Form990-PF
Click to see attachment

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
2012
Open to Public Inspection
For calendar year 2012, or tax year beginning 01-01-2012 , and ending 12-31-2012
Name of foundation
WILLIAM S PALEY FOUNDATION INC
co BENCIVENGA WARD & COMPANY CPAs PC

Number and street (or P.O. box number if mail is not delivered to street address)420 COLUMBUS AVENUE   Room/suite
City or town, state, and ZIP code
VALHALLA, NY10595
A Employer identification number

13-6085929
B Telephone number (see instructions)

(914) 769-5005
C bullet
G Check all that apply:

D 1. bullet
2. bullet
H Check type of organization:
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$120,094,806J 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 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 448 448  
4 Dividends and interest from securities...... 2,602,128 2,602,128  
5a Gross rents.............. 722,803 722,803  
b Net rental income or (loss) 28,624
6a Net gain or (loss) from sale of assets not on line 10 4,242,282
b Gross sales price for all assets on line 6a 13,804,831
7 Capital gain net income (from Part IV, line 2)... 4,242,282
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).......      
12 Total. Add lines 1 through 11........ 7,567,661 7,567,661  
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 50,000 25,000   25,000
14 Other employee salaries and wages......        
15 Pension plans, employee benefits....... 3,585 1,792   1,802
16a Legal fees (attach schedule)......... Click to see attachment 37,720 18,860   26,154
b Accounting fees (attach schedule)....... Click to see attachment 126,530 12,653   113,917
c Other professional fees (attach schedule).... Click to see attachment 740,505 740,505   30,000
17 Interest...............        
18 Taxes (attach schedule) (see instructions) Click to see attachment 321,660 29,192    
19 Depreciation (attach schedule) and depletion... Click to see attachment 8,605    
20 Occupancy..............        
21 Travel, conferences, and meetings.......        
22 Printing and publications..........        
23 Other expenses (attach schedule)....... Click to see list of attachments 701,746 697,228   4,172
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 1,990,351 1,525,230   201,045
25 Contributions, gifts, grants paid........ 5,043,198 4,850,190
26 Total expenses and disbursements. Add lines 24 and 25 7,033,549 1,525,230   5,051,235
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements 534,112
b Net investment income (if negative, enter -0-) 6,042,431
c Adjusted net income (if negative, enter -0-)...  
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 11289X Form 990-PF (2012)
Form 990-PF (2012)
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............... 106,193 67,254 67,254
2 Savings and temporary cash investments.......... 6,298,597 10,231,340 10,231,340
3 Accounts receivable bullet132,784
Less: allowance for doubtful accounts bullet   107,033 132,784 132,784
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........... 6,488 28,791 28,791
10a Investments—U.S. and state government obligations (attach schedule)      
b Investments—corporate stock (attach schedule)........ 60,035,468 Click to see attachment64,904,847 64,904,847
c Investments—corporate bonds (attach schedule)........ 23,448,723 Click to see attachment23,729,790 23,729,790
11 Investments—land, buildings, and equipment: basis bullet1,908,737
Less: accumulated depreciation (attach schedule) bullet1,103,459 362,304 Click to see attachment805,278 21,000,000
12 Investments—mortgage loans..............      
13 Investments—other (attach schedule)...........      
14 Land, buildings, and equipment: basis bullet14,640
