lefile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 934932790033951 990 Return of Organization Exempt From Income Tax OMB No 1545-0047 Form Under section 501 (c), 527, or 4947 ( a)(1) of the Internal Revenue Code (except private foundations) 201 4 Department of the Treasury Do not enter social security numbers on this form as it may be made public Internal Revenue Service 1-Information about Form 990 and its instructions is at www.IRS.gov/form990 A For the 2014 calendar year, or tax year beginning 01-01-2014 , and ending 12-31-2014 C Name of organization B Check if applicable D Employer identification number THE HENRY M PAULSON JR INSTITUTE F Address change 45-2430087 F Name change Doing business as THE PAULSON INSTITUTE 1 Initial return E Telephone number Final Number and street (or P O box if mail is not delivered to street address) Room/suite 5711 S WOODLAWN AVENUE fl return/terminated (312) 450-8205 1 Amended return City or town, state or province, country, and ZIP or foreign postal code CHICAGO, IL 60637 G Gross receipts $ 12,872,426 1 Application pending F Name and address of principal officer H(a) Is this a group return for HENRY M PAULSON JR subordinates? (-Yes No 5711 S WOODLAWN AVENUE CHICAGO IL 60637 H(b) Are all subordinates 1Yes(-No included? I Tax-exempt status F 501(c)(3) 1 501(c) ( ) I (insert no ) (- 4947(a)(1) or F_ 527 If "No," attach a list (see instructions) J Website :1- WWWPAULSONINSTITUTE ORG H(c) Group exemption number- K Form of organization F Corporation 1 Trust F_ Association (- Other 0- L Year of formation 2011 M State of legal domicile IL Summary 1 Briefly describe the organization's mission or most significant activities TO ADVANCE GLOBAL ENVIRONMENTAL PROTECTION AND SUSTAINABLE ECONOMIC GROWTH IN THE UNITED STATES AND CHINA, WHILE FOSTERING BROADER UNDERSTANDING BETWEEN THE TWO COUNTRIES w 2 Check this box Of- if the organization discontinued its operations or disposed of more than 25% of its net assets 3 Number of voting members of the governing body (Part VI, line 1a) . 3 3 of :2 4 N umber of independent voting members of the governing body (Part V I, line 1b) . 4 2 5 Total number of individuals employed in calendar year 2014 (Part V, line 2a) . 5 13 6 Total number of volunteers (estimate if necessary) 6 3 7aTotal unrelated business revenue from Part VIII, column (C), line 12 . 7a 0 b Net unrelated business taxable income from Form 990-T, line 34 . 7b 0 Prior Year Current Year 8 Contributions and grants (Part VIII, line 1h) . 6,251,931 9,849,695 9 Program service revenue (Part VIII, line 2g) 0 0 N 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d . -22,771 -23 11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 0 22,702 12 Total revenue-add lines 8 through 11 (must equal Part VIII, column (A), line 12) . 6,229,160 9,872,374 13 Grants and similar amounts paid (Part IX, column (A ), lines 1-3) . 300,000 894,651 14 Benefits paid to or for members (Part IX, column (A), line 4) . 0 0 Salaries, other compensation, employee benefits (Part IX, column (A), lines 15 1,623,394 2,234,435 5-10) 16a Professional fundraising fees (Part IX, column (A), line 11e) 0 0 b Total fundraising expenses (Part IX, column (D), line 25) 0-0 LLJ 17 Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) . 