Return of Private Foundation
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I ^ I FILED PURSUANT TO NOTICE 2004-05 Return of Private Foundation OMB No 1545-0052 Form 990-PF or Section 4947(a)(1) Nonexempt Charitable Trust ^O Department of the Treasury Treated as a Private Foundation Internal Revenue Service Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements. For calendar year-2012 or tax year beginning , and ending Name of foundation A Employer identification number THE SEARLE FREEDOM TRUST C/O KINSHIP TRUST COMPANY 36-7244615 Number and street (or P 0 box number if mail is not delivered to street address ) Room1sulte B Telephone number 303 W MADISON 800 312-803-6700 City or town, state, and ZIP code C if exemption application Is pending, check he ► CHICAGO, IL 60606 G Check all that apply, L_J Initial return initial return of a former public charity D 1. Foreign organizations, check here EJ Final return Amended return 85% test, 0 Address change Name change 2 chec here and attach computation H Check type of organization: LXJ Section 501(c)(3) exempt private foundation E If private foundation status was terminated = Section 4947(a)(1) nonexempt charitable trust 0 Other taxable private foundation under section 507(b)(1)(A), check here I Fair market value of all assets at end of year J Accounting method: Cash L_J Accrual F If the foundation is in a 60-month termination (from Part ll, col. (c), line 16) = Other (specify) under section 507(b)(1)(B), check here ► $ 111, 5 7 8 , 6 41 . (Part 1, column (d) must be on cash basis.) Part I Analysis of Revenue and Expenses (a) Revenue and (b) Net investment (c) Adjusted net (d) Disbursements (The total of amounts In columns (b) , (C) , and (d) may not for charitable purposes necessar i ly equal the amounts in column (a)) expenseseve per books income income (cash basis only) 1 Contributions, gifts, grants, etc., received 13 , 817. N/A 2 Check if the foundation is not required to attach Sch B caInterest and temporary 3 nestmentss 1,189 ,445. 1,163,253. S TATEMENT 2 4 Dividends and interest from securities 1,611,423. 1,611,423. STATEMENT 3 5a Gross rents -63,292. -63,292. STATEMENT b Net rental income or (loss) -63,292. 6a Net gain or (loss) from sale of assets not on line 10 5,002,476. S TATEMENT 1 Gross sales price for all b assets on line 6a 9 , 085,713. 7 Capital gain net income (from Part N, line 2) 3,111,849. 8 Net short-term capital gain Li 9 Income modifications Gross sales less returns 1 (la and allowances b Less Cost of goods sold c Gross profit or (loss) 11 Other Income 2,061,977. 2,023,870. S TATEMENT 5 12 Total. Add lines 1 through 11 9 , 815 , 846. 7,847,103 . 13 Compensation of officers , directors, trustees, etc 583 , 250 . 234,225 . 349,025. 14 Other employee salaries and wages. 212, 942 . 0. 212,942. 15 Pension plans, employee benefitsr 116 , 670 . 0 . 116, 670. 16a Legal fees ` ' '' " ' STMT 6 3,100. 1,350. 1,750. Accounting STMT 7' CL b fee's 12, 300. 12,300. - 0. W c Other professional fees > 17 Interest 1,637,547. 1,637,300. 247, b 18 Taxes STMT 8 105,990. 51,215. 0. 19 Depreciation and depletion 26, 385. 4,270 . E 20 Occupancy 71,009. 0. 71,009. a 21 Travel, conferences, and meetings 42, 219. 0 . 42, 2197 r- 22 Printing and publications _ 248 . 0 . 248. 0 23 Other expenses STMT 9 1,934,731. 2,281,413. 117,3037 W 24 Total operating and administrative a expenses . Add lines 13 through 23 4,746, 391. 4,222,073. 911, 413. 0 25 Contributions, gifts, grants paid 14,001, 422 . 14, 001, 422. 26 Total expenses and disbursements. Add lines 24 and 25 18, 747, 813. 4, 222, 073. 14, 912 , 835. 27 Subtract line 26 from line 12: a Excess of revenue over expenses and disbursements -8 ,931,967. b Net Investment income (d negative, enter -o-) 3,625,030. c Adjusted net Income (4 negative , enter -0-) N/A 12-05.12 LIlA rur raperworx neoucoon Act notice, see instructions. Form 990-PF (20 1 11281113 796085 367244615 2012.03050 THE SEARLE FREEDOM TRUST C / 36724461 THE SEARLE FREEDOM TRUST Form990-PF 2012 C/O KINSHIP TRUST COMPANY 36-7244615 Paget Attached schedule$and amounts in the description Beginning of year End of year Part II Balance -Sheets column should be for end-of-year amounts only ( a) Book Value ( b) Book Value (c) Fair Market Value 1 Cash - non-interest -bearing 2 Savings and temporary cash investments 3,142 , 538. 