCQUEEN 301 GRANT STREET PITTSBURGH, PA 15219-6401

EMPLOYEE 32.00

EMPLOYEE 32.00

24.00

TOTAL COMPENSATION

77270J 827G 06/06/2007 12:21:06 V06-6.3

56,800. 13,050. NONE

55,933. 12,850. NONE

50,700. 10,988. NONE

163,433. 36,888. NONE ========== =========- ==========

35 STATEMENT 18

' SAR.All SCAIFE FOUNDATION INCORPORATED 25-1113452

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

NAME AND ADDRESS TYPE OF SERVICE COMPENSATION

KPMG LLP ACCOUNTING SERVICES 61,821. ONE MELLON CENTER PITTSBURGH, PA 15219

OXFORD DEVELOPMENT COMPANY/GRANT ST. FACILITY RENTAL 227,572. ONE OXFORD CTR, PLAZA LEVEL,301 GRANT ST PITTSBURGH, PA 15219

R. DANIEL MCMICHAEL CONSULTING 265,326. ONE OXFORD CENTRE, 301 GRANT STREET PITTSBURGH, PA 15219

TOTAL COMPENSATION 554,719.

STATEMENT 19

77270J 827G V06-6.3 36

SARAH SCAIFE FOUNDATION INCORPORATED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2006

FORM 990-PF

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

PART II, LINE 14 - ACCUMULATED DEPRECIATION

STATEMENT 20

DESCRIPTION AMOUNT

LEASEHOLD IMPROVEMENTS OFFICE EQUIPMENT

SUBTOTAL FIXED ASSETS LESS: ACCUMULATED DEPRECIATION

NET FIXED ASSETS

316,204 508,303 824,507

(787,774) 36,733

DE.PRECIATION AND AMORTIZATION EXPENSE FOR 12/31/06 WAS $38,455.

STATEMENT 20

SARAH SCAIFE FOUNDATION Incorporated

One Oxford Centre 301 Grant Street, Suite 3900

Pittsburgh, Pennsylvania 15219-6401 412-392-2900

ANNUAL REPORT

STATEMENT 21

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 21


FORM990-PF

Federal Footnotes

Grants Paid & Approved:

STATEMENT 22

All of the grantees shown on the attached statement of grants are exempt under the Internal Revenue Code (IRC) Section 501(c )(3), and have the status of public charities within the meaning of IRC Section 509(A)(1)(2) or (3).

STATEMENT 22


SCHEDULE OF GRANTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2006

Payable, 1 /1 /06-12/31 /06 Payable, 12/31/05 Approved Paid 12/31/06

Allegheny Institute for Public Policy, Pittsburgh, Pennsylvania General operating support $ $ 110,000 $ 110,000 $

American -Bar Association Fund for Justice and Education, Chicago, Illinois Standing Committee on Law

. and National Security 130,000 65,000 65,000

American Civil Rights Institute, Sacramento, California General operating support 150,000 150,000

American Council of Trustees and Alumni, Washington, D.C. General operating support 50,000 50,000

American Enterprise Institute for Public Policy Research,

Washington, D.C. Book Project 50,000 50,000 Program Support 200,000 200,000 Project support 300,000 300,000 Shadow Financial Regulatory Committee 25,000 25,000

America's Future Foundation, Washington, D.C.

General operating support 50,000 50,000

Atlantic Legal Foundation, · New York, New York


Atlas Economic Research Foundation, Arlington, Virginia General operating and program support 200,000 200,000

Boston University, Boston, Massachusetts

Institute for the Study of Conflict, Ideology and Policy 44,500 89,500 89,500 44,500

STATEMENT 23



Payable, 1/1/06 -12/31/06 Payable, 12/31/05 Approved Paid 12/31/06

Capital Research Center, Washington, D.C.

General operating support $ $ 250,000 $ 250,000 $

Carnegie Mellon University, Pittsburgh, Pennsylvania Gailliot Center for Public Policy 150,000 75,000 75,000 Project support 75,000 75,000

Cato Institute, Washington, D.C. Fiscal Policies Study Program 60,000 60,_000

Center for Equal Opportunity, Ster1ing, Virginia General operating support 75,000 75,000

Center for Immigration Studies, Inc., Washington, D.C.


