Form990-PF

Department of the Treasury
Internal Revenue Service
Return of Private Foundation
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.
OMB No. 1545-0052
2010
For calendar year 2010, or tax year beginning 09-01-2010 , and ending 08-31-2011
G
Check all that apply:
Name of foundation
WILLIAM F WELCH &
LORENE W WELCH FOUNDATION

Number and street (or P.O. box number if mail is not delivered to street address)PO BOX J   Room/suite
City or town, state, and ZIP code
SHERIDAN, WY82801
A Employer identification number

83-6033434
B Telephone number (see page 10 of the instructions)

(307) 674-1770
C bullet
D 1. bullet
H Check type of organization:
2. bullet
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$3,681,113J Accounting method:
 
(Part I, column (d) must be on cash basis.)
E bullet
F bullet
Part I Analysis of Revenue and Expenses (The total of amounts in columns (b), (c), and (d) may not necessarily equal the amounts in column (a) (see page 11 of the instructions).) (a) Revenue and
expenses per
books 		(b) Net investment
income 		(c) Adjusted net
income 		(d) Disbursements
for charitable
purposes
(cash basis only)
Revenue 1 Contributions, gifts, grants, etc., received (attach schedule)  
2 Check bullet
3 Interest on savings and temporary cash investments 1 1  
4 Dividends and interest from securities...... 97,141 97,141  
5a Gross rents..............      
b Net rental income or (loss)  
6a Net gain or (loss) from sale of assets not on line 10 79,809
b Gross sales price for all assets on line 6a 1,331,567
7 Capital gain net income (from Part IV, line 2)... 79,809
8 Net short-term capital gain.........  
9 Income modifications...........  
10a Gross sales less returns and allowances  
b Less: Cost of goods sold....  
c Gross profit or (loss) (attach schedule).....    
11 Other income (attach schedule)....... Click to see attachment 40,910 40,910  
12 Total. Add lines 1 through 11........ 217,861 217,861  
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 16,500 8,250   8,250
14 Other employee salaries and wages......        
15 Pension plans, employee benefits.......        
16a Legal fees (attach schedule)......... Click to see attachment 6 6    
b Accounting fees (attach schedule)....... Click to see attachment 5,500 4,550   950
c Other professional fees (attach schedule).... Click to see attachment 33,228 33,228    
17 Interest...............        
18 Taxes (attach schedule) (see page 14 of the instructions) Click to see attachment 10,687 242    
19 Depreciation (attach schedule) and depletion...      
20 Occupancy..............        
21 Travel, conferences, and meetings.......        
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see attachment 824 824    
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 66,745 47,100   9,200
25 Contributions, gifts, grants paid........ 160,000 160,000
26 Total expenses and disbursements. Add lines 24 and 25 226,745 47,100   169,200
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements -8,884
b Net investment income (if negative, enter -0-) 170,761
c Adjusted net income (if negative, enter -0-)...  
For Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions.
Cat. No. 11289X Form 990-PF (2010)
Form 990-PF (2010)
Page 2
Part II Balance Sheets Attached schedules and amounts in the description column
should be for end-of-year amounts only. (See instructions.)		 Beginning of year End of year
(a) Book Value (b) Book Value (c) Fair Market Value
Assets 1 Cash—non-interest-bearing...............      
2 Savings and temporary cash investments.......... 152,009 387,433 387,433
3 Accounts receivable bullet  
Less: allowance for doubtful accounts bullet        
4 Pledges receivable bullet  
Less: allowance for doubtful accounts bullet        
5 Grants receivable.................      
6 Receivables 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) bullet  
Less: allowance for doubtful accounts bullet        
8 Inventories for sale or use...............      
9 Prepaid expenses and deferred charges...........      
10a Investments—U.S. and state government obligations (attach schedule)      
b Investments—corporate stock (attach schedule)........ 2,591,329 Click to see attachment2,347,021 2,898,896
