990 LI Department of the Treasury Return of Organization Exempt From Income Tax Under section 501(c 527, or 4947(a)(1) of the Internal Revenue Code (except blac lung benefit trust or private foundation) OMB No 1545-0047 2006 Open to Public Internal Revenue Service The organization may have to use a copy of this return to satisfy state reporting requirements '"5PeCti?" A For the 2006 calendar year, or tax year beginning 1 0/0 1 2006, and ending 9/ 30 2 007 3 Check If apphcable Employer Identification Number Address change Name Change 0: e_ Telephone number lnitial return spEUR??tic 7 '8 Final return "tfo'tr'i:c- Cash '1 Accrual Amended return Application pending Web site: Organization type (check only one) Check here if the organization is not a 509(a)(3) supporting organization and its gross receipts are normally not more than $25,000 A return is not required, but if the organization chooses to file a return, be sure to file a complete return Other (specify) 0 Section 501(c)(3) organizations and charitable trusts must attach a complete Sc (Form 990 or 990-EZ). edule A (3) Is this a group (If attach 501(c) 3 4 (insert no) El 4947(a)(1)or 527 Check Gross receipts Add lines 6b, 8b, 9b, and 10b to line 12 214,105. andl are not applicable to section 527 organizations No BNO mm return for affiliates' Yes Yes If 'Yes,' enter number of affiliates (C) Are all affiliates included?' a list See instructions Is this a separate return filed by an organization covered by a group ruling? I has Group Exemption Number El if the organization IS not required to attach Schedule (Form 990, 990-EZ, or 990-PF) 1 Revenue, Expenses, and Changes in Net Assets or Fund Balances (See the instructions.) 1 Contributions, gifts, grants, and similar amounts received a Contributions to donor advised funds 1 a Direct public support (not included on line 1a) 1 214, 105 . Indirect public support (not included on line 1a) 1c gd Government contributions (grants) (not included on line 1a) 1d 214, 105. noncash 214, 105. Program service revenue including government fees and contracts (from Part VII, line 93) 3 Membership dues and assessments 31 Interest on savings and temporary cash investments Dividends and interest from securities Cfia Gross rents 6a Less rental expenses 6b 2c Net rental income or (loss) Subtract line 6b from line 6a 3 Other investment income (describe U3'a Gross amount from sales of assets other (A) Securmes (B) other than inventory 8a 2 Less cost or other basis and sales expenses 8b Gain or (loss) (attach schedule) 8c Net gain or (loss) Combine line 8c, columns (A) and (8) 8d 9 Special events and activities (attach schedule) If any amount is from gaming, check here a Gross revenue (not including of contributions . reported on line 1b) 9a i a Less direct expenses other than fundraising expenses 9b Net income or (loss) from special events Subtract line 9b from line 9a 9c 10a Gross sales of inventory, less returns and allowances 10a 3 Less cost of goods sold 10b Gross profit or (loss) from sales of inventory (attach schedule) Subtract line 10b from line 10a 10c 11 Other revenue (from Part VII, line 103) 11 12 Total revenue. Add lines 1e8d, 9c, 10c, and 12 214, 105 . 13 Program services (from line 44, column 13 186, 627 . 1; 14 Management and general (from line 44, column 14 21 645. 5 15 Fundraising (from line 44, column Payments to affiliates (attach schedule) i~ D: 16 5 17 Total expenses. Add lines 16 and 44, column (A) . 17 211, 378 . A 18 Excess or (deficit) for the year Subtract line 17 from Net assets or fund balances at beginning of year (frorr 7'3, cuiumn 19 1, 340 . 20 Other changes in net assets or fund balances (attach explanation) 20 5 21 Net assets or fund balances at end of year Combine lines 18BAA For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. TEEAO109L 01/22/07 Form 990 (2006) 'fr 5 Form 9970 (2006) ' Part II Istatement of Functional Ex required for section 501(c)(3) and CIRCLE OF FRIENDS FOR AMERICAN VETERANS Penses All organizations must complete column (A 4) organizations and section 4947(a)( 54-1847890 Page 2 Columns (B), (C), and (D are nonexempt aritable trusts but optional )for others Do not include amounts reported on line 33 (B) Program (C) Management 61:, 8b, 9b, 10b, or 16 of Part! (A)T?ta' services and general 22a Grants paid from donor advised 0 1 f: I funds (attach sch) fig ii; (cash 3' non-cash 3 0 3% If this amount includes . foreign grants, check here 23 22b Other grants and allocations (att sch) (cash non-cash If this amount includes foreign grants, check here El 22b 23 Specific assistance to individuals (attach schedule) 23 24 Benefits paid to or for members (attach schedule) 24 25a Compensation of current officers, directors, key employees, etc listed in Part V-A (attach schCompensation of former officers, directors, key employees, etc listed in Part V-B (attach schCompensation and other distributions, not included above, to disqualified persons (as defined under section 4958(f)(l)) and persons described in section 4958(c)(3)(B) (attach scheduleSalaries and wages of employees not included on lines 25a, b, and 26 27 Pension plan contributions not included on lines 25a, b, and 27 28 Employee benefits not included on lines 25a - 27 28 29 Payroll taxes 29 30 Professional fundraising fees 30 31 Accounting fees 31 32 Legal fees 32 33 Supplies 33 5,280. 