Return of Private Foundation OMB No 1545-0052 Form 990-PF or Section 4947(a)(1) Nonexempt Charitable Trust 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 ri 2011 r year 2011 or tax year beginning and ending Name of foundation A Employer identification number Gaylord and Dorothy Donnelley Foundation 36-6108460 Number and street (« P 0 box number if mail is not delivered to street address ) R n/suite B Telephone number 35 East Wacker Drive 600 (312) 977-2700 City or town, state, and ZIP C If is code exemption appl ication pending , check here ► Chicago, IL 60601 G Check all that apply. Initial return Initial return of a former public charity D 1. Foreign organizations, check here Q Final return Amended return 8 5% test. Q Address change Q Name change 2. check here computation H Check type of organization: Section 501(c)(3) exempt private foundation E If private foundation status was terminated 0 Section 4947(a)(1) nonexempt charitable trust = 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: L_J Cash LXJ Accrual F 11 the foundation is in a 60-month termination (from Part 1l, col (c), line 16) = Other (specify) under section 507(b)(1)(B), check here ► $ 15 7 , 7 3 8 , 9 3 5 . (Part 1, column (d) must be on cash basis.) Analysis of Revenue and Expenses Part 1 (a) Revenue and (b ) Net investment (c) Adjusted net ( d ) Disbursements (The total of amounts in columns (b). (c), and (d) may not for charitableip necessarily equal the amounts in column (a)) expenses per books income income only) 1 Contributions, gifts, grants, etc., received N/A 2 Check if the foundation is not required to attach Sch 8 - - - - ' ' 3 Interest on savings and temp orary 488 cash investments 4 Dividends and interest from securities 3,72 6 ,752. 3,490, 059. S tatement 1 5a Gross rents 5,460. 5,460. S t atement b Netrentalmcomeer(loss) -2,211. S tatement 3 6a Net gain or (loss ) from sale of assets not on line 10 4,584,151. - - - - CD b Gross sales price for all assets on line 6a 351261,683. 7 Capital gain net income (from Part N, line 2) d 5, 4 67,571. or 8 Net short-term capital gain 9 Income modifications - - - Gross sales less returns 10a and allowances - b Less Cost of goods sold c Gross profit or (loss) 30. 28,348. S tatement 4 t al. sfgn11 316 ,881. 8,991,438 - 10 Con ensabon of office's, dv stees, eta 3 4 8, 0 0 0. 2 5, 2 0 0. 3 2 2, 8 0 0. N 14 Other sr^pee^ aflesa es 486 , 532. 20, 550. 465, 982. 15 W% nJp^ S,re i foyee 7, 766. , 910. 2 57, 8 5 6 . 16a Legal fees Stmt 5 2 99 , 376-7 2 80 , 5-6--8 . 18 , 8 2 8 . Stmt 6 39,75 5, 3, 8 5. CL u I U^ 1 - 900. 0 X I S tmt 7 867, . 362,5 505, 0 30. 17 Interest 18 Taxes Stmt 8 1,024. 0. 0. 19 Depreciation and depletion 52 , 11 8 0 . 20 Occupancy 173,649. 9,933. 163,716. a 21 Travel, conferences, and meetings 132 , 467 . 0 . 132 , 467 . 22 Printing and publications 8 , 322 . 0. 8 322. S2 01 23 Other expenses Stmt 9 240, 138. 48,354. o 9 191,784. 24 Total operating and administrative a expenses . Add lines 13 through 23 2, 923, 732 . 779,955. 2, 090,635. :14 0 25 Contributions, gifts, grants paid 4, 818 , 247 . 5, 749,078. > 26 Total expenses and disbursements. Add lines 24 and 25 7,741,979. 779,955. 7,839,713. 27 Subtract line 26 from line 12: W 8 Excess of revenue over expenses and disbursements 574,902 . z b Net investment income (d negative, enter -0-) 8, 211,483. Z c Adjusted net income (e negative , enter -o-) N / A 2-02-11 LHA For Paperwork Reduction Act Notice, see instructions. Form 990-PF (2011) Z a) F 3 Form 990-PF (20111 Gaylord and Dorothy Donnellev Foundation 36-6108460 Pane9 schedules and amounts in the description Beginning of year End of year Part'ii Balance Sheets All"" "' column should be forendof-year amounts only (a ) Book Value (b) Book Value (c) Fair Market Value 1 Cash - non-interest-bearing 207. 