Charles G. Koch Charitable Foundation 2003 form 990

Form C ~~~_~F Return of Private Foundation Department orcneTreasury or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation Internal Revenue Service Note : The organization ma be able to use a co of this return to sates state reporting requiremeni

For calendar ear 2003, or tax ear beginning , 2003, and ending

OMB No 1545-0052

X003 G Check ail that apply Initial return Final return g Amended return Address change I I Name chant

Name of organization A Employer identification number

Use the IRS label. CHARLES G. KOCH CHARITABLE FOUNDATION

Otherwise, Number and street (or P O box number if mad is not delivered to street address) print

or type . See Specific P.O . BOX 2256

Instructions . City or town, state, and ZIP code 316 828-5552

C If exemption application is , pending, check here

D 1 Foreign organizations, check here , 1

2 Foreign organizations meeting the 85% test check here and attach

YC_V710YV0

Room/suite B Telephone number (see page 10 of the instructions)

H Check type of organization I x J Section 501(c 3 exempt private foundation computation . . " 0 Section 4947 ( a )( 1 ) nonexempt charitable trust Other taxable private foundation " " " . " " .

E If private foundation status was terminated I Fair market value of all assets at end J Accounting method Lj Cash U Accrual under section 507(b)(1)(A), check here . III-. Ell

of year (ffOIrlPart ll,COI (C),Ifne E] Other (specify) ____-_--_-__-__-_-_ p Iftnefoundation Islnasamontntermination 16) " $ 35 , 159 , 50 4 . (Part l, column (d) must be on cash bass J under section 507(b)(1)(B), check here .

Analysis of Revenue and Expenses (d) Disbursements (The total of amounts In columns (b), (c), and (a) Revenue and I (b) Net investment I (c) Adjusted net ~ for charitable (d) may not necessarily equal the amounts in expenses per income income purposes column (a1 [~Pmqe 10 of the Instructions) ) books (cash basis only)

L 7 V . 5'1'M'1' ' 1 rifts, g , etc , receNed (attach schedule) . 11 10110 foundaUon is not required to

u stn B 2 Distnb~ut~i fir plit-interest trusts

~P (Dtjest6dA~~ing~ temporary cash investments . 212 637 . 212 , 637 . r

4 Dividends ~ st from securities , , , 35 , 615 . 35 , 615 .

1~.tent)'T.

, , , . , , , .

3

,

5

. .

69

, 243 . 243 .

me or (loss ) - , . u~ 9

6 a Net gain or (loss) from sale of assets not on line 10 d b Gross sales price for all y assets on line 6a

7 Capital gain net income (from Part IV, line 2) .

8 Net short-term capital gain . , . . . , . . .

~q 9 Income modifications " 10 a Gross sales less returns

and allowances b Less Cost of goods sold

c Gross profit or (loss) (attach schedule) . , , . )

11 Other income (attach schedule) , . .

3 , 579 . 3 , 579. lip 12 Total. Add fines 1 through 11 . . . . . . 11 , 271 , 324 . 252 074 .

13 Compensation of officers, directors, trustees, etc

14 Other employee salaries and wages , , , , , 41

15 Pension plans, employee benefits , , , , , ,

x 16a Legal fees (attach schedule) , . , . , . . , . 25 , 994 . 25 , 476 .

b Accounting fees (attach schedule) . . . . . 25 , 787 . 23 , 612 . N . c Other professional fees (attach schedule) . , , 411 , 190 . 6 , 044 . 379 , 613 .

1Q 17 Interest , . , , , , . , , . , . , , . , . , ,

H C 18 Taxes (attach schedule) (see page 13 of the instructions) 2 , 5 69 . 110 .

19 Deprecation (attach schedule) and depletion v 20 Occupancy . �� . �� ,

21 Travel, conferences, and meetings , , , , , , 41 , 543 . 35 , 108 .

tm 22 Printing and publications , , , , , , , , , , 1 , 767 . 1 , 665 . e

23 Other expenses (attach schedule) , . , . , , 16 , 316 . 15 , 8870

a 24 Total operating and administrative expenses .

O Add lines 13 through 23 , , , , , , , , , , 525 166 . 6 4 154 . 481 , 361 .

25 Contributions, gifts, grants paid . , . , . , , 1 , 044 , 528 . i 2 , 449 , 528 .

26 Total ex penses and disbursements Add lines 24 and 25 1 , 569 , 694 . 6 , 154 . 2 , 930 , 889 . 27 Subtract fine 26 from fine 12

8 Excess o! revenue over expenses and disbursements . . 9 , 701 , 630 . b Net investment income (if negative, enter -0-) 245 , 920 . 1 c Ad justed net income if negative, enter-0- . . ~ -0-

JSA For Paperwork Reduction Act Notice, see the instructions . Form 990-PF (2003 3E 1410 2 000 32547H K932 11/07/2005 13 :32 :29 V03-8 85646 4

48-0918408 linnmg of ear End Book Value (b Book Value

21 .301 .726 . 28 .768 .053 .

Form 990-PF(2003) r r i Attached schedules and amounts in the

Balance Sheets description column should be for a- -f . ., .,h, coo .-rr, Hr . .

1 Cash - non-interest-bearing , , , , , , , , , , , , , , , , , ,

2 Savings and temporary cash investments , , , , , , , , , , ,

3 Accounts receivable 1 29694_ Less allowance for doubtful accounts 01

4 Pledges receivable

Less allowance for doubtful accounts

5 Grants receivable

6 Recervables due from officers, directors, trustees, and other

disqualified persons (attach schedule) (see page 15 of the instructions)

7 Other notes and loans receivable (attach schedule) 1

Less allowance for doubtful accounts 1 ~, e Inventories for sale or use , , , , , , , , , , , , , , , , , , .. y 9 Prepaid expenses and deferred charges , , , , , , , , , , , ,

Q 10 a Investments - U S and state government obligations (attach schedule) ,

b Investments - corporate stock (attach schedule) , _ , , , , , ,

c Investments - corporate bonds (attach schedule) , , , , , , , 1 1 Investments - land, buildings,

and equipment basis 1110~ - _______ 3,377,694_ Less accumulated depreciation (attach schedule) -------------------

12 Investments - mortgage loans , , , , , , , , , , , , , , , ,

13 Investments - other (attach schedule) , , , , , , , , , , , , , 14 Land, buildings, and

equipment basis ___________________ Less accumulated depreciation 1 (attach schedule) ____________________

15 Other assets (describe 1 ___---___----___---_)

16 Total assets (to be completed by all filers - see page 16 of

the instructions Also, see page 1, item I) . 17 Accounts payable and accrued expenses , , , , , , , , , , , 18 Grants payable , , , , , , , , , , , , , , , , , , , , , , ,

X19 Deferred revenue �� 20 Loans from officers, directors, trustees, and other disqualified persons

21 Mortgages and other notes payable (attach schedule) , , , , ,

"~ 22 Other liabilities (describe " )

ca I viai nauiuues auU mica I i ti uu- i cc a

Organizations that follow SFAS 117, check here " I X J and complete lines 24 through 26 and lines 30 and 31 .

a X24 Unrestricted . . � , . . �� , . . . � . . ., ., ., 22 8 m 25 Temporarily restncted . . , . . . . . , , , , . . , , , . . , m 26 Permanently restricted " " " " " " " " "

Organizations that do not follow SFAS 117, check here and complete lines 27 through 31 . t

`0 27 Capital stock, trust principal, or current funds . . . . . . . . .

