EXTENSION GRANTED OMB No. 1545,-0047 Return of Organization Exempt From Income Tax 990 Form ~11 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) Open to Public Departmentof 1heTreasury lnspcct,on Internal ReYenueSeMce .... The organization may have to use a copy of this return to satisfy state reportingrequirements. A For the 2011 calendar year, or tax year beginning 02/14, 2011, and ending 12/31, 20 11 D Employer klentlf!catlonnumber c Nameof organization B Choe~- ....... - ~ -x - Mclmo Nllmachlnge hidal r•ti.rn Tormlnolod l\mond..i - ralurn Applloallon ~ndlrG - CHARLESKOCH INSTITUTE 27-4967732 Business As Numberand street (orP.O. boxIf mallls not de!Neredto streetaddress) Doing chllnge 1515 N COURTHOUSE RD I E Telephone number Room/suite 200 {703) 875-1600 Cityor town,sla1e or country,andZIP+ 4 ARLINGTON, VA 22201 G Gross receipts $ F Nameand addressof principal officer. BRIAN MENKES 1515 N. COURTHOUSE RD STE. 200 ARLINGTON, VA 22201-291 'tJ CJ 63,376,705. H(a)llffllales? Is this a group retum for H(b) Are all allllates Included'! No No Yes Yes If "No: attacha list. (see Instructions) I Tax-pt status: I X I so1(c)(3l I I 501(c)( ) .... (Insertno.) I I 4947(a)(1)or I I 527 J Website: .... WWW. CHARLESKOCHINSTITUTE. ORG H(c) Group OlCl!ll!Ptlan number .... K Formof organization: I X I CorporationI ITrustI IAssociation I I Other .... I L Yearof fonnatlon:20111 M stats of legaldomicile: r Summary 1 Briefly describe the organization's mission ormostsignificantactivities:------------------------------------------- mm 8 cIll ~ i', 2 c, PRESENTATIONOF FORMALEDUCATIONINSTRUCTIONTO STUDENTSIN A --------------------------------------------------------------------------------------CLASSROOM SETTING ------------------------------------------------------------------~------------------------------t:1------------------------------------------------------------------------Check this box .... if the organization discontinued Its operations or disposedof more than 25% of Its net assets. ........ 3 ......... . . . . . . . . 4 ......... . . . .. . . . . 5 ............... . . . . . . . . . . ....... 7a6 . . . . . . . . . . . . . . . ........ . . . . . . . . . . . . . . . . . ........ 7b Ill CD 4 5 6 7a b ;:: > ;; 4( Number of Independentvoting members of the governingbody(Part VI, llne 1b), Total number of lndlvlduals employed In calendaryear 2011 (Part V, llne 2a). • • Total number of volunteers (estimateIf necessary) Total unrelated business revenuefrom Part VIII, column(C), llne 12 • Net unrelated business taxable Incomefrom Form 990-T, llne 34 Prior Year . . . . . . ........ Program servicerevenue(Part VIII, llne 2g) • • • • • • • • • • • • • • • • • ........ lnveslment Income (Part VIII, column(A), l!nes3, 4, and 7d). • • • • • • • • . . . . . ... Other revenue (Part VIII, column (A), lines 5, Bd,Be,Be, 10c, and 11e)•••• . . . . . . .. Total revenue - add lines 8 through 11 (must eQualPart VIII column (A), line 12), , •• ... Grants and similar amounts paid(Part IX, column(A), lines 1-3) •••••••••••• ... Benefits pafd to or for members(Part IX, column(A), line 4) • • • • • • • • • • • • • • ... 8 Contributions and grants (Part VIII, One1h) • , , • • • • • • • • CD ::, c 9 CD > CD a: 10 11 12 = Ii 4. 4. 3 Number of voting members of the governingbody(Part VI, llne 1a) , • • • • • • , • , • • • • , • oll Ill DE ~, 18 19 63,168,455. c c c c 0 630. 3,315. 63,172,400. 0 0 1,029,943. 0 (] c c c c Total expenses.Add lines 13-17 (must equal Part IX, column (A), line 25) • • • • • • • • • • Revenue less eXPenses.Subtractline 18 from One12 ••• ................. 0 Beginningof CurrentYear .s,. 20 ::2.Z21 0 ( ... fundralslng e,cpenses(Part IX, column(D), llne 25) ~ -------------0 ____ 3 17 b Total Other expenses (Part IX.column(A), lines 11a-11d, 11f-24e) • • • , , • • • • • , , • • • • 0 3,315. Current Year (] 13 14 15 Salaries, other compensation, employeebaneflts(Part IX, column (A), Ones5-10), • , • 16a Professlonal fundralsingfees (Part IX, column(A), nne11e) • , , , • , , • , • , , , • , • • 61. 1,221,952. 2,251,895. 60,920,505. EndofYnr . . . . . . .... . . . . . . .... ..... . . . . . . ... 0 60,925,272. Total assets(Part X, line 16) •••••• , ••••••••••••••• 0 4,767. Total llablllties (Part X, llne 26). , • , • , , • • • • • • • • • • • • • • ~~ ( 60,920,505. z 22 Net assets or fund balances. Subtractline 21 from lfne20. • • .. Signature Block Underpenalties of perjlll}! I declarethat I haveexamined thisretum,Includingaccompanying schedules andstatements.andto thebest of myknowledge andbelief,It Is true, correct.andcomplete. ration ofpreparer(other officer)is based on all lnfonnatlon of whichpreparerhas anyknowledge. . Sign Here ~~~ tJr1u1JJL U)ueIf-eflSLL[if r 111.. Typeor print nameandtitle Prtnt/Typepreparer's name Date ) Date Clieck If PTIN Paid =M~I~C~HAE;.=L;;......;J~·;......;;;E~N~G~LE~~~~~..L.L~~~P.:.-~~~~~--1.-'~'~'~~+J~,._.~..,-....1....~_1f._-em~p-lo)'ed.;._...1....;.... Preparer .Flnn'sname .... BKD, LLP Flrm'sEIN~ 44-0160260 I use Ony......,. ......... -- ....... Flrm'saddress ~ 1201 WALNUT SUITE 1100 KANSAS CITY MO 64106-2246 Phoneno. 816 221-6300 May the IRS discuss this return with the preparershownabove?(see Instructions) • • • • • • • • X Yes No For Paperwork Reduction Act Notice, see the separateInstructions. Form990 (2011) ......a--......a..------------------------------------+:-;;.;.;.;.~::...;..:'------------- JSA 1E1010 1.000 5425DW K922 11/14/2012 8:32:29 AM V 11-6.1 094135 PAGE 2 Form 8868 (Rev. 1-2012) Page • If you are filing for an Additional (Not Automatic) 3-Month Extension, complete only Part II and check this box. . . ._ Note. Only complete Part II if you have already been granted an automatic 3-month extension on a previously filed Form 8868. • If CHARLES KOCH INSTITUTE 27-4967732 Social security number (SSN) Number, street, and room or suite no. If a P.O. box, see instructions. File by the due date for filing your return. See instructions. 1515 N. COURTHOUSE RD., [iJ Enter filer's ldent In number, see instructions Employer identification number (EIN} or Name of exempt organization or other filer, see instructions. Type or print 2 STE 200 City, town or post office, state, and ZIP code. For a foreign address, see instructions. ARLINGTON, VA 22201-2915 0 1 lication for each return Return Application Is For Code 01 02 Form 1041-A 08 01 Form 4720 09 04 Form 5227 10 05 Form 6069 11 06 Form 8870 12 STOP! 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 ._ BRIAN MENKES Te Ie phone No. ._ 877 829-5500 FAX No. ._------------• 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 organization's four digit Group Exemption Number (GEN) -----~~. If this is for the whole group, check this box •••••. ._ If it is for part of the group, check this box. • ..• ._ and attach a list with the names and EINs of all members the extension is for. 4 I request an additional 3-month extension of time until ____________ 1_1~/_1_5_, 20 J:1_ 5 For calendar year 2011 . or other tax year beginning , 20 , and endi~ , 20 6 If the tax year entered in line 5 is for less than 12 months, check reason: x[J Initial return ~LJ.....,.._F-in_a_l-re_t_u_rn __ _ Enter the Return code for the return that this a Application Is For Form 990 Form 990-BL Form 990-EZ Form 990-PF ------------------------------ ....... o D . D D 7 Change in accounting period State in detail why you need the extension ADDITIONAL TIME IS REQUIRED TO ACCUMULATE THE INFORMATION NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN. Sa If this application is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any Sa $ nonrefundable credits. See instructions. If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any refundable credits and b estimated tax payments made. Include any prior year overpayment allowed as a credit and any amount paid previously with Form 8868. Sb$ c Balance Due. Subtract line 8b fr.om line Ba. Include your p_ayment with this form, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions. Sc$ I 0 0 0 Signature and Verification must be completed for Part II only. Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that I am authorized to prepare this form. Signature .. ntle .. Date .. Form JSA 1F8055 4.000 5425DW K922 8/8/2012 9:32:46 AM V 11-5 094135 8868 (Rev. 1-2012) CHARLES KOCH INSTITUTE 27-4967732 Form 990 (2011) Page 14ftljjj1 Statement of Program Service Accomplishments Check if Schedule O contains a response to any question in this Part Ill • • 1 2 ·················D Briefly describe the organization's mission: PRESENTATION OF FORMAL EDUCATION INSTRUCTION TO STUDENTS IN A CLASSROOM SETTING 2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? • • • • • . • • . • . . • • . • . . • • • • • . • • . • • • • • • . • • • • • • • • . • • • If ''Yes," describe these new services on Schedule 0. 