3,520. 1,760. 34 Telephone 34 8,223. 3,767. 3,525. 931. 35 Postage and shipping 35 36 Occupancy 36 4,200. 2,221. 950. 1,029. 37 Equipment rental and maintenance 37 38 Printing and publications 38 9,410. 5,360. 2,904. 1,146. 39 Travet 39 16,344. 16,344. 40 Conferences, conventions, and meetings 40 41 Interest 41 42 Depreciation, depletion, etc (attach schedule) 42 43 Other expenses not covered above (itemize) 43a 167,921. 155,415. 12,506tThota expertises Add 223' mu aniza ions com in co umns -15) 44 211,378. 186,627. 21,645. 3,106. Joint Costs. Check if you are following SOP 98-2 Are any Joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? If 'Yes,' enter the aggregate amount of these ]Oll'1t costs Yes No (ii) the amount allocated to Program services the amount allocated to Management and general to Fundraising and (iv) the amount allocated BAA TEEA0102L 01i'23i'07 Form 990 (2006) I Form 990 (2006) [Part CIRCLE OF FRIENDS FOR AMERICAN VETERANS I Statement of Program Service Accomplishments 54-1847890 Page 3 Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization in such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part the organization's programs and accomplishments What IS the organization's primary exempt purpose? All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of See Statement 2 clients served. gublications issued, etc Discuss achievements that are not measurable izations and 4 47(a)(l) nonexempt charitable trusts must also enter the amount Ion grants an a Program Service Expenses (Required for 501(c)(3) and (4) organizations and 4947(a)(1) trusts. but optional for others a SEE STATEMENT 3 (Grants and allocations lf this amount includes foreign grants, check here I-1 186, 627 . (C-i_ra_nts and -- -- -- -- t_his a'ie_ck_hFere' (G_ra_nts Enfi ?iiEc2iBrTs_ Eu? Jne7ci<_h2rE fc?a?itE Qnfi ?iiScEtEarTs_ ms -- 3} Eu? VTZI Other program services (Grants and allocations If this amount includes foreign grants, check here I-1 Total of Program Service Expenses (should equal line 44, column (B). Program services) 186, 627 . BAA 01ll8l07 Form 990 (2006) no Form 990 (2006) IPart IV I Balance Sheets (See the instructions.) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page 4 Note: Where required, attached schedules and amounts within the description column should be for end-of- year amounts only Beginning of year (3) End of year 47a Accounts receivable Less allowance for doubtful accounts 48a Pledges receivable Cash -- non-interest-bearing Savings and temporary cash investments Less allowance for doubtful accounts Grants receivable employees (attach schedule) Receivables from other disqualified persons (as defined under section 4958(f)(I)) 2,229. 45 5,851. and persons described in section 4958(c)(3)(B) (attach schedule) 51 a Other notes and loans receivable (attach schedule) Less allowance for doubtful accounts Inventories for sale or use Prepaid expenses and deferred charges a Investments -- publicly-traded securities Investments -- other securities (attach sch) a Investments -- land, bU lClIl1gS, equipment basis Less accumulated depreciation (attach schedule) Investments other (attach schedule) a Land, buildings, and equipment basis Less' accumulated depreciation (attach schedule) Statement 3 Other assets, including program-related investments (describe 51a 50 a Receivables from current and former officers, directors, trustees, and key 50a 50b 51b 51c 55a Cost Cost FMV FMV 55b 57a 57b Total assets (must equal line 74) Add lines 45 through 58 2,229. 5,851. 60 61 62 63 64 mm-4-r-wb-r 65 66 Accounts payable and accrued expenses Grants payable Deferred revenue Loans from officers, directors, trustees, and key employees (attach schedule) a Tax-exempt bond liabilities (attach schedule) Mortgages and other notes payable (attach schedule) Other liabilities (describe Total liabilities. Add lines 60 through 65 889. 1,784. 889. 1,784mammwb HM2 74 through 69 and lines 73 and 74. Unrestricted Temporarily restricted Permanently restricted 70 through 74 Capital stock, trust principal, or current funds Paid-in or capital surplus, or land, building, and equipment fund Retained earnings, endowment, accumulated income, or other funds Organizations that follow SFAS 117, check here and complete lines 67 Organizations that do not follow SFAS 117, check here and complete lines Total net assets or fund balances. Add lines 67 through 69 or lines 70 through 72 (Column (A) must equal line 19 and column (B) must equal line 21) Total liabilities and net assetslfund balances. Add lines 66 and 73 1,340. 