2011 Verizon Foundation Tax Package PDF
2011 Verizon Foundation Tax Package PDF
1545-0052
City or town, state, and ZIP code C If exemption application is pending, check here •D
BASKING RIDGE NJ 07920
G Check all that apply: 0 Initial return 0 Initial return of a former public charity D 1. Foreign organizations, check here •D
0 Final return 0 Amended return 2. Foreign organizations meeting the 85% test,
0 Address change 0 Name change check here and attach computation . •D
H Check type of organization : [XJ Section 501 (c)(3) exempt private foundation E If private foundation status was terminated
D Section 4947(a)(1) nonexempt charitable trust D Other taxable private foundation under section 507(b)(1)(A), check here . •D
I Fair market value of all assets at end J Accounting method: D Cash
D Other (specify} ___ ______ [XJ Accrual F If the foundation is in a 60-month termination
of year (from Part II, col. (c),
line 16) • $
___ ___ _____ _____
144,451 318 (Part I, column (d) must be on cash basis.)
under section 507(b)(1 )(B) , check here
•D
limlll Analysis of Revenue and Expenses (The total of (a) Revenue and
(b) Net investment (c) Adjusted net
(d) Disbu rsements
for charitable
amounts in columns (b), (c), and (d) may not necessarily equal expenses per
income income purposes
the amounts in column (a) (see instructions).) books
(cash basis only)
1 Contributions, gifts, grants, etc. , received (attach schedule) 853,566
2 Check •D if the foundation is not requ ired to attach Sch . B
3 Interest on savings and temporary cash investments 67 465 67,465
4 Dividends and interest from securities 4 120 942 4 120 942
5 a Gross rents 0
f1) b Net rental income or (loss) 0
~ 6 a Net gain or (loss) from sale of assets not on line 10 15 230,467
b Gross sales price for all assets on line 6a 74 057 836
-'
f1)
a: 7 Capital gain net income (from Part IV, line 2) 15,230 467
8 Net short-term capital gain 0
9 Income modifications
10 a Gross sales less returns and allowances ( 0
b Less: Cost of goods sold . 0
c Gross profit or (loss) (attach schedule} 0
11 Other income (attach schedule) 0 0 0
12 Total. Add lines 1 through 11 20 272 440 19 418 874 0
II) 13 Compensation of officers, directors, trustees, etc. 0
5:r::: 14 Other employee salaries and wages
15 Pension plans, employee benefits
~
>< 16 a Legal fees (attach schedule) . . . 0 0 0 0
w b Accounting fees (attach schedule} . 65 000 0 0 0
f1)
> c Other professional fees (attach schedule) 5 626 476 0 0 5 586 112
-
'.;:
...ca 17 Interest .
.!!! 18 Taxes (attach schedule} (see instructions) . -436 884 0 0 0
.5 19 Depreciation (attach schedule) and depletion 100 138 0 0
E 20 Occupancy
"C
< 21 Travel , conferences, and meetings 271 617
"C
r::: 22 Printing and publications
ca
23 Other expenses (attach schedule) 4 406 383 555 399 0 3 915 081
-~ca
-
...
~
24
25
Total operating and administrative expenses.
Add lines 13 through 23
Contributions, gifts, grants paid
10 032 730
41 901 581
555 399 0 9 501 193
56 282,791
0 26 Total expenses and disbursements. Add lines 24 and 25 . 51 934 311 555 399 0 65 783 984
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements . -31 661 871
b Net investment income (if negative, enter -0-) . 18 863 475 --
c Adjusted net income (if negative, enter -0-) . 0
Form 990-PF (2011) VERIZON FOUNDATION
lit ill Balance Sheets Attached schedules and amounts in the description column
---·- should be for end-of-year amounts only. (See instructions.)
1 Cash-non-interest-bearing . . . . . . . . .
2 Savings and temporary cash investments . . . .
3 Accounts receivable ...
--------------------------- --- -------
Less: allowance for doubtful accounts ...
4 Pledges receivable ... _______________ _____ ________________ __ _Q
Less: allowance for doubtful accounts ... ___ ___________ ______QI---------"'+--------"'+------,--.=.
