2018 Form 990-PF
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Return of Private Foundation OMB No. 1545-0052 Form 990-PF or Section 4947(a)(1) Trust Treated as Private Foundation 2018 Department of the Treasury a Do not enter social security numbers on this form as it may be made public. Internal Revenue Service a Go to www.irs.gov/Form990PF for instructions and the latest information. Open to Public Inspection For calendar year 2018 or tax year beginning , 2018, and ending , 20 Name of foundation A Employer identification number THE ANNENBERG FOUNDATION 23-6257083 Number and street (or P.O. box number if mail is not delivered to street address) Room/suite B Telephone number (see instructions) 101 WEST ELM STREET SUITE 510 (610) 341-9268 City or town, state or province, country, and ZIP or foreign postal code C If exemption application is pending, check here a CONSHOHOCKEN, PA 19428-2075 G Check all that apply: Initial return Initial return of a former public charity D 1. Foreign organizations, check here . a Final return Amended return 2. Foreign organizations meeting the 85% test, Address change Name change check here and attach computation ..a H Check type of organization: ✔ Section 501(c)(3) exempt private foundation E If private foundation status was terminated under section 507(b)(1)(A), check here ....a Section 4947(a)(1) nonexempt charitable trust Other taxable private foundation ✔ I Fair market value of all assets at J Accounting method: Cash Accrual F If the foundation is in a 60-month termination end of year (from Part II, col. (c), Other (specify) under section 507(b)(1)(B), check here . a line 16) a $ 1,402,322,765 (Part I, column (d) must be on cash basis.) Disbursements Part I Analysis of Revenue and Expenses (The total of (a) Revenue and (d) expenses per (b) Net investment (c) Adjusted net for charitable amounts in columns (b), (c), and (d) may not necessarily equal income income purposes the amounts in column (a) (see instructions).) books (cash basis only) 1 Contributions, gifts, grants, etc., received (attach schedule) 48,273 2 Check a if the foundation is not required to attach Sch. B 3 Interest on savings and temporary cash investments 552,618 552,618 0 4 Dividends and interest from securities .... 11,497,961 20,024,403 0 5a Gross rents ............. 315,632 315,632 0 b Net rental income or (loss) 58,203 6a Net gain or (loss) from sale of assets not on line 10 (9,496,199) b Gross sales price for all assets on line 6a 1,427,771,172 7 Capital gain net income (from Part IV, line 2) . 100,889,935 Revenue 8 Net short-term capital gain ........ 9 Income modifications ......... 0 10a Gross sales less returns and allowances 443,227 b Less: Cost of goods sold . 128,284 c Gross profit or (loss) (attach schedule) .... 314,943 314,943 11 Other income (attach schedule) ...... 1,044,481 20,172,409 134,544 12 Total. Add lines 1 through 11 ....... 4,277,709 141,954,997 449,487 13 Compensation of officers, directors, trustees, etc. 1,078,246 299,849 0 776,187 14 Other employee salaries and wages ..... 8,990,289 128,405 449,487 8,820,428 15 Pension plans, employee benefits ..... 4,872,789 158,549 0 3,215,087 16a Legal fees (attach schedule) ....... 1,249,438 76,027 0 1,018,077 b Accounting fees (attach schedule) ..... 163,381 45,570 0 121,483 c Other professional fees (attach schedule) . 27,475,924 13,769,190 0 13,406,308 17 Interest .............. 0 18 Taxes (attach schedule) (see instructions) . 279,681 317,981 0 257,138 19 Depreciation (attach schedule) and depletion . 4,135,942 4,107 0 20 Occupancy ............. 3,582,559 391,969 0 3,520,578 21 Travel, conferences, and meetings ..... 1,172,327 36,155 0 1,185,420 22 Printing and publications ........ 220,407 821 0 242,024 23 Other expenses (attach schedule) ..... 6,652,690 31,411 0 6,389,202 24 Total operating and administrative expenses. Add lines 13 through 23 ......... 59,873,673 15,260,034 449,487 38,951,932 25 Contributions, gifts, grants paid ...... 128,433,259 73,391,924 Operating and Administrative Expenses 26 Total expenses and disbursements. Add lines 24 and 25 188,306,932 15,260,034 449,487 112,343,856 27 Subtract line 26 from line 12: a Excess of revenue over expenses and disbursements (184,029,223) b Net investment income (if negative, enter -0-) . 126,694,963 c Adjusted net income (if negative, enter -0-) . 