Form990-PF

Department of the Treasury
Internal Revenue Service

Return of Private Foundation
or Section 4947(a)(1) Trust Treated as Private Foundation
bulletDo not enter social security numbers on this form as it may be made public.
bulletInformation about Form 990-PF and its instructions is at www.irs.gov/form990pf.
OMB No. 1545-0052
2015
Open to Public Inspection
For calendar year 2015, or tax year beginning 01-01-2015 , and ending 12-31-2015
Name of foundation
Kully Family Foundation
 
% Foundation Source
Number and street (or P.O. box number if mail is not delivered to street address)Foundation Source 501 Silverside Rd
  Room/suite
City or town, state or province, country, and ZIP or foreign postal code
Wilmington, DE198091377
A Employer identification number

45-4027161
B Telephone number (see instructions)

(800) 839-1754
C bullet
G Check all that apply:

D 1. bullet
2. bullet
E bullet
H Check type of organization:
F bullet
I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16)bullet$9,749,084J Accounting method:
 
(Part I, column (d) must be on cash basis.)
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) 0
2 Check bullet Sch. B .............
3 Interest on savings and temporary cash investments 159 159  
4 Dividends and interest from securities... 255,341 255,341  
5a Gross rents............      
b Net rental income or (loss)  
6a Net gain or (loss) from sale of assets not on line 10 65,575
b Gross sales price for all assets on line 6a 2,921,978
7 Capital gain net income (from Part IV, line 2)... 65,575
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........ 321,075 321,075  
Operating and Administrative Expenses 13 Compensation of officers, directors, trustees, etc. 0      
14 Other employee salaries and wages......        
15 Pension plans, employee benefits.......        
16a Legal fees (attach schedule).........        
b Accounting fees (attach schedule).......        
c Other professional fees (attach schedule).... Click to see attachment 80,325 80,325    
17 Interest...............        
18 Taxes (attach schedule) (see instructions)... Click to see attachment 7,209 1,150    
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 30,611 83   30,528
24 Total operating and administrative expenses.
Add lines 13 through 23.......... 118,145 81,558   30,528
25 Contributions, gifts, grants paid....... 0 0
26 Total expenses and disbursements. Add lines 24 and 25 118,145 81,558   30,528
27 Subtract line 26 from line 12:
a Excess of revenue over expenses and disbursements 202,930
b Net investment income (if negative, enter -0-) 239,517
c Adjusted net income (if negative, enter -0-)...  
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 11289X Form 990-PF (2015)
Form 990-PF (2015)
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......... 429,958 654,666 654,666
3 Accounts receivable bullet  
Less: allowance for doubtful accounts bullet   2,571    
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 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) 75,996    
b Investments—corporate stock (attach schedule)....... 6,741,780 Click to see attachment6,551,186 6,409,918
c Investments—corporate bonds (attach schedule)....... 1,216,398 Click to see attachment1,444,236 1,381,810
11 Investments—land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
12 Investments—mortgage loans.............      
13 Investments—other (attach schedule).......... 1,391,817 Click to see attachment1,411,362 1,302,690
14 Land, buildings, and equipment: basis bullet  
Less: accumulated depreciation (attach schedule) bullet        
15 Other assets (describe bullet)      
16 Total assets (to be completed by all filers—see the
instructions. Also, see page 1, item I) 9,858,520 10,061,450 9,749,084
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 9,858,520 10,061,450
30 Total net assets or fund balances (see instructions)..... 9,858,520 10,061,450
31 Total liabilities and net assets/fund balances (see instructions). 9,858,520 10,061,450
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
9,858,520
2
Enter amount from Part I, line 27a .....................
2
202,930
3
Other increases not included in line 2 (itemize) bullet
3
 
