charles koch foundation 480918408 2006 037b2fbbsearchable

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Return omrdyi{~'f~~~~·~t\9.p~li~l Il tl/ '; Form.990-PF or Section 4947(a)(1) Nonexempt Charitable Trust

Treated as a Private Foundation

OMB No 1545-0052

~©06

';;;;; ~ a:, IN

~ z 0 ll.l z ~ ()

Departmenl of the Treasury Internal Revenue Service Note: The foundation ma be able to use a co of this return to sat1sf state re ortm re wrements

For calendar year 2006, or tax year beginning , 2006, and ending

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

Use the IRS label.

Name of foundation

CHARLES G. KOCH CHARITABLE FOUNDATION

A Employer 1dent1ficatron number

48-0918408 Otherwise,

print Number and street (or PO box number 1f ma1l 1s not delivered to street address) Room/suite B Telephone number (see page 11 of

the instructions)

or type. See Specific Instructions.

P.O. BOX 2256 City or town, state. and ZIP code

WICHITA KS 67201-2256

H Check type of organization lxJ Section 501([email protected] private foundation

( 316 l 828-5552 C II exempllon apphcallon ,s ~ tJ

pending, check here • • • • • • ...,....

D 1 Foreign orgarnzat1ons, check here

2 Foreign orgarnzat1ons meeting the 85% lest. check here and attach computation • • • • • • • • n Secllon 4947(a)(1) nonexemot charitable trust I I Other taxable private foundation

LJ I u I E If pnvate foundation status was terrrnnated D

I Fair market value of all assets at end J Accounting method Cash L...XJ Accrual under sec11on 507(b)( 1 )(A). check here ~

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

16) ~ $ 114 o 9 9 2 2 6 . (Part I, column (d) must be on cash basts.)

l::.F.Ti•• Analysis of Revenue and Expenses (The total of amounts m columns (b}, (c}, and (d) may not necessanly equal the amounts m column (a) (see page 11 of the mstructions) )

a, :::, c: a, > a, a:

1

2

3

Contnbut1onsofts, grants etc received (attach schedule) •

Ch ..... 11 the foundation ,s not required to

eek ....- attach Sch B

Interest on savings and temporary cash investments

4 D1v1dends and interest from secunt1es

5 a Gross rents . . • . . . . . • . . • • • • • •

6a b

7

8

Net gain or (loss) from sale of assets not on lone 10 Gross sales price for all assets on lone 6a 1 2 , 2 6 4 , 2 6 8 .

Capital gain net income (from Part IV, line 2)

Net short-term capital gain

9 Income mod1ficalions · •

(a) Revenue and expenses per

books

40 021 911.

1 808 260.

46 580.

243.

1.715.

(b) Net investment income

1 808.260.

46 580.

243.

1 715.

If the foundation IS 1n a 6Q.monlh len11inat1on n under section 507(b)( 1 )(B), check here • ~

(c) AdJusted net income

(d) Disbursements for chantable

purposes (cash basis only)

Nn\f 2 ij lUUf

10 a Gross sales less returns I and allowances • • • • • >----------+----------+----------+---------0----------

b Less Cost of goods sold • l~--------+----------+----------t---------1---------c Gross profit or (loss) (attach schedule)

11 Other income (attach schedule) ... 17 997. 17 997. STMT 1

12 Total. Add lines 1 throuah 11 .... 41 896 706. 1 856 798. 17.997.

13 Compensation of officers, directors, trustees, etc 139 719. 139 719.

14 Other employee salaries and wages ... 806 004. 806 004. IJI 15 Pension plans, employee benefits 169 276. a, ... 170 921. IJI c: 16 a Legal fees (attach schedule) . . . S.TJ'-1:r . 4 35 111. a, 18 493. NONE 17,997 . c. b Accounting fees (attach schedule) S.T.M:r. ~ 49 237. >< w

190 310. a, c Other professional fees (attach schecfiM!T • 4

50 732.

193 891.

8 385.

62 017.

NONE

> Interest ...•••.•••••••••.• ~ 17

nl .. 18 Taxes (attach schedule) (see page 14 of the instructions)*• 35 840. -.!!.! 114.

c: 19 Deprec1at1on (attach schedule) and depletion 272. ·e Occupancy ••••••••• (/) "Cl 20 ..

<(

"Cl 21 Travel, conferences, and meetings 165 206.

c: 22 Printing and publications 33 8 94. nl .. . . Cl 23 Other expenses (attach schedule) S.TMl'. 6 65 533. c: ~

~ 24 Total operating and administrative expenses. a,

Add Imes 13 through 23 1 690 402. c. ....... . . . 0

25 Contnbullons, gifts, grants paid 6 699 802. .... . . . 26 Total expenses and disbursements Add lines 24 and 25 8 390 204.

27 Subtract line 26 from hne 12

a Excess of revenue over expenses and disbursements • • 33 506 502.

b Net investment income (1f negative, enter -0-)

c Adjusted net income (1f neoat1ve, enter -0-).

For Privacy Act and Paperwork Reduction Act Notice, see the instructions. JSA 6E14103000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

160.725.

34 678.

63.743.

70.516. 17 997. 1 638 906.

6 637 302.

70,516. 17 997. 8 276 208.

1 786 282.

-0-->*STMT 5 \] Form 990-PF (2006)

Form 99aPF 120061 ' 48-0918408 Paae 2

lilmlll Ba1ance Sheets Attached schedules and amounts 1n lhe Beginning of year End or year description column should be for end-of-year

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

1 Cash - non-interest-bearing . NONE 2, 84 4. 2 844. 2 Savings and temporary cash investments 30 995 569. 38 112 711. 38 112.711. 3 Accounts receivable ~ ________________ 66L056.

Less allowance for doubtful accounts ~ 86 007. 66 056. 66 056. -------------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 1nstruct1ons)

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

Less· allowance for doubtful accounts ~ -------------J!l

8 Inventories for sale or use .. Cl) 9 Prepaid expenses and deferred charges • 2 438. 3 370. 3 370. II) II)

10 a lnveslments - US and state government obligations (attach schedule) *; 12,500 000. 33 800 000. 34 030.764. < b Investments - corporate stock (attach schedule)

c Investments - corporate bonds (attach schedule) . 11 Investments - land, buildings, ~ ________ 3L377L694. and equipment basis

Less accumulated deprec1at1on ~ 3 377 694. 3 377 694. 6 530.000. (attach schedule) -------------------12 Investments - mortgage loans . . .. 13 Investments - other (attach schedule) .. :31'~1'. . 8. 25 471 589 . 30.551 660. 34 993.568. 14 Land, bu1ld1ngs, and

~ _____________ 5Ll85. STMT 9 equipment basis Less accumulated depreciation ~ 2 7 2 (attach schedule) - - - - - - - - - - - - - - - - - - - -'- NONE 4 913. 4 913.