c Investments—corporate bonds (attach schedule)........      
11 Investments—land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
12 Investments—mortgage loans..............      
13 Investments—other (attach schedule)...........      
14 Land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
15 Other assets (describe bullet) Click to see attachment40,975 Click to see attachment40,975 Click to see attachment394,784
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 2,784,313 2,775,429 3,681,113
Liabilities 17 Accounts payable and accrued expenses..........    
18 Grants payable...................    
19 Deferred revenue..................    
20 Loans from officers, directors, trustees, and other disqualified persons    
21 Mortgages and other notes payable (attach schedule)......    
22 Other liabilities (describe bullet)    
23 Total liabilities (add lines 17 through 22)..........   0
Net Assets or Fund Balances bullet
and complete lines 24 through 26 and lines 30 and 31.
24 Unrestricted....................    
25 Temporarily restricted................    
26 Permanently restricted................    
bullet
and complete lines 27 through 31.
27 Capital stock, trust principal, or current funds.........    
28 Paid-in or capital surplus, or land, bldg., and equipment fund    
29 Retained earnings, accumulated income, endowment, or other funds 2,784,313 2,775,429
30 Total net assets or fund balances (see page 17 of the
instructions).................... 2,784,313 2,775,429
31 Total liabilities and net assets/fund balances (see page 17 of
the instructions).................. 2,784,313 2,775,429
Part III Analysis of Changes in Net Assets or Fund Balances
1 Total net assets or fund balances at beginning of year—Part II, column (a), line 30 (must agree
with end-of-year figure reported on prior year’s return)............... 1 2,784,313
2 Enter amount from Part I, line 27a...................... 2 -8,884
3 Other increases not included in line 2 (itemize) bullet 3  
4 Add lines 1, 2, and 3.......................... 4 2,775,429
5 Decreases not included in line 2 (itemize) bullet 5  
6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30.. 6 2,775,429
Form 990-PF (2010)
Form 990-PF (2010)
Page 3
Part IV
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 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.)
1 a 1200-BANCO SANTANDERS S.A. P 2010-06-11 2011-03-09
b 1000-EV ENERGY PARTNERS LP P 2010-06-09 2011-08-03
c CLASS ACTION PROCEEDS P   2011-08-31
d 1000-ANNALY CAPITAL MANAGEMENT P 2009-09-22 2010-11-01
e 1000-FIFTH THIRD CAP TR P 2009-06-11 2011-06-15
FEE COAL P   2011-03-31
300-ANNALY CAPITAL MANAGEMENT P 2009-11-05 2010-11-01
2000-FIFTH THIRD CAP TR P 2010-11-17 2011-06-15
1500-BANK AMERICA CORP P 2010-04-19 2011-05-02
600-FLUOR CORPORATION P 2008-12-22 2011-03-09
600-BANK AMERICA CORP P 2010-07-20 2011-05-02
700-JP MORGAN CHASE & CO P 2008-12-22 2011-06-03
500-BEST BUY CO P 2010-06-16 2011-03-09
100-JP MORGAN CHASE & CO P 2010-06-10 2011-06-03
300-CATERPILLAR INC P 2006-10-20 2011-03-09
800-JP MORGAN CHASE & CO P 2010-10-13 2011-06-06
500-CELGENE CORP P 2007-10-25 2011-03-09
1000-ML PFD CAPITAL TRUST P 2007-08-23 2010-12-15
2000-CISCO SYSTEMS P 2007-04-26 2010-12-15
7352.636-SEI INDEX FDS S&P 500 P 2009-10-06 2010-11-10
2000-DRYSHIPS INC P 2009-11-03 2011-08-23
150.061-SEI INDEX FDS S&P 500 P 2010-10-06 2010-11-10
1000-DRYSHIPS INC P 2010-12-29 2011-08-23
576-TRANSOCEAN INC P 2007-05-22 2011-08-23
2000-EL PASO CORP P 2006-07-05 2010-11-01
1000-VERIFONE SYSTEM INC P 2011-05-26 2011-08-23
1000-ELDORADO GOLD CORP P 2010-08-25 2011-06-03
800-WELLS FARGO & CO P 2008-12-22 2011-05-26
500-ENERGY TRANSFER PARTNERS P 2009-02-12 2011-06-03
3000-WHITING USA TRUST P 2010-11-17 2011-03-03
500-ENERGY TRANSFER PARTNERS P 2010-08-25 2011-06-03
12783.233-WASHINGTON MUTUAL INVESTOR P   2011-05-19
(e) Gross sales price (f) Depreciation allowed
(or allowable) 		(g) Cost or other basis
plus expense of sale 		(h) Gain or (loss)
(e) plus (f) minus (g)
a 13,776   12,478 1,298
b 66,773   29,701 37,072
c 139     139
d 17,582   19,646 -2,064
e 25,000   21,050 3,950
25,000     25,000
5,275   5,154 121
50,000   52,146 -2,146
18,536   27,847 -9,311
41,183   25,967 15,216
7,414   8,164 -750
29,314   21,720 7,594