Less: accumulated depreciation (attach schedule) bullet14,640      
15 Other assets (describe bullet) Click to see attachment48,775    
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 90,413,581 99,900,084 120,094,806
Liabilities 17 Accounts payable and accrued expenses.......... 1,022,153 1,205,823
18 Grants payable................... 2,906,857 3,089,865
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) Click to see attachment58,919,230 Click to see attachment64,052,589
23 Total liabilities (add lines 17 through 22).......... 62,848,240 68,348,277
Net Assets or Fund Balances bullet
and complete lines 24 through 26 and lines 30 and 31.
24 Unrestricted.................... 27,565,341 31,551,807
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    
30 Total net assets or fund balances (see page 17 of the
instructions).................... 27,565,341 31,551,807
31 Total liabilities and net assets/fund balances (see page 17 of
the instructions).................. 90,413,581 99,900,084
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 27,565,341
2 Enter amount from Part I, line 27a..................... 2 534,112
3 Other increases not included in line 2 (itemize) bulletClick to see attachment 3 8,573,984
4 Add lines 1, 2, and 3.......................... 4 36,673,437
5 Decreases not included in line 2 (itemize) bulletClick to see attachment 5 5,121,630
6 Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 30. 6 31,551,807
Form 990-PF (2012)
Form 990-PF (2012)
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.)
1a
b
c
d
e
(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
b
c
d
e
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
b
c
d
e
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 4,242,282
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 instructions). If (loss), enter -0-
in Part I, line 8 . . . . . . . . . . . . . . . . 		Bracket 3 4,242,282
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))
2011 5,440,297 88,327,794 0.06159
2010 5,032,261 81,657,593 0.06163
2009 4,834,392 72,036,161 0.06711
2008 15,765,007 94,984,184 0.16598
2007 5,318,950 113,146,209 0.04701
2 Total of line 1, column (d) ...................... 2 0.40331
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 0.08066
4 Enter the net value of noncharitable-use assets for 2012 from Part X, line 5..... 4 92,962,827
5 Multiply line 4 by line 3....................... 5 7,498,661
6 Enter 1% of net investment income (1% of Part I, line 27b)........... 6 60,424
7 Add lines 5 and 6......................... 7 7,559,085
8 Enter qualifying distributions from Part XII, line 4.............. 8 5,454,039
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.
Form 990-PF (2012)
Form 990-PF (2012)
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 1 120,849
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............................ 3 120,849
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- ..... 5 120,849
6 Credits/Payments:
a 2012 estimated tax payments and 2011 overpayment credited to 2012 6a 93,147
b Exempt foreign organizations—tax withheld at source....... 6b
c Tax paid with application for extension of time to file (Form 8868) 6c 25,000
d Backup withholding erroneously withheld ........... 6d  
7 Total credits and payments. Add lines 6a through 6d.............. 7 118,147
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. Click to see attachment 8 832
9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......Bullet 9 3,534
10 Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...Bullet 10  
11 Enter the amount of line 10 to be: Credited to 2013 estimated taxBullet   Refunded Bullet 11  
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
 
