Return of Private Foundation

Transcription

1 Form 99Q-PF Department of the Treasury - ~rna! Revenue Service Return of Private Foundation OMB No or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation Note. The foundation may be able to use a copy of this return to satisfy state reporting requirements. ~@11 Jr calendar year 2011 or tax year beginning Name of foundation, and ending A Employer identification number VEAIZON FOUNDATION Number and street (or P.O. box number if mail is not delivered to street address) I Room/suite 8 Telephone number (see instructions) ONE VERIZON WAY (908) City or town, state, and ZIP code C If exemption application is pending, check here BASKING RIDGE NJ G Check all that apply: 0 Initial return 0 Initial return of a former public charity D 1. Foreign organizations, check here 0 Final return 0 Amended return 2. Foreign organizations meeting the 85% test, 0 Address change 0 Name change check here and attach computation. H Check type of organization: [XJ Section 501 (c)(3) exempt private foundation E If private foundation status was terminated Other taxable private foundation under section 507(b)(1)(A), check here. D Section 4947(a)(1) nonexempt charitable trust D I Fair market value of all assets at end J Accounting method: D Cash [XJ Accrual F If the foundation is in a 60-month termination of year (from Part II, col. (c), D Other (specify} under section 507(b)(1 )(B), check here line 16) $ 144, (Part I, column (d) must be on cash basis.) Analysis of Revenue and Expenses (The total of (d) Disbu rsements (a) Revenue and amounts in columns (b), (c), and (d) may not necessarily equal (b) Net investment (c) Adjusted net for charitable expenses per income income purposes the amounts in column (a) (see instructions).) books (cash basis only) limlll 1 Contributions, gifts, grants, etc., received (attach schedule) 853,566 2 Check D if the foundation is not required to attach Sch. B 3 Interest on savings and temporary cash investments ,465 4 Dividends and interest from securities a Gross rents 0 f1) b Net rental income or (loss) 0 ~ 6 a Net gain or (loss) from sale of assets not on line ,467 b Gross sales price for all assets on line 6a ' f1) a: 7 Capital gain net income (from Part IV, line 2) 15, Net short-term capital gain 0 9 Income modifications 10 a Gross sales less returns and allowances ( 0 b Less: Cost of goods sold. 0 c Gross profit or (loss) (attach schedule} 0 11 Other income (attach schedule) Total. Add lines 1 through II) 13 Compensation of officers, directors, trustees, etc. 0 5: 14 Other employee salaries and wages r::: 15 Pension plans, employee benefits >< ~ 16 a Legal fees (attach schedule) w b Accounting fees (attach schedule} f1) > c Other professional fees (attach schedule) '.;: ca 17 Interest !!! 18 Taxes (attach schedule} (see instructions) Depreciation (attach schedule) and depletion E "C 20 Occupancy < 21 Travel, conferences, and meetings "C r::: 22 Printing and publications ca 23 Other expenses (attach schedule) ~ 24 Total operating and administrative expenses. -ca... Add lines 13 through ~ 25 Contributions, gifts, grants paid , Total expenses and disbursements. Add lines 24 and Subtract line 26 from line 12: a Excess of revenue over expenses and disbursements b Net investment income (if negative, enter -0-) c Adjusted net income (if negative, enter -0-). 0 D D D D D