28 Paid-in or capital surplus, or land, bldg , and equipment fund

y 29 Retained earnings, accumulated income, endowment, or other funds ,

30 Total net assets or fund balances (see page 17 of the 0! z instructions) � � � � � � � � � � � � , 22 8

31 Total liabilities and net assets/fund balances (see page 17 of

469 . 9 .1 32

the instructions . . - - . . - - . . - - . 26 350 126 . 34 , 196 , 950

Analysis of Changes in Net Assets or Fund Balances

JSA

3E7420 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 5

1,838

58,336

0

29 .694

55 .877

60

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) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

2 Enter amount from Part 1, line 27a 3 Other increases not included in line 2 (itemize) t 4 Add lines 1, 2, and 3 5 Decreases not included in line 2 (itemize) jo -6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II, column (b), line 30 . .

(c) Fair Market Value

28,768,053 .

29,694 .

55,877 .

880,880 .

5,070,000 .

355 .000 .

22,878,839 . 9,701,630 .

32,580,469 .

32,580,469 .

Form 990-PF (zoo3)

(I) Gains (Col (h) gain minus col (k), but not less than -0-) or

Losses (from col (h))

b

Y Form 990-PF

Capital Gains and Losses for Tax on Investment Income (a) List and describe the kind(s) of property sold (e g ,real estate, 2-story back warehouse, or common stock, 200 shs MLC Co )

1a

b c d e

(e) Gross sales pace (Q Depreciation allowed (g) Cost or other basis (or allowable) plus expense of sale

a b

d e Complete only for assets showing gain in column (h and owned b the foundation on 12/31/69

(i) F M V as of 12/31169 (J) Adjusted basis (k) Excess of col (i) as of 12/31/69 over coV Q), if any

3

HOw ' 11, cUlred I acqDred I ~d) Date sold

P- Purchase ) n_(mo , day, Yr

~~T10 , day, yr )

(h) Gain or (loss) (e) plus (f) minus (g)

e 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 3 Net short-term capital gain or (loss) as defined m sections 1222(5) and (6)

If gain, also enter in Part I, line S, column (c) (see pages 13 and 17 of the Instructions) If (loss ) , enter -0- in Part I, line 8 ~ 3

qualification Under Section 4940 (e) for Reduced Tax on Net Investment Income (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 organization liable for the section 4942 tax on the distnbutable amount of any year in the base period? . . . . 1-1 Yes X No If "Yes," the organization does not qualify under section 4940(e) Do not complete this part

1 Enter the appropriate amount m each column for each year, see page 17 of the instructions before making any entries

Base period years Calendar year (b) (c) Distribution ratio or tax ear beginnin g in) Adjusted qualifying distributions Net value of noncharitable-use assets col b divided b col c

2002 3 , 313 , 808 . 28 571 232 . 0 .11600000000 2001 4 , 296 , 259 . 27 673 813 . 0 .15520000000 2000 5 , 028 , 478 . 33 847 015 . 0 .14860000000 1999 r 3,078,832 . 33 281 910 . 0 .09250000000 1998 3 .320 .358 . 32 .850 .792 . 0 .10110000000

2 Total of line 1, column (d) . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . 2 0 . 61340000000 3 Average distribution ratio for the 5-year base period - divide the total on line 2 by 5, or by

the number of years the foundation has been m existence if less than 5 years , , 3 0 .12270000000

4 Enter the net value of nonchantable-use assets for 2003 from Part X, line 5 , , , , , , , , , , 1 41 - - 25,930,498

5 Multiply line 4 by line 3 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1 5 1 3,181,672 .

6 Enter 1% of net investment income (1% of Part I, line 27b) . . . . . . . . . . . . . . . . . . . 1 8 I - 2,459

7 Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I 7 I 3 ,184 ,131 .

8 Enter qualifying distributions from Part XII, line 4 . . . . . . . - . . . . . . . - . . . . . . . . . 1 8 1 3,285,889 . If line B is equal to or greater than line 7, check the box in Part VI, line 1b, and complete that part using a 1 % tax rate See the Part VI instructions on page 17

'SA Form 990-PF (2003) 3 E 1430 1 000

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4 17 of the instructions' " Eiccise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948 - see pac

1 a Exerrfat operating foundations described in section 4940(d)(2), check here No- and enter "N/A" on line 1 Date of ruling letter _ _ _ (attach copy of ruling letter if necessary - see instructions) , , , ,

b Domestic or anizations that meet the section 4940(e) requirements in Part V, check

here " X and enter 1 % of Part I, line 27b , . , , , , , , . , , , , , , , , , , . , . , , , , , , , , , , , ,

c All other domestic organizations enter 2°~ of line 27b Exempt foreign organizations enter 4% of Part I, line 12, col (b)

2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxable foundations only Others enter -0-) , , , , , , ,

3 Addlines 1and2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only Others enter-0-), , , , , , ,

5 Tax based on investment income Subtract line 4 from line 3 If zero or less, enter -0- , , , , , , , , , , , , , , , ,

6 Credits/Payments

a 2003 estimated tax payments and 2002 overpayment credited to 2003 , , , , , , , 6a 17 , 505 .

b Exempt foreign organizations - tax withheld at source , , , , , , , , , , , , , , , , 6 b NONE

c Tax paid with application for extension of time to file (Form 8868) , , , , , , , , , , 6c NONE

d Backup withholding erroneously withheld , , , , , , , , , , , , , , , , , , , , , 6d

7 Total credits and payments Add lines 6a through 6d . . . . , . . . . . . . .C 1111.T~~ . . . . . e Enter any penalty for underpayment of estimated tax Check here a if Form 2220 is attached , , , , , , , , , ,

9 Tax due. Ii the total of lines 5 and 8 is more than line 7, enter amount owed , , , , , , , , , , , , , , , , , , , ,

10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid', , . , , , , . , , , . , ,

11 Enter the amount of line 10 to be Credited to 2004 estimated tax " 15 , 000 . Refunded

Statements Regarding Activities

2

3

4

2,459

046

1 a During the tax year, did the organization attempt to influence any national, state, or local legislation or did Yes No it participate or intervene in any political campaigns , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1 a X

b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 18 of the instructions for definition) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1 b X

If the answer is "Yes" to 7a or 1b, attach a detailed description of the activities and copies of any materials published or distributed by the organization in connection with the activities

c Did the organization file Form 1120-POL for this years , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 1 c X

d Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year

(1) On the organization 1 $ (2) On organization managers " $

e Enter the reimbursement (if any) paid by the organization during the year for political expenditure tax imposed on organization managers 1o. $