15,670   19,226 -3,556
4,188   3,795 393
30,852   17,954 12,898
32,734   31,309 1,425
26,883   19,158 7,725
24,750   25,245 -495
38,885   31,051 7,834
246,093   230,934 15,159
5,081   12,958 -7,877
5,023   4,569 454
2,540   5,493 -2,953
29,728   48,451 -18,723
26,790   26,072 718
31,561   49,897 -18,336
14,904   18,773 -3,869
21,958   22,921 -963
23,253   17,342 5,911
50,963   62,486 -11,523
23,253   23,018 235
376,466   357,233 19,233
Complete only for assets showing gain in column (h) and owned by the foundation on 12/31/69 (l) Gains (Col. (h) gain minus
col. (k), but not less than -0-) or
Losses (from col.(h))
(i) F.M.V. as of 12/31/69 (j) Adjusted basis
as of 12/31/69 		(k) Excess of col. (i)
over col. (j), if any
a       1,298
b       37,072
c       139
d       -2,064
e       3,950
      25,000
      121
      -2,146
      -9,311
      15,216
      -750
      7,594
      -3,556
      393
      12,898
      1,425
      7,725
      -495
      7,834
      15,159
      -7,877
      454
      -2,953
      -18,723
      718
      -18,336
      -3,869
      -963
      5,911
      -11,523
      235
      19,233
2 Capital gain net income or (net capital loss) Bracket If gain, also enter in Part I, line 7
If (loss), enter -0- in Part I, line 7		 Bracket 2 79,809
3 Net short-term capital gain or (loss) as defined in sections 1222(5) and (6):
If gain, also enter in Part I, line 8, column (c) (see pages 13 and 17 of the instructions).
If (loss), enter -0- in Part I, line 8 . . . . . . . . . . . . . 		Bracket 3 -39,207
Part V
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 foundation liable for the section 4942 tax on the distributable amount of any year in the base period?
If “Yes,” the 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 page 18 of the instructions before making any entries.
(a)
Base period years Calendar
year (or tax year beginning in) 		(b)
Adjusted qualifying distributions 		(c)
Net value of noncharitable-use assets 		(d)
Distribution ratio
(col. (b) divided by col. (c))
2009 61,400 2,922,997 0.021006
2008 64,450 2,598,583 0.024802
2007 175,120 3,794,515 0.046151
2006 172,401 3,894,811 0.044264
2005 187,617 3,402,928 0.055134
2 Total of line 1, column (d) ...................... 2 0.191357
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 in existence if less than 5 years. . . 		3 0.038271
4 Enter the net value of noncharitable-use assets for 2010 from Part X, line 5..... 4 3,644,186
5 Multiply line 4 by line 3....................... 5 139,467
6 Enter 1% of net investment income (1% of Part I, line 27b)........... 6 1,708
7 Add lines 5 and 6......................... 7 141,175
8 Enter qualifying distributions from Part XII, line 4.............. 8 169,200
If line 8 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 18.
Form 990-PF (2010)
Form 990-PF (2010)
Page 4
Part VI
Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948—see page 18 of the instructions)
1a Bulletand enter “N/A” on line 1. Bracket
Date of ruling or determination letter:   (attach copy of letter if necessary–see instructions)
b 1 1,708
hereBulletand 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-) 2  
3 Add lines 1 and 2............................ 3 1,708
4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-). 4  
5 Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- ..... 5 1,708
6 Credits/Payments:
a 2010 estimated tax payments and 2009 overpayment credited to 2010 6a 5,720
b Exempt foreign organizations—tax withheld at source....... 6b
c Tax paid with application for extension of time to file (Form 8868) 6c  
d Backup withholding erroneously withheld ........... 6d  
7 Total credits and payments. Add lines 6a through 6d.............. 7 5,720
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. 8  
9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......Bullet 9  
10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...Bullet 10 4,012
11 Enter the amount of line 10 to be: Credited to 2011 estimated taxBullet1,710 Refunded Bullet 11 2,302
Part VII-A
Statements Regarding Activities
1a
During the tax year, did the foundation attempt to influence any national, state, or local legislation or did
Yes
No
it participate or intervene in any political campaign? ....................
1a
 