3 Did the organization cease conducting, or make significant changes in how it conducts, any program D Yes D UUNo LJU services? ....•..•..•••••••••••.••.•••.••••••••••••.••••.••.•.•••• Yes No If ''Yes," describe these changes on Schedule 0. 4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501 {c){3) and 501 (c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. 4a (Code: ) (Expenses$ 1 , 73B, 6l 2 . including grants of$ 0 )(Revenue $ ______ ~ 0_) EDUCATE STUDENTS IN A CLASSROOM SETTING ABOUT ECONOMIC FREEDOM AND THE ADVANCEMENTOF LIBERTY 4b (Code: ____ ) (Expenses $_____ -=0 including grants of$ _____ 4c (Code: _____ ) (Expenses $______ 0~including 4d Other program· services (Describe in Schedule 0.) (Expenses$ 0 including grants of$ 4e Total program service expenses ..,.. 1, 7 38, 612. grants of$ _____ 0 ) _,a'-)(Revenue $ ______ ~a'-) (Revenue$ ______ (Revenue$ 0 JSA 1E1020 1.000 _,a'-) -'a'-) ) Fenn 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 990 (2011) PAGE 3 CHARLES KOCH INSTITUTE 27-4967732 Yes 1 Is the organization described in section 501 (c)(3) or 4947(a)(1) (other than a private foundation)? If ''Yes," complete Schedule A 2 3 4 5 • • . • • • • • • • • . • • . . • . . • . . . . • • • . . . • • . . • . • . . • • • • • . • . . . Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? •••.•••.. Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part I ...........••.............. Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part /I. • • • • • • • • • • • • • • • • . . • . Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C, x 1 1---2____,1----X-+--1--3---+---+-X1--4---+---+-X- 5 x "Yes," complete Schedule D, Part I . • • • • • • • • • • • • • • • • • . . . . • . • . . . • • . . • . • • . . • . • • 6 X Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II. • • . . • • • • • Did the organization maintain collections of works of art, historical treasures, or other similar assets? If ''Yes," 7 X 8 X 9 X 1O X Part Ill ..•••.••••••...•••..••.•.....••••••••.•..••••...••••.•.•. 6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If 7 complete Schedule D, Part Ill • • • • • • • • • • • . • • • • • . • • . • • • . • . . . . • . . . . • . • • . • • • • • • 8 No Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If ''Yes," 9 complete Schedule D, Part N • • • • • • • • • • • • . . • • • . . . • . . . • . • . • . . . • . • . • . • . . • • • • • 1o Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If ''Yes," complete Schedule D, Part V • • . • • • 11 If the organization's answer to any of the following questions is ''Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. a Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If ''Yes," complete Schedule D, Part VI • . . . . . • . . . • . . • • • . . • • • • • • • • • • • • • • • • • • • • . • • • • • • . . . . . b Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If ''Yes," complete Schedule D, Part VII ..........••••••• c Did the organization report an amount for investments-program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If ''Yes," complete Schedule D, Part VIII . ..•.•••••••..•.. d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If ''Yes," complete Schedule D, Part IX ••••...................•.• e Did the organization report an amount for other liabilities in Part X, line 25? If ''Yes," complete Schedule D, Part X f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses 11a x 11b x 11c x 11d 11e x x 11f the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes,•complete Schedule D, Part X •••••• 12 a Did the organization obtain separate, independent audited financial statements for the tax year? If ''Yes," complete Schedule D, Parts XI, XII, and XIII . . • • • • • • • • • • • • • • . • . . • . . . • . . . • . . . . . . . • • • 12a b Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes,• and if 12b the organization answered "No" to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional. • • 13 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E •.•••••.• 14a 14a Did the organization maintain an office, employees, or agents outside of the United States?..•••••.••.. b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate 14b foreign investments valued at $100,000 or more? If ''Yes," complete Schedule F, Parts I and N . ....•...• 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any 15 organization or entity located outside the United States? If ''Yes," complete Schedule F, Parts II and N .•••••. 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance 16 to individuals located outside the United States? If ''Yes," complete Schedule F, Parts Ill and N .••••..••.. 17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services 17 on Part IX, column (A), lines 6 and 11e? If ''Yes," complete Schedule G, Part I (see instructions) .•..•.•••• 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on 18 Part VIII, lines 1c and Ba? If ''Yes," complete Schedule G, Part II . . • . • • • • • • • • • • . • . . • • • . • • • . . 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If ''Yes," complete Schedule G, Part Ill • . . • . . . • . . . . • • . . • • • • • • • • • . • • . • • • • . • • . • . . . 19 20 a Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H .••..•..•.•. 20a b If "Yes" to line 20a did the or anization attach a co of its audited financial statements to this return? ..•.. 20b x Fom, JSA x x x x x x x x x x x 990 (2011) 1E1021 1.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 4 27-4967732 CHARLES KOCH INSTITUTE Form990•(r2_01_1~>----------:-----:-----:-----------------------------P~ag~e~4 Checklist of Reauired Schedules (continued) Yes Did the organization report more than $5,000 of grants and other assistance to any government or organization in the United States on Part IX, column (A), line 1? If "Yes," complete Schedule/, Parts I and fl. . . . . . . . . . . . 21 22 Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? lf''Yes," complete Schedule I, Parts I and Ill • • • • . • • • • • • • • . • • . • • • . • 22 23 Did the organization answer ''Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If ''Yes," complete Schedule J • • • • • • • • • . • • • • • • • • • • • • • • • • • • . • . • • . • . • • • 23 24 a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If ''Yes," answer lines 24b No 21 X X X X through 24d and complete Schedule K If "No," go to line 2 5. . . . . . . . . . . . • . . . • . . . . . . . . . . • . . 24a b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? ....•.• 1-2_4_b-+---+--- c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? ••••..•.•••..••••••..•.•••••••••••••....••. d Did the organization act as an "on behalf of' issuer for bonds outstanding at any time during the year?••••••• 25 a Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If ''Yes," complete Schedule L, Part I • • • • • • • • • • • • . • • • • • . b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If ''Yes," complete Schedule L, Part I. . . . • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • . • • . • 26 Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization's tax year? If ''Yes," complete Schedule L, Part fl • 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If ''Yes," complete Schedule L, Part Ill • • • • • • • • . • • • • . • 28 Was the organization a party to a business transaction with one of the following parties (see Schedule L. Part IV instructions for applicable filing thresholds, conditions, and exceptions): a A current or former officer, director, trustee, or key employee? Jf''Yes," complete Schedule L, Part IV. . • • . • • • b A family member of a current or former officer, director, trustee, or key employee? If ''Yes," complete Schedule L, Part N. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If ''Yes," complete Schedule L, Part N ........ . 29 Did the organization receive more than $25,000 in non-cash contributions? If ''Yes,• complete Schedule M 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If ''Yes," complete Schedule M • . . • . . • • • . • . . • • • • • • • • • • • • . • • • • 31 Did the organization liquidate, terminate, or dissolve and cease operations? If ''Yes," complete Schedule N, Part I •••••••••..•...••.••••....... 32 33 34 1-2_4_c-+---+--1-2_4_d-+---+--25a X 25b X 26 X 27 X 28a X 28b X • · · • • • · • · • · · · • • • · • • • · • • • • • • • • · Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If ''Yes," complete Schedule N, Part fl. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If ''Yes," complete Schedule R, Part I . •...••.••........••. Was the organization related to any tax-exempt or taxable entity? If ''Yes," complete Schedule R, Parts //, Ill, IV, and V, line 1 • • . • • • • • • • • • • • • • • • • . . • . • . • • • • . • . • • • . . . • . . . . • . . • . . • . • . 35 a Did the organization have a controlled entity within the meaning of section 512(b)(13)? ...........