sarah scaife foundation 251113452 2008 04f9f66csearchable

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Form990-PF &>apartment of the Treasury Internal Revenue SerV1ce

Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust

Treated as a Private Foundation

OMB No 1545-0052

~@08 Note: The foundation ma be able to use a co of this return to sat1s state re ortin re u1rements

For calendar year 2008, or tax vear beainnina , 2008, and ending , 20 G Check all that aoolv I I Initial return I I Final return I I Amended return I I Address change I I Name change

Use the IRS label.

Name of foundation

SARAH SCAIFE FOUNDATION INCORPORATED

A Employer ldent1ficat1on number

25-1113452 Otherwise, Number and street (or P O box number 1f ma111s not delivered to street address) Room/suite 8 T•lephone number (ue pege 10 or lhe ,,..1,uc1ic ... )

301 GRANT STREET print

or type. See Specific ONE OXFORD CENTRE, SUITE 3900 Instructions. City or town, state, and ZIP code

PITTSBURGH PA 15219

H Check type of organization llsJ Section 501 (c.1@2 exempt private foundation n Section 494 7(a)( 1) nonexempt charitable trust I I Other taxable private foundation

( 412) 392-2900 C If exemption apphcat1on ts

pending, check here • • • • • •

D 1 F ore1gn organizations, check here

2 Foreign organizations meeting the 85% test, check here and attach compulat1on • • • • • • • •

:tj

E If private foundation status was terminated D I Fair market value of all assets at end J Accounting method ~ Cash LJ Accrual undor section 507(b)(1)(A), check horo , ...

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

16) .,.. $ 2 2 9 7 9 7 6 6 3. (Part I, column (d) must be on cash basis)

•::r.r.,••Analysis of Revenue and Expenses (The total of amounts m columns (b), (c). and (d) may not necessanly equal the amounts m column (a) (see page 11 of the mstruct,ons) )

(a) Revenue and expenses per

books

(b) Net investment income

If the foundation 15 m a 60-month lerm1nat1on n under section 507(b){1)(8) check here • ....

(c) AdJusted net income

(d) Disbursements for charitable

purposes (cash basis onlv)

1

2

3

4

Contnbuho~s, grants etc, received (attach schedule) • Ch k ... LxJ 1f the fou ndat,on 1s not required to

ec attach Sch B ••••••• , •• 1-----------+----------+----------+---------lnlerest on savings and lemporaiy cash investments

D1v1dends and interest from securities 8 147 056. 8 147 056. STMT 1

5 a Gross rents •••• , •••••••••••• i---------,-----rr======j=':=======;;;;~;;;;--------b Net rental income or (loss)--------- 1----------+------l!---.i.,t-l'=--'-1'-"'*'i.-;:.i,:,::c-A...---H!----------

--r.= r;=, """ r;=o " 0 ,,_ ,,_ u Lf u::.vcuvcu Net gain or (Joss) from sale of assels not on hne 1 O -1 575 419. , . Cl>

:J c: Cl> > Cl> a::

6a b I(; I

~~ av 1 9 ,nnq ~;~:t~ ~~~1~~~": for all 6 5, 6 7 6, 0 2 4. 1-----------+-----ll--+-~+--~-------'-'-'+'---------

.,,

7

8

Cap1tal gain net income (from Part IV. hne 2)

Net short-term capital gain

9 Income mod1f1cat1ons 1 0 a Gross sales less returns

and allowances • • • • b Less Cost of goods sold

I I

c Gross profit or (loss) (attach schedule)

11 Other income (attach schedule) •••

12 Total. Add Imes 1 throuah 11 ....

1 3 Compensation of officers. directors, lrustees, elc

14 Other employee salaries and wages •••

:Jl 1 5 Pension plans, employee benefits •••• c: 8. 1 6 a Legal fees (attach schedule) • • • S.T !'fr . 3.

~ b Accounting fees (attach schedule)S,T !'fr . 4.

c Other professional fees (attach scfieBMi) • =1. Cl> >

17 Interest ••••••••••••••••••

STMT 24

-168 355.

6 403, 282. 7

612 4 67.

374, 551.

296. 068.

2, 851.

59 94 8.

509 541.

~

c,...__ . ~

(\l . . II ' 10 i

n mli=b'\! i IT - i I

-168 355. NONE STMT 2

978 701. NONE

99 836. NONE 512 631.

18 304. NONE 356, 247.

30 791. NONE 265. 277.

NONE NONE 2 851.

29 97 4. NONE 29.974.

253 541. NONE 256. 000.

~ !!! 18 c:

19 e 173 902. 5 712. NONE 49 190.

2 284. NONE NONE

Taxes (attach schedule) (see page 14 of the 1nstruct1ons} *1-----~"-=e<-=--=c.=.c..+-----=--'-=-='-'-+-------===+------'-"-'-"-"~ Deprec1at1on (attach schedule) and depletion. t------"'-'-='--'-'-+------~==+-------===+--------

"t:I 20 <(

"t:I 21 c: "' 22 ~ 23 :.... ~ 24 Cl> Q. 0

25

26

27

Occupancy ••••••••••••

Travel, conferences. and meetings •

Printing and pubhcat1ons •••••

Other expenses (attach schedule) S.TMT • 7.

Total operating and administrative expenses.

218

40

109

790. 22

928.

706. 5

7 54. NONE 196 036.

NONE NONE 40 928.

207. NONE 104 4 99.

? 401 o,i; 466 119 N()NJc 1 R13 633

20 909 000. 16 169 000.

Add Imes 13 through 23 .••.•••••• 1----'....__ .... ._.. ..... ...._+----;..i,""'" ................ +------_..""-' ..... +---......_ ........... ...._....., ....... Contributions. gifts. grants paid .S.T MT • 8 •• 1----~~~~~--1----------+----------t----~~~=--=~ Total ax.pan&aa and d1sburaamanta Add lines 24 and 25 2, 310 036 466 119. NONE 17 982 633

Subtract line 26 from line 12

-16 906 754. a Excesa of revenue over expenses •nd disbursements • • t--~~~=--=~~~-t----------+----------t--------b Net investment income (1f negative. enter -0-) 7 512. 582.

c Ad1usted net income (1f neoahve, enter -0-l •• N(])NE

fso,[ Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions.++ STMT 6

BE1410 1 000

Form 990-PF (2008)

77270J 827G 04/23/2009 15:43:20 V08-5 4

Form 990-PF {2008) 25-11134 52 Pacie 2

11!1111 Balance Sheets Attached schedules and amounts 1n the Beginning of year End of year description column should be for end--0f-year

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

1 Cash - non-interest-bearing • .. . .. 32. 748. 46. 680. 46 680.

2 Savings and temporary cash investments • .. . . . . . .. 8 759 048. 14 126 34 5. 14 126 34 5.

3 Accounts receivable• ___________________ NONE

Less allowance for doubtful accounts • --------- NONE NONE NONE NON E

4 Pledges receivable • ------------------------Less allowance for doubtful accounts • -------------

5 Grants receivable . . . . .. . . . . . . . . 6 Receivables due from officers. directors, trustees, and other

d1squal1f1ed persons (attach schedule) (see page 15 of the instrud1ons)

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

Less allowance for doubtful accounts • -------------VI 8 Inventories for sale or use . . . . .. . . . . . . . . ai 9 Prepaid expenses and deferred charges •• . STt1I'. 9 . . 6 840. 6 985. 6 98 5. VI VI

10 a Investments - US and state government obligations (attach schedule)*"." 50 470 075. 40 357 572. 41 961. 139. ct b Investments - corporate stock (attach schedule) • ~1't11'. ). l . 141 184 334. 132 517 14 7. 160 410 878.

c Investments - corporate bonds (attach schedule). :,rr:n:: .1? . 3 962. 966. 2 030 536. 2 066 81 7. 11 Investments - land. bu1ld1ngs, • and equipment basis ------------------Less accumulated depreoallon •

(attach schedule) - - - - - - - - - - ------ - --12 Investments - mortgage loans .. . . . . .. .... 13 Investments - other (attach schedule) •••••• STt1I'. ). ;3 • 6 045 144. 9 211 4 20. 11 176 671. 14 Land, buildings, and • S TMT 19 8 2 5 0 51

equipment basis -------------L---·-Less accumulated depreciation • 8 2 2 9 0 3 4 4 32. 2 14 8. 2 14 8. (attach schedule) - - - - - - - - - - - - - - -'- - - -·-

15 Other assets (describe . ____________________ )

16 Total assets (to be completed by all filers - see the instructions Also. see page 1, item I) • • 210 465 587. 198 298 833. 229 797 66 3.

17 Accounts payable and accrued expenses

18 Grants payable .. . . . . . . 4 442. 000. 9. 182 000. VI 19 Deferred revenue E .. . . . .

20 Loans from officers. directors, trustees, and other disqualified persons :c 21 Mortgages and other notes payable (attach schedule) • CV .. :'.j

22 Other hab1l1t1es (describe • ___________________ )

23 Total habtlrties (add lines 17 through 22) •• .. . . . . . . 4 442 000. 9 182 000.

Foundations that follow SFAS 117, check here •W and complete lines 24 through 26 and lines 30 and 31.

VI 206 023 587. 189 116 833. Cl> 24 Unrestricted • .. u

c: 25 Temporarily restricted CV . . . . . . .... iii m 26 Permanently restncted • .. . . . . "C Foundations that do not follow SFAS 117, c: .o ::,

check here and complete lines 27 through 31. LL .. 27 Capital stock, trust principal. or current funds • 0 .. . . . . .

VI 28 Paid-in or capital surplus, or land. bldg , and equipment fund ai .. ~ 29 Retained earnings, accumulated income, endowment. or other funds

~ 30 Cl>

Total net assets or fund balances (see page 17 of the

z instructions) • .. . . . . . . . . . . . . 206 023 587. 189 116 833. 31 Total hab1hties and net assets/fund balances (see page 17

of the instructions) •• . . . . .. . . . . . 210 465 587. 198 298. 833. ·~ --··~11• Anatvsis of Changes in Net Assets or Fund Balances 1 Total net assets or fund balances at beginning of year - Part II, column (a), line 30 (must agree with

end-of-year figure reported on pnor year's return) • 1 206 023 587.

2 Enter amount from Part I, line 27a .. 2 -16 906 754. . . 3 Other increases not included ,n line 2 (1tem12e) • 3 -------------------------------------4 Add lines 1, 2, and 3 4 189 116 833. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . 5 Decreases not included ,n hne 2 (1tem12e) • 5 ----------------------------------------6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column (b), line 30 • .. 6 189. 116 833.

JSA **STMI' 10 Form 990-PF (2008) 8E1420 1 000

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Form 990-PF (2008) 25-1113452 ·~ri·l'f--Caoital Gains and Losses for Tax on Investment Income (a) List and describe the k1nd(s) of property sold (e g . real estate.

(D) How (c) Date (d) Date sold acquired acquired 2-story brick warehouse, or common stock, 200 shs MLC Co)

P..Purd'\ase (mo . day, yr ) (mo . day, yr ) D-Donat1on

1a SEE STMT 24 b c d e

(e) Gross sales pnce (f) Depreciation allowed (g) Cost or other basis (h) Ga,n or (loss) (or allowable) plus expense of sale (e) plus (f) minus (g)

a b c d e Comolete onlv for assets showina aain 1n column (h) and owned by the foundation on 12/31/69 (I) Gains (Col (h) gain minus

(1) FM V as of 12/31/69 0) AdJusted basis (k) Excess of col (1) col (k), but not less than -0-) or as of 12/31/69 over col O). 1f any Losses (from col (h))

a b c d e

2 Capital gain net income or (net capital loss) { If gain, also enter 1n Part I, line 7 } ..... If (loss), enter -0- 1n Part I, hne 7 2 -1 575 419. 3 Net short-term capital gain or (loss) as defined 1n sections 1222(5) and (6)

If gain, also enter in Part I, hne 8, column (c) (see pages 13 and 17 of the instructions) } If (loss\, enter -0- 1n Part I, line 8 ........•....................•. ... 3

•:r...••- Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income

(For optional use by domestic private foundations subJect to the section 4940(a) tax on net investment income)

If section 4940(d)(2) applies, leave this part blank

Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period? . . . . D Yes [xJ No If "Yes," the foundation does not qualify under section 4940(e) Do not complete this part.