No
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)?.............................
1b
 
No
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?.....................
1c
 
No
d
Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year:
(1) On the foundation. bullet$   (2) On foundation managers.bullet$  
e
Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed
on foundation managers.bullet$  
2
Has the foundation engaged in any activities that have not previously been reported to the IRS?.......
2
 
No
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....
3
 
No
4a
Did the foundation have unrelated business gross income of $1,000 or more during the year?........
4a
 
No
b
If “Yes,” has it filed a tax return on Form 990-T for this year?...................
4b
 
 
5
Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........
5
 
No
If “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 in the governing instrument?................
    6
    Yes
     
    7
    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.
    7
    Yes
     
    8a
    Enter the states to which the foundation reports or with which it is registered (see page 19 of the
    instructions)bulletWY
    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 General Instruction G? If “No,” attach explanation .
    8b
    Yes
     
    9
    Is the foundation claiming status as a private operating foundation within the meaning of section 4942(j)(3)
    or 4942(j)(5) for calendar year 2010 or the taxable year beginning in 2010 (see instructions for Part XIV on
    page 27)? If “Yes,” complete Part XIV...........................
    9
     
    No
    10
    Did any persons become substantial contributors during the tax year? If “Yes,” attach a schedule listing their names and addresses.
    10
     
    No
    11
    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 page 20 of the instructions) .......
    11
     
    No
    12
    Did the foundation acquire a direct or indirect interest in any applicable insurance contract before August 17, 2008?
    12
     
    No
    13
    Did the foundation comply with the public inspection requirements for its annual returns and exemption application?
    13
    Yes
     
    Website addressbulletN/A
    14
    The books are in care ofbulletCYPRESS CAPITAL MANAGEMENT Telephone no.bullet (307) 674-1770
    Located atbullet50 EAST LOUCKS STSHERIDANWY ZIP+4bullet82801
    15
    Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041.........bullet
    and enter the amount of tax-exempt interest received or accrued during the year ......bullet
    15  
    16
    At any time during calendar year 2010, did the foundation have an interest in or a signature or other authority over
    a bank, securities, or other financial account in a foreign country? .................
    16
     
     
    See page 20 of the instructions for exceptions and filing requirements for Form TD F 90-22.1. If "Yes", enter the name of the foreign country bullet  
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 5
    Part VII-B
    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.
    Yes
    No
    1a
    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”
    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.).........
    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 20 of the instructions)?...
    1b
     
    No
    .........bullet
    c
    Did the foundation 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 in 2010?.............
    1c
     
     
    2
    Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was a private
    operating foundation defined in section 4942(j)(3) or 4942(j)(5)):
    a
    At the end of tax year 2010, did the foundation have any undistributed income (lines 6d
    and 6e, Part XIII) for tax year(s) beginning before 2010?...............
    If “Yes,” list the years bullet20, 20, 20, 20
    b
    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 page 20 of the instructions.) .........
    2b
     
     
    c
    If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.
    bullet20, 20, 20, 20
    3a
    Did the foundation hold more than a 2% direct or indirect interest in any business
    enterprise at any time during the year?.....................
    b
    If “Yes,” did it have excess business holdings in 2010 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 2010.)....................
    3b
     
     
    4a
    Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?
    4a
     
    No
    b
    Did the foundation 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 in 2010?
    4b
     
    No
    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 page 22 of the instructions)...
    (5) Provide for any purpose other than religious, charitable, scientific, literary, or
    educational purposes, or for the prevention of cruelty to children or animals?........
    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 53.4945 or in a current notice regarding disaster assistance (see page 22 of the instructions)?
    5b
     
     
    .........bullet
    c
    If the answer is “Yes” to question 5a(4), does the foundation claim exemption from the
    tax because it maintained expenditure responsibility for the grant?............
    If “Yes,” attach the statement required by Regulations section 53.4945–5(d).
    6a
    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?....
    6b
     
    No
    If “Yes” to 6b, file Form 8870.
    7a
    At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction?
    b
    If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? ....
    7b
     