15 Other assets (descnbe ~ _____________ STMT_lO) 355.000. 355 000. 355 000. 16 Total assets (to be completed by all filers - see page 17 of

the 1nstruct1ons Also, see page 1, ,tern I) 72,788 297. 106 274 248. 114 099.226. 17 Accounts payable and accrued expenses 84 016. 30,180. 18 Grants payable 25 000. 50.000.

II) 19 Deferred revenue Cl)

~ 20 Loans from officers. directors, trustees, and other d1squal1fied persons .c 21 Mortgages and other notes payable (attach schedule) C1I ::.i 22 Other hab1ht1es (descnbe ~ ___________________ )

23 Total liabilities (add lines 17 through 22) 109 016. 80 180. Organizations that follow SFAS 117, check here ~w and complete lines 24 through 26 and lines 30 and 31.

II) 24 Unrestricted 72 679 281. 106.194 068. Cl) u c: 25 Temporarily restricted C1I -;;; 26 Permanently restncted m "O Organizations that do not follow SFAS 117, c: ~o :::, check here and complete lines 27 through 31. u.. .. 27 Capital stock, trust pnnc,pal, or current funds 0 . . .. J!l 28 Pa1d-m or capital surplus. or land, bldg , and equipment fund Cl) II) 29 Retained earnings, accumulated income. endowment, or other funds II)

~ 30 Total net assets or fund balances (see page 18 of the Cl)

z instructions) • 72, 679, 281. 106, 194 068. 31 Total liab11it1es and net assets/fund balances (see page 18 of

the instructions) 72 788,297. 106,274 248. •: ~r-•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), line 30 (must agree with

end-of-year figure reported on prior year's return) 1 72 679.281. 2 Enter amount from Part I, line 27a 2 33 506.502. . . .. 3 Other increases not included in line 2 (1tem1ze) ~ SEE STATEMENT 11 3 8 285. -------------------------------------4 Add lines 1, 2, and 3 4 106 194 068. .. 5 Decreases not included in line 2 (1tem1ze) ~ 5 ----------------------------------------6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column (b), line 30 .. 6 106, 194 068. JSA **STMT 7 Form 990-PF (2006) 6E1420 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

r Form 990-PF (2006) 48-0ql8408 ·~ Caoital Gains and Losses for Tax on Investment Income

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

2-story bnck warehouse, or common stock, 200 shs MLC Co ) P-Purchase (mo . day, yr) (mo. day, yr) D-Donat,on

1a SEE PART IV SCHEDULE

b

c d

e

(e) Gross sales pnce (f) Deprec1at1on 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 onlv for assets showing gain 1n column (h) and owned by the foundation on 12/31/69 (I) Gains (Col (h) gain minus

(i) FM V as of 12/31/69 U) 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

a

b

c d

e

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

3 Net short-term capital gain or (loss) as defined 1n sections 1222(5) and (6)

If gain, also enter in Part I, line 8, column (c) (see pages 13 and 18 of the instructions). } If (loss), enter -0- in Part I, line 8 ..•.•.•...................... .... 3

I:.. 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? If "Yes," the foundation does not qualify under section 4940(e) Do not complete this part

Losses (from col (h))

1.715.

O Yes[x] No

1 Enter the appropriate amount in each column for each year, see page 19 of the instructions before making any entries (a)

(b) (c) (d) Base perrod years Calendar year Drstrrbutron ratro

(or tax year begrnnrng rn) Ad1usted quahfyrng drstnbutrons Net value of noncharrtable-use assets (col (b) drvrded by col (c))

2005 4 646 986. 47 843 504. 0.09712888086 2004 2 985,334. 33 959,784. 0.08790792073 2003 3 283 430. 25 930 4 98. 0.12662425535 2002 3 313 808. 28 571,232. 0.11598407797 2001 4 296 259. 27 673,813. 0.15524636956

2 Total of line 1, column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 2 0.58289150447 . . . . . 3 Average d1stribut1on ratio for the 5-year base period - d1v1de the total on line 2 by 5, or by

the number of years the foundation has been 1n existence 1f less than 5 years . . . . . .... 3 0.11657830089

4 Enter the net value of noncharitable-use assets for 2006 from Part X, line 5 4 76 656 070 . . . . . . . . . . .

5 Multiply line 4 by line 3 5 8 936 4 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Enter 1% of net investment income (1% of Part I, line 27b) . . . . . . . . . . . . . . . . . . . 6 17.863 .

7 Add Imes 5 and 6 7 8 954 297. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . .

8 Enter qualifying d1stribut1ons from Part XII, line 4 ................... . . . . . . 8 8 276 208. If hne 8 rs equal to or greater than hne 7, check the box rn Part VI, lrne 1b, and complete that part usrng a 1% tax rate See the Part VI rnstructrons on page 19

ii~430 3 000 Form 990-PF (2006)

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

..,, Form 990l°'F (2006) 48-0918408 Page4

•::r.1.iill•J• ~xcise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948 - see page 19 of the instructions)

2 Tax under secbon 511 (domestic sect1m 4947(a)(1) trusts and taxable foundations only Others enter -0-) 2

3 Add hnes 1 and 2 3

4 Subtltle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-) 4

5 Tax based on investment income. Subtract line 4 from hne 3 If zero or less. enter -0- 5

G Credits/Payments

a 2006 estimated tax payments and 2005 overpayment credited to 2006 Ga 36 438.

7

8

b Exempt foreign orgarnzabons-tax withheld at source

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

d Backup w1thhold1ng erroneously withheld

Total credits and payments Add Imes 6a through 6d

Enter any penalty for underpayment of estimated tax Check here

9 Tax due. If the total of hnes 5 and 8 1s more than line 7, enter amount owed

Gb NONE Ge NONE Gd

7

8

~ 9

35 726. NONE

35 726.

36,438.

1 o Overpayment. If hne 7 1s more than the total of hnes 5 and 8, enter the amount overpaid ~ ,__1_0--+ _________ 7_1_2_. 11 Enter the amount of hne 10 to be Credited to 2007 estimated tax ~ 712. Refunded ~ 11

1::r.r.••~I"'·• Statements Regarding Activities 1a During the tax year, did the foundation attempt to influence any national, state, or local leg1slat1on or did 11

part1c1pate or intervene m any poht1cal campaign? ••

b Did 1t spend more than $100 during the year (either directly or indirectly) for poht1cal purposes (see page 20

of the mstruct,ons for defirnt1on )? • •

If the answer is "Yes" to 1a or 1b, attach a detailed descnpt1on of the activities and copies of any matenals

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 political expenditures (secbon 4955) imposed during the year

(1) On the foundation ~ $ (2) On foundation managers ~ $ __________ _

e Enter the reimbursement (1f any) paid by the organization during the year for poht1cal expenditure tax imposed on

foundation managers ~ $ ___________ _

2 Has the foundation engaged m any actlv1t1es that have not previously been reported to the IRS?

If "Yes," attach a detailed descnpt1on of the act1v1t1es

3 Has the foundation made any changes, not previously reported to the IRS, 1n ,ts governing instrument, articles of

incorporation, or bylaws, or other s1m1lar instruments? If "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 on Form 990-T for this year?