7 , 764,195. 7 , 764,195. 3 Accounts receivable ► 560. _J _J1 Less : allowance for doubtful accounts ► 560. 560. 4 Pledges receivable ► Less : allowance for doubtful accounts ► 5 Grants receivable 6 Receivables due from officers, directors, trustees, and other disqualified persons 7 OVrer notes and loans receivable ► _ ^_ _,^ Less: allowance for doubtful accounts ► 8 Inventories for sale or use 9 Prepaid expenses and deferred charges 19,724. 19,724. a 10a Investments - U.S. and state government obligations b Investments - corporate stock c Investments - corporate bonds 11 Investments - land, buildings, and equipment basis 1111'. Less accumulated depreciabon ► 12 Investments - mortgage loans 13 Investments - other STMT 12 125, 403 ,182. 111, 870 , 566. 103 , 558 ,174. 14 Land , buildings , and equipment: basis ► 159,726. Less accumulated depreciation STMT 110- 100,014. 44 , 269. 59,712. 59,712. 15 Other assets (describe ► STATEMENT 13 ) 273,147. 176,276. 176,276. 16 Total assets to be com p leted b all filers 128, 863 , 136. 119, 891,033. 111,578, 641. 17 Accounts payable and accrued expenses 141. 141. 18 Grants payable u) 19 Deferred revenue 20 Loans from officers, directors, trustees, and other disqualified persons 20 21 Mortgages and other notes payable j 22 Other liabilities ( describe ► STATEMENT 14 ) 40 , 000. 0. 23 Total liabilities (add lines 17 through 22 ) 40,141. 141. Foundations that follow SFAS 117, check here ► and complete lines 24 through 26 and lines 30 and 31. 24 Unrestricted j 25 Temporarily restricted m 26 Permanently restricted Foundations that do not follow SFAS 117, check here ► EXI LL and complete lines 27 through 31. ° 27 Capital stock, trust principal , or current funds 0. 0. 28 Paid-in or capital surplus, or land, bldg., and equipment fund 0. 0. 29 Retained earnings, accumulated income , endowment, or other funds 128 , 822 , 995 . 119 , 890 , 892 . Z 30 Total net assets or fund balances 128,822 , 995. 119 , 890,892. 31 Total liabilities and net assets/fund balances 128,863 , 136. 119 , 891,033. 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) 1 128,822,995. 2 Enter amount from Part I, line 27a 2 -8,931,967. 3 Other increases not included in line 2 (itemize) ► 4 Add lines 1, 2, and 3 4 119, 891,028. 5 Decreases not included in line 2 (itemize) ► SEE STATEMENT 10 5 136. 6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column line 30 -- i J, V/ V, V J 4 Form 990-PF (2012) 223511 12-05-12 2 10521113 796085 367244615 2012.03050 THE SEARLE FREEDOM TRUST C/ 36724461 r THE SEARLE FREEDOM TRUST Form 990-PF (2012) C/O KINSHIP TRUST COMPANY 36-7244615 Page3 Part IV Capital Gains and Losses for Tax on Investment Income How acquire (a) List and describe the kind(s) of property sold (e.g., real estate, (C) Date acquired (d) Date sold - ( mo., yr.) (mo., 2-stQry brick warehouse; or common stock, 200 shs. MLC Co. D - Donationonation day, day, yr.) la b SEE ATTACHED STATEMENTS C d e (e) Gross sales price (f) Depreciation allowed (g) Cost or other basis (h) Gain or (loss) (or allowable ) plus expense of sale (e) plus (f) minus (g) a b c d e 9,085 ,713. 14,825. 5 ,988,689. 3 ,111,849. 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 Losses (from col. (h)) (i) F.M.V. as of 12/31/69 as of 12/31/69 over col. (j), if any a b c d e 3,111,849. r It gain, also enter in Part I, line 7 1 2 Capital gain net income or ( net capital loss) It (loss ), enter -0- in Part 1, line 7 ) 2 3,111,849. 3 Net short-term capital gain or ( loss) as defined in sections 1222(5 ) and (6): If gain, also enter in Part I, line 8, column (c). If (loss), enter -0- in Part I line 8 3 N/A Part Qua l ification u nder Section 4940(e) for Rea-u-c-euTax on Net I nvestment I ncome (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? Yes ® No If "Yes,'the foundation does not quality under section 4940(e).