4,067. 1,340. 4,067. 2,229. 5,851. ID 0ll18i'07 Form 990 (2006) Form 990 (2006) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page 5 Part I Reconciliation of Revenue per Audited Financial Statements with Revenue per Return (See the instructions.) a Total revenue, gains, and other support per audited financial statements a 214 105 . Amounts included on line a but not on Part 1, line 12 I 1Net unrealized gains on investments b1 23 2Donated services and use of facilities b2 '3 3Recoveries of prior year grants b3 4Other (specify) b4 23: Add lines b1 through b4 Subtract line from line a 214, 105 . Amounts included on Part 1, line 12, but not on line a: 1 Investment expenses not included on Part 1, line 6b d1 2Other (specify) d2 at Add lines d1 and d2 Total revenue (Part 1, line 12) Add lines and 214 105 . [Fart IV-B Reconciliation of Expenses per Audited Financial Statements with Expenses per Return a Total expenses and losses per audited financial statements a 211 378 . Amounts included on line a but not on Part I, line 17 *3 1 Donated services and use of facilities b1 2Pri0r year adjustments reported on Part I, line 20 b2 3l_osses reported on Part 1, line 20 b3 4Other (specify). b4 In- Add lines b1 through b4 Subtract line from line a 211 378 . Amounts included on Part 1, line 17, but not on line a: 1 Investment expenses not included on Part I, tine 6b d1 20ther (specify) 0'2 WAR. Add lines d1 and d2 cl Total expenses (Part I, line 17) Add lines and ct 211, 378. P311 Current Officers, Directors, Trustees, and Key Employees (List each person who was an officer, director, trustee. or key employee at any time during the year even if they were not compensated (See the instructions.) (B) Title and average hours (C) Compensation (D) Contributions to (E) Expense on Name and address compensation plans President 0 . 0 . 0 . _2_1 .2 5 0 FALLS CHURCH, VA 22046 Secretary 0 . 0 . 0 . _1_1 5.5. 5 ALEXANDRIA, VA 22314 0 . 0 . 0 . .711 Q5. 5 LAUREL, MD 20707 lgC_D91\_11gL? Treasurer . 0 . 0 . _7_1 18. IQNE 5 ALEXANDRIA, VA 22306-1120 STONE SCHOOL LANE 5 TEEA0105L 01/18/07 Form 990 (2006) 4 Form 990 (2006) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page 6 Current Officers, Directors, Trustees, and Key Employees (continued) Yes No 75a Enter the total number of officers, directors, and trustees permitted to vote on organization business as board meetings -{no Are any officers, directors, trustees, or key employees listed in Form 990, Part V-A, or highest compensated employees listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed in Schedule A, Part ll-A or ll-B, related to each other through family or business relationships? If 'Yes,' attach a statement that - -- identifies the individuals and explains the re ationship(s) 75b I Do any officers, directors, trustees, or key employees listed in form 990, Part V-A, or highest compensated employees listed in Schedule A. Part I, or highest compensated professional and other independent contractors listed in Schedule A, Part ll-A or ll-B, receive compensation from any other or anizations, whether tax exempt or taxable, that are related Lair ii. to the organization? See the instructions for the definition 0 'related organization' 75c If 'Yes,' attach a statement that includes the information described in the instructions I 9 Does the organization have a written conflict of interest policy? 75d Former Officers, Directors, Trustees, and Key Employees That Received Compensation or Other Benefits (If any former officer, director, trustee, or key employee received compensation or other benefits (described below) dhuring the year, list that person below and enter the amount of compensation or other benefits in the appropriate column See instructions.) (C) (Cfompensation (D) Contributtionsf to (E) Expednseh (B) oans an I not paid, employee ene it account an ot er (A) Name and address Advances enter -0-) plans and deferred allowances compensation plans _N9Tle I Paift Other Information (See the instructions.) Yes No 76 Did the organization make a change in its activities or methods of conducting activities? If 'Yes,' attach a detailed statement of each change 76 77 Were any changes made in the organizing or governing documents but not reported to the 77 If 'Yes,' attach a conformed copy of the changes 78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? 