charles g koch foundation 2007 990

r

Fonn990-PF Department of the Treasury Internal Revenue Ser,,ce

EXTENSION GRANTED Return of Private Foundation

or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation

Note: The foundation ma be able to use a co of this return to sat,s

OMB No. 1545-0052

uirements ~@07 F d or ca en ar vear 2007 , or tax vear b eainmna . 2007 , an d d" en mg G Check all that acclv I I Initial 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. CHARLES G. KOCH CHARITABLE FOUNDATION 48-0918408

Otherwise, Number and street (or P.O. box number 1f ma1l 1s not delivered to street address) Room/suite BTelephone iwmber (ue p•ge 10 of the instrucbon&)

print or type.

2256 I 316 l 828-5552 See Specific P. 0. BOX City or town, state, and ZIP code c If exemption apphcatoon ,s :t] Instructions. - pending, check here ......

D 1. F oreogn organozatoons, check here

WICHITA. KS 67201-2256 2. F oreogn orgamzatJons meebng the

H Check type of organization: lxJ Section 501(cM exempt private foundation 85% test, check here and attach ..... o n Section 49471all1l nonexemot charitable trust Other taxable private foundation computation ........

E I Fair market value of all assets at end

If pnvate foundabon status was tenmnated D J Accounting method.LJ Cash LxJ Accrual under sechon 507(b)(1)(A). check here • ....

of year (from Part II, col. (c), /me D Other (specify)------------------ F If the foundation IS on a 60-fflonth tenmnabon n 16) .... $ 189.275 926. (Part I, column (d) must be on cash basis)

•::.:1•ill•Analysis of Revenue and Expenses (The (a) Revenue and total of amounts m columns (b), (c), and (d) (b) Net investment

may not necessarily equal the amounts in expenses per income column (a) (see page 11 of the mstruct1ons)) books

1 Contnbubon0 s. grants, etc , received (attach schedule) • 80 322, 976.

2 Check .... of the foundation ,snot required to

attach Sch B

3 Interest on savings and temporary cash investments 3 671. 577. 3 671. 577.

4 Dividends and interest from secunt1es • • • • 41, 321. 41, 321.

Sa Gross rents • • • • • • • • • • • • • • • • • 365. 365.

b Net rental income or Ooss) -3£536.

GI 6a Net gain or (loss) from sale of assets not on line 10 602. 818. :::i b Gross sales pnce for all c 86,227,528. GI assets on lone Ga > 7 Capital gam net income (from Part IV, line 2) • 602, 818. GI a::

8 Net short-term capital gain . 9 Income mod1ficat1ons • • . . .

1 O a Gross sales less returns I and allowances • • • • •

b Less Cost of goods sold . I c Gross profit or (loss) (attach schedule)

11 Other income (attach schedule) ••• - 12 Total. Add hnes 1 throuah 11 • • • • 84 639. 057. 4.316 081. -.-,

ffi 13 Compensation of officers, directors, trustees, etc • . 0 14 Other employee salaries and wages 2,068 880.

I .... .

15 Pension plans, employee benefits ..... 528. 372.

16 a Legal fees (attach schedule) • • • S.T f'1T • 1. 64 4 03. 8. 34 7.

~ ~ b Accounting fees (attach schedule~.Tf'1T • ~ 120 14 5. 9,330.

I ~ c Other professional fees (attach sciie!!tira). ~ 692 260. 147. 570.

,: Interest ••••••••••••••••••

Taxes (attach schedule) (see page 14 of the onstructtons') * 83 122. 107.

"i§ Depreciation (attach schedule) and depletion. 20, 180. ,, 20 Occupancy •••••••••••• 333 655. <C ,, 21 Travel, conferences, and meetings ••••• 311, 601. c ca 22 Pnntmg and publications ......... 74 087. en

Other expenses (attach schedule) S.T M'l' . :i 267, 785. c 23 :;: ~ 24 Total operating and administrative expenses. GI

Add Imes 13 through 23 4. 564, 490. 165 354. c.. .......... 0

25 Contributions, gifts, grants paid ••••••• 6 239. 984.

26 Total eIDenses and disbursements. Add Imes 24 and 25 10,804 4 74. 165 354.

27 Subtract line 26 from hne 12·

a Excess or revenue over expenses and disbursements • • 73,834 583.

b Net Investment Income (if negative, enter -0-) 4 150, 727.

c Adjusted net income (1f neQative enter -0-) ••

For Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions.** STMI' 4 JSA 7E1410 4 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

under sechon 507(b)(1)(8), check here • ....

(d) Disbursements (c) Adjusted net for charitable

income purposes leash basis onM

Dr:'. "'r'I\ tr-r.... "-- -"-<..J v L-'-'

'" ~ N l'JUV z ~ zuuu 0 ......

U) ~

-r'lr"\ I r""'D,, I I l'T' ---~ !-i'J 1 UI

2 068 880.

526 227.

NONE 57 406.

NONE 105 610.

526 114.

334 269.

321, 883.

73 165.

92. 733.

NONE 4.106. 287.

5, 974, 000.

NONE 10.080.287.

-0-

Fonn 990-PF (2007)

' Form 90-PF (2007) 4 8 0918408 - Paae 2

lillllll Balance Sheets Attached schedules and amounts in the Beginning of year End of year descnpt1on column should be for end-<lf-year

(b) Book Value amounts only (See instructions.) (a) Book Value (c) Fair Market Value

1 Cash - non-interest-bearing • • • • .. . . . . . . . . . . . . 2,844. 3. 905. 3. 905. 2 Savings and temporary cash investments • • • • • • • . . .. 38, 112, 711. 76. 883. 461. 77 005 235. 3 Accounts receivable~ ________________ 78, 683.

Less. allowance for doubtful accounts ~ 66 ------------- 056. 78.683. 78, 683. 4 Pledges receivable ~ ------------------------

Less allowance for doubtful accounts ~ -------------5 Grants receivable . . .. . . . . . . . .... . . . . 6 Receivables due from officers, directors, trustees, and other

disqualified persons (attach schedule) (see page 16 of the instructions)

7 Other notes and loans receivable (attach schedule) ~ _____

Less: allowance for doubtful accounts ~ -------------Ill 8 Inventories for sale or use .. . ............. .. GI 9 Prepaid expenses and deferred charges • • • 3 370. 20. 088. 20 088. Ill ..... . . . . ~ 10 a Investments - US and state government obhga!Jons (attach schedule)*! 33 800, 000. NONE NON E

b Investments - corporate stock (attach schedule) • . . . . . . c Investments - corporate bonds (attach schedule). .. . .

11 Investments - land, bu1ld1ngs, ~ _______ 3L377L694. and equipment basis Less accumulated depreaa!Jon ~ (attach schedule) -------- ----------- 3 377. 694. 3.377 694. 6. 530. 000.

12 Investments - mortgage loans .. . . . . . . . . . . . . 13 Investments - other (attach schedule) •••••• ~'f 1':fl'. 7 . . 30 551 660. 99.764 933. 105 397. 889. 14 Land, bu1ld1ngs, and ~ 8 3 0 7 7 STMT 8&9 equipment basis -------------L---·-

Less accumulated depreciation ~ 2 0 4 51 (attach schedule) --------------"-'----·- 4 913. 62. 626. 62 626.

15 Other assets (descnbe ~ _____________ STMT_lO) 355. 000. 177 500. 177,500. 16 Total assets (to be completed by all filers - see the

instructions Also, see page 1, item I) • . 106 274 24 8. 180 368. 890. 189 275. 926. 17 Accounts payable and accrued expenses • 30, 180. 44 255. 18 Grants payable ... . . . . . . . 50. 000. 295 984.