5 Was there a hqu1dat1on, term1nat1on, d1ssolut1on, or substantial contraction during the year?

If "Yes," attach the statement reqwred by General Instruction T

G Are the requirements of secbon 508(e) (relating to secbons 4941 through 4945) sabslied either

• By language in the governing instrument, or

• By state leg1slat1on that effectively amends the governing instrument so that no mandatory d1recbons that

conflict with the state law remain in the governing instrument?

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

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

Yes No

1a X

1b X

1c X

2 x

3 x 4a x 4b N/A

5 x

G x 7 x

1nstruct1ons) ~ DC, KS, ___________________________ ----------------------------------b If the answer ,s "Yes" to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General

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

9 Is the foundation claiming status as a pnvate operating foundation within the meaning of secbon 4942(J)(3)

or 4942(J)(5) for calendar year 2006 or the taxable year beginning ,n 2006 (see instructions for Part XIV on

page 28)? If "Yes," complete Part XIV

10 Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule fisting the,r names and addresses

JSA

6E 1440 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

Bb x

9 x

10 x Form 990-PF (2006)

,. Form990jPF.(2•0r0~6)'--~~~~~~~-~~~~~~~--:-~~~~~~~~~~~~---'4~8~--0=-=-9~1~8~4~0=-=8~~~~~~~~~~~~P-a~ge_5_ Statements Regarding Activities Continued

JSA

11a '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 1nstrucllons) • . . . . . . . . . . .

b If "Yes," did the foundation have a binding written contract 1n effect on August 17, 2006. covenng the interest,

11a x

rents. royalties. and annuities described m the attachment for line 11a? . . . . . . . . . . . . . . . . . . 11b N A

12 Did the foundation acquire a direct or 1nd1rect interest many applicable insurance contract? . • . . . . . . 12 X

13 Did the foundation comply with the public inspection requirements for its annual returns and exemption applicatlon? 13 X Website address .... _____ WWW. CGKfOUNDATION. ORG __________________ ------- ________________ ------ __

14 The books are 1n care of .,.. __ '{_Q[:!Q~ _liQ1=.1=.11".1)1t'i ____________________ Telephone no .... ____ J ].!§ Hif ~ = 222f _____ _ Locatedat .... 4111 E._ 37TH ST._ N._ WICHITA..1_ KS ______________________ ZIP+4 .... 67220 -----------i--i-

15 Section 4947(a)(1) nonexempt charitable trusts filing Fonn 990-F 1n lieu of Form 1041 - Check here • . . • . • • • • • NI A · · · · · · .... L_J

and enter the amount of tax-exempt interest received or accrues during the year . . . . . . . . . . . • • . • • • • .... I 1s I 1::r.11a•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 m the sale or exchange, or leasing of property with a disqualified person?

(2) Borrow money from, lend money lo, or otherwise extend credit to (or accept 1t 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"

0Yes

§y" Yes

Yes

0Yes

[x]No

§"• No

No

[x]No

11 the foundation agreed to make a grant to or to employ the official for a period

after termmat1on of government service, 11 termmat1ng within 90 days ) . • • • • • • • • • • • • D Yes CJ No

b If any answer 1s "Yes" to 1 a( 1 }-(6 ), did any of the acts fail to qualify under the excepbons descnbed m Regulations

secbon 53 4941(d}-3 or ma current notice regarding disaster assistance (see page 22 of the mstrucllons)?

Organizallons relying on a current notice regarding disaster assistance check here

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

that were not corrected before the first day of the tax year beginning 1n 2006? • • • • • • • • • • • •

2 Taxes on failure to d1stnbute income (secbon 4942) (does not apply for years the foundation was a private

operating foundation defined m section 4942(1)(3) or 4942(1)(5))

a At the end of tax year 2006, did the foundation have any und1stnbuted income (Imes 6d D and 6e, Part XIII) for tax year(s) beginning before 2006? • . . • . • . . • . . . • • • • • • • • • • Yes

lf"Yes,"llsttheyears .... ---------- ·--------- ·--------- ·---------b Are there any years listed m 2a for which the foundation 1s not applying the prov1s1ons 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 prov1s1ons of section 4942(a)(2) are being applied to any of the years listed m 2a, list the years here

.... ---------- ·--------- ·--------- ·---------Ja Did the foundation hold more than a 2% direct or indirect interest 1n any business

enterprise at any time during the year? • • • • • • • • • • . • • • • • • • • .

b If "Yes," did 1t have excess business holdings m 2006 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)

0Yes

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

,r the foundation had excess business holdings in 2006)

[x)No

[x]No

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

b Did the foundation make any investment 1n a prior year (but after December 31, 1969) that could Jeopardize its charitable purpose that had not been removed from Jeopardy before the first day of the tax year beginning 1n 2006? . . . . . . • . • • •

Yes No

1b x

1c x

2b N/A

lb N/A

4a x

4b x Form 990-PF (2006)

6E1450 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

,, Form 990,PF (2006) 48-0918408 Page6

JSA

1=,,r.•·~11!1:• Statements Regarding Activities for Which Form 4720 May 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 leg1slat1on (section 4945(e))?

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

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

(3) Provide a grant to an 1nd1v1dual for travel. study, or other s1m1lar purposes? .....

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

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

(5) Provide for any purpose other than rehg1ous, charitable, scientific. literary. or

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

Oves

Oves Oves

Qves

Oves

[i!No

[x]No [x]No

0No

[i!No 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 in a current notice regarding disaster assistance (see page 23 of the instructions)?

Organiza!Jons relying on a current notice regarding disaster assistance check here ~· d . . . . 1-s'--'-b--+----+--'x~

c If the answer 1s "Yes" to ques!Jon 5a(4 ), does the foundation claim exemption from the

tax because 1t maintained expenditure respons1b1l1ty for the grant? ? ~E; .S.Tf.TE;ME.NJ'. ~ 2. If "Yes," attach the statement reqwred by Regulaflons sectJon 53 4945-S(d)

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

premiums on a personal benefit contract? . • • . • • • • . • • • • • • . • • • • • • • • • • • • • b Did the foundation, during the year. pay premiums, direcUy or mdirecUy, on a personal benefit contract?

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

7 a At any time during the tax year, was the foundation a party to a proh1b1ted tax shelter transaction?