2 Has the organization engaged m any activities that have not previously been reported to the IRS , , , , , , , , , , . , , , , , , , , 2 X If "Yes," attach a detailed description of the activities

3 Has the organization 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 , , , , , , , , , , , , , , , 3 X

4 a Did the organization have unrelated business gross income of $1,000 or more during the years , , , , , , , , , , , , , , , , , , , , 4a X

b If "Yes," has it filed a tax return on Form 990-T for this year? , , , , , , , , , , , , , , , , , , , , , , , , , . , , , , , , , , , , 4b N A

5 Was there a liquidation, termination, dissolution, or substantial contraction during the year? , , , , , , , , , , , , , , , , , , , , , , 5 X

I( "Yes,' attach the statement required by General 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 m the governing instruments , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 6 X

7 Did the organization have at least $5,000 in assets at any time during the year? If "Yes," complete Part 11, co/ (c), and Part XV , , , , , 7 X e a Enter the states to which the foundation reports or with which it is registered (see page 19 0f the

instructions) 1 KANSAS- 6_ DISTRICT OF_ COLUMBIA

b If the answer is "Yes" to line 7, has the organization furnished a copy of Form 990-PF to the Attorney General (or designate) of each state as required by General Instruction G? If "No,"attach,explanation , , , , , , , , , , , , , , , , , Sb X

9 Is the organization claiming status as a private operating foundation within the meaning of section 49420(3) or 4942(j)(5) for calendar year 2003 or the taxable year beginning in 2003 (see instructions for Part XIV on page 25)? If "Yes," complete Part XIV , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 9 X

10 Did any persons become substantial contributors during the tax yeah 1/ "Yes," attach a schedule listing their names and addresses , , 10 X

11 Did the organization comply with the public inspection requirements for it annual returns and exemption applications . . . . . . . . . 11 X

Web site address " WWW. CGKFOLJNDATION . ORG

12 The books are in care of 1_VONDA_HOLLIMAN_______ Telephone no jo. (316828=5552_________ Located at 1 4111_ EAST 37TH STREET NORTH- WICHITA KS_-__--_-__ ZIP+4 jo. ____ 67220 _____

13 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1047 -Check here . , , . , and enter the amount of tax-exempt interest received or accrued during the year . . 1 I " 13

JSA Form 990-PF (2003)

3E1440 1 000 i

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 7

~ Form 990-PF (2003) 48-09184 Statements Regarding Activities for Which Form 4720 May Be Required

5

File Form 4720 if any item is checked in the "Yes" column, unless an exception applies.

1 a During the year did the organization (either directly or indirectly) (1) Engage in the sale or exchange, or leasing of property with a disqualified persons . . . . . . . . El Yes ~X No

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes X No

(3) Furnish goods, services, or facilities to (or accept them from) a disqualified persons . . . . . . . X Yes No

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified persons . . . . . . . . X Yes No

(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) . . . . . . . . . . . . . . . . . . . . . . . . , Yes aX No

(6) Agree to pay money or property to a government official? (Exception . Check "No" if the organization agreed to make a grant to or to employ the official for a period after termination of government service, if terminating within 90 days ) . . . . . . . . . . . . . Yes EZNo

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 page 19 of the instructions)? . . .

" Or( anizations relying on a current notice regarding disaster assistance check here . . . . . . . . . . . . . 1 L.J " . c Did the organization 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 m 2003 . . . . . . . . . . . . . . . . . . . . . . . . 2 Taxes on failure to distribute income (section 4942) (does not apply for years the organization was a private

operating foundation defined in section 4942Q)(3) or 4942Q)(5)) a At the end of tax year 2003, did the organization have any undistributed income (lines 6d

and 6e, Part XI 11) for tax year(s) beginning before 2003 . . . . . . . . . . . . . . . . . . . . . . Yes aX No If"Yes ;'list theyears po. --_-_--_-_ _ -_- . -_- .

b Are there any years listed in 2a for which the organization 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 page 19 of the 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

3 a Did the organization hold more than a 2% direct or indirect interest in any business enterprise at any time during the year's , , , , , , , , , , , , , , , , _ , , , , , , , , , , , , , , Yes a N o

b If "Yes," did it have excess business holdings in 2003 as a result of (1) any purchase by the organization 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 organization had excess business holdings in 2003 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 a Did the organization invest during the year any amount in a manner that would jeopardize its charitable purposes? . . . . . . .

b Did the organization make any investment in a prior year (but after December 31, 1969) that could jeopardize its charitable

purpose that had not been removed from jeopardy before the first day of the tax year beginning m 2003? . . . . . . . . . . . 5 a During the year did the organization pay or incur any amount to

(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? , , , , , , 1:1 Yes EZ No

(2) Influence the outcome of any specific public election (see section 4955), or to carry

on, directly or indirectly, any voter registration drive? Yes X No (3) Provide a grant to an individual for travel, study, or other similar purposes? " , , , , , , , , , , , e Yes eX 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)? , , , , , , , , , , , , , , , , , , , , , 1Z Yes 1:1 No (5) Provide for any purpose other than religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children or animals , , , , , , , , , , 1:1 Yes F X] b If any answer is "Yes" to 5a(1)-(5), did any of the transactions fad to qualify under the exceptions described in

Regulations section 53 4945 or in a current notice regarding disaster assistance (see page 20 of the instructions) "~

Organizations relying on a current notice regarding disaster assistance check here . . . . . . . . . . . . . . 1

c If the answer is "Yes" to question 5a(4), does the organization claim exemption from the tax because it maintained expenditure responsibility for the grants . . . . . . . . . . . . . . . . . aX Yes ~ No

If "Yes," attach the statement required by Regulations section 53 4945-5(d) 6 a Did the organization, during the year, receive any funds, directly or indirectly, to pay

premiums on a personal benefit contract? , , , , , , , , , . , . , . , . , . , . , , , , , , , , , Yes EZNo b Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contracts , , , , , , , , , , ,

I( you answered "Yes" to 66, also file Form 8870

X

JSA

3 E 14 50 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 8

Form 990-PF (2003)

Total number of others receiving over $50,000 for professional services . . 10. 1 NONE

Summary of Direct Charitable Activities

12,145 . 2

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3

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4

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JSA 3 E1460 2 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 9

4B-0918408 ~ Form 990-PF(2003) Page

Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors 1 List all officers, directors, trustees, foundation managers and their compensation see page 20 of the instructions) :

a Name and address (b) Title, and average (c) Compensation (d) Co ntribunons to (e) Expense account,

hours per week i(c)

not paid, enter employee 'en.,,

plans other allowances devoted to position _0l and deferred combensation

SEE-ATTACHED- STATEMENT 17

NONE

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

2 Compensation of five highest-paid employees (other than those included on line 1 - see page 20 of the instructions). If none, enter "NONE."