4
Add lines 1, 2, and 3 ..........................
4
10,061,450
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
10,061,450
Form 990-PF (2015)
Form 990-PF (2015)
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 Publicly-traded Securities      
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 2,921,978   2,856,403 65,575
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       65,575
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 65,575
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  
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 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))
2014 1,518,427 5,000,871 0.303633
2013 1,009,195 753,067 1.340113
2012 56,615 70,881 0.798733
2011 115,000 35,000 3.285714
2010 0 0 0.0
2
Total of line 1, column (d) .....................
25.728193
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
1.432048
4
Enter the net value of noncharitable-use assets for 2015 from Part X, line 5.....
4
9,850,871
5
Multiply line 4 by line 3......................
5
14,106,920
6
Enter 1% of net investment income (1% of Part I, line 27b)...........
6
2,395
7
Add lines 5 and 6........................
7
14,109,315
8
Enter qualifying distributions from Part XII, line 4.............
8
30,528
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 (2015)
Form 990-PF (2015)
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 Bullet and enter “N/A" on line 1. Bracket
Date of ruling or determination letter:   (attach copy of letter if necessary–see instructions)
b 1 4,790
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 4,790
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 4,790
6 Credits/Payments:
a 2015 estimated tax payments and 2014 overpayment credited to 2015 6a 2,689
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 2,689
8 Enter any penalty for underpayment of estimated tax. if Form 2220 is attached. Click to see attachment 8  
9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......Bullet 9 2,101
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 2015 estimated taxBullet   RefundedBullet 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 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 instructions)
    bulletIL
    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 2015 or the taxable year beginning in 2015 (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
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 5
    Part VII-A
    Statements Regarding Activities (continued)
    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 addressbullet  
    14
    The books are in care ofbulletFoundation Source Telephone no.bullet (800) 839-1754

    Located atbullet501 Silverside Road Suite 123WilmingtonDE ZIP+4bullet198091377
    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 2015, did the foundation have an interest in or a signature or other authority over YesNo
    a bank, securities, or other financial account in a foreign country?
    16   No
    See instructions for exceptions and filing requirements for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR). If "Yes", enter the name of the foreign country bullet  
    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 instructions)? ........
    1b
     
     
    ........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 2015?.............
    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 2015, did the foundation have any undistributed income (lines 6d
    and 6e, Part XIII) for tax year(s) beginning before 2015?.............
    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
     
     
    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 2015 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 2015.)..................
    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 2015?
    4b
     
    No
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 6
    Part VII-B
    Statements Regarding Activities for Which Form 4720 May Be Required (Continued)
    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 4945(d)(4)(A)? (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
     
     
    .........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 (2015)
    Form 990-PF (2015)
    Page 7
    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
    Deborah G Kully Dir / Sec
    1.0     		0 0 0
    Foundation Source 501 Silverside Rd
    Wilmington,DE198091377
    Jonathan Kully Pres / Dir / Treas
    1.0     		0 0 0
    Foundation Source 501 Silverside Rd
    Wilmington,DE198091377
    Sandra Kully VP / Dir
    1.0     		0 0 0
    Foundation Source 501 Silverside Rd
    Wilmington,DE198091377
    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
     
    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
    UBS Financial Services Investment MGT 65,034
    299 Park Avenue 25th Floor
    NEW YORK,NY10171
    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  
    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 instructions.
    3  
    Total. Add lines 1 through 3.........................bullet  
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 8
    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
    8,494,807
    b
    Average of monthly cash balances.......................
    1b
    216,528
    c
    Fair market value of all other assets (see instructions)................
    1c
    1,289,549
    d
    Total (add lines 1a, b, and c).........................
    1d
    10,000,884
    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
    0
    3
    Subtract line 2 from line 1d.........................
    3
    10,000,884
    4
    Cash deemed held for charitable activities. Enter 1 1/2% of line 3 (for greater amount, see
    instructions) .............................
    4
    150,013
    5
    Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4
    5
    9,850,871
    6
    Minimum investment return. Enter 5% of line 5..................
    6
    492,544
    Part XI
    Distributable Amount bullet
    1
    Minimum investment return from Part X, line 6....................
    1
    492,544
    2a
    Tax on investment income for 2015 from Part VI, line 5......
    2a
    4,790
    b
    Income tax for 2015. (This does not include the tax from Part VI.)...
    2b
     
    c
    Add lines 2a and 2b............................
    2c
    4,790
    3
    Distributable amount before adjustments. Subtract line 2c from line 1............
    3
    487,754
    4
    Recoveries of amounts treated as qualifying distributions................
    4
     