: 19 Deferred revenue . . . . .... . . ~ 20 Loans from officers, directors, trustees, and other d1squahfied persons

~ 21 Mortgages and other notes payable (attach schedule) • . . . ::i 22 Other hab1ht1es (descnbe ~ -------------------)

23 Total liabilities (add Imes 17 through 22) . . . . . . . . . . 80 180 . 340. 239. Foundations that follow SFAS 117, check here ~w and complete lines 24 through 26 and lines 30 and 31.

Ill 106.194. 068. 180.028 651. B 24 Unrestricted •• . .. . . .

; 25 Temporarily restricted .. . . .. . . . . . ~ 26 Permanently restricted • • . . . . . . .. "Cl Foundations that do not follow SFAS 117, c ~o ::I check here and complete lines 27 through 31. u.. ci 27 Capital stock, trust principal, or current funds • • • •

J!l 28 Pa1d-1n or caprtal surplus, or land, bldg., and equipment fund . GI

::l 29 Retained earnings, accumulated income, endowment, or other funds • ct 30 Total net assets or fund balances (see page 17 of the .. GI z instructions) • • .. . . . .. . . . . . . . 106 194, 068. 180. 028. 651.

31 Total liabilities and net assets/fund balances (see page 17

of the instructions) • . . . . . . . . . . . .... . . 106 274, 248. 180 368, 890 . ·~ ., ..... 11. Analysis of Changes 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 pnor year's return) • . . . . 1 106 194, 068 . 2 Enter amount from Part I, hne 27a 2 73, 834. 583. . . . . . . . . . . 3 Other increases not included in hne 2 (Itemize)~ 3 -------------------------------------4 Add lines 1, 2, and 3 . ....... 4 180 028. 651. . . . . . . . . ..... . ... . .. . ... . . . . 5 Decreases not included in line 2 (itemize)~ 5 ----------------------------------------6 Total net assets or fund balances at end of year (hne 4 minus hne 5) - Part II, column (b), hne 30 ... .. 6 180 028. 651. JSA **STMT 6 Form 990-PF (2007) 7E1420 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Form 990-PF (2007) 48-0g18408 ·~•11•L'• Capital Gains and Losses for Tax on Investment Income

(a) List and describe the kind(s) of property sold (e.g., real estate, (b) How (c) Date ld) Date sold acquired acquired

2-story brick warehouse, or common stock, 200 shs. MLC Co.) P-Purttiase (mo., day, yr.) mo., day, yr.) 0-Donabon

1a SEE PART IV SCHEDULE

b c d

e

(e) Gross sales price (f) Deprec,at,on 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 gam 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 0) AdJusted basis (k) Excess of col (1) col. (k), but not less than -0-) or as of 12/31/69 over col. (j), 1f any Losses (from col. (h))

a b

c d e

2 Capital gam net income or (net caprtal loss) { If gam, also enter m Part I, line 7 } ..... If (loss), enter -0- in Part I, line 7 2 602 818.

3 Net short-term capital gam or (loss) as defined m sections 1222(5) and (6). If gain, also enter m Part I, line 8, column (c) (see pages 13 and 17 of the instructions) } If (loss), enter-0- in Part I, hne 8 •.•••••••••••••••.•••.••••••••• .. 3

•::r.: ••·- 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 1n the base period? • • • • D Yes [x] No If "Yes," the foundation does not qualify under section 4940(e). Do not complete this part.

1 Enter the appropriate amount in each column for each year, see page 18 of the instructions before making any entries. (a)

(b) (c) (d) Base penod years 01stnbut1on ratio

Calendar year (or tax year beginning 1n) Adjusted quahfy1ng d1stnbutlons Net value of nonchantable-use assets (col. (b) dMded by col (cl)

2006 8. 276 208. 76.656 070. 0.107965 2005 4.646 986. 47, 843, 504. 0.097129 2004 2, 985, 334. 33.959 784. 0.087908 2003 3.283 430. 25.930 4 98. 0.126624 2002 3.313 808. 28. 571 232. 0.115984

2 Total of line 1, column (d) ................................... . . 2 0.535610 3 Average d1stribut1on ratio for the 5-year base period - d1v1de the total on hne 2 by 5, or by

the number of years the foundation has been m eXJstence 1f less than 5 years . . . . . . . .. 3 0. 107122

4 Enter the net value of noncharitable-use assets for 2007 from Part X, hne 5 4 127. 673, 989 • . . . . . . . . . . 5 Multiply lme 4 by line 3 . . . . . . . . . . . . . . . . . . . 5 13 676. 693 • . . . . . . . . . . . . . . . . . . . 6 Enter 1% of net investment income (1% of Part I, hne 27b) 6 41, 507 • . . . . . . . . . . . . . . . . . . . 7 Add Imes 5 and 6 7 13 718 200. . . . . . . . . . . . . . . . . . ........................ 8 Enter qualifying distributions from Part XII, line 4. 8 10 080 287. ........................

If line B 1s equal to or greater than line 7, check the box 1n Part VJ, line 1b, and complete that part using a 1% tax rate See the Part VI instructions on page 18

~~430 2 ooo Form 990-PF (2007)

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

.. Fenn !\90-PF (2007) 4 8-0 918 4 0 8 PaQe 4 •::r. ,_ Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948 - see page 18 of the instructions)

1 a Exempt eperabng feundabens descnbed in secben 4940(d)(2), check here .... LJ and enter "N/A" on hne 1 }

: ~~~i~f ~l~:;:::::::i;~;~~::.:~:=~:::~.:=~::~ ~; : __ 1 ________ 8~3~0~1~5~.

2

3

4

5

6

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

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 lme 4 from hne 3. If zero or less, enter -O

Cred1ts/Payments

a 2007 estimated tax payments and 2006 overpayment credited to 2007. l--'6'""'a'-+-------=8""5""' • ._9=-=1-=2"".'-I

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

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

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

6b

6c

6d

NONE NONE

2

3 83 015.

4 NONE 5 83 015.

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

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

•• ,__7~------~8~5~, ·~9~1~2=. 8

9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed • • • • • • • • • • • • ....1--9=--+-----------

1 o Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid • • • • • • • ..,.1--'1~0'--t-------=2~8~9~7~. 11 Enter the amount of hne 10 to be· Credited to 2008 estimated tax .... 2. 8 9 7. Refunded .... 11

•:.,rr.••J111"f•w Statements Regarding Activities Yes No 1 a During the tax year, did the foundation attempt to influence any national, state, or local leg1slat1on or did it

part1c1pate or intervene m any political campaign? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

b Did 11 spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19

• • • • • • ,__1_a--+ ____ x~

1b x of the instructions for definition)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • l----+----,1---If the answer is "Yes• to 1a or 1b, attach a detailed descnpt1on of the activities and copies of any matenals

publtshed or d1str1buted 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 political expenditures (section 4955) imposed dunng the year: • • • • • • • • • • • • • • • l--1_c--+---+-~x~

(1) On thefoundaben ..... $ (2) On feundaben managers ..... $ __________ _

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

foundation managers .... $ ___________ _

2 Has the foundation engaged m any act1vit1es that have not previously been reported to the IRS? • • • • • • • •••

If "Yes,• attach a detailed descnpt,on of the actNittes • • • • • • 1--'2~+---+-~x'-

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

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

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

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

5 Was there a liquidation, termination, d1ssolut1on, 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 legislation that effectively amends the governing instrument so that no mandatory directions that

conflict with the state law remain m the governing instrument? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

7 Did the foundation have at least $5,000 in assets at any time dunng the year? If "Yes,· complete Part II, col. (c), and Part XV.