Center for Individual Rights, Washington, D.C. General operating support 150,000 150,000

Center for Media and Public Affairs, Washington, D.C. General operating support 100,000 100,000

Center for Security Policy, Inc., Washington, D.C.


Center for Strategic and International Studies, Inc., Washington, D.C.

Senior Advisor Post and project support 385,000 200,000 185,000

Center for the Study of the Presidency, Washington, D.C.

Program and project support 200,000 125,000 75,000

STATEMENT 23

SARAH -SCAIFE FOUNDATION INCORPORATED



Clare,nont Institute for the Study of Statesmanship and Political Philosophy, Claremont, California General operating, program and Washington Fellow support $ $ 400,000 $ 400,000 $

Collegiate Network, Inc., . Wilmington, Delaware

General operating support 140,000 140,000 National Security Program 100,000 50,000 50,000 Professional Journalism Fellowships 60,000 60,000

The Commonwealth Foundation for Public Policy Alternatives, Harrisburg, Pennsylvania General operating support 130,000 130,000

Competitive Enterprise Institute, Washington, D.C. General operating support 150,000 150,000 Project support 200,000 200,000

David Horowitz Freedom Center, Los Angeles, California General operating support 150,000 300,000 300,000 150,000

Environmental Literacy Council, Washington, D.C. General operating support 75,000 75,000

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

· General operating and program support 175,000 175,000

Evergreen Freedom Foundation, Olympia, Washington Project support 100,000 50,000 50,000

The Federalist Society for Law & Public Policy Studies, Washington, 0.C. General operating and project support 325,000 325,000

Foreign Policy Research Institute, Philadelphia, Pennsylvania


STATEMENT 23



The Foundation Endowment Alexandria, Virginia General operating support

Foundation for California University of Pennsylvania, California, Pennsylvania Government Agency Coordination Office

Foundation for Cultural Review, Inc., New York, New York Genera! operating support

Foundation for Individual Rights in Education, Inc., Philadelphia, Pennsylvania General operating support

Foundation ior Teaching Economics, Davis, California General operating support

Foundation for the Defense of Democracies, Inc., Washington, D.C. Project support

Freedom House, Inc., Washington, D.C. Center for Religious Freedom

FreedomWorks Foundation, Washington, D.C.

General operating and project support

Galen Institute, Inc., Alexandria, Virginia

General operating support

George C. Marshall Institute, Washington, D.C.


$

Payable, 12/31/05

$

1/1/06 -12/31/06 Payable, 12/31/06 Approved Paid ·

75,000 $ 75,000 $

125,000 125,000

260,000 260,000

125,000 125,000

25,000 25,000

200,000 200,000

140,000 140,000.

200.000· 200,000

35,000 35,000

155,000 155,000

STATEMENT 23


SCHEDULE OF GRANTS . AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2006


George Mason University Foundation, Inc .• Fairfax, Virginia Law and Economics Center $ $ 200,000 $ 200,000 $

The Heritage Foundation, Washington, D.C. General operating support 800,000 800,000

High Frontier, Alexandria, Virginia

Program support 50,000 100,000 100,000 50,000

Hudson Institute, Inc., Washington, D.C.

Project support 200,000 200,000

The Human Rights Foundation, New York, New York General operating support 100,000 100,000

Independent Women's Forum, Washington, D.C.


Institute for Foreign Policy Analysis, Inc., Cambridge, Massachusetts

Economic Security Program 160,000 160,000 General operating support 450,000 450,000 Project support 200,000 125,000 75,000

Institute for Health Freedom, Washington, D.C.

General operating support 100,000 200,000 200,000 100,000

Institute for Humane Studies, Inc., Arlington, Virginia General operating support 50,000 50,000

Institute for Justice, Washington, D.C.

General operating support 100,000 100,000 .