2,887,140 3,538,254 18 Total expenses Add lines 13-17 (must equal Part IX, column (A), line 25) 4,810,534 6,667,340 19 Revenue less expenses Subtract line 18 from line 12 1,418,626 3,205,034 Beginning of Current End of Year Year 20 Total assets (Part X, line 16) 3,563,131 7,001,057 M %TS 21 Total liabilities (Part X, line 26) . 248,876 481,768 ZLL 22 Net assets or fund balances Subtract line 21 from line 20 3 314 255 6 519 289 lijaW Signature Block Under penalties of perjury, I declare that I have examined this return, includin my knowledge and belief, it is true, correct, and complete Declaration of preps preparer has any knowledge Signature of officer Sign Here HENRY M PAULSON JR CHAIRMAN Type or print name and title Print/Type preparer's name Preparers signature LINDA M STAWICKI LINDA M STAWICKI Paid Firm's name 1- ROBBINS & ASSOCIATES LLC Pre pare r Use Only Firm's address -333 WEST WACKER DRIVE SUITE 830 CHICAGO, IL 60606 May the IRS discuss this return with the preparer shown above? (see instructs For Paperwork Reduction Act Notice, see the separate instructions. Form 990 ( 2014) Page 2 Statement of Program Service Accomplishments Check if Schedule 0 contains a response or note to any line in this Part III .F 1 Briefly describe the organization 's mission WE WORK AT THE NEXUS OF ECONOMIC AND ENVIRONMENTAL ISSUES IN THE UNITED STATES AND CHINA OUR PROGRAMS IN CHINA FOCUS ON IMPROVING CLIMATE AND AIR QUALITY, ADVANCING NATURE CONSERVATION AND PROMOTING SUSTAINABLE CITIES IN THE UNITED STATES, WE PROMOTE BILATERAL CROSS-BORDER INVESTMENT THAT WILL IMPROVE US- CHINA RELATIONS AND HELP CREATE JOBS OUR THINK TANK PUBLISHES PAPERS ON THE MOST IMPORTANT MACROECONOMIC ISSUES FACING CHINA TODAY, ENERGY STRATEGIES, AND ISSUES IN US-CHINA ECONOMIC RELATIONS WE HAVE OFFICES IN CHICAGO (AT THE UNIVERSITY OF CHICAGO), WASHINGTON AND BEIJING 2 Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? . F Yes fl No If "Yes," describe these new services on Schedule 0 3 Did the organization cease conducting , or make significant changes in how it conducts, any program services? . F Yes F No If "Yes," describe these changes on Schedule 0 4 Describe the organization 's program service accomplishments for each of its three largest program services , as measured by expenses Section 501(c)(3) and 501( c)(4) organizations are required to report the amount of grants and allocations to others, the total expenses , and revenue , if any, for each program service reported 4a (Code ) ( Expenses $ 1,543,523 including grants of $ 15,000 ) ( Revenue $ SUSTAINABLE URBANIZATION MASS MIGRATION FROM RURAL AREAS TO URBAN CENTERS IN CHINA WILL HAVE PROFOUND ECONOMIC AND ENVIRONMENTAL IMPLICATIONS FOR ALL COUNTRIES THE PAULSON INSTITUTE IS WORKING WITH CHINESE AND INTERNATIONAL PARTNERS TO DEVELOP AND SUPPORT PRINCIPLES, POLICIES, AND PROGRAMS THAT ADVANCE WORLD-CLASS SUSTAINABLE URBANIZATION PRACTICES IN CHINA MAYORS PROGRAM IN 2014, THE INSTITUTE HOSTED MAYORS AND VICE MAYORS FROM GUANGDONG PROVINCE FOR A TWO-WEEK TRAINING