TY 2020 Form 990PF

- TIN:

Form990-PF
Click to see attachment

Department of the Treasury
Internal Revenue Service

Return of Private Foundation

or Section 4947(a)(1) Trust Treated as Private Foundation

Do not enter social security numbers on this form as it may be made public.
bullet

Go to www.irs.gov/Form990PF for instructions and the latest information.

OMB No. 1545-0052

2020

Open to Public Inspection

For calendar year 2020, or tax year beginning 01-01-2020 , and ending 12-31-2020

Name of foundation
THE RAY CHARLES FOUNDATION

Number and street (or P.O. box number if mail is not delivered to street address)2107 WEST WASHINGTON BLVD
Room/suite

City or town, state or province, country, and ZIP or foreign postal code
LOS ANGELES, CA90018

A Employer identification number

95-4047622

B Telephone number (see instructions)

(323) 737-8000

C If exemption application is pending, check here bullet

G Check all that apply: Initial returnInitial return of a former public charity
Final returnAmended return
Address change Name change

D 1. Foreign organizations, check here............. bullet

2. Foreign organizations meeting the 85%
test, check here and attach computation ... bullet

E If private foundation status was terminated
under section 507(b)(1)(A), check here ....... bullet

H Check type of organization: Section 501(c)(3) exempt private foundation
Section 4947(a)(1) nonexempt charitable trust Other taxable private foundation

F If the foundation is in a 60-month termination
under section 507(b)(1)(B), check here ....... bullet

I Fair market value of all assets at end
of year (from Part II, col. (c),
line 16) bullet

$46,447,581J Accounting method: Cash Accrual
Other (specify)
(Part I, column (d) must be on cash basis.)

	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	(d) Disbursements for charitable purposes (cash basis only)


1	Contributions, gifts, grants, etc., received (attach schedule)
2	Check .............
3	Interest on savings and temporary cash investments	263,498		263,498
4	Dividends and interest from securities...
5a	Gross rents............	628,666		628,666
b	Net rental income or (loss) 226,096
6a	Net gain or (loss) from sale of assets not on line 10
b	Gross sales price for all assets on line 6a
7	Capital gain net income (from Part IV, line 2)...
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).......		1,838,166	1,838,166
12	Total. Add lines 1 through 11........	2,730,330		2,730,330
13	Compensation of officers, directors, trustees, etc.	317,230		158,615	158,615
14	Other employee salaries and wages......	342,849		171,425	171,424
15	Pension plans, employee benefits.......	21,597		10,798	10,799
16a	Legal fees (attach schedule).........		333,958	166,979	166,979
b	Accounting fees (attach schedule).......		91,500	45,750	45,750
c	Other professional fees (attach schedule)....		79,631	39,816	39,815
17	Interest...............
18	Taxes (attach schedule) (see instructions)...		93,284	46,642	46,642
19	Depreciation (attach schedule) and depletion...		282,892	144,125
20	Occupancy..............
21	Travel, conferences, and meetings.......	17,159		8,579	8,580
22	Printing and publications..........
23	Other expenses (attach schedule).......		2,261,143	1,996,962	205,183
24	Total operating and administrative expenses.
	Add lines 13 through 23..........	3,841,243		2,789,691	853,787
25	Contributions, gifts, grants paid.......	2,125,000			2,125,000
26	Total expenses and disbursements. Add lines 24 and 25	5,966,243		2,789,691	2,978,787
27	Subtract line 26 from line 12:
a	Excess of revenue over expenses and disbursements	-3,235,913
b	Net investment income (if negative, enter -0-)			0
c	Adjusted net income (if negative, enter -0-)...

For Paperwork Reduction Act Notice, see instructions.