Institute for Research on the Economics of Taxation, Washington, D.C. General operating and program support 150,000 150,000

STATEMENT 23


SCHEDULE OF GRANTS AS OF AND FOR THE YEAR ENDED DECEMBER 31. 2006


Intercollegiate Studies Institute, Inc., Wilmington, Delaware

Civic Literacy Project $ 200,000 $ - $ 100,000 $ 100,000 General operating support 350,000 350,000

Jamestown Foundation, Washington, D.C. General operating support 135,000 135,000

Johns Hopkins University, Washington, D.C. The Paul H. Nitze School of Advanced International Studies 187,000 187,000

Landmark Legal Foundation, Kansas City, Missouri General operating support 200,000 200,000

Ligonier Valley School District, Ligonier, Pennsylvania Christmas gift program 7,500 7,500

The Maldon Institute, Baltimore, Maryland

General operating support 484,000 242,000 242,000

Manhattan Institute for Policy Research, Inc., New York, New York General operating and publication support 200,000 200,000

Project support 40,000 40,000

Media Research Center, Alexandria, Virginia General operating support 350,000 200,000 150,000

Mercatus Center, Inc., Fairfax, Virginia General operating support 80,000 80,000

Nantucket Sustainable Development Corporation, Nantucket, Massachusetts Program support 10,000 10,000

STATEMENT 23




National Association of Scholars, Inc .• Princeton, New Jersey General operating support $ $ 250,000 $ 250,000 $

National Center for Policy Analysis, Dallas, Texas General operating support 125,000 125,000

National Institute for Public Policy, Fairfax, Virginia Program support 200,000 200,000

National Taxpayers Union Foundation, Alexandria, Virginia Congressional Budget Tracking System 75,000 75,000

New England Legal Foundation, Boston, Massachusetts General operating support 60,000 60,000

NumbersUSA Education and Research Foundation, Arlington, Virginia Project support 50,000 50,000

Pacific Research Institute for Public Policy, San Francisco, California General operating support 200,000 200,000

Philadelphia Society, Jerome, Michigan General operating and meeting support 30,000 30,000

Philantt,ropy Roundtable, Washington, D.C.

Program support 10,000 10,000

Phipps Conservatory and Botanical Gardens, Inc., Pittsburgh, Pennsylvania Campaign 2000 2,250,000 1,000,000 1,250,000 Mellon Park improvements 112,000 112,000

STATEMENT 23



Point Park University, Pittsburgh, Pennsylvania Project support

Princeton University, Princeton, New Jersey James Madison Program in American Ideals and Institutions

·Rea·son Foundation, Los Angeles, California General operating support

Saint Vincent College, Latrobe, Pennsylvania Center for Political and Economic Thought

Seton Hill University, Greensburg, Pennsylvania Preservation of historic trees and grounds

Smith College, Northampton, Massachusetts Center for the Study of Social and Political Change

Social Philosophy and Policy Foundation, Bowling Green, Ohio Social Philosophy and Policy Center

Southeastern Legal Foundation, Inc. Atlanta, Georgia


Southwest Missouri State University Foundation, Springfield, Missouri Department of Defense and Strategic Studies

$

Payable, 12/31/05

1/1/06 -12/31/06 Payable, 12/31/06 Approved Paid

$ 150,000 $ 150,000 $

75,000 75,000

125,000 125,000

35,000 35,000

100,000 100,000

80,000 80,000

625,000 625,000

75,000 75,000

150,000 150,000

STATEMENT 23




Stanford University, Hoover Institution on War, Revolution and Peace, Stanford, California Research programs and Hoover Fellow support $ $ 450,000 $ 250,000 $ 200,000

Statistical Assessment Service, Washington, D.C.


Tax Foundation, Washington, D.C.

General operating and project support 100,000 100,000

Tufts University, Medford, Massachusetts The Fletcher School of Law and Diplomacy 300,000 150,000 150,000

The University of Chicago, Chicago, Illinois George J. Stigler Center for the Study of the Economy and the State 50,000 50,000

Law and Economics Program 150,000 75,000 75,000

University of Kentucky, Lexington, Kentucky Program in Quality, Safety and Patient Rights 200,000 100,000 100,000

University of Virginia Law School Foundation, Charlottesville, Virginia Center for National Security Law 350,000 350,000

Victims of Communism Memorial Foundation, Inc., Washington, D.C. Building Campaign 25,000 25,000

Wor1d Affairs Council of Pittsburgh, Pittsburgh, Pennsylvania Teacher-Student Educational Projects 75,000 75,000

Total ! 3, 106,500 ! 15,823,000 ! 15,603,000 !3,326,500

STATEMENT 23

~~-------


FORM990-PF

Federal Footnotes

Allocation of Expenses in Part I:

STATEMENT 24

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;

STATEMENT24

:SAKAH SCAIFE FOUNDATION INCORPORATED

SCHEDULE OF GAINS (LOSSES) FOR TAX ON INVESTMENT INCOME EQB Itt~ X~6B i;t:ICEC CE~EMIU~B i\l, ~!ii

(a)

Kind of property

Security

Security

Security

Security

Security

Security

Security

Security

Security

Security

Security

Security

Security

~ m s: m z -I N c.n

. (b) (c)

How Acquired P-Purchase

Descriotion P:Qonated

US Treasury Notes p

Abbott Labs p

Allstate Corp p

Lowes Companies, p Inc.

US Treasury Notes p

Acco Brands Corp. p

Amgen, Inc. p

Lowes Companies, p

Inc.

US Bancorp, Del p

Embarq Corp. p

Federal Home & p Loan Bank

BP P.L.C. p

Home Depot, Inc. p

(d) (e)

. Cata Date Sold/ e,.cau1reg ~

06/18/98 02115/06

02128/05 02/17/06

03/10/04 02117/06

12/29/98 02/17/05

01/10/97 05/15/06 06/17/97

08/23/05 05119106

08/03/96 05/19JOB

10/02/96 05119106 12/29/98

05/08/02 05/19106

03/10/03 05125106

05/06/02 08/15/08

02/11/93 09/22/06

06/23198 09/22/06 05/10199 12122/03

$

" _,

(f) (h) (I) 0) (k) (I) (m)

Losses from Cost or Fair Market column 0)

Gross Other Basis Value asof and gains Sales and Expense Gain (loss) December Ad}usted Excess of (j) (excess (i) Price of Sale fOJesalh) 31,1969 Cost Basis over(k) over<m

2,900,000 2,901,359 (1,359) NIA NIA NIA $ (1,359)

1,762,500 1,830,054 (67,554) NIA NIA NIA (67,554)

2,381,042 1,988,222 392,820 NIA NIA NIA 392,820

2,158,336 850,716 1,307,620 NIA N/A N/A 1,307,620

2,730,000 2,789,156 (59, 156) NIA NIA NIA (59,156)

189,366 121,932 67,434 NIA NIA NIA 67,434

2,097,479 480,803 1,836,676 NIA NIA NIA 1,636,676

2,055,930 632,357 1,423,573 NIA NIA NIA 1,423,573

2,611,851 1,984,925 828,926 NIA NIA NIA 626,926

10 4 6 NIA NIA NIA 6

2,000,000 2,047,420 (47,420) NIA NIA NIA (47,420)

5,171,878 847,484 4,524,414 NIA NIA NIA 4,524,414

3,414,274 2,939,858 474,416 NIA NIA NIA 474,416

.:>AKAH SCAIFE FOUNDATION INCORPORATED

SCHEDULE OF GAINS (LOSSES) FOR TAX ON INVESTMENT INCOME FOR THE YEAR ENDED QECEMBER 31, 2006

Property

Security

Security

Security

Security

Security

Security

Security

Security

Security

Security

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How Acquired

P-Purchase Description P:Donated

Medtronic, Inc. p.

US Treasury NIB p

US Treasury N/B p

Amgen, Inc. p

Embarq Corp. p

Sprint Nextel Corp. p

US Treasury NIB p

US Treasury NIB p

US Treasury NIB p

US Treasury NIB p

Date Date/Sold 6<;qulred Matured

03/10/03 09122/06 06/10/05 09123/05 11/28/05

08/06/99 10/15/06 06/18104

12/02/04 11/15/08

06/03/96 11/20106

03/10/03 11/20/06

03/10/03 11/20/06

04/28104 12/05/06

10101102 12/05/06

01116/03 12/05/06

10/05/04 12/05/06

Total

-,

Losses from Cost or Fair Market column 0) Other Basis Value as of and gains

Gross and Expense Gain (loss) December Adjusted Expense of (j) (excess (i) Sales Price of Sale m 1ess Ch> 31,1969 Cost Basis !2Y.m.1lsl overm

4,144,445 4,676,177 (531,732) NIA NIA NIA (531,732)