     
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 6
    Part VIII
    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 22 of the instructions).
    (a) Name and address (b) Title, and average
    hours per week
    devoted to position     		(c) Compensation
     (If not paid, enter
    -0-)     		(d) Contributions to
    employee benefit plans
    and deferred compensation     		(e) Expense account,
    other allowances
    FRANK ROTELLINIClick to see attachment CO-TRUSTEE
    5.00     		5,500 0 0
    PO BOX J
    SHERIDAN,WY82801
    WILLIAM B EBZERYClick to see attachment CO-TRUSTEE
    5.00     		5,500 0 0
    PO BOX J
    SHERIDAN,WY82801
    RICHARD M DAVIS JRClick to see attachment CO-TRUSTEE
    5.00     		5,500 0 0
    PO BOX J
    SHERIDAN,WY82801
    2 Compensation of five highest-paid employees (other than those included on line 1—see page 23 of the instructions).
    If none, enter “NONE.”
    (a) Name and address of each employee paid more than $50,000 (b) Title, and average
    hours per week
    devoted to position     		(c) Compensation (d) Contributions to
    employee benefit
    plans and deferred
    compensation     		(e) Expense account,
    other allowances
    NONE
    Total number of other employees paid over $50,000...................bullet  
    3 Five highest-paid independent contractors for professional services (see page 23 of the instructions). If none, enter "NONE".
    (a) Name and address of each person paid more than $50,000 (b) Type of service (c) Compensation
    NONE
    Total number of others receiving over $50,000 for professional services.............bullet  
    Part IX-A
    Summary of Direct Charitable Activities
    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. Expenses
    1
     
    2  
    3  
    4  
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 7
    Part IX-B
    Summary of Program-Related Investments (see page 23 of the instructions)
    Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2. Amount
    1 N/A  
    2  
    All other program-related investments. See page 24 of the instructions.
    3  
    Total. Add lines 1 through 3...........................bullet  
    Part X
    Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations,
    see page 24 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...................
    1a
    3,095,145
    b
    Average of monthly cash balances.......................
    1b
    223,021
    c
    Fair market value of all other assets (see page 24 of the instructions)............
    1c
    381,515
    d
    Total (add lines 1a, b, and c).........................
    1d
    3,699,681
    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 1d..........................
    3
    3,699,681
    4
    Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see page 25
    of the instructions) ............................
    4
    55,495
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    3,644,186
    6
    Minimum investment return. Enter 5% of line 5...................
    6
    182,209
    Part XI
    Distributable Amount bullet and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    182,209
    2a
    Tax on investment income for 2010 from Part VI, line 5......
    2a
    1,708
    b
    Income tax for 2010. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    1,708
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    180,501
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4.............................
    5
    180,501
    6
    Deduction from distributable amount (see page 25 of the instructions)...........
    6
     
    7
    Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,
    line 1.................................
    7
    180,501
    Part XII
    Qualifying Distributions (see page 25 of the instructions)
    1
    Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:
    a
    Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........
    1a
    169,200
    b
    Program-related investments—total from Part IX-B..................
    1b
     
    2
    Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
    purposes................................
    2
     
    3
    Amounts set aside for specific charitable projects that satisfy the:
    a
    Suitability test (prior IRS approval required)....................
    3a
     
    b
    Cash distribution test (attach the required schedule) .................
    3b
     
    4
    Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4
    4
    169,200
    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 page 26 of the instructions)............
    5
    1,708
    6
    Adjusted qualifying distributions. Subtract line 5 from line 4...............
    6
    167,492
    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.
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 8
    Part XIII
    Undistributed Income (see page 26 of the instructions)
    (a)
    Corpus     		(b)
    Years prior to 2009     		(c)
    2009     		(d)
    2010
    1 Distributable amount for 2010 from Part XI, line 7 180,501
    2 Undistributed income, if any, as of the end of 2010:
    a Enter amount for 2009 only....... 55,299
    b Total for prior years:20, 20, 20  
    3 Excess distributions carryover, if any, to 2010:
    a From 2005.......  
    b From 2006.......  
    c From 2007.......  
    d From 2008.......  
    e From 2009.......  
    fTotal of lines 3a through e.........  
    4Qualifying distributions for 2010 from Part
    XII, line 4: bullet$ 169,200
    a Applied to 2009, but not more than line 2a 55,299
    b Applied to undistributed income of prior years
    (Election required—see page 26 of the instructions)    		  
    c Treated as distributions out of corpus (Election
    required—see page 26 of the instructions)...     		 
    d Applied to 2010 distributable amount..... 113,901
    e Remaining amount distributed out of corpus  
    5 Excess distributions carryover applied to 2010.    
    (If an amount appears in column (d), the
    same amount must be shown in column (a).)
    6Enter 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 page 27 of the instructions ...     		 
    e Undistributed income for 2009. Subtract line
    4a from line 2a. Taxable amount—see page 27
    of the instructions ...........     		 
    f Undistributed income for 2010. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2011 ..........     		66,600
    7 Amounts treated as distributions out of
    corpus to satisfy requirements imposed by
    section 170(b)(1)(F) or 4942(g)(3) (see page 27
    of the instructions) ...........     		 
    8Excess distributions carryover from 2005 not
    applied on line 5 or line 7 (see page 27 of the
    instructions) .............     		 
    9Excess distributions carryover to 2011.
    Subtract lines 7 and 8 from line 6a ......     		 
    10 Analysis of line 9:
    a Excess from 2006....  
    b Excess from 2007....  
    c Excess from 2008....  
    d Excess from 2009....  
    e Excess from 2010....  
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 9
    Part XIV
    Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9)
    1a If the foundation has received a ruling or determination letter that it is a private operating
    foundation, and the ruling is effective for 2010, enter the date of the ruling.......bullet
     