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

(b) (c) (d) Base penod years O,stnbut,on ratio

Calendar year (or tax year beginning in) AdJusted quallly1ng d1stnbut1ons Net value of nonchantable-use assets (col (b} divided by col (c})

2007 18 576 8 4 2. 308 584 077. 0. 060200 2006 17 204 970. 288 509 138. 0. 059634 2005 17 313 089. 286 448 540. 0. 060440 2004 15 662 022. 282 467 139. 0. 055447 2003 15 766 052. 268 7 36 081. 0.058667

2 Total of line 1, column (d) .............................. . . . . . . . 2 0. 294388 3 Average d1stnbut1on ratio for the 5-year base period - d1v1de the total on line 2 by 5, or by the

number of years the foundation has been in existence If less than 5 years ...... . . . . 3 o. 058878

4 Enter the net value of noncharitable-use assets for 2008 from Part X, hne 5 4 273 355 399. .. 5 Multiply line 4 by line 3 ... . . . . . . . . . . . . . . . . . . 5 16 094 619. . . . . . . . . . 6 Enter 1 % of net investment income (1 % of Part I, hne 27b) . . . . . . . . . . 6 75. 126 . . . . . . . . . . 7 Add lines 5 and 6 7 16 169 74 5. . . . . . . . . . . . . . . . . . . . . . . .. 8 Enter qualifying d1stribut1ons from Part XII, line 4 . . . ...... 8 17 982 633.

If line 8 1s equal to or greater than line 7, check the box 1n Part VI, hne 1b, and complete that part using a 1% tax rate See the Part VI instructions on page 18.

JSA ee 1430 1 ooo

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Form 990-PF (2008)

6

Form 990-PF (2008) 25-1113452 PaQe 4 •i:.-;, ... -..-ai• Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948 ·seepage 18 of the instructions)

. 1a Exempt operating foundations descnbed ,n section 4940(d)(2), check here .... LJ and enter "N/A" on line 1

j Date of ruling letter _________ (attach copy of ruling letter If necessary - see Instructions)

b Domestic foundations that meet the section 4940(e) requirements m Part V, check 1 75 126. here .... [iJ and enter 1 % of Part I. line 27b • . . . . .... . . . . . . . . . . . .. . .

c All other domestic foundations enter 2% of hne 27b Exempt foreign organizations enter 4% of Part I, line 12, col (b)

2 Tax under section 511 (domestic section 494 7(a)(1) trusts and taxable foundations only Others enter -0-) 2

3 Add lines 1 and 2 . . . . . . . . . . . . . . .... . . . . . . . . . . . . 3 75 126. 4 Subtitle A (income) tax (domestic section 494 7(a)( 1) trusts and taxable foundations only Others enter -0-) 4 NON E

5 Tax based on Investment income. Subtract line 4 from line 3 If zero or less, enter -0- .. 5 75 126. 6 Credits/Payments

a 2008 estimated tax payments and 2007 overpayment credited to 2008. 6a 137 062. b Exempt foreign organizations-tax withheld at source .. . . . . 6b NONE

c Tax paid with application for extension of time to file (Form 8868). 6c NONE

d Backup withholding erroneously withheld .. . . . . 6d

7 Total credits and payments Add lines 6a through 6d • .. . . . . tJ '.1 °F~r~ ~;2~ ,"s ~t;a~h:d·

7 137 062.

8 Enter any penalty for underpayment of estimated tax. Check here 8

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

10 Overpayment. If line 7 1s more than the total of Imes 5 and 8, enter the amount overpaid • .... 10 61. 936. 11 Enter the amount of line 10 to be Credited to 2009 estimated tax .... 61 936. Refunded .... 11 •:F.T•••.111111'•'11 Statements Regarding Activities

1a During the tax year, did the foundation attempt to influence any national, state, or local leg1slat1on or did 1t Yes No

part1c1pate or intervene m any political campaign? ... . .... . . . . . . . . . . . . . . .. . . 1a x b Did 11 spend more than $1 00 during the year (either directly or indirectly) for pol1t1cal purposes (see page 1 9

of the 1nstruct1ons for def1nit1on)? .. . . . . . ... . .. . . . . . . . . . . 1b x If the answer 1s 'Yes" lo 1a or 1b, attach a detailed descnpt1on of the act1v1t1es and copies of any matenals

published or d1stnbuted by the foundation m connection with the act1v1t1es

c Did the foundation file Form 1120-POL for this year? . . . . . . . . .. . . . . . . . . . . . . 1c x d Enter the amount (1f any) of tax on political expenditures (section 4955) imposed during the year

(1) On the foundation .... $ (2) On foundation managers .... $

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

foundation managers .... $

2 Has the foundation engaged m any act1v1t1es that have not previously been reported to the IRS? . . .. . .. . . 2 x If "Yes." attach a detailed descnpt1on of the act1v1t1es

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

1ncorporat1on, or bylaws, or other s1m1lar instruments? If "Yes," attach a conformed copy of the changes • STMT 25 3 x . . . . . . . ... 4a Did the foundation have unrelated business gross income of $1,000 or more during the year? 4a x

b If "Yes," has 11 filed a tax return on Form 990-T for this year? 4b x .... . . . . . . 5 Was there a liqu1dat1on, term1nat1on, dissolution, or substantial contraction during the year? 5 x

If "Yes." attach the statement requ,red by General Instruction T

6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either

• By language m the governing instrument. or

• By state legislation that effectively amends the governing instrument so that no mandatory directions that

conflict with the state law remain 1n the governing instrument? • • • .. . . . . . . . . . . . . . . . . 6 x 7 Did the foundation have at least $5,000 1n assets at any time during the year? If "Yes," complete Part II, col (c). and Part XV 7 x Sa Enter the states to which the foundation reports or With which It IS registered (see page 19 of the

instructions) .... PA,_ ________________________________________________________________

b If the answer 1s 'Yes" to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General

(or designate) of each state as required by General Instruction G? If "No," attach explanation .. . . . . . . . . 8b x 9 Is the foundation cla1m1ng status as a private operating foundation w1th1n the meaning of section 4942(J)(3)

or 4942(J)(5) for calendar year 2008 or the taxable year beginning m 2008 (see instructions for Pert XIV on

page 27)7 If 'Yes," complete Part XIV .... . . . . . . . . . . . . . . . . . . . . . . . . . . 9 x 10 Did any persons become substantial contributors during the tax year? If 'Yes." attach a schedule fist mg the,r

names and addresses . . . . . . . .. . . . . . . . ... . . .. . . . . . . . . 10 x Form 990-PF (2008)

JSA

8E14401000

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Form 990-PF (2008) 25-1113452 ... •'II Statements Regarding Activities (continued)

. 11 At any time during the year. did the foundation, directly or indirectly, own a controlled entity within the

meaning of section 512(b)(3)? If "Yes," attach schedule (see page 20 of the instructions) •• . . . . . . . .. 11 x 12 Did the foundation acquire a direct or 1nd1rect interest in any applicable insurance contract before

August 17. 2008? . . . . . . . . . . . . . . . . . . . . . . . .. . .. 12 x 13 Did the foundation comply with the public inspection requirements for its annual returns and exemption applicahon7 13 x

Website address .... _____ NI A ________________________________________________________ -----------_

14 The books are in care of .... _ SARAH SCAIFE FOUNDATION I NC. _______ Telephone no .... _____ 412-39 2-2900 ------

Located at .... 301_ GRANT STREET .. _ SUITE 3900 .. _ PITTSBURG!i, _PA _________ ZIP+4 .... 15219 --------rr 15 Section 494 7(a)( 1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 - Check here ••••••••• NI. A • • • • • • ....

and enter the amount of tax-exempt interest received or accrued during the year •••••••••••• .... 1151 ··~ ,.- ... 111'!:• Statements Regarding Activities for Which Form 4720 Mav Be Reauired

File Form 4720 if any item is checked in the "Yes" column, unless an exception applies. 1a During the year did the foundation (either directly or indirectly)

( 1) Engage in the sale or exchange, or leasing of property with a d1squal1f1ed person? • • •

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

d1squal1f1ed person? • , • • • • • • • • • • • • • • • • , • , • • • • • • • , • , • •

(3) Furnish goods, services, or fac11i11es to (or accept them from) a d1squalif1ed person? •• , , , , ,

(4) Pay compensation to, or pay or reimburse the expenses of. a d1squalif1ed person? ? '.l't-1'.l'. ;I.~.(5) Transfer any income or assets to a disqualified person (or make any of either available for 16

the benefit or use of a d1squallf1ed person)? ••••••••••••••••••••

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

0Yes

§Yes

Yes

Yes

0Yes

GJNo

~

No

No

No

GJNo

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

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

b If any answer 1s "Yes" to 1a(1)-(6). did any of the acts fail to qualify under the exceptions described 1n Regulations

section 53 4941 (d)-3 or 1n a current notice regarding disaster assistance (see page 20 of the instructions)?

Organ1zat1ons relying on a current notice regarding disaster assistance check here

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

were not corrected before the first day of the tax year beginning in 2008? • • • • • • • • • • • • • • • •

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

operating foundation defined in section 4942(])(3) or 4942(])(5))

.... D

a At the end of tax year 2008, did the foundation have any undistributed income (lines 6d and

6e, Part XIII) for tax year(s) beginning before 2008?. • • • • • • • • • • • • • • • • • • • • • • D Yes Q No If "Yes," list the years .... __________ , _________ . ________ . _______ _

b Are there any years listed in 2a for which the foundation 1s not applying the prov1s1ons of section 4942(a)(2)

(relating lo incorrect valuation of assets) to the year's undistributed income? (If applying section 4942(a)(2)

to all years listed, answer "No" and attach statement - see page 20 of the 1nstruct1ons) •••••••••

c If the prov1s1ons of section 4942(a)(2) are being applied to any of the years listed in 2a. list the years here

.... ---------- ·--------- ·-------- ·--------3a Did the foundation hold more than a 2% direct or indirect interest in any business

enterprise at any time during the year? • • • • • • • • • • • • • • • • • • • • • 0Yes

b If ''Yes," did 1t have excess business holdings in 2008 as a result of (1) any purchase by the foundation or

disqualified persons after May 26, 1969, (2) the lapse of the 5-year period (or longer period approved by the

Comm1ss1oner under section 4943(c)(7)) to dispose of holdings acquired by gift or bequest, or (3) the lapse

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

foundation had excess business holdings m 2008 ) • , • , • , , • , , • • • • • • • • • • • , • • • • • • •

4a Did the foundation invest during the year any amount 1n a manner that would Jeopardize its charitable purposes?

b Did the foundation make any investment 1n a prior year (but after December 31. 1969) that could Jeopardize its charitable purpose that had not been removed from Jeopardy before the first day of the tax year beginning 1n 2008?

JSA BE14S01000

77270J 827G 04/23/2009 15:43:20 VOB-5

G]No

Yes No

1b x

1c x

2b NI A

3b NI A 4a x

4b x Form 990-PF (2008)

8

JSA

Form 990-PF (2008) 25-1113452 Activities for Which Form 4720 Ma Be Re uired continued

Statements Re

5 a During the year did the foundation pay or incur any amount to 0Yes G)No (1) Carry on propaganda, or otherwise attempt to influence leg1slat1on (section 4945(e))?

(2) Influence the outcome of any spec1f1c public election (see section 4955). or to carry on,

directly or indirectly, any voter reg1strat1on drive? •••••••••••••••••••

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

(4) Provide a grant to an organization other than a charitable, etc, organization described 1n

section 509(a)( 1 ), (2), or (3), or section 4940(d)(2)? (see page 22 of the instructions)

0Yes

0Yes

0Yes

(5) Provide for any purpose other than religious, charitable, sc1ent1fic, literary, or

educational purposes, or for the prevention of cruelty to children or animals? • • • • • • • • • • D Yes

b If any answer 1s "Yes" to 5a(1)-(5), did any of the transactions fail to qualify under the exceptions described in

[x] No

L_xJ No

G]No

[ij No

Regulations section 53 4945 or in a current notice regarding disaster assistance (see page 22 of the instructions)? •••

Organizations relying on a current notice regarding disaster assistance check here. • • • • • • • • • • • • • • ..,.. D c If the answer 1s "Yes" to question 5a(4). does the foundation claim exemption from the tax

because 11 ma1nta1ned expenditure respons1b1l1ty for the grant? ••••••••••••••

If "Yes," attach the statement required by Regulations section 53 4945-S(d)

.N{ ~ D Yes 0No

Sb

6 a Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums

on a personal benefit contract?. • • . • • • • • • . • • • • • • • • • • • • • • • • • • • • • • • • D Yes Q No

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

7 a At any time during the tax year. was the foundation a party to a proh1b1ted tax shelter transaction? • • D Yes Q No

1

b If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? • • • • • • 7 b

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

List all officers, directors, trustees, foundation managers and their compensation (see page 22 of the instructions).