Cat. No. 11289X Form 990-PF (2020)

Form 990-PF (2020)

Page 2

Part II		Balance Sheets	Beginning of year	End of year
Part II		Balance Sheets	(a) Book Value	(b) Book Value	(c) Fair Market Value
	1	Cash—non-interest-bearing.............	531,179	884,426	884,426
	2	Savings and temporary cash investments.........	29,535,838	27,488,962	27,488,962
	3	Accounts receivable
		Less: allowance for doubtful accounts
	4	Pledges receivable
		Less: allowance for doubtful accounts
	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)
		Less: allowance for doubtful accounts
	8	Inventories for sale or use..............
	9	Prepaid expenses and deferred charges..........	68,324	77,297	77,297
	10a	Investments—U.S. and state government obligations (attach schedule)
	b	Investments—corporate stock (attach schedule).......
	c	Investments—corporate bonds (attach schedule).......
	11	Investments—land, buildings, and equipment: basis 7,066,434
		Less: accumulated depreciation (attach schedule) 1,276,928	5,658,945	5,789,506	10,374,000
	12	Investments—mortgage loans.............
	13	Investments—other (attach schedule)..........
	14	Land, buildings, and equipment: basis 5,314,612
		Less: accumulated depreciation (attach schedule) 3,106,832	2,299,767	2,207,780	3,700,000
	15	Other assets (describe )	3,981,894	3,922,896	3,922,896
	16	Total assets (to be completed by all filers—see the
		instructions. Also, see page 1, item I)	42,075,947	40,370,867	46,447,581
	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 )	62,820	60,320
	23	Total liabilities (add lines 17 through 22).........	62,820	60,320
		Foundations that follow FASB ASC 958, check here
		and complete lines 24, 25, 29 and 30.
	24	Net assets without donor restrictions...........
	25	Net assets with donor restrictions............
		Foundations that do not follow FASB ASC 958, check here
		and complete lines 26 through 30.
	26	Capital stock, trust principal, or current funds........
	27	Paid-in or capital surplus, or land, bldg., and equipment fund
	28	Retained earnings, accumulated income, endowment, or other funds	42,013,127	40,310,547
	29	Total net assets or fund balances (see instructions).....	42,013,127	40,310,547
	30	Total liabilities and net assets/fund balances (see instructions).	42,075,947	40,370,867

Part III

Analysis of Changes in Net Assets or Fund Balances

Total net assets or fund balances at beginning of year—Part II, column (a), line 29 (must agree with end-of-year figure reported on prior year’s return) ...............

42,013,127

Enter amount from Part I, line 27a .....................

-3,235,913

Other increases not included in line 2 (itemize) bullet

1,533,333

Add lines 1, 2, and 3 ..........................

40,310,547

Decreases not included in line 2 (itemize) bullet

Total net assets or fund balances at end of year (line 4 minus line 5)—Part II, column (b), line 29 .

40,310,547

Form 990-PF (2020)

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
(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)	If gain, also enter in Part I, line 7 If (loss), enter -0- in Part I, line 7	2
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 ...................		3

Part V

Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income

SECTION 4940(e) REPEALED ON DECEMBER 20, 2019 - DO NOT COMPLETE

1 Reserved

(a) Reserved	(b) Reserved	(c) Reserved	(d) Reserved

Reserved...........................

Reserved,..........................

Form 990-PF (2020)

Page 4

Part VI

Excise Tax Based on Investment Income (Section 4940(a), 4940(b), 4940(e), or 4948—see instructions)

1a	Exempt operating foundations described in section 4940(d)(2), check here and enter “N/A" on line 1.
	Date of ruling or determination letter: (attach copy of letter if necessary–see instructions)
b	Reserved................................	1	0
c	All other domestic foundations enter 1.39% 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	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
6	Credits/Payments:

a	2020 estimated tax payments and 2019 overpayment credited to 2020	6a	16,800
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	16,800
8	Enter any penalty for underpayment of estimated tax. Check here if Form 2220 is attached.		8
9	Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed.......		9
10	Overpayment. If line 7 is more than the total of lines 5 and 8, enter the amount overpaid...		10	16,800
11	Enter the amount of line 10 to be: Credited to 2021 estimated tax16,800	Refunded	11

Part VII-A

Statements Regarding Activities

During the tax year, did the foundation attempt to influence any national, state, or local legislation or did

Yes

it participate or intervene in any political campaign? ....................

Did it spend more than $100 during the year (either directly or indirectly) for political purposes? See the instructions

for the definition.................................

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.

Did the foundation file Form 1120-POL for this year?.....................

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

Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed

on foundation managers. bullet

Has the foundation engaged in any activities that have not previously been reported to the IRS?.......

If "Yes," attach a detailed description of the activities.

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....

Did the foundation have unrelated business gross income of $1,000 or more during the year?........

If "Yes," has it filed a tax return on Form 990-T for this year?...................