Sa Enter the states to which the foundation reports or with which 11 1s registered (see page 19 of the

instructions) ..,.. DC, KS,-------------------------------------------------------------b If the answer is "Yes" to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General

3

4a

4b

5

6 x 7 x

(or designate) of each state as required by Genera/ Instruction G? If "No,· attach explanation • • • • • • • • • • • • • • • • • • 8 b X

9 Is the foundation claiming status as a private operating foundation w1thm the meaning of section 4942(j)(3)

or 4942(])(5) for calendar year 2007 or the taxable year beginning in 2007 (see instructions for Part XIV)? If

"Yes,· complete Part XIV. . . . . . . . 10 Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule ltstmg the tr

names and addresses .

9

10

x x

N 1 A

x

x

x

Fenn 990-PF (2007)

JSA

7E1440 2 000

1 6 7 3 3 H K9 3 2 11 I 1 7 I 2 0 0 8 1 0 : 4 3: 3 0 VO 7 - 8 • 5 85646

JSA

Form 990-PF (2007) 48-0918408 PageS

·~-Ullllf•W Statements Regarding Activities (continued) 11 a At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the

meaning of section 512(b)(13)? If ''Yes," attach schedule. (see page 20 of the instructions) ••••••• .... . . . . . . . 11a x b If "Yes," did the foundation have a bmdmg wntten contract in effect on August 17, 2006, covering the interest,

rents, royalties, and annu1t1es described 1n the attachment for line 11a? •••••••••••••••••••• . . . 11 b N/A

12 Did the foundation acquire a direct or indirect interest in any applicable insurance contract? • • • • • • • • • • ... 12 x 13 Did the foundation comply with the public inspection requirements for its annual returns and exemption application? 13 x

Website address ~ _____ WWW. CGKFOUNDATI ON. ORG -------------------------------------------------14 The books are 1n care of ~ VONDA HOLLI MAN-------------------- Telephone no. ~ _____ L316L828-5552 ____ _

Located at ~Jlll_ E._ 37TH ST._ N._ WICHITA£_ KS---------------------- ZIP+4 ~ 67220 --------rr 15 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-F 1n lieu of Form 1041- Check here •••••••••• N/. A •••••• ~

and enter the amount of tax-exempt interest received or accrued dunng the year • • • • • • • • • • • • • • • • • • ~ I 15 I 1::,rna,jll!I:• 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 indirectly)

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

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept 11 from) a

disqualified person? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

(3) Furnish goods, services, or fac11it1es to (or accept them from) a disqualified person? •••

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? ••••

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

the benefit or use of a disqualified person)?. • • • • • • • • • • • • • • • • • • •

(6) Agree to pay money or property to a government official? (Exception. Check "No" 1f

..

...

0Yes

§v" Yes

Yes

0Yes

[xj No

§No

No

No

[xj No

the foundation agreed to make a grant to or to employ the offiaal for a penod after

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

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

section 53.4941 (d)-3 or in a current notice regarding disaster assistance (see page 22 of the instructions)?

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 1n 1a, other than excepted acts, that

were not corrected before the first day of the tax year beginning in 2007? • • • • • • • • • • • • • • • • •

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

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

.

a At the end of tax year 2007, did the foundation have any undistributed income (Imes 6d and D 6e, Part XIII) for tax year(s) beginning before 2007?. • • • • • • • • • • • • • • • • • • • • • • • • Yes If "Yes,"list the years ~ __________ , _________ , ________ , _______ _

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

(relating to incorrect valuation of assets) to the year's und1stnbuted 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 provts1ons of section 4942(a)(2) are being applied to any of the years listed m 2a, list the years here.

~ ---------- ·--------- ·-------- ·--------

[j

[xj No

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

enterprise at any time dunng the year? • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • D Yes [i] No

b If "Yes," did 11 have excess business holdings in 2007 as a result of (1) any purchase by the foundation or

disqualified 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, or (3) the lapse

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

foundation had excess busmess holdings in 2007) •••••••••••••••••••••••••.•••••

4a Did the foundation invest during the year any amount in a manner that would Jeopardize its charitable purposes? •••••

b Did the foundation make any investment in a pnor year (but after December 31, 1969) that could jeopardize its chantable purpose that had not been removed from Jeopardy before the first day of the tax year beginning 1n 2007?. • • • • • • • • •

Yes No

1b x

1c x

2b NIA

3b NIA

4a x

4b x Form 990-PF (2007)

7E1450 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

JSA

Form 990-PF (2007) 48-0918408 •• __.,.... ... 0111:• Statements Regarding Activities for Which Form 4720 May Be Required (continued)

Sa During the year did the foundation pay or incur any amount to: Oves WNo (1) Carry on propaganda, or otherw1se attempt to influence leg1slat1on (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 drive? • aves tfilNo . . . -(3) ProVlde a grant to an indiVldual for travel, study, or other similar purposes? Yes No . . . (4) Provide a grant to an organization other than a charitable, etc., organization descnbed in

[x]ves 0No section 509(a)(1 ), (2), or (3), or section 4940(d)(2)? (see page 22 of the 1nstruct1ons) . (5) Provide for any purpose other than religious, charitable, saent1fic, literary, or

Oves WNo educational purposes, or for the prevention of cruelty to children or animals? . b If any answer 1s "Yes" to 5a(1 )-(5), did any of the transactions fail to qualify under the exceptions described in

Regulations section 53.4945 or m a current notice regarding disaster assistance (see page 22 of the instructions)? ••• . Sb x Organizations relying on a current notice regarding disaster assistance check here. . . . ... o

c If the answer 1s "Yes" to question 5a(4), does the foundation daim exemption from the tax [x]ves 0No because it maintained expenditure responsibility for the grant? !:iE;.E. $1'1-}.T.E.M~~ 1).

If "Yes,· attach the statement required by Regulations section 53 494~5(d).

6a Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums Oves WNo on a personal benefit contract?. .

b Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 6b x . If you answered "Yes• to 6b, also file Fonn 8870

Oves WNo 7a At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? . b If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? . - 7b NIA

•""':T.1··~11• 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).

(a) Name and address (b) Title, and average be,> Compensation (d) Contnbu~ons to (e) Expense account,

hours per week not paid, enter employee benefit plans other allowances devoted to noslbon -0-) and defened comoensatlon

SEE_STATEMENT_l8 _____________________

NONE NONE NONE

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

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

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

2 Compensation of five highest-paid employees (other than those included on line 1 - see page 23 of the instructions). If none, enter "NONE."

(a) Name and address of each employee paid more than $50,000

SEE STATEMENT 12

Total number of other employees paid over $50,000 ••

(b) Title, and average hours per week

devoted to position (c) Compensation

707, 904.

(d) Contnbutlons to employee benefit

plans and deferred compensation

102 148.

(e) Expense account, other allowances

14.148.

........ 1 2 Fonm 990-PF (2007)

7E1460 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

JSA

Fonn 990-PF (2007) 4 8-0 918 4 0 8 Page7

•=tftiWii Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors (continued)

3 Five highest-paid independent contractors for professional services (see page 23 of the instructions). If none, enter "NONE." (a) Name and address of each person paid more than $50,000 (b) Type of service

KOCH_ BUSI NESS_ HOLD! NGS.L_ LLC -----------------------------WICHITA. KS ACCNTG & LEGAL SRVC

ZAZOVE_ASSOCIATESL_LLC ----------------------------------INCLINE VILLAGE NV INVEST MGMI' SERVICE

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

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

---------------------------------------------------------Total number of others rece1vinci over $50,000 for crofessional services . . •=tblf:Q Summary of Direct Charitable Activities

List the foundation's four largest direct chantable actlvrtJes dunng the tax year lndude relevant statistical information such as the number of organizations and other beneficianes served, conferences convened, research papers produced, etc.