2 Form 990-PF (2011) VERIZON FOUNDATION lit ill Balance Sheets Attached schedules and amounts in the description column should be for end-of-year amounts only. (See instructions.) 1 Cash-non-interest-bearing Savings and temporary cash investments Accounts receivable Less: allowance for doubtful accounts... 4 Pledges receivable... _ Q Less: allowance for doubtful accounts 5 Grants receivable Receivables due from officers, directors, trustees, and other disqualified persons (attach schedule) (see instructions) QI "' "' ,--.=. Less: allowance for doubtful accounts... Qf- : _::::+---,.---''----=t =,!!j 8 Inventories for sale or use l 9 Prepaid expenses and deferred charges Ill <( 1 0 a Investments-U.S. and state government obligations (anach schedule). Ill Cl) :2 Jl ca ;;J Ill Cl) u 1: ca iii ID "tj 1: ::I u Ill -Cl) en Ill <( z -Cl) b Investments-corporate stock (attach schedule) c Investments-corporate bonds (attach schedule) Investments-land, buildings, and equipment: basis... Q I "" :..-...,; Less: accumulated depreciation (anach schedule)... Q "' "'t =. Investments-mortgage loans.... Investments-other (attach schedule).. Land, buildings, and equipment: basis... ~-~~._?_f!~...,_ '.--~ _...,._., 1 Less: accumulated depreciation (anach schedule)... _;3-~~.~_'!~f-----'-'-=:.J.::.:::...: '-..:...:.L:...=t--'-:.;..:...:'---'-..:...:.1.!...:::.. Other assets (describe..._ ~~~- ~.!t_~~~~9 _ $!~t_~'!l-~~t _) "'..:...=:.'-'-='-'+----::...;...:..c.::;...:...:..+---'----"-...:...:..<..::...:'-'- Total assets (to be completed by all filers-see the instructions. Also, see 1, item Accounts payable and accrued expenses Grants payable Deferred revenue Loans from ohicers, directors, trustees, and other disqualified persons Mortgages and other notes payable (attach schedule).. Otller liabilities (describe... _"I~~~-~?Y_C!_~ I ~- }, _::::...:..:...z..::::..:: 4 ~.:.J.:::~ Total liabilities (add lines 17 through 22) Foundations that follow SFAS 117, check here and complete lines 24 through 26 and lines 30 and 31. Unrestricted.... Temporarily restricted Permanently restricted Foundations that do not follow SFAS 117, check here..... D and complete lines 27 through 31. Capital stock, trust principal, or current funds Paid-in or capital surplus, or land, bldg., and equipment fund Retained earnings, accumulated income, endowment, or other funds. Total net assets or fund balances (see instructions) Total liabilities and net assets/fund balances (see instructions) 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 retum). 2 Enter amount from Part I, line 27a Other increases not included in line 2 (itemize)... 1-" ~ 4 Add lines 1, 2, and Decreases not included in line 2 (itemize)... t--" '=..::...:...:.z..:::;~ 6 Total net assets or fund balances at end of (line 4 minus line 5)-Part II, column (b), line Form 990-PF (2011 )

3 . Capital Gains and Losses for Tax on Investment Income Form 990 PF (2011) VERIZON FOUNDATION Page 3 (a) List and describe the kind(s) of property sold (e.g., real estate, 2-story brick warehouse; or common stock, 200 shs. MLC Co.) (b) How acquired P- Purchase D- Donation (c) Date acquired (mo., day, yr.) (d) Date sold (mo., day, yr.) 1a MULTIPLE SECURITIES p VARIOUS VARIOUS b " 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 ,230,467 b c '. "' : ~. L d e Complete only for assets showing gain in column (h) and owned by the foundation on 12/31 /69 (I) Gains (Col. (h) gain minus (i) F.M.V. as of 12/31/69 (j) Adjusted basis (k) Excess of col. (i) col. {k), but not less than -0-) or as of 12/31/69 over col. OJ, if any Losses (from col. (h)) a b ' ~ c ~-: 0. 0 ~ t >';. d ~ - i~"\ 0 e ' 0 { 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 } 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) (see instructions). If (loss), enter -0- } in Part I, line ::F.Ti ' Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income.,. (For opttonal use by domestic pnvate foundattons subject to the sectton 4940(a) tax on net mvestment mcome.) 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? DYes [X] No If ''Yes," tha foundation does not qualify under section 4940(e). Do not complete this part. 1 Enter the appropriate amount in each column for each year; see the instructions before makinq any entnes. (a) (d) {b) (c) Base period years Calendar year (or tax year beginning in) 2 3 Adjusted qualifying distributions Net value of noncharitable-use <,!.SSets Distribution ratio (col. (bl divided bv col. (c)) Total of line 1, column (d) 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 in existence if less than 5 years Enter the net value of noncharitable-use assets for 2011 from Part X, line , Multiply line 4 by line , Enter 1% of net investment income (1% of Part I, line 27b) Add lines 5 and ,366 8 Enter qualifying distributions from Part XII, line If line 8 is equal to or greater than line 7, check the box in Part VI, line 1 b, and complete that part using a 1% tax rate. See the Part VI instructions. Form 990-PF (2011 )