Was there a liquidation, termination, dissolution, or substantial contraction during the year?.........

If "Yes," attach the statement required by General Instruction T.

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?................

Yes

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..................................

Yes

Enter the states to which the foundation reports or with which it is registered (see instructions)

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 .

Yes

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 2020 or the taxable year beginning in 2020? See the instructions for Part XIV.

If "Yes," complete Part XIV .............................

Did any persons become substantial contributors during the tax year? If "Yes," attach a schedule listing their names

and addresses. ...............................

Form 990-PF (2020)

Page 5

Part VII-A

Statements Regarding Activities (continued)

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 .............

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.................

Did the foundation comply with the public inspection requirements for its annual returns and exemption application?

Yes

Website address bullet

www.theraycharlesfoundation.org

The books are in care of bullet

VALERIE ERVIN PRESIDENT Telephone no. bullet

(323) 737-8000

Located at bullet

2107 W WASHINGTON BLVDLOS ANGELESCA ZIP+4 bullet

90018

Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 —check here ......... bullet

and enter the amount of tax-exempt interest received or accrued during the year ........ bullet

16 At any time during calendar year 2020, 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 the instructions for exceptions and filing requirements for FinCEN Form 114. 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

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? YesNo

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from)

a disqualified person?......................YesNo

(3) Furnish goods, services, or facilities to (or accept them from) a disqualified person? YesNo

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? YesNo

(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)?...............YesNo

(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.).......YesNo

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 ........

Organizations relying on a current notice regarding disaster assistance check here........ bullet

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 2020?.............

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)):

At the end of tax year 2020, did the foundation have any undistributed income (lines 6d

and 6e, Part XIII) for tax year(s) beginning before 2020?.............YesNo

If "Yes," list the years bullet

20, 20, 20, 20

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.) ..............

If the provisions of section 4942(a)(2) are being applied to any of the years listed in 2a, list the years here.

20, 20, 20, 20

Did the foundation hold more than a 2% direct or indirect interest in any business enterprise at

any time during the year?......................YesNo

If "Yes," did it have excess business holdings in 2020 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 2020.)..................

Did the foundation invest during the year any amount in a manner that would jeopardize its charitable purposes?

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 2020?

Form 990-PF (2020)

Page 6

Part VII-B

Statements Regarding Activities for Which Form 4720 May Be Required (continued)

During the year did the foundation pay or incur any amount to:

Yes

(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))? YesNo

(2) Influence the outcome of any specific public election (see section 4955); or to carry

on, directly or indirectly, any voter registration drive?.............YesNo

(3) Provide a grant to an individual for travel, study, or other similar purposes? YesNo

(4) Provide a grant to an organization other than a charitable, etc., organization described

in section 4945(d)(4)(A)? See instructions................YesNo

(5) Provide for any purpose other than religious, charitable, scientific, literary, or

educational purposes, or for the prevention of cruelty to children or animals?.....YesNo

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 ......

Organizations relying on a current notice regarding disaster assistance check here......... bullet

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?..........YesNo

If "Yes," attach the statement required by Regulations section 53.4945–5(d).

Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiums on

a personal benefit contract?.....................YesNo

Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ....

If "Yes" to 6b, file Form 8870.

At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? YesNo

If "Yes", did the foundation receive any proceeds or have any net income attributable to the transaction? ....

Is the foundation subject to the section 4960 tax on payment(s) of more than $1,000,000 in remuneration or

excess parachute payment during the year? .................YesNo

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
VALERIE ERVIN	President 40.00	317,230	9,517
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	President 40.00	317,230	9,517
ROBERT C DAVIDSON JR	Chairman 1.00	0
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	Chairman 1.00	0
CLARENCE DANIELS	Director 1.00	0
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	Director 1.00	0
DAVID BROKAW	Director 1.00	0
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	Director 1.00	0
WESLEY COLEMAN	Director 1.00	0
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	Director 1.00	0
KATHLEEN L JOHNSON	Secretary 1.00	0
2107 W WASHINGTON BLVD LOS ANGELES,CA90018	Secretary 1.00	0

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
JENNIFER SUN	CONTROLLER 40.00	114,202	3,426
2107 WEST WASHINGTON BLVD LOS ANGELES,CA90018	CONTROLLER 40.00	114,202	3,426
DENISE THIEL	PROPERTY MGR. 40.00	82,210	2,466
2107 WEST WASHINGTON BLVD LOS ANGELES,CA90018	PROPERTY MGR. 40.00	82,210	2,466
TAMMIE DENSON	EXEC. ASSISTANT 40.00	64,805	1,944
2107 WEST WASHINGTON BLVD LOS ANGELES,CA90018	EXEC. ASSISTANT 40.00	64,805	1,944




Total number of other employees paid over $50,000...................