N/A

x

x

(a) Name and address (b) Tille, and average b'V Compensation (d} Contnbut1ons to (e) Expense account. hours per week not paid, enter employee benefit plans

devoted to oos1llon .0-l and deferred comoensat1on other allowances

-------------------------------------SEE STATEMENT 14 -16 612 467. 85 4 50. NON

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

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

-------------------------------------2 Compensation of five highest-paid employees (other than those included on line 1 - see page 23 of the instructions).

If none, enter "NONE."

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

hours per week devoted to pos1t1on

(c) Compensation (d) Contributions to employee benefit

plans and deferred comoensat1on

(e) Expense account. other allowances

E

SEE STATEMENT 1 7 235 850. 54 063. NONE

Total number of other employees paid over $50,000 .. ........ I NONE

Form 990-PF (2008)

8E1460 1 000

77270J 827G 04/23/2009 15:43:20 V08-5 9

Form990-PF(2008) 25-1113452

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

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

SEE STATEMENT 18 520 353 .

Total number of others rece1v1ng over $50,000 for professional services . . . . . . . . . . . . . . . . . . . . -~I NONE

•@•M Summary of Direct Charitable Activities

List the foundation's four largest direct charitable activities dunng the tax year Include relevant stat1st1cal mformat1on such as the number of organizations and other beneficianes served, conferences convened, research papers produced, etc

1_NOT_APPLICABLE ___________________________________________________________ _

2

3

4

•es:T••• .. :• Summary of Program-Related Investments (see page 23 of the instructions) Describe the two largest program-related investments made by the foundation dunng the tax year on lines 1 and 2

1_NOT_APPLICABLE ___________________________________________________________ _

2

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

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

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

JSA

BE 1465 1 000

77270J 827G 04/23/2009 15:43: 20 VOS-5

Expenses

Amount

Form 990-PF (2008)

10

Form 990-PF (~008) 2 5-1113 4 52 •Qtl Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,

see page 24 of the instructions.)

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

2

3

4

a Average monthly fair market value of securities •..••..•.....

b Average of monthly cash balances ...•.•.•..••.••....• c Fair market value of all other assets (see page 24 of the 1nstruct1ons) •

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

1c (attach detailed explanation) ....•..•..•.••..•••.. ~1_e~------------1 Acqu1s1t1on indebtedness applicable to hne 1 assets Subtract hne 2 from lrne 1 d Cash deemed held for charitable· aciJVities" En.te"r 1 1 /2 °/o "oi line 3 {for "gre"aiei anio~rit, "see page 2"5.

of the rnstruct1ons) ....•........•....................•••••.•... Net value of noncharitable-use assets. Subtract line 4 from line 3 Enter here and on Part V, hne 4

1a 1b 1c 1d

2

3

4 5 5

6 Minimum investment return. Enter 5% of hne 5 . . . • . . . . . . . . . . . . . . • . • . . . • • . . 6

1 2a

b c

3 4 5 6 7

Distributable Amount (see page 25 of the instructions) (Section 4942())(3) and (J)(5) private operating foundations and certain foreign organizations check here .,.. D and do not complete this part)

Minimum investment return from Part X, line 6 . ... . .... . i 2~ i . . . .. . . 1

Tax on investment rncome for 2008 from Part VI. hne 5 75 126. Income tax for 2008 (This does not rnclude the taxfrom.P

0

artv1/:: I 2b I Add lrnes 2a and 2b 2c . . . . . . . . . . .. . . . . . . . . . . . . . . . . . Distributable amount before adjustments Subtract line 2c from line 1 . . . . . . 3 Recoveries of amounts treated as qual1fyrng d1stribut1ons ... . . . . . . . . 4 . . . . Add lrnes 3 and 4 5 .. . . . . . . . . . . . .. . . . . . .. . . . . . . Deduction from distributable amount (see page 25 of the 1nstruct1ons) .• 6 .. . .. . . Distributable amount as adjusted Subtract line 6 from line 5 Enter here and on Part XIII,

hne 1 .. . . . . . . . . . .. . . . . . . . . . . . . . . 7

Uztbtfli Qualifying Distributions (see page 25 of the instructions)

1 Amounts paid (rnclud1ng admrn1strat1ve expenses) to accomplish charitable, etc., purposes a Expenses. contributions. gifts. etc - total from Part I, column (d), hne 26 .••.... 1a .... b Program-related rnvestments - total from Part IX-8 1b ........ . . . . . . . . . . . . . . .

2 Amounts paid to acquire assets used (or held for use) directly 1n carryrng out charitable, etc. purposes 2 .............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

3 Amounts set aside for spec1f1c charitable projects that satisfy the a Su1tab1l1ty test (prior IRS approval required) 3a

• 0 0 0 o O o O o o I ................ . . b Cash d1stribut1on test (attach the required schedule) 3b ...................... . .

4 Qualifying d1stnbut1ons. Add Imes 1a through 3b Enter here and on Part V, lme 8, and Part XIII, line 4 4 .. 5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net rnvestment income

Enter 1 % of Part I, line 27b (see page 26 of the rnstruct1ons) 5

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

277

277

277

4 273

13

13

13

13

13

17

17

17 Note: The amount on hne 6 will be used 1n Part V, column (b}, rn subsequent years when calculating whether the foundation

qualifies for the section 4940(e) reduction of tax rn those years

485 094. 33 078.

NONE 518 1 72.

NONE 518 1 72.

162 773.

355 399. 667 770.

667, 770.

75 126. 592 64 4 .

592 64 4.

592 64 4.

982. 633. NONE

NONE

NONE NONE

982 633.

75.126. 907 507.

Form 990-PF (2008)

JSA

8E1470 1 000

77270J 827G 04/23/2009 15:43: 20 V08-5 11

•

Form 990-PF (2008) 25-1113452 •·.&o ·-·111• Undistributed Income (see page 26 of the instructions)

1 Distributable amount for 2008 from Part XI,

line 7 ............. . . . . . . . 2 Undostnbuted income, of any, as of the end of 2007

a Enter amount for 2007 only ........ b Total for pnor years 20 __ .20 __ ,20 __

3 Excess dostnbut,ons carryover, 1f any, to 2008

a From 2003 2 505 328. b From 2004 1 779 880. c From 2005 3 281 252. d From 2006 3 187 11 7. e From 2007 3 733 910. f Total of hnes 3a through e . . . . .......

4 Quahfyong d1stnbut1ons for 2008 from Part XII,

lone 4 ~ $ 17 982 633. a Applied to 2007, but not more than line 2a •••

b Applied to undostnbuted income of pnor years (Election required - see page 26 of the onstruct,ons) ......

c Treated as d1stribut1ons out of corpus (Election required - see page 26 of the instructions) • •

d Applied to 2008 distributable amount ..... e Remaining amount distributed out of corpus ..

5 Excess dostrobullons carryover applied to 2008 • (If an amount appears in column (d), the same amount must be shown ,n column (a))

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

a Corpus Add lines 31, 4c, and 4e Subtract lone 5

b Prior years' undistributed income Subtract lone 4b from hne 2b . . . . . . . . . .....

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

d Subtract lone 6c from lone 6b Taxable amount - see page 27 of the onstructoons

e Undistributed income for 2007 Subtract line 4a from lone 2a Taxable amount - see page 27 of the instructions .... . . . . . . . . .

f Undistributed income for 2008 Subtract lines 4d and 5 from lone 1 This amount must be distributed on 2009 ..... . . . . . . . . . .

7 Amounts treated as d1stribut1ons out of corpus to satisfy requirements imposed by section 170(b)(1)(F) or 4942(9)(3) (see page 27 of the instructions) • • • • • • • • • • • • • • • • • •

8 Excess distributions carryover from 2003 not applied on lone 5 or lone 7 (see page 27 of the instructions) •••••••••••.•• . . . .

9 Excess distributions carryover to 2009.

Subtract Imes 7 and 8 from line 6c1 . . . .... 10 Analysis of lone 9

a Excess from 2004 1 779 880. b Excess from 2005 3 281 252. c Excess from 2006 3 187 117. d Excess from 2007 3 733 910. e Excess from 2008 4 389 989.

JSA

BE14801000

(a) Corpus

14 487

4 389

18 877

2 505

16 372

77270J 827G 04/23/2009 15: 43: 20 V08-5

(b) Years prior to 2007

NONE

4 87.

989.

4 76.

NONE

NONE

328.

14 8.

(c) (d) 2007 2008

13 592 644.

13 592 64 4.

Form 990-PF (2008)

12

'l

Form 990-PF (2008) 25-1113452 ••&:rili•·- .. -.-- Private Qperatinq Foundations see paqe 27 of the 1nstruct1ons and Part VII-A, question 9) NOT APPLICABLE 1a If the foundation has received a ruling or determ,nat,on letter that

,_. .'s. ~ 0

p~,v~t~ .o~e:a .. ,n~ I foundation, and the ruling ,s effective for 2008, enter the date of the ruling

b Check box to 1nd1cate whether the foundation ,s a private operating foundation described in section I I 4942())(3) or I I 4942())(5)

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

(e) Total Justed net income from Part (a) 2008 (b) 2007 (c) 2006 (d) 2005 I or the mm,mum investment return from Part X for each year listed

b 85% of line 2a

c Qualifying d1stnbu11ons rrom Pan

XII lme 4 ror each year hsted

d Amounts included m ltne 2c not used directly for actrve conduct

of exempt ec11v1t1es ..

e Ouahfy1ng d1stnbullons made directly for actrve conduct or

exempt act1villes Subtract line 2d from hne 2c

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

a "Assets" allematrve test - enter

(1) Value of all assets (2) Value of assets quahfy1ng

under section

4942~)(3)(8)(1). b "Endowment" alternatrve test-

enter 2/3 of minimum invest-

menl return sholNl'l m Part X,

Imo 6 for each year listed

c •support• ahemative test - enter

(1) Total suppon other than gross mvestment income (interest, dividends rants, paymenls on secunt1es

loans (section 512(a)(5)) or royalties).

(2) Support from general public and 5 or more ex.empt organiza11ons .. provided in section 4942 0)(3)(B)(m)

(3) Largest amount of sup-port from an cuampl orgen1zat1on

141 Gross investment income •

-· ~upplem_entary Information (Complete t~is part _only if the foundation had $5,000 or more in assets at any time during the year - see page 27 of the mstruct1ons.)

Information Regarding Foundation Managers: a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation

before the close of any tax year (but only 1f they have contributed more than $5,000) (See section 507(d)(2))

N/ A

b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the ownership of a partnership or other entity) of which the foundation has a 10% or greater interest.

N/A

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

Check here~ D 1f the foundation only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds If the foundation makes gifts, grants, etc (see page 28 of the instructions) to 1nd1v1duals or organizations under other cond1t1ons, complete items 2a, b, c, and d

a The name, address, and telephone number of the person to whom applications should be addressed SEE STATEMENT 20

b The form in which appl1cat1ons should be submitted and information and materials they should include

SEE STATEMENT 20 c Any subm1ss1on deadlines

SEE STATEMENT 20 d Any restrictions or l1m1tat1ons on awards, such as by geographical areas, charitable fields, kinds of 1nst1tut1ons, or other

factors

JSA 8E14901000

SEE STATEMENT 20

77270J 827G 04/23/2009 15: 43: 20 VOB-5 Form 990-PF (2008)

13

Form990-PF(2008) 25-1113452 Uitii!PJ Supplementary Information (continued)

3 Grants and Contributions Paid During the Year or Approved for Future Payment Rec1p1ent If rec1p1ent 1s an indMdual, Foundation Purpose of grant or show any relat1onsh1p to status of Amount

Name and address (home or business) any foundation manager recopoent contnbut,on

or substantial conlnbulor

a Paid dunng the year

SEE STATEMENTS 21, 22 & 23 16, 169, 000.

Total ~ 3a 16 169 000. b Approved for future payment

SEE STATEMENTS 21, 22 & 23 9, 182, 000.