b Title and average (d) Contributions to

(a) Name and address of each employee paid more than $50,000 (hours per week (c) Compensation employee benefit (e) Expense account, P plans and deferred other allowances

devoted to position compensation

NONE

- - - - - -- - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - -

--------------------------------------

- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

-------------------------------------

Total number of other employees paid over $50,000 . 00- 1 NONE 3 Five highest-paid independent contractors for professional services - (see page 20 of the instructions) . If none, enter

"NONE." (a) Name and address of each person paid more than $50,000 (b) Type of service

TYLER COWEN

KOCH_ INDUSTRIESI_ INC . WICHITA, KANSAS - GRANT MANAGEMENT I 140 .289

----------------------------------------------------

----------------------------------------------------

List the foundation's four largest direct charitable activities during the tax year Include relevant statistical information such as the number of organizations and other beneficiaries served, conferences convened, research papers produced, etc

rises

1_DURING-20031_THE_FOUNDATION_CONDUCTED AN EDUCATIONAL ----------------------- CONFERENCE-FOCUSING- ON- PHILANTHROPIC GIVING .

Form 990-PF (2oos)

Form 990-PF (2003) 48-0918408 Page? Summary of Program-Related Investments see page 2 o the instructions

Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2 amount 1 SEE ATTACHED STATEMENT 16

- - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 355 000 .

2

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All other program-related investments See page 21 of the instructions

NONE

---------------------------------------------------------------------------

Total . Add lines 1 through 3 . 355 , 000 . JIM Minimum Investment Return (All domestic foundations must complete this part . Foreign foundations,

see page 21 of the instructions .) 1 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 1 a b Average of monthly cash balances . . . . . . . . . . . . . . . . . . . . . . , . . : . , , , . , . . , . , . 1 b c Fair market value of all other assets (see page 22 of the instructions) . . . . . . . . . . . . . . . . . . . 1 c d Total (add lines 1 a, b, and c) . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . , . . . . . . 1 d e Reduction claimed for blockage or other factors reported on lines 1a and

1c (attach detailed explanation) . . . , . . . . . . . . . . . . . 1e 2 Acquisition indebtedness applicable to line 1 assets 2 3 Subtract line 2 from line 1 d 3 4 Cash deemed held for charitable activities Enter 'l 1 /2 % of line 3 (for greater amount, see page 23

6 .325 .379

of the instructions) 4 5 Net value of noncharitable-use assets.Subtract line 4 from line 3 Enter here and on Part V, line 4 5 6 Minimum investment return . Enter s% of line 5 , , 6

IDistributable Amount (see page 23 of the instructions) (Section 4942(j)(3) and (j)(5) private operating foundations and certain foreign organizations check here 10. and do not complete this part )

1 Minimum investment return from Part X, line 6 . . . . , . . . . . . . . , . . . . , . . . . . . , . . . 1 2a Tax on investment income for 2003 from Part VI, line 5 . . . . . , . 2a 2 , 459 . b Income tax for 2003 (This does not include the tax from Part VI ) 2 b c Add lines 2a and 2b 2c

3 Distnbutable amount before adjustments Subtract line 2c from line 1 . . . . , . . . . . . . . , . . . 3 4a Recoveries of amounts treated as qualifying distributions . , , , , , , 4a NONE b Income distributions from section 4947(a)(2) trusts . . . . . . . . . . 4b c Add lines 4a and 4b 4c

5 Add lines 3 and 4c 5 6 Deduction from distnbutableamount (see page 23 of the instructions) . . . . . . . . . 6 7 Dlstributable amount as adjusted Subtract line 6 from line 5 Enter here and on Part All, line 1 . . . . 7

394 .88

94,066 .

94 .066 .

Qualifying Distributions (see page 23 of the instructions)

Amounts paid (including administrative expenses) to accomplish charitable, etc, purposes Expenses, contributions, gifts, etc - total from Part I, column (d), line 26 l a Program-related investments - Total from Part IX-B 1 b Amounts paid to acquire assets used (or held for use) directly-in` carrying out charitable, etc , purposes 2 Amounts set aside for specific charitable projects that satisfy the Suitability test (prior IRS approval required) . . . . . . . . . . . . . . . , . . . . . _ . . . . . . . . . 3a Cash distribution test (attach the required schedule) , . . . . . . . . . . . . . . . . . . . . . . . . . . 3 b Qualifying distributions . Add lines 1a through 3b Enter here and on Part V, line 8, and Part XIII, line 4 . . . . . . 4 Organizations that qualify under section 4940(e) for the reduced rate of tax on net investment income Enter 1 % of Part I, line 27b (see page 24 of the instructions) . , . . . . . . . . . , . . . . . . 5 Adjusted qualifying distributions . Subtract line 5 from line 4 6 Note : The amount on line 6 will be used in Part V, column (b), m subsequent years when calculating whether the foundation

qualifies for the section 4940(e) reduction of tax m those years

1 a b

2

3 a b

4 5

6

2,930, 89 . 355,000 .

NONE

NONE

NONE

3,285,889 .

2,459 .

10 85646

772 .913 .

Form 990-PF (2003) JSA 3E1470 1 000

32597H K932 11/07/2005 13 :32 :29 V03-8

0 Form 9907PF (2003) 48-0918408 Page

11111 :1177;11M, 11 Undistributed Income (see page 24 of the instructions)

(b) I Cc) ~ (d) Years pri or to 2002 L 2002 ~ 2003

(a)

1 Distnbutable amount for 2003 from Part XI, Corpus

line r

2 Undistributed income, if any, as of the end of 2002

a Enter amount for 2002 only , , , , , , , , , ,

b Total for prior years

3 Excess distributions carryover, if any, to 2003

a From 1998 , , , , , , 1 , 784 , 123 .

b From 1999 , , , , , , 1 506 398 .

c From 2000 3 , 380 , 679 .

d From 2001 � � � 2 , 919 , 590 .

e From 2002 , , , , , , 1 , 893 , 383 .

f Total of lines 3a through e , , , , , , , , , , , 11 , 48 4

4 Qualifying distributions for 2003 from Part

XII,line 4~" $ 3,285,889 . a Applied to 2002, but not more than line 2a , , ,

b Applied to undistributed income of prior years (Election required - see page 24 of the instructions) , ,

c Treated as distributions out of corpus (Election required - see page 24 of the instructions) , , ,

d Applied to 2003 distributable amount, , , , , , 1 e Remaining amount distributed out of corpus , , 1 , 99

5 Excess distributions carryover applied to 2003 (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 :

5 a Corpus Add lines 3f, 4c, and 4e Subtract line 5 13 , 47

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 page 24 of the instructions , , , ,

e Undistributed income for 2002 Subtract line 4a from line 2a Taxable amount - see page 24 of the instructions

94 .066 .