Qves 0No

Oves [i!No Gb x

D Yes [i] No b If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? • . . . . • . . • . • . • 7b N I A

•::.,.; 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). (b) Title, and average (c) Compensation (d) Conlnbut,ons lo (e) Expense account,

(a) Name and address • hours per week (If not paid, enter employee benefit plans other allowances devoted to oos1t1on -0·1 and deferred compensation

SEE ATTACHMENT B ------------------- _ 139 719. 8 715. 925.

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

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

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

2 Compensation of five highest-paid employees (other than those included on line 1 - see page 24 of the instructions). If none, enter "NONE."

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

SEE STATEMENT 13

Total number of other employees paid over $50,000

(b) Title and average hours per week

devoted to position (c) Compensation

312 829.

(d) Contnbut1ons to employee benefit

plans and deferred compensation

28 989.

(e) Expense account, other allowances

4 818.

. ... -~ I NONE

Form 990-PF (2006)

6Et460 4 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

, Form990y.°F(2006) 48-0918408

JSA

. Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors Continued

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 service (c) Compensation

KOCH BUSINESS_ HOLDINGSJ_ LLC -----------------------------WICHITA KS ACCNTG & LEGAL SRVC 89 503.

Total number of others rece1v1na over $50,000 for professional services ....................... -~I NONE

1:fCif:Q Summary of Direct Charitable Activities

List the foundation's four largest direct charitable act1v1t1es during the tax year Include relevant statistical information such as the number of organizations and other beneficiaries served, conferences convened. research papers produced etc

1_SEE_ATTACHMENT_D _________________________________________________________ _

2

3

4

l:.F.T••~ .. =• Summary of Program-Related Investments (see page 24 of the instructions) Descnbe the two largest program-related investments made up by the foundation during the tax year on lines 1 and 2

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

2

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

3_NONE _____________________________________________________________________ _

Total. Add lines 1 throuah 3 . . . . . . • . . • . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . •. ~

Expenses

Amount

Form 990-PF (2006)

6E1465 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 8564 6

,. Form990-PF(2006) 48-0918408

Ufftf:j · Minimum Investment Return (All domestic foundations must complete this part Foreign foundations, see page 25 of the instructions )

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

a Average monthly fair market value of securities 1a .. . . . . . . . . . b Average of monthly cash balances . . . . . . . 1b ..... . . . . . . c Fair market value of all other assets (see page 25 of the instructions) 1c

d Total (add lines 1a, b, and c) ....... 1d ............... e Reduction claimed for blockage or other factors reported on lines 1a and

1c (attach detailed explanation) ..................... I 1e I 2 Acqu1s1t1on indebtedness applicable to line 1 assets 2 ................... 3 Subtract hne 2 from hne 1d 3 . . . . . . . . . . . . .......................... . . 4 Cash deemed held for charitable act1v1t1es. Enter 1 1/2 % of hne 3 (for greater amount, see page 26

of the 1nstruct1ons) 4 .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Net value of noncharitable-use assets. Subtract hne 4 from line 3 Enter here and on Part V, hne 4 5 .. 6 Minimum investment return. Enter 5% of hne 5 ........................... . . 6

•::r.•····· Distributable Amount (see page 26 of the instructions) (Section 4942(J)(3) and (J)(5) private operating foundations and certain foreign organizations check here ~ D and do not complete this part )

1 Minimum investment return from Part X, line 6 1

2a Tax on investment income for 2006 from Part VI, line 5 : j 2a. j 35.726. b Income tax for 2006 (This does not include the tax from Part VI ) I 2b I c Add Imes 2a and 2b 2c ..

3 Distributable amount before adjustments Subtract line 2c from line 1 3 4 Recoveries of amounts treated as qualifying d1stnbut1ons ... 4 5 Add Imes 3 and 4 5 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

1:.ffiji31i Qualifying Distributions(see page 26 of the instructions)

1 Amounts paid (including adm1rnstrat1ve expenses) to accomplish charitable, etc, purposes a Expenses, contributions, gifts, etc - total from Part I, column (d), line 26 1a .......... b Program-related investments - total from Part IX-B 1b . . . . . . . . . . . . ..........

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

3 Amounts set aside for spec1f1c charitable projects that satisfy the a Su1tab1hty test (prior IRS approval required) Ja . . . . . . . . . . . . . . . . . . . . . . . . . .. b Cash d1stribut1on test (attach the required schedule) Jb . . . . . . ..............

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

income Enter 1 % of Part I, line 27b (see page 27 of the 1nstruct1ons) 5

6 Adjusted qualifying distributions. Subtract line 5 from line 4 6 ...

Page8

64 759 738.

6 716 183.

6 347 500. 77 823 421.

NONE 77 823 421.

1 167 351. 76 656 070.

3 832 804.

3.832 804.

35.726.

3 797 078.

3 797 078.

3 7 97 078.

8 276.208. NONE

NONE

NONE NONE

8 276 208.

NIA 8 276 208.

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

Form 990-PF (2006)

JSA 6E1470 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408 Page9

1ifl£Jjji Undistributed Income (see page 27 of the instruct1ons)

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

1 D1stnbutable amount for 2006 from Part XI. Corpus Years pnor to 2005 2005 2006

line 7 .................... 3 797.078. 2 Und1stnbuted income 1f any as of the end of 2005

a Enter amount for 2005 only ......... b Total for prior years NONE

3 Excess d1stnbulions carryover, 1f any, to 2006

a From 2001 2 919.590. b From 2002 1 893 383. c From 2003 1 991 823. d From 2004 1 297 997. e From 2005 2 267 221. f Total of Imes 3a through e . . . . . . . . ... 10 370 014.

4 Qualifying d1stnbut1ons for 2006 from Part

XII. line 4 ..... $ 8 276.208. a Applied to 2005. but not more than line 2a ... b Applied to und1stnbuted income of pnor years

(Election required • see page 27 of the instructions) .. c Treated as d1stnbulions out of corpus (Eleclion

required - see page 27 of the 1nstruct1ons)

d Applied to 2006 d1stnbutable amount 3 7 97 078. e Remaining amount distributed out of corpus 4 479 130.

5 Excess d1stnbut1ons carryover applied to 2006 (If an amount appears m column (d), the same amount must be shown m column (a) )

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

a Corpus Add lines 3f, 4c, and 4e Subtract line 5 14 849.144.

b Pnor years' und1stnbuted income Subtract line 4b from line 2b NONE . . . . . . . . .....

c Enter the amount of pnor years' und1stnbuted income for which a nolice of deficiency has been issued, or on which the secbon 4942(a) tax has been previously assessed • • • • • . . .

d Subtract line 6c from line 6b 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 ..............

f Undistributed income for 2006 Subtract Imes 4d and 5 from line 1 This amount must be d1stnbuted m 2007 .......... . . .

7 Amounts treated as d1stnbut1ons out of corpus to satisfy requirements imposed by secbon 170(b)(1 )(E) or 4942(g)(3) (see page 28 of the instructions) .............