No
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 instructions)
    bulletNY
    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 2012 or the taxable year beginning in 2012 (see instructions for Part XIV)?
    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 instructions) .............
    11
     
    No
    12
    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).................
    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 ofbulletLEONARD J BENCIVENGA CPA Telephone no.bullet (914) 769-5005
    Located atbullet420 COLUMBUS AVENUE SUITE 304VALHALLANY ZIP+4bullet105951382
    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 2012, 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
     
    No
    See 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 (2012)
    Form 990-PF (2012)
    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 2012?.............
    1c
     
    No
    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 2012, did the foundation have any undistributed income (lines 6d
    and 6e, Part XIII) for tax year(s) beginning before 2012?...............
    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 instructions.) ..............
    2b
     
    No
    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 2012 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 2012.)....................
    3b
     
    No
    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 2012?
    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 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 instructions)? ......
    5b
    Yes
     
    .........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
     
    No
    Form 990-PF (2012)
    Form 990-PF (2012)
    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 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
    GEORGE J GILLESPIE III Director
    1.00     		0    
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    DANIEL L MOSLEY TREAS&SEC/DIR
    1.00     		0    
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    WILLIAM C PALEY VICE PRES/DIR
    1.00     		0    
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    HENRY A KISSINGER CHAIRMAN/DIR
    1.00     		0    
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    PATRICK S GALLAGHER Executive Direc
    5.00     		50,000    
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    2 Compensation of five highest-paid employees (other than those included on line 1—see 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 instructions). If none, enter "NONE".
    (a) Name and address of each person paid more than $50,000 (b) Type of service (c) Compensation
    TWEEDY BROWNE CO ADVISORY & CUSTODY 210,735
    350 PARK AVENUE
    NEW YORK,NY10022
    GRANT THORNTON LLP AUDIT 51,075
    33570 TREASURY CENTER
    CHICAGO,IL60694
    BENCIVENGA WARD & COMPANY CPAS ACCOUNTING & TAX 75,613
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595
    CRAVATH SWAINE & MOOR LLP LEGAL 106,529
    WORLDWIDE PLAZA 825 EIGHTH AVENUE
    NEW YORK,NY10019
    RUANE CUNNIFF & CO ADVISORY & CUSTODY 456,852
    767 FIFTH AVENUE
    NEW YORK,NY10153
    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 (2012)
    Form 990-PF (2012)
    Page 7
    Part IX-B
    Summary of Program-Related Investments (see instructions)
    Describe the two largest program-related investments made by the foundation during the tax year on lines 1 and 2. Amount
    1  
    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 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
    94,075,508
    b
    Average of monthly cash balances.......................
    1b
    302,997
    c
    Fair market value of all other assets (see instructions)................
    1c
    0
    d
    Total (add lines 1a, b, and c).........................
    1d
    94,378,505
    e
    Reduction claimed for blockage or other factors reported on lines 1a and
    1c (attach detailed explanation) .............
    1e
    0
    2
    Acquisition indebtedness applicable to line 1 assets..................
    2
     
    3
    Subtract line 2 from line 1d.........................
    3
    94,378,505
    4
    Cash deemed held for charitable activities. Enter 1 1⁄2% of line 3 (for greater amount, see
    instructions) .............................
    4
    1,415,678
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    92,962,827
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    4,648,141
    Part XI
    Distributable Amount bullet and do not complete this part.)
    1
    Minimum investment return from Part X, line 6....................
    1
    4,648,141
    2a
    Tax on investment income for 2012 from Part VI, line 5......
    2a
    120,849
    b
    Income tax for 2012. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    120,849
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    4,527,292
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    4,527,292
    6
    Deduction from distributable amount (see instructions).................
    6
     
    7
    Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII,
    line 1................................
    7
    4,527,292
    Part XII
    Qualifying Distributions (see 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
    5,051,235
    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
    402,804
    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
    5,454,039
    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).................
    5
     
    6
    Adjusted qualifying distributions. Subtract line 5 from line 4..............
    6
    5,454,039
    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 (2012)
    Form 990-PF (2012)
    Page 8
    Part XIII
    Undistributed Income (see instructions)
    (a)
    Corpus     		(b)
    Years prior to 2011     		(c)
    2011     		(d)
    2012
    1 Distributable amount for 2012 from Part XI, line 7 4,527,292
    2 Undistributed income, if any, as of the end of 2012:
    a Enter amount for 2011 only.......  
    b Total for prior years:20, 20, 20  
    3 Excess distributions carryover, if any, to 2012:
    a From 2007.......  
    b From 2008....... 11,143,388
    c From 2009....... 1,271,705
    d From 2010....... 1,062,371
    e From 2011....... 1,092,188
    fTotal of lines 3a through e......... 14,569,652
    4Qualifying distributions for 2012 from Part
    XII, line 4: bullet$ 5,454,039
    a Applied to 2011, 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).........     		0
    d Applied to 2012 distributable amount..... 4,527,292
    e Remaining amount distributed out of corpus 926,747
    5 Excess distributions carryover applied to 2012.    
    (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 15,496,399
    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 2011. Subtract line
    4a from line 2a. Taxable amount—see
    instructions .............     		 
    f Undistributed income for 2012. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2013 ..........     		0
    7 Amounts treated as distributions out of
    corpus to satisfy requirements imposed by
    section 170(b)(1)(F) or 4942(g)(3) (see
    instructions) .............     		 
    8Excess distributions carryover from 2007 not
    applied on line 5 or line 7 (see instructions) ...     		 
    9Excess distributions carryover to 2013.
    Subtract lines 7 and 8 from line 6a ......     		15,496,399
    10 Analysis of line 9:
    a Excess from 2008.... 11,143,388
    b Excess from 2009.... 1,271,705
    c Excess from 2010.... 1,062,371
    d Excess from 2011.... 1,092,188
    e Excess from 2012.... 926,747
    Form 990-PF (2012)
    Form 990-PF (2012)
    Page 9
    Part XIV
    Private Operating Foundations (see 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 2012, 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) 2012 (b) 2011 (c) 2010 (d) 2009
             