I

r

23 .

f Undistributed income for 2003 Subtract lines 4d and 5 from line 1 This amount must be distributed in 2004

7 Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1)(E) or 4942(8)(3) (see page 25 of the instructions) . , , , ,

8 Excess distributions carryover from 1998 not applied on line 5 or line 7 (see page 25 o f the instructions) . . . . . . . . . . . . . . .

9 Excess distributions carryover to 2004. Subtract lines 7 and 8 from line 6a . . . . . . .

10 Analysis of line 9

a Excess from 1999 . . . 1 , 506 , 398

b Excess from 2000 . . . 3 , 380 , 679

c Excess from 2001 . . . 2 , 919 , 590

d Excess from 2002 . . . 1 , 893 , 383 e Excess from 2003 . . . 1 .991 .823

11 .691 .873

f

JSA 3E1480 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 11 85646

1,294,066 .

NONE

NONE

I

I

Form 990-PF (zoo3)

d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors SEE ATTACHED STATEMENT 18

JSA 3E 1490 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 Form 990-PF (2003)

12

Form 990-PP (2003) 48-0918408 Page V

'Private Operating Foundations (see page ZS of the instructions and Part VII-A, question 9) NOT APPLICABLE

1 a IFihe foundation has received a ruling or determination letter that it is a private operating foundation, and the ruling is effective for 2003, enter the date of the ruling . . .

b Check box to indicate whether the organization is a private operating foundation described in section 49420(3) or 4942(j)(5)

2 a Enter the lesser of the Tax year Prior 3 years

adjusted net income from (a) 2003 (b) 2002 (cj 2001 (d) 2000 (e) Total Part I or the minimum investment return from Part X for each year listed ,

b 85% of line 2a . , . .

C Qualifying distributions from Part

XII, line 4 for each year listed

d Amounts included in line 2c not used directly far active conduct of exempt activities , , , , ,

i e Qualifying distributions made

directly for active conduct of exempt activities Subtract line 2d from line 2c .

3 Complete 3a, b, or c for the alternative test relied upon

a 'Assets' alternative test - enter

1 ) value of all assets (2) Value of assets qualifying

under section 4942U)(3)(B)(Q .

b 'Endowment alternative test- Enter 2/3 of minimum investment return shown in Part X, line 6 for each year listed

C 'SuppoR alternative test- enter

(1) Total support other than gross investment income (interest, dNidends, rents, payments on securities loans (section 512(a)(5)), or royalties),

(2) Support loom general public and 5 or more exempt organizations as provided in section 4942U)(3)(B)(u)

(3) Largest amount of support i from an exempt organization

4 Gross investment income .

Camw Supplementary Information (Complete this part only if the organization had $5,000 or more in assets at any time during the year - see page 25 of the instructions .)

1 Information Regarding Foundation Managers : a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation

before the close of any tax year (but only if they have contributed more than $5,000) (See section 507(d)(2) )

CHARLES G . KOCH

b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the

ownership of a partnership or other entity) of which the foundation has a 10% or greater interest

NONE

2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc ., Programs :

Check here 1 F1 if the organization only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds

If t he organization makes gifts, grants etc (see page 25 of the instructions) to individuals or organizations under other conditions complete items 2a, b, c, and d

d The name, address, and telephone number of the person to whom applications should be addressed

SEE STATEMENT 2 b The form in which applications should be submitted and information and materials they should include

LETTER EXPLAINING PROJECT AND AMOUNT REQUESTED, PLUS A COPY OE IRS DETERMINATION LETTER SHOWING EXEMPTION .

c Any submission deadlines NONE I

48-0918408 Form 990=pF (2003) Page 10

Supplementary Information (continued)

Form 990-PF (2003) JSA 3E1491 2 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 13

JSA 3E1492 1 000

14 32547H K932 11/07/2005 13 :32 :29 V03-8 85646

Form 990-PF (2003) 48-0918408 Page 11

Analysis of Income-Producin Activities Enter gross amounts unless otherwise indicated Unrelated business income Excluded by section 512, 513, or 514 Related or exempt

Business (b) Exclusion

(d) function 26 of

1 Program service revenue code Amount code Amount the instructions

a PROGRAM INTEREST 14 3 , 579 .

b

c

d

e

f

g Fees and contracts from government agencies

2 Membership dues and assessments

3 Interest on savings and temporary cash investments 14 212 , 637 .

4 Dividends and interest from securities 14 35 , 615 .

5 Net rental income or (loss) from real estate

a Debt-financed property , , , , , , , , , b Not debt-financed property , , , , , , , 16 243 .

6 Net rental income or (loss) from personal property

7 Other investment income 8 Gain or (loss) from sales of assets other than inventory

9 Net income or (loss) from special events , , ,

10 Gross profit or (loss) from sales of inventory . . 11 Other revenue a

b I

c

d

e

12 Subtotal Add columns (b), (d), and (e) , , , , 252 , 074 . 1

13 Total, Add line 12, columns (b), (d), and (e) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 13 252, 074 .

Relationship of Activities to the Accomplishment of Exempt Purposes Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to

Line No . the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes) (See page 26 of the instructions )

NOT

Form 990-PF (2003)

Form 990-PF 2003 48-0918408 Page 1 2

~' Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations

Did the organization directly or indirectly engage in any of the following with any other organization described in section

501(c) of the Code (other than section 501(c)(3) organizations) or m section 527, relating to political organizations

a Transfers from the reporting organization to a nonchantable exempt organization of (1)Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b Other transactions

(1) Sales of assets to a nonchantable exempt organization , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

(2) Purchases of assets from a nonchantable exempt organization , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

(3) Rental of facilities, equipment, or other assets , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

(4) Reimbursement arrangements , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

(5) Loans or loan guarantees , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

(6) Performance of services or membership or fundraising solicitations , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

c Sharing of facilities, equipment, marling lists, other assets, or paid employees , , , , , , , , , , , , , , , , , , , , , , , , , d If the answer to any of the above is "Yes," complete the following schedule Column (b) should always show the fair market

value of the goods, other assets, or services given by the reporting organization If the organization received less than fair market value in any transaction or sharing arrangement, show m column (d) the value of the goods, other assets, or services

received

X

2 a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527 , , , , , , , , , , , , , , , , , , a Yes a No

b IF "Yes," complete the follownq schedule (b) Type of organization (c) Description of relationship (a) Name of organization

Under penalties of penury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correqt, and complete Declaration of preparer (other than taxpayer or fiduciary) is based on all information of which preparer has any knowledge

~/ 6f_~

Signature of officer or trustee d Z C

'^ Preparer's ' signature

a v °H' Firm's name (or yours if jL =) self-employed), address,

and ZIP code

' BIUh , LLP 125 N . MARKET, STE .