    5
    Add lines 3 and 4............................
    5
    487,754
    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
    487,754
    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
    30,528
    b
    Program-related investments—total from Part IX-B..................
    1b
    0
    2
    Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,
    purposes...............................
    2
    0
    3
    Amounts set aside for specific charitable projects that satisfy the:
    a
    Suitability test (prior IRS approval required)....................
    3a
    0
    b
    Cash distribution test (attach the required schedule) .................
    3b
    0
    4
    Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4
    4
    30,528
    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
    30,528
    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 (2015)
    Form 990-PF (2015)
    Page 9
    Part XIII
    Undistributed Income (see instructions)
    (a)
    Corpus     		(b)
    Years prior to 2014     		(c)
    2014     		(d)
    2015
    1 Distributable amount for 2015 from Part XI, line 7 487,754
    2 Undistributed income, if any, as of the end of 2015:
    a Enter amount for 2014 only.......  
    b Total for prior years:2013, 2012, 2011  
    3 Excess distributions carryover, if any, to 2015:
    a From 2010......  
    b From 2011...... 113,250
    c From 2012...... 53,071
    d From 2013...... 971,652
    e From 2014...... 1,271,953
    fTotal of lines 3a through e........ 2,409,926
    4Qualifying distributions for 2015 from Part
    XII, line 4: bullet$ 30,528
    a Applied to 2014, but not more than line 2a  
    b Applied to undistributed income of prior years
    (Election required—see instructions).....     		 
    c Treated as distributions out of corpus (Election
    required—see instructions)........     		 
    d Applied to 2015 distributable amount..... 30,528
    e Remaining amount distributed out of corpus 0
    5 Excess distributions carryover applied to 2015. 457,226 457,226
    (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 1,952,700
    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 2014. Subtract line
    4a from line 2a. Taxable amount—see
    instructions .............     		 
    f Undistributed income for 2016. Subtract
    lines 4d and 5 from line 1. This amount must
    be distributed in 2015 ..........     		0
    7 Amounts treated as distributions out of
    corpus to satisfy requirements imposed by
    section 170(b)(1)(F) or 4942(g)(3) (Election may
    be required - see instructions) .......     		 
    8Excess distributions carryover from 2010 not
    applied on line 5 or line 7 (see instructions) ...     		 
    9Excess distributions carryover to 2016.
    Subtract lines 7 and 8 from line 6a ......     		1,952,700
    10 Analysis of line 9:
    a Excess from 2011....  
    b Excess from 2012....  
    c Excess from 2013.... 680,747
    d Excess from 2014.... 1,271,953
    e Excess from 2015....  
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 10
    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 2015, 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) 2015 (b) 2014 (c) 2013 (d) 2012
             
    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).)
    SANDRA KULLY
    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 email address of the person to whom applications should be addressed:
    bThe form in which applications should be submitted and information and materials they should include:
    cAny submission deadlines:
    dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
    factors:
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 11
    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
    Total .................................bullet 3a  
    bApproved for future payment
    Total .................................bullet 3b  
    Form 990-PF (2015)
    Form 990-PF (2015)
    Page 12
    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....          
    3
    Interest on savings and temporary cash investments ...........     		    14 159  
    4 Dividends and interest from securities....     14 255,341  
    5 Net rental income or (loss) from real estate:
    aDebt-financed property......          
    bNot debt-financed property.....          
    6
    Net rental income or (loss) from personal property     		         
    7 Other investment income.....          
    8
    Gain or (loss) from sales of assets other than inventory ............     		    18 65,575  
    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)..   321,075  
    13Total. Add line 12, columns (b), (d), and (e)..................
    13321,075
    (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 (2015)
    Form 990-PF (2015)
    Page 13
    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 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?
    Yes
    No
    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) 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 name SmallBullet
    		 Firm's EIN SmallBullet
    Firm's address SmallBullet


    		 Phone no.
    Form 990-PF (2015)
    Additional Data


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    Form 990PF - Special Condition Description:
    Special Condition Description

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    TY 2015 DepreciationSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    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

    TY 2015 InvestmentsCorpBondsSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Name of Bond End of Year Book Value End of Year Fair Market Value
    ALCOA INC - 6.150% - 08/15/202 23,420 21,713
    AMERICAN TOWER CORP - 3.400% - 36,149 35,903
    AMERICAN TOWER CORP - 5.050% - 3,278 3,239
    ARROW ELECTRONICS - 5.125% - 0 3,284 3,152
    ARROW ELECTRONICS INC NOTE - 4 35,575 34,350
    AVNET INC - 5.875% - 06/15/202 38,116 36,894
    BLOCK FINANCIAL - 4.125% - 10/ 38,873 39,488
    CA INC - 4.500% - 08/15/2023 39,769 38,447
    CDW LLC/CDW FINANCE - 5.000% - 31,194 31,465
    CENTURYLINK INC - 5.800% - 03/ 30,088 26,579
    CENTURYLINK INC NOTE - 6.450% 4,075 3,900
    CREDIT SUISSE AG LONDON - 0.00 35,000 31,780
    DAVITA INC - 5.750% - 08/15/20 32,008 30,900
    DIRECTV HLDGS LLC/DIRECTV - 3. 39,407 38,447
    DISH DBS CORP SR NT - 7.875% - 32,578 32,625
    DONNELLEY RR & SONS - 7.625% - 32,118 29,943
    DUN & BRADSTREET - 4.000% - 06 25,062 25,348
    DUN & BRADSTREET CORP - 4.375% 12,929 12,725
    EXPEDIA INC DEL - 5.950% - 08/ 38,378 37,098
    FIDELITY NATL INFORMATION SVCS 35,216 35,712
    FISERV INC - 3.500% - 10/01/20 33,228 32,932
    FISERV INC - 4.625% - 10/01/20 3,263 3,204
    GAP INC - 5.950% - 04/12/2021 42,181 39,142
    HCA INC SR SEC NT - 6.500% - 0 38,110 37,043
    HSBC USA INC NT - 20.000% - 08 89,999 83,159
    INTL GAME TECHNOLOGY - 5.000% 38,700 34,200
    JARDEN CORP - 7.500% - 05/01/2 33,000 30,675
    KLA-TENCOR CORP SR GLBL NT - 4 11,194 11,016
    KLA-TENCOR SR GLBL NT - 4.650% 27,757 28,172
    L-3 COMMUNICATIONS CORP - 5.20 38,390 36,002
    LABORATORY CORP - 3.750% - 08/ 38,841 38,246
    LEXMARK INTL - 5.125% - 03/15/ 39,387 38,484
    MASCO CORP - 4.450% - 04/01/20 15,040 14,700
    MASCO CORP NT - 5.950% - 03/15 24,695 23,760
    MORGAN STANLEY SEC XLE - 20.00 54,999 53,982
    RPM INTL - 3.450% - 10/23/2012 12,957 12,464
    RPM INTL NT - 6.500% - 02/15/2 26,790 25,886
    SEAGATE HDD CAYMAN - 4.750% - 42,573 36,762
    SERVICE CORP INTL - 5.375% - 0 11,550 11,468
    SERVICE CORP INTL NT - 5.375% 20,803 20,600
    URS CORP - 5.000% - 04/01/2022 38,760 35,673
    VALMONT INDUSTRIES INC - 6.625 38,092 35,454
    VERISK ANALYTICS - 4.125% - 09 37,360 36,272
    VIACOM INC NOTE - 4.250% - 09/ 39,985 36,738
    WILLIS NORTH AMERICA - 7.000% 38,634 36,984
    XEROX CORP - 2.800% - 05/15/20 4,973 4,768
    XEROX CORPORATION NOTE - 4.500 36,458 34,316