3,000,000 3,116,758 {116,758) NIA NIA NIA (116,758)

2,500,000 2,521,484 (21,484) NIA NIA NIA (21,484)

1,121,093 230,403 890,690 NIA NIA NIA 890,690

224,348 70,203 154,145 NIA NIA N/A 154,145

1,779,623 732,224 1,047,599 NIA NIA NIA 1,047,599

997,422 1,045,000 (47,578) NIA NIA NIA (47,578)

7,118,719 7,398,000 (279,281) NIA NIA NIA (279,281)

1,967,188 1,992,344 {25,156) NIA NIA NIA (25, 156)

5,091,328 5,227,625 (136,297) NIA NIA NIA (136,297)

$ 57,417,032 S 46,204.488 S 11,212,544 NIA NIA NIA S 11,212,544

•

Form 2220 Department of the Treasury Internal Revenue Service

Underpayment of Estimated Tax by Corporations .... See separate instructions.

.... Attach to the corporation's tax return.

OMB No 1545-0142

~@06 Name Employer Identification number

SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452 Note: Generally, the corporation is not required 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, line 34 on the estimated tax penalty line of the corporation's income tax return, butdo not attach Form 2220.

.::F.Tii .. Required Annual Payment

1 Total tax (see instructions) ••••••• 1 203.802. . . . . . . . . . . . . . . . . . . . . . . .............. 2a Personal holding company tax (Schedule PH (Form 1120). line 26) included on line 1 2a

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

contracts or section 167(g) for deprec1at1on 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 is less than $500, do not complete or file this form. The corporation

does not owe the penalty • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 3 203 802. . . 4 Enter the tax shown on the corporation's 2005 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 I NONE .. 5 Required annual payment. Enter the smaller of line 3 or line 4 If the corporation is required to skip line 4,

enter the amount from line 3 .................... . . . . . . . . . . . . . . . . . . . . . 6 203.802. l:F.11•11 Reasons for Filin_g_- Check the boxes below tha_t apply: If any boxes are checked, the corporation must file

Form 2220 even 1f ,t does not owe a penalty (see instructions).

6 - The corporation 1s using the adJusted seasonal installment method.

7 The corporation 1s using the annualized income installment method. ,__.. 8 x The corporation 1s a "large corporation" figuring its first required installment based on the prior year's tax.

•:. ,Toi 11• Figuring the Underpayment

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

9 Installment due dates. Enter 1n columns (a) through (d) the 15th day of the 4th (Foml 99{).PF filers: Use 5th month), 6th, 9th, and 12th months of the

9 05/15/2006 06/15/2006 09/15/2006 12/15/2006 corporation's tax year • • • • • • • • • • • . . 1 0 Required Installments. If the box on line 6 and/or

line 7 above 1s checked, enter the amounts from Schedule A, line 38 If the box on line 8 (but not 6 or 7) 1s checked, see Instructions for the amounts to enter If none of these boxes are checked, enter 25% of line 5 above tn each column Special rules apply to corporations with assets of $1 billion or

10 36.324. 31 870. 68 288. 65 600. more (see 1nstruct1ons) ............ 11 Estimated tax paid or credrted for each period (see

mstructrons) For column (a) only, enter the amount 11 36.500. 33,000. 67,500. 70.000. from line 11 on line 15 ............

Complete lines 12 through 18 of one column before going ID the next column.

12 Enter amount, 1f any, from line 18 of the preceding 12 176. 1. 306. 518. column •••••••••••••••••

13 Add Imes 11 and 12 ............ 13 33.176. 68,806. 70.518. 1 4 Add amounts on lines 16 and 17 or the preceding column 14

16 Subtract line 14 from line 13 W zero or less, en!Br-0-.. 16 36.500. 33.176. 68,806. 70.518.

1 6 If the amount on line 15 rs zero, subtract line 13 16 from line 14 OtherwJSe, enter -0- • • • • • • • •

1 7 Underpayment. If line 15 IS less than or equal to line 1 O, subtract line 15 from line 1 O Then go to line 12 of the next column Othel'Wlse, go to line 18 17

18 Overpa~nt. 0

ll0

1i~e· 1"0" ~ kl~ 0t~n· l;n; 15°, subtract line 1 O from line 15 Then go to line

176. 1. 306. 518. 12 of the next column • • • • • • • • • • • . . 18

Go to Part IV on page 2 to figure the penalty. Do not go to Part IV If there are no entries on line 17 • no penalty Is owed.