••. b Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If ''Yes," complete Schedule R, Part V, line 2 ....•.•.•••••••••.••• 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If ''Yes," complete Schedule R, Part V, line 2 • • . • • • . • • . • • • • • . . • . • • • • • . . • 37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If ''Yes," complete Schedule R, Part VI ................................. , . . . . . . . . . . • . . . . . • . . . . . . . 38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are reauired to comolete Schedule 0. . . . . . . . . . . . . . . . . . . . . . . . . . 1---1------,t--- 37 X 38 X Fonn 990 (2011) JSA 1E1030 1.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 5 CHARLES KOCH INSTITUTE 27-4967732 Form 990 (2011) i@lti Page 1a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable .....•.... 1--1-'a-+-----b Enter the number of Forms W-2G included in line 1a. Enter-0- if not applicable••..•••.. ~ 1_b~----c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners?.•••.•••••••••••..•.• 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, filed for the calendar year ending with or within the year covered by this return . ~ 2_a~--b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? Note. If the sum of lines 1a and 2a is greater than 250, you may be required toe-file (see instructions) •. 3a Did the organization have unrelated business gross income of $1,000 or more during the year? . . . . . . . . . • b If "Yes," has it filed a Form 990-T for this year? If "No," provide an explanation in Schedule O. • . • • . . . . • . • • 4a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial b 5a b c Sa b 7 a b c d e f 5 Statements Regarding Other IRS Filings and Tax Compliance Check if Schedule O contains a response to any question in this Part V .. 3a 3b X X account)? • • • • • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • . . • • • • • • . • • • • • • • • 4a X If "Yes," enter the name of the foreign country: ..,..------------------------------------------See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? • . • • • • • • 5a X Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? 5b X If ''Yes" to line 5a or 5b, did the organization file Form 8886-T? ••••••.••.••••.••••••••••••. _s_c-+---+--Does the organization have annual gross receipts that are normally greater than $100,000, and did the X organization solicit any contributions that were not tax deductible? • • • • • • . . . • . • • • • • • • • • • • • • • • Sa If ''Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? • • • • • • • • • • • • • • • • • • • • • • . . • . . . . • . . . . • • • • • • • • • • • . Sb Organizations that may receive deductible contributions under section 170(c). Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? ••..•••.....•.......••••••••••......•...••• ,___...___, __ If "Yes," did the organization notify the donor of the value of the goods or services provided? •••••••••••• 1---'--+--+ -Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? ••.•.••••.•••.•.•••...•..••....•••...•......•• If "Yes," indicate the number of Forms 8282 filed during the year ..•.••••.••..... '-'-7-= d'-'-------f •Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? •• Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required? • • • ,___ ,___ ,___ h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? 8 Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring 1-::-,,i,,.,,,,1===1"""'= organization, have excess business holdings at any time during the year? ••••••••.••••••••.••••. 9 Sponsoring organizations maintaining donor advised funds. a Did the organization make any taxable distributions under section 4966?. b Did the organization make a distribution to a donor, donor advisor, or related person? . 1 O Section 501(c)(7) organizations. Enter: ,_1_0_a__ __ _ ... a Initiation fees and capital contributions included on Part VIII, line 12 . . • • • • . • • • b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities ._1'""'0'-b'-'------~ , 11 Section 501(c)(12) organizations. Enter: a Gross income from members or shareholders •••••••••••••••••••••••••• I--11a '-'-! '-- ---· b Gross income from other sources (Do not net amounts due or paid to other sources L1!..1~b~ -----f ;...;,.-'F-- ....P ---"" against amounts due or received from them.) •••••..............••••.... 12a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? b If "Yes," enter the amount of tax-exempt interest received or accrued during the year ~1_2_b~ - -----< 13 Section 501 ( c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in more than one state? •......•....••...• i--,,....,...,t-;:,..,,,,,,ii,=. r-= Note. See the instructions for additional information the organization must report on Schedule 0. b Enter the amount of reserves the organization is required to maintain by the states in which '+------1 the organization is licensed to issue qualified health plans • • • • . • • • • . • • • • • • • • • f-1'-'3C..Cb c Enter the amount of reserves on hand . . . . . • . • . • • . • • • • • . • . • • • . • • • • • • L1!...:3::.:c~- ~ """",!!! .---~=-"'i! ,__ x 14a 14a Did the organization receive any payments for indoor tanning services during the tax year? • 14b b If ''Yes" has it filed a Form 720 to re ort these a ents? If ''No" rovide an ex lanation in Schedule O JSA Form 990 (2011) 1E10401.000 5425DW K922 11/14/2012 3: 05: 13 PM V 11-6 .1 094135 PAGE 6 ..... ___ __ Form990(2011) 1£iMfa Governance, CHARLES KOCH INSTITUTE 27-4967732 Page6 Management, and Disclosure For each 'Yes" response to lines 2 through lb below, and for a "No" response to line Ba, Bb, or 1Ob below, describe the circumstances, processes, or changes in Schedule 0. See instructions. Check if Schedule O contains a response to any question in this Part VI . Section A. Governing Body and Management Yes 1a Enter the number of voting members of the governing body at the end of the tax year. If there are ••• , • • 1a No 4 material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule 0. b 2 3 4 5 6 Enter the number of voting members included in line 1a, above, who are independent • • . . . . 1 b ~ Did any officer, director, trustee, or key employee have a family relationship or a business relationship with 1---'=--1-----i-any other officer, director, trustee, or key employee? •.•.••..•...•...•••...•.•..•••••. Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? ••• 1--'<---1-----i-Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?. • • • • • Did the organization become aware during the year of a significant diversion of the organization'sassets? •.•.. 1---'-- c O!?. :i" a, 0 3.s· a, c 3 0 ::, ~2 !!!. 2 it a, it a, ATTACHMENT1 '< a, a, '< - :c8 3 ..., a, ,, 0 (E) Reportable compensation from related organizations (W-2/1099-MISC) 3 !!? (F) Estimated amount of other compensation from the organization and related organizations ::, Bl ;c. __tll CHARLES G. KOCH------------ _ DIRECTOR __ l21 CHARLES CHASE KOCH __________ DIRECTOR _·_~1 ELIZABETH B. KOCH ___________ DIRECTOR __ l41 RICHARD FINK --------------- x 0 0 0 1. 00 x 0 0 0 1. 00 x 0 0 0 1. 00 x 0 0 0 0 0 0 _ DIRECTOR __ (§1 BRIAN MENKES--------------- _ PRESIDENT/TREASURER/SECRETARY __l61 LOGAN MOORE---------------- 1. 00 1. 00 _ DIRECTOR - OPERATIONS 20.00 x 44,590. 134,180. 18,744. 20.00 x 44,850. 129,284. 9,319. 44,414. 99,327. __(!l ARIANNE MASSEY ------------DIRECTOR - _ TALENT DEVELOPMENT __ (!Jl_DANIEL JORJANI ------------DIRECTOR - POLICY x _ x 20.00 __UJl______________________________ 16, 272. _11Q) ______________________________ _11!)______________________________ _11~-----------------------------_11~-----------------------------_11-!)______________________________ Form 990 (2011) JSA 1E1041 1.000 5425DW K922 11/14/2012 3: 05: 13 PM V 11-6 .1 094135 PAGE 8 CHARLES KOCH INSTITUTE .. 27-4967732 Form 990 (2011) 8 Page Section A. Officers, Directors, Trustees, Kev Employees, and Hiahest Compensated Emplovees (continued) (A) Name and title (B) (C) (D) Average Position (do not check more than one hours per box, unless person is both an week officer and a director/trustee) (describe .. :c ,o- ::, :, 0 hours for 0 3ci5' a. e: ;. :::i: ,, :J' related 3 c ii'~ ~ 3 organizations ~c 0 "2. 0 !!!. ::, m8 0 in Schedule !!!. '< 3 0) ,2 i "' "" 2 "' s- i' .. .. § .. ~! .. ,,.. ,, Reportable compensation from the organization (W-2/1099-MISC) (E) (F) Reportable compensation from related organizations (W-2/1099-MISC) Estimated amount of other compensation from the organization and related organizations ::, "' s"' c. ---------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------- . 1 b Sub-total c Total from continuation sheets to Part VII, Section A d Total (add lines 1b and 1c) . . . . 2 . . . ..... ..... ..... 133,854. 362, 791. 0 133, 854. 362,791 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of o reportable compensation from the organization ..,.. 