8 Excess d1stnbut1ons carryover from 2001 not applied on line 5 or line 7 (see page 28 of

2 919 590. the 1nstruclions) ............... 9 Excess distributions carryover to 2007.

Subtract Imes 7 and 8 from line 6a 11. 92 9 554. . . . . .. 0 Analysis of line 9

a Excess from 2002 1 893 383. b Excess from 2003 1 991 823. c Excess from 2004 1 297 997. d Excess from 2005 2 267 221. e Excess from 2006 4 479 130.

Form 990-PF (2006)

JSA

6E1480 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

• Form 990-f'F (2006) ' 48-0918408

I ::.F.r. •·u, • private Operating Foundations(see page 28 of the instructions and Part VII-A, question 9) NOT APPLICABLE 1 a It the foundation has received a ruling or determination letter that 11 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 1s a private operating foundation descnbed in section I 4942(J)(3) or I I 4942(J)(5)

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

(e) Total adJusted net income from (a) 2006 (b)2005 (c) 2004 (d) 2003 Part I or the m1rnmum investment return from Part X for each year hsted

b 65% of line 2a

c Ouallfymg d1stnbut1ons from Part

XII hne 4 for each year hsled

d Amounts included rn llne 2c not

used directly for active conduct

of exempt act1v1tres •

e Qual1fy1ng d1stnbut1ons made directly for active conducl of exempl act1v1t1es Subtract line 2d from hne 2c • . .

3 Complete 3a, b, or c for the allemat1ve test relied upon

a "Assets• alternative test - enter

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

under section 4942())(3)(6)(1).

b "Endowment" allemat1ve test-enter 213 of minimum invest-

ment return shown m Part X

hne 6 for each year llsled

c "Support" alternative test - enter

(1) Total support other than gross investment income (interest dividends, rents, payments on secunt1es loans (section 512(a)(5)) or royalties)

(2) Support from general public and 5 or more exempt orgarnzauons as provided in section 4942 0)(3)(6)(111) •.. . .

(3) Larges I amount of sup-port from an exempt organ1zat1on

(4) Gross rnvestment income .

• :.f:lli,. .. , .... Supplementary Information (Complete this part only if the 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 1f 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 .,. 0 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 ind1v1duals or organizations under other cond1t1ons, complete items 2a, b, c, and d

a The name, address, and telephone number of the person to whom appl1cat1ons should be addressed

SEE STATEMENT 14 b The form 1n which applications should be submitted and information and materials they should include

SEE ATTACHMENT E c Any subm1ss1on deadlines

NONE d Any restrictions or hm1tat1ons on awards, such as by geographical areas, charitable fields, kinds of inst1tut1ons, or other

factors

SEE ATTACHMENT E JSA 6E1490 3 000 Form 990-PF (2006)

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

Form 990-PF (2006) 4 8- O 918 4 O 8 1:1ffif!\i . Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment Rec1p1ent If reap1ent is an 1nd1V1dual Foundation Purpose of grant or show any re\at1onsh1p to status of Amount

Name and address (home or business) any foundation manager rec1p1ent contribution

or substantial contnbutor

a Paid dunng the year

SEE ATTACHMENT A 6,674,802.

Total IJI,, 3a 6 674.802. b Approved for future payment

SEE ATTACHMENT A 50,000.

Total IJI,, 3b 50 000. Form 990-PF (2006)

JSA 6E1491 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

JSA

Form 990-PF (2006) I:,.:, •• _., .. ,..,. Analysis of Income-Producing Activities Enter gross amounts unless otherwise 1nd1cated Unrelated business income

(a)

1 Program service revenue Busrness Code

a PROG. REL. INVSTMT

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 D1v1dends and interest from secunt1es . . .. 5 Net rental income or (loss) from real estate

a Debt-financed property ....... b Not debt-financed property ....

6 Net rental ,ncome or (loss) from personal property

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

9 Net income or (loss) from special events .. 10 Gross profit or (loss) from sales of inventory .

11 Other revenue a b

c d

e

12 Subtotal Add columns (b), (d), and (e) .. 13 Total. Add hne 12, columns (b), (d), and (e) ••.•.••••••• (See worksheet in hne 13 instructions on page 29 to venfy calculations)

(b) Amount

48-0918408

Excluded b1 section 512, 513, or 514

(c) (d) Excius1on code Amount

14 1 808 260.

14 46 580.

16 -3 888.

18 1 715.

1 852 667.

13

•!.J:'t•• ... ,f.lP :• Relationship of Activities to the Accomplishment of Exempt Purposes

(e) Related or exempt function income f:f ee page 29 of t e instructions )

17 997.

17 997.

1 870 664.

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

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

lA INCOME F'ROM LOAN MADE F'OR PURPOSE OF' PRODUCING AN

EDUCATIONAL IMAX F'ILM

Form 990-PF (2006)

6E1492 3000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

JSA

1

a

b

c

48-0918408

Information Regarding Transfers To and Transactions and Relationships With Exempt Organizations

Did the organization directly or indirectly engage in any of the following with any other orgarnzabon descnbed 1n section

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

Transfers from the reporting foundation to a nonchantable exempt organization of

(1) Cash.

(2) Other assets

Other transactions

(1) Sales of assets to a nonchantable exempt organization

(2) Purchases of assets from a nonchantable exempt organization

(3) Rental of fac11it1es, equipment. or other assets

(4) Reimbursement arrangements

(5) Loans or loan guarantees

(6) Performance of services or membership or fundra1sing sohc1tat1ons

Sharing of fac1ht1es, equipment, ma1hng hsts, other assets, or paid employees

Noncharitable

Yes No

1a(1) x 1al21 x

1b(1) x 1b(2) x 1b(31 x 1b(4) x 1b(5) x 1b(6) x

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

other assets, or services given by the reporting foundation If the foundation received less than fair market value 1n 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 organization (d) Descnptmn of transfers, transactions, and sharing arrangements

N/A N/A

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

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

b If "Yes. complete the followinq schedule (a) Name of organization (b) Type of organization (c) Descnpt1on of relat1onsh1p

Under penalties of pe!]ury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge behef, 1t 1s true, correct, ~lete Declaration of preparer (other than taxpayer or fiduciary) 1s based on all mfonnat1on of which preparer has any knowledge

1111,. of~-/~- "~Pl.'_ ---, '- I //-/ .f-.;UJ~7 1111,. Trev ttre., ~ ,.. Signature of officer or trustee Date ,.. Title Cl)