0 For Paperwork Reduction Act Notice, see instructions. Cat. No. 11289X Form 990-PF (2018) 4/4/2020 3:59:07 PM 1 2018 Return THE ANNENBERG FOUNDATION 23-6257083 Form 990-PF (2018) Page 2 Part II Balance Sheets Attached schedules and amounts in the description column Beginning of year End of year should be for end-of-year amounts only. (See instructions.) (a) Book Value (b) Book Value (c) Fair Market Value 1 Cash—non-interest-bearing ........... 1,900 1,700 1,700 2 Savings and temporary cash investments ....... 53,875,504 46,853,776 46,853,776 3 Accounts receivable a Less: allowance for doubtful accounts a 0 0 4 Pledges receivable a Less: allowance for doubtful accounts a 0 0 5 Grants receivable ............... 6 Receivables due from officers, directors, trustees, and other disqualified persons (attach schedule) (see instructions) . 0 0 0 7 Other notes and loans receivable (attach schedule) a 0 Less: allowance for doubtful accounts a 0 0 0 0 8 Inventories for sale or use ............ 14,729 14,847 14,847 9 Prepaid expenses and deferred charges ....... 735,617 274,863 274,863 62,739,332 38,363,977 38,363,977 Assets 10a Investments—U.S. and state government obligations (attach schedule) b Investments—corporate stock (attach schedule) ..... 517,383,208 419,482,964 419,482,964 c Investments—corporate bonds (attach schedule) .... 107,712,401 133,876,010 133,876,010 11 Investments—land, buildings, and equipment: basis a 0 Less: accumulated depreciation (attach schedule) a 0 0 0 0 12 Investments—mortgage loans ........... 0 0 0 13 Investments—other (attach schedule) ........ 817,575,461 717,202,247 717,202,247 14 Land, buildings, and equipment: basis a 47,118,660 Less: accumulated depreciation (attach schedule) a 9,754,518 38,565,644 37,364,142 37,364,142 15 Other assets (describe a (SEE STATEMENT) ) 11,354,748 8,888,239 8,888,239 16 Total assets (to be completed by all filers—see the instructions. Also, see page 1, item I) ........ 1,609,958,544 1,402,322,765 1,402,322,765 17 Accounts payable and accrued expenses ....... 4,868,763 6,295,984 18 Grants payable ................ 93,662,777 103,763,944 19 Deferred revenue ............... 20 Loans from officers, directors, trustees, and other disqualified persons 0 0 21 Mortgages and other notes payable (attach schedule) . 0 0 Liabilities 22 Other liabilities (describe a (SEE STATEMENT) ) 15,309,287 13,358,145 23 Total liabilities (add lines 17 through 22) ....... 113,840,827 123,418,073 Foundations that follow SFAS 117, check here ..a and complete lines 24 through 26, and lines 30 and 31. 24 Unrestricted ................. 1,496,116,717 1,278,903,692 25 Temporarily restricted ............. 26 Permanently restricted ............. 1,000 1,000 Foundations that do not follow SFAS 117, check here a and complete lines 27 through 31. 27 Capital stock, trust principal, or current funds ...... 28 Paid-in or capital surplus, or land, bldg., and equipment fund 29 Retained earnings, accumulated income, endowment, or other funds 30 Total net assets or fund balances (see instructions) . 1,496,117,717 1,278,904,692 31 Total liabilities and net assets/fund balances (see Net Assets or Fund Balances instructions) ................. 1,609,958,544 1,402,322,765 Part III Analysis 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 prior year’s return) ................. 1 1,496,117,717 2 Enter amount from Part I, line 27a ...................... 2 (184,029,223) 3 Other increases not included in line 2 (itemize) a 3 0 4 Add lines 1, 2, and 3 ........................... 4 1,312,088,494 5 Decreases not included in line 2 (itemize) a (SEE STATEMENT) 5 33,183,802 6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30 . 6 1,278,904,692 Form 990-PF (2018) 4/4/2020 3:59:07 PM 2 2018 Return THE ANNENBERG FOUNDATION 23-6257083 Form 990-PF (2018) Page 3 Part IV Capital Gains and Losses for Tax on Investment Income (a) List and describe the kind(s) of property sold (for example, real estate, (b) How acquired (c) Date acquired (d) Date sold P—Purchase 2-story brick warehouse; or common stock, 200 shs. MLC Co.) D—Donation (mo., day, yr.) (mo., day, yr.) 1a MANAGED PORTFOLIO PURCHASE b PASSTHROUGHS: SHORT TERM CAP GAINS PURCHASE c PASSTHROUGHS: LONG TERM CAP GAINS PURCHASE d PASSTHROUGH: SANDERSON INT'L VALUE FUND PURCHASE 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 1,234,693,982 1,246,216,445 (11,522,463) b 12,379,407 12,379,407 c 81,227,805 81,227,805 d 89,973,779 71,168,593 18,805,186 e Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69.