    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 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 or e-mail of the person to whom applications should be addressed:
    PATRICK S GALLAGHER
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY105951382
    bThe form in which applications should be submitted and information and materials they should include:
    NO PARTICULAR FORM REQUIRED, BUT FULL FINANCIAL INFORMATION SHOULD BE DISCLOSED.
    cAny submission deadlines:
    NONE
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    UNDER THE PROVISION OF THE FOUNDATION'S CHARTER, NO GRANTS MAY BE MADE TO INDIVIDUALS.
    Form 990-PF (2012)
    Form 990-PF (2012)
    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
    SO OTHERS MAY EAT
    71 O STREET NW
    WASHINGTON,DC20001     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    WEST HILL POND ASSOCIATION
    29 WHITE PINE LANE
    WEST HARTFORD,CT06107     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    UNIVERSITY OF ST JOSEPH
    1678 ASYLUM AVENUE
    WEST HARTFORD,CT06117     		NONE PUBLIC GENERAL OPERATING SUPPORT 2,500
    FRIENDS OF VIRGIN ISLAND NATIONAL P
    PO BOX 811
    ST JOHNS,ST JOHNS00831
    VQ     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    INTERNATIONAL RESCUE COMMITTEE
    122 EAST 42ND STREET 11TH FLOOR
    NEW YORK,NY10168     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 403,127
    DOMUS FOUNDATION
    83 LOCKWOOD AVENUE
    STAMFORD,CT06902     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    COLUMBIA UNIVERSITY
    475 RIVERSIDE DRIVE
    NEW YORK,NY10015     		NONE PUBLIC DEPT OF OPHTHALMOLOGY 5,000
    THELONIOUS MONK INSTITUTE
    5225 WISCONSIN AVENUE NW SUITE 605
    WASHINGTON,DC20015     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    DRUG POLICY ALLIANCE
    925 15TH STREET NW 2ND FLOORT
    WASHINGTON,DC20005     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    BOYS GIRLS CLUB OF GREENWICH
    4 HORSENECK LANE
    GREENWICH,CT06830     		NONE PUBLIC GENERAL OPERATING SUPPORT 10,000
    PORTLAND MUSEUM OF ART
    SEVEN CONGRESS SQUARE
    PORTLAND,ME04101     		NONE PUBLIC ANNUAL FUND 25,000
    JEFFERSON SCHOLARS FOUNDATION
    P O BOX 3446
    CHARLOTTESVILLE,VA22903     		NONE PUBLIC STANLEY G. MORTIMER II SCHOLARSHIP 10,000
    THE CENTER FOR DESIGN STUDY
    400 TRABERT AVENUE
    ATLANTA,GA30309     		NONE PUBLIC SAVE LOU'S WALL 25,000
    DC CENTRAL KITCHEN
    425 2ND STREET NW
    WASHINGTON,DC20001     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    GREENWICH LIBRARY
    101 WEST PUTNAM AVENUE
    GREENWICH,CT06830     		NONE PUBLIC GENERAL OPERATING SUPPORT 2,500
    GREENWICH EMERGENCY MEDICAL SERVICE
    111 EAST PUTNAM
    RIVERSIDE,CT06878     		NONE PUBLIC GENERAL OPERATING SUPPORT 2,500
    NORTHWEST CENTER FOR THE ARTS
    68 MAIN STREET
    TORRINGTON,CT06790     		NONE PUBLIC GENERAL OPERATING SUPPORT 5,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC PALEY TELEVISION FESTIVAL 500,000
    YALE SCHOOL OF MEDICINE
    333 CEDAR STREET
    NEW HAVEN,CT06510     		NONE PUBLIC DYSLEXIA PROGRAM 5,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC DIGITIZATION 47,063
    WASHINGTON PROJECT FOR THE ART
    500 SEVENTEENTH STREET NW
    WASHINGTON,DC20006     		NONE PUBLIC GENERAL PROGRAM 5,000
    OXFORD HOUSE
    1010 WAYNE AVENUE
    SILVER SPRING,MD20910     		NONE PUBLIC GENERAL PROGRAM 5,000
    NATIONAL CTR ON ADDICTION