44,335. 0 . 0 44,335. Yes 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual •...•.•.•....•••.•.•.••••• 4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If "Yes," complete Schedule J for such individual . • • • . • • . . . . . . . . . . . . . . . . . . . • • . • • • • • • • • . . • • • . . . • . • . . . • • • • • • • • Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the or anization? If "Yes,"com lete Schedule J for such erson . . • . • • . . . • • • . • • . 5 5 Section B. Independent Contractors 1 2 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. (A) (B) Name and business address Description of services Total number of independent contractors (including but not limited to those listed above) who received o more than $100,000 in compensation from the organization ..,.. JSA 1E1055 2.000 5425DW K922 11/14/2012 3: 05: 13 PM V 11-6 .1 094135 (C) Compensation No X CHARLES KOCH INSTITUTE 27-4967732 (A) Total revenue (B) Related or exempt function (C) Unrelated business revenue Page 9 (D) Revenue excluded from tax ll J!l cc I!! :i C> 0 .E c !~ -- d e f :g ri Cu, .2 ... .cCl> -:i - ,gc5 Membership dues Fundraising events l--'1'-"b'-+--------1 1--1~c'--+------ Related organizations • Government grants (contributions) • 1--'1'-"d'-+---'"-'-'"""'-'-'-'""""'---f 1--1~e'--+-----..... All other contributions, gifts, grants, and similar amounts not included above c'C Oc 0<11 .....~ g Noncash contributions h Total. Add lines 1a-1f ••••••••••• ~1~f~-~60~0~0~0~~..... included in lines 1a-1f: $ ___ ___; 3!..!;!6!.2. SL.!.:22.:-f- --.....:...__.....,._..:....:t;;::::;:=~ Cl> :i c ! 2a b Cl> u ~ c U) d Cl> E I!! e CII All other program service revenue • • • • • Total. Add lines 2a-2f ••••••••••• e D. ...... Investment income (including dividends, interest, and 3 other similar amounts). • • • • • • • • • • • • • • • 4 Income from investment of tax-exempt bond proceeds 5 Royalties • • • • • • • • • r"~·~:::-::::--'--:-'--~r--::::-'"::'"~~:-'-r-, =:==:"S"l=ri"""=,,,.,.,,,,...,,.....,..,,,,, _+.....,,.,,,,,.--.,,,,....,........, =- e-t:-..,...,..-.., ..-~ (0 Real (ii) Personal 6a Gross rents • • • • • • 204 305. b Less: rental expenses • 204 305. c d Rental income or (loss) Net rental income or (loss). ~·-· _._. _._. -·------(ii) Other (i) Securities Gross amount from sales of assets other than inventory Less: cost or other basis 7a b and sales expenses c d II) Ba :::, c Gross income from fundraising events (not including $ -----of contributions reported on line 1c). See Part IV, line 18 • • • • • • • • • • • a ,_______ I... - Gain or (loss) • • • Net gain or (loss) • II) b c Less: direct expenses • • • • • • • • • • b '------Net income or (loss) from fundraising events 9a Gross income from gaming activities. See Part IV, line 19 • • • • • • • • • • • a 1----------1 Less: direct expenses • • • • • • • • • • b L-----Net income or (loss) from gaming activities. .s::. 0 b c 10a b c 11a Gross sales of inventory, less returns and allowances • • • • • • • • • a ,_______ Less: cost of goods sold • • • • • • • • • Net income or loss from sales of invento Miscellaneous Revenue b .... -t--------- -r· .f-"" "--'"""'-......_.___+:.._......,..,...._____ '+' __.....,......,.....,,.....,.,._..,..._,,.._.....,..,....- .... L------ ~------- "t-------Business Code 561000 PROFESSIONALSERVICE REVENUE b c d All other revenue • • • • • • • e Total. Add lines 11a-11d Total revenue. ee instructions 12 ... ...... 3 63 172 Form 990 (2011) JSA 1E10511.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 10 CHARLES Form990(2011) •@•flStatement KOCH INSTITUTE 27-4967732 Page10 of Functional Expenses Section 501 (c)(3) and 501 (c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B}, (CJ, and (DJ. Check if Schedule O contains a response to any question in this Part IX •.. I (C) (A) (B) (D) Do not include amounts reported on lines 6b, Management and Program service Total expenses Fundraising 7b, Bb, 9b, and 10b of Part VIII. expenses general expenses expenses . . . . . . . . . .. . ... . . . . . . 1 .~ Grants and other assistance to governments and . organizations in the United States. See Part IV, line 21 0 Grants and other assistance to individuals in the United States. See Part IV, line 22 •••••• 2 3 0 Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 1 6. • • • 4 Benefits paid to or for members• • • • • • • • • 5 Compensation of current officers, directors, trustees, and key employees \_( - ,- { 98,646. , __. .. ~· 48,383. - ,-., . ,. ,. ., .., .,; ."' y ' 0 0 .......... 6 ! .· I ., • >: .I r \: ' ,. - •., 50,263. Compensation not included above, to disqualifled persons (as defined under section 4958(1)(1)) and 0 persons described in section 4958(c)(3)(B) • • • • • • 7 Other salaries and wages • • • • • • • • • • • • 8 Pension plan accruals and contributions (include section . .. 401 (k) and 403(b) employer contributions). Other employee benefits • • • • • 10 Payroll taxes • • . • • • • • • • • 11 Fees for services(non-employees): a Management b Legal c Accounting Lobbying 9 . . . . ... . . . . . . . . . . ............ .................... 2,602. 57. 296,464. 62,473. 41,800. 60,479. . . . . ..... Other expenses. Itemize expenses not 57. 110,272. 186,192. 62,473. 25, 281. 29,788. 16,519. 30, 691. 0 505,296. 105,467. 418,282. 90,038. 87,014. 15,429. 0 11,589. . . . . . . . . . . ........ ........... .................. 12,306. 0 0 0 ..... .. Conferences, conventions,and meetings Interest Payments to affiliates Depreciation, depletion, and amortization ••. Insurance 7,849. 0 2,602. g Other 12 Advertising and promotion • 13 Office expenses 14 Information technology. 15 Royalties•••••••• 16 Occupancy 17 Travel • 18 Payments of travel or entertainment expenses for any federal, state, or local public officials .... 105,364. 28,730. 8,492. 42,128. Professional fundraising services. See Part IV, line 1 7 f Investment managementfees 19 20 21 22 23 24 726, 428. 36,579. 8,492. 54,434. .. ..... .. .............. ... . ................. . . . . . . . . . . . . .. ... d e 831,792. 9, 162. 2,427. 0 0 . .. ,, 92,176. 9,082. 34,737. 57,439. 9,082. covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule 0.) a u ~ ...:.r--------------------------- b ____________________________ c ____________________________ d---------------------------e All other expenses ----------------25 26 Total functional expenses. Add lines 1 through 24e 34,467. 2,251,895. Complete this line only if the costs. organization reported in column (8) joint costs from a combined educational campaign and fundraising solicitation. Check here .... if following SOP 98-2 (ASC 958-720) • 25,896. 1,738,612. 8,571. 513,283. Joint D .... 0 JSA 1E10521.000 5425DW Form K922 11/14/2012 3: 05: 13 PM V 11-6 .1 094135 990 (2011) PAGE 11 CHARLES KOCH INSTITUTE Form 990 (2011) Balance Sheet 1 2 3 4 5 Cash - non-interest-bearing . • • • • • • . • • . . . • ..•••••••• 1----------+--+-------''---Savings and temporary cash investments. • . • . . • .•.••••••• 1----------+--+----'-----''---Pledges and grants receivable, net . • • . • • . • • • .•.•..•..•• 1----------;---t-------Accounts receivable, net . • • . • • • • . • . . • • • • •.•......•• 1----------1--.-.-----"---Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L other" disqualified° pe"rsons"(as defined under section" 6 Receivables" 4958(f)(1 )), persons described in section 4958(c)(3)(8), and contributing employers and sponsoring organizations of section 501 {c){9) voluntary 1----------1---+-------employees' beneficiary organizations (see instructions) .••••••••••• Ill .... a, 7 Notes and loans receivable, net ••••••.••••••••••••••••.• 1----------+---+-------Ill IR < 8 lnventories for sale or use••••.•••.••••••••••••••...•. 9 Prepaid expenses and deferred charges •.••••••••••••••.•.• 1----------+---+-----'"----,-10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 1 Oa 8 2 6, 0 8 9. b Less: accumulated depreciation •••••...•• ._1_0_b.....,_ ____ 9_2.,_, _0_0_3_.-+--------+-.:....:....+------=---11 lnvestments - publicly traded securities • • . • • • • • . •••.•••..• 1----------+--+-------12 lnvestments - other securities. See Part IV, line 11 • • • • • • • ••.•. 1----------+---+-------13 lnvestments - program-related. See Part IV, line 11 • • • • • • ••.•• 1----------+--+-------14 lntangible assets •••••••••••••••••••.••••••••••.•• 1----------+---+-------15 0ther assets. See Part IV, line 11 • • • • • • • • • • • • • • • •••••.• 1----------;---t-------• • • . ..• 16 Total assets. Add lines 1 throuah 15 (must eaual line 34) 17 Accounts payable and accrued expenses. .... t----------;---t-----'---18 Grants payable .••••••••.••.• 19 Deferred revenue . . . . . • • • • • • • . • • . • • . • . • • •••••••• 1----------1---+-------20 Tax-exempt bond liabilities ..