1 SEE_STATEMENT_14 _________________________________________________________ _

2

3

4

l::.F.Ti•t:41'!:• Summarv of Program-Related Investments (see page 24 of the instructions) Descnbe the two largest program-related 1m1estments made by the foundation dunng the tax year on lines 1 and 2.

1_NONE----------------------------------------------------------------------

2

All other program-related in11eStments See page 24 of the instructions

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

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

(c) Compensation

190 238.

90 924.

.~, NONE

E)(penses

Amount

Fonn 990-PF (2007)

7E1465 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Fonn 990-PF (2007) 4 8 -0 918 4 0 8 Page8

1iflQ Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see page 24 of the instructions.)

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

a Average monthly fair market value of secunties ..••.•...•••• 1a 101. 4 21 199. . .. . b Average of monthly cash balances ••.••••.•.•••••••••. 1b 21 667 064 • . . . . c Fair market value of all other assets (see page 25 of the instructions) • 1c 6,530 000. . . . d Total (add Imes 1a, b, and c) •...•••••.•.••.••••••••• 1d 129.618 263. . . . . . . e Reduction claimed for blockage or other factors reported on hnes 1a and

1 c (attach detailed explanation) •••....•••••....•.•.. I 1 e I 2 Acquis1t1on indebtedness applicable to line 1 assets 2 NONE . . . . . . . . . . ................ . 3 Subtract hne 2 from line 1d 3 129, 618, 263. 4 Cash deemed held for charitable" activrties: Eni:e"r 1 1 /2 o/o "oi l~ne 3 (for

0

greater amount, "see page 25. of the instructions) 4 L 944 274 • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, hne 4 5 127.673.989. 6 Minimum investment return. Enter 5% of hne 5 .•••••••••••••••••••••••..•. . 6 6.383 699 • •::r.111--•• Distributable Amount (see page 25 of the instructions) (Section 4942(!)(3) and (J)(5) pnvate operating

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

1 Minimum investment return from Part X, hne 6. . . . . . . . . . . . . i ;~ i . . . . . . .... . . 1 6, 383, 699 . 2a Tax on investment income for 2007 from Part VI, line 5 •. 83. 015 . . . . . . .

b Income tax for 2007. (This does not include the tax from Part VI.) ••• I 2b I c Add Imes 2a and 2b 2c 83 015. . . . . . . . . . . . . . . . . . . ... . .... . .. . ... ... . .

3 Distributable amount before adjustments. Subtract hne 2c from hne 1 . . . . . . . . . ... . .. 3 6. 300. 684 • 4 Recoveries of amounts treated as quahfymg d1stribut1ons . . . . . . . . . . . . .... . . . . . .. 4 5 Add lines 3 and 4 5 6.300.684 • . . . . . . . ... . . . . . . . . . . . . . . ... . . . . . .... 6 Deduction from distributable amount (see page 25 of the instructions) . 6 . . . . . . . . . . . . . .. 7 Distributable amount as adjusted. Subtract hne 6 from hne 5. Enter here and on Part XIII,

hne 1 . . . . . . . . . ........ . . . . . . . .. . . . . ... . . . . . . 7 6 300.684 .

•ifliiii Qualifying Distributions (see page 26 of the instructions)

1 Amounts paid (including adm1mstrat1ve expenses) to accomplish chantable, etc., purposes: a Expenses, contributions, gifts, etc. - total from Part I, column (d), hne 26 •••.••.•.•• 1a 10 080. 287. . . . b Program-related investments - total from Part IX-8 1b NONE . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Amounts paid to acquire assets used (or held for use) directly m carrying out chantable, etc., purposes 2 NONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

3 Amounts set aside for specific charitable proJects that satisfy the: a Su1tab1hty test (prior IRS approval required) 3a NONE ................................ b Cash d1str1but1on test (attach the required schedule) 3b NONE ...........................

4 Qualifying distributions. Add lines 1 a through 3b. Enter here and on Part V, line 8, and Part XIII, hne 4 . . . . . . 4 10 080.287 . 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 26 of the instructions) 5 NIA . 6 Adjusted qualifying distributions. Subtract hne 5 from hne 4 6 10.080 287. . . .

Note: The amount on /me 6 will be used m Part V, column (b), in subsequent years when calculating whether the foundation qualifies for the section 4940(e) reduction of tax in those years.

Fonn 990-PF (2007)

JSA

7E1470 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Form 990-PF (2007) 48-0918408 Page9 . Undistributed Income (see page 26 of the instructions) (a) (b) (c) (d)

1 Distributable amount for 2007 from Part XI, Corpus Years prior to 2006 2006 2007

line7 ..................... 6.300 684. 2 Und1stnbuted income, 1f any, as of the end of 2006

a Enter amount for 2006 only ..... . . . . . b Total for pnor years NONE

3 E>«:ess d1stribut1ons carryover, 1f any, to 2007:

a From 2002 1. 893. 383. b From 2003 1. 991. 823. c From 2004 1.297.997. d From 2005 2, 267, 221. e From 2006 . 4 479,130. f Total of Imes 3a through e • ......... 11, 929, 554.

4 Qualifying distributions for 2007 from Part XII, line4· ~ $ 10, 080, 287.

a Applied to 2006, but not more than line 2a •••

b Apphed to und1stnbuted income of pnor years (Election

required - see page 27 of the instructions) • • • • • •

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

d Applied to 2007 distributable amount ..... 6. 300. 684. e Remaining amount distributed out of corpus .. 3 779. 603.

5 E>«:ess d1stribut1ons carryover applied to 2007 • (If an amount appears in column (cf), the same amount must be shown in column (a) )

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

a Corpus. Add Imes 3f, 4c, and 4e. Subtract line 5 15.709 157.

b Pnor years' undistributed income. Subtract lme 4b from lme 2b NONE ..............

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

d Subtract lme 6c from line 6b. Taxable amount - see page 27 of the instructions NONE

e Undistributed income for 2006. Subtract line 4a from lme 2a. Taxable amount - see page 27 of the instructions .............

f Undistributed income for 2007. Subtract Imes 4d and 5 from line 1. This amount must be distributed in 2008 ...............

7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1 )(F) or 4942(g)(3) (see page 27 of the instructions) • • • • • • • • • • • • • • • • • •

8 E>«:ess distributions carryover from 2002 not applied on hne 5 or line 7 (see page 27 of the

L 893, 383. instructions) •••••••••••••• . . . . 9 Excess distributions carryover to 2008.

Subtract lines 7 and 8 from line 6a 13 815. 774. ....... 1 0 Analysis of hne 9

a Excess from 2003 1 991. 823. b Excess from 2004 . 1 297, 997. c Excess from 2005 2 267 221. d Excess from 2006 4 479 130. e Excess from 2007 3 779 603.

Form 990-PF (2007)

JSA

7E 1480 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Fonn ~90-PF (2007) 48-0918408 •::.. ,~-· .•• Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9) NOT APPLICABLE 1a If the foundation has received a ruling or determination letter that

~t • is. ~ .p~1v~t~ • o~~ra.tm~ I foundation, and the ruhng is effective for 2007, enter the date of the ruhng

b Check box to indicate whether the foundation is a private operating foundation descnbed 1n section I I 4942(]){3) or I I 4942(])(5)

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

(e) Total Justed net income from Part (a) 2007 (b) 2006 (c) 2005 (d) 2004 I or the minimum investment retum from Part X for each year listed .......

b 85% of line 2a ..... c Qualily1ng d1stnbut1ons from Part

XII, tine 4 for each year listed

d Amounts 1nduded in line 2c not used directly for active conduct of exempt act1vihes • • • • •

e Quallfyuig d1stnbuhons made directly for actNB conduct of exempt act1V1hes Subtract line 2d from line 2c ......