5 Grants receivable . . . . . . . . . . . . . . . . .
6 Receivables due from officers, directors, trustees , and other
disqualified persons (attach schedule) (see instructions) . . . . .
7
Less: allowance for doubtful accounts ... __ ____ __ __ ______ ___ _ _______Qf-_ __:__ _ __::::+---,.---''----=t-------=
,!!J 8 Inventories for sale or use . . . . . . . . . . . . . . . . .
5l 9 Prepaid expenses and deferred charges . . . . . . . .
Ill
<( 10 a Investments-U.S. and state government obligations (anach schedule) .
b Investments-corporate stock (attach schedule)
c Investments-corporate bonds (attach schedule) . . . . .
11 Investments-land, buildings , and equipment: basis ... _________ _ _______ Q ---------I- ---- - -""1----....:..-...,;.
Less : accumulated depreciation (anach schedule) ... _________________Q1 - - - - - - - - - " ' + - - - - - - - - - " ' t - - - - - - - . = .
12 Investments-mortgage loans . . . .
13 Investments-other (attach schedule) . .
14 Land, buildings, and equipment: basis ... _________________ ~-~~ ._?_f!~ .....,_..___ _...._______---'__.--~ _....,._.______,
1 1 1
Less: accumulated depreciation (anach schedule) ... __________ ___ _;3-~~.~_'!~f-----'-'-=:.J.::.:::....:.+------'-..:....:.L:.....=t--'-:.;..:...:'---'-..:....:.1.!.......:::..
15 Other assets (describe ... _~~~- ~.!t_~~~~9 _$!~t_~'!l-~~t_ ___________ _) 1-------"'..:...=:.'-'-='-'+----::....;...:..c.::;...:...:..+---'----"-...:...:..<..::....:'-'-
16 Total assets (to be completed by all filers-see the
instructions. Also, see 1, item . . . . . . . . . . . .
17 Accounts payable and accrued expenses
Ill 18 Grants payable . . . . . . . . . . . . . . . . .
Cl)
19 Deferred revenue . . . . . . . . . . . . . . . .
:2
Jl
20 Loans from oHicers, directors, trustees, and other disqualified persons
ca 21 Mortgages and other notes payable (attach schedule) . .
;;J
22 Otller liabilities (describe ... _"I~~~-~?Y_C!_~ I~- _______ _______ ____} ,_____::::....:..:...z..::::..::4 _ _ _ _~.:.J.:::~
23 Total liabilities (add lines 17 through 22) . . . . . . .
Ill
Cl)
Foundations that follow SFAS 117, check here . . . . . ... 0
u and complete lines 24 through 26 and lines 30 and 31 .
1:
ca 24 Unrestricted . . . .
iii 25 Temporarily restricted . . . . . . . . . . . . . .
ID
"tJ 26 Permanently restricted . . . . . . . . . . . . . .
1:
::I
u.
Foundations that do not follow SFAS 117, check here . . ... D
and complete lines 27 through 31 .
...0
-Ill
Cl)
en
27
28
29
Capital stock, trust principal, or current funds . . . . . .
Paid-in or capital surplus, or land, bldg., and equipment fund
Retained earnings, accumulated income, endowment, or other funds .
-
Ill
<( 30 Total net assets or fund balances (see instructions) . . . . . .
Cl) 31 Total liabilities and net assets/fund balances (see
z instructions). . . . . . . . . . . . . . . . . . . . . . .
Total net assets or fund balances at beginning of year-Part II , column (a) , line 30 (must agree with
end-of-year figure reported on prior year's retum) .
2 Enter amount from Part I, line 27a . . . . .
3 Other increases not included in line 2 (itemize) ... ___________________ __ _______________________________ 1-"--+-------~
4 Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 Decreases not included in line 2 (itemize) ... ____________________ _________________ ______ ________________ t--"--+-------'=..::....:.....:.z..:::;~
6 Total net assets or fund balances at end of (line 4 minus line 5)-Part II, column (b), line 30 . . . . . . .
d ..