4 1 a Exempt operating foundations described in section 4940(d)(2), check here..,.. Date of ruling or determination letter:.(attach copy of letter if necessary-see instructions) b Domestic foundations 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 foundations 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 Add lines 1 and Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-) Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -a 5 6 Credits/Payments: a 2011 estimated tax payments and 2010 overpayment credited to b Exempt foreign organizations-tax withheld at source..... c Tax paid with application for extension of time to file (Form 8868)... d Backup withholding erroneously withheld Total credits and payments. Add lines 6a through 6d Enter any penalty for underpayment of estimated tax. Check here 0 if Form 2220 is attached 9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid 11 Enter the amount of line 1 0 to be: Credited to 2012 estimated tax..,.. 1 a During the tax year, did the foundation attempt to influence any national, state, or local legislation or did it participate or intervene in any political campaign? b Did it spend more than $100 during the year (either directly or indirectly) for political purposes (see page 19 of the instructions for definition)? If the answer is "Yes' to 1a or 1b, attach a detailed description of the activities and copies of any materials published or distributed by the foundation in connection with the activities. c Did the foundation file Form 1120-POL for this year? d Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year: (1) On the foundation.... $ 0 (2) On foundation managers.... $ =e Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed on foundation managers.... $ Has the foundation engaged in any activities that have not previously been reported to the IRS?..... If "Yes, attach a detailed description of the activities. 3 Has the foundation 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.. 4 a Did the foundation have unrelated business gross income of $1,000 or more during the year?. b If 'Yes,' has it filed a tax return on Form 990-T for this year? Was there a liquidation, termination, dissolution, or substantial contraction during the year?.. If ' Yes, attach the statement required by Genera/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 in the governing instrument? Did the foundation have at least $5,000 in assets at any time during the year? If ' Yes, complete Part II, col. (c), and Part XV. 8 a Enter the states to which the foundation reports or with which it is registered (see instructions)..,.. -g~ - t:j~j _t:ffj -~ t\_ b If the answer is ' Yes' to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General (or designate) of each state as required by Genera/Instruction G? If 'No, attach explanation Is the foundation claiming status as a private operating foundation within the meaning of section 49420)(3) or 49420)(5) for calendar year 2011 or the taxable year beginning in 2011 (see instructions for Part XIV)? If ' Yes, complete Part XIV Did any persons become substantial contributors during the tax year? If ' Yes, attach a schedule listing their names and addresses X Form 990-PF (2011)

5 Page 5 At any time during the year, did the foundation, directly or indirectly, own a controlled entity within the meaning of section 512(b)(13)? If ' Yes,' attach schedule (see instructions) , 2 Did the foundation make a distribution to a donor advised fund over which the foundation or a disqualified person had advisory privileges? If ' Yes,' attach statement (see instructions) Did the foundation comply with the public inspection requirements for its annual returns and exemption application? X Website address... Y'!Y'!Y'!~Y-~13J?Q~f..Q!-!~P..~TJ9.1':! :Qf!<? The books are in care of.... IY!I~IjA_~~-~ _IY!Qf!f3~~~ Telephone no.... _(9_Q~)_?_?_9_-_1_~QQ. Located at..,. _1_y_~f3J?Q~.W~X._I?N?t<Jt-l.G_13!Q.m: 1 _f':!l ZIP+4..,. _Q?~?9. 15 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041-Check here D and enter the amount of tax-exempt interest received or accrued during the year ,. 16 At any time during calendar year 2011, did the foundation have an interest in or a signature or other authority 1a b c over a bank, securities, or other financial account in a foreign country? See the instructions for exceptions and filing requirements for Form TO F If 'Yes, enter the name of the... Statements Regarding Activities for Which Form 4720 May Be Required File Form 4720 if any item is checked in the "Yes" column, unless an exception applies. During the year did the foundation (either directly or indirectly): (1) Engage in the sale or exchange, or leasing of property with a disqualified person?. (2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) a disqualified person? (3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? (4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person?.. (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)? (6) Agree to pay money or property to a government official? (Exception. Check 'No' DYes ~No DYes ~No ~Yes 0No... ~Yes 0No DYes ~No if the foundation agreed to make a grant to or to employ the official for a period after termination of government service, if terminating within 90 days.) D Yes ~ No If any answer is 'Yes' to 1a(1)-(6), did any of the acts fail to qualify under the exceptions described in Regulations section (d)-3 or in a current notice regarding disaster assistance (see instructions)? Organizations relying on a current notice regarding disaster assistance check here Did the foundation engage in a prior year in any of the acts described in 1 a, other than excepted acts, that were not corrected before the first day of the tax year beginning in 2011? Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private operating foundation defined in section 49420)(3) or 49420)(5)): a b c 3a b At the end of tax year 2011, did the foundation have any undistributed income (lines 6d and 6e, Part XIII) for tax year(s) beginning before 2011? Yes ~ No If 'Yes,' list the years... 20, 20, 20, 20 Are there any years listed in 2a for which the foundation 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 instructions.) If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here ' ' Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at any time during the year? D Yes ~ No If ' Yes,' did it have excess business holdings in 2011 as a result of (1) any purchase by the foundation 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 foundation had excess business holdings in ) a Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?.... b Did the foundation make any investment in a prior year (but after December 31, 1969) that could jeopardize its charitable that had not been removed from before the first of the tax in 2011? X X Form990-PF (2011 )