200. 200. 2 Savings and temporary cash investments 442,502. 3,104,959. 3 ,10 4, 959. 3 Accounts receivable ► 6,374. Less: allowance for doubtful accounts ► 3, 295. 6, 374. 6, 374. 4 Pledges receivable ► Less: allowance for doubtful accounts ► 5 Grants receivable 6 Receivables due from officers, directors, trustees, and other disqualified persons 7 other notes and loans receivable stmt 1.0 ► 23,941, 312. Less: allowance for doubtful accounts ► 13,092, 3 2. 10,985,000. 10,849,000. 10,849,000. 8 Inventories for sale or use _ 9 Prepaid expenses and deferred charges a 10a Investments - U.S. and state government obligations Stmt 11 6 , 6 9 7 , 7 3 9 . 6,943,138. 6,943,138. b Investments - corporate stock Stmt 12 80,053,245. 64,281,069. 6 4,281,069. c Investments - corporate bonds Stmt 13 19,874,950. 21,052,686. 21,052,686. 11 Investments land, buildings, and equipment basis ► - Less accumulated depreciation ► 12 Investments - mortgage loans - 13 Investments - other Stmt 14 50, 275, 839. 50,808,792. 50 , 808 , 792. 14 Land, buildings, and equipment basis ► 488, 590. - Less accumulated depreciation Stmt 150- 359, 311. 162,801. 129,279. 12 9,279. 15 Other assets (describe ► Accrued Interest ) 32 6 ,745. 563,438. 563 , 438 . 16 Total assets to be completed by all filers 168, 822,323. 157, 738,935 . 157, 738,935. 17 Accounts payable and accrued expenses 6 4 , 8 6 7 . 18 Grants payable 5,055,603. 4,127,752. in 19 Deferred revenue 20 Loans from officers, directors . trustees , and other disquahried persons 21 Mortgages and other notes payable -' 22 Other liabilities (describe ► 23 Total liabilities add lines 17 through 22 ) 5,055,603. 4,192,619. Foundations that follow SFAS 117, check here ► and complete lines 24 through 26 and lines 30 and 31. 24 Unrestricted 163,766,720. 153,546,316. 25 Temporarily restricted co 26 Permanently restricted Foundations that do not follow SFAS 117, check here 0 r_ ► 'L and complete lines 27 through 31. y 27 Capital stock, trust principal, or current funds N 28 Paid-in or capital surp lus, or land, bldg., and eq uip ment fund a 29 Retained earnings, accumulated income, endowment, or other funds Z 30 Total net assets or fund balances 163 , 766, 720. 153,546,316. 31 Total liabilities and net assets/fund balances 168,822,323. 157,738,935. 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) 163,766,720. 2 Enter amount from Part I, line 27a 574,902. 3 Other increases not included in line 2 (itemize) ► 0. 4 Add lines 1, 2, and 3 - 164,341, 22. 5 Decreases not included in line 2(Itemize) ► Net Unrealized Loss on Investments 10,795,306. 6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column (b), line 30 153,54 ,316. Form 990-PF (2011) 123511 12-02-11 Form 990-PF (201 ) Gaylord and Dorothy Donnelley Foundation 36-6108460 Page3 Part IV Capita1 l Gains an Losses for Tax on Investment Income How acquire (a) List and describe the kind(s) of property sold (e.g., real estate, Purchase (c) Date acquired (d) Date sold 2-story brick warehouse; or common stock, 200 shs. MLC Co.) D - Donation (mo., day, yr.) (mo., day, yr.) la b See Attached Statement 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 35,261,683. 30,677,532. 5,467,57 1 . 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. (I), if any ( a b c d e 5,467,571. If gain, also enter in Part I, line 7 2 Capital gain net income or ( net capital loss) If (loss), enter -0- in Part I, line 7 2 5,467,571. 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). It ( loss), enter -0- in Part I, line 8 3 N/A Part Qua l ification U nder Section 4940(e) for Reduce d Tax on N et 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.