For Paperwork Reduction Act Notice, see separate lnstrucUons. Form 2220 (2006) JSA 6X8006 2 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 38

j:tfjj~j'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 is earlier (see instructions). (Fonn 990-PF and Fonn 990-T filers: Use 5th month instead of 3rd month ) ............... . . 19

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

date shown on line 19. ................ . . . . 20

21 Number of days on hne 20 after 4/15/2006 and before

7/1/2006 ....................... . . 21

22 Underpayment on line 17 x Number of days on line 21 x 7% 22 .. 365

23 Number of days on line 20 after 6/30/2006 and before 4/1/2007 • .. 23

24 Underpayment on line 17 x Number of days on line 23 x 8% 24 .. 365

25 Number of days on hne 20 after 3/31/2007 and before 7/112007 • .. 25

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

27 Number of days on line 20 after 6/30/2007 and before 10/1/2007 .. 27

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

365

29 Number of days on line 20 after 9/30/2007 and before 1/1/2008 • .. 29

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

31 Number of days on hne 20 after 12/31/2007 and before 2/16/2008. 31

32 Underpayment on hne 17 x Number of days on line 31 x •%. .. 32 366

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

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

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

*For underpayments paid after March 31, 2007: For lines 26, 28, 30, and 32, use the penalty interest rate for each calendar quarter, which the IRS will determine during the first month m the preceding quarter. These rates are published quarterly in an IRS News Release and m a revenue ruling in the Internal Revenue Bulletin. To obtain this information on the Internet, access the IRS website at www.lrs.gov. You can also call 1-800-829-4933 to get interest rate information

Form 2220 (2006)

JSA 6X8007 2 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 39

Form 2220 (2006) Page4 l::.,;r.•1• Aonualized Income (a) (b) (c) (d)

Installment Method

First 2 First 3 First 6 First 9 20 Annuahzat1on periods (see instructions). 20 months months months months

21 Enter taxable income for each annualizat1on period (see instructions). 21 2.421.589. 3.409.699. 9,098,794. 15156185.

22 Annuahzallon amounts (see instructions). 22 6.00000 4.00000 2.0000( 1.33333 23 Annualized taxable income. Multiply hne 21

by hne 22. 23 14529534. 13638796. 18197588. 20208196. 24 Figure the tax on the amount on hne 23

using the instructions for Form 1120, Schedule J, line 2 (or comparable hne of corporation's return) 24 145 295. 136.388. 181,976. 202 082.

25 Enter any alternative minimum tax for each

payment period (see instructions). 25

26 Enter any other taxes for each payment period (see instructions). 26

27 Total tax. Add Imes 24 through 26. 27 145.295. 136.388. 181, 976. 202 082. 28 For each period, enter the same type of credrts

as allowed on Form 2220, Imes 1 and 2c (see mstruct1ons} 28

29 Total tax after credits. Subtract hne 28 from line 27. If zero or less, enter -0-. 29 145.295. 136,388. 181.976. 202.082.

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

31 Multiply line 29 by hne 30. 31 36.324. 68.194. 136,482. 202.082. •~•11• Required Installments Note: Complete lines 32 through 38 of 1st 2nd 3rd 4th one column before completing the next installment installment installment installment column

32 If only Part I or Part II 1s completed, enter the amount m each column from hne 19 or line 31. If both parts are completed, enter the smaller of the amounts m each column from line 19 or hne 31. 32 36.324. 68.194. 136.482. 202.082.

33 Add the amounts m all preceding columns of line 38 (see instructions) 33 36.324. 68.194. 136.482.

34 Adjusted seasonal or annualized income installments. Subtract hne 33 from line

32. If zero or less. enter -0-. 34 36.324. 31. 870. 68,288. 65.600. 35 Enter 25% of hne 5 on page 1 of Form

2220 m each column. (Note: (Corporations with assets of $1 bllhon or more and "large corporations,• see the instructions for /me 10 for the amounts to enter.) 35 50.951. 50 951. 50,951. 50.951.