e
(f) Depreciation allowed (g) Cost or other basis (h) Gain or (loss)
(e) Gross sales price
(or allowable) plus expense of sale (e) plus (f) minus (g)
a 0 0 0 15,230,467
b 0 0 0 0
c ' "' . 0
:··~·
0
. 0
L
0
d 0 0 0 0
e --- 0 0 0 0
Complete only for assets showing gain in column (h) and owned by the foundation on 12/31 /69 (I) Gains (Col. (h) gain minus
(j) Adjusted basis (k) Excess of col. (i) col. {k), but not less than -0-) or
(i) F.M.V. as of 12/31/69
as of 12/31/69 over col. OJ, if any Losses (from col. (h))
15 230 467
a
b - 0
0
0
0 '
.. ~ . ~-:
0
0
. 0
c 0 0 - - 0
>';. ···~
0
d 0 0 t
0 ~ - i~"\ 0
e - 0 0 0 .1' 0
4 Enter the net value of noncharitable-use assets for 2011 from Part X, line 5 4 178,360 537
6 Enter 1% of net investment income (1% of Part I, line 27b) 6 188 635
1 a During the tax year, did the foundation attempt to influence any national, state, or local legislation or did it
participate or intervene in any political campaign? . . . . . . . . . . . . . . . . . . . . . .
b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of the
instructions for definition)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If the answer is "Yes' to 1a or 1b, attach a detailed description of the activities and copies of any materials
published or distributed by the foundation in connection with the activities.
c Did the foundation file Form 1120-POL for this year? . . . . . . . . . . . . . . . . . . . . . .
d Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:
(1) On the foundation . ... $ 0 (2) On foundation managers . ... $ ----------=-
e Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed
on foundation managers. ... $ ----------
2 Has the foundation engaged in any activities that have not previously been reported to the IRS? . . . . .
If "Yes, • attach a detailed description of the activities.
3 Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles
of incorporation, or bylaws, or other similar instruments? If ' Yes, • attach a conformed copy of the changes . .
4 a Did the foundation have unrelated business gross income of $1 ,000 or more during the year? .
b If 'Yes,' has it filed a tax return on Form 990-T for this year? . . . . . . . . . . . .
5 Was there a liquidation, termination, dissolution, or substantial contraction during the year? . .
If ' Yes, • attach the statement required by Genera/Instruction T.
6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either:
• By language in 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 in the governing instrument? . . . . . . . . . . . . . . . . . . . . . . .
7 Did the foundation have at least $5,000 in assets at any time during the year? If ' Yes, • complete Part II, col. (c), and Part XV .
8 a Enter the states to which the foundation reports or with which it is registered (see instructions) ..,..
-g~·- t:J~J _t:ffJ -~ t\_- ---------------------------------------------------------------------------------------- .
b If the answer is ' 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 Genera/Instruction G? If ' No, • attach explanation . . . . .
9 Is the foundation claiming status as a private operating foundation within the meaning of section 49420)(3)
or 49420)(5) for calendar year 2011 or the taxable year beginning in 2011 (see instructions for Part XIV)? If ' Yes, •
complete Part XIV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Did any persons become substantial contributors during the tax year? If ' Yes, • attach a schedule listing
their names and addresses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 X
Form 990-PF (2011)
13-3319048 Page 5
At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the
meaning of section 512(b)(13)? If ' Yes,' attach schedule (see instructions) . . . . . . . . . . . 11 X
,2 Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had
advisory privileges? If ' Yes,' attach statement (see instructions) . . . . . . . . . . . . . . . . . . . . . 12 X
13 Did the foundation comply with the public inspection requirements for its annual returns and exemption application? . . . 13 X
Website address .... Y'!Y'!Y'!~Y-~13J?Q~f..Q!-!~P..~TJ9.1':! :Qf!<?___ _______________ ___________________ ---------------- --------------- .
14 The books are in care of .... .IY!I~IjA_~~-~·_IY!Qf!f3~~~-------- - ---- - --------- - -- Telephone no . .... _(9_Q~)_?_?_9_-_1_~QQ ____ ________ .
Located at ..,. _1_y_~f3J?Q~.W~X._I?N?t<Jt-l.G_13!Q.m:1 _f':!L _____________ __________________ ZIP+4..,. _Q?~?9_____________________ .
15 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041-Check here . . . . . . . . . . .... D
and enter the amount of tax-exempt interest received or accrued during the year . . . . . . . . . . . ..,.