JSA 3E1493 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8

X

OMB No 1545-0047

2003 Employer identification number

An-noiaana

Schedule B (Form 990, 990-EZ, or 990-PF) Department of the Treasury Internal Revenue Service Name of organization

Supplementary Information for line 1 of Form 990, 990-EZ, and 990-PF (see instructions)

CHARLES G. KOCH CHARITABLE FOUNDATION

Form 990-PF

501(c)(3) taxable private foundation

Caution: Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule 8 (Form 990, 990-EZ, or 990-PF), but they must check the box m the heading of their Form 990, Form 990-EZ, or on line 1 of their Form 990-PF, to certify that they do not meet the filing requirements of Schedule 8 (Form 990, 990-EZ, or 990-PF)

16

Schedule of Contributors

Organization type (check one)

Filers of:

Form 990 or 990-EZ

Section :

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

D 527 political organization

0 501(c)(3) exempt private foundation

0 4947(a)(1) nonexempt charitable trust treated as a private foundation

Check if your organization is covered by the General Rule or a Special Rule. (Note: Only a section 501(c)(7), (8), or (10) organization can check boxes) for both the General Rule and a Special Rule - see Instructions )

General Rule -

51 For organizations filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or property) from any one contributor (Complete Parts I and II )

Special Rules -

CJ For a section 501(c)(3) organization filing Form 990, or Form 990-EZ, that met the 33 1/3% support test of the regulations under sections 509(a)(1)/170(b)(1)(A)(vi) and received from any one contributor, during the year, a contribution of the greater of $5,000 or 2% of the amount on line 1 of these forms (Complete Parts I and II )

CJ For a section 501(c)(7), (8), or (10) organization filing Form 990, or Form 990-EZ, that received from any one contributor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals (Complete Parts I, il, and III )

LJ For a section 501(c)(7), (8), or (10) organization fling Form 990, or Form 990-EZ, that received from any one contributor, during the year, some contributions for use exclusively for religious, charitable, etc , purposes, but these contributions did not aggregate to more than $1,000 (If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc , purpose Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc , contributions of $5,000 or more during the year ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " $

For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ

JSA 3E1251 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646

Schedule B (Form 990, 990-EZ, or 990.PF) (2003)

JSA 3 E 7 252 1 000

Schedule B (Form 990 or 990-EZ) (2003)

Schedule 1B (Form 990 or 990-EZ)(2003)

If a section 501(c)(7), (8), or (10) organization received contributions or bequests for use exclusively far religious, charitable, etc , purposes (sections 170(c)(4), 2055(a)(3), or 2522(a)(3)) -

List in Part I each contributor whose contributions total more than $1,000 during the year that were for a religious, charitable, etc , purpose To determine the $1,000, aggregate all of a contributor's gifts for the year (regardless of amount) For a noncash contribution, complete Part II

All section 501(c)(7), (8), or (10) organizations that received any charitable contributions and listed any charitable contributors on Part I must also complete Part III

If a section 501(c)(7), (8), or (10) organization received charitable gifts, but is not required to list any charitable contributors on Part I, check the box on line A at the top of Schedule B (Form 990 or 990-EZ) and enter the amount of charitable contributions received in the space provided The organization need not complete and attach Part III

Specific Instructions Note : You may duplicate Parts l, 11, and 111 If more copies are needed Number each page of each Part Part I . In column (a), identify the first contributor listed as no 1 and the second contributor as no 2, etc Number consecutively Show the contributor's name, address, aggregate contributions for the year, and the type of contribution (e g , whether an individual, payroll, or noncash contribution) Report payroll contributions by listing the employer's name, address, and total amount given (unless an employee gave enough to be listed individually)

Page 2

Part II . In column (a), show the number that corresponds to the contributor's number in Part I Describe the noncash contribution fully Report on property with readily determinable market value (i e , market quotations for securities) by listing its fair market value (FMV) For marketable securities registered and listed on a recognized securities exchange, measure market value by the average of the highest and lowest quoted selling prices (or the average between the bona fide bid and asked prices) on the contribution date See Regulations section 20 2031-2 to determine the value of contributed stocks and bonds When market value cannot be readily determined, use an appraised or estimated value To determine the amount of a noncash contribution that is subject to an outstanding debt, subtract the debt from the property's fair market value

Part III. Section 501(c)(7), (8), or (10) organizations that received contributions or bequests for use exclusively for religious, charitable, etc , purposes must complete Parts I through III for those persons whose gifts totaled mare than $1,000 during the year Show also, in the heading of Part III, total gifts that were $1,000 or less and were for a religious, charitable, etc , purpose Complete this information only on the first Part 111 page

If an amount is set aside for a religious, charitable, etc , purpose, show in column (d) how the amount is held (e g , whether it is mingled with amounts held for other purposes) . If the organization transferred the gift to another organization, show the name and address of the transferee organization m column (e) and explain the relationship between the two organizations.

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 17

Schedule B (Form 990 990.EZ, or 990.PF) (2003) Page to of Part 1

Name 9f organization CHARLES G . KOCH CHARITABLE FOUNDATION Employer identification number

48-0918408

Contributors (See Specific Instructions .)

(a) (b) (c) (d) No. Name, address, and ZIP + 4 Aggregate contributions Type of contribution

1 CHARLES G . KOCH Person Payroll

4111 E . 37TH STREET NORTH 11,019,250 . Noncash (Complete Part 11 if there is

WICHITA, KS 67220 a noncash contribution )

(a) (b) (c) (d) No. Name, address, and ZIP + 4 Aggregate contributions Type of contribution

Person Payroll Noncash (Complete Part II if there is a noncash contribution )

(c) (d) ,ggregate contributions Type of contribution


M (d) ,ggregate contributions Type of contribution

Person Payroll Noncash (Complete Pan II if there is a noncash contribution )

(c) (d) ,ggregate contributions Type of contribution No. Name, address . and ZIP + 4


(c) (d) Aggregate contributions Type of contribution

' Person Payroll Noncash (Complete Part II if there is a noncash contribution )

Schedule B (Form 890, 990-EZ or 990-PF) (2003)

18

(a) No.

(b) Name, address, and ZIP + 4

JSA

3E1253 1 000

32547H K932 11/07/2005 13 :32 :29 V03-8 85646,

No. Name, address, and ZIP + 4

(a) I (b) No. Name, address, and ZIP + 4

PART I, LINE 23 - OTHER EXPENSES STATEMENT 8

11,223 0 11,223 223 0 162 792 0 893

2,593 0 2,593 1,485 0 1,016

16,316 0 15,887

CHARLES G. KOCH CHARITABLE FOUNDATION EIN 48-0918408

SCHEDULE OF INFORMATION FOR 2003 FORM 990-PF

PART I, LINE 11 -OTHER INCOME STATEMENT 5 (a) (b) (c)

Interest income from program-related investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,579 3,579 0

PART I, LINE 16 A, B, C - PROFESSIONAL FEES STATEMENT 6

Part 1, Line 16a - Legal Fees

Legal services for general matters during the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,994 0 25,476

Part 1, Line 16b - Accounting Fees

General accounting, preparation of financial statements, and preparation of Form 990-PF . . . . . . 25,787 0 23,612

Part 1, Line 16c - Other Professional Fees '