Total . ~ 3b 9 182. 000. Form 990-PF (2008)

JSA BE1491 1 000

77270J 827G 04/23/2009 15:43:20 VOS-5 14

JSA

Form 990-PF (2008) 25-1113452 . ID Analysis of Income-Producing Activities Enter gross amounts unless otherwise indicated Unrelated business income Excluded b section 512, 513

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

1 Program service revenue Business code Amount Exclu sron code Amount

a

b

c d

e f

g Fees and contracts from government agencies

2 Membership dues and assessments •••••

3 Interest on savings and temporary cash investments

4 D1v1dends and interest from securities ... 14 8 147

5 Net rental income or (loss) from real estate

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

6 Net rental income or (loss) from personal property

7 Other investment income ........ 8 Gain or (loss) from sales of assets other than inventory 18 -1. 575

9 Net income or (loss) from special events .. 10 Gross profit or (loss) from sales of inventory. 11 Other revenue a

b VENTURE FUND I NC. 900000 13 152. 14 -181

c OTHER INCOME 14

d

e 12 Subtotal Add columns (b), (d), and (e) .... 13 152. 6 390

13 Total. Add line 12, columns (b), (d). and (e) ••••••••••••••••••••••••••••••••••• 13 (See worksheet in line 13 instructions on page 28 to verify calculations)

•• ·--11 =• Relationship of Activities to the Accomplishment of Exempt Purposes

or 514 (e) Related or exemf' function incom I See page 28 of he instructions)

056.

419.

564.

57.

130.

6 403 282.

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

~ the accomplishment of the foundation's exempt purposes (other than by prov1d1ng funds for such purposes) (See page 28 of the 1nstruct1ons )

NOT APPLICABLE

Form 990-PF (2008)

BE1492 1 000

77270J 827G 04/23/2009 15:43:20 V08-5 15

1

25-1113452 P~e13

Information Regarding Transfers To and Transactions and Relationships With Noncharitable E O xempt rgamzat1ons

Did the organ1zat1on directly or indirectly engage in any of the following with any other organ1zat1on described in section Yes No

501 (c) of the Code (other than section 501 (c)(3) organ1zat1ons) or m section 527. relating to political organizations?

a Transfers from the reporting foundation to a nonchantable exempt organization of

(1) Cash 1a111 x (2) Other assets 1al2l x

b Other transactions

(1) Sales of assets to a noncharitable exempt organization 1bl1l x (2) Purchases of assets from a nonchantable exempt organization 1bl21 x (3) Rental of fac1l1t1es, equipment, or other assets 1bl3l x (4) Reimbursement arrangements • 1b141 x (5) Loans or loan guarantees 1bl5l x (6) Performance of services or membership or fundra1s1ng sohc1tat1ons 1bl6l x

c Sharing of facilities. equipment. mailing hsts. other assets. or paid employees 1c x d If the answer to any of the above 1s ''Yes," complete the following schedule Column (b) should always show the fair market value of the goods,

other assets, or services given by the reporting foundation If the foundation received tess than fair market value m any transaction or sharing

arrangement. show 1n column (d) the value of the goods. other assets. or services received

(a) Line no (b) Amount involved (c) Name of nonchantable exempt organization (d) Descnpt1on of transfers, transactions and shanng arrangements

NI A N/A

2a Is the foundation directly or 1nd1rectly affiliated with, or related to. one or more tax-exempt organ1zat1ons described m

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

b If "Yes." comolete the follow1no schedule (a) Name of organrzatoon (b) Type of organrzat1on (c) Description of relat1onsh1p

Under penalties of periury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and

behtl tj) .co:ect ap~p6 a:;n of preparer (other than taxpayer or fid~s~s~e09 all infoE;/;f WVi~;;;az;;;(:;;;;~ e ~ • Signature of officer or trustee ' • Date ~ -'11""1=:tl;;.;e=..-c_....;;;; _ _._._.aa...--'---''--'--_;., ~ 1--~~.;..-~~~~~~~~~~-,-~~~~~Ae_~~-,.f-~~~~~-,--~~~~~~~-,--~~~~~~~~-,-~~~~~~~~~~~

:i::: ~ Date Preparer's 1dent1fy1ng number c 6 (k fo Check 1f ~o (See Signature on page 30 of the .~ ,e .?:- Preparer's Iii... ~/ e,

11c self-employed instructions)

u, "5! ~ 6 signature Ill"' • - - "'?' / ~ ' (i? 1:)0 'If' ..J ~.3 "l'..J-;:, ~ 3: F1rm'sname(oryours1f ~wrAS LLC EIN ~ 33-1197384 a: :::>

self-employed), address. 335 COMMERCE ORI VE - SUITE 201 and ZIP code FORT WASH! NGTON PA 19034 Phoneno 215-654-1600

Form 990-PF (2008)

JSA

8E1493 1 000

77270J 827G 04/23/2009 15:43: 20 VOS-5 16

SARAH SCAIFE FOUNDATION INCORPORATED 25-1113452

FORM 990PF, PART I - DIVIDENDS AND INTEREST FROM SECURITIES

DESCRIPTION

INTEREST I NCO ME DI VI DENO INCOME

TOTAL

7 7 2 7 0 J 8 2 7 G O 4 / 2 3 / 2 0 0 9 1 5: 4 3: 2 0 VO 8 - 5

REVENUE AND

EXPENSES PER BOOKS

2, 755, 773. 5, 391, 283.

8,147,056.

NET INVESTMENT

INCOME

2, 755, 773. 5, 391, 283.

8,147,056.

18 STATEMENT 1


FORM 990PF, PART I - OTHER INCOME

DESCRIPTION

VENTURE I NCO ME OTHER I NCO ME

TOTALS

77270J 827G 04/23/2009 15: 43: 20 V08-5

25-1113452

REVENUE AND

EXPENSES PER BOOKS

-168, 412. 57.

-168, 355.

NET INVESTMENT

I NCO ME

-168, 412. 57.

-168, 355.

19

ADJUSTED NET

INCOME

NONE NONE

NONE

STATEMENT 2


FORM 990PF, PART I - LEGAL FEES

DESCRIPTION

LEGAL FEES

TOTALS

REVENUE AND

EXPENSES PER BOOKS

2, 851.

2,851.

77270J 827G 04/23/2009 15: 43:20 V08-5

25-1113452

NET INVESTMENT

INCOME

NONE

NONE

20

ADJUSTED NET

INCOME

NONE

NONE

CHARITABLE PURPOSES

2, 851.

2, 851.

STATEMENT 3


FORM 990PF, PART I - ACCOUNTING FEES

DESCRIPTION

AUDIT, COMPLIANCE, AND TAX SRV

TOTALS

REVENUE AND

EXPENSES PER BOOKS

59, 948.

59, 948.

77270J 827G 04/23/2009 15: 43: 20 V08-5

25-1113452

NET INVESTMENT

I NCO ME

29, 974.

29, 974.

21

ADJUSTED NET

I NCO ME

NONE

NONE

CHARITABLE PURPOSES

29, 974.

29, 974.

STATEMENT 4


FORM 990PF, PART I - OTHER PROFESSIONAL FEES

DESCRIPTION

FISCAL AGENT FEES CONSULTING

TOTALS

REVENUE AND

EXPENSES PER BOOKS

253, 541. 256, 000.

509, 541.

77270J 827G 04/23/2009 15: 43:20 V08-5

25-1113452

NET INVESTMENT

INCOME

253, 541. NONE

253, 541.

22

ADJUSTED NET

INCOME

NONE NONE

NONE

CHARITABLE PURPOSES

NONE 256, 000.

256, 000.

STATEMENT 5


FORM 990PF, PART I - TAXES

DESCRIPTION

FEDERAL EXCISE TAX PAYROLL TAX

TOTALS

REVENUE AND

EXPENSES PER BOOKS

119, 000. 54, 902.

173,902.

77270J 827G 04/23/2009 15: 43:20 VOB-5

25-11134 52

NET INVESTMENT

INCOME

NONE 5, 712.

5, 712.

23

ADJUSTED NET

INCOME

NONE NONE

NONE

CHARITABLE PURPOSES

NONE 49, 190.

49, 190.

STATEMENT 6


FORM 990PF, PART I - OTHER EXPENSES

DESCRIPTION

COMPUTER MAINTENANCE INSURANCE DUES & SUBSCRIPTIONS OFFICE EXPENSES OFFICE TEMP TELEPHONE SECURITY

TOTALS

REVENUE AND

EXPENSES PER BOOKS

1, 519. 16, 620.

5,852. 20, 428.

7,876. 5, 136.

52, 27 5.

109, 706.

77270J 827G 04/23/2009 15:43:20 V08-5

25-1113452

NET INVESTMENT

INCOME

NONE 1, 729.

NONE 2, 125.

819. 534. NONE

5, 207.

24

ADJUSTED NET

INCOME

NONE NONE NONE NONE NONE NONE NONE

NONE

CHARITABLE PURPOSES

1, 519. 14, 891.

5, 852. 18, 303.

7, 057. 4,602.

52, 27 5.

104, 499.

STATEMENT 7


FORM 990PF, PART I - CONTRIBUTIONS, GIFTS, GRANTS PAID

REC! PI EITT NAME AND ADD RF.SS

GRA~1'S PAID

SEE STATEMENTS 21, 22 & 23

GRANTS ACCRUED

SEE STATEMENTS 21, 22 & 23

77270J 327G 04/23/2009 15 43 20 V08-5

RELATIONSHIP TO SUBSTANTIAL CONT RI BUTOR

AND

FOUNDATION STATUS OF RECIPIENT

25-1113452

PUR?OSE OF GRANT OR CONTRIBUTION AMOUNT

16, 169, 000.

TOTAL CONTRIBUTIONS ?AID 16, 169, 000

9,182,000

TOTAL APPROVED CONTRI BU'i'IONS ACCRUED 9, 182, 000.

25 STATEMENT 8


FORM 990PF, PART II - PREPAID EXPENSES AND DEFERRED CHARGES

DESCRIPTION

PREPAID INSURANCE

TOTALS

77270J 827G 04/23/2009 15:43: 20 V08-5

ENDING BOOK VALUE

6,985.

6, 985.

26

ENDING FMV

6, 985.

6, 985.

STATEMENT 9


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

DESCRIPTION

GOVERNMENT SECURITIES ( SEE STATEMENT 13A)

US OBLIGATIONS TOTAL

77270J 827G 04/23/2009 15: 43:20 V08-5

25-1113452

ENDING BOOK VALUE

40,357,572.

40,357,572.

27

ENDING FMV

41, 961, 139.

41, 961, 139.

STATEMENT 10


FORM 990PF, PART II - CORPORATE STOCK

DESCRIPTION

COMMON STOCK INVESTMENTS ( SEE STATEMENT 13 A)

TOTALS

77270J 827G 04/23/2009 15: 43:20 V08-5

25-1113452

ENDING BOOK VALUE

132,517,147.

132,517,147.

28

ENDING FMV

160, 410, 878.

160, 410, 878.

STATEMENT 11


FORM 990PF, PART II - CORPORATE BONDS

DESCRIPTION

CORPORATE BOND INVESTMENTS ( SEE STATEMENT 13A)

TOTALS

77270J 827G 04/23/2009 15: 43:20 V08-5

25-1113452

ENDING BOOK VALUE

2, 030, 536.

2, 030, 536.

29

ENDING FMV

2,066,817.

2,066,817.

STATEMENT 12


FORM 990PF, PART II - OTHER INVESTMENTS

DESCRIPTION

VENTURE FUNDS ( SEE STMT. 13A) MUTUAL FUNDS ( SEE STMT. 13A) BOND FUND ( SEE STMT. 13A)

TOTALS

77270J 827G 04/23/2009 15: 43: 20 V08-5

25-1113452

ENDING BOOK VALUE

2, 435, 190. 3, 876, 230. 2, 900, 000.

9,211,420.

30

ENDING FMV

2,656,698. 5,514,880. 3, 005, 093.

11,176,671.