16 At any time during calendar year 2011 , did the foundation have an interest in or a signature or other authority
over a bank, securities, or other financial account in a foreign country? . . . . . . . . . . . . . . . .
See the instructions for exceptions and filing requirements for Form TO F 90-22.1. If 'Yes,• enter the name of
the ....
Statements Regarding Activities for Which Form 4720 May Be Required
File Form 4720 if any item is checked in the "Yes" column, unless an exception applies.
1a During the year did the foundation (either directly or indirectly) :
(1) Engage in the sale or exchange, or leasing of property with a disqualified person? . DYes ~No
(2) Borrow money from , lend money to, or otherwise extend credit to (or accept it from)
a disqualified person? . . . . . . . . . . . . . . . . . . . . . . . . DYes ~No
(3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? ~Yes 0No
(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? . . . . . . . ~Yes 0No
(5) Transfer any income or assets to a disqualified person (or make any of either available
for the benefit or use of a disqualified person)? . . . . . . . . . . . . . . DYes ~No
(6) Agree to pay money or property to a government official? (Exception. Check 'No'
if the foundation agreed to make a grant to or to employ the official for a period
after termination of government service, if terminating within 90 days.) . . . . . . . . . . . D Yes ~ No
b If any answer is 'Yes' to 1a(1)-(6), did any of the acts fail to qualify under the exceptions described in Regulations
section 53.4941 (d)-3 or in a current notice regarding disaster assistance (see instructions)? . . . . . . . . . . . .
Organizations relying on a current notice regarding disaster assistance check here . . . . . . . . .... 0
c Did the foundation engage in a prior year in any of the acts described in 1a, other than excepted acts ,
that were not corrected before the first day of the tax year beginning in 2011? . . . . . . . . . .
2 Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private
operating foundation defined in section 49420)(3) or 49420)(5)):
a At the end of tax year 2011, did the foundation have any undistributed income (lines 6d
and 6e, Part XIII) for tax year(s) beginning before 2011? . . . . . . . . . . . . . . . . . . . 0 Yes ~ No
If 'Yes,' list the years .... 20 , 20 , 20 , 20
b Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)
(relating to 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 instructions .) . . . . . . . . . . . . .
c If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here .
.... 20 20- - - - - - - - ' 20- - - - - - ' 20 - - - - - -
3a Did the foundation hold more than a 2% direct or indirect interest in any business
enterprise at any time during the year? . . . . . . . . . . . . . . . . . . . . . . . . . D Yes ~ No
b If ' Yes,' did it have excess business holdings in 2011 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 Commissioner 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 in 20 11.) . . . . . . . . . . . . . . . . . . . .
4a Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes? . . . .
b Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its charitable
that had not been removed from before the first of the tax in 2011? . . . . . . .
Form990-PF (2011 )
13-3319048 Page 6
5a During the year did the foundation pay or incur any amount to:
(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? DYes ~No
(2) Influence the outcome of any specific public election (see section 4955) ; or to carry
on, directly or indirectly, any voter registration drive? . . . . . . . . . DYes ~No
(3) Provide a grant to an individual for travel, study, or other similar purposes? . . . . DYes ~No
(4) Provide a grant to an organization other than a charitable, etc., organization described
in section 509(a)(1 ), (2) , or (3) , or section 4940(d)(2)? (see instructions) . . ~Yes 0No
(5) Provide for any purpose other than religious , charitable, scientific, literary, or
educational purposes, or for the prevention of cruelty to children or animals? . . . . . . . . . D Yes ~ No
b If any answer is ' Yes ' to 5a(1 )-(5), did any of the transactions fail to qualify under the exceptions described in
Regulations section 53.4945 or in a current notice regarding disaster assistance (see instructions)? .
Organizations relying on a current notice regarding disaster assistance check here . .
c If the answer is ' Yes" to question 5a(4), does the foundation claim exemption from the
tax because it maintained expenditure responsibility for the grant? . . . . . . ~Yes 0No
If "Yes, • attach the statement required by Regulations section 53.4945-S(d).
Ga Did the foundation, during the year, receive any funds , directly or indirectly, to pay
premiums on a personal benefit contract? . . . . . . . . . . . . . . . . DYes ~No
b Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract?