6 Page 6 5a During the year did the foundation pay or incur any amount to: (1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? (2) Influence the outcome of any specific public election (see section 4955); or to carry on, directly or indirectly, any voter registration drive? (3) Provide a grant to an individual for travel, study, or other similar purposes?.... (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)? (see instructions).. DYes ~No DYes ~No DYes ~No ~Yes 0No (5) Provide for any purpose other than religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals? D Yes ~ No b If any answer is ' Yes' to 5a(1 )-(5), did any of the transactions fail to qualify under the exceptions described in Regulations section or in a current notice regarding disaster assistance (see instructions)?. Organizations relying on a current notice regarding disaster assistance check here.. c If the answer is ' Yes" to question 5a(4), does the foundation claim exemption from the Ga tax because it maintained expenditure responsibility for the grant? If "Yes, attach the statement required by Regulations section S(d). Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? b Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? If "Yes ' to 6b, file Form ~Yes 0No DYes ~No 7a At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction?... D Yes ~ No b If 'Yes,' did the foundation receive any proceeds or have any net income attributable to the transaction? Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors 1 List all officers, directors, trustees, foundation managers and their compensation (see instructions). (b) Title, and average (c) Compensation (d) Contributions to (a) Name and address hours per week (If not paid, enter employee benefit plans devoted to position -0-) and deferred compensation ~~~ ATI~_Gtt~9- ~I~T~~_E~t:{r ' ~ Compensation of five highest-paid employees (other than those included on line 1-see instructions). If none, enter "NONE." (b) Title, and average (a) Name and address of each employee paid more than $50,000 hours per week (c) Compensation devoted to position -~~~~ (d) Contributions to employee benefit plans and deferred comoensation 0 7b (e) Expense account, other allowances (e) Expense account, other allowances Total number of other employees paid over $50, Form 990-PF (2011)

7 Form 990-PF (2011) VERIZON FOUNDATION Page 7 I@IQI!I Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors (continued) 3 Five highest-paid independent contractors for professional services (see instructions). If none, enter "NONE." (a) Name and address of each person paid more than $50,000 (b) Type of service _Y~HI~Q!'! ~9MMl}f'!I_Qt. J.IQ~~ - 1-~9-. 1 VERIZON WAY BASKING RIDGE NJ MANAGEMENT SERVICES (c) Compensation I 0 _._ ' 0 Total number of others receivinq over $50,000 for professional services l@ltfji Summary of Direct Charitable Activities List the foundation's fou r 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. 1 NOT APPLICABLE Expenses.. ; ::r.r. ~c:~= Summary of Program-Related Investments (see instructions) Describe the two largest program-related investments made by the foundation during the tax year on lin es 1 and 2. NONE Amount 2 All other program-related investments. See instructions. 3 Total. Add lines 1 through Form 990-PF (2011)

8 Form 990-PF (2011} VERIZON FOUNDATION Page 8 I@Q Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see instructions ) 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 i---=-1=a-t-----'1:..:5:..:.7..l,6::.:7c..:o::..z.:::.8..:..18=b Average of monthly cash balances i---=-1=b-t----=2:..::3:.!..,4..:..0:..:5:..!.,.::.86.::.9:::... c Fair market value of all other assets (see instructions) I----=-1-=c-t d Total (add lines 1 a, b, and c) 1---'-1=d-+-..:.1.::.8..:..1 c::0..:..7.::.6c::,6:..:8~7 e Reduction claimed for blockage or other factors reported on lines 1 a and 1c (attach detailed explanation) 1~1=e~~ ~ Acquisition indebtedness applicable to line 1 assets 3 Subtract line 2 from line 1d 4 Cash deemed held for charitable activities. Enter 1 Y2 %of line 3 (for greater amount, see instructions) 5 Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4. 6 Minimum investment return. Enter 5% of line 5 ::~m : Distributable Amount (see instructions) (Section 4942U)(~nd 0)(5) private operating oundations and certain fore1gn orgamzat1ons check here..,. [J and do not complete this part ) 1 Minimum investment return from Part X, line 6 2a Tax on investment income for 2011 from Part VI, line b Income tax for (This does not include the tax from Part VI.) 0 c Add lines 2a and 2b 3 Distributable amount before adjustments. Subtract line 2c from line 1 4 Recoveries of amounts treated as qualifying distributions 5 Add lines 3 and 4 6 Deduction from distributable amount (see instructions) 7 Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII, line 1..;r.n :m Quahfymg D1stnbut1ons (see mstruct1ons) 1 Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes: a Expenses, contributions, gifts, etc.-total from Part I, column (d), line 26 b Program-related investments- total from Part IX-B 2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc., purposes 3 Amounts set aside for specific charitable projects that satisfy the: a Suitability test (prior IRS approval required) b Cash distribution test (attach the required schedule) 4 Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4. 5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment income. Enter 1% of Part I, line 27b (see instructions) 6 Adjusted qualifying distributions. Subtract line 5 from line 4 Note. The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundation qualifies for the section 4940(e) reduction of tax in those years. ' _ c I~ 1b 2 1-3a 3b ,687 2, ,360,537 8,918, ,392 8,729, , , ,037 Form 990-PF (2011 )