:c Date Preparer's SSN or PTIN Check if O (See Signature on page 31

and

;~ -o -~ ? Prepatrer's ~ o ) {: . b'n C' // I J 1 /, :S- J !J.4J'7 self-employed ~ of the 1nstruct1ons ) v, ; ~ o~s=1~gn~a=--=ur~e:___~~~-..;;;,;:<-~D.c~:____:_~~~~~'~:___~_'-..J-=-~-L~~~~~-·.L-1...L_~~~-.-~~~..LE:P~0~0~2~4~8~4~0Llec......~~~~~

a. ~ :ll Firm's name (or youral'l" ~ BKD LLP ff' ~ ::, le,''

self-employed),address, 1551 N WATERFRONT PKWY, and ZIP code WICHITA KS

STE 300

67206-6601

EIN ~ 44-0160260

Phone no 3 1 6 - 2 6 5 - 2 8 11

Form 990-PF (2006)

6E1493 3 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

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

Schedule of Contributors OMS No 1545-0047

Department of the Treasury Internal Revenue Service Name of organization

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


~@06 Employer 1dentif1cation 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

Q 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 1s 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 -

CxJ For organizations filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in 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 33 1/3% support test of the regulations under sections 509(a)(1 )/1 ?0(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 contributor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, sc1ent1f1c, 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 contributor, during the year, some contributions for use exclusively for religious, charitable, etc , purposes, but these contributions 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 nonexclus1vely 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 m 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 reqwrements of Schedule B (Form 990, 990-EZ, or 990-PF)

For Papeiwork Reduction Act Notice, see the Instructions for Fonn 990, Form 990-EZ, and Form 990-PF

JSA

6E12512000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

Schedule B (Fonn 990, 990-EZ, or 990-PF) (2006)

Schedule B (Form 990 990-EZ or 990-PF) (2006) Page of of Part I

Name pf organization CHARLES G. KOCH CHARITABLE FOUNDATION Employer 1dent1ficat1on number

1:zjjj1 Contributors (See Spec1f1c Instructions )

(a) No.

__ l_

(a) No.

---

(a) No.

---

(a) No.

---

(a) No.

---

(a) No.

---

JSA

6E1253 2 000

CHARLES

4111 E.

WICHITA

(b) Name, address, and ZIP+ 4

G. KOCH

37TH STREET N.

KS 67220

(b) Name, address, and ZIP + 4





16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

(c) (d) Aggregate contributions Type of contribution

Person § Payroll 40 021 911. Non cash

(Complete Part II 1f there 1s a noncash contnbut,on )


Person § Payroll

Non cash

(Complete Part II 1f there 1s a noncash contnbut1on )


Person § Payroll

Non cash



Person § Payroll

Noncash



Person § Payroll

Non cash



Person § Payroll Non cash


Schedule B (Form 990, 990-EZ, or 990-PF) (2006)

C, .. ,RLES G. KOCH CHARITABLE FOUNDA. ,JN EIN 48-0918408

SCHEDULE OF INFORMATION FOR 2006 FORM 990-PF

[PART I, Line 19 -- DEPRECIATION

Date Cost Accumulated Book Description of Property Acquired Basis Depreciation Value

Office Equipment 2006 1,307 143 1,164 Office Furniture 2006 3,878 129 3,749

TOTALS 5, 185 272 4,913

SL De~r Method Used·

Useful Depree. Exp Life 12/31/2006

5 143 15 129

272

CHARLES G. KOCH CHARITABLE FOUNDATION EIN 48-0918408

SCHEDULE OF INFORMATION FOR 2006 FORM 990 PF

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

If recipient 1s an md1v1dual, Foundation

Rec1p1ent show any relallonsh1p to status of Purpose of grant

any foundation manager rec1p1ent or contribution

Name and address (home or business) or substantial contnbutor

a Paid during the year

The Acton Institute Public General Operating Support Grand Rapids, Ml

Atlas Economic Research Foundation Public General Operating Support Arlington, VA

American Enterprise Institute Public General Operating Support Washington, DC

Assoc1at1on of Private Enterprise Public Education Programs Chattanooga, TN

8111 of Rights Institute Public General Operating Support Arlington, VA

Cato Institute Public General Operating Support Washington, DC

Center for Excellence 1n Education Public Educational and Research Vienna, VA Programs

Environmental Literacy Council Public General Operating Support Washington, DC

The Federalist Society Public General Operating Support Washington, DC

Fund for American Studies Public General Operating Support Washington, DC

Grove City College Public General Operating Support Grove City, PA

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

Independence Institute Public General Operating Support Golden, CO

Institute for Humane Studies Public General Operating Support Arlington, VA

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

Goldwater Institute Public Educational Programs Phoenix, AZ.

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

Mercatus Center Public General Operating Support Arlington, VA Educational Programs

National Salvation Army Public General Operating Support Alexandria, VA

Phrlanthropy Roundtable Public General Operating Support Washington, DC

The Phillips Foundation Private General Operating Support Washington, DC

ATIACHMENTA

Amount

25,000

3,800

100,000

10,000

300,000

8,400

5,000

50,000

75,000

25,000

20,000

25,000

18,339

1,082,000

350,000

26,780

10,000

3,900,000

100,000

100,000

37,500



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

If recipient 1s an md1v1dual, Foundation

Rec1p1ent show any relatJonsh,p to status of Purpose of grant

any foundation manager rec1p1ent or contribution

Name and address (home or business) or substantial contnbutor

a Paid during the year·

San Jose State University Foundation Public General Operating Support

San Jose, CA

Students 1n Free Enterprise Public General Operating Support Springfield, MO

Texas Public Policy Foundation Public Educational Programs

Austin, TX

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

West Virginia University Foundation Public General Operating Support Morgantown, WV

Youth Entrepreneurs of Kansas Public General Operating Support W1ch1ta, KS

TOTAL GRANTS PAID TO ORGANIZATIONS

b Approved for future payment

University of Kansas School of Business Public General Operating Support

Lawrence, KS

TOTAL GRANTS APPROVED FOR FUTURE PAYMENT

ATTACHMENT A

Amount

25,000

15,000

22,983

25,000

15,000

300,000

$ 6,674,802

50,000

$ 50,000



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

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

(a) Name and Address devoted to position (c) Compensation benefit plans

Richard Fink President I Director 0 0 655 15th Street, NW, Suite 445 1 hour per week average Washington, DC 20005

Kevin L Gentry Vice President 0 0 655 15th Street. NW, Suite 445 10 hours per week average Washington, DC 20005

Logan Moore Secretary 100,000 8,715 655 15th Street. NW, Suite 445 40 hours per week average Washington, DC 20005

Vonda Holliman Treasurer 0 0 P 0. Box 2256 15 hours per week average Wichita, KS 67201

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

Elizabeth B. Koch Director 0 0 P.O Box 2256 Less than 1 hour per week Wichita, KS 67201

Elizabeth Robinson Koch Director 0 0 P.O. 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

Koch Business Holdings, LLC Not Applicable 39,719 0 P.O. Box 2256 (Payment for management Wichita, KS 67201 services of officers above)

TOTAL 139,719 8,715

ATTACHMENT B

(e) Expense account, other

allowances

0

0

925

0

0

0

0

0

0

925


ATTACHMENT TO FORM 990-PF TO REPORT EXPENDITURE RESPONSIBILITY GRANT

For the Year Ended 12/31/06

PART VII-B, Question on Line 5c:

Expenditure Responsibility Statement for the Year 2006

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

July 31, 2006 $37,500

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

ATTACHMENT C

(1v) Amounts expended: Report received from The Phillips Foundation shows the following expenditures: $37,500 of the July, 2006 grant was spent directly for providing grants through their Journalism Fellowship Program.