If "Yes ' to 6b, file Form 8870.
7a At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? . . . D Yes ~ No
b If 'Yes ,' did the foundation receive any proceeds or have any net income attributable to the transaction? . . . . . . . . . 7b
Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
and Contractors
1 List all officers, directors, trustees, foundation managers and their compensation (see instructions).
(b) Title, and average (c) Compensation (d) Contributions to
(e) Expense account,
(a) Name and address hours per week (If not paid, enter employee benefit plans
devoted to position -0-) and deferred compensation other allowances
-~~~~------------------------------------------ · 0 0 0
.00
.00 0 0 0
.00 0 0 0
.00 0 0 0
.00 0 0 0
Total number of other employees paid over $50,000
Form 990-PF (2011)
Form 990-PF (2011) VERIZON FOUNDATION 13-3319048 Page 7
I@IQI!I Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
and Contractors (continued)
3 Five highest-paid independent contractors for professional services (see instructions). If none, enter "NONE. "
(a) Name and address of each person paid more than $50,000 (b) Type of service (c) Compensation
I 0
_._ ' 0
0
Total number of others receivinQ over $50,000 for professional services
1 NOT APPLICABLE
------ -- -- --- ---- ---- ----- ----------- -------- -- --- ----- -------- -- ---------------------------------- --
0
Total. Add lines 1 through 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
Form 990-PF (2011)
Form 990-PF (2011} VERIZON FOUNDATION 13-3319048 Page 8
I@Q Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,
see instructions )
'
Fair market value of assets not used (or held for use) directly in carrying out charitable , etc.,
purposes: _
a Average monthly fair market value of securities i---=-1=a-t-----'1:..:5:..:.7..L,6::.:7c..:O::..z.:::.8..:..18=-
b Average of monthly cash balances i---=-1=b-t----=2:..::3:.!..,4..:..0:..:5:..!.,.::.86.::.9:::...
c Fair market value of all other assets (see instructions) I----=-1-=c-t--------
d Total (add lines 1a, b, and c) 1---'-1=d-+-_ _..:.1.::.8..:..1•c::0..:..7.::.6c::,6:..:8~7
e Reduction claimed for blockage or other factors reported on lines 1a and
1c (attach detailed explanation)
1~1=e~~--------~--
2 Acquisition indebtedness applicable to line 1 assets 2
3 Subtract line 2 from line 1d 3 181 076,687
4 Cash deemed held for charitable activities . Enter 1 Y2 %of line 3 (for greater amount, see
instructions) 4 2,716 150
5 Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4 . 5 178,360,537
6 Minimum investment return. Enter 5% of line 5 6 8,918,027
•::~m•:•• Distributable Amount (see instructions) (Section 4942U)(~nd 0)(5) private operating
oundations and certain fore1gn orgamzat1ons check here ..,. [J and do not complete this part )
1 Minimum investment return from Part X, line 6 1 8918027
2a Tax on investment income for 2011 from Part VI , line 5 188 635
b Income tax for 2011 . (This does not include the tax from Part VI .) 0
c Add lines 2a and 2b 2c 188 635
3 Distributable amount before adjustments. Subtract line 2c from line 1 3 8 729 392
4 Recoveries of amounts treated as qualifying distributions 4
5 Add lines 3 and 4 5 8 729,392
6 Deduction from distributable amount (see instructions) 6
7 Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII ,
line 1 7 8,729,392
.
.;r.n•:m Quahfymg D1stnbut1ons (see mstruct1ons)
1 Amounts paid (including administrative expenses) to accomplish charitable , etc., purposes:
a Expenses, contributions, gifts, etc.-total from Part I, column (d), line 26 I~ 65 847,672
b Program-related investments- total from Part IX-B 1b 0
2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
purposes 2
3 Amounts set aside for specific charitable projects that satisfy the:
1-
a Suitability test (prior IRS approval required) 3a
b Cash distribution test (attach the required schedule) 3b 0
4 Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4 . 4 65 847 672
5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment
income. Enter 1% of Part I, line 27b (see instructions) 5 188,635
6 Adjusted qualifying distributions. Subtract line 5 from line 4 6 65 659,037
Note. The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation
qualifies for the section 4940(e) reduction of tax in those years.