    TY 2015 InvestmentsCorpStockSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Name of Stock End of Year Book Value End of Year Fair Market Value
    ABIOMED 9,340 36,112
    ACCENTURE PLC 26,682 25,916
    ADOBE SYSTEMS, INC 25,775 28,182
    AECOM TECHNOLOGY CORPORATION 13,598 13,243
    AERCAP HOLDING N.V 13,563 14,890
    AETNA INC 13,582 18,813
    AFFILIATED MANAGERS GROUP 28,670 23,964
    AFLAC INC 13,614 14,316
    AIRGAS INC 19,374 27,664
    AKAMAI TECH COM STK 16,291 18,157
    ALIBABA GROUP HOLDING LIMITED 30,631 32,508
    ALPHABET INC CL A 26,035 42,791
    ALPHABET INC CL C 16,737 28,837
    AMAZON COM 19,620 47,312
    AMERIPRISE FINANCIAL INC 27,769 24,370
    AMETEK INC 29,328 29,475
    AMTRUST FINANCIAL SERVICES, IN 13,668 20,445
    ANTHEM INC 13,609 16,175
    APPLE INC 40,796 55,998
    ARRIS GROUP INC 14,764 16,049
    ASSURANT INC 13,620 17,397
    AVAGO TECHNOLOGIES LIMITED 13,634 25,111
    AVIS BUDGET GROUP INC 13,557 9,435
    BECTON DICKINSON & CO 12,042 12,019
    BLACKROCK STRAT INC OPP - INS 655,742 624,340
    BOEING CO 22,753 26,026
    BORG WARNER INC 8,857 8,646
    BRISTOL-MYERS SQUIBB CO 19,642 20,637
    CALLIDUS SOFTWARE, INC 14,063 22,284
    CELANESE CORPORATION 13,653 16,765
    COCA-COLA CO 13,839 13,575
    COGNIZANT TECHNOLOGY SOLUTIONS 9,854 12,004
    COLGATE-PALMOLIVE COMPANY 25,270 25,782
    COMCAST CORP 24,850 26,522
    CORNING INC 13,591 13,545
    COSTAR GROUP, INC 26,692 31,004
    CRANE CO 17,096 13,587
    CVS CAREMARK CORP 10,095 11,928
    DANAHER CORP 9,946 11,982
    DEXCOM, INC 14,909 54,464
    DIAGEO PLC ADS 13,948 13,634
    DOLLAR GENERAL CORP 21,781 21,561
    DOMINION RESOURCES INC 13,878 13,731
    DOUBLELINE TOTAL RETURN BOND 260,908 259,469
    EATON CORP PLC 13,620 11,553
    ECOLAB INC 34,571 34,772
    EOG RESOURCES INC 13,629 10,406
    EXACT SCIENCES CORPORATION 15,803 5,538
    EXAMWORKS GROUP INC 11,685 13,300
    FACEBOOK INC 34,939 54,005
    FLEETMATICS GROUP PLC 19,466 29,560
    GENERAL ELECTRIC CO 42,419 49,840
    GILEAD SCIENCES INC 14,709 27,827
    GOODYEAR TIRE & RUBBER COMPANY 13,572 20,909
    GUIDEWIRE SOFTWARE INC 15,121 24,064
    HERTZ GLOBAL HOLDINGS INC 13,513 8,808
    HILTON HOTELS CORP 14,822 11,770
    HOME DEPOT INC 49,591 68,770
    HONEYWELL INTL 11,572 12,014
    IDEXX CORP 14,980 24,064
    ILLINOIS TOOL WORKS 23,096 25,394
    INPHI CORPORATION 2,554 3,702
    INTEL CORP 12,489 13,504
    INTERCONTINENTAL EXCHANGE, INC 10,135 12,300
    INTERSECT ENT INC 15,091 11,250
    INVESCO PLC 28,381 26,349
    ISHARES RUSSELL 2000 54,767 53,495
    ISHARES TR S & P MIDCAP 400 IN 107,324 106,162
    ISHARES TRUST MSCI EAFE INDEX 29,860 29,947
    JOHNSON CONTROLS INC 29,921 25,984
    LEXMARK INTL INC 13,594 10,773
    LIBERTY INTERACTIVE CORPORATIO 11,632 13,332
    LIGAND PHARMACEUTICALS INCORPO 13,562 16,263
    LKQ CORPORATION 21,798 24,889
    MARSH AND MCLENNAN COMPANIES I 13,454 13,807
    MAXLINEAR INC 17,900 25,041
    MCDONALD'S CORP 13,089 13,704
    MCKESSON CORP 11,979 12,031
    MEDTRONIC PLC 49,050 48,690
    MICROSOFT CORP 10,863 13,704