••••••••••••••••••••••••• 1----------;---t-------Ill Escrow or custodial account liability. Complete Part IV of Schedule D a, 21 ~ 22 Payables to current and former officers, directors, trustees, key :s employees, highest compensated employees, and disqualified persons. ns ~ Complete Part II of Schedule L •.••••••••••••••••••••••• 1---------t----1-------23 Secured mortgages and notes payable to unrelated third parties ••••.•• 1------------+-------24 Unsecured notes and loans payable to unrelated third parties •••••••. Other liabilities (including federal income tax, payables to related third 25 parties, and other liabilities not included on lines 17-24). Complete PartX from 26 0 of Schedule D ...•.••..••••••••••••••.•••••••••. Total liabilities. Add lines 17 through 25 .•••••••••••••••••• >---------+---+-------- Organizations that follow SFAS 117, check here ..,.. lK.Jand complete lines 27 through 29, and lines 33 and 34. I ns 27 ii 28 m "g 29 :::, LL ... 0 ,e30 : 31 < 32 .... ~ 33 34 Unrestricted net assets ............................. Temporarily restricted net assets .•••.•.•••.•••••...••• Permanently restricted net assets ..•••..••••.••••.•.••••• 0rganizations that do not follow SFAS 117, check here ..,.. complete lines 30 through 34. 1----------f---+-----'----''---- D 1----------1---+-------- and Capital stock or trust principal, or current funds •••••••••••••..• Paid-in or capital surplus, or land, building, or equipment fund ••••.... Retained earnings, endowment, accumulated income, or other funds ...• Tota I net assets or fund balances .••.•...• Total liabilities and net assets/fund balances •.•...•••.•••••.•• 1----------+---+-------1----------+---+-------1----------t--+-------- JSA 1E1053 1.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 12 CHARLES KOCH INSTITUTE 27-4967732 Form 990 (2011) Page 1:iflfH Check Reconciliation of Net Assets if Schedule O contains a response to any question in this Part XI . 1 2 3 4 5 6 12 .D Total revenue (must equal Part VIII, column (A}, line 12) ••..•.......•.••.•.....•.. Total expenses (must equal Part IX, column (A}, line 25) ••••.•..........••.•.••..• Revenue less expenses. Subtract line 2 from line 1 • • • • • • • • • • • . • • • • • . . . • • • • • . • • Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) •••••••• Other changes in net assets or fund balances (explain in Schedule 0) ••.•••••.••••••••. Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (8)) •...••.•••••••••••••.•••••••...•••..••.•••••••.... 1 2 3 4 63,172,400. 2,251,895. 60,920,505. 0 0 5 6 60,920,505. Financial Statements and Reporting Check if Schedule O contains a response to any question in this Part XII Yes D 1 2a b c d D Cash Accrual Accounting method used to prepare the Form 990: Other -----If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule 0. Were the organization's financial statements compiled or reviewed by an independent accountant? ••••••.. Were the organization's financial statements audited by an independent accountant? ••••••••••••••.. If ''Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? If the organization changed either its oversight process or selection process during the tax year, explain in Schedule 0. If ''Yes" to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both: Separate basis Consolidated basis Both consolidated and separate basis As a result of a federal award, was the organization required to undergo an audit or audits as set forth in D 3a W D No x 2a 2b x 2c D the Single Audit Act and OMB Circular A-133? •..••.•••.•.•........••.........••..• b If ''Yes," did the organization undergo the required audit or audits? If the organization did not undergo the re uired audit or audits, e lain wh in Schedule O and describe an ste s taken to under o such audits x 3a 3b Form 990 (2011) JSA 1E10541.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 13 SCHEDULE A OMB No. Public Charity Status and Public Support (Form 990 or 990-EZ) ~11 Complete If the organization Is a section 501(c)(3)organizationor a section 4947(a)(1)nonexempt charitable trust Department of the Treasury Internal Revenue Service .... Name of the organization CHARLES KOCH INSTITUTE Reason for Public Chari 1545-0047 Oocn to Public Inspection Attach to Form 990 or Form 990-EZ. .... See separate Instructions. Employer Identificationnumber 27-4967732 Status (All or anizations must com lete this part. See instructions. The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.) 1 ~ A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 2 X A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the sD D 10 11 D eD f hospital's name, city, and state:---------------------------------------------------------------An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.) A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1 )(A)(vi). (Complete Part II.) A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) An organization that normally receives: (1) more than 33113% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions - subject to certain exceptions, and (2) no more than 33113%of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part 111.) An organization organized and operated exclusively to test for public safety. See section 509(a)(4). An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a}(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11 h. a Type I b Type II c Type Ill - Functionally integrated d Type Ill - Other By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)( 1) or section 509(a)(2). If the organization received a written determination from the IRS that it is a Type I, Type II, or Type Ill supporting D D D D D organization, check this box. • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • . . . . . . . • . . . . . Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons? Yes (i) A person who directly or indirectly controls, either alone or together with persons described in (ii) 119(1) and (iii) below, the governing body of the supported organization? • 119(11) (ii) A family member of a person described in (i) above? ••••••••• 119(111) (iii) A 35% controlled entity of a person described in (i) or (ii) above? • h Provide the following information about the supported organization(s). (ll)EIN (Iv)ls the· (v) Did you notify (I) Nameof supported (Ill) Type of organization (vi) Is the (vii) Amountof organizationin the organization organization organization in support (describedon lines1-9 col. (I) listed in aboveor IRCsection col. (I)organized in col. (I) of your governing (see Instructions)) your support? in the U.S.? document? Yes No Yes No Yes No g No (A) (B) (C) (D) (E) Total For Paperwork Reduction Act Notice, see the Instructionsfor Form 990 or 990-EZ. "• Schedule A (Fonn 990 or 990-EZ) 2011 JSA 1E12101.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 14 CHARLES KOCH INSTITUTE 27-4967732 Schedule A (Form 990 or 990-EZ) 2011 Page •@ii• 2 Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part Ill. If the organization fails to qualify under the tests listed below, please complete Part Ill.) Section A. Public Su ort Calendar year (or fiscal year beginning in) 1 Gifts, grants, contributions, and membership fees received. {Do not include any "unusual grants.") •••••• 2 3 4 5 6 (a) 2007 .... (b) 2008 (c) 2009 (f) Total (e) 2011 (f) Total --1------4------11------- 1--------t------------1------4------1,------- The portion of total contributions by ,. each person {other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column {f) ••••••• Public su ort. Subtract line 5 from line 4. Section B. Total Su ort Calendar year (or fiscal year beginning In) .... (a) 2007 (b) 2008 (c) 2009 (d) 2010 7 8 Amounts from line 4 • • • • • • • • Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources ••••••••••••••••• 1-------;-------i-------+------+------11------- 9 Net income from unrelated business activities, whether or not the business is regularly carried on •••••.•••• 1--------+------1-------+------4-------11------- 10 Other income. Do not include gain or loss from the sale of capital assets {Explain in Part IV.) • • • • • • • • • • • 11 Total support. Add lines 7 through 10 .• 12 13 (e) 2011 1--------t-------i-------1-------+-------11------- Tax revenues levied for the organization's benefit and either paid 1-------------1-----to or expended on its behalf •••.••• The value of services or facilities furnished by a governmental unit to the organization without charge ••••••• Total. Add lines 1 through 3 ••••••• (d) 2010 D First five years. If the Form 990 is for the organization's first, second, third, fourth, _or.f ifl h. tax •• year as .a. s_ec.tio. n. 5.0_1 <_c).