STATEMENT 13

Government Securities

U.S. Treasury and agencies securities Federal Home Loan Banks Federal Home Loan Mortgage Corp Treasury lnflat1on Securities

U S Treasury Notes

TOTAL GOVERNMENT SECURITIES

Common Stock

Common Stocks: 3M Co Accenture Ltd Air Products & Chemicals, Inc Alina Group, Inc. AT&T, Inc Automatic Data Processing, Inc Becton Dickinson & Co Berkshire Hathaway, Inc Canadian Pacific Railway Ltd Cardinal Health, Inc Celgene Corporation Chevron Corporation Comcast Corporation Diamond Offshore Drilling, Inc Diebold, Inc Ecolab Inc Entergy Corp Exxon Mobil Corp FactSet Research Systems, Inc FPL Group, Inc Freeport-McMoRan Copper & Gold, Inc. General Electric Co Graco Inc Harns Corp Del Hewlett Packard Co lnternat1onal Business Machines Corp Invesco Ltd JP Morgan Chase & Co Johnson & Johnson Kellogg Co Lockheed Martin Corp McDonald's Corp Medtronic, Inc Microchip Technology, Inc Nike, Inc Novartis AG

Sarah Scaife Foundation Incorporated Schedule of Investments

December 31, 2008

Shares/or Par Value

1,700,000 5,000,000 6,500,000

25,350,000

Shares/or Par Value

21,500 68,500 21,500 307,000 146,000 83,600 61,950

900 30,750 36,000 27,250 30,200 86,500 21,800 82,500 66,500 20,000

225,000 38,500 62,500 64,000

284,000 58,000 46,500 49,000 64,600

129,000 103,500 86,000 67,000 25,000 85,000 33,900

121,000 54,000 69,000

Cost

1,703,944 5,382,192 6,871,349

13,957,485

26,400,088

40,357,573

1,653,780 2,551,557 1,761,906 2,315,173 4,091,438 3,589,143 4,046,885 2,028,491 1,772,258 2,408,562 1,283,524 1,382,650 1,801,951 2,474,041 3,907,028 2,170,023 2,348,382 1,881,660 2,483,149

948,500 1,229,594 2,511,415 2,030,635 1,439,871 1,676,011 1,698,713 1,402,707 4,523,539 5,182,346 3,009,243

883,025 4,229,766 1,788,422 3,789,316 2,115,480 3,893,481

Market Value

1,729,750 5,445,950 7,476,447

14,652,147

27,308,992

41,961,139

Market Value

1,237,110 2,246, 115 1,080,805 4,623,420 4,161,000 3,288,824 4,236,761 2,892,600 1,033,815 1,240,920 1,506,380 2,233,894 1,460, 120 1,284,892 2,317,425 2,337,475 1,662,600

17,961,750 1,703,240 3,145,625 1,564,160 4,600,800 1,376,340 1,769,325 1,778,210 5,436,736 1,862,760 3,263,355 5,145,380 2,937,950 2,102,000 5,286,150 1,065,138 2,363,130 2,754,000 3,433,440

STATEMENT 13A

Omnicon Group, Inc Pepsico, Inc Pfizer, Inc Ph1hp Morns International Inc Praxair, Inc Proctor & Gamble Co Qualcomm, Inc Schlumberger Ltd Charles Schwab Corp New Stryker Corp US Bancorp United Parcel Service, Inc United Technologies Corp VF Corp Wal-Mart Stores, Inc Wells Fargo & Company Wisconsin Energy Corp

TOTAL COMMON STOCK

Corporate Bonds

National Rural Utiht1es South Carolina Electric & Gas Co

TOTAL CORPORATE BONDS

Venture Funds

Sarah Scaife Foundation Incorporated Schedule of Investments

December 31, 2008 51,000 51,700 98,000

307,000 29,000 87,050 56,000 26,000

158,000 30,500 75,000 43,700 57,200 44,000 54,800

122,600 54,500

Shares/or Par Value

1,050,000 1,000,000

Shares/or Par Value

Code, Hennessy & Simmons L1m1ted Partnership Code, Hennessy & Simmons II, LP Code, Hennessy & Simmons Ill, LP Code, Hennessy & Simmons IV, L P Meakem Becker Ventures Capital I LP

TOTAL VENTURE FUNDS

Mutual Funds Shares/or Par Value

Mutual Fund: !Shares Russell 2000 Index Fund 112,000

TOTAL MUTUAL FUNDS

Bond Funds Shares/or Par Value

Bond Fund: Vanguard GNMA Fund 284,035

TOTAL BOND FUNDS

2,015,493 1,372,920 2,904,298 2,831,609 1,494,353 1,735,580 5,275,558 13,357,570 1,392,849 1,721,440 3,957,266 5,381.431 2,552,855 2,006.480 2.417, 104 1,100,580 2,945, 167 2,554,860 1,317,668 1,218,475 2,354,220 1,875,750 2,557,309 2,410.492

778,885 3,065,920 3,373,942 2.409,880 3,062,327 3,072,088 3,355,250 3,614,248 2,458,937 2,287,910

132,517,146 160,410,878

Cost Market Value

1,004,356 1,059,177 1,026,180 1,007,640

2,030,536 2,066,817

Cost Market Value

63,835 59,250 68,063 68,062

119,301 85.407 578,920 838,908

1,605,071 1,605,071

2,435,190 2,656,698

Cost Market Value

3,876,230 5,514,880

3,876,230 5,514,880

Cost Market Value

2,900,000 3,005,093

2,900,000 3,005,093

STATEMENT 13A


FORM 990PF, PART VIII - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES

NAME AND ADDRESS

RICHARD M. SCAIFE 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

MICHAEL W. GLEBA 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

BARBARA L. SLANEY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

R. DANIEL MCMICHAEL 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

YVONNE MARIE BLY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

T. KENNETH CRIBB, JR 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

TITLE AND AVERAGE HOURS PER WEEK DEVOTED TO POSITION

CHAIRMAN/TRUSTEE 3.

EXEC UT I VE VP 32.

VP/TREASURER 32.

SECRETARY 3.

ASST. TREASURER 32.

TRUSTEE 3.

77270J 827G 04/23/2009 15:43:20 V08-5

CONT RI BUT! ONS EXPENSE ACCT TO EMPLOYEE

COMPENSATION BENEFIT PLANS

NONE NONE

252,000. 36, 200.

264, 667. 36, 200.

NONE NONE

56, 800. 13,050.

3, 000. NONE

31sTATEMENT 14

AND OTHER ALLOWANCES

NONE

NONE

NONE

NONE

NONE

NONE


FORM 990PF, PART VIII - LIST OF OFFICERS, DIRECTORS, AND TRUSTEES

NAME AND ADDRESS

EDWIN J. FEULNER, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ALLAN H. MELTZER 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

E. VAN R. MILBURY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ROGER W. ROSI NSON, JR. 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

JAMES C. RODDEY 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

JAMES M. WALTON 301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401

ARTHUR P. ZIEGLER, JR.


TRUSTEE 3.

TRUSTEE 3.

TRUSTEE 3.

TRUSTEE 3.

TRUSTEE 3.

TRUSTEE 3.

TRUSTEE 3.

77270J 827G 04/23/2009 15:43:20 VOS-5

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE

COMPENSATION BENEFIT PLANS

6,000. NONE

6, 000. NONE

3, 000. NONE

6, 000. NONE

6, 000. NONE

3, 000. NONE

6, 000. NONE

32;TATEMENT 15


NONE

NONE

NONE

NONE

NONE

NONE

NONE


FORM 990PF, PART VIII - LIST or OFFICERS, DIRECTORS, AND TRUSTEES

NAME AND ADDRESS

301 GRANT STREET ONE OXFORD CENTRE, SUITE 3900 PITTSBURGH, PA 15219-6401


GRAND TOTALS

77270J 827G 04/23/2009 15:43:20 V08-5

COMPENSATION

612, 467.

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE BENEFIT PLANS

85,450.

33;TATEMENT 16


NONE


990PF, PART VIII - COMPENSATION OF THE FIVE HIGHEST PAID EMPLOYEES

NAME AND ADDRESS

CAROL NOLAN 301 GRANT STREET PITTSBURGH, PA 15219-6401

ALEXIS J. KONKOL 301 GRANT STREET PITTSBURGH, PA 15219-6401

POLLY MCQUEEN 301 GRANT STREET PITTSBURGH, PA 15219-6401

MATTHEW GROLL 301 GRANT STREET PITTSBURGH, PA 15219

TITLE AND AVERAGE HOURS PER WEEK

DEVOTED TO POSITION

EMPLOYEE 32.

EMPLOYEE 32.

EMPLOYEE 24.

EMPLOYEE 12.

TOTAL COMPENSATION

77270J 827G 04/23/2009 15: 43: 20 V08-5

COMPENSATION

56, 800.

57 I 200.

65,450.

56,400.

235, 850.

34

CONTRIBUTIONS EXPENSE ACCT TO EMPLOYEE AND OTHER

BENEFIT PLANS ALLOWANCES

13, 600. NONE

13,200. NONE

14,888. NONE

12,375. NONE

54, 063. NONE

STATEMENT 1 7


99pPF, PART VIII- COMPENSATION OF THE FIVE HIGHEST PAID PROFESSIONALS ==========-----------------------------------------------------------

NAME AND ADDRESS TYPE OF SERVICE

OXFORD DEVELOPMENT COMPANY/GRANT ST. FACILITY RENTAL ONE OXFORD CTR, PLAZA LEVEL,301 GRANT ST PITTSBURGH, PA 15219

R. DANIEL MCMICHAEL ONE OXFORD CENTRE, 301 GRANT STREET PITTSBURGH, PA 15219

DENNISE. BRADSHAW 803 WOLFE STREET ALEXANDRIA, VA 22314

CONSULTING

MGMT CONSULTING SVCS

TOTAL COMPENSATION

77270J 827G V08-5

COMPENSATION

204,481.

263,597.

52, 27 5.

520, 353.

STATEMENT 18

35

SARAH SCAIFE FOUNDATION INCORPORATED EIN· 25-1113452 YEAR ENDED DECEMBER 31, 2008

FORM 990-PF

PART I, LINE 19 - DEPRECIATION EXPENSE PART II, LINE 14 - LAND, BUILDINGS, AND EQUIPMENT

PART II, LINE 14 -ACCUMULATED DEPRECIATION

STATEMENT 19

DESCRIPTION AMOUNT

LEASEHOLD IMPROVEMENTS OFFICE EQUIPMENT

SUBTOTAL FIXED ASSETS LESS ACCUMULATED DEPRECIATION

NET FIXED ASSETS

316,204 508,847 825,051

(822,903) 2,148

DEPRECIATION AND AMORTIZATION EXPENSE FOR 12/31/08 WAS $2,284

STATEMENT 19

SARAH SCAIFE FOUNDATION Incorporated

One Oxford Centre 301 Grant Street, Suite 3900

Pittsburgh, Pennsylvania 15219-6401 412-392-2900

ANNUAL REPORT

STATEMENT 20

The Sarah Scaife Foundation's grant program is primarily directed toward public policy programs that address maJor domestic and international issues. There are no geographical restrictions. The Foundation does not make grants to individuals for any purpose or to nationally-organized fundraising groups. Proposals for the following are usually declined: event sponsorships, endowments, capital campaigns, renovations, or government agencies.

Initial inquiries to the Foundation should be in letter form signed by the organization's President, or authorized representative, and have the approval of the organization's Board of Directors. The letter should include a concise description of the specific program for which funds are requested, and a program budget and timetable. Accompanying information should include a copy of the latest audited financial statements and annual report; current budget; list of officers and directors and their maJor affiliations; and a copy of the current determination letter from the Internal Revenue Service evidencing tax-exempt status under Section 50l(c) (3) of the IRS Code. Additional information may be requested, if needed, for further evaluation.

The Foundation meets in February, May, September, and November to consider grants. However, requests may be submitted at any time and will be acted upon as expeditiously as possible.

Requests should be addressed to:

Michael W. Gleba Executive Vice President Sarah Scaife Foundation One Oxford Centre 301 Grant Street, Suite 3900 Pittsburgh, PA 15219-6401

STATEMENT 20

SARAH SCAIFE FOUNDATION INCORPORATED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2008

FORM 990-PF

Federal Footnotes

Grants Paid & Approved:

STATEMENT 21

All of the grantees shown on the attached statement of grants are exempt under the Internal Revenue Code (IRC) Section 501(c) (3), and have the status of public charities within the meaning of IRC Section 509 (A) ( 1) or ( 2) .

