EXTENSION GRANTED r Return of Private Foundation Fonn990-PF 4947(a)(1) Nonexempt Charitable Treated as a Private Foundation Note: The foundation ma be able to use a co of this return to sat,s Department of theTreasury Ser,,ce InternalRevenue or Section I I Initial . I I Final return I I Amended return I I return Address Name of foundation n I Section 49471all1l Fair market KS 501(cM nonexemot charitable trust exempt I 316 l 828-5552 apphcatoon ,s If exemption pending,checkhere organozatoons, checkhere D 1. Foreogn 2. Foreogn orgamzatJons meebng the 85% test,checkhereandattach computation method.LJ Cash D foundation 1 Contnbubon Check .... s. grants,etc, received (attachschedule)• ofthe foundation ,snot required to attach Sch B Interest on savingsand temporarycash investments 0 3 4 80 3 322, 976. 671. 577. 41, 321. Dividends and interest from secunt1es • • • • Sa Gross rents • • • • • • • • • • • • • • • • • b Net rental incomeor Ooss) c GI > GI a:: 8 671. 577. 41, 321. F Net short-term capital gain 9 Income mod1ficat1ons • • 1 O a Grosssales less returns and allowances • • • • • b Less Cost of goods sold . I I . . . 602. Dr:'. -"-<..J '" ...... l'JUV N 602, 818. v L-'-' z ~ zuuu ~ 0 U) ~ ---~ r'lr"\ . n tr-r.... "'r'I\ "-- 818. D (d) Disbursements for charitable purposes leash basis onM (c) Adjusted net income 365. 365. ..... o If the foundationIS ona 60-fflonth tenmnabon checkhere • .... undersechon507(b)(1)(8), -3£536. 6a Net gain or (loss) from sale of assetsnot on line 10 b Gross sales pncefor all 86,227,528. assets on loneGa 7 Capital gam net income (from Part IV, line 2) • GI :::i 3 :t] statuswastenmnated E If pnvatefoundabon checkhere• .... undersechon507(b)(1)(A). LxJAccrual Other (specify)-----------------(Part I, column (d) must be on cash basis) 189.275 926. •::.:1•ill•Analysis of Revenue and Expenses (The (a) Revenue and (b) Net investment total of amounts m columns (b), (c), and (d) expenses per income may not necessarily equal the amounts in books column (a) (see page 11 of the mstruct1ons)) 16) .... $ ...... ........ foundation private J Accounting value of all assets at end private Other taxable BTelephone iwmber (ue p•ge 10 of the instrucbon&) c 67201-2256 lxJ Section of year (from Part II, col. (c), /me 2 change 48-0918408 Room/suite - WICHITA. I I Name change A Employer Identification number Use the IRS label. CHARLES G. KOCH CHARITABLE FOUNDATION Otherwise, Number and street (or P.O. box number 1fma1l 1snot delivered to street address) print or type. BOX 2256 See Specific P. 0. City or town, state, and ZIP code Instructions. H Check type of organization: ~@07 uirements 2007 , an d en d"mg F or ca en d ar vear 2007 , or tax vear b eainmna G Check all that acclv OMB No. 1545-0052 Trust I - r""'D,, I I !-i'J UI 1 l'T' c Gross profit or (loss) (attach schedule) 11 Other income (attach schedule) ••• -.-, 12 Total. Add hnes 1 throuah 11 • • • • ffi 13 Compensation of officers,directors,trustees,etc • 14 Other employee salaries and wages 15 Pension plans, employee benefits 0 I 84 . .... . 639. 2,068 ..... 4.316 081. 880. 528. 372. 64 4 03. 16 a Legal fees (attach schedule) • • • S.T f'1T • 1. ~~ 057. 2 068 880. 526 227. 8. 34 7. NONE 57 406. 9,330. NONE 105 610. 526 114. b Accounting fees (attach schedule~.Tf'1T • ~ 120 14 5. c Other professional fees (attach sciie!!tira). ~ I,: 692 260. Interest •••••••••••••••••• * Taxes (attachschedule)(seepage14of theonstructtons') 83 122. "i§ Depreciation (attach schedule) and depletion. 20, 180. ,,c 21 Occupancy •••••••••••• 333 655. 334 269. Travel, conferences, and meetings ••••• 311, 601. 321, 883. en c 23 74 087. 73 165. Other expenses (attach schedule) S.T M'l' . :i 267, 785. 92. 733. ~ ,, 20 Compensation not paid, enter -0-) (d) Contnbu~onsto employeebenefitplans and defened comoensatlon (e) Expense account, other allowances _____________________ NONE NONE NONE ------------------------------------------------------------------------------------------------------------2 Compensation of five highest-paid enter "NONE." employees (other than those included on line 1 - see page 23 of the instructions). If none, (b) Title, and average hours per week devoted to position (a) Name and address of each employee paid more than $50,000 SEE STATEMENT 12 (c) Compensation 707, Total number of other employees paid over $50,000 •• 904. (d) Contnbutlons to employee benefit plans and deferred compensation 102 (e) Expense account, other allowances 148. 