9 Page 9 1 Distributable amount for 2011 from Part XI, line Undistributed income, if any, as of the end of 2011 : a Enter amount for 2010 only b Total for prior years: 20, 20, 20 3 Excess distributions carryover, if any, to 2011 : a From 2006 b From 2007 c From 2008 d From 2009 e From 2010 f Total of lines 3a through e 4 Qualifying distributions for 2011 from Part XII, line 4:... $ 65,847,672 a Applied to 2010, but not more than line 2a b Applied to undistributed income of prior years (Election required-see instructions).... c Treated as distributions out of corpus (Election required-see instructions) d Applied to 2011 distributable amount.... e Remaining amount distributed out of corpus Excess distributions carryover applied to (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: a Corpus. Add lines 3f, 4c, and 4e. Subtract line 5. 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 instructions..... e Undistributed income for Subtract line 4a from line 2a. Taxable amount-see instructions f Undistributed income for Subtract lines 4d and 5 from line 1. This amount must be distributed in Amounts treated as distributions out of corpus to satisfy requirements imposed by section 170(b)(1 )(F) or 4942(g)(3) (see instructions). 8 Excess distributions carryover from 2006 not applied on line 5 or line 7 (see instructions). 9 Excess distributions carryover to Subtract lines 7 and 8 from line 6a 1 0 Analysis of line 9: a Excess from 2007 b Excess from 2008 c Excess from 2009 d Excess from 2010 e Excess from 2011 (b) (c) 2010

10 see instructions and Part VIl-A, 1 a If the foundation has received a ruling or determination letter that it is a private operating foundation, and the ruling is effective for 2011, enter the date of the ruling b Check box to indicate whether the foundation is a private operating foundation described in section D 4942(j)(3) or D 4942(j)(5) 2a Enter the lesser of the adjusted net Tax year Prior 3 years income from Part I or the minimum (a) investment return from Part X for each 2011 (b) 2010 (c) 2009 (d) 2008 year listed b 85% of line 2a... :-:. ' 0 0 c Qualifying distributions from Part XII,... line 4 for each year listed. 0 d Amounts included in line 2c not used directly for active conduct of exempt activities I ' e Qualifying distributions made directly cl for active conduct of exempt activities.. Subtract line 2d from line 2c 3 Complete 3a, b, or c for the " ~ 0 a ' Assets' alternative test-enter: alternative test relied upon: (1) Value of all assets.. ~ (2) Value of assets qualifying under section 4942(j)(3)(B)(i). b 'Endowment' alternative test-enter 2/3 of minimum investment return shown in Part X, line 6 for each year listed 0 c "Support' alternative test-enter: (1) Total support other than gross investment income (interest, dividends, rents, payments. on securities loans (section 512(a)(5)), or royalties) (2) Support from general public and 5 or more exempt organizations as provided in section 4942(j)(3)(B)(iii) (3) Largest amount of support from an exempt organization. ' (4) Gross investment income I::F.Ti ~~' Supplementary Information (Complete this part only if the foundation had $5,000 or more in assets at any time during the year-see instructions.) 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).) NONE 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 1 0% or greater interest. NONE 2 Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs: Check here.,. D if the foundation only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds. If the foundation makes gifts, grants, etc. (see instructions) to individuals or organizations under other conditions, complete items 2a, b, c, and d. a The name, address, and telephone number of the person to whom applications should be addressed: NOT APPLICABLE b The form in which applications should be submitted and information and materials they should include: c Any submission deadlines: 1\10 d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors: SEE A IT ACHED STATEMENT (e) Total ~ Page '

11 Fonn 990-PF (2011) VERIZON FOUNDATION Page 11 l:tfflq'j Supplementary Information (continued) 3 Grants and Contributions Paid During the Year or Approved for Future Payment - If recipient is an individual, Recipient Foundation show any relationship to Purpose of grant or status of any foundation manager contribution recipient Name and address (home or business) or substantial contributor Amount a Paid during the year SEE ATTACHED SCHEDULE 56,282,791,,'!I. Total... 3a ,791 b Approved for future payment SEE ATTACHED SCHEDULE 12,693,055 Total b 12,693, nnn_de,,.,,.,...,