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

(vi) Date of Reports: On November 15, 2007, The Phillips Foundation submitted a full and complete report of its expenditures of the July 2006 grant.

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



PART IX-A, - Summary of Direct Charitable Activities

CHARITABLE ACTIVITY DESCRIPTION:

KOCH ASSOCIATES PROGRAM:

During 2006 the Charles G. Koch Charitable Foundation had 16 individuals participate in it's Associate Program. Four Washington, D.C area non-profit organizations were partners 1n 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 with market-oriented think tanks, policy institutes, and other non-profit organizations.

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

KOCH INTERNSHIP PROGRAM:

During 2006 the Charles G Koch Charitable Foundation had 26 individuals participate in it's Internship Program.

The Charles G. Koch Charitable Foundation Internship Program was established to develop the next generation of liberty-minded leaders and entrepreneurs. Over the course of the program, Interns engage 1n key non-profit

projects while learning and applying Market-Based Management® (MBM®).

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

ATTACHMENT D

I Expenses

640,620

230,423



PART XV, LINE 20, INFORMATION REGARDING GRANTS- LIMITATIONS ON AWARDS ATTACHMENT E

The foundation primarily supports research and education programs that analyze the impact of free soc1et1es, 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 it is best positioned to support positive 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 1t 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 intended to support lobbying act1v1t1es 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 is 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 proiect Because the Foundation only supports Section 501(c)(3) public charities, it 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 classified 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: 202-393-2354 Fax: 202-393-2355 email @ cgkfoundat1on.com

Grant Administrator Charles G. Koch Chantable Foundation

655 15th Street NW, Suite 825 Washington, DC 20005

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

p Kind of Property Descnpllon pr Date Date sold

D acquired Gross sale

I Depreciation Cost or

I FMV

I AdJ basis

I Excess of Gain

priceless allowed/ other as of as of FMVover or exnenses of sale allowable h~··· 17/11/1'0 1?/11/1'0 ad1 basis llossl

ZAZOVE ASSOC. CONVERTIBLE BONDS - ST p VAR VAR PROPERTY TYPE: SECURITIES

504,426. 559,422. -54, 996.

ZAZOVE ASSOC. CONVERTIBLE BONDS - LT p VAR VAR PROPERTY TYPE: SECURITIES

934,960. 903, 131. 31,829.

STATE GOV'T BONDS - ST p VAR VAR PROPERTY TYPE: SECURITIES

10100000. 10100000.

STATE GOV'T BONDS - LT E VAR VAR PROPERTY TYPE: SECURITIES

700,000. 700,000.

ZAZOVE CONVERTIBLE BOND EXCHANGE E VAR VAR PROPERTY TYPE: SECURITIES

24,882. 24,882.

----------TOTAL GAIN(LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 715 .

----------

JSA 6E1730 1 000

16733H K932 11/15/2007 14:44:27 V06-8.3 85646


FORM 990PF, PART I - OTHER INCOME

DESCRIPTION

INTEREST FROM PROGRAM-RELATED INVESTMENT

TOTALS

REVENUE AND

EXPENSES PER BOOKS

48-0918408

1 7, ·997.

17,997.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

ADJUSTED NET

INCOME

17,997.

17,997.

STATEMENT 1


FORM 990PF, PART I - LEGAL FEES

DESCRIPTION

LEGAL FEES-PROGRAM INVESTMENT LEGAL FEES-ADMIN

TOTALS

REVENUE AND

EXPENSES PER BOOKS

20,107. 15,004.

35,111.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

NET INVESTMENT

INCOME

ADJUSTED NET

INCOME

17,997.

NONE 17,997.

CHARITABLE PURPOSES

2, 110. 16,383.

18,493.

STATEMENT 2


FORM 990PF, PART I - ACCOUNTING FEES

DESCRIPTION

ACCOUNTING FEES INVESTMENT ACCTG SERVICES FEES TAX PREPARATION FEES

TOTALS

REVENUE AND

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

37,726. 8,385. 3,126.

49,237.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

NET ADJUSTED INVESTMENT NET CHARITABLE

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

46, 231. 8,385.

4,501.

8, 385. NONE 50,732.

STATEMENT 3


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 PAYROLL FEES CORPORATE FILING & AGENT FEES INVESTMENT APPRAISAL FEES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

78,600. 55,200.

NONE 4,017. 8,850. 3,296.

24,169. 10,398.

2,938. 42.

2,800.

190,310.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

NET INVESTMENT

INCOME

55,200.

4,017.

2,800.

62,017.

CHARITABLE PURPOSES

79,095.

65,303.

8 t 650. 3,296.

24,169. 10,398.

2 I 938. 42.

193,891.

STATEMENT 4


FORM 990PF, PART I - TAXES

DESCRIPTION

FEDERAL EXCISE TAX REAL ESTATE TAXES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

35,726. 114.

35,840.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

NET INVESTMENT

INCOME

114.

114.

•

STATEMENT 5


FORM 990PF, PART I - OTHER EXPENSES

DESCRIPTION

INSURANCE

POSTAGE & DELIVERY

BANK FEES

SUPPLIES

TELEPHONE

MEMBERSHIP & DUES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

11,889.

5,226.

2,824.

34,983.

5,362.

5,249.

65,533.

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

CHARITABLE PURPOSES

11,889.

5,076.

2,824.

33,608.

5,097.

5,249.

63,743.

STATEMENT 6

•


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

DESCRIPTION

FEDERAL & STATE GOV'T BONDS

US OBLIGATIONS TOTAL

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

ENDING BOOK VALUE

33,800,000.

33,800,000.

ENDING FMV

34,030,764.

34,030,764.

STATEMENT 7

•


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

TOTALS

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

ENDING BOOK VALUE

5,000,000. 5,551,660. 5,000,000. 5,000,000. 5,000,000. 5,000,000.

30,551,660.

ENDING FMV

6,282,520. 6,186,560. 6,127,912. 5,670,388. 5, 413, 615. 5, 312, 573.

34,993,568.

STATEMENT 8

•

•

CHARLES G KOCH CHARIT/lBLE FOUNDATION

ASSET DESCRIPTION

OFFICE EQUIPMENT

OFFICE FURNITURE

TOTALS

METHOD/

CLASS

SL

SL

BEGINNING

BALANCE

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

LAND, BUILDINGS, EQUIPMENT NOT HELD FOR INVESTMENT

FIXED ASSET DETAIL

ADDITIONS DISPOSALS

1, 307

3, 87 8.