78a If 'Yes,' has it filed a tax return on Form 990-T for this year? 79 Was there a liquidation. dissolution, termination, or substantial contraction during the year? If 'Yes,' attach a statement 80a ls the organization related (other than by association with a statewide or nationwide organization) through common membership. governing bodies. trustees, officers, etc. to any other exempt or nonexempt organization? If 'Yes,' enter the name of the organization i 13 and check whether it is exempt or nonexempt 81 a Enter direct and indirect political expenditures (See line 81 instructions) 81 a . . Did the organization file Form 1120-POL for this year? 81 BAA Form 990 (2006) TEEA0106L 01/18/07 1- i' Form 990 (2006) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page 7 I Part VI [Other Information (continued) Yes No 82 aDid the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental value? 82a I 'Yes,' you may indicate the value of these items here Do not include this amount as revenue in Part I or as an expense in Part II (See instructions in Part I 82 bl 83a Did the organization comply with the public inspection requirements for returns and exemption applications? 83a Did the organization comply with the disclosure requirements relating to quid pro quo contributions? 83b 84a Did the organization solicit any contributions or gifts that were not tax deductible? 84a If 'Yes,' did the organization include with every solicitation an express statement that such contributions or gifts were 3 not tax deductible 84b 85 501(c)(4), (5), or (6) organizations a Were substantially all dues nondeductible by members? 85a Did the organization make only in-house lobbying expenditures of $2,000 or less? 85b N.VA If 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year 5 xi Dues, assessments, and similar amounts from members 85c Section l62(e) lobbying and political expenditures 85d 2; $5 3? Aggregate nondeductible amount of section 6033(e)(l)(A) dues notices 85e A, Taxable amount of lobbying and political expenditures (line 85d less 85e) 85f Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? 85g If section 6033(e)(l)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of --. -- --. -- dues allocable to nondeductible lobbying and political expenditures for the following tax year? 85h 86 501(c)(7) organizations Enter a Initiation fees and capital contributions included on am i ,5 line 12 86a Gross receipts, included on line 12, for public use of club facilities 86b 87 organizations Enter a Gross income from members or shareholders 87a bGross income from other sources (Do not net amounts due or paid to other sources 3? fin against amounts due or received from them 87b 88 aAt any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301 7701-2 and 301 7701-3? If 'Yes,' complete Part IX 88a At any time during the year, did the organization, directly or indirectly, own a controlled entity within the meaning of section 512(b)(13)? If 'Yes,' complete Part Xl 88b 89a 501(c)(3) organizations Enter Amount of tax imposed on the organization during the year under fl section 4911 . section 4912 . section 4955 0 . -- - . 501(c)(3) and 501(c)(4) organizations Did the organization engage in any section 4958 excess benefit transaction durin the year or did it become aware of an excess benefit transaction from a prior year? If 'Yes,' attach a statement explaining each transaction 89b Enter Amount of tax imposed on the organization managers or disqualified persons during the I year under sections 4912, 4955, and 4958 0 . Enter Amount of tax on line 89c, above, reimbursed by the organization . mg All organizations At any time during the tax year, was the organization a party to a prohibited tax shelter transaction? 89e All organizations Did the organization acquire a direct or indirect interest in any applicable insurance contract? 89f For supporting organizations and sponsoring organizations maintaining donor advised funds Did the supporting organization, or a fund maintained by a sponsoring organization, have excess business holdings at any time during -- the year? 89g 90a List the states with which a copy of this return is filed Number of employees employed in the pay period that includes March 12, 2006 (See instructions 90b 0 91 a The books are in care of -- Telephone number t' _7g Located at _2 ZIP 4 _2_2 At any time during the calendar year, did the organization have an interest in or a signature or other authority over a Yes NO financial account in a foreign country (such as a bank account, securities account. or other financial account)? 