Form 990-PF (2020)

Page 7

Part VIII

Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees,
and Contractors (continued)

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
LA RETROFIT INC	CONTRACTOR	228,862
817 7TH ST 2 SANTA MONICA,CA90403	CONTRACTOR	228,862
HUTCHINSON & BLOODGOOD LLP	ACCOUNTING	94,315
550 N BRAND BLVD 14TH FL GLENDALE,CA91203	ACCOUNTING	94,315
LOEB & LOEB LLP	LEGAL	93,952
10100 SANTA MONICA BLVD 2200 LOS ANGELES,CA90067	LEGAL	93,952
MITCHELL SILBERBERG & KNUPP LLP	LEGAL	195,285
2049 CENTURY PARK EAST 18TH FL LOS ANGELES,CA90067	LEGAL	195,285

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 (2020)

Page 8

Part X

Minimum Investment Return (All domestic foundations must complete this part. Foreign foundations, see instructions.)

Fair market value of assets not used (or held for use) directly in carrying out charitable, etc.,

purposes:

Average monthly fair market value of securities...................

Average of monthly cash balances.......................

30,571,883

Fair market value of all other assets (see instructions)................

13,770,000

Total (add lines 1a, b, and c).........................

44,341,883

Reduction claimed for blockage or other factors reported on lines 1a and

1c (attach detailed explanation) .............

Acquisition indebtedness applicable to line 1 assets..................

Subtract line 2 from line 1d.........................

44,341,883

Cash deemed held for charitable activities. Enter 1 1/2% of line 3 (for greater amount, see

instructions) .............................

665,128

Net value of noncharitable-use assets. Subtract line 4 from line 3. Enter here and on Part V, line 4

43,676,755

Minimum investment return. Enter 5% of line 5..................

2,183,838

Part XI

Distributable Amount (see instructions) (Section 4942(j)(3) and (j)(5) private operating foundations and certain foreign organizations check here right arrow

and do not complete this part.)

Minimum investment return from Part X, line 6....................

2,183,838

Tax on investment income for 2020 from Part VI, line 5......

Income tax for 2020. (This does not include the tax from Part VI.)...

Add lines 2a and 2b............................

Distributable amount before adjustments. Subtract line 2c from line 1............

2,183,838

Recoveries of amounts treated as qualifying distributions................

Add lines 3 and 4............................

2,183,838

Deduction from distributable amount (see instructions).................

Distributable amount as adjusted. Subtract line 6 from line 5. Enter here and on Part XIII, line 1 ...

2,183,838

Part XII

Qualifying Distributions (see instructions)

Amounts paid (including administrative expenses) to accomplish charitable, etc., purposes:

Expenses, contributions, gifts, etc.—total from Part I, column (d), line 26 ..........

2,978,787

Program-related investments—total from Part IX-B..................

Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc.,

purposes...............................

Amounts set aside for specific charitable projects that satisfy the:

Suitability test (prior IRS approval required)....................

Cash distribution test (attach the required schedule) .................

Qualifying distributions. Add lines 1a through 3b. Enter here and on Part V, line 8, and Part XIII, line 4

2,978,787

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.................

Adjusted qualifying distributions. Subtract line 5 from line 4..............