12 F orm 990 PF (2011) VERIZON F 0 UN D ATION I:F.li :t'.41!j.!. Analysis of Income-Producing Activities Enter gross amounts unless otherwise indicated. Unrelated business income J.l ~ ' t; " Page 12 Excluded by section 512, 513, or 514 (e) 1 Program service revenue: a b c d e f 9 Fees and contracts from government agencies. 2 Membership dues and assessments 3 Interest on savings and temporary cash investments 4 Dividends and interest from securities 5 Net rental income or (loss) from real estate: a Debt-financed property b Not debt-financed property 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 c ' d e 12 Subtotal. Add columns (b), (d), and (e) 13 Total. Add line 12, columns (b), (d), and (e)..... (See worksheet in line 13 instructions to verify calculations.) (a) Business code (b) Amount ' (c) (d) Related or exempt Exclusion code Amount function income (See instructions.) '"\: , ,120, , ~19~, 4~1~8~,8~7~4 l:t:...,., 1:1:1 Relationship of Activities to the Accomplishment of Exempt Purposes Line No. Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to the accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes). (See instructions.) NOT APPLICABLE I - I - ~ Form 990-PF (2011)

13 Form 990-PF (2011) VERIZON FOUNDATION Page 13 l:lffil$911 lnfonnation Regarding Transfers To and Transactions and Relationships With Noncharitable Oraa1ni2 ations 1 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 in section 527, relating to political organizations? a Transfers from the reporting foundation to a noncharitable exempt organization of: (1) Cash.... (2) Other assets b Other transactions: (1) Sales of assets to a noncharitable exempt organization (2) Purchases of assets from a noncharitable exempt organization (3) Rental of facilities, equipment, or other assets (4) Reimbursement arrangements (5) Loans or Joan guarantees (6) Performance of services or membership or fundraising solicitations c Sharing of facilities, equipment, mailing 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 reportin9 foundation. If the foundation received less than fair market value in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received. (a) line no. {b) Amount involved (c) Name of noncharitable exempt organization (d) Description of transfers, transactions, and sharing arrangements 0 NOT APPLICABLE a Is the foundation d1rectly or md1rectly 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? b If "Yes," complete the following schedule. '. -.. ~ 0 Yes [K] No (a) Name of organization (b) Type of organization (c) Description of relationship - _!_ Under penalties of peljury, I declare lhat I have exriled llis relllm, ind.dng ~ying schedules ald statements, ald ID the best of my knowledge ald belief, K is lrue, and c:ojil)lete. Declaration of preparer (oller lhan taxpayer) is based on all infonnatio!l of whi:h prepsrer has any knato1edge. Sign May the IRS liscuss this return with the preparer shown below (see Here( ~-rho -~~ 1 H!J~hz ~ f!~ 1.1DEJtJ-r instructions)? 0 Yea 0 No ~re of o11icer or trustee Oat& I Title Printrrype preparer's name Preparer's signature Date PTIN Paid Margaret A. Bradshaw 'lf/~t1.~ Check On 11 / 13/ 12 self-employed Preparer P Flllll'sname Use Only KPMG Rnn'sEIN Flllll'saddress 16761NTERNATJONAL DR MCLEAN VA Phone no. ~- (703) Form 990-PF (2011)

14 Verizon Foundation Tax Year 2011 Schedule of Expenses on Page 1 Statement 1 -Operating and Administrative Expenses Part I line 16c - Other Professional Fees Consulting Financial Services Management Services- VZ Comm Administrative/Other Services- VZ Comm Column A 2,573, ,037,589 15,056 5,626,476 Column D 2,573, ,997,226 15,056 5,586,112 line 18- Taxes Current Taxes Deferred Taxes Column A (23,754) (413,130) (436,884) line 19 - Depreciation and Depletion Data Processing Equipment Capitalized Software Accumulated Depreciation Total PP&E, Net Total Depreciation, per Annual Report Column A 337, , , , , ,138 line 23 - Other Expenses Advertising and Promotions Data Processing Telecommunications Office Expenses Memberships and Subscriptions Bank Fees Materials Other Taxes Delivery and Shipping ColumnA 2,475,986 1,274,476 31,257 11,486 29, , ,444 16,243 4,406,383 Column B Column D 2,475,986 1,338,574 31,257 11,486 29, , ,444 16, ,399 3,915,081

15 Verizon Foundation Tax Year 2011 Schedule of Other Assets Page 2, Part 2, Line 15 Prepaid Taxes Interest Receivable Dividends Receivable 381, ,214 66, ,341