    633 THIRD AVENUE
    NEW YORK,NY10017     		NONE PUBLIC GENERAL PROGRAM 15,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 1,000,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 2,100,000
    THE MUSEUM OF MODERN ART
    11 WEST 53RD STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 110,000
    THE METROPOLITAN MUSEUM OF ART
    1000 FIFTH AVENUE
    NEW YORK,NY10028     		NONE PUBLIC GENERAL PROGRAM 5,000
    MADISON SQ BOYS GIRLS CLUB
    250 FIFTH AVENUE
    NEW YORK,NY10118     		NONE PUBLIC GENERAL PROGRAM 12,500
    LEGAL ACTION CENTER
    153 WAVERLY PLACE
    NEW YORK,NY10014     		NONE PUBLIC GENERAL PROGRAM 10,000
    THE JERUSALEM FOUNDATION
    60 EAST 42ND STREET
    NEW YORK,NY10165     		NONE PUBLIC PALEY ART CENTER 75,000
    CLEAN SOBER STREETS INC
    P O BOX 77114
    WASHINGTON,DC20013     		NONE PUBLIC GENERAL PROGRAM 5,000
    THE GREENPARK FOUNDATION
    420 COLUMBUS AVENUE SUITE 304
    VALHALLA,NY10595     		COMMON DIRECTORS PRIV PALEY PARK - PROGRAM SUPPORT 425,000
    Total .................................bullet 3a 4,850,190
    bApproved for future payment
    THE METROPOLITIAN MUSEUM OF ART
    1000 FIFTH AVENUE
    NEW YORK,NY10018     		NONE PUBLIC GENERAL PROGRAM 10,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC PCM AWARDS 59,865
    TULANE UNIVERSITY
    218 GIBSON HALL
    NEW ORLEANS,LA70118     		NONE PUBLIC HISTORY PROFESSOR SUPPORT 20,000
    THE MUSEUM OF MODERN ART
    11 WEST 53RD STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL OPERATING SUPPORT 110,000
    THE JERUSALEM FOUNDATION
    60 EAST 42ND STREET
    NEW YORK,NY10165     		NONE PUBLIC PALEY ART CENTER 75,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 300,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC GENERAL PROGRAM 2,000,000
    THE PALEY CENTER FOR MEDIA
    25 WEST 52ND STREET
    NEW YORK,NY10019     		NONE PUBLIC PALEY TELEVISION FESTIVAL 500,000
    JEFFERSON SCHOLARS FOUNDATION
    PO BOX 3446
    CHARLOTTESVILLE,VA22903     		NONE PUBLIC STANLEY G. MORTIMER II SCHOLARSHIP 10,000
    Total .................................bullet 3b 3,084,865
    Form 990-PF (2012)
    Form 990-PF (2012)
    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 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     14 448  
    4 Dividends and interest from securities....     14 2,602,128  
    5 Net rental income or (loss) from real estate:
    aDebt-financed property......          
    bNot debt-financed property.....     16 28,624  
    6Net rental income or (loss) from personal property          
    7 Other investment income.....          
    8Gain or (loss) from sales of assets other than inventory     18 4,242,282  
    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)..   6,873,482  
    13Total. Add line 12, columns (b), (d), and (e)..................
    136,873,482
    (See worksheet in line 13 instructions 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 foundation’s exempt purposes (other than by providing funds for such purposes). (See
    instructions.)
    Form 990-PF (2012)
    Form 990-PF (2012)
    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
    Sign Here
    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
    May the IRS discuss this return
    with the preparer shown below
    (see instr.)?
    Signature of officer or trustee Date Title
    Paid Preparer Use Only Print/Type preparer's name Preparer's Signature Date PTIN
    Firm's namebullet