    b Check box to indicate whether the organization is a private operating foundation described in section or
    2a Enter the lesser of the adjusted net
    income from Part I or the minimum
    investment return from Part X for each
    year listed ..........     		Tax year Prior 3 years (e) Total
    (a) 2010 (b) 2009 (c) 2008 (d) 2007
             
    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
    for active conduct of exempt activities ....     		         
    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 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...     		         
    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          
    Part XV
    Supplementary Information (Complete this part only if the organization had $5,000 or more in
    assets at any time during the year—see page 27 of the instructions.)
    1Information Regarding Foundation Managers:
    aList 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).)
    bList 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.
    2Information Regarding Contribution, Grant, Gift, Loan, Scholarship, etc., Programs:
    Check here bullet
    aThe name, address, and telephone number of the person to whom applications should be addressed:
    WELCH FOUNDATION
    PO BOX J
    SHERIDAN,WY82801
    (307) 674-1770
    bThe form in which applications should be submitted and information and materials they should include:
    WRITTEN REQUEST
    cAny submission deadlines:
    NONE
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    NONE
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 10
    Part XV
    Supplementary Information (continued)
    3 Grants and Contributions Paid During the Year or Approved for Future Payment
    Recipient If recipient is an individual,
    show any relationship to
    any foundation manager
    or substantial contributor
    		 Foundation
    status of
    recipient     		Purpose of grant or
    contribution     		Amount
    Name and address (home or business)
    aPaid during the year
    BILLINGS CLINIC FOUND
    2917 10TH AVENUE NORTH
    BILLINGS,MT591079945     		NONE PUBLIC CHARITABLE 30,000
    CENTER FOR A VITAL
    COMMUNITY
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 7,500
    COMMUNITY HOLIDAY
    FESTIVAL
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 1,000
    FAMILY PLANNING OF THE
    BIGHORNS
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 3,000
    HOLY NAME CATHOLIC CHURCH
    260 E LOUCKS
    SHERIDAN,WY82801     		NONE CHURCH CHARITABLE 2,500
    SHERIDAN COLLEGE
    FOUNDATION
    SHERIDAN,WY82801     		NONE PUBLIC EDUCATIONAL 10,000
    SHERIDAN COUNTY LIBRARY
    FOUNDATION
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 5,000
    WYO THEATRE INC
    42 N MAIN
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 10,000
    WYOMING PUBLIC RADIO
    UNIV OF WY
    LARAMIE,WY82801     		NONE PUBLIC CHARITABLE 1,000
    CHILD DEVELOPMENT CENTER
    345 SOUTH LINDEN AVENUE
    SHERIDAN,WY82801     		NONE PUBLIC EDUCATIONAL 1,000
    SENIOR CITIZENS COUNCIL
    211 SMITH STREET
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 5,000
    FREE CLINIC OF SHERIDAN
    1428 W 5TH STREET
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 1,000
    HABITAT FOR HUMANITY
    OF EASTERN BIGHORNS
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 3,000
    CHILDREN HORSES AND
    ADULTS IN PARTNERSHIP
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 1,000
    SHERIDAN COUNTY
    HISTORICAL SOCIETY
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 1,000
    SHERIDAN COUNTY MEMORIAL
    HOSPITAL FOUNDATION
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 77,500
    BUSINESS LEADERSHIP
    COUNCIL
    SHERIDAN,WY82801     		NONE PUBLIC CHARITABLE 500
    Total .................................bullet 3a 160,000
    bApproved for future payment
    Total ..................................bullet 3b  
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 11
    Part XVI-A
    Analysis of Income-Producing Activities
    Enter gross amounts unless otherwise indicated. Unrelated business income Excluded by section 512, 513, or 514 (e)
    Related or exempt
    function income
    (See page 28 of
    the instructions.)
    1Program service revenue: (a)
    Business code     		(b)
    Amount     		(c)
    Exclusion code     		(d)
    Amount
    a
    b
    c
    d
    e
    f
    gFees and contracts from government agencies          
    2 Membership dues and assessments....          
    3Interest on savings and temporary cash investments     14 1  
    4 Dividends and interest from securities....     14 97,141  
    5 Net rental income or (loss) from real estate:
    aDebt-financed property......          
    bNot debt-financed property.....          
    6Net rental income or (loss) from personal property          
    7 Other investment income.....     14 1,355  
    8Gain or (loss) from sales of assets other than inventory     18 79,809  
    9 Net income or (loss) from special events:          
    10 Gross profit or (loss) from sales of inventory..          
    11 Other revenue: aPTP DISTRIBUTIONS     14 39,555  
    bNON-DEDUCTIBLE PTP UBTI LOSS     14 12,965  
    cVARIOUS PTPS PER SCH K-1 900003 -12,965      
    d
    e
    12 Subtotal. Add columns (b), (d), and (e).. -12,965 230,826  
    13Total. Add line 12, columns (b), (d), and (e)...................
    13217,861
    (See worksheet in line 13 instructions on page 28 to verify calculations.)
    Part XVI-B
    Relationship of Activities to the Accomplishment of Exempt Purposes
    Line No.
    DownArrow     		Explain below how each activity for which income is reported in column (e) of Part XVI-A contributed importantly to
    the accomplishment of the organization’s exempt purposes (other than by providing funds for such purposes). (See
    page 28 of the instructions.)
    Form 990-PF (2010)
    Form 990-PF (2010)
    Page 12
    Part XVII
    Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations
    1
    Did the organization directly or indirectly engage in any of the following with any other organization described in section
    Yes
    No
    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....................................
    1a(1)
     