16 VERIZON FOUNDATION EIN TAX YEAR 2011 Statement 2 - Part VIII - Officers and Directors Name and Address Rose M. Kirk 1 Verizon Way Basking Ridge, NJ Title and Average Hours Per Week President- 40 hrs per week ** James G. Mullaney 1 Verizon Way Basking Ridge, NJ Chief Investment Officer Michael W. Morrell 1 Verizon Way Basking Ridge, NJ Vice President and Controller Neil D. Olson 1 Verizon Way Basking Ridge, NJ Vice President and Treasurer Thomas J. Tauke 1300 I Street NW Washington DC Vice Chairman and Secretary Lowell C. McAdam 1 Verizon Way Basking Ridge, NJ Director Francis J. Shammo 1 Verizon Way Basking Ridge, NJ Director Ivan G. Seidenberg 1 Verizon Way Basking Ridge, NJ Former Chairman of the Board Resigned on 8/22/2011 Patrick R. Gaston 1 Verizon Way Basking Ridge, NJ Former President Resigned on 1/4/2011 ** Paid through Verizon Communications Inc. and allocated to the Verizon Foundation as Professional management services.

17 VERIZON FOUNDATION EIN TAX YEAR 2011 Statement 3- Part XV- Line 2d The Foundation Concentrates on Educational, Community & Innovative Organizations that are exempt under section 501 (c)(3) of the Internal Revenue Code.

18 Verizon Foundation Tax Year 2011 Schedule of Expenses on Page 1 Statement 4- Gains and Losses on Sale of Assets Publicly Traded AboveNet Total Gain Description: Securities Shares (Loss) Date acquired: Various Various Date sold : Various Various Book Gain Gross Sales Priced Cost or Other Basis Book Gain (Loss) 73,214,873 58,827,369 14,387, , ,963 74,057,836 58,827,369 15,230,467 TAX GAIN Gross Sales Priced Cost or Other Basis Tax Gain (Loss) 73,214,873 58,827,369 14,387, , ,963 74,057,836 58,827,369 15,230,467

19 Substantiation of Exercise of Expenditure Responsibility Form 990-PF, Part VII-B, Line 5 >rivate Foundation Name: Verizon Foundation (ear End: 2011 El#: rhe following information is provided in accordance with IRC Section 4945(h) (3) and Reg (d) to demonstrate that the Foundation exercised 'iscal responsibility in regard to its grants: ~arne & Address Amount Date of Purpose of Grant Amounts Report Dates Fund Diversion >fgrantee of Grant Grant Expended by Statement lti l) American Red $60 10/27/11 This payment was made as part of the $60 Furnished Upon To the knowledge of the =:ross, PO Box Verizon Foundation's Employee Request Foundation, and based on the reports furnished by ;o0814,saipan, Matching Gift Program. the contractor to date, no \1P part of the funds have ~orthern \1arianas Islands been used for any purposes other than those contemplated by the. agreement. ~)The Swinfen $50,000 12/19111 Cash grant to support the Swinfen $50,000 Furnished Upon To the knowledge of the ::::haritable Trust, Charitable Trust Mobile Telemedicine Request Foundation, and based on the reports furnished by )ene House, Program. the contractor to date, no )ene Farm Lane, part of the funds have Ningham, been used for any purposes ::::anterbury CT3 other than those lnu, United contemplated by the agreement. Gngdom

20 F INANCIAL S TATEMENTS Verizon Foundation Years Ended December 31, 2011 and 2010 With Report of Independent Auditors Ernst & Young LLP

21 Verizon Foundation Financial Statements Years Ended December 31, 2011 and 2010 Contents Report of Independent Auditors...1 Balance Sheets...2 Statements of Activities...3 Statements of Cash Flows...4 Notes to Financial Statements...5

22 Ernst & Young LLP 5 Times Square New York, NY Tel: Fax: Report of Independent Auditors The Board of Directors Verizon Foundation We have audited the accompanying balance sheets of Verizon Foundation (the Foundation ) as of December 31, 2011 and 2010, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Foundation s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Foundation s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Verizon Foundation at December 31, 2011 and 2010, and the changes in its net assets and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. September 7, A member firm of Ernst & Young Global Limited

23 Verizon Foundation Balance Sheets December Assets Cash and cash equivalents $ 19,761,299 $ 19,861,584 Investment income receivable 563, ,858 Investments, at fair value 123,603, ,571,951 Prepaid expenses 381, ,863 Fixed assets, net of accumulated depreciation of $397,543 and $297, , ,281 Total assets $ 144,451,318 $ 201,527,537 Liabilities and net assets Accounts payable and accrued expenses $ 2,530,531 $ 2,516,528 Grants payable 12,693,055 23,763,465 Deferred federal excise tax liability 134, ,364 Total liabilities 15,357,820 26,827,357 Net unrestricted assets 129,093, ,700,180 Total liabilities and net unrestricted assets $ 144,451,318 $ 201,527,537 See accompanying notes. 2