91 lf 'Yes,' enter the name of the foreign country See the instructions for exceptions and filing requirements for Form TD 90-22.1, Report of Foreign Bank and 1 Financial Accounts BAA TEEA0107L 01/18/07 Form 990 (2006) Form 990 (2006) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page 8 Pai't,Vl Other Information (continued) Yes No At.any time during the calendar year, did the organization maintain an office outside of the United States? L91 If 'Yes,' enter the name of the foreign country 92 Section 4947(a)( 1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041 -- Check here A and enter the amount of tax-exempt interest received or accrued during the tax year 92 I Analysis of Income-Producing Activities (See the instructions.) Unrelated business income Excluded by section 512, 513, or 514 (E) Nate: Enter grosts camounts unless (A) (B) (C) (D) Related or exempt 0 "7 "53 9 Business code Amount Exclusion code Amount function income 93 Program service revenue Medicare/Medicaid payments Fees contracts from government agencies 94 Membership dues and assessments 95 Interest on savings temporary cash 96 Dividends interest from securities 97 Net rental income or (loss) from real estate a debt-financed property not debt-financed property 98 Net rental income or (loss) from pers prop 99 Other investment income 3' fiat 100 Gain or (loss) from sales of assets other than inventory 101 Net income or (loss) from special events 102 Gross profit or (loss) from sales of inventory 103 Other revenue a 104 Subtotal (add columns (B), (D), and I 105 Total (add line 104, columns (B), (D), and 0 . Note: Line 105 plus line ld, Part I, should equal the amount on line 12, Part I I Part Relationship of Activities to the Accomplishment of Exempt Purposes (See the instructions.) Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes) I Part IX Information Regarding Taxable Subsidiaries and Disregarded Entities (See the instructions.) (A) (B) (C) (D) (E) Name, address, and EIN of corporation, Percentage of Nature of aci_,V,t,e5 Total End-of-year partnership, or disregarded entity ownership interest income assets I Pfirt I Information Regarding Transfers Associated with Personal Benefit Contracts (See the instructions; a Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? Yes No Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract'? Yes No Note: if 'Yes' to file Form 8870 and Form 4720 (see instructions) BAA TEEA0108L 01/19/07 Form 990 (2006) -Form 990 (2006) CIRCLE OF FRIENDS FOR AMERICAN VETERANS 54-1847890 Page?) I Part XI I Information Regarding Transfers To and From Controlled Entities. Complete only If the organization I5 a controlling organization as defined in section 5l2(b)(l3). Yes No 106 Did the reporting organization make any transfers to a controlled entity as defined in section 5l2(b)(l3) of the Code? If 'Yes,' complete the schedule below for each controlled entity (A) (B) (C) Name, address, of each Employer Identification Description of (D) controlled entity Number transfer Am?U"t 0f transfer a Totals Wig Yes No 107 Did the reporting organization receive any transfers from a controlled entity as defined in section 5l2(b)(l3) of the Code? If 'Yes.' complete the schedule below for each controlled entity (A) B) Name, address, of each Employer tdentification of (9) controlled entity Number transfer Am?l"" 0' a Totals I "gm Yes No 108 Did the organization ha a binding written contract in ect 0 August 17, 2006, covering the interest, rents. royalties. and annuities described i stion 107 knowledge and benefit I5 72,4/v 47 "ere 4 /437 or print name and title fir Preparer's fl Dam Chfick 'f (See p,e_ signature John J. Wall, CPA 7 0 7 Ziipioyed parer 5 (or MARTIN WALL, . . U59 B21 oyed).d 1633 Street, NW, Suite 230 EIN WASHINGTON, DC 20009 Phone no (202) 332-3566 BAA Form 990 (2006) 10L SCHEDULE A 5 (Form 990 or Organization Exempt Under Section 501(c)(3) (Except Private Foundation) and Section 501(e), 501 501(k), 501 or 4947(a)(1) Nonexempt Charitable Trust Supplementary Information - (See separate instructions.) Department of the Treasury Internal Revenue Service MUST be completed by the above organizations and attached to their Form 990 or 990-EZ. OMB No 1545-0047 2006 Name of the organization CIRCLE OF FRIENDS FOR AMERICAN VETERANS (See instructions. List each one. If there are none, enter 'None.') Employer identification number 54- 1847 8 90 Paif,t I Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees Name and address of each employee aid more than 0,000 Title and average hours per week devoted to position Compensation Contributions to employee benefit plans and deferred compensation Expense account and other allowances Total number of other employees paid over $50,000 0 'e /at [Part Compensation of the Five Highest Paid Independent Contractors for Professional Services (See instructions. List each one (whether individuals or firms). If there are none, enter 'None.') Name and address of each independent contractor paid more than $50,000 Type of service Compensation 5 102 150 . ?e .3 Total number of others receiving over $50,000 for professional services ll -- I Compensation of the Five Highest Paid Independent Contractors for Other ervi C65 (List each contractor who performed services other than professional services, whether individuals or firms. If there are none, enter 'None.' See instructions.) Name and address of each independent contractor paid more than $50,000 Type of service Compensation . =3 Total number of other contractors receiving 3 over $50,000 for other services 0 3 <