(b) (c)
1 Distributable amount for 2011 from Part XI , 2010
line 7 . . . . . . . . . . . . . . .
2 Undistributed income, if any, as of the end of 2011 :
a Enter amount for 2010 only . . . . . . . . . .
b Total for prior years: 20 _ _ , 20 _ _ , 20 _ _
3 Excess distributions carryover, if any, to 2011 :
a From 2006
b From 2007
c From 2008
d From 2009
e From 2010
f
Total of lines 3a through e
4 Qualifying distributions for 2011 from Part
XII , line 4: ... $ 65 ,847,672
a Applied to 2010, but not more than line 2a
b Applied to undistributed income of prior years
(Election required-see instructions) . . . .
c Treated as distributions out of corpus (Election
required-see instructions) . . . . . . .
d Applied to 2011 distributable amount . . . .
e Remaining amount distributed out of corpus . . . .
5 Excess distributions carryover applied to 2011 .
(If an amount appears in column (d), the
same amount must be shown in column (a).)
6 Enter the net total of each column as
indicated below:
a Corpus. Add lines 3f, 4c, and 4e. Subtract line 5 .
b Prior years' undistributed income. Subtract
line 4b from line 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 line 6c from line 6b. Taxable
amount-see instructions . . . . .
e Undistributed income for 2010. Subtract line
4a from line 2a. Taxable amount-see
instructions . . . . . . . . . . . . .
f Undistributed income for 2011. Subtract
lines 4d and 5 from line 1. This amount must
be distributed in 2012 . . . . . . . .
7 Amounts treated as distributions out of
corpus to satisfy requirements imposed by
section 170(b)(1 )(F) or 4942(g)(3) (see instructions) .
8 Excess distributions carryover from 2006
not applied on line 5 or line 7 (see instructions) .
9 Excess distributions carryover to 2012.
Subtract lines 7 and 8 from line 6a
10 Analysis of line 9:
a Excess from 2007
b Excess from 2008
c Excess from 2009
d Excess from 2010
e Excess from 2011
Page 10
see instructions and Part VIl-A,
1 a If the foundation has received a ruling or determination letter that it is a private operating
foundation , and the ruling is effective for 2011 , enter the date of the ruling . . . . . .
b Check box to indicate whether the foundation is a private operating foundation described in section D 4942(j)(3) or D 4942(j)(5)
2a Enter the lesser of the adjusted net Tax year Prior 3 years
income from Part I or the minimum (e) Total
(a) 2011 (b) 2010 (c) 2009 (d) 2008
investment return from Part X for each
year listed .
b 85% of line 2a
0
...:-: .. ' 0 0
. 0 0
0
0
.. ~
NOT APPLICABLE
b The form in which applications should be submitted and information and materials they should include:
WWW .VERIZONFOUNDATION.ORG
c Any submission deadlines:
1\10
d Any restrictions or limitations on awards, such as by geographical areas, charitable fields , kinds of institutions, or other
factors:
,,'!I•.
• the accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes). (See instructions.)
NOT APPLICABLE
- - .
--
~
_!_
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Form 990-PF (2011)
Verizon Foundation
Tax Year 2011
Schedule of Expenses on Page 1
Part I
Publicly
Traded AboveNet Total Gain
Description: Securities Shares (Loss)
Date acquired: Various Various
Date sold : Various Various
Book Gain
Gross Sales Priced 73,214,873 842,963 74,057,836
Cost or Other Basis 58,827,369 58,827,369
Book Gain (Loss) 14,387,504 842,963 15,230,467
TAX GAIN
Gross Sales Priced 73,214,873 842,963 74,057,836
Cost or Other Basis 58,827,369 58,827,369
Tax Gain (Loss) 14,387,504 842,963 15,230,467
Substantiation of Exercise of Expenditure Responsibility
Form 990-PF, Part VII-B, Line 5
rhe following information is provided in accordance with IRC Section 4945(h) (3) and Reg. 53-4945-5(d) to demonstrate that the Foundation exercised
'iscal responsibility in regard to its grants:
~arne& Address Amount Date of Purpose of Grant Amounts Report Dates Fund Diversion
>fGrantee of Grant Grant Expended by Statement
lTI
l) American Red $60 10/27/11 This payment was made as part of the $60 Furnished Upon To the knowledge of the
=:ross, PO Box Verizon Foundation's Employee Request Foundation, and based on
the reports furnished by
;o0814 ,Saipan, Matching Gift Program. the contractor to date, no
\1P 96950 part of the funds have
~orthern been used for any purposes
\1arianas Islands other than those
contemplated by the
. agreement .