    MOBILEYE NV 13,184 12,684
    MONOLITHIC POWER SYSTEMS, INC 10,247 12,742
    MRC GLOBAL INC 13,553 8,269
    MYLAN NV 11,608 12,004
    NATIXIS OAKMARK INTERNATIONAL 524,839 475,920
    NATL OILWELL VARCO 13,556 6,330
    NCR CP 13,571 10,860
    NEXTERA ENERGY, INC 12,656 13,817
    NIKE INC-CL B 25,838 25,000
    NORDSTROM INC 17,314 13,449
    NOVADAQ TECHNOLOGIES INC 20,748 20,384
    NOVARTIS AG ADR 14,126 13,680
    NXSTAGE MEDICAL, INC 10,253 10,955
    O'REILLY AUTOMOTIVE INC 7,923 12,164
    OCCIDENTAL PETROLEUM CORP 15,876 13,522
    OWENS ILLINOIS 13,596 9,320
    PANDORA MEDIA INC 17,265 13,410
    PAREXEL INTERNATIONAL CORPORAT 12,645 12,262
    PEPSICO INC 13,284 13,689
    PORTFOLIO RECOVERY ASSOCIATES, 23,731 13,876
    PROTO LABS INC 23,135 22,292
    RAYTHEON CO 13,678 17,434
    RED HAT, INC 37,797 53,661
    ROBECO BOSTON PARTNERS LONG SH 630,843 631,438
    ROCKWELL AUTOMATION INC 26,856 25,550
    ROCKWELL COLLINS INC 10,356 12,091
    SALESFORCE.COM 22,680 31,360
    SCHLUMBERGER LTD 51,122 34,457
    SQUARE INC 13,151 16,677
    STARBUCKS CORP COM 36,347 63,092
    SUNCOR ENERGY INC 13,570 10,320
    SYMANTEC CORP 13,630 12,495
    TE CONNECTIVITY LTD 13,592 16,153
    TEMPLETON GLOBAL BD 322,885 283,514
    TENNECO INC 15,307 11,983
    TEXAS INSTRUMENTS INC 12,467 13,264
    THERMO FISHER SCIENTIFIC INC 11,462 12,199
    THIRD AVENUE FOCUSED CREDIT FU 654,162 363,153
    THORNBURG INTERNATIONAL GROWTH 263,512 267,608
    TIME WARNER INC 13,066 12,093
    TJX COMPANIES INC 10,804 12,126
    TORONTO DOMINION 15,475 13,631
    TRIMBLE NAV LTD 22,244 21,450
    UNION PACIFIC 36,764 29,325
    UNITED PARCEL SERVICE 20,771 19,246
    UNITED TECHNOLOGIES CORP 27,108 25,747
    V F CORP 14,354 13,820
    VERISK ANALYTICS, INC 24,713 30,752
    WELLS FARGO ADVTG ABSLT RETURN 631,597 568,926
    WESTERN DIGITAL CORP 13,532 8,947
    WESTERN UNION CO 13,636 15,170
    WILLIAM BLAIR GLOBAL SMALL CAP 112,979 140,119
    WILLIS GROUP HOLDINGS LTD 13,641 16,320
    WNS LIMIT 25,616 31,190
    WORKDAY INC 29,172 31,872
    ZOETIS INC 31,132 47,920

    TY 2015 InvestmentsOtherSchedule2
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Category/ Item Listed at Cost or FMV Book Value End of Year Fair Market Value
    BLACKSTONE ALT ALPHA FUND   706,609 681,615
    SKYBRIDGE MULTI-ADVISER HEDGE   704,753 621,075

    TY 2015 OtherExpensesSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Description Revenue and Expenses per Books Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    Administrative Fees 30,513     30,513
    Bank Charges 83 83    
    State or Local Filing Fees 15     15


    TY 2015 OtherProfessionalFeesSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    Investment Management Services 80,325 80,325    


    TY 2015 TaxesSchedule
    Name:
    Kully Family Foundation
    EIN:
    45-4027161
    Category Amount Net Investment Income Adjusted Net Income Disbursements for Charitable Purposes
    990-PF Estimated Tax for 2015 2,600      
    990-PF Extension for 2014 3,459      
    Foreign Tax Paid 1,150 1,150