14.148. ........ 1 2 Fonm 990-PF (2007) JSA 7E1460 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 6 4 8-0 918 4 0 8 About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors (continued) Page7 Fonn 990-PF (2007) •=tftiWii Information 3 Five highest-paid independent contractors for professional services (see page 23 of the instructions). (a) Name and address of each person paid more than $50,000 If none, enter "NONE." (b) Type of service (c) Compensation KOCH_BUSI NESS_ HOLD! NGS.L_LLC ----------------------------WICHITA. KS ACCNTG & ZAZOVE_ASSOCIATESL_LLC INCLINE VILLAGE NV INVEST MGMI' SERVICE ---------------------------------- LEGAL SRVC 190 238. 90 924. --------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------Total number of others rece1vinci over $50,000 for crofessional services •=tblf:QSummary .~, .. NONE 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 _________________________________________________________ E)(penses _ 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 1m1estmentsmade by the foundation dunng the tax year on lines 1 and 2. Amount 1_NONE---------------------------------------------------------------------2 All other program-related in11eStments See page 24 of the instructions 3_NONE---------------------------------------------------------------------~ Total. Add Imes 1 throucih 3 ....•••••••••••••..............••...•••••••••.. Fonn JSA 7E1465 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 990-PF (2007) 4 8 -0 918 4 0 8 Fonn 990-PF (2007) 1iflQ 1 Page8 Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see page 24 of the instructions.) Fair market value of assets not used (or held for use) directly 1ncarrying out chantable, etc., purposes: a Average monthly fair market value of secunties ..••.•...•••• b Average of monthly cash balances ••.••••.•.•••••••••. c Fair market value of all other assets (see page 25 of the instructions) • d Total (add Imes 1a, b, and c) •...•••••.•.••.••••••••• e Reduction claimed for blockage or other factors reported on hnes 1a and . . . .. I . .. . ... .. 1a 1b 1c 1d ... I 1c (attach detailed explanation) •••....•••••....•.•.. 1e Acquis1t1onindebtedness applicable to line 1 assets 2 Subtract hne 2 from line 1d 3 Cash deemed held for charitable" activrties: Eni:e"r11/2o/o "oi l~ne3 (for greater amount, "see page 25. of the instructions) 4 Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, hne 4 5 6 Minimum investment return. Enter 5% of hne 5 .•••••••••••••••••••••••..•. Distributable Amount (see page 25 of the instructions) (Section 4942(!)(3) and (J)(5) pnvate operating foundations and certain foreign organizations check here ..,. and do not complete this part.) . . . . . . . . . . ................ 2 3 4 . 0 . ... . . .... ........ ....... .. ..... . ... ... ..... 5 6 . •::r.111--•• 1 2a b c 3 4 5 6 7 1 a b 2 3 a b 4 5 6 L 944 274 • 127.673.989. 6.383 699 • D ... .. .... .. •ifliiii NONE 129, 618, 263. ............ . . . . . . .... . . i ;~ i 83. 015 . ...... 1 6, 383, 699 . . . . . . . . . . . . . . ... . .... . .. . ... ... . . . . . . . . . . . ... . .. . . . . . . . . . . . . .... . . . . . .. . ... . . . . . . . . . . . . . . ... . . . . . .... . . . . . . . . . . . . . .. . ........ . . . . . . . .. . . . . ... . . . . . . 2c 3 4 5 6 83 015. 6. 300. 684 • 6.300.684 • 7 6 300.684 . Minimum investment return from Part X, hne 6. Tax on investment income for 2007 from Part VI, line 5 •. Income tax for 2007. (This does not include the tax from Part VI.) ••• I 2b I Add Imes 2a and 2b Distributable amount before adjustments. Subtract hne 2c from hne 1 Recoveries of amounts treated as quahfymg d1stribut1ons Add lines 3 and 4 Deduction from distributable amount (see page 25 of the instructions) . Distributable amount as adjusted. Subtract hne 6 from hne 5. Enter here and on Part XIII, hne 1 101. 