Financials
The Hewlett Foundation's Annual Report contains descriptions of the Foundation's programs, audited financial statements, and a complete list of all the Foundation's grants in a given year. An archive of the Foundation's Annual Reports can be found here. The Foundation also has a Social Investment Policy. In this section of the site, you will find information about the Foundation's Audited Financial Statements, tax forms 990-PF and 990-T, and executive compensation.
Please note: The 2009 grants and gifts disbursed value is an estimate.
Audited Financial Statements
Read or download the Hewlett Foundation's 2009 Audited Financial Statements (PDF).
Past audited financial statements can be found in our library here.
Form 990-PF
The Form 990-PF contains additional financial information about the Hewlett Foundation, including information about the Foundation's assets, investments, and expenses. Private foundations are required to file this form each year with the Internal Revenue Service.
For additional background information, read 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.
Read or download the Hewlett Foundation's 2008 Form 990-PF:
2008 Form 990-PF (without attachments) (PDF)
2008 Form 990-PF (full return with attachments) (PDF)
Previous year's 990-PF forms are available at the Guidestar website:
Form 990-T
The IRS Form 990-T, known as the Exempt Organization Business Income Tax Return, is the form exempt organizations, such as foundations, use to determine the income tax owed on unrelated business income. The IRS defines unrelated business income as "the gross income derived from any trade or business that is regularly carried on, and not substantially related to the organization's exempt purpose or function." Under the IRS's definition, certain of the foundation's investments, including some investments in real estate partnerships, are reported as unrelated business income.
Read or download the Hewlett Foundation's 2008 Form 990-T (PDF).
The William and Flora Hewlett Foundation
Social Investment Policy
Click here to view the Foundation's Social Investment Policy.
Executive Compensation
Paul Brest - President
In 2008, Paul Brest earned $591,465 in cash compensation.
The IRS form 990-PF also reports $178,487 in benefits. This includes the cost of medical coverage, contributions to a 403(b) retirement account, and also reflects a retention compensation of $119,002.
This last amount was not actually received by Mr. Brest in 2008 — 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 the IRS Form 990-PF, whether or not the payment is eventually awarded.
Laurie Hoagland - Chief Investment Officer
In 2008, Mr. Hoagland's base salary was $531,315. He earned incentive compensation of $815,200 in 2007 but it was not paid until 2008, and as a result appears on the IRS Form 990-PF for 2008. He also earned a retention payment of $238,732 in 2007, although that payment was made in 2008 and thus appears on the 990-PF for 2008. In addition, he earned $33,657 of other retirement payment.
His total compensation as it appears on the 2008 990-PF was $1,618,904.
In 2008, Mr. Hoagland's benefits, which include the cost of his medical coverage and contributions to a 403 (b) retirement account, were $59,342.
(A "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.)
CREATIVE COMMONS