2,978,787

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 (2020)

Page 9

Part XIII

Undistributed Income (see instructions)

		(a) Corpus	(d) 2020
1 Distributable amount for 2020 from Part XI, line 7			2,183,838
2 Undistributed income, if any, as of the end of 2020:
a Enter amount for 2019 only.......
b Total for prior years:20, 20, 20
3 Excess distributions carryover, if any, to 2020:
a From 2015......
b From 2016......
c From 2017......	1,205,134
d From 2018......
e From 2019......	305,177
fTotal of lines 3a through e........		1,510,311
4Qualifying distributions for 2020 from Part
XII, line 4: $ 2,978,787
a Applied to 2019, 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 2020 distributable amount.....			2,183,838
e Remaining amount distributed out of corpus		794,949
5 Excess distributions carryover applied to 2020.
(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		2,305,260
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 2019. Subtract line 4a from line 2a. Taxable amount—see instructions .............
f Undistributed income for 2020. Subtract lines 4d and 5 from line 1. This amount must be distributed in 2021 ..........			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) .......
8 Excess distributions carryover from 2015 not applied on line 5 or line 7 (see instructions) ...
9Excess distributions carryover to 2021. Subtract lines 7 and 8 from line 6a ......		2,305,260
10 Analysis of line 9:
a Excess from 2016....
b Excess from 2017....	1,205,134
c Excess from 2018....
d Excess from 2019....	305,177
e Excess from 2020....	794,949

Form 990-PF (2020)

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 2020, enter the date of the ruling....... bullet

b Check box to indicate whether the organization is a private operating foundation described in section4942(j)(3) or4942(j)(5)

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) 2020	(b) 2019	(c) 2018	(d) 2017	(e) Total

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 foundation 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

if the foundation only makes contributions to preselected charitable organizations and does not accept
unsolicited requests for funds. If the foundation makes gifts, grants, etc. to individuals or organizations under
other conditions, complete items 2a, b, c, and d. See instructions

aThe name, address, and telephone number or e-mail address of the person to whom applications should be addressed:

GRANT DEPARTMENT
2107 West Washington Boulevard
LOS ANGELES,CA90018
(323) 737-8000
info@theraycharlesfoundation.org

bThe form in which applications should be submitted and information and materials they should include:

The Ray Charles Foundation requests that the applicant print and follow the Grant Check List. Upon completing the instructions, mail the GRANT APPLICATION PACKAGE (Cover Letter, completed and signed Online Grant Application, Letter of Inquiry, Proof of IRS federal tax-exempt status, Annual Report [if available], and signed Grant Check List TO THE FOLLOWING ADDRESS:GRANT DEPARTMENTThe Ray Charles Foundation2107 West Washington BoulevardLos Angeles, CA 90018

cAny submission deadlines:

NO SUBMISSION DEADLINES - APPLICATIONS REVIEWED ALL YEAR

dAny restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other
factors:

Obligations and Responsibilities of Grant Recipients 1) Since an award is made only for the purposes set forth in the Grantees submitted proposal and the Grantees grant application, any modifications to the project, as originally proposed, may be made only with prior written approval by The Ray Charles Foundation.2) The Grantee may not grant any portion of the award to a secondary Grantee without prior written permission of The Ray Charles Foundation.3) The Grant must be spent in full within the time set forth in the Grant proposal and if no such time is set forth, then within twelve (12) months following the Grant. In the event that the Grant is expressly made for multiple years, any funds not used in the current year may be applied to the purposes of the Grant in following years but only for the years covered by the Grant proposal.4) The Grantee must maintain complete records of receipts and expenditures sufficient to identify grant funds and expenditures made in the furtherance of t

Form 990-PF (2020)

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)		Foundation status of recipient	Purpose of grant or contribution	Amount
aPaid during the year
MOREHOUSE COLLEGE 830 WESTVIEW DRIVE SW ATLANTA,GA30314	NONE	NOT A FDN	EDUCATION	2,025,000
ART CENTER COLLEGE OF DESIGN 1700 LIDA ST PASADENA,CA91103	NONE	NOT A FDN	EDUCATION	22,000
TRIUMPH FOUNDATION 27811 AVENUE HOPKINS UNIT 5 VALENCIA,CA91355	NONE	NOT A FDN	CHARITABLE PURPOSES	25,000
FULCRUM ARTS 145 N RAYMOND AVE PASADENA,CA91103	NONE	NOT A FDN	CHARITABLE PURPOSES	5,000
MU BOULE FOUNDATION PO BOX 11402 NEW BRUNSWICK,NJ08906	NONE	NOT A FDN	EDUCATIONAL PURPOSES	13,000
HAMPTON UNIVERSITY 100 E QUEEN ST HAMPTON,VA23669	NONE	NOT A FDN	EDUCATIONAL PURPOSES	10,000
SOUTHERN POVERTY LAW CENTER 400 WASHINGTON AVE MONTGOMERY,AL36104	NONE	NOT A FDN	CHARITABLE PURPOSES	10,000
HOWARD UNIVERSITY 2400 6TH ST NW WASHINGTON,DC20059	NONE	NOT A FDN	EDUCATIONAL PURPOSES	10,000
LEMOYNE-OWEN COLLEGE 807 WALKER AVE MEMPHIS,TN38126	NONE	NOT A FDN	EDUCATIONAL PURPOSES	5,000
Total ................................. 3a				2,125,000

bApproved for future payment

Total ................................. 3b

Form 990-PF (2020)