Land Maintenance fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,703 3,703 0 Bank and investment management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,559 2,341 218 Website Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . 1,430 0 7 .330 Administrative management fees for managing grants and general matters . . . . . . . . . . . . . . . 403,498 0 378,065

Total Other Professional Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411,190 6,044 379,613

PART I, LINE 18 -TAXES STATEMENT 7

Excise Tax on Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,459 0 0 Real Estate Tax on real estate held for investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110 110 0

Total Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 . . . . . . . . . 2,569 110 0

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Postage 8 Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Telephone Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Membership & Dues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Other Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART II, Line 10b - Investments - Corporate Stock STATEMENT 9

Cost Market Value

880,880 Common Stock - Bristol Myers Squibb Co . 1,610,532

ET II, Line 11 - Investments - Land, Buildings, & Equipment: STATEMENT 10

Basis I Book Value Market Value

3,377,694 5,070,000 Unimproved Land

PART II, Line 15 - Other Assets STATEMENT 11

Program-Related Investment Notes Receivable 355,000


SCHEDULE OF INFORMATION FOR 2003 Form 990-PF

16

2003 estimated tax payments and 2002 overpayment credited to 2003' 58,336 Less . amount refunded with original return (40,831)

17,505


SCHEDULE OF INFORMATION FOR 2003 Form 990-PF

PART Vi, Line 7 - Total Credits and Payments STATEMENT 12


ATTACHMENT TO FORM 990-PF TO REPORT EXPENDITURE RESPONSIBILITY GRANT

For the Year Ended 12131103

PART VII-B, Question on Line 5c : STATEMENT 13

Expenditure Responsibility Statement .for the Year 2003

Pursuant to IRC Regulation section 53 4945-5(d)(2), the CHARLES G. KOCH CHARITABLE FOUNDATION provides the following information .

(i) Name & Address Kansas Cultural Trust of Grantee : 255 N Roosevelt

Wichita, KS 67208

(u) Date and Amount April 7, 2003 $112,955 of Grant

(ill) Purpose of Grant : General operating support for the Kansas Cultural Trust, an educational foundation which provides grants to young visual and performing artists to allow them to take advantage of key opportunities arising early in their careers

(iv) Amounts expended Report received from the Kansas Cultural Trust shows the following expenditures $112,955 of the April 2003 grant was spent for providing enabling grants to artists and for professional fees

(v) Diversions' To the knowledge of this grantor foundation, no funds have been diverted to any activity other than the activity for which the grant was originally made.

(vi) Date of Reports: On May 4, 2004, the Kansas Cultural Trust submitted a full and complete report of its expenditures of the April 2003 operating support grant

(vi) Verification : The grantor has no reason to doubt the accuracy or reliability of the report from the grantee ; therefore, no independent verification of the reports were made

e




PART VII-B, Question on Line 5c : STATEMENT 14

(vi) Verification : The grantor has no reason to doubt the accuracy or reliability of the report from the grantee ; therefore, no independent verification of the reports were made

Expenditure Responsibility Statement for the Year 2003

Pursuant to IRC Regulation section 53 4945-5(d)(2), the CHARLES G KOCH CHARITABLE FOUNDATION provides the following information :

(i) Name & Address Fred C & Mary R . Koch Foundation, Inc of Grantee' PO Box 2256

Wichita, KS 67201-2256

(u) Date and Amount April 7, 2003 $300,000 of Grant . December 17, 2003 $160,000

(iii) Purpose of Grant Grant program support for the Fred C & Mary R Koch Foundation, an educational foundation which provides grants to tax-exempt public charities in the state of Kansas, in the areas of human service, higher education, and the cultural arts

(iv) Amounts expended . Report received from the Fred C & Mary R' Koch Foundation shows the following expenditures $300,000 of the April 2003 grant was spent directly for providing grants $160,000 of the December 2003 grant was spent directly for providing grants

(v) Diversions' To the knowledge of this grantor foundation, no funds have been diverted to any activity other than the activity for which the grant was originally made.

(vi) Date of Reports : On May 12, 2004, the Fred C & Mary R . Koch Foundation submitted a full and complete report of its expenditures of the April 2003 grant and the December 2003 grant .

'ART VII-B, Question on Line 5c: STATEMENT 75

(vi) Verification : The grantor has no reason to doubt the accuracy or reliability of the report from the grantee ; therefore, no independent verification of the reports were made.





Pursuant to IRC Regulation section 53 .4945-5(d)(2), the CHARLES G KOCH CHARITABLE FOUNDATION provides the following information

(r) Name & Address The Phillips Foundation , of Grantee . 7811 Montrose Road, Suite 100

Potomac, MD 20854

(u) Date and Amount May 8, 2003 $25,000 of Grant

(iii) Purpose of Grant Support for the Journalism Fellowship Program run by the Phillips Foundation

(iv) Amounts expended . Report received from The Phillips Foundation shows the following expenditures $25,000 of the May 2003 grant was spent directly for providing grants through their Journalism Fellowship Program .

(v) Diversions . To the knowledge of this grantor foundation, no funds have been diverted to any activity other than the activity for which the grant was originally made.

(vi) Date of Reports On June 7, 2004, The Phillips Foundation submitted a full and complete report of its expenditures of the May 2003 grant .




PART IX-B - Program-Related Investment STATEMENT 16

The CHARLES G . KOCH CHARITABLE FOUNDATION provides the following information regarding the payment of a program-related investment .

(ii) Date and Amount of Loan:

July 10, 2003 $355,000

(vi) Verification . The foundation has no reason to doubt the accuracy or reliability of the report from the borrower; therefore, no independent verification of the reports were made.


(i) Name & Address of Borrower :

Inland Sea Productions 1600 Genessee, Suite 328 Kansas City, MO 64102

(iii) Purpose of Loan: To fund expenses to produce an educational IMAX film titled "We The People, By The People", to be used solely by and under a contract with Bill of Rights Institute, an organization exempt under Section 501(c)(3), and a public charity within the meaning of section 509(a)(1) .

(iv) Amounts expended : Report received from Inland Sea Productions shows the following expenditures . $355,000 of the July 2003 loan was spent directly for production of the IMAX film .

(v) Diversions : To the knowledge of this foundation, no funds have been diverted to any activity other than the activity for which the loan was originally made .

(vi) Date of Reports . On November 5, 2004, Inland Sea Productions submitted a full and complete report of its expenditures of the July 2003 loan .