3 Complete 3a, b, or c for the eltemat1ve test retied upon

a "Assets" altema!NB test - enter

( 1 ) Value of all assets ... (2) Value of assets qualifying

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

b "Endowment" altemallve test-

enter 2/3 of minimum invest-

men! retum shown 1n Part X. line 6 for each year listed ..

c "Support" altema!NB test - enter

(1) Total support other than gross investment incane (interest, dMdends, rents, payments on seaJnbes loans (section 512(a)(5)), or royalhes). • • • • •

(2) Support from general public and 5 or more exempt org amzations as provided 1n sectJon 4942 0)(3)(8)(111) • • • • • •

(3) Largest amount of sup-port from an exempt organ1zat.Jan .....

( 4) Gross investment income • ·~ ..... -... , .. ~upple~entary Information (Complete t~is part _only if the foundation 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).)

CHARLES G. KOCH 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.

NONE

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

Check here.,._ D 1f 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 md1v1duals or organizations under other cond1t1ons, complete items 2a, b, c, and d.

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

SEE STATEMENT 13 b The form m which applications should be submitted and information and materials they should include

SEE STATEMENT 15 c Any submission deadlines.

NONE d Any restrictions or hm 1tations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other

factors·

SEE STATEMENT 15 7E14~~ ooo Form 990-PF (2007)

16733H K932 11/17/2008 10:43: 30 V07-8.5 85646

Form 990-PF (2007) 4 8-0 918 4 0 8 1ifitJ,j Supplementary Information (continued) 3 Grants and Contributions Paid During the Year or Approved for Future Payment

Recipient If recipient 1s an 1ndMdual, Foundabon Purpose of grant or show any relationship to status of Amount Name and address (home or business) any foundation manager

rec1p1ent contnbubon or substsn~al contnbutor

a Paid during the year SEE STATEMENT 16 5, 994, 000.

Total. . . ~3a 5. 994. 000 . b Approved for future payment

SEE STATEMENT 16 295, 983.

Total . . . ~ 3b 295 983.

Form 990-PF (2007)

JSA 7E1491 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

JSA

Form 990-PF (2007) 48-0918408 . Analysis of Income-Producing Activities Enter gross amounts unless otherwise 1nd1cated. Unrelated business income Excluded b, section 512, 513, or 514

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

1 Program service revenue: Business code Amount Exdus,cn code Amount

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 14 3, 671 577. 4 Dividends and interest from secunt1es ... 14 4 L 321. 5 Net rental income or (loss) from real estate

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

b Not debt-financed property ...... 16 -3 536. 6 Net rental income or (loss) from personal property . 7 Other investment income ......... 8 Gain or (loss) from sales of assets other than inventory 18 602 818. 9 Net income or (loss) from special events , •

1 O Gross profit or (loss) from sales of inventory. 11 Other revenue: a

b

c d

e

12 Subtotal. Add columns (b), (d), and (e) . . . . 4, 312, 180 . 13 Total. Add line 12, columns (b), (d), and (e). •••••••••••••••••••••••••••••••••• 13 (See worksheet m lme 13 instructions on page 29 to verify calculat1ons.)

·~·.mJ:1 Relationship of Activities to the Accomplishment of Exempt Purposes

(e) Related or exemgt function incom f See page 28 of he mstruct1ons.)

4, 312, 180.

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

T the accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes). (See page 29 of the instructions )

NOT APPLICABLE

Form 990-PF (2007)

7E1492 2 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

1

2007 4 8 - 0 9 1 8 4 0 8 Page 1 3 Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations

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

501 (c) of the Code (other than section 501 (c)(3) organizations) or in section 527, relating to poht1cal organizations?

a Transfers from the reporting foundation to a noncharitable 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 fac1hties, equipment, or other assets

(4) Reimbursement arrangements. •

(5) Loans or loan guarantees • • • •

(6) Performance of services or membership or fundraising solicitations

c Sharing of fac1ht1es, equipment, mailing hsts, other assets, or paid employees

1a(1l

1al2l

1b(11

1b(21

1b(31

• 1bl41

1b(51

1bl61

1c

Yes No

x x

x x x x x x 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 (bl Amount involved (c) Name of nonchantable exempt organization (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 described in

section 501 (c) of the Code (other than section 501 (c)(3)) or in section 527? • • • • • • • • • • • • • • • • • • • • • • • • • D Yes Q No

b If "Y I th f II ched I es como1ete e o owina s ue. (a) Name of organization (b) Type of organization (c) Descnpt1on of relat1onsh1p

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

~ o/~~ I 1/-17-o!._ ~ TreqJ<J.c.e, a, Signature of officer or trustee Date Title .. a,

Date Preparer's SSN or PTIN ::c

Preparer's VA~r:;eUd ed Check1f D (See Signature on page 30 of the c: ~ >, 'f/,7 /~F self-employed~ instructions.) .21 ~ec "' - ca O signature • P00051392

: g-:: Firm's name (or yours if ~BKD, LLP EIN ~ 44-0160260 it :::, self-employed), address, 1551 N WATERFRONT PKWY, STE 300 and ZIP code WICHITA KS 67206-6601 Phoneno. 316-265-2811

Form 990-PF (2007)

JSA

7E1493 2.000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Schedule B (Form 990, 990-EZ, or 990-PF) Department of the Treasury Internal Revenue Service

Name of organization

Schedule of Contributors

Supplementary Information for line 1 of Form 990, 990-EZ, and 990-PF (see Instructions)

CHARLES G. KOCH CHARITABLE FOUNDATION

OMB No 1545-0047

~@07 Employer Identification number

48-0918408 Organization type (check one).

Filers of:

Form 990 or 990-EZ

Form 990-PF

Section:

D 501(c)( ) (enter number) organization

D 4947(a)(1) nonexempt charitable trust not treated as a private foundation

D 527 political organization

LI 501(c)(3) exempt private foundation

D 4947(a)(1) nonexempt charitable trust treated as a private foundation

D 501(c)(3) taxable private foundation

Check 1f your organization is covered by the General Rule or a Special Rule. (Note: Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule - see instructions)

General Rule •

GJ For organizations filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (1n money or property) from any one contributor. (Complete Parts I and II.)

Special Rules •

D For a section 501 (c)(3) organization filing Form 990, or Form 990-EZ, that met the 33113 % support test of the regulations under sections 509(a)(1 )/170(b)(1 )(A)(v1), and received from any one contributor, during the year, a contribution of the greater of $5,000 or 2% of the amount on line 1 of these forms. (Complete Parts I and II.)

D For a section 501 (c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from any one contnbutor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, sc1ent1fic, literary, or educational purposes, or the prevention of cruelty to children or animals. (Complete Parts I, II, and Ill.)

D For a section 501 (c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from any one contnbutor, during the year, some contributions for use exclusively for religious, charitable, etc., purposes, but these contnbutrons did not aggregate to more than $1,000. (If this box 1s checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the Parts unless the General Rule applies to this organization because 1t received nonexclusively religious, charitable, etc., contributions of $5,000 or more

during the year.) • • • • • • • • . . • • • . . • • • • . . . . . . • . • . . . . . . • . . • • • • • . . ..,.. $ ---------

Caution: Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule B (Form 990, 990-EZ, or 990-PF), but they must check the box in the heading of the,r Form 990, Form 990-EZ, or on /me 2 of the,r Form 990-PF, to certify that they do not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF)

For Paperwork Reduction Act Notice, see the Instructions for Form 990, Form 990-EZ, and Form 990..PF.