~)The Swinfen $50,000 12/19111 Cash grant to support the Swinfen $50,000 Furnished Upon To the knowledge of the
::::haritable Trust, Charitable Trust Mobile Telemedicine Request Foundation, and based on
the reports furnished by
)ene House, Program. the contractor to date, no
)ene Farm Lane, part of the funds have
Ningham, been used for any purposes
::::anterbury CT3 other than those
lNU, United contemplated by the
agreement.
Gngdom
------- - --- - -- -
FINANCIAL STATEMENTS
Verizon Foundation
Years Ended December 31, 2011 and 2010
With Report of Independent Auditors
Financial Statements
Contents
We have audited the accompanying balance sheets of Verizon Foundation (the “Foundation”) as
of December 31, 2011 and 2010, and the related statements of activities and cash flows for the
years then ended. These financial statements are the responsibility of the Foundation’s
management. Our responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United
States. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. We were not engaged
to perform an audit of the Foundation’s internal control over financial reporting. Our audits
included consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Foundation’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Verizon Foundation at December 31, 2011 and 2010, and the changes in
its net assets and its cash flows for the years then ended in conformity with U.S. generally
accepted accounting principles.
September 7, 2012
1
A member firm of Ernst & Young Global Limited
Verizon Foundation
Balance Sheets
December 31
2011 2010
Assets
Cash and cash equivalents $ 19,761,299 $ 19,861,584
Investment income receivable 563,239 631,858
Investments, at fair value 123,603,935 180,571,951
Prepaid expenses 381,102 286,863
Fixed assets, net of accumulated depreciation
of $397,543 and $297,405 141,743 175,281
Total assets $ 144,451,318 $ 201,527,537
2
Verizon Foundation
Statements of Activities
Expenses
Grants 41,901,581 62,766,957
General, administrative and other 10,533,300 11,588,020
(Benefit) provision for federal excise tax (436,884) 586,866
Total expenses 51,997,997 74,941,843
3
Verizon Foundation
4
Verizon Foundation
1. Organization
The Foundation was formed in December 1985 exclusively for charitable purposes, as specified
in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”), including making
contributions to organizations which qualify as exempt organizations under the Code.
Use of Estimates
The financial statements are prepared on the accrual basis in conformity with U.S. generally
accepted accounting principles, which require management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements and accompanying
notes. Actual results could differ from those estimates.
Unrestricted net assets represent funds which are fully available, at the discretion of the Board of
Directors and management, for the Foundation to utilize in any of its programs or supporting
services.
All highly liquid financial instruments with an original maturity of three months or less when
purchased are classified as cash equivalents. Cash equivalents are stated at cost, which
approximates fair value, and include amounts held in money market funds. The Foundation has
cash and cash equivalents on deposit with one financial institution of high-credit quality and, at
times, such cash and cash equivalents may be in excess of federally insured limits.
5
Verizon Foundation
Contributions
The Foundation records cash contributions and unconditional promises to make cash
contributions as revenue upon receipt of the cash or the unconditional promise. Noncash
contributions are recorded at fair value upon receipt. The Foundation received equity securities
from a subsidiary of Verizon with a fair value of $853,566 and $7,668,317, which were
subsequently sold for $842,962 and $7,059,073 in cash in May 2011 and June 2010,
respectively. The Foundation recorded no cash contributions during 2011 and 2010.
Additionally, Verizon contributed certain legal, tax and investment services and office facilities
to the Foundation. The estimated fair value of the contributed services ($63,688 for 2011 and
$61,238 for 2010) is reflected in the accompanying statements of activities as Contributions and
as General, administrative and other expenses.