PART VIII, Line 1 - Officers, Directors,Trustees, Managers, Etc . STATEMENT 17

(b) Title, and average (d) Contributions (e) Expense hours per week to employee account, other

(a) Name and Address devoted to position ( c1 Compensation benefit plans allowances

Richard Fink President / Director 0 ~ 0 0 655 15th Street, NW, Suite 445 1 hour per week average Washington, DC 20005

Kelly Young Vice President 0 0 0 655 15th Street, NW, Suite 445 18 hours per week average Washington, DC 20005

Alex A Beehler Vice President 0 0 0 655 15th Street, NW, Suite 445 10/8/03 to 12/31/03 Washington, DC 20005 10 hours per week average

Kevin L Gentry Vice President 0 ' 0 0 655 15th Street, NW, Suite 445 1018/03 to 12/31103 Washington, DC 20005 17 hours per week average

Anthony Woodlief Vice President 0 0 0 655 15th Street, NW, Suite 445 10/8/03 to 12/31/03 Washington, DC 20005 10 hours per week average

Mark Humphrey Secretary 0 ' 0 0 P 0 Box 2256 10/8/03 to 12/31103 Wichita, KS 67201 Less than 1 hour per week

Vonda Holliman Treasurer 0 0 0 P O Box 2256 7 hours per week average Wichita, KS 67201

Charles G Koch Director 0 0 0 P O Box 2256 Less than 1 hour per week Wichita, KS 67201

Elizabeth B . Koch Director 0 0 0 P O Box 2256 Less than 1 hour per week Wichita, KS 67201 i

Elizabeth Robinson Koch Director 0 0 0 P O Box 2256 Less than 1 hour per week Wichita, KS 67201

Charles Chase Koch Director 0 0 0 P O Box 2256 Less than 1 hour per week Wichita, KS 67201

Koch Industries, Inc Not Applicable 119,570 0 0 P O Box 2256 (Payment for management Wichita, KS 67201 services of officers above)

TOTAL 119,570 0 0


SCHEDULE OF INFORMATION FOR 2003 FORM 990 PF



PART XV, LINE 2D, INFORMATION REGARDING GRANTS - LIMITATIONS ON AWARDS STATEMENT 18

The foundation primarily supports research and education into free societies, in particular how they advance the well-being of mankind . Building on this knowledge, the Charles Koch Foundation fosters the partnership of scientists and practitioners in order to integrate theory and practice By doing so, the Foundation staves to develop marked-based tools that enable individuals, institutions and societies to survive and prosper .

Grants from the Foundation are restricted to charitable organizations as defined in section 501(c)(3) of the Internal Revenue Code The Charles G Koch Charitable Foundation does not make grants to individuals

For grant guidelines, please contact the Foundation via street address, emad, telephone, or fax below Interested grantees should carefully review the guidelines before submitting proposals or otherwise request support

Charles G . Koch Charitable Foundation 655 15th Street NW, Suite 445

Washington, DC 20005 Phone: 202-393-2354 Fax' 202-393-2355

emad @ cgkfoundation.org



Part XV, Line 3a - Grants and Contributions Paid During the Year STATEMENT 19

If recipient is an individual, Foundation Recipient show any relationship to status of Purpose of grant

any foundation manager recipient or contribution Amount Name and address (home or business) or substantial contributor

a Paid during the year

The Acton Institute Public General Operating Support 25,000 Grand Rapids, MI

Center for Excellence in Education Public General Operating Support 5,000 Vienna, VA

Environmental Literacy Council Public General Operating Support 57,516 Washington, DC

The Federalist Society Public General Operating Support 71,200 Washington, DC

Fred C and Mary R Koch Foundation, Inc Private General Operating Support 460,000 Wichita, KS

George Mason University Foundation Public Educational and Research 1,943,400 Fairfax, VA Programs

Institute for Humane Studies Public General Operating Support 15,000 Washington, DC Educational Programs 7,457

Institute for Responsible Citizenship Public General Operating Support 10,000 Washington, DC

Institute of Spontaneous Order Economics Public General Operating Support 7,500 Santa Clara, CA

Intercollegiate Studies Institute Public General Operating Support 1,250 Wilmington, DE

Kansas Cultural Trust Private General Operating Support 112,955 Wichita, KS

Mercatus Center Public General Operating Support 27,000 Arlington, VA

Pacific Research Institute Public General Operating Support 90,000 San Francisco, CA

The Phillips Foundation Private General Operating Support 25,000 Potomac, MD

Political Economy Research Foundation Public General Operating Support 14,500 Bozeman, MT

Sand County Foundation Public General Operating Support 46,750 Madison, WI

Wildlife Habitat Council Public General Operating Support 15,000 Silver Spring, MD

(TOTAL GRANTS PAID TO ORGANIZATIONS ~ ~ ~ ~ $ 2,934,52

CHARLES G . KOCH CHARITABLE FOUNDATION 48-0918408

FORM 990PF, PART I - CONTRIBUTIONS, GIFTS AND GRANTS RECEIVED

i

DIRECT PUBLIC

DATE SUPPORT

11,019,250 .

NAME AND ADDRESS ----------------

CHARLES G . KOCH 4111 E . 37TH STREET NORTH WICHITA, KS 67220

32547H K932 11/07/2005 13 :32 :29 V03-8 85646

TOTAL CONTRIBUTION AMOUNTS ------------11,019,250 .

19 STATEMENT 1

48-0918408

32547H K932 11/07/2005 13 :32 :29 V03-8 85646 20

CHARL~S G. KOCH CHARITABLE FOUNDATION

FORM 990PF, PART XV - NAME, ADDRESS AND PHONE FOR APPLICATIONS

GRANT ADMINISTRATOR, 655 15TH STREET NW, SUITE 445 WASHINGTON, D .C . 20005 (202)393-2354

STATEMENT 2

------------

TOTAL CONTRIBUTIONS PAID 2,934,528 .

Z Z STATEMENT 3 32547H K932 11/07/2005 13 :32 :29 V03-9 85646

CHARLES G . KOCH CHARITABLE FOUNDATION

FORM 990PF, PART XV - GRANTS AND CONTRIBUTIONS PAID DURING THE YEAR

RELATIONSHIP TO SUBSTANTIAL CONTRIBUTOR

AND

RECIPIENT NAME AND ADDRESS FOUNDATION STATUS OF RECIPIENT -------------------------- ------------------------------

SEE ATTACHED STATEMENT 19

ae-osieaoe

PURPOSE OF GRANT OR CONTRIBUTION AMOUNT -------------------------------- ------

2,934,528

wtatu.ES G. KOCH CHARITABLE FOUNDATION

FORM 990PF, PART XV - CONTRIBUTIONS APPROVED FOR FUTURE PAYMENT

RELATIONSHIP TO SUBSTANTIAL CONTRIBUTOR

AND

RECIPIENT NAME AND ADDRESS FOUNDATION STATUS OF RECIPIENT -------------------------- ------------------------------

s r

GEORGE MASON UNIVERSITY FOUNDATION FATRFAX, VA PUBLIC

------------

TOTAL CONTRIBUTIONS APPROVED 1,560,000 .

22 STATEMENT 4 32597H K932 11/07/2005 13 :32 :29 V03-8 85646

48-Q91B409

PURPOSE OF GRANT OR CONTRIBUTION AMOUNT -------------------------------- ------

EDUCATIONAL ANA RESEARCH PROGRAMS 1,Sfi0,000 .

Documents

Charles G. Koch Charitable Foundation 2003 form 990