24 Verizon Foundation Statements of Activities Year Ended December Income Investment income $ 5,474,061 $ 26,027,693 Contributions 917,254 7,729,555 Total income 6,391,315 33,757,248 Expenses Grants 41,901,581 62,766,957 General, administrative and other 10,533,300 11,588,020 (Benefit) provision for federal excise tax (436,884) 586,866 Total expenses 51,997,997 74,941,843 Change in net assets (45,606,682) (41,184,595) Net unrestricted assets, beginning of year 174,700, ,884,775 Net unrestricted assets, end of year $ 129,093,498 $ 174,700,180 See accompanying notes. 3

25 Verizon Foundation Statements of Cash Flows Year Ended December Cash flows from operating activities Change in net assets $ (45,606,682) $ (41,184,595) Adjustments to reconcile change in net assets to net cash used in operating activities: Non-cash contributions (853,566) (7,668,317) Amortization of investment premium, net 94, ,140 Depreciation of equipment 100,138 89,555 Net realized gains on sale of investments (15,230,467) (4,756,702) (Benefit) provision for deferred federal excise tax (413,130) 307,262 Net change in unrealized appreciation of investments 13,944,814 (15,363,112) Changes in operating assets and liabilities: Investment income receivable 68, ,937 Prepaid expenses (94,239) (286,863) Accounts payable and accrued expenses 14,003 (2,737,788) Grants payable (11,070,410) 3,401,201 Net cash used in operating activities (59,046,907) (67,699,282) Cash flows from investing activities Proceeds from disposition of investments 74,057,836 76,883,134 Purchase of investments (15,044,614) (17,299,005) Capital expenditures (66,600) (9,324) Net cash provided by investing activities 58,946,622 59,574,805 Net decrease in cash and cash equivalents (100,285) (8,124,477) Cash and cash equivalents, beginning of year 19,861,584 27,986,061 Cash and cash equivalents, end of year $ 19,761,299 $ 19,861,584 Supplemental disclosure of cash flow information Cash paid for federal excise tax $ 497,000 $ 82,000 See accompanying notes. 4

26 Verizon Foundation Notes to Financial Statements December 31, Organization Verizon Foundation (the Foundation ) is a private, nonprofit organization incorporated under the Not-for-Profit Corporation Law of New York. Officers of Verizon Communications Inc. ( Verizon ) serve as officers or directors of the Foundation. The Foundation was formed in December 1985 exclusively for charitable purposes, as specified in Section 501(c)(3) of the Internal Revenue Code of 1986 (the Code ), including making contributions to organizations which qualify as exempt organizations under the Code. 2. Summary of Significant Accounting Policies Use of Estimates The financial statements are prepared on the accrual basis in conformity with U.S. generally accepted accounting principles, which require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements and accompanying notes. Actual results could differ from those estimates. Unrestricted Net Assets Unrestricted net assets represent funds which are fully available, at the discretion of the Board of Directors and management, for the Foundation to utilize in any of its programs or supporting services. Cash and Cash Equivalents All highly liquid financial instruments with an original maturity of three months or less when purchased are classified as cash equivalents. Cash equivalents are stated at cost, which approximates fair value, and include amounts held in money market funds. The Foundation has cash and cash equivalents on deposit with one financial institution of high-credit quality and, at times, such cash and cash equivalents may be in excess of federally insured limits. 5

27 Verizon Foundation Notes to Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Contributions The Foundation records cash contributions and unconditional promises to make cash contributions as revenue upon receipt of the cash or the unconditional promise. Noncash contributions are recorded at fair value upon receipt. The Foundation received equity securities from a subsidiary of Verizon with a fair value of $853,566 and $7,668,317, which were subsequently sold for $842,962 and $7,059,073 in cash in May 2011 and June 2010, respectively. The Foundation recorded no cash contributions during 2011 and Additionally, Verizon contributed certain legal, tax and investment services and office facilities to the Foundation. The estimated fair value of the contributed services ($63,688 for 2011 and $61,238 for 2010) is reflected in the accompanying statements of activities as Contributions and as General, administrative and other expenses. Investments Investments are carried at fair value according to the accounting pronouncement on fair value measurements. Income earned from investments, including realized and unrealized gains and losses, is included in the accompanying statements of activities. Premiums and discounts related to debt securities are included in the cost of investments and are amortized over the life of the investment using the constant yield method. Realized gains and losses on the sale of investments are determined on the specific-identification basis. Fixed Assets Fixed assets are recorded at cost and primarily consist of data processing equipment and software. Depreciation is calculated using the straight-line method over the estimated useful life of three to five years. 6