STATEMENT 21


SCHEDULE OF GRANTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2008

Payable, 1/1/08 -12/31/0~ Payable, 12/31/07 Approved Paid 12/31/08

Acton Institute for the Study of Religion and Liberty,

Grand Rapids, Michigan Project support $ $ 50,000 $ 50,000 $

Allegheny Institute for Public Policy, Pittsburgh, Pennsylvania General operating support 125,000 125,000

American Bar Association Fund for Justice and Education,

Chicago, llhno1s Standing Committee on Law and National Security 65,000 130,000 65,000 130,000

American Civil Rights Institute. Sacramento, California General operating support 200,000 200,000

American Council of Trustees andAlumm,

Washington, D C. General operating support 50,000 50,000

American Enterprise Institute for Pubhc Policy Research,

Washington, D.C. Program support 200,000 200,000 ProJect support 150,000 350,000 250,000 250,000 Shadow F1nanc1al Regulatory Committee 25,000 25,000

Amencan Foreign Polley Council, Washington, D C. General operating support 150,000 150,000

Amenca's Future Foundation, Washington, DC. General operating support 50,000 50,000

Amenca's Survival. Inc , Owings, Maryland Program support 150,000 150,000

STATEMENT 22



Payable, 1/1/08 -:]2/31/08 Payable, 12/31/07 Approved Paid 12/31/08

Atlantrc Legal Foundation, New York, New York General operating support $ $ 100,000 $ 100,000 $

Atlas Economic Research Foundation, Arlington, Virginia General operating and program support 100,000 200,000 200,000 100,000

Boston University, Boston, Massachusetts

Institute for the Study of Confhct, Ideology and Polley 89,500 45,000 44,500

Capital Research Center, Washington, D.C. General operating support 225,000 225,000

Carnegie Mellon University, Pittsburgh, Pennsylvania Gailhot Center for Public Policy 75,000 150,000 150,000 75,000 ProJect support 90,000 90,000

Cato Institute, Washington, D.C. Fiscal Polley Studies Program 50,000 50,000

Center for Equal Opportunity, Sterling, Virginia General operating support 75,000 75,000

Center for Immigration Studies. Inc . Washington, D.C General operating support 150,000 150,000

Center for Media and Public Affairs, Washington, D.C. General operating support 100,000 100,000

Center for Security Policy, Inc, Washington. D.C General operating support 300,000 300,000

STATEMENT 22



Payable, 1/1/08 -12/31/08 Payable, 12/31/07 Approved Paid 12/31/08

Center for Strategic and · International Studies, Inc.,

Washington, D.C. Senior Advisor Post and proiect support $ 150,000 $ 350,000 $ 250,000 $ 250,000

Center for the Study of the Presidency, Washington, D C Program support 75,000 150,000 150,000 75,000

City of McKeesport. McKeesport, Pennsylvania ProJect support 100,000 100,000

Claremont Institute for the Study of Statesmanship and Political Philosophy,

Claremont, Cahforn1a General operating, program and Washington Fellow support 200,000 575,000 475,000 300,000

Collegiate Network, Inc., Wilmington, Delaware General operating support 140,000 140,000 National Security Program 100,000 100,000 Professional Journalism Fellowships 100,000 100,000

Committee for a Constructive Tomorrow, Washington, D C. General operating support 100,000 100,000

The Commonwealth Foundation for Public Policy Alternatives.

Harrisburg, Pennsylvania General operating support 140,000 140,000

Competitive Enterprise Institute, Washington, D C. General operating support 75,000 150,000 150,000 75,000 Pro1ect support 200,000 200,000

David Horowitz Freedom Center, Los Angeles, California General operating support 150,000 300,000 250,000 200,000

STATEMENT 22



Payable, 111/08 -12/31/08 Payable, 12/31/07 Approved Paid 12131/08

Environmental Literacy Council, Washington, D.C. General operating support $ $ 75,000 $ 37,500 $ 37,500

Ethics and Pub!tc Polley Center, Inc., Washington, D.C General operating and program support 175,000 75,000 100,000

The Federahst Society for Law & Public Policy Studies,

Washington, D.C. General operating and project support 125,000 325,000 250,000 200,000

Federation for American Immigration Reform,

Washington, D.C. General operating and project support 300,000 300,000

Foreign Polley Research Institute, Philadelphia, Pennsylvania General operating support 35,000 35,000

The Foundation Endowment, Alexandna, Virginia General operating support 75,000 37,500 37,500

Foundation for California University of Pennsylvania,

Callfomla, Pennsylvanra Government Agency Coordination Office 125,000 125,000

Foundation for Cultural Review, Inc., New York, New York General operating support 260,000 260,000

Foundation for Individual Rights m Education, Inc ,

Philadelphia, Pennsylvania General operating support 125,000 62,500 62,500

Foundation for Research on Economics and the Environment,

Bozeman, Montana General operating support 50,000 50,000

STATEMENT 22



Payable, 1/1/08 -12131/08 Payable, 12/31/07 Approved Paid 12/31/08

Foundation for Teaching Economics. Davis, California Program support $ $ 30,000 $ 30,000 $

Foundation for the Defense of Democracies. Inc ,

Washington, D C Proiect support 250,000 250,000

Free Congress Research and Education Found~t1on, Inc .

Washington, 0 C General operating and program support 225,000 225,000

FreedomWorks Foundation, Washington, D.C General operating and project support 140,000 70,000 70,000

Galen Institute, Inc • Alexandria, Virginia General operating support 50,000 50,000

George C Marshall Institute, Washington, D.C. General operating and project support 255,000 255,000

George Mason University Foundation, Inc.,

Fairfax, Virg,rna Law and Economics Center 200,000 200,000

Heritage Foundation, Washington, D.C. General operating support 400,000 800,000 600,000 600,000

High Frontier, Alexandria, Virginia Program support 60,000 125,000 125,000 60,000

Hudson Institute, Inc . Washington, D.C Center for Rellg1ous Freedom 140,000 70,000 70,000 ProJect for C1v1I Justice Reform and International Religious Liberty 150,000 150,000

STATEMENT 22



Payable, 1/1/08 -1i131/08 Payable, 12/31/07 Approved .!:s!i2 12/31108

The Human Rights Foundation, NewYork, New York

General operating support $ $ 100,000 $ 50,000 $ 50,000

Institute for Foreign Policy Analysis, Inc., Cambridge, Massachusetts Economic Security Program 160,000 160,000 General operating and proJect support 700,000 700,000

Institute for Health Freedom, Washington, D.C. General operating support 100.000 100,000

Institute for Justice, Washington, D.C. General operating support 115,000 115,000

The Institute of the North, Anchorage, Alaska National Defense and Security Program 155,000 155,000

The Institute on Religion and Public Life, Inc.,

New York, New York General operating and publication

support 100,000 100,000

Intercollegiate Studies Institute, Inc , Wilmington, Delaware General operating support 175,000 350,000 275,000 250,000

International Polley Network US, Inc, Washington, D C. General operating support 75,000 75,000

Jamestown Foundation, Washington, D.C. General operating support 70,000 145,000 145,000 70,000

Johns Hopkins University, Washington, D.C. The Paul H. N1tze School of Advanced International Studies 187,000 187,000

STATEMENT 22




Judicial Watch, Inc .. Washington, D.C. General operating support $ 125,000 $ - $ 125,000 $

Landmark legal Foundation, Kansas City, Missouri General operating support 75,000 400,000 475.000

Ligonier Valley School District, l1gonier, Pennsylvania Christmas gift program 7,500 7,500

The Maldon Institute, Baltimore, Maryland General operating support 242,000 250,000 242,000 250,000

Manhattan Institute for Polley Research, Inc, New York, New York General operating and publication

support 200,000 200,000

Media Research Center, Alexandna, V1rgm1a General operating support 175,000 350,000 325,000 200,000

Mercatus Center, Inc., Fairfax, Virginia General operating support 80,000 80,000

Missouri State University Foundation, Springfield, Missouri Department of Defense and Strategic Studies 150,000 150,000

Mount Vernon ladies' Association of the Union, Mount Vernon, Virginia Project support 75,000 75,000

National Assoc1at1on of Scholars, Inc., Princeton, New Jersey General operating support 250,000 250,000

STATEMENT 22




National Center for Polley Analysis. Dallas. Texas General operating and project support $ $ 125,000 $ 62,500 $ 62,500

National Institute for Public Polley, Fairfax, Virginia Program support 200,000 200,000 Project support 60,000 60,000

National Legal and Policy Center, Falls Church, Virginia General operating support 125,000 125,000

National Taxpayers Union Foundation. Alexandna, Virginia Congressional Budget Tracking System 75,000 75,000

New England Legal Foundation, Boston, Massachusetts General operating support 60,000 60,000

NumbersUSA Education and Research Foundation,

Arlington. Virginia Project support 50,000 50,000

Pacific Research Institute for Public Policy,

San Francisco, California General operating support 200,000 75,000 125,000

Ph1ladelph1a Society, Jerome, Michigan General operating support 10,000 10,000

Philanthropy Roundtable, Washington, DC. General operating support 10,000 10,000

Phipps Conservatory and Botanical Gardens, Inc ,

Pittsburgh, Pennsylvania Campaign 2000 250,000 250,000

STATEMENT 22



Payable, 1/1/Q§-12/31/08 Payable, 12/31/07 Approved Paid 12/31/08

Pittsburgh History and Landmarks Foundation, Pittsburgh, Pennsylvania Community redevelopment $ 500,000 $ - $ 250,000 $ 250,000

Princeton University, Princeton, New Jersey James Madison Program in American Ideals and Institutions 75,000 75,000

Reason Foundation, Los Angeles, California General operating support 125,000 125,000

Saint Vincent College, Latrobe, Pennsylvania Center for Poht1cal and Economic Thought 35,000 35,000

Social Philosophy and Policy Foundation,

Bowling Green, Ohio Social Philosophy and Polley Center 625,000 625,000

Southeastern Legal Foundation, Inc., Atlanta, Georgia

General operating support 75,000 37,500 37,500

Stanford University, Hoover Institution on War, Revolution and Peace, Stanford, California Research programs and Hoover Fellows support 225,000 400,000 375,000 250,000

Stat1st1cal Assessment Service, Washington, D.C General operating support 100,000 100,000

StudentNewsOaily.com, Inc , Old Bridge. New Jersey General operating support 15,000 15,000

Tax Foundation, Washington, 0 C General operating support 100,000 100,000

STATEMENT 22



Tufts University, Medford, Massachusetts The Fletcher School of Law and Diplomacy

The University of Chicago, Chicago, Illinois George J. Stigler Center for the Study of the Economy and the State Law and Economics Program

University of Kentucky, Lexington, Kentucky The New University of Kentucky Albert B. Chandler Hospital Auditorium

University of Virginia Law School Foundation,

Charlottesv11ie, Virginia Center for National Security Law

World Affairs Council of Pittsburgh, Pittsburgh, Pennsylvania Teacher-Student Educational Projects

Total

$

Payable, 12/31/07

150,000 $

75,000

1/1/08 -12/31/08 Approved Paid

Payable, 12/31/08

300,000 $ 250,000 $ 200,000

50,000 50,000 150,000 150,000 75,000

5,000,000 500.000 4,500,000

350,000 350,000

75,000 75,000

m ~.442 1000 m 201sos1000 i 161169.000 I 9 18210~0

STATEMENT 22

SARAH SCAIFE FOUNDATION INCORPORATED EIN: 25-1113452 YEAR ENDED: DECEMBER 31, 2008

FORM 990-PF

Federal Footnotes

Allocation of Expenses in Part I:

STATEMENT 23

Compensation of officers, trustees, and other employees, as well as the related employee benefits are allocated based on time spent in carrying out the Foundation's exempt purpose versus time spent in the production of income. Professional fees are allocated based on the nature of services performed for the Foundation. All other expenses are pro-rated based on the salary expense and the Foundation's estimates, with the exception of investment expenses, which are directly related to producing income.