(3L organization, check this box and stop here • • • • • • • • • . • • • • • • • • • • • .,...._ 0 Section C. Com utation of Public Su 0 0 ort Percenta e 14 Public support percentage for 2011 (line 6, column (f) divided by line 11, column (f)) •••••••• 14 % 15 Public support percentage from 2010 Schedule A, Part II, line 14 . . • . . . . . • . . . • . . . • . • 15 % 16a 33113% support test -2011. If the organization did not check the box on line 13, and line 14 is 33113% or more, check this box and stop here. The organization qualifies as a publicly supported organization ..........•••••••••• ...,. b 33113% support test - 2010. If the organization did not check a box on line 13 or 16a, and line 15 is 3 3113% or more, check this box and stop here. The organization qualifies as a publicly supported organization ....••.•.•••••••. ...,. 17a 10%-facts-and-circumstances test - 2011. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization . • • • • • • • • • • • • • • • • • • • . . . . • • . • • • . • • • • • • • • • • • • • . • • • • • . • . . . • . • . • . .... b 10%-facts-and-circumstances test - 2010. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain in Part IV how the organzation meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported organization • . • • • • • • . • • • • • . . • . • . . • • • • • • • • • • • • • • • • • . . . • • • • • • . . • . • . • • ...,. 18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions .•..................•.••••••.••••••..•••..•.•........•••••••• ...,. D D D D D Schedule A (Fonn 990 or 990-EZ) 2011 JSA 1E1220 1.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 15 27-4967732 CHARLES KOCH INSTITUTE Page 3 Schedule A (Form 990 or 990-EZ)2011 1iffijjj1Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.) Sfec ,on APbl"S u IC UDDOrt Calendar year (or flscal year beginning in) 1 Gilts, grants, contributions, and membership fees .... (a)2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (f) Total received. (Do not include any "unusual grants.") 2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose • • • • • • 3 Gross receipts from activities that are not an unrelated trade or business under section 513 4 Tax levied for the revenues organization's benefit and either paid .... 5 to or expended on its behalf • • • The value of services or facilities furnished by a governmental unit to the organization without charge • • • • • • • 6 Total. Add lines 1 through 5 ••••••• 7a Amounts included on lines 1, 2, and 3 received from disqualified persons • • • • b Amounts included on lines 2 and 3 other than disqualified received from persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year .... . . . . . . . . . . . . ... B T0 tal SUPPOrt s ec,on f Calendar year (or flscal year beginning In) .... 8 c Add lines 7a and 7b, •••••• Public support (Subtract line 7c from line6.) . ,. ( (a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (f) Total 9 Amounts from line 6. • • • • • • • • • • 10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources .•••••••••••••••• b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 •••••• c Add lines 1Oa and 1Ob 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on 12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.) 13 Total support. (Add lines 9, 10c, 11, ......... ............... . . . ....... ....... and 12.) ••••••••• First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501 (c)(3) organization, check this box and stop here • • • • • • • • • • . • • 14 Section C. Com utation of Public Su ort Percenta e 15 Public support percentage for 2011 (line 8, column (f) divided by line 13, column (f)). 15 16 Public support percentage from 2010 Schedule A, Part Ill, line 15 •••••••••• 16 % % Section D. Com utation of Investment Income Percenta e Investment income percentage for 2011 (line 1Oc, column (f) divided by line 13, column (f)) • 17 ••••••••• 17 f-'...;._+- _______ ......... 17 is not more than 331 /3 o/o,check this box and stop here. The organization qualifies as a publicly supported organization .... b 331/3% support tests -2010. 2o % % __;..:.._ 18 Investment income percentage from 2010 Schedule A, Part Ill, line 17 ••••••••••• ~-~--------19a 331/3% support tests· 2011. If the organization did not check the box on line 14, and line 15 is more than 33113o/o,and line 18 D If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33113%, and line 18 is not more than 3 31/3 %, check this box and stop here. The organization qualifies as a publicly supported organization .... Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions .... JSA Schedule A (Fonn 990 or 990-EZ) 2011 1E1221 1.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 16 CHARLES KOCH INSTITUTE 27-4967732 Schedule A (Form 990 or 990-EZ) 2011 •@IHI Supplemental Information. Complete this part to provide the explanations required by Part II, line 1O; Page 4 Part II, line 17a or 17b; and Part Ill, line 12. Also complete this part for any additional information . (See instructions). Schedule A (Fonn 990 or 990-EZ) 2011 JSA 1 E1225 2.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 17 CHARLES KOCH INSTITUTE STATEMENT OF ACTIVITIES December 2011 YTD $000 REVENUE: Cash Contributions Non-Cash Contributions Interest Income Dividend Income Rental Income Rental Expense Profesisonal Service Income OPERATING EXPENSES: Comp for directors/key employ Other Salaries, taxes, ben. $ Metro Benefits Payroll Taxes Subtotal Salary Expense Fees for services Management Legal Accounting Lobbying Professional Fundraising Fees Investment Mgmt Fees Other Advertising Office Expenses Information Technology Royalties Occupancy Travel Payments for T&E for public off. Conferences, Conventions Interest Payments to affiliates Depreciation, depletion, ammort Insurance Other Subtotal All other Expenses INCREASE (DECREASE) IN NET ASSET Mgmt & General 2011 2011 63,172,400 $ 401 k - Employer Contributions TOTAL EXPENSES Program Service 2011 62,800,000 368,455 560 70 204,305 (204,305) 3 315 $ EXPENSES: GRANT EXPENSES: Grants Awarded Total $ $ (0) $ 98,646 831,792 62,800,000 368,455 560 70 40,861 (40,861) 3 315 (0) 0 (0) 163,444 (163,444) $ $ 63,172,401 $ 48,383 726,428 $ 50,263 105,364 36,579 28,730 8,492 8,492 54434 1,029,943 42,128 854 161 2,602 2,602 57 296,464 62,473 41,800 60,479 186,192 62,473 25,281 29,788 505,296 105,467 418,282 90,038 87,014 15,429 11,589 9,162 2,427 92,176 9,082 34,467 1,221,952 34,737 57,439 9,082 8,571 337,501 2,251,895 $ 6019201505 7,849 12 306 175,782 57 110,272 16,519 30,691 25,896 884,451 $ 1,738,612 $ $ (1l381612) $ 513,283 6216591118 SCHEDULED (Form 990) OMB No. 1545-0047 Supplemental Financial Statements ~11 .,..Complete if the organization answered "Yes," to Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. .,..Attach to Form 990 • .,..See separate instructions. Department of the Treasury Internal Revenue Service Name of the organization Open to Public Inspection Employer Identification number CHARLES KOCH INSTITUTE 27-4967732 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6. (a) Donor advisedfunds 1 2 3 4 5 6 (b) Funds and otheraccounts Total number at end of year ••••..••• Aggregate contributions to (during year) Aggregate grants from (during year). Aggregate value at end of year •••... Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? • • • • • • • . • . • Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferrin im ermissible rivate benefit? .............•.••..•••..•.•••••....•.. .. .. .. D Yes D No D Yes D No Conservation Easements. Com lete if the or anization answered "Yes" to Form 990, Part IV, line 7. 1 P§r ose(s) of conservation easements held by the organization {check all that apply). D D Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. 2 lattli a b c d 3 Held at the End of the Tax Year 2a Total number of conservation easements 2b Total acreage restricted by conservation easements ••••••••••..•.•••... 2c Number of conservation easements on a certified historic structure included in (a) •••• Number of conservation easements included in (c) acquired after 8/17/06, and not on a 2d historic structure listed in the National Register ..••.•••••••..•••..•.•••• Number of conservation easements modified, transferred, released, extinguished, or terminated by the organizationduring the 6 tax year .,.. ----------------Number of states where property subject to conservation easement is located.,.. ________________ _ Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? . • • • • • . • • • • • • • • • • • • • . • • Yes Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year 7 Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h}(4)(B) (i) and section 170(h)(4)(B)(ii)?. • • • • . • . • • • . • • • • • • . • • . . • • . . . . . . . . . . • • . . • . . . . Yes In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the or anization's accounting for conservation easements. 4 5 D D No ....----------------.... $ ----------------- D 9 D No Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" to Form 990, Part IV, line 8. 