36 Subtract line 38 of the preceding column from line 37 of the preceding column. 36 14,627. 33,708. 16. 371.

37 Add lines 35 and 36. 37 50,951. 65,578. 84,659. 67,322. 38 Required installments. Enter the smaller of

hne 34 or hne 37 here and on page 1 of Form 2220, line 10 (see Instructions). 38 36.324. 31. 870. 68.288. 65.600.

Form 2220 (2006)

JSA 6X8009 2 000

77270J 827G 06/06/2007 12:21:06 V06-6.3 40

1

Fonn 886'8 (Rey. December 2006)

- 1par1men1 of the Treasury amal Revenue SIIIVlce

Application for Extension of Time To File an Exempt Organization Return

..,. File a separate application for each retum.

OMB No. 1545-1709

If you are filing for an Automatic 3-Month Extension, complete only Part I and check this box . . • • • • . • .... ~ • If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II (on page 2 of this form). Do not com tete Part II unless ou have alrea been ranted an automatic 3-month extension on a revious filed Form 8868.

Automatic 3-Month Extension of Time. Only submit original (no copies needed).

Section 501(c)(3) corporations required to file Form 990-T and requesting an automatic 6-month extension-check this box and complete Part I only • • • . . • • • . • • . • . • • . • . . • • . . • • • • . • • • • .... O All other corporations (lncludlng 1120-C filers), partnerships, REM/Cs, and trusts must use Form 7004 to request an extension of time to file Income tax returns. Electronic Filing (e-tlle). Generally, you can electronically file Form 8868 if you want a 3-month automatic extension of time to file one of the returns noted below (6 months for section 501(c)(3) corporations required to file Form 990-n. However, you cannot file Form 8868 electronically if (1) you want the additional (not automatic) 3-month extension or (2) you file Forms 990-BL, 6069, or 8870, group returns, or a composite or consolidated Form 990-T. Instead, you must submit the fully completed and signed page 2 Part II) of Form 8868. For more details on the electronic filing of this form, visit www.lrs.gov/eflle and click on e-file for Charities & Nonprofits.

Type or Name of Exempt Organization I Employer Identification number print SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452 File by the Number, street, and room or suite no. If a P.O. box, see instrudions.

g~~fc!rtor 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 return. See inslructions. City, town or post office, state, and ZIP code. For a foreign address, see Instructions.

PITTSBURGH, PA 15219 Check type of return to be filed (file a separate application for each return): O Form 990 D Form 990-T (corporation) O Form 990-BL D Form 990-T (sec. 401(a) or 408(a) trust) O Form 990-EZ D Form 990-T (trust other than above) 'xi Form 990-PF O Form 1041-A

, The books are in the care of .... SARAH SCAIFE FOUNDATION INC.

D Form 4720 O Form 5227 D Form 6069 O Form 8870

Telephone No ..... 412-392-2900 FAX No . ..,.-----------• If the organization does not have an office or place of business in the United States, check this box • . • . . • .... O • If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) . If this is for the whole group, check this box . . . . . . .... 0 . If it is for part of the group, check this box . . . . . . .... O and attach a list with the names and EINs of all members the extension will cover.

1 I request an automatic 3-month (6 months for a section 501 (c)(3) corporation required to file Form 990-n extension of time until AUGUST 15 , 20..Ql. to file the exempt organization return for the organization named above. The extension is for the organization's return for: .... IX) calendar year 20 Q!_ or .... D tax year beginning , 20 _, and ending , 20 _.

2 If this tax year is for less than 12 months, check reason: D Initial return O Final return O Change in accounting period

3a If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less an nonrefundable credits. See instructions.

b If this application is for Form 990-PF or 990-T, enter any refundable credits and estimated tax a ments made. Include an rior ear over ment allowed as a credit

c Balance Due. Subtract line 3b from line 3a. Include your payment with this form, or, if required, deposit with FTO coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions.

3a S NONE

3b S NONE ~-----~ $ NONE

Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO •,r payment instructions.

'or Privacy Act and Paperwork Reduction Act Notice, see Instructions. Form 8868 (Rev. 12·2006)

ISA S"TF XVWZI000.1

Sarah Scaife Foundation 251113452 2006 0326080FSearchable

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