JSA

7E1251 1 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

Schedule B (Form 990, 990-EZ, or 990..PF) (2007)

Schedule B (Fam 990, 990-EZ, or 990-PF) (2007) Page of of Part I

Name of organization CHARLES G. KOCH CHARITABLE FOUNDATION Employer Identification number

1@11 Contributors (See Specific Instructions.)

(a) No.

__ 1_

(a) No.

---

(a) No.

---

(a) No.

---

(a) No.

---

(a) No.

---

JSA

7E1253 1 000

CHARLES

4111 E.

WICHITA,

(b) Name, address, and ZIP + 4

G. KOCH

37TH STREET N.

KS 67220






16733H K932 11/17/2008 10:43: 30 V07-8.5 85646

48-0918408

(c) (d) Aggregate contributions Type of contribution

Person § Payroll $ 80, 322, 976. Noncash

(Complete Part II 1f there 1s a noncash contribution.)


Person § Payroll $ Noncash







(Complete Part II 1fthere 1s a noncash contribution.)



(Complete Part II if there is a noncash contribution.)




Schedule B (Fonn 990, 9~ or 990-PFJ (2007)


FORM 990PF, PART I - LEGAL FEES

DESCRIPTION

LEGAL FEES-INVESTMENT MATTERS LEGAL FEES-GENERAL MATTERS

TOTALS

REVENUE AND

EXPENSES PER BOOKS

8, 34 7. 56,056.

64,403.

167338 K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

NET INVESTMENT

INCOME

8,347.

8,347.

ADJUSTED NET

INCOME

NONE

CHARITABLE PURPOSES

57,406.

57,406.

STATEMENT 1


FORM 990PF, PART I - ACCOUNTING FEES

DESCRIPTION

ACCOUNTING FEES INVESTMENT ACCTG SERVICES FEES TAX PREPARATION FEES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

106,905. 9,330. 3,910.

120,145.

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

NET ADJUSTED INVESTMENT NET

INCOME INCOME

9,330.

9,330. NONE

CHARITABLE PURPOSES

101,700.

3,910.

105,610.

STATEMENT 2


FORM 990PF, PART I - OTHER PROFESSIONAL FEES

DESCRIPTION

PROFESSIONAL CONSULTING FEES INVESTMENT MANAGEMENT FEES GRANT ADMINISTRATION FEES LAND MAINTENANCE FEES WEBSITE FEES OTHER PROFESSIONAL FEES-ADMIN RECRUITING FEES TEMP HELP CORPORATE FILING & AGENT FEES ADVERTISING FEES SPEAKER FEES ON-LINE SERVICE FEES KAP PARTICIPATION FEES EQUIPMENT/MAINTENANCE

TOTALS

REVENUE AND

EXPENSES PER BOOKS

144,353. 143,776.

55,645. 3, 7 94.

19,250. 12,025. 30,230. 29,094.

300. 15,400. 14,350.

8,635. 213,029.

2,379.

692,260.

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

NET INVESTMENT

INCOME

143,776.

3,794.

147,570.

CHARITABLE PURPOSES

144,353. NONE

55,645. NONE

18,500. 12,025. 30,230. 26,752.

300. 15,400. 14,350.

8,635. 197,545.

2,379.

526,114.

STATEMENT 3


FORM 990PF, PART I - TAXES

DESCRIPTION

FEDERAL EXCISE TAX REAL ESTATE TAXES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

83,015. 107.

83,122.

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

NET INVESTMENT

INCOME

107.

107.

STATEMENT 4


FORM 990PF, PART I - OTHER EXPENSES

DESCRIPTION

INSURANCE POSTAGE & DELIVERY BANK FEES SUPPLIES TELEPHONE MEMBERSHIP & DUES AWARDS/INCENTIVES WRITEDOWN OF RECEIVABLES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

15,193. 10,867.

4, 796. 37,985.

4,477. 5,704.

11,263. 177,500.

267,785.

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

CHARITABLE PURPOSES

15,193. 11,255.

4,796. 39,381.

5,141. 5,704.

11,263.

92,733.

STATEMENT 5


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

DESCRIPTION

FEDERAL & STATE GOV'T BONDS

US OBLIGATIONS TOTAL

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

ENDING BOOK VALUE

NONE

NONE

ENDING FMV

NONE

NONE

STATEMENT 6


FORM 990PF, PART II - OTHER INVESTMENTS

DESCRIPTION

ARDEN ENDOW ADVISERS, LTD SHRS ZAZOVE ASSOC CONVERTIBLE BONDS MESIROW ABSOLUTE RETURN FUND EXCELSIOR ABSOLUTE FUND TCW SR SEC FLOAT RATE LOAN FD THIRTEEN PARTNERS, LTD SHARES HIGHLAND COMMINGLED LOAN FUND MELLON CF GLOBAL ALPHA I EATON VANCE LOAN OP FUND

TOTALS

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

ENDING BOOK VALUE

5,000,000. 6,219,099.

10,193,867. 5,000,000. 5,000,000. 5,000,000.

10,000,000. 33,351,967. 20,000,000.

99,764,933.

ENDING FMV

6,844,629. 6,374,213.

12,127,393. 6,064,717. 5,530,915. 6,035,552.

10,058,564. 32,441,906. 19,920,000.

105,397,889.

STATEMENT 7

..

CHARLES G. KOCH CHARITABLE FOUNDATION 4 8-0918408

LAND, BUILDINGS, EQUIPMENT NOT HELD FOR INVESTMENT

==================================================

FIXED ASSET DETAIL ACCUMULATED DEPRECIATION DETAIL

METHOD/ BEGINNING ENDING BEGINNING ENDING ASSET DESCRIPTION CLASS BALANCE ADDITIONS DISPOSALS BALANCE BALANCE ADDITIONS DISPOSALS BALANCE

--------------------- ------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------OFFICE EQUIPMENT SL 1,307. 1, 307. 143. 261. 404.

OFFICE FURNITURE SL 3,878. 3, 878. 129. 259. 388.

OFFICE FURNITURE SL 525. 525. 23. 23.

BASE SORTER SL 523. 523. 52. 52.

TRAINING PP.OGRAM SL 1, 125. 1, 125. 113. 113.

PANAOOARD SL 1,452. 1, 452. 121. 121.

ADVENTURE PP.OGRAM SL 1, 490. 1, 4 90. 99. 99.

VIDEO EQUIPMENT SL 1, 069. 1, 069. 53. 53.

FOLDING TABLE SL 583. 583. 19. 19.

OFFICE DESK SL 503. 503. 17. 17.

LATERAL FILE SL 620. 620.

FIBER CABLE SL 7,308. 7, 308. 2, 810. 2,810.

VOICE DATA CABLES SL 921. 921. 251. 251.

MINIBLINDS SL 556. 556. 132. 132.

CYLINDER OOOR LOCK SL 580. 580. 110. 110.

CARPET SL 5, 500. 5, 500. 1,500. 1, 500.

ARCHITECH. SERVICE SL 7, 279. 7,279. 1,986. 1, 986.

CONSTRUCTION SL 41,022. 41,022. 11,190. 11, 190.

16733H K932 11/17 /2008 10:43:30 V07-8.5 85646 STATEMENT 8


ASSET DESCRIPTION

OOOR & FRAME

VOICE DATA CABLES

TOTALS

METHOD/ CLASS

SL

SL

BEGINNING BALANCE

5, 185.

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

LAND, BUILDINGS, EQUIPMENT NOT HELD FOR INVESTMENT

FIXED ASSET DETAIL

ADDITIONS DISPOSALS

2, 948.

3,888.