1a b 2 a b If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIV, the text of the footnote to its financial statements that describes these items. If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenues included in Form 990, Part VIII, line 1 •..•••••••••.••••.••..••.•..• .,.. $ ____________ _ (ii) Assets included in Form 990, Part X . . . . • . . • • • • • • • • • • • . . • • . . . . . . • • • . . . . .,.. $ ____________ _ If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: .... $ ____________ _ Revenues included in Form 990, Part VIII, line 1 •••••••• Assets included in Form 990, Part X •••••••••.••..•.........•••••... ....$ For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule D (Fonn 990) 2011 JSA 1E12681.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 22 CHARLESKOCH INSTITUTE 27-4967732 Schedule D (Form 990) 2011 1ifflijj1Organizations 3 Page 2 Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): :B Public exhibition Loan or exchange programs Scholarly research Other Preservation for future generations Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIV. During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? , , • . . Yes No :§ 4 5 Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X?. . . . • • • . • . • • • • • • • • • • • • • • • • • • • • • • • • • • • . • . . • • . b If "Yes," explain the arrangement in Part XIV and complete the following table: Amount c Beginning balance ••••••••••••• 1c d Additions during the year •• 1d e Distributions during the year ••••••.• 1e f Ending balance ••••.••.....•..••••• 1f 2a Did the organization include an amount on Form 990, Part X, line 21? b If "Yes," explain the arrangement in Part XIV. . . . ............. .. D O No LJ Yes LJ No Yes Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10. (a) Current year ... (b) Prior year (c) Two years back (d) Three years back 1a Beginning of year balance b Contributions ....•.•••. c Net investment earnings, gains, and losses •••.•••••... . d Grants or scholarships e Other expenditures for facilities . and programs .•...•• f Administrative expenses . .. g End of year balance. • . . .. 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi-endowment .__________ % % b Permanent endowment ._ c Temporarily restricted endowment .__________ % The percentages in lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: (i) unrelated organizations • . • • • • • . • . • • • • . • . . . . • • . . • • . . . • . • . . (ii) related organizations • • • • • • • • • . • • • • . . . . • . . . . . . . . • • . b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? 4 Describe in Part XIV the intended uses of the organization's endowment funds. ..... . .. (e) Four years back , I " ,• . J ,_ ) .. •t I / Yes No 3a(i) 3a(ii) 3b Land, Buildings, and Equipment. See Form 990, Part X, line 10. Description of property .......... (a) Cost or other basis (in vestment) (b) Cost or other basis (other) (c) Accumulated depreciation 1a Land .. b Buildings ......... 269,932. c Leasehold improvements. 556,157. Equipment d Other e Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).). . ........ ............ .. .. .. (d) Book value 24,088. 67,915. 245,844. 488,242. . . ... 734,086 .. . Schedule D (Fonn 990) 2011 JSA 1E12691.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 23 CHARLES KOCH INSTITUTE 27-4967732 Schedule D (Form 990) 2011 Page 3 Investments - Other Securities. See Form 990 Part X line 12. (b) Book value (a) Description of security or category (including name of security) (c) Method of valuation: Cost or end-of-year market value (1) Financial derivatives •••••••••••• (2) Closely-held equity interests ••••.... (3)0ther _______________________________ -t-~~~~~~-t-~~~~~~~~~~~~~~~~~~- --------------------------------------------------------------__ (C) -------------------------------__ (D) -------------------------------__ (E) -------------------------------- -+-~~~~~---.,--~ ~~~ ~~~~~~~~ -t-~~~~~---.i--~~~~~~~~~~~~~~~~~ -+-~~~~~~+--~~~~~~~~~~~~~~~~~ -1--~~~~~~i--~~~~~~~~~~~~~~~~~ -+-~~~~~~+--~~~~~~~~~~~~~~~~~ __ (A) __ (B) __(~ -------------------------------__ (G) __ (H) (I) ---~~~~~---,..~~~~~~~~~~~~~~~~~ --------------------------------+-~~~~~-+~~~~~~~~~~~~~~~~~ ----------------------------------i-~~~ ~~~i--~~~~~~~~~~ Total. (Column (b) must equal Form 990, Part X. col. (B) line 12.) ~ ~~~~ ~ ~~~~~~ ._ Investments - Pro ram Related. See Form 990 Part X line 13. (b) Book value (a) Description of investment type (c) Method of valuation: Cost or end-of-year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Column (b) must equal Form 990, Part X. col. (B) line 13.) .. Other Assets. See Form 990, PartX, line 15. (a) Description (b) Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Column (b) must equal Form 990, Part X, col. (B) line 15.) • • • • • • • • • • • • • • • • • Other Liabilities. See Form 990 Part X, line 25. (a) Description of liability (b) Book value Federal income taxes Total. (Column (b) must equal Form 990, PartX, col. (B) line 25.) ._ 2. FIN 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). JSA Schedule D (Fonn 990) 2011 1E12701.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 24 CHARLES KOCH INSTITUTE 27-4967732 Page 4 Schedule D (Form 990) 2011 •!..1:1.11..... 1 2 3 4 Reconciliation of Change in Net Assets from Form 990 to Audited Financial Statements Total revenue (Form 990, Part VIII, column (A), line 12) Total expenses (Form 990, Part IX, column (A), line 25) Excess or (deficit) for the year. Subtract line 2 from line 1 Net unrealized gains (losses) on investments Donated services and use of facilities ... .. 5 6 7 8 9 .. 10 . . . . . . . . . . . . .. . ... . . . . . . . . . . . . . . ... .. . . . . ... . 1 2 3 4 . .... . . .. ... ... . . . . . . . . . . .. Investment expenses ••••• . . .. .. . . . . . . . . ........ Prior period adjustments ••...•.• .. . . . .. ........ . .......... Other (Describe in Part XIV.) . ................ .... .............. . . Total adjustments (net). Add lines 4 through 8 ....... . . . . . . . . . . . . . . . ... .. . Excess or (deficit) for the year per audited financial statements. Combine lines 3 and 9 . . . . . . Reconciliation 5 6 7 8 9 10 of Revenue per Audited Financial Statements With Revenue oer Return . . . . . .......... 1 2 a b c d e 3 4 a b c .. 5 Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: Net unrealized gains on investments Donated services and use of facilities Recoveries of prior year grants . Other (Describe in Part XIV.) ....• Add lines 2a through 2d ••..••. Subtract line 2e from line 1 Amounts included on Form 990, Part VIII, line 12, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b • Other (Describe in Part XIV.) •• Add lines 4a and 4b Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) . . . ...... . . . .. . . . . ... . .. .... . . . . . . ... .. ....... ... ............... ...... . .. . .. . .. 2a 2b 2c 2d . . 2e 3 . . . . .. . . . . . . . . . . . . . . .... 4b . . .................. . ..... . . . . . . . . . .......... .. . . . . . . . . . . 4c ..... Reconciliation .. .... . . . .... 4a a b c d e 3 4 a b c .. 5 5 of Expenses per Audited Financial Statements With Expenses per Return . . . . . . . . . . . . . ......... 1 2 1 Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: Donated services and use of facilities Prior year adjustments Other losses Other (Describe in Part XIV.) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIV.) .. Add lines 4a and 4b Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.). ... . . . . . . 2a ....... .... . . . . . . 2b 2c . . . . . . . . . . . . . . . . . . . .. 2d .. .... .... .. .... ...... .. . . . .... . . . .. . . . . . . . . . . . . . ... ............. ........... .... ................................. ... .. .. .. 1 ;' .. .. 2e 3 4a 4b ..... . . . . . .. 4c 5 Suoolemental Information Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part Ill, lines 1a and 4; Part IV, lines 1 b and 2b; Part V, line 4; PartX, line 2; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information. Schedule D (Fonn 990) 2011 JSA 1E12711.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 25 27-4967732 CHARLES KOCH INSTITUTE Schedule D (Form 990) 2011 14Mf3',j Supplemental Page 5 Information (continued) Schedule D (Fonn 990) 2011 JSA 1E1226 2.000 5425DW K922 11/14/2012 3: 05: 13 PM V 11-6 .1 094135 PAGE 26 SCHEDULEE (Form 990 or 990-EZ) OMB No. 1545-0047 Schools ._ Complete if the organization ~11 answered "Yes" to Form 990, Part IV, llne 13, or Form 990-EZ, Part VI, llne 48. Department of the Treasury Internal Revenue Service Open to Public Inspection ._ Attach to Form 990 or Form 990-EZ. Nameof the organization Employer identification number CHARLES KOCH INSTITUTE 27-4967732 YES 1 2 3 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing instrument, or in a resolution of its governing body?. • . . • • • . • • • • . . • • • • • • • Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs, and scholarships? . • • . • . • . • . • . • . • • . . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? If "Yes," please describe. If "No," please explain. If you need more space, use Part II. . . • . • • . . • • • . • . . . • . . . . . • . • 1 X 2 X 3 X 4a X 4b X 4c 4d X X NO SEE SUPPLEMENTAL PAGE 4 Does the organization maintain the following? a Records indicating the racial composition of the student body, faculty, and administrative staff?. . . . . • b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? • • • . • • • • • • • • • • • • • . • . • • . . • . . . . . • . . • . • • . . • • . . . • . . . . c Copies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? . . . . . • . • • . • . . . . • . . • . . . d Copies of all material used by the organization or on its behalf to solicit contributions?. • • • • If you answered "No" to any of the above, please explain. If you need more space, use Part II. 5 Does the organization discriminate by race in any way with respect to: a Students' rights or privileges?.•....••...•••••••••..• t---t----;,--- 5a x b Admissions policies?•.•••• 5b x c Employment of faculty or administrative staff?. 5c x d Scholarships or other financial assistance?. e Educational policies? f Use of facilities? • • • • • • • • • • • • • • • • • • • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 1-s=d=---+---+--x_ • • • • • • · • • • • • • • • • • • • • • • • • • • • . • • • • • • • t-5=-e=-t---+-x- • • • • • • • • • • • • • • • • • • • • • • . • • • • • • . • • • • • • • • • • . . • • • • • • • • • • i--=-5..:..f-1---+-_x_ g Athletic programs? 5 x h Other extracurricular activities? . • • • • • • . • • If you answered ''Yes" to any of the above, please explain. If you need more space, use Part II. 5h x 6a 6b X X 6a Does the organization receive any financial aid or assistance from a governmental agency? . b Has the organization's right to such aid ever been revoked or suspended?. • . • . . . . . . . . . . . . • • . . . • • If you answered ''Yes" to either line 6a or line 6b, explain on Part II. 7 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 4.05 of Rev. Proc. 75-50, 1975-2 C.B. 587, covering racial nondiscrimination? If "No," explain on Part II . • . • • • For Paperwork Reduction Act Notice, see the Instructions for Form 990 or Form 990-EZ. 7 X Schedule E (Form 990 or 990-EZ) (2011) JSA 1E12731.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 27 CHARLES KOCH INSTITUTE 27-4967732 Page 2 Information. Complete this part to provide the explanations required by Part I, lines 3, 4d, Sh, 6b, and 7, as applicable. Also complete this part to provide any other additional information (see instructions). Schedule E (Form 990 or 990-EZ) (2011) 1ifflij1Supplemental RACIALLY NONDISCRIMINATORY POLICY FORM 990, SCHEDULE E, PART I, LINE 3 THE ORGANIZATION HAS PUBLISHED ITS RACIALLY NONDISCRIMINATORY POLICY IN THE WASHINGTON TIMES. Schedule E (Fonn 990 or 990-EZ) (2011) JSA 1E1501 2.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 28 Compensation Information SCHEDULEJ (Form 990) OMB No. 1545-0047 For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees ._ Complete If the organization answered "Yes" to Form 990, Part IV, line 23. ._ Attach to Form 990 . ._ See separate Instructions. Department of the Treasury Internal Rewnue Service Name of the organization ~11 Open to Public Inspection Employer Identification number CHARLES KOCH INSTITUTE 27-4967732 Yes No 1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Form 990, Part VII, Section A, line 1a. Complete Part Ill to provide any relevant information regarding these items. First-class or charter travel Travel for companions Tax indemnification and gross-up payments Discretionary spending account ~ Housing allowance or residence for personal use Payments for business use of personal residence Health or social club dues or initiation fees Personal services (e.g., maid, chauffeur, chef) b If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part Ill to explain . . . . . . . . . . . . . • • . • . . . . . . • . • . • • • • • • • • • . . . . . • • • . . . • . . . • . • • . • 1--1_b-+---+---2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a?. • . . . . • _2 ____ _ 3 Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director. Explainin Part Ill. § § Compensation committee Independent compensation consultant Form 990 of other organizations Written employment contract Compensation survey or study Approval by the board or compensation committee 4 During the year, did any person listed in Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization: a Receive a severance payment or change-of-controlpayment? . • • • • . • • • . • • • • • • • • • • • b · Participate in, or receive payment from, a supplemental nonqualified retirement plan? ....•.. c Participate in, or receive payment from, an equity-based compensation arrangement?...•••••• If ''Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part Ill. 5 4a 4b 4c x x x Only section 501(c)(3) and 501(c)(4) organizations must complete lines 5-9. For persons listed in Form 990, Part VII, Section A, line 1a, did the organizationpay or accrue any compensation contingent on the revenues of: Sa a The organization? • • • • • • .. • • • . • • • • • . b Any related organization? • • • • • • • • • • • • • Sb If "Yes" to line 5a or 5b, describe in Part Ill. For persons listed in Form 990, Part VII, Section A, line 1a, did the organizationpay or accrue any 6 compensation contingent on the net earnings of: 6a a The organization? . . . . . • . . • . . • • • • b Any related organization? . . . . • • . • . • • • • • • 6b If "Yes" to line 6a or 6b, describe in Part Ill. 7 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed payments not described in lines 5 and 6? If "Yes," describe in Part Ill • . • • • • • • • • • • • • • • • • • . . • . . _1 __ 8 Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If ''Yes," describe in Part Ill . . • . . • • • . • • • . . • • • • . • • • • • • • • • • • • • • • • • • • . . • • . . . • . • . • • • • • • . 1---1------ Complete Department of the Treasury Internal Re\181\ue Service ~11 If the organization answered "Yes" to Form 990, Part IV, llne 33, 34, 35, 36, or 37. 1111> Attach to Form 990. 1111> See separate Instructions. Open to Public Inspection Name of the organization Employer Identification CHARLES KOCH INSTITUTE 27-4967732 number Identification of Disregarded Entities (Complete if the organization answered "Yes" to Form 990, Part IV, line 33.) !ifflJJ 1 (b) Primary activity (a) Name, address, and EIN of disregarded entity Ul TESTUDO,_LLC _______________________________ 27-4967732 4201 WILSON BLVD #110-493 ARLINGTON, VA 22203 (c) Legal domicile (state or foreign country) (d) Total income (f) Direct controlling entity (e) End-of-year assets __ I EVENTS ~l _______________________________________________________ _ 0 DE OICKI ~l ______________________________________________________ _ _ ~l _______________________________________________________ (§l_______________________________________________________ _ (!il_______________________________________________________ _ Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" to Form 990, Part IV, line 34 because it had liFJJITIone or more related tax-exempt organizations during the tax year.) (a) Name, address, and EIN of related organization (b) Primary activity (c) Legal domicile (state or foreign country) (d) Exempt Code section (e) Public charity status (if section 501 (c)(3)) (f) Direct controlling entity (g) Section 512(b)(13) · controlled entity? Yes Ul CHARLES P.O. KOCH FOUNDATION----------------BOX 2256 ~l CLAUDE P.O. R._ LAMBE CHARITABLE P.O. WICHITA, WICHITA, & PROGRESS FUND, me . ____________ WICHITA, BOX 2256 _ KS 67201 No GRANT MAKING KS J01 (C) (3) PF N/A x GRANT MAKING KS 501 (C) (3) PF N/A x GRANT MAKING KS 501 (C) (3) PF N/A x 48-0935563_ FOUNDATION ------- BOX 2256 ~l KNOWLEDGE 48-0918408 KS 67201 54-1899251_ KS 67201 -~l _____________________________________________ _(§l_____________________________________________ _(!il_____________________________________________ _(!l _____________________________________________ For Paperwortc Reduction Act Notice, see the Instructions Schedule for Form 990. R (Form 990) 2011 JSA 1E13071.000 5425DW K922 11/14/2012 3:05:13 PM V 11-6.1 094135 PAGE 37 CHARLES KOCH INSTITUTE Schedule 27-4967732 Page R (Fonn 990) 2011 111111 Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to Form 990, Part IV, line 34 because it had one or more related orgc1nizationst~ea~d as a p~rtnership during the tax year.) (d) (e) (f) (g) (h) (I) (a) (b) (c) OJ Name, address, and EIN of related organization Primary activity Legal domicile (state or foreign country) Direct controlling entity Predominant income (related, unrelated, excluded from tax under sections 512-514) Share of total income Share of end-