Financial Information

Additional financial information about the Hewlett Foundation can be found in the tax document known as the 990 PF, which private foundations file each year with the Internal Revenue Service. This document provides financial information about a foundation's assets, investments, and expenses.  

Form 990PF
For more information about Form 990, click on the following link: Understanding the IRS Form 990, from Guidestar, a nonprofit organization that provides data on over 1.5 million organizations nationwide.  In assessing whether a Foundation or the organizations it supports are effective, though, Form 990 isn't the whole story, as the Guidestar site correctly points out:

Although Forms 990 can provide a snapshot of the financial health and expenditures of an organization at a specific time, they are virtually useless in comparing one organization to another unless the organizations are of similar size, age, geography, and field of activity. Further, they tell us nothing about the ultimate or relative effectiveness of an organization with respect to meeting its objectives. This is the true bottom line of charity. Form 990 data are most useful for examining the evolving health and financial practices of an organization over a period of time.

Click here to access the Hewlett Foundation's Form 990PF for 2006. 

Click here to access 990s from previous years at the Guidestar website.

Analysis of Qualifying Distributions

Also, we have included a chart that provides an analysis of qualifying distributions - activities that include Direct Charitable Activities (also known as DCAs) and Grant-Making Activities, as well as General & Administrative costs. These three categories are combined on the IRS Form 990PF under the heading of Total Operating Activities, but we have included the linked chart provide more information about that category.

Click here to view the Analysis of Qualifying Distributions.

The William and Flora Hewlett Foundation Social Investment Policy
Click here to view the Foundation's Social Investment Policy.

Compensation for Top Executives
The 990 PF also contains information pertaining to compensation for top executives.  To give the public a fuller understanding of how executives at the Hewlett Foundation were compensated in 2005, we have provided this additional information about the Foundation's two most highly compensated executives. 

Paul Brest – President

In 2006 , Paul Brest earned $536,450 in cash compensation.
 
The IRS form 990 PF also reports $ 78,588 in benefits. This includes the cost of medical coverage, contributions to a 403(b) retirement account, and also reflects a retention incentive compensation of $21,836. 

This was not actually received by Mr. Brest in 2006 - it is set aside by the Foundation and can be paid upon the satisfactory conclusion of his retention period.  IRS guidelines require that this charge be reported as a benefit on IRS Form 990PF, whether or not the payment is eventually awarded.
 
Laurie Hoagland – Chief Investment Officer
 
In 2006 , Mr. Hoagland’s base salary was $320,417. He earned incentive compensation of $389,000  in 2005 but it was not paid until 2006 , and as a result appears on IRS Form 990PF for 2006 . He also earned an incentive retention payment of $228,444  in 2005, although that payment was made in 2006  and thus appears on the 990PF for 2006.
 
His total compensation as it appears on the 2006  990PF was $937,861 .
 
In 2006, Mr. Hoagland's benefits, which include the cost of his medical coverage and contributions to a 403 (b) retirement account, were $56,752 .
 
(An “incentive retention payment” is a commonly-used way to provide a financial incentive to retain key staff with unique skills or abilities whose contribution is critical to achieving the goals of an organization.)