    Firm's addressbullet







         		Firm's EINbullet
    Phone no.
    Form 990-PF (2012)
    Additional Data


    Software ID: 12000229
    Software Version: 2012v2.0


    Form 990PF - Special Condition Description:
    Special Condition Description

    TY 2012 AccountingFeesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    TAX & ACCOUNTING 80,930 8,093 0 72,877
    AUDIT 45,600 4,560 0 41,040

    TY 2012 ContractorCompensationExpln
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Contractor Explanation
    TWEEDY BROWNE CO  
    RUANE CUNNIFF & CO  
    GRANT THORNTON LLP  
    CRAVATH SWAINE & MOOR LLP  
    BENCIVENGA WARD & COMPANY CPAS  

    Note: To capture the full content of this document, please select landscape mode (11" x 8.5") when printing.

    TY 2012 DepreciationSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Description of Property Date Acquired Cost or Other Basis Prior Years' Depreciation Computation Method Rate /
    Life (# of years)    		 Current Year's Depreciation Expense Net Investment Income Adjusted Net Income Cost of Goods Sold Not Included
    LOCAL LAW 11 IMPROVEMENTS 2012-07-01 96,081   91 30.0000 1,601      
    ELEVATOR IMPROVEMENTS 2012-10-01 355,498   91 30.0000 2,962      
    CARPETING 5TH FLOOR 2009-09-02 2,812 938 91 7.0000 402      
    BUILDING IMPROVEMENTS 2008-07-01 3,035 1,519 91 7.0000 434      
    PHOTOLUMINESCE 2006-05-31 10,798 7,715 91 7.0000 1,543      
    ARCHITECT 2006-09-28 7,655 7,272 91 5.0000 383      
    ARCHITECT 2006-05-31 2,500 2,208 91 5.0000 292      
    BUILIDING IMPROVEMENTS 2006-09-28 29,650 4,940 91 30.0000 988      

    TY 2012 GeneralExplanationAttachment
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Identifier Return Reference Explanation
        STATEMENT 19FORM 990PF, PART VII-B, LINE 5CEXEMPTION FROM TAX ON TAXABLE EXPENDITURESDuring 2012, the Foundation made a grant of $425,000 to The Greenpark Foundation, Inc. (Greenpark, Federal ID# 13-6155738). Greenpark is a private operating foundation and has as its sole purpose the ownership, operation, and maintenance of a park open to the public. The officers and directors of Greenpark are also officers/directors of the Foundation. As such they are under common control.During 2012, Greenpark used the grant paid to it by the Foundation for the operation and maintenance of the park. In addition, Greenpark treated none of the grant as a qualifying distribution on its tax return for 2012 (Form 990PF), thereby allowing the grant of $425,000 to be treated as a qualifying distribution by the Foundation.Due to the common control of Greenpark and the foundation, the foundation has not formalized pre-grant and post-grant letters. It believes the Requirements of IRS Reg. 53.4945-5(d) are satisfied by the indicia of common control of the grantor and grantee.
        STATEMENT 18FORM 990PF, PART II, LINE 22OTHER LIABILITIESFUNDS HELD FOR THE BENEFITS OF OTHERSTHE PALEY CENTER FOR MEDIA25 WEST 52ND STREETNEW YORK, NY 10019 $48,659,515THE GREENPARK FOUNDATION, INCC/O BENCIVENGA WARD & COMPANY, CPAS, PC420 COLUMBUS AVENUE, SUITE 304VALHALLA, NY 10595 $15,359,375TOTAL $64,018,890

    TY 2012 InvestmentsCorpBondsSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Name of Bond End of Year Book Value End of Year Fair Market Value
    JPM CORE BOND FD - SEL 151,381 151,381
    VANGUARD FI SEC F INTR RFM CP PRT 45,754 45,754
    RIDGEWORTH INTERMEDIATE BOND FUND 1,089,229 1,089,229
    PIMCO TOTAL RETURN FUND 309,329 309,329
    JP MORGAN TOTAL RETURN FUND 5,198,067 5,198,067
    JP MORGAN STRATEGIC INCOME 1,095,804 1,095,804
    JP MORGAN HIGH YIELD BOND FUND 845,719 845,719
    HARBOR HIGH YIELD BOND FUND 433,522 433,522
    EATON VANCE MUTUAL FUNDS 663,854 663,854
    JP MORGAN SHORT TERM BOND FUND 2,045,187 2,045,187
    TWEEDY BROWNE GLOBAL VALUE FUND 11,851,944 11,851,944

    TY 2012 InvestmentsCorpStockSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Name of Stock End of Year Book Value End of Year Fair Market Value
    TIFFANY & CO 281,998 281,998
    PIRELLI & C SPA 1,387,162 1,387,162
    PHILLIPS 66 222,170 222,170
    NOVOZYMES A/S-B SHARES 334,378 334,378
    JACOBS ENGINEERING GROUP INC 279,557 279,557
    HSBC HOLDINGS PLC 259,937 259,937
    HALLIBURTON CO 334,585 334,585
    CORNING INC    
    WATERS CORP 481,948 481,948
    TRIMBLE NAVIGATION LTD 42,683 42,683
    TOTAL SA 557,547 557,547
    SMA SOLAR TECHNOLOGY AG 4,261 4,261
    WORLD FUEL SERVICE CORP 623,231 623,231
    WELLS FARGO 964,901 964,901
    VISA INC 772,300 772,300
    VALENT PHARAMACEUTICALS 8,340,605 8,340,605
    PERRIGO CO 685,038 685,038
    INTERNATIONAL BUSINESS MACHINES 1,163,283 1,163,283
    HISCOX LTD 578,419 578,419
    GOOGLE INC 1,506,719 1,506,719
    GOLDMAN SACHS GROUP INC 719,949 719,949
    CRODA INTERNATIONAL PLC 586,010 586,010
    COSTCO WHOLESALE CORP 992,237 992,237
    BAXTER INTERNATIONAL 495,950 495,950
    BANK OF NEW YORK MELLON CORP 684,520 684,520
    QINETIQ GROUP PLC 865,830 865,830
    CANADIAN NATURAL RESOURCES LTD 74,138 74,138
    MASTERCARD INC 46,672 46,672
    IMI PLC 508,953 508,953
    PRECISION CASTPARTS CORP 2,390,480 2,390,480
    PRAXAIR INC 666,441 666,441
    PHILIP MORRIS INTERNATIONAL    
    OMNICOM GROUP INC 611,660 611,660
    JOHNSON & JOHNSON 956,865 956,865
    BECTON DICKINSON & CO    
    ADVANCED AUTO PARTS, INC 1,843,044 1,843,044
    HENRY SCHEIN INC 85,647 85,647
    3M CO 458,679 458,679
    IFI-ISTITUTO FINANZIARIO IND 1,578 1,578
    UNION PACIFIC CORP 743,005 743,005
    RICHIE BROTHERS AUCTIONEERS INC 281,869 281,869
    EMERSON ELECTRIC CO 314,318 314,318
    DEVON ENERGY CORP 550,843 550,843
    FIRST SOLAR INC 15,150 15,150
    CONOCO PHILLIPS 485,376 485,376
    AVATAR HOLDINGS INC    
    EXOR SPA 11,254 11,254
    ROLLS ROYCE GROUP PLC 1,987,824 1,987,824
    NORFOLK SOUTHERN CORP 66,169 66,169
    EXOR RSP 883 883
    EMCOR GROUP INC 222,335 222,335
    UNIFIRST CORP 608,409 608,409
    COCA COLA FEMSE    
    TARGET    
    CISCO SYSTEMS INC 361,640 361,640
    AMPHENOL CORP    
    WAL MART STORES INC 398,259 398,259
    UNILEVER N V 800,393 800,393
    UNILEVER PLC A/D/R 116,160 116,160
    TJX COMPANIES INC 5,217,105 5,217,105
    NOVARTIS A G A/D/R 1,059,579 1,059,579
    NESTLE S A A/D/R 1,171,495 1,171,495
    NATIONAL WESTERN LIFE INSURANCE 289,768 289,768
    MOHAWK INDUSTRIES 973,186 973,186
    IDEXX LABORATORIES, INC 1,745,846 1,745,846
    HEINEKEN N V 896,554 896,554
    GLAXOSMITHKLINE PLC 244,301 244,301
    FASTENAL CORP 3,357,914 3,357,914
    DIAGEO PLC 1,139,803 1,139,803
    DANAHER CORP 1,319,240 1,319,240
    SIRONA DENTAL SYSTEMS INC 157,927 157,927
    COMCAST CORP 579,677 579,677
    COCA COLA CO. 406,000 406,000
    BROWN & BROWN, INC 359,113 359,113
    BERKSHIRE HATHAWAY, INC 5,818,973 5,818,973
    AMERICAN NATIONAL INSURANCE COMPANY 112,064 112,064
    AMERICAN EXPRESS CO 1,955,125 1,955,125
    AKZO NOBEL N V A/D/R 327,915 327,915