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	(e) Related or exempt function income (See instructions.)
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	263,498
4 Dividends and interest from securities....
5 Net rental income or (loss) from real estate:
aDebt-financed property......
bNot debt-financed property.....			16	226,096
6 Net rental income or (loss) from personal property
7 Other investment income.....
8 Gain or (loss) from sales of assets other than inventory ............
9 Net income or (loss) from special events:
10 Gross profit or (loss) from sales of inventory
11 Other revenue: aALBUM INCOME			15	79,138
bFED/CA TAX REFUNDS			1
cLEGAL SETTLEMENT			1
dLICENSING/MERCHANDISE			15	765
eMASTER LICENSE REVENUE			15	171,650
fMISCELLANEOUS INCOME			1	10,124
gOIL & GAS LEASE			1	1,584
hPUBLISHING INCOME			15	185,216
iROYALTY RECEIPTS			15	1,389,689
jSAG PENSION RECEIPTS			14
12 Subtotal. Add columns (b), (d), and (e)..				2,327,760

13Total. Add line 12, columns (b), (d), and (e)..................

2,327,760

(See worksheet in line 13 instructions to verify calculations.)

Part XVI-B

Relationship of Activities to the Accomplishment of Exempt Purposes

Line No.	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 (2020)

Page 13

Part XVII

Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations

Did the organization directly or indirectly engage in any of the following with any other organization described in section 501(c) (other than section 501(c)(3) organizations) or in section 527, relating to political organizations?

Yes

Transfers from the reporting foundation to a noncharitable exempt organization of:

(1) Cash...................................

1a(1)

(2) Other assets.................................

1a(2)

Other transactions:

(1) Sales of assets to a noncharitable exempt organization....................

1b(1)

(2) Purchases of assets from a noncharitable exempt organization..................

1b(2)

(3) Rental of facilities, equipment, or other assets.......................

1b(3)

(4) Reimbursement arrangements...........................

1b(4)

(5) Loans or loan guarantees.............................

1b(5)

(6) Performance of services or membership or fundraising solicitations................

1b(6)

Sharing of facilities, equipment, mailing lists, other assets, or paid employees..............

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

Is the foundation directly or indirectly affiliated with, or related to, one or more tax-exempt organizations
described in section 501(c) (other than section 501(c)(3)) or in section 527? ...........Yes No

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.
				May the IRS discuss this return with the preparer shown below? See instructions. Yes No
	Signature of officer or trustee	Date	Title

Paid Preparer Use Only	Print/Type preparer's name	Preparer's Signature	Date	Check if self- employed	PTIN
	Firm's name				Firm's EIN
	Firm's address				Phone no.

Form 990-PF (2020)

Additional Data

Software ID:	20011551
Software Version:	2020v4.0

Form 990PF - Special Condition Description:

Special Condition Description

- TIN:

TY 2020 AccountingFeesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
ACCOUNTING FEES	91,500	45,750	0	45,750

- TIN:

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

TY 2020 AmortizationSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description of Amortized Expenses	Date Acquired, Completed, or Expended	Amount Amortized	Deduction for Prior Years	Amortization Method	Current Year Amortization	Net Investment Income	Adjusted Net Income	Total Amount of Amortization
MASTER RECORDING- DOD VAL	2008-01-01	23,000,000	18,399,996	15.0000	1,533,333			19,933,329
PRODUCTION COSTS - OPRY SALUTE	2019-02-01	589,975	54,081	10.0000	58,998			113,079

- TIN:

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

TY 2020 DepreciationSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

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
LINDEN 85 BLDG - DOD VAL	2004-06-10	636,600	277,700	SL	3.64 %	23,147	23,147
LINDEN 91 BLDG - DOD VAL	2004-06-10	1,640,000	715,628	SL	3.64 %	59,630	59,630
LINDEN 91 IMPROVEMENTS	2008-06-30	35,012	14,694	SL	3.64 %	1,273	1,273
WASHINGTON BLDG - DOD VAL	2004-06-10	425,033	130,776	SL	2.56 %	10,898
NEW ROOF-LINDEN 85	2011-12-01	27,390	14,760	SL	15.0000	1,826	1,826
WASHINGTON BL-IMPROV	2011-07-01	245,569	139,154	SL	15.0000	16,371
WASHINGTON BL-IMPROV	2012-03-05	32,544	16,998	SL	15.0000	2,170
WASHINGTON BL-F&F	2013-03-04	17,756	17,336	SL	7.0000	420
WASHINGTON BL-IMPROV	2013-07-23	25,510	10,915	SL	15.0000	1,701
LINDEN 85 IMPROVEMENTS	2013-12-12	2,924	1,186	SL	15.0000	195	195
LINDEN 91 IMPROVEMENTS	2013-12-17	33,043	13,218	SL	15.0000	2,203	2,203
RAY CHARLES MUSEUM	2009-01-01	382,668	204,089	SL	15.0000	25,511
WASHINGTON BL - F&F	2014-07-16	8,317	6,435	SL	7.0000	1,188
WASHINGTON BL - IMPROV	2014-07-01	49,920	18,304	SL	15.0000	3,328
LINDEN 91 IMPROVEMENTS	2014-07-01	23,202	8,508	SL	15.0000	1,547	1,547
WASHINGTON BL - IMPROV	2015-07-23	35,462	10,441	SL	15.0000	2,364
LINDEN 85 IMPROVEMENTS	2015-07-01	16,600	4,981	SL	15.0000	1,107	1,107
LINDEN 91 IMPROVEMENTS	2015-07-01	82,637	24,791	SL	15.0000	5,509	5,509
COMPUTER EQUIPMENT	2015-07-01	13,558	12,204	SL	5.0000	1,354
LINDEN 85 IMPROVEMENTS	2016-10-03	14,800	3,208	SL	15.0000	987	987
LINDEN 91 IMPROVEMENTS	2016-07-01	88,831	20,727	SL	15.0000	5,922	5,922
LINDEN 85 IMPROVEMENTS	2008-06-30	6,100	2,561	SL	3.64 %	222	222
OFFICE EQUIPMENT	2016-07-01	8,026	5,618	SL	5.0000	1,605
RAY CHARLES MUSEUM IMPROV	2017-12-14	510,130	70,852	SL	15.0000	34,009
COMPUTER EQUIPMENT	2017-01-30	2,944	1,718	SL	5.0000	589
LINDEN 85 - ROOF	2017-06-22	24,000	4,000	SL	15.0000	1,600	1,600
LINDEN 91 IMPROVEMENTS	2017-07-01	22,408	3,735	SL	15.0000	1,494	1,494
WASHINGTON BL - IMPROV	2017-07-01	57,840	9,640	SL	15.0000	3,856
RAY CHARLES MUSEUM IMPROV	2017-12-14	341,096	47,375	SL	15.0000	22,740
WASHINGTON BL - IMPROV	2018-01-16	6,890	880	SL	15.0000	459
LINDEN 85 IMPROVEMENTS	2018-07-01	69,455	6,945	SL	15.0000	4,630	4,630
LINDEN 91 IMPROVEMENTS	2018-06-01	13,760	1,452	SL	15.0000	917	917
STUDIO EQUIPMENT	2019-06-01	7,463	871	SL	5.0000	1,493
OFFICE EQUIPMENT	2019-07-01	15,171	1,517	SL	5.0000	3,034
MASTER RECORDING EQUIPMEN	2019-04-01	8,120	1,218	SL	5.0000	1,624
LINDEN 85 IMPROVEMENTS	2019-07-01	234,000	7,800	SL	15.0000	15,600	15,600
LINDEN 91 IMPROVEMENTS	2019-07-01	207,237	6,908	SL	15.0000	13,816	13,816
WASHINGTON BL - IMPROV	2019-07-01	16,420	547	SL	15.0000	1,095
WASHINGTON BL - F&F	2019-10-01	16,152	577	SL	7.0000	2,307
WASHINGTON BL - ROOF	2020-06-30	46,780		SL	1.39 %	651
LINDEN 85 IMPROVEMENTS	2020-05-08	48,502		SL	15.0000	2,156	2,156
LINDEN 85 RETROFIT	2020-12-29	226,184		SL	0.15 %	344	344