STATEMENT 23


SCHEDULE OF GAINS (LOSSES) FOR TAX ON INVESTMENT INCOME FOR THE YEAR ENDED DECEMBER 31, 2008

(a) (b) (c) (d) (e) (f) (h) {t) Gl (k) {I) (m) Losses from

How Cost or Fair Market column OJ Acquired Gross Other Basis Value as of and gains

Kind of P-Purchase Date Date Sold/ Sales and Expense Gain (loss) December Adjusted Excess of (j) (excess (1) ~ Description D-Donated ~ Matured Pnce of Sale (fl less !hl 31, 1969 Cost Basis over (J<l __ oYfil11ll

Secunty AMBAC Financial Group, Inc p 05118/07 01/18108 $ 167,747 $ 2,445,529 $ (2,277,782) NIA NIA NIA $ {2,277,782)

Secunty US Treasury Notes p 08/07/98 02/15108 1,000,000 1,002,031 {2,031) NIA NIA NIA (2,031)

Secunty AT&T, Inc. p 09122/06 02/28/08 1,512,050 1,385,072 126,978 NIA NIA NIA 126,978

Secunty Fortune Brands, Inc p 09122/06 02/28/08 2,345,634 1,899,052 446,582 NIA NIA NIA 446,582

Seamty llllno1s Tool Works, Inc. p 03114105 02128/08 557,060 524,902 32,158 NIA NIA NIA 32,158

Secunty International Business p 03/12184 02/28/08 4,476,521 1,228,801 3.247,720 NIA NIA NIA J,247,720 Machines, Inc 03115185

03/21/85

Security State Street Corp p 05118/07 02/28108 1,434,998 1,196,286 238,712 NIA NIA NIA 238,712

Secunty United Technologies Corp p 03110/03 02128/08 2,228,733 876,996 1,351,737 NIA NIA NIA 1,351,737

Secunty Houston Wire & Cable p 08/21107 02128/08 45,625 55,531 {9,906) NIA NIA NIA (9,906)

Security Houston Wire & Cable p 08/21/07 02129/08 98,420 122,241 {23,821) NIA NIA NIA (23,821)

Secunty Federal Farm Credrt p 04/30101 04130108 2,000,000 2,007,420 {7,420) NIA NIA NIA {7,420)

Secunty Exxon Mobil Corp p 10/12101 05116108 2,306,385 1,060,173 1,246.212 NIA NIA NIA 1,246,212

Security Merrill Lynch & Co, Inc p 01108/86 05/16/08 2,244,115 524,737 1,719,378 NIA NIA NIA 1,719,378 10/25/95

Security State Street Corp p 05118107 05116/08 1,133,047 1,059,559 73,488 NIA NIA NIA 73,488

(/) Secunty State Street Corp p 05118107 05116108 1,378,653 1,298,815 79,838 NIA NIA NIA 79,838

~ Security State Street Corp p 05118/07 05116/08 1,458,036 1,367,173 90,863 NIA NIA NIA 90,863 1-j [:Ij

3: Secunty Target Corp p 05/18/07 05/16/08 4.612,204 4,924,150 {311,946) NIA NIA NIA (311,946) [:Ij

z Secunty Texas Instruments, Inc p 09122103 05116/08 2,506,400 1,887,214 619,186 NIA NIA NIA 619,186 1-j

(\) Security Lehman Brothers p 05/21108 06/16108 1.296,322 2,108,643 (812,321) NIA NIA NIA (812,321) ,I:> Holdings, Inc


SCHEDULE OF GAINS (LOSSES) FOR TAX ON INVESTMENT INCOME FOR THE YEAR ENDED DECEMBER 31, 2008

(a) (b) (c) (d) (e) (f) (g) (h) (ij {J) (k) rn Losses from

How Cost or Fair Markel column 0) A~u1red Other Basis Value asof and gains

Kind of P-Purchase Date Date/Sold Gross and Expense Gain (loss) December AdJusted Expense of {J) (excess~) Property Descnpt1on D-Donated Acquired Matured sates Price of Sale (f) less (hl 31 1969 Cost Basis ~ over(l))

Secunty US Treasury NIB p 12/31106 08/31/08 $ 4,000.000 S 4,014,531 $ (14,531) NIA NIA NIA $ (14,531)

Security Amencan lntema!lonal p 03/22185 09/19108 643.630 947,200 (303.570) NIA NIA NIA (303,570) Group, Inc 04/04/85

02125193

Security Dentsply lntema11onal, Inc p 02128/08 09/19/08 1,152.759 1,209,806 (57,047) NIA NIA NIA (57,047)

Seamty Gannett, Inc p 03/10/03 09/19/08 638,067 2,378,582 (1,740,515) NIA NIA NIA (1,740,515) 12f22103

Secunty International Business p 03112/84 09119108 1,023,960 229,095 794,865 NIA NIA NIA 794,865 Mact11nes, Inc

Seo.inly Johnson Controls, Inc. p 02123/05 09119/08 2,024.539 1,146,526 878,013 NIA NIA NIA 878,013

Security Novartis, AG p 09/22/06 09/19/08 779.782 877,151 (97,369) NIA NIA N/A (97,369)

Seamty Praxair, Inc p 09120/05 09119/08 1,933,622 1,105,945 827,677 NIA NIA N/A 827,677

Security Procter & Gamble, Co p 09110/02 09/19/08 834,454 537,581 296,873 NIA NIA NIA 296,873

Security 3M Co p 02/23/05 09/19/08 1,482,628 1,663,643 (181,015) NIA NIA NIA (181,015) 06107/05

Secunty Wacllov1a Corp p 05l06/02 09119/08 1, 185,942 2,007,567 (821,625) NIA NIA NIA (821,625)

(/) Seamty Vanguard GNMA Fund p 07101/08 10/08/08 t,702 1,695 7 NIA NIA NIA 7 1-:3

:i:.i 1-:3 til

Security Metllfe, Inc p 05/16/08 10110108 1, 154,500 2,473,670 (t,319,170) NIA NIA NIA (1,319,170)

3: Security Prudential Financial. Inc p 02/27/07 10110/08 1,399,240 3,762.521 (2.363,281) NIA NIA NIA (2,363,281) til z 09125107 1-:3 (\.)

Secunty GTE Northwest p 07/10103 10115108 775,000 860,750 (85,750) NIA NIA NIA (85,750)

.i,.


SCHEDULE OF GAINS (LOSSES) FOR TAX ON INVESTMENT INCOME FOR TliE YEAR ENDED DECEMBER 31, 2008

(a) (b) (c) (d) (e) (I) (g) (h) (1) 0) (k) (I) Losses from

How Cost or Fa,rMarkel column 0) Acquired Other Bas,s Value as of and gains

Kind of P-Purchase Date Date/Sold Gross and Expense Gain (loss) December Ad Justed Expense of G) (excess (ij ~ Descnptlon D-Oonated Acquired Matured Sales Price of Sale m less {h} 31, 1969 Cost Basis over{kl over Cl)}

Security Tennessee Valley p 04/25102 11113/08 $ 3,000,000 $ 3,088,520 $ (88,520) NIA NIA NIA $ (88,520) Authority 08/28/03

Security BB&T Corporation p 02128/08 11/21108 2,031,152 2,798,550 (767,398) NIA NIA NIA (767,398)

Security Carnival Corporation p 02/17106 11/21108 619,224 2,159,255 (1,540,031) NIA NIA NIA (1,540,031)

Sea.inly Dentsply lnl'I Inc p 02/28/08 11/21/08 1,500,618 2,376.n1 (876.153) NIA NIA NIA (876,153) 05116/08

Security General Dynamics Corp p 03110!04 11/21/08 2,228,762 1.934,093 294,669 NIA NIA NIA 294,669

Security Pepsico p 11116107 11/21/08 788,412 1.090,426 (302,014) NIA NIA NIA (302,014)

Secunty Stryker Corp p 12122/03 11/21108 1,216,948 1,975,343 (758,395) NIA NIA NIA (758,395) 09/22/06 09125/07

Seamty United Technologies Corp p 06103/96 11/21/08 1,459,133 566,217 892,916 NIA NIA NIA 892,916 03/10/03

Security Pharmacia Corp p 05/19/04 12/01/08 1 000,000 1 071 680 (71,680) N/A NIA NIA $ m.680) ! 65,676102-4 $ 67.251.443 $ {1.575.419-) $ (1.575.419)

See independent accountants· comp1latlon report.

Cl)

1--'3 :i:,, 1--'3 tI:I 3: tI:I z 1--'3

1'J ~


AMENDED AND RESTATED BYLAWS

February 2008

STATEMENT 25

AMENDED AND RESTATED BYLAWS

OF SARAH SCAIFE FOUNDATION

IN CORPORA TED

ARTICLE 1 - OBJECTS

The objects of the Sarah Scaife Foundation Incorporated (the "Foundation") shall be to receive, administer and distribute funds solely and exclusively for public, religious, charitable, scientific, literary and educational purposes for the furtherance of the public welfare and the benefit of mankind in general. No part of the income of the Foundation from any source whatsoever shall inure to the benefit of any member or individual, and the Foundation shall not engage in any activities which shall constitute carrying on propaganda or otherwise attempting to influence legislation or participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of any candidate for public office.

ARTICLE 2 - MEMBERS

The only members of the Foundation shall be those persons who are at the time duly qualified and acting members of the Board of Trustees of the Foundation.

ARTICLE 3 - BOARD OF TRUSTEES

3.1 Number and Powers. The concerns, direction, and management of the affairs of the Foundation shall be vested in the Board of Trustees, not less than three (3) nor more than nine (9) in number, each of whom must be a natural person of full age, but need not be a resident of the Commonwealth of Pennsylvania. The Trustees shall pursue such policies and principles as shall be in accordance with the provisions of the Foundation's Articles of Incorporation, these Bylaws (including Sections 3.4(c)(I), (2) and (3) hereof), and the statutes of the Commonwealth of Pennsylvania.

3.2 Term. Each Trustee shall be elected for a 3-year term. The terms shall be staggered as designated by the Board of Trustees so that, as nearly as possible, the terms of one-third (1/3) of the total number of Trustees shall expire each year.

STATEMENT 25

3.3 Change of Number. The number of Trustees may at any time be increased or decreased by resolution of the Board of Trustees, but no decrease shall have the effect of shortening the term of any incumbent Trustee.

3.4 Procedure for Nomination of Candidates for Trustees.

(a) No person shall be eligible for election as a Trustee at a meeting of the Board unless he or she has been duly nominated in accordance with the procedures specified in paragraph (b) of this Section and possesses or has demonstrated the prerequisites specified in paragraph (c) of this Section.

(b) The Chairman shall announce at the meeting of the Board the number of Trustees to be elected at the meeting, shall declare the nominations of candidates for election as Trustee are open, and shall call for nominations from the floor. Nominations may be made by any Trustee who is entitled to vote at the meeting. Nominations need not be seconded. After nominations have been made, the Chairman shall, on motion, declare the nominations closed, and thereafter no further nominations may be made.

(c) All nominees shall possess or have demonstrated: (1) a profound commitment to the eleemosynary interests and philosophy of Richard M. Scaife; (2) a commitment to the principles of less government and a high degree of personal and economic liberty and corresponding responsibility, as well as a traditional understanding of vital United States interests and national security; (3) a sophisticated understanding of domestic and world affairs and politics; and (4) a majority of the following attributes:

(i) an educational background consisting of at least a B.A. or B.S. college degree and, preferably, a professional or Masters or Doctorate degree;

(ii) a prior relationship of friendship, trust and/or loyalty with Richard M. Scaife;

(iii) significant experience as a trustee or board member of other eleemosynary institutions which perform philanthropic grant making or other non-profit organizations involved in public policy research compatible with the past activities and interests of the Foundation;

(iv) a clear understanding of the concepts of fiduciary duty and loyalty; (v) sophisticated skill and experience in finance and investment

matters; (vi) sufficient time to prepare for and attend regular Foundation

meetings and related activities; and (vii) no apparent conflicts of interest with past activities or interests of

the Foundation or any of its other Trustees or officers, or with other past practices, activities or interests of the Foundation.

2 STATEMENT 25

3.5 Voting. Each Trustee shall be entitled to one vote at any meeting of the Board ofTrustees. Voting by proxy shall not be permitted.

3.6 Vacancies. All vacancies in the Board of Trustees, whether caused by resignation, death or otherwise, may be filled by the affirmative vote of a majority of the remaining Trustees even though less than a quorum of the Board of Trustees. A Trustee elected to fill any vacancy shall hold office for the unexpired term of his or her predecessor and until a successor is elected and qualified.

3.7 Removal. Any Trustee may be removed at any time, with or without cause, by the affirmative vote of two-thirds (2/3) of the then serving other Trustees.

3.8 Resignations. Any Trustee may resign at any time by giving written notice to the Foundation. The resignation shall be effective upon receipt by the Foundation or at such subsequent time as may be specified in the notice ofresignation.

3.9 Remuneration. No stated salary shall be paid Trustees, as such, for their service, but by resolution of the Board of Trustees, a fixed sum and expenses of attendance, if any, may be allowed for attendance at each regular or special meeting of such Board; provided, that nothing herein contained shall be construed to preclude any Trustee from serving the Foundation in any other capacity and receiving compensation therefor.

3. IO Loans. No loans shall be made by the Foundation to any Trustee.

ARTICLE 4 - MEETINGS OF BOARD OF TRUSTEES

4.1 Regular Meetings. Regular meetings of the Board of Trustees may be held at the registered office of the Foundation or at such other place or places, either within or without the Commonwealth of Pennsylvania, as the Board of Trustees may from time to time designate. The annual meeting shall be held without notice at the registered office of the Foundation, at I 0:00 a.m., on the third Thursday of November each year, or at such other time and place as the Board of Trustees shall designate by written notice. In addition to the annual meeting, there shall be regular meetings of the Board of Trustees as the Board of Trustees may deem advisable, held, with such notice as the Board of Trustees designates by resolution.