    No
    (2) Other assets.................................
    1a(2)
     
    No
    b
    Other transactions:
    (1) Sales of assets to a noncharitable exempt organization....................
    1b(1)
     
    No
    (2) Purchases of assets from a noncharitable exempt organization..................
    1b(2)
     
    No
    (3) Rental of facilities, equipment, or other assets.......................
    1b(3)
     
    No
    (4) Reimbursement arrangements............................
    1b(4)
     
    No
    (5) Loans or loan guarantees..............................
    1b(5)
     
    No
    (6) Performance of services or membership or fundraising solicitations................
    1b(6)
     
    No
    c
    Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............
    1c
     
    No
    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 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
    2a
    Is the foundation 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?...........
    b
    If “Yes,” complete the following schedule.
    (a) Name of organization (b) Type of organization (c) Description of relationship
    SignHere
    Under penalties of perjury, 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, correct, and complete. Declaration of preparer (other than taxpayer or fiduciary) is based on all information of which preparer has any knowledge.
    Bullet Bullet
    Signature of officer or trustee Date Title
    PaidPreparersUseOnly Preparer's SignatureBullet Date PTIN
    Firm's namebullet



    Firm's addressbullet







         		Firm's EINbullet
    Phone no.
    Form 990-PF (2010)
    Additional Data


    Software ID:  
    Software Version:  


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2010 AccountingFeesSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    TAX PREPARATION 1,900 950   950
    BOOKKEEPING 3,600 3,600    

    TY 2010 CompensationExplanation
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Person Name Explanation
    FRANK ROTELLINI  
    WILLIAM B EBZERY  
    RICHARD M DAVIS JR  