ENDING BALANCE

2, 948.

3, BBB.

83,077.

ACCUMULATED DEPRECIATION DETAIL

BEGINNING BALANCE

272.

ADDITIONS DISPOSALS

1,183.

STATEMENT 9

ENDING BALANCE

1,183.

20, 451.


FORM 990PF, PART II - OTHER ASSETS

DESCRIPTION

NOTES RECEIVABLE - PROGRAM RELATED INVESTMENTS

TOTALS

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

48-0918408

ENDING BOOK VALUE

177,500.

177,500.

ENDING FMV

177,500.

177,500.

STATEMENT 10

• CHAR'LES G. KOCH CHARITABLE FOUNDATION 48-0918408

FORM 990PF, PART VII-B, LINE SC-EXPENDITURE RESPONSIBILITY STATEMENT

GRANTEE' S NAME: SEE STATEMENT 17 GRANTEE'S ADDRESS: CITY, STATE & ZIP: GRANT DATE: GRANT AMOUNT: GRANT PURPOSE:

AMOUNT EXPENDED: ANY DIVERSION? NO DATES OF REPORTS: VERI FI CATI ON DATE: RESULTS OF VERIFICATION:

STATEMENT 11

16733H K932 11/17/2008 10:43: 30 V07-8.5 85646


EIN 48-0918408 SCHEDULE OF INFORMATION FOR 2007 FORM 990 PF

PART Vlll 1 Line 2 - Comj;!ensation of five highest-j;!aid emj;!lol£ees

(b) Title, and average hours per week

(a) Name and Address devoted to j;!Osition (cl Compensation

Logan Moore Foundation Administrator 150,000 1515 N Courthouse Rd. Suite 200 40 hours per week average Arlington, VA 22201

Chris Cardiff Program Officer for 153,356 (1) 1515 N Courthouse Rd. Suite 200 Market-Based Management Arlington. VA 22201 40 hours per week average

Matt Brown Program Officer for 149,548 (1) 1515 N Courthouse Rd, Suite 200 Academic Affairs Arlington, VA 22201 40 hours per week average

Claire Kittle Program Officer for 135,000 1515 N Courthouse Rd, Suite 200 Talent Development Arlington, VA 22201 40 hours per week average

Ryan Stowers Program Officer for 120,000 1515 N Courthouse Rd. Suite 200 Higher Education Arlington, VA 22201 40 hours per week average

TOTAL 707,904

NOTES

(1) Column C - Includes one-time taxable moving expense amount paid to employee

(2) Column D - Includes one-time nontaxable moving expense amount paid to employees

(3) Column E - Includes taxable employee parking amounts paid on behalf of employees.

(d) Contributions to employee benefit j;!lans

13,556

35,630 (2)

27,606 (2)

12,656

12,700

102, 148

..

STATEMENT12

(e) Expense account, other

allowances

2,898 (3)

2,592 (3)

2,898 (3)

2,880 (3)

2,880 (3)

14, 148

·cHARLES G. KOCH CHARITABLE FOUNDATION 48-0918408

FORM 990PF, PART XV - NAME, ADDRESS AND PHONE FOR APPLICATIONS

SEE STATEMENT 15

STATEMENT 13

16733H K932 11/17/2008 10:43: 30 V07-8. 5 85646

CHARLES G. KOCH CHARITABLE FOUNDATION EIN 48-0918408

SCHEDULE OF INFORMATION FOR 2007 FORM 990 PF

PART IX-A, - Summary of Direct Charitable Activities

CHARITABLE ACTIVITY DESCRIPTION:

KOCH ASSOCIATES PROGRAM:

During 2007 the Charles G. Koch Charitable Foundation sponsored more than 56 individuals to participate in the Koch Associate Program. 22 Washington, D.C. area charitable organizations and 3 charitable organizations outside of Washington, D.C. were partners in the program.

The Koch Associate Program was established to identify up-and-coming leaders and entrepreneurs interested in liberty and help them develop the knowledge, skills, and experience necessary for careers in the nonprofit sector, including careers with market-oriented think tanks, policy institutes, and other educational institutions.

For more information on this program, please visit the Foundation's website at: www.cgkfoundation.org

KOCH INTERNSHIP PROGRAM:

During 2007 the Charles G. Koch Charitable Foundation sponsored more than 27 individuals to participate in the Koch Internship Program.

The Charles G. Koch Charitable Foundation Internship Program was established to develop the next generation of liberty-minded leaders, educators, and entrepreneurs. Over the course of the program, Interns engage in research and educational activities while learning and applying Market-Based Management®

For more information on this program, please visit the Foundation's website at: www.cgkfoundation.org

STATEMENT14

I Expenses

1,983,237

300,343

.,



PART XV, LINE 20, INFORMATION REGARDING GRANTS - LIMITATIONS ON AWARDS STATEMENT 15

The Foundation primarily supports research and education programs that analyze the impact of free societies, in particular how they advance the well-being of mankind. Building on this knowledge, the Charles G. Koch Charitable Foundation fosters the partnership of scientists and practitioners in order to integrate theory and practice. By doing so, the Foundation strives to develop market-based tools that enable individuals, institutions and societies to strive and prosper.

The Charles G. Koch Charitable Foundation focuses on a select number of programs where it believes 1t is best positioned to support pos1t1ve social change. The Foundation encourages organizations seeking support to first familiarize themselves with those domains by examining the Foundation's Areas of Interest. In addition, the Foundation places several limitations on the requests it considers

1 The Foundation primarily makes grants to Section 501 (c)(3) public charities. The Charles G. Koch Charitable Foundation does not support for-profit corporations or individuals

2 The Foundation discourages grant proposals for capital construction, debt reduction, or general fundraising drives or events The Foundation does not make grants to support lobbying activities or candidates for political office The Foundation rarely funds endowments

Organizations seeking grants from the Foundation and which meet the aforementioned criteria should submit a short letter (no more than three pages) outlining their request. The letter should clearly and succinctly state:

1. Prospective grantee's mission and goals,

2 Specific project for which support 1s being sought;

3 Amount of funding requested;

4. Name, title, address, telephone number, and e-mail address of the primary contact person, and,

5 Current annual budget or audited financial statements

If applicable, please also include a list of other support (e.g , funding, in-kind contributions) secured for the project Because the Foundation only supports Section 501 (c)(3) public charities, 1t also requires that you submit verification from the IRS that your organization 1s exempt from federal income tax as a Section 501(c)(3) organization and is class1f1ed as a public charity under Section 509(a) of the Internal Revenue Code The Foundation kindly requests that no materials beyond what are described above be included. Please send all required materials to:

Other Contact Information Phone 703-875-1600 Fax: 703-875-1601 email @ cgkfoundation com

Grant Administrator Charles G. Koch Charitable Foundation 1515 N Courthouse Road, Second Floor

Arlington, VA 22201-2909



Part XV, Line 3a & b - Grants and Contributions Paid During the Year or Approved for Future Payment

II reclp1ant ss an lndlYidual, Foundation

Rec1p1ent shaw any relationship to status of Purpose of grant

any loundalJon manager rec1p1ent or contribution

Name and address (home or business) or substanllal conlributor

a Paid during the year:

Assoc1at1on of Private Enterprise 1n Education Public General Operating Support Grand Rapids, Ml

Atlas Economic Research Foundation Public General Operating Support Arlington, VA

Beloit College Public Education Programs Beloit.WI

Berry College Public Education Programs Mount Berry • GA

Bill of Rights Institute Public General Operating Support Arlington, VA

Buckeye lnsbtute tor Public Policy Public General Operating Support Columbus, OH

Center for Excellence in Education Public Educational and Research Vienna, VA Programs