4.2 Special Meetings. Special meetings of the Board of Trustees may be called at any time by the Chairman or upon written request by any two Trustees. Such meetings shall be held at the registered office of the Foundation or at such other place or places as the Trustees may from time to time designate. Two days' notice of any special meeting shall be given to each Trustee pursuant to Article 9 or by telephone. Such notice shall state the time and place of such special meeting but need not state the purpose of the special meeting.

3 STATEMENT 25

4.3 Quorum. A majority of the members of the Board of Trustees of the Foundation shall constitute a quorum for the transaction of business.

4.4 Participation in Meetings. One or more Trustees may participate in a meeting of the Board of Trustees or a committee thereof by means of conference telephone, interactive computer network, or similar communications equipment by means of which all persons participating in the meeting can communicate with each other.

4.5 Consent of Trustees in Lieu of Meeting. Any action which may be taken at a meeting of the Board of Trustees may be taken without a meeting, if a consent or consents in writing, setting forth the action so taken, shall be signed by all Trustees and filed with the Secretary of the Foundation.

4.6 Waiver of Notice. Attendance of a Trustee at a meeting shall constitute a waiver of notice of such meeting, except where a Trustee attends for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. A waiver of notice signed by the Trustee or Trustees, whether before or after the time stated for the meeting, shall be equivalent to the giving of notice.

4. 7 Order of Business. The order of business at the annual meeting of the Board of Trustees, and, so far as practicable, at all other meetings, shall be:

(i) Calling the roll (ii) Proof of due notice of meeting (iii) Reading and disposal of minutes (iv) Reports of Trustees and Committees (v) Election of Trustees and Committees (vi) Completion of unfinished business (vii) Transaction of new business (viii) Adjournment

ARTICLE 5 - OFFICERS

5.1 Designation of Officers. The principal officers of the Foundation shall be a Chairman, a President, a Secretary and a Treasurer. The Foundation may have such assistant secretaries, assistant treasurers and other officers as the Board of Trustees may determine from time to time. Any two or more of the principal offices except Chairman, President and Secretary may be held by the same persons. All principal officers shall be elected annually by the Board of Trustees and shall serve for a term of one year or until their successors are elected and qualify and all other officers shall serve for such terms as the Board shall specify. The Board shall have the right at any time to remove any one or more principal or other officers with or without cause. Only the Chairman and the President need be members of the Board. All vacancies among such officers shall be filled by the Board of Trustees.

4 STATEMENT 25

5.2 Chairman. The Chairman shall be the chief executive officer of the Foundation. The Chairman shall preside at all meetings of the Board of Trustees and shall have and perform, subject to the supervision of the Board, the usual powers and duties which pertain to that office.

5.3 President. The President shall be the chief operating officer of the Foundation. The President shall have and perform such powers and duties which may from time to time be prescribed by the Board of Trustees, subject to the supervision of the Board, and in the absence or inability to serve of the Chairman, shall have and perform all of the powers and duties of the Chairman.

5.4 Secretary. The Secretary shall prepare and keep all books and records pertaining to the office of Secretary. The Secretary shall give notice of all meetings to the Board of Trustees, shall keep records of the same, shall keep records of all elections of Trustees, shall affix the seal of the Foundation to all documents when so required and shall have and perform such other duties as may be conferred upon the Secretary by the Board of Trustees.

5.5 Treasurer. The Treasurer shall be the custodian of all monies of the Foundation, shall receive all funds and deposit the same in the name of the Foundation and in general shall have such powers and duties as usually pertain to such office. The records of the Treasurer shall be open at all times to the Board of Trustees or to a duly appointed committee thereof.

5.6 Fiscal Agent. Notwithstanding the provisions of Section 5.5 of these Bylaws, the Board may designate a banking institution as the Fiscal Agent of the Foundation and delegate to it such duties and responsibilities as the Board may prescribe, including any duty or responsibility herein or any bylaw directed to be performed by the Treasurer.

5. 7 Other Officers. The assistant secretaries, assistant treasurers and other officers of the Foundation shall have and may perform such duties as the Board of Trustees, the Chairman or the President may from time to time prescribe.

5.8 Compensation. The compensation of officers and other employees and agents of the Foundation shall be determined by the Board of Trustees.

ARTICLE 6- SEAL

The seal of the Foundation shall have inscribed thereon the name of the Foundation, the year of its founding and the name of the state of its incorporation.

5 STATEMENT 25

ARTICLE 7 - CHECKS, DRAFTS AND CONTRACTS

7.1 Checks. All checks, drafts, bills of exchange and other negotiable instruments shall be signed or endorsed on behalf of the Foundation by the Treasurer or by an assistant treasurer, or by the Fiscal Agent of the Foundation if one may be appointed and is so empowered by the Board of Trustees. The Board may from time to time authorize such instruments to be signed or endorsed by the other officers of the Foundation.

7.2 Contracts. All contracts and other agreements shall be signed and executed on behalf of the Foundation by the Chairman, the President or the Treasurer and the corporate seal thereunto affixed and duly attested by the Secretary or assistant secretary. The Board of Trustees may from time to time authorize other officers to sign or execute on behalf of the Foundation any contract or agreement, and such authority may be general or confined to specific instances.

ARTICLE 8 - INDEMNIFICATION

8.1 Limitation of Trustees' Liability. No Trustee of the Foundation shall be personally liable for monetary damages as such for any action taken or any failure to take any action unless: (a) the Trustee has breached or failed to perform the duties of his or her office under Subchapter B of Chapter 57 of the Pennsylvania Nonprofit Corporation Law, and (b) the breach or failure to perform constitutes self-dealing, willful misconduct or recklessness; provided, however, that the provisions of this paragraph shall not apply to the responsibility or liability of a Trustee pursuant to any criminal statute, or to the liability of a Trustee for the payment of taxes pursuant to local, state or federal law.

8.2 Indemnification and Insurance.

(a) Indemnification of Trustees and Officers.

(i) Each Indemnitee (as defined below) shall be indemnified and held harmless by the Foundation for all actions taken by him or her and for all failures to take action (regardless of the date of any such action or failure to take action) to the fullest extent permitted by Pennsylvania law against all expense, liability, and loss (including without limitation attorneys' fees, judgments, fines, taxes, penalties, and amounts paid or to be paid in settlement) reasonably incurred or suffered by the Indemnitee in connection with any Proceeding (as defined below). No indemnification pursuant to this paragraph shall be made, however, in any case where the act or failure to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness.

6 STATEMENT 25

(ii) The right to indemnification provided in this paragraph shall include the right to have the expenses incurred by the Indemnitee in defending any Proceeding paid by the Foundation in advance of the final disposition of the Proceeding to the fullest extent permitted by Pennsylvania law; provided that, if Pennsylvania law continues so to require, the payment of such expenses incurred by the Indemnitee in advance of the final disposition of the Proceeding shall be made only upon delivery to the Foundation of an undertaking, by or on behalf of the lndemnitee, to repay all amounts so advanced without interest if it shall ultimately be determined that the Indemnitee is not entitled to be indemnified under this paragraph, or otherwise.

(iii) Indemnification pursuant to this paragraph shall continue as to an lndemnitee who has ceased to be a Trustee or an officer and shall inure to the benefit of his or her heirs, executors, and administrators.

(iv) For purposes of this Article:

• "lndemnitee" shall mean each Trustee or officer of the Foundation who was or is a party to, or is threatened to be made a party to, or is otherwise involved in, any Proceeding by reason of the fact that he or she is or was a Trustee or an officer of the Foundation or is or was serving in any capacity at the request or for the benefit of the Foundation as a Trustee, officer, employee, agent, partner or fiduciary of, or in any other capacity for, another corporation or any partnership, joint venture, trust, employee benefit plan, or other enterprise; and

• "Proceeding" shall mean any threatened, pending or completed action, suit or proceeding (including without limitation an action, suit or proceeding by or in the right of the Foundation), whether civil, criminal, administrative or investigative.

(b) Indemnification of Employees and Other Persons. The Foundation may, by action of its Board of Trustees and to the extent provided in such action, indemnify employees and other persons as though they were lndemnitees. To the extent that an employee or agent of the Foundation has been successful on the merits or otherwise in defense of any Proceeding or in defense of any claim, issue or matter therein, the Foundation shall indemnify such person against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

(c) Non-Exclusivity of Rights. The rights to indemnification and to the advancement of expenses provided in this Article shall not be exclusive of any other right that any person may have or hereafter acquire under any statute, provision of the

7 STATEMENT 25

Foundation's Articles of Incorporation or Bylaws, agreements, vote of Trustees, or otherwise.

(d) Insurance. The Foundation may purchase and maintain insurance, at its expense, for the benefit of any person on behalf of whom insurance is permitted to be purchased by Pennsylvania law against any expense, liability or loss, whether or not the Foundation would have the power to indemnify such person under Pennsylvania or other law. The Foundation may also purchase and maintain insurance to insure its indemnification obligations whether arising hereunder or otherwise.

(e) Fund for Payment of Expenses. The Foundation may create a fund of any nature, which may, but need not be, under the control of a trustee or otherwise may secure in any manner its indemnification obligations, whether arising hereunder, under the Articles oflncorporation, by agreement, vote of Trustees, or otherwise.

8.3 Amendment. The provisions of this Article relating to the limitations of Trustees' and officers' liability, to indemnification and to the advancement of expenses shall constitute a contract between the Foundation and each of its Trustees and officers which may be modified as to any Trustee or officer only with that person's consent or as specifically provided for in this paragraph. Notwithstanding any other provision of these Bylaws relating to their amendment generally, any repeal or amendment of this Article which is adverse to any Trustee or officer shall apply to such Trustee or officer only on a prospective basis, and shall not reduce any limitation on the personal liability ofa Trustee of the Foundation, or limit the rights of an lndemnitee to indemnification or to the advancement of expenses with respect to any action or failure to act occurring prior to the time of such repeal or amendment. Notwithstanding any other provision of these Bylaws, no repeal or amendment of these Bylaws shall affect any or all of this Article so as either to reduce the limitation of Trustees' liability or limit indemnification or the advancement of expenses in any manner unless adopted by the unanimous vote of the Trustees of the Foundation then serving; provided that no such amendment shall have retroactive effect inconsistent with the preceding sentence.

8.4 Changes in Pennsylvania Law. References in this Article to Pennsylvania law or to any provision thereof shall be to such law (including without limitation to the Directors' Liability Act) as it existed on the date this Article was adopted or as such law thereafter may be changed; provided that:

(a) in the case of any change which expands the liability of Trustees or limits the indemnification rights or the rights to advancement of expenses which the Foundation may provide, the rights to limited liability, to indemnification and to the advancement of expenses provided in this Article shall continue as theretofore to the extent permitted by law; and

(b) if such change permits the Foundation without the requirement of any further action by Trustees to limit further the liability of Trustees or limit the liability of officers or to provide broader indemnification rights or rights to the advancement of

8 STATEMENT 25

expenses than the Foundation was permitted to provide prior to such change, then liability thereupon shall be so limited and the rights to indemnification and the advancement of expenses shall be so broadened to the extent permitted by law.

ARTICLE 9 - NOTICES

Meeting notices may be sent by mail, electronic facsimile transmission (fax) or other electronic means consented to by the Trustee to whom the notice is given. If sent by mail, the notice shall be effective as of the second full calendar day after depositing in the United States mail with postage pre-paid and addressed to the intended recipient's address as shown in the Foundation's records. If sent by fax, the notice shall be effective upon receipt at the receiving terminal having the intended recipient's fax number shown in the Foundation's records. If sent by electronic mail, the notice shall be effective when directed to an electronic mail address at which the Trustee has consented to receive notice. If notice is given by a posting on an electronic network on which the Trustee has consented to receive notice, together with separate notice to the Trustee of the specific posting, the notice shall be effective upon the later of (i) the posting; and (ii) the giving of the separate notice. If sent by other electronic means, the notice shall be effective when directed to the Trustee.

ARTICLE 10 - AMENDMENTS

These Bylaws may be amended at any regular meeting of the Board of Trustees or at any special meeting thereof called for that purpose by a majority vote of the Board present at such meeting.

9 STATEMENT 25

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