- TIN:

TY 2020 InvestmentsLandSchedule2

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category/ Item	Cost/Other Basis	Accumulated Depreciation	Book Value	End of Year Fair Market Value
Buildings	2,261,250	1,276,928	984,322	3,805,800
Improvements	1,191,434		1,191,434
Land	3,613,750		3,613,750	6,568,200

- TIN:

TY 2020 LandEtcSchedule2

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category / Item	Cost / Other Basis	Accumulated Depreciation	Book Value	End of Year Fair Market Value
Furniture and Fixtures	158,734	152,799	5,935
Machinery and Equipment	2,192,661	2,150,520	42,141
Buildings	802,668	376,003	426,665	2,100,000
Improvements	1,380,549	427,510	953,039	1,600,000
Land	780,000		780,000

- TIN:

TY 2020 LegalFeesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
LEGAL FEES	333,958	166,979	0	166,979

- TIN:

TY 2020 OtherAssetsSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description	Beginning of Year - Book Value	End of Year - Book Value	End of Year - Fair Market Value
Net Intangible Assets	3,396,000	3,396,000	3,396,000
PRODUCTION COSTS	585,894	526,896	526,896

- TIN:

TY 2020 OtherExpensesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description	Revenue and Expenses per Books	Net Investment Income	Disbursements for Charitable Purposes
ADVERTISING	45,774	22,887	22,887
Amortization	1,592,331	1,533,333
BANK CHARGES	466	233	233
COMPUTER EXPENSE	15,227	7,614	7,613
DUES & SUBSCRIPTIONS	3,394	1,697	1,697
GARDENING	8,175	4,087	4,088
INSURANCE	169,670	84,835	84,835
INTERNET	27,178	13,589	13,589
LICENSES AND FEES	3,845	1,922	1,923
OFFICE EXPENSE	1,594	797	797
PEST CONTROL	536	268	268
PLUMBING & ELECTRICAL	1,826	913	913
POSTAGE & FREIGHT	2,988	1,494	1,494
PROMOTION	1,561	781	780
Rental Expenses	258,445	258,445
REPAIRS & MAINTENANCE	22,448	11,224	11,224
SECURITY	20,646	10,323	10,323
SUPPLIES	7,704	3,852	3,852
TELEPHONE	51,353	25,677	25,676
TRASH SERVICE	3,562	1,781	1,781
UTILITIES	22,420	11,210	11,210

- TIN:

TY 2020 OtherIncomeSchedule2

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description	Revenue And Expenses Per Books	Net Investment Income
ALBUM INCOME	79,138	79,138
LICENSING/MERCHANDISE	765	765
MASTER LICENSE REVENUE	171,650	171,650
MISCELLANEOUS INCOME	10,124	10,124
OIL & GAS LEASE	1,584	1,584
PUBLISHING INCOME	185,216	185,216
ROYALTY RECEIPTS	1,389,689	1,389,689

- TIN:

TY 2020 OtherIncreasesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description	Amount
AMORTIZATION ON RETURN NOT ON BOOKS	1,533,333

- TIN:

TY 2020 OtherLiabilitiesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Description	Beginning of Year - Book Value	End of Year - Book Value
SECURITY DEPOSITS	62,820	60,320

- TIN:

TY 2020 OtherProfessionalFeesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category	Amount	Net Investment Income	Adjusted Net Income	Disbursements for Charitable Purposes
CONSULTANTS	61,684	30,842	0	30,842
OTHER	17,947	8,974	0	8,973

- TIN:

TY 2020 TaxesSchedule

Name:

THE RAY CHARLES FOUNDATION

EIN:

95-4047622

Software ID:

20011551

Software Version:

2020v4.0

Category	Amount	Net Investment Income	Disbursements for Charitable Purposes
OTHER	17,037	8,519	8,518
PAYROLL TAXES	41,618	20,809	20,809
PROPERTY TAX	34,619	17,309	17,310
STATE TAXES	10	5	5