    TY 2012 InvestmentsLandSchedule2
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category/ Item Cost/Other Basis Accumulated Depreciation Book Value End of Year Fair Market Value
    Miscellaneous 10,155 10,155    
    Land 330,446   330,446 20,525,168
    Improvements 1,177,883 704,591 473,292 473,292
    Buildings 379,455 379,455    
    Furniture and Fixtures 10,798 9,258 1,540 1,540

    TY 2012 LandEtcSchedule2
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category / Item Cost / Other Basis Accumulated Depreciation Book Value End of Year Fair Market Value
    Machinery and Equipment 14,640 14,640    


    TY 2012 LegalFeesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    ADMINISTRATION 37,720 18,860 0 26,154


    TY 2012 OtherDecreasesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Description Amount
    NET CHANGE FOR PALEY CENTER FOR MEDIA ENDOWMENT 3,429,210
    NET CHANGE FOR GREENPARK ENDOWMENT 1,692,420


    TY 2012 OtherExpensesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    Rental Expenses 694,179 694,179    
    PAYROLL PROCESSING FEES 720      
    OFFICE SUPPLIES & OTHER EXP 4,173 2,087   2,460
    GENERAL INSURANCE 1,924 962   962
    FILING FEES 750     750


    TY 2012 OtherLiabilitiesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Description Beginning of Year - Book Value End of Year - Book Value
    SEE STATEMENT #18 58,897,261 64,018,890
    SECURITY DEPOSITS 21,969 33,699


    TY 2012 OtherProfessionalFeesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    FOREIGN EXCHANGE 478 478 0 0
    CUSTODY FEES 740,027 740,027 0 0
    ADMINISTRATION   0 0 30,000


    TY 2012 TaxesSchedule
    Name:
    WILLIAM S PALEY FOUNDATION INC
    co BENCIVENGA WARD & COMPANY CPAs PC
    EIN: 13-6085929
    Software ID:12000229
    Software Version:2012v2.0
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    FOREIGN TAXES 29,192 29,192    
    EXCISE TAX - DEFERRED 171,480      
    EXCISE TAX - CURRENT 120,988