PROGRAM THAT BEGAN AT THE UNIVERSITY OF CHICAGO AND CONTINUED IN MIAMI THE MAYORS STUDIED SUSTAINABILITY PRACTICES AND MET WITH FORMER MAYORS AND CITY OFFICIALS IN EACH LOCATION THE FOCUS OF THE PROGRAM WAS ON REGIONAL MECHANISMS FOR ENVIRONMENTAL COOPERATION, DISASTER RESPONSE AND FLOOD CONTROL MIAMI PROVIDED A STRONG MODEL FOR POTENTIAL PROGRAMS IN CHINA CEO COUNCIL THE INSTITUTE LAUNCHED A CEO COUNCIL COMPOSED OF 16 CEOS FROM LEADING GLOBAL CORPORATIONS - 8 FROM THE US AND 8 FROM CHINA THE MEMBERS WILL WORK TOGETHER IN THE FIRST YEAR TO EXPLORE PROMOTING EFFICIENCY IN BUILDINGS WHICH ACCOUNT FOR MORE THAN 40% OF THE WORLD'S GREENHOUSE GAS EMISSIONS THE COUNCIL APPROVED AN AGENDA OF POLICY ISSUES IN CHINA ON WHICH TO FOCUS FOR 2014 AND DISCUSSED THE NEED TO COOPERATE ON SPECIFIC PILOT PROJECTS AND RESEARCH INITIATIVES EXPERTS CONFERENCE THE INSTITUTE HELD THE FOURTH ANNUAL CITIES OF THE FUTURE CONFERENCE FOR EXPERTS IN THE FIELD OF SUSTAINABILITY IN 2014 IN BEIJING WITH OUR PARTNER, THE CHINA CENTER FOR INTERNATIONAL ECONOMIC EXCHANGES THE CONFERENCE THIS YEAR REINFORCED THE THEMES TAKEN UP IN THE CEO COUNCIL BUILDING EFFICIENCY THE INSTITUTE HELD A ONE DAY SEMINAR CONVENING CHINESE AND INTERNATIONAL EXPERTS TO EXPLORE BEST PRACTICES IN BUILDING TECHNOLOGIES, BUILDING CODES AND ENFORCEMENT AND ENERGY EFFICIENCY PAULSON PRIZE THE SECOND ANNUAL PAULSON PRIZE WAS HELD IN BERING IN NOVEMBER THE PRIZE WAS AWARDED TO THE SHENZHEN LOW CARBON CITY FOR ITS EXCELLENCE IN PROMOTING SUSTAINABILITY AND ITS ABILITY TO BE SCALED THROUGHOUT CHINA THE CITY SUBSEQUENTLY HAS RECEIVED ADDITIONAL SUPPORT FROM THE LOCAL GOVERNMENT AND GREATER RECOGNITION THROUGHOUT CHINA AS A POTENTIAL MODEL FOR LOW CARBON DEVELOPMENT IN OTHER CITIES 4b (Code ) ( Expenses $ 1,351,373 including grants of $ 579,651 ) ( Revenue $ CONSERVATIONTHE UNPARALLELED SCALE AND SPEED OF INDUSTRIALIZATION AND URBANIZATION IN CHINA OVER THE LAST 30 YEARS HAS LED TO UNPRECEDENTED ECONOMIC GROWTH THIS PROGRESS HAS TAKEN A TOLL ON THE NATION'S ENVIRONMENT AND BIODIVERSITY FORTUNATELY, CHINA'S LEADERS AND THE CHINESE PUBLIC INCREASINGLY RECOGNIZE THE NEED TO BALANCE ECONOMIC GROWTH AND CONSERVATION THE RECOGNITION THAT ECONOMIC GROWTH AND CONSERVATION ARE TWO SIDES OF THE SAME COIN PRESENTS AN OPPORTUNITY FOR THE PAULSON INSTITUTE TO SUPPORT CHINA IN MAKING MARKED PROGRESS IN THE AREA OF CONSERVATION WE BELIEVE THAT ECONOMIC GROWTH AND ECOLOGICAL CONSERVATION CAN AND MUST GO HAND-IN-HAND THE PAULSON INSTITUTE'S PROGRAM ON CONSERVATION FOCUSES ON WETLANDS IN CHINA AND FOREST OF GLOBAL SIGNIFICANCE COASTAL WETLAND CONSERVATION BLUEPRINT PROJECT PARTNERING WITH STATE FORESTRY ADMINISTRATION AND CHINESE ACADEMY OF SCIENCE, PI LAUNCHED THE PROJECT IN FEB 24, 2014 AND MORE THAN 50 CHINESE SCIENTISTS AND EXPERTS ARE WORKING ON THE PROJECT TO IDENTIFY CONSERVATION PRIORITIES, MAJOR THREATS AND EFFECTIVE STRATEGIES THE PROJECT WILL PRODUCE SETS OF TECHNICAL REPORTS AND POLICY RECOMMENDATIONS TO THE CHINESE GOVERNMENT AGENCIES AND KEY DECISION-MAKERS TO STRENGTHEN THE CONSERVATION OF THE BIODIVERSITY AND ECOSYSTEMS OF THE COASTAL REGIONS THE PROJECT WILL BE COMPLETED