4 21 199. 21 667 064 • 6,530 000. 129.618 263. ...... .. Qualifying Distributions (see page 26 of the instructions) Amounts paid (including adm1mstrat1ve expenses) to accomplish chantable, etc., purposes: Expenses, contributions, gifts, etc. - total from Part I, column (d), hne 26 •••.••.•.•• 1a 10 080. 287. Program-related investments - total from Part IX-8 1b NONE Amounts paid to acquire assets used (or held for use) directly m carrying out chantable, etc., purposes 2 NONE Amounts set aside for specific charitable proJects that satisfy the: Su1tab1htytest (prior IRS approval required) 3a NONE Cash d1str1but1ontest (attach the required schedule) 3b NONE Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, hne 4 4 10 080.287 . 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 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 JSA 7E1470 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 990-PF (2007) . Undistributed Income (see page 26 of the instructions) 1 Distributable 2 Und1stnbuted income, 1f any, as of the end of 2006 line7 amount for 2007 (b) Years prior to 2006 (a) Corpus from Part XI, (c) (d) 2006 2007 ..................... a Enter amount for 2006 only a From 2002 b From 2003 c From 2004 d From 2005 684. 6. 300. 684. 990-PF (2007) NONE 1. 893. 383. 1. 991. 823. 1.297.997. 2, 267, 221. 4 479,130. . e From 2006 6.300 ..... ..... b Total for pnor years E>«:ess d1stribut1ons carryover, 1f any, to 2007: 3 f Page9 48-0918408 Form 990-PF (2007) Total of Imes 3a through e • ......... 11, 929, 554. 3 779. 603. Qualifying distributions for 2007 from Part XII, line4· ~ $ 10, 080, 287. 4 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 ..... e Remaining amount distributed out of corpus .. 5 E>«:essd1stribut1ons 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 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 • • • • • • • • • • _ • .............. NONE lme 6c from line 6b. Taxable d Subtract amount - see page 27 of the instructions e Undistributed income for 2006. Subtract line 4a from lme 2a. Taxable amount - see page 27 of the instructions NONE ............. f 7 8 Undistributed income for 2007. Subtract Imes 4d and 5 from line 1. This amount must be distributed in 2008 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) • • • • • • • • • • • • • • • • • • E>«:ess distributions carryover from 2002 not applied on hne 5 or line 7 (see page 27 of the instructions) •••••••••••••• ............... .... 9 Excess distributions Subtract lines 7 and 8 from line 6a 10 Analysis of hne 9 a Excess from 2003 b Excess from 2004 . c Excess from 2005 d Excess from 2006 e Excess from 2007 L 893, 383. 815. 774. carryover to 2008. 1 1 2 4 3 ....... 991. 297, 267 479 779 13 823. 997. 221. 130. 603. Form JSA 7E 1480 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 Fonn ~90-PF 48-0918408 (2007) •::.. ,~-· .•• Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9) 1a b 2a If the foundation has received a ruling or determination letter that foundation, and the ruhng is effective for 2007, enter the date of the ruhng ~t •is. ~ .p~1v~t~•o~~ra.tm~ Check box to indicate whether the foundation is a private operating foundation descnbed 1nsection Tax year Prior 3 years Enter the lesser of the adJusted net income from Part I or the minimum investment retum from Part X for each year listed (a) 2007 (b) 2006 (c) 2005 I I I Page 10 NOT APPLICABLE 4942(]){3) or I I 4942(])(5) (e) Total (d) 2004 ....... ..... b 85% of line 2a c Qualily1ng d1stnbut1onsfrom 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 b under section 49420)(3)(8)(1). • • • • "Endowment" altemallve testenter 2/3 of minimum investmen! retum shown 1n Part X. line 6 for each year listed c .. "Support" altema!NB test - enter (1) Total support other than (2) gross investment incane (interest, dMdends, rents, payments on seaJnbes loans (section 512(a)(5)), or royalhes). • • • • • Support from general public and 5 or more exempt org amzations as provided 1n sectJon 4942 0)(3)(8)(111)• • • • • • (3) Largest amount of support from an organ1zat.Jan ·~- .. exempt ..... ( 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.) Information Regarding Foundation Managers: 1 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: D Check here.,._ 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 md1v1dualsor 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 factors· or hm 1tations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other SEE STATEMENT 15 7E14~~ ooo Form 16733H K932 11/17/2008 10:43: 30 V07-8.5 85646 990-PF (2007) 4 8-0 918 4 0 8 Form 990-PF (2007) 1ifitJ,j 3 Page 11 Supplementary Information (continued) Grants and Contributions Paid During the Year or Approved for Future Payment Recipient Name and address (home or business) a Paid during the year SEE STATEMENT 16 Total. . b Approved for future payment SEE STATEMENT 16 If recipient 1san 1ndMdual, show any relationshipto any foundation manager or substsn~al contnbutor Foundabon status of rec1p1ent Purpose of grant or contnbubon Amount 5, 994, 000. . ~3a 5. 994. 000 . 295, 983. . . Total . ~ 3b 295 Form JSA 7E1491 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 983. 990-PF (2007) Form 990-PF (2007) . Page 48-0918408 12 Analysis of Income-Producing Activities Enter gross amounts unless otherwise 1nd1cated. Unrelated business income (b) Amount (a) Businesscode 1 Program service revenue: Excluded b, section 512, 513, or 514 (c) Exdus,cn code (d) Amount (e) Related or exemgt function incom See page 28 of he mstruct1ons.) f a b c d e f g Fees and contracts from government agencies 2 Membership dues and assessments , •••• 14 14 3 Interest on savings and temporary cash investments 4 Dividends and interest from secunt1es ... 3, 671 577. 4 L 321. 5 Net rental income or (loss) from real estate a b Debt-financed property , , , , , • • • Not debt-financed property ...... 6 Net rental income or (loss) from personal property 7 Other investment income ......... . 8 Gain or (loss) from sales of assets other than inventory 16 -3 536. 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). •••••••••••••••••••••••••••••••••• (See worksheet m lme 13 instructions on page 29 to verify calculat1ons.) ·~·.mJ:1 Line No. T Relationship 13 of Activities to the Accomplishment 4, 312, 180. of Exempt Purposes Explain below how each activity for which income is reported m column (e) of Part XVI-A contributed importantly to 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 JSA 7E1492 2 000 16733H K932 11/17/2008 10:43:30 V07-8.5 85646 990-PF (2007) 4 8- 0 918 40 8 2007 Information Regarding Transfers To and Transactions Exempt Organizations and Relationships Page 1 3 With Noncharitable Yes Did the organization directly or indirectly engage in any of the following with any other organization described in section 1 No 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. • x x 1a(1l • • 1al2l • • (1) Sales of assets to a noncharitable exempt organization 1b(11 (2) Purchases of assets from a nonchantable exempt organization 1b(21 x x 1b(31 x • • 1bl41 1b(51 (6) Performance of services or membership or fundraising solicitations 1bl61 x x x x (3) Rental of fac1hties, equipment, or other assets (4) Reimbursement arrangements. (5) Loans or loan guarantees • • • • 1c c Sharing of fac1ht1es,equipment, mailing hsts, other assets, or paid employees 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 (d) Descnpt1on of transfers, transactions, and shanng arrangements (c) Name of nonchantable exempt organization NIA N/A 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? • • • • • • • • • • • • • • • • • • • • • • • • • b If "Y es como1ete I th e f oIIowina sched ue. I (b) Type of organization (a) Name of organization D Yes Q No (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 ..~ a, a, o/~~ ~ .21 ~ec 1/-17-o!._ Date VA~r:;eUded 'f/,7/~F ::c c: I Signature of officer or trustee Date >, Preparer's - ca O signature Firm's name (or yours if it :::, self-employed), address, and ZIP code "' : g-:: Check1f self-employed~ LLP N WATERFRONT WICHITA PKWY, STE D Preparer's SSN or PTIN (See Signature on page 30 of the instructions.) P00051392 EIN ~ 44-0160260 300 67206-6601 KS TreqJ