ENDING

Bil LANCE

1, 307.

3, 878.

5, 185.

ACCUMULJ..TED DEPRECIPTION DET.n IL

BEGINNING

BALANCE ADDITIONS

143.

129.

DISPOSALS

STATEMENT 9

Els DING

BAL8.NCE

14 3.

129.

272.


FORM 990PF, PART II - OTHER ASSETS

DESCRIPTION

NOTES RECEIVABLE - PROGRAM RELATED INVESTMENTS

TOTALS

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

48-0918408

ENDING BOOK VALUE

355,000.

355,000.

ENDING FMV

355,000.

355,000.

STATEMENT 10

_,

c

~HARL.ES G. KOCH CHARITABLE FOUNDATION 48-0918408 . .

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

DESCRIPTION AMOUNT

PRIOR PERIOD AMORTIZATION ADJUSTMENT 8,285.

TOTAL 8,285.

STATEMENT 11

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

€HARI£S G. KOCH CHARITABLE fOUNDATION 48-0918408 . .

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

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

AMOUNT EXPENDED: ANY DIVERSION? NO DATES Of REPORTS: VERifICATION DATE: RESULTS Of VERifICATION:

STATEMENT 12

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

CHARLES G. KOCH CHARITABLE FOUNDATION 48-0918408 ;.

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

CLAIRE KITTLE OFFCR TALENT DVLPMNT 110,000. 9, 414. 1,880. 655 15TH STREET, NW, SUITE 825 40.00 WASHINGTON, DC 20005

RYAN STOWERS OFFCR UNVRSTY PRGRM 90,000. 12,016. 923 .. 655 15TH STREET, NW, SUITE 825 40.00 WASHINGTON, DC 20005

ELIZABETH BRANNEN HUMAN RESOURCE COORD 60,329. 7,559. 135. 655 15TH STREET, NW, SUITE 825 40.00 WASHINGTON, DC 20005

IAN IVEY OFFCR MRKT-BSD MGMT 52,500. NONE 1,880. 655 15TH STREET, NW, SUITE825 40.00 WASHINGTON, DC 20005

---------- ---------- ----------TOTAL COMPENSATION 312,829. 28,989. 4, 818.

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

16733H K932 11/15/2007 14:44:27 V06-8.3 85646 STATEMENT 13

G.HARI~S G. KOCH CHARITABLE FOUNDATION 48-0918408

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

SEE ATTACHMENT E

STATEMENT 14

16733H K932 11/15/2007 14:44:27 V06-8.3 85646

-----~~~~~~-

·-· Form 8868 (Rev 4,-2007)

• If you are f1hng for an Additional (not automatic) 3-Month Extension, complete only Part II and check this box ....... .

Note. Only complete Part II 1f you have already been granted an automatic 3-month extension on a previously filed Form 8868

• If you are f1hng for an Automatic 3-Month Extension, complete only Part I (on paoe 1)

·~111•1• Additional (not automatic) 3-Month Extension of Time. You must file original and one copy_

Type or Name of Exempt Organization Employer Identification nµmber

print CHARLES G. KOCH CHARITABLE FOUNDATION 48-0918408

File by the Number, street, and room or suite no If a P 0. box, see 1nstruct1ons. For IRS use only extended P.O. BOX 2256 due date for filing the City, town or post office, state, and ZIP code For a foreign address, see instructions --I return See

WICHITA, '.1(5 67201-2256 mstruct1ons -Check type of return to be flled (File a separate apphcat1on for each return)

Form 990 X Form 990-PF

Form 990-BL Form 990-T (sec 401(a) or 408(a) trust)

Form 1041-A

Form 4720

D Form 6069

D Form 8870

Form 990-EZ Form 990-T trust other than above Form 5227 STOPI Do not complete Part II If you were not already granted an automatic 3-month extension on a previously filed Form 8868.

• - The books are in the care of ..... VONDA HOLLIMAN ~-------------------------------Te I e phone No ..... 316-828-5552 FAXNo ..... . ...... o • If the organization does not have an office or place of business in the United States. check this box. . . . . . . . . . . . .

• If this is for a Group Return, enter the orgaTzat1on's four d1g1t Group Exemption Number (GED . If this IS

for the whole group, check this box ...,. If 11 is for part of the group, check this box ...,. and attach a hst with the

names and EINs of all members the extension is for.

4 NOVEMBER 15 ,20_0_7 __ _

5

6 7

· ,20 ,and ending ,20 __

LJ Initial return D""'f:inal return LJ Change in accounting period

IN ORDER TO GATHER THE NECESSARY INFORMATION

Sa If this application 1s for Form 990-BL, 990-PF, 990-T, 4 720, or 6069, enter the tentative tax, less any

nonrefundable credits See instructions

b If this app1tcat1on 1s for Form 990-PF, 990-T. 4720, or 6069, enter any refundable credits and estimated

tax payments made Include any prior year overpayment allowed as a credit and any amount paid

reviousl with Form 8868

c Balance Due. Subtract line 8b from line 8a Include your payment with this form, or, 1f required, deposit

with FTD coupon or. 1f required, by using EFTPS (Electronic Federal Tax Payment System). See

instructions. Signature and Verification

Sa$ ' -.•.

Sb $

Sc$

Under penalties of per1ury, I declare that I have examined this form, mcludmg accompanying schedules and statements, and to the best of my knowledge and belief. it is true, correct, and compl , and that I

Signature ..... Date .....

B D

B Director

to Applicant. (To Be Completed by the IRS) We have approved this application Pleas ttach this form to the organization's return We have not approved this application However, we have granted a 10-day grace period from the later of the date shown below or the due date of the organization's return (Including any prior extensions) This grace period 1s considered to be a valid extension of time for elections otherwise required to be made on a timely return Please attach this form to the organization's return We have not approved this apphcat1on After considering the reasons stated 1n item 7, we cannot grant your request for an extension of time to file. We are not granting a 10-day grace period

We cannot consider this application because 1t was hied after the extended due date of the return for which an extension was requested

Other

Date

Alternate Malling Address. Enter the address if you want the copy of this apphcat1on for an add1!1onal 3-month extension

returned to an address different than the one entered above.

Type or print

JSA 6F8055 4 000

Name

BKD, LLP Number and street (Include suite, room, or apt. no.) or a P.O. box number

1551 N. WATERFRONT PARKWAY, SUITE 300 City or town, province or state, and country (Including postal or ZIP code)

WICHITA, KS 67206-6601 Form 8868 (Rev 4-2007)

charles koch foundation 480918408 2006 037b2fbbsearchable

Documents

columns b

b net investment income

foundation ma

foundation charles

income attach schedule

koch charitable foundation

private foundation omb

c gross profit