    TY 2010 InvestmentsCorpStockSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Name of Stock End of Year Book Value End of Year Fair Market Value
    BEGINNING OF YEAR    
    1500-SEADRILL LTD 51,733 48,554
    4300-ALTRIA GROUP INC. 63,175 116,917
    700-ANADARKO PETROLEUM CORP 37,825 51,625
    3000-ANNALY CAPITAL MGMT. INC. 52,919 54,390
    300-APPLE INC 72,031 115,449
    1500-AVALON RARE METALS INC 11,238 6,795
    500-BOEING CO 28,532 33,430
    1750-BREITBURN ENERGY PARTNERS LP 36,549 32,358
    300-BUCKEYE PARTNERS LP 10,767 18,894
    500-CSX CORP 12,614 10,970
    300-CATERPILLAR INC. 17,954 27,300
    600-CELGENE CORP 26,682 35,682
    800-CHEVRON CORP 57,621 79,072
    1000-COLGATE PALMOLIVE 36,690 89,970
    2000-EL PASO CORPORATION 26,072 38,280
    3400-ENBRIDGE ENERGY PARTNERS, LP 94,139 96,900
    2000-ENCORE ENERGY PARTNERSHIP 43,554 39,680
    1500-ENTERPRISE PRODS PARTNERS LP 48,587 63,225
    1000-EV ENERGY PARTNERS LP 32,595 68,880
    1200-EXXON MOBIL 76,206 88,824
    800-FREEPORT MCMORAN COPPER & GOLD 31,093 37,688
    1100-HALLIBURTON CO 52,892 48,807
    1000-HUGOTON ROYALTY TRUST 18,855 22,840
    1200-JOHNSON & JOHNSON 47,413 78,960
    1000-JOY GLOBAL 22,409 83,450
    750-KINDER MORGAN ENERGY PARTNERS 43,416 52,620
    2500-LEGACY RESERVES LP 66,052 68,900
    1400-LINN ENERGY LLC 41,034 52,990
    2000-MARTIN MIDSTREAM PARTNERS LP 76,642 71,040
    500-MCDONALDS CORP 29,210 45,205
    800-MERCK & CO 23,480 26,476
    600-PEABODY ENERGY CORP 35,256 29,280
    1000-PENN WEST ENERGY 19,773 18,730
    500-PEPSICO INC 29,547 32,215
    1350-PHILIP MORRIS INTERNATIONAL 40,071 93,582
    2000-PIONEER SOUTHWEST ENERGY UNIT 50,912 57,240
    1000-QUEST DIAGNOSTICS INC. 32,580 50,070
    4000-RARE ELEMENT RESOURCES LTD 39,003 36,000
    1000-REYNOLDS AMERICAN 29,524 37,570
    10000-SIRIUS XM RADIO INC 33,321 18,000
    1500-VECTOR GROUP LTD 27,789 28,020
    900-VOLCANO CORP 17,945 26,955
    2000-ARES CAPITAL CORP 48,545 49,960
    1000-BB&T CAPITAL TRUST 27,786 26,930
    2500-BANK OF AMERICA CORP 8.2% 56,928 62,250
    2000-BANK OF AMERICA CORP 8.625% 43,677 50,400
    2000-BARCLAYS BANK PLC 7.75% 48,712 48,540
    1000-CONSTELLATION ENERGY GRP 8.625% 22,265 27,030
    1500-FIFTH THIRD CAP TR VI 7.25% 34,312 37,650
    3000-NATIONAL CITY CAP TR IV 8% 54,404 77,130
    900-PNC CAPITAL TRUST 7.75% 22,049 23,373
    3500-REGIONS FINANCING TR 87,808 88,760
    1000-SUNTRUST CAPITAL IX 7.875% 22,025 25,510
    1800-WELLS FARGO CAPITAL 7.875% 44,661 47,610
    3800-ZIONS BANCORP 93,701 96,520
    1000-WELLS FARGO CAPITAL XIV 8.625% 25,375 27,400
    0.297-FIDELITY CONTRA FUND 15 20
    500-SELECT SECTOR SPDR-ENERGY 29,940 34,320
    1624.7871-TORTOISE ENERGY CAPITAL CO 39,118 41,660

    TY 2010 LegalFeesSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    LEGAL 6      


    TY 2010 OtherAssetsSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Description Beginning of Year - Book Value End of Year - Book Value End of Year - Fair Market Value
    COINS & BULLION 32,251 32,251 98,464
    MINERALS 8,724 8,724 8,724
    COAL     287,596


    TY 2010 OtherExpensesSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXPENSES        
    BANK CHARGES 22 22    
    SAFE DEPOSIT BOX 160 160    
    STORAGE EXPENSE 642 642    


    TY 2010 OtherIncomeSchedule2
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Description Revenue And Expenses Per Books Net Investment Income Adjusted Net Income
    HUGOTON ROYALTY TRUST 1,355 1,355  
    PTP DISTRIBUTIONS 39,555 39,555  
    NON-DEDUCTIBLE PTP UBTI LOSS 12,965    
    VARIOUS PTPS PER SCH K-1 -12,965    


    TY 2010 OtherProfessionalFeesSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    INVESTMENT MANAGEMENT 33,228 33,228    


    TY 2010 TaxesSchedule
    Name:
    WILLIAM F WELCH &
    LORENE W WELCH FOUNDATION
    EIN: 83-6033434
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    EXCISE TAXES 10,445      
    FOREIGN TAXES ON DIVIDENDS 242 242