Investments
Investments are carried at fair value according to the accounting pronouncement on fair value
measurements. Income earned from investments, including realized and unrealized gains and
losses, is included in the accompanying statements of activities.
Premiums and discounts related to debt securities are included in the cost of investments and are
amortized over the life of the investment using the constant yield method. Realized gains and
losses on the sale of investments are determined on the specific-identification basis.
Fixed Assets
Fixed assets are recorded at cost and primarily consist of data processing equipment and
software. Depreciation is calculated using the straight-line method over the estimated useful life
of three to five years.
6
Verizon Foundation
The Board of Directors may approve grants that are not disbursed in the year approved.
Commitments that are unconditional promises to give are recorded as liabilities at their present
value at the date of grant. Commitments that are not unconditional promises to give are
recognized as liabilities when certain conditions are met. The discount rate applied to multi-year
grants approximates fair value in accordance with the accounting standard on fair value
measurements. At December 31, 2011, grants payable were discounted using interest rates
ranging from 5.79% to 6.32%.
Taxes
The Foundation is exempt from federal income taxes under the Code. However, as a private
foundation, the Foundation is subject to an excise tax not to exceed 2% of net investment
income, including realized gains, as defined under Code Section 4940(a). The current (benefit)
provision for federal excise tax for the years ended December 31, 2011 and 2010 amounted to
($23,754) and $279,604, respectively. The deferred (benefit) provision for federal excise tax,
representing taxes on unrealized appreciation on investments, amounted to $(413,130) and
$307,262 for the years ended December 31, 2011 and 2010, respectively. The current and
deferred benefits for federal excise tax in 2011 reflect an adjustment in the excise tax rate
applicable to the Foundation from 2% to 1% for the years ended December 31, 2011, 2010 and
2009. Management has determined that the Foundation had no uncertain tax positions that
would require financial statement recognition as of and for the years ended December 31, 2011
and 2010, respectively.
7
Verizon Foundation
Fair value represents the amount that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants. The accounting standard on fair
value measurements also establishes a three-tier hierarchy for inputs used in measuring fair
value.
Level 2: Observable inputs other than quoted prices in active markets for identical assets and
liabilities
Financial assets and liabilities are classified in their entirety based upon the lowest level of input
that is significant to the fair value measurement. The Foundation’s assessment of the significance
of a particular input to the fair value measurement requires judgment, and may affect the
valuation of the assets and liabilities being measured and their placement within the fair value
hierarchy. The Foundation recognizes transfers between levels of the fair value hierarchy as of
the end of the reporting period. There were no transfers within the fair value hierarchy during
2011 or 2010. Refer to Note 3 for the classification of investments, which are carried at fair
value, within the three categories described above.
Subsequent Events
The Foundation has evaluated subsequent events through September 7, 2012, the date the
financial statements were available to be issued.
8
Verizon Foundation
3. Investments
2011 2010
Cost Fair Value Cost Fair Value
U.S. Government and
corporate obligations $ 76,195,049 $ 80,386,733 $ 84,414,721 $ 87,564,037
Equity investments 33,985,476 43,217,202 68,789,006 93,007,914
$ 110,180,525 $ 123,603,935 $ 153,203,727 $ 180,571,951
The following table summarizes the levels of the Foundation’s investments in the fair value
hierarchy as described in Note 2:
4. Investment Income
Investment income for the years ended December 31, 2011 and 2010 consisted of the following:
2011 2010
9
Verizon Foundation
5. Grants Payable
The Foundation had authorized unconditional grants to qualifying organizations at December 31,
2011 as follows:
2012 $ 10,833,928
2013 1,542,500
2014 100,000
2015 100,000
2016 and thereafter 300,000
Gross grants payable 12,876,428
Less: discount (183,373)
$ 12,693,055
General, administrative and other expenses for 2011 and 2010 included $3,299,886 and
$3,531,296, respectively, for administrative services provided to the Foundation by certain
employees of Verizon. Of these amounts, $1,015,216 and $1,044,822 were payable to Verizon at
December 31, 2011 and 2010, respectively, and are included in Accounts payable and accrued
expenses in the accompanying balance sheets.
Total expenses for 2011 and 2010 are classified on a functional basis as follows:
2011 2010
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