Clemson University-Dept of Economics Public Educabonal Programs Clemson, SC

Commonwealth Foundation Public General Operating Support Harrisburg, PA

The Federalist Society Public General Operating Support Washington, DC

Flonda State Umvers1ty Public Educatlonal Programs Tallahassee, FL

Fund for American Studies Public General Operating Support Washington, DC

George Mason Umvers1ty Foundation Public Educational and Research Fairfax, VA Programs

Grove City College Public General Operating Support Grove City, PA

Hampden-Sydney College Public General Operating Support Hampden-Sydney, VA

Institute for Humane Studies Public General Operating Support Arlington, VA

James Madison Institute Public General Operating Support Tallahassee.FL

Massachusetts Institute of Technology Public Educabonal Programs Cambridge, MA

Mackinac Center for Public Policy Public General Operating Support Midland, Ml

Mercatus Center Public General Operating Support Arlington, VA Educabonal Programs

Montana State Public Educatlonal Programs Bozeman, MT

Philanthropy Roundtable Public General Operating Support Washington, DC

The Phillips Foundabon Pnvate General Operating Support Washington, DC

Rhodes College Public Educational Programs Memphis, TN

St Lawrence Umvers1ty Public Educabonal Programs Canton. NY

San Jose State Un1vers1ty Foundation Public Educatlonal Programs

STATEMENT 16

Amount

20,000

25,000

40,000

32,000

200,000

12,668

5,000

52,400

9,134

75,000

50,000

28,650

408,000

28,700

25,000

885,000

6,850

250,000

40,000

2,682,500

11,000

25,000

20,000

5,500

12,000

11,900



Part XV, Line 3a & b - Grants and Contributions Paid During the Year or Approved for Future Payment

II recipient is an lndMdual, Foundation

Rec1p1ent &how any relationship to status of Purpose of grant

any toundallon manager recipient or contribution

Name and address (home or business) or substantlal contributor

a Paid during the year: San Jose, CA

Santa Clara University Public Educational Programs Santa Clara, CA

Sm1thsoman lnsbtut1on Public General Operating Support Washington, DC

Suffolk Umvers1ty Public General Operating Support Syracuse, NY

Umvers1ty of Kansas School of Business Public General Operating Support Lawrence, KS

Utah State University Public Educabonal Programs Logan, UT

West V1rg1ma Umvers1ty Foundabon Public General Operating Support Morgantown, WV

Young America's Foundation Public General Operating Support Herndon, VA

Youth Entrepreneurs of Kansas Public General Operating Support W1ch1ta, KS

TOTAL GRANTS PAID TO ORGANIZATIONS

b Approved for future payment

Atlas Economic Research Foundation Public General Operating Support Ar1ington, VA

Buckeye lnsbtute for Pubhc Polley Pubhc General Operating Support Columbus, OH

Clemson University-Dept of Economics Pubhc Educational Programs Clemson, SC

Commonwealth Foundation Public General Operating Support Harrisburg, PA

James Madison Institute Pubhc General Operating Support Tallahassee, FL

Suffolk Umvers1ty Pubhc General Operating Support Syracuse, NY

Umvers1ty of Kansas School of Business Pubhc General Operating Support Lawrence. KS

TOTAL GRANTS APPROVED FOR FUTURE PAYMENT

STATEMENT 16

Amount

5,000

55,000

375,198

25,000

32,500

155,000

10,000

375,000

$ 5,994,000

50,000

20,665

52,400

24,199

26,483

97,236

25,000

$ 295,983


ATIACHMENT TO FORM 990-PF TO REPORT EXPENDITURE RESPONSIBILITY GRANT

For the Year Ended 12/31/07

PART VII-B, Question on Line 5c:

Expenditure Responsibility Statement for the Year 2007

Pursuant to IRC Regulation section 53.4945-5(d)(2), the CHARLES G. KOCH CHARITABLE FOUNDATION provides the following information:

(i) Name & Address of Grantee:

(ii) Date and Amount of Grant:

The Phillips Foundation One Massachusetts Avenue, NW, Suite 620 Washington, DC 20001

December 10, 2007 $20,000

(iii) Purpose of Grant: Support for the Journalism Fellowship Program run by the Phillips Foundation

(iv) Amounts expended: Report received from The Phillips Foundation shows the following expenditures: $4, 7 41 of the December 2007 grant was spent directly for providing grants through their Journalism Fellowship Program in 2007.

(v) Diversions: To the knowledge of this grantor foundation, no funds have been diverted to any activity other than the activity for which the grant was originally made.

(v1) Date of Reports: On November 17, 2008, The Phillips Foundation submitted a report of its expenditures in 2007 from the December 2007 grant.

(vi) Verification: The grantor has no reason to doubt the accuracy or reliability of the report from the grantee; therefore, no independent verification of the reports were made.

STATEMENT 17

... ( I t4,



PART VIII, Line 1 - Officers, Directors.Trustees, Managers, Etc.

(b) Title, and average (d) Contributions hours per week to employee

Ca) Name and Address devoted to position {cl Compensation benefit plans

Richard Fink President I Director 0 0 1515 N. Courthouse Rd, Suite 200 1 hour per week average Arlington, VA 22201

Kevin L. Gentry Vice President 0 0 655 15th Street, NW, Suite 445 Less than 1 hour per week Washington, DC 20005

Logan Moore Secretary 0 0 1515 N. Courthouse Rd, Suite 200 Less than 1 hour per week Arlington, VA 22201

Vonda Holliman Treasurer 0 0 P.O. Box 2256 Less than 1 hour per week W1ch1ta, KS 67201

Charles G. Koch Director 0 0 P 0. Box 2256 Less than 1 hour per week W1ch1ta, KS 67201

Elizabeth B Koch Director 0 0 PO Box 2256 Less than 1 hour per week W1ch1ta, KS 67201

Elizabeth Robinson Koch Director 0 0 P 0. Box 2256 Less than 1 hour per week W1ch1ta, KS 67201

Charles Chase Koch Director 0 0 P 0. Box 2256 Less than 1 hour per week W1ch1ta, KS 67201

TOTAL 0 0

STATEMENT18

(e) Expense account, other

allowances

0

0

0

0

0

0

0

0

0

FORM 990-PF - PART IV CAPITAL GAINS AND LOSSES FOR TAX ON INVESTMENT INCOME

p

Kind of Property Description br Date Date sold D acquired

Gross sale I Deprec1at1on Cost or

I FMV

I AdJ basis

I Excess of Gain

price less allowed/ other as of as of FMVover or eYnenses of sale

_ .. .. __ ,_ 1 ?/::11 /RQ 1 ?/::11 /Rn adi basis 11055\

ZAZOVE ASSOC! ATES, LLC ( ST) p VAR VAR PROPERTY TYPE: SECURITIES

1 207, 258. 1,041,143. 166, 115.

ZAZOVE ASSOCIATES, LLC ( LT) p VAR VAR PROPERTY TYPE: SECURITIES

1 780, 090. 1, 333, 567. 446,523.

MELLON BONDS ( ST) p VAR VAR PROPERTY TYPE: SECURITIES

~6590180. 56600000. -9, 820.

MELLON BONDS ( LT) p VAR VAR PROPERTY TYPE: SECURITIES

26650000. 26650000.

----------TOTAL GAIN( LOSS) . . . . . . . . . . .. . . . . .. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . 602, 818 .

----------

JSA 7E 1730 1 000

16733H K932 11/17/2008 10:43:30 V07-8.5 85646

charles g koch foundation 2007 990

Documents

income attach schedule

return of private foundation

d d en

schedule s

d b net investment

foundation ma

column d

b net rental income