| DIRECTORS & OFFICERS |
Form 990-PF, Part VII, Line 1 |
DIRECTORS ARE PAID A $20,000 RETAINER PER ANNUM ($27,500 FOR BOARD CHAIRMAN) PLUS MEETING FEES OF $1,000 PER DAY FOR BOARD OF DIRECTORS MEETINGS. DIFFERENCES IN THE AMOUNTS PAID TO DIRECTORS REFLECT MEETINGS ATTENDED OR ADDITIONAL IMPUTED INCOME. THE AVERAGE HOURS FOR DIRECTORS IS BASED UPON FOUR BOARD MEETINGS, RELATED COMMITTEE MEETINGS, TRAVEL AND PREPARATION TIME. IN ADDITION, THE DIRECTORS ARE FREQUENTLY CONSULTED BETWEEN MEETINGS, ASKED TO REVIEW AND COMMENT ON PREPARED REPORTS AND PAPERS, MAKE ON-SITE VISITS WHEN IT IS SAFE TO DO SO TO NATIONAL AND INTERNATIONAL GRANTEES RELATED TO GRANT MAKING AREAS OF THE FOUNDATION, AND ASSIST ON OTHER FOUNDATION RELATED MATTERS. BROKEN DOWN ON A WEEKLY BASIS, THE AVERAGE TIME IS ROUGHLY 4 TO 5 HOURS PER WEEK PER DIRECTOR. |
| EXPENDITURE RESPONSIBILITY STATEMENTS |
Form 990-PF, Part VI, Section B Line 5d |
EXPLANATION: IT IS THE FOUNDATION'S POLICY THAT NO FURTHER PAYMENTS WILL BE MADE TO ANY GRANTEE UNTIL ALL OUTSTANDING REPORTS ARE RECEIVED. THE FOUNDATION HAS DETERMINED THAT FOR THOSE GRANTEES NO LONGER IN EXISTENCE AND WHO HAVE NOT PROVIDED TIMELY REPORTS, FURTHER ACTION WITH RESPECT TO THE GRANTS WOULD BE FUTILE. IN OTHER CASES, THE FOUNDATION HAS MADE REASONABLE EFFORTS TO NOTIFY THE GRANTEES THAT THEY ARE IN VIOLATION OF THEIR GRANT AGREEMENTS AND THAT GRANT FUNDS ARE REQUIRED TO BE RETURNED TO THE FOUNDATION. IN THOSE CASES, THE FOUNDATION HAS ALSO MADE REASONABLE ADDITIONAL INQUIRIES WITH RESPECT TO RETURN OF THE GRANT FUNDS AND HAS BEEN UNABLE AS OF YET TO SECURE SUCH RETURN. THE FOUNDATION HAS DETERMINED THAT LEGAL ACTION WITH RESPECT TO THESE GRANT FUNDS WOULD IN ALL PROBABILITY NOT RESULT IN THE SATISFACTION OF EXECUTION ON A JUDGMENT, AND THAT THE EXPENSE OF LEGAL ACTION WOULD NOT BE JUSTIFIED BY THE LIKELY RESULTS. FOR EACH GRANTEE WITH DELINQUENT REPORTS, EXPENDITURE RESPONSIBILITY STATEMENTS ARE INCLUDED IN THE FOUNDATION'S FORM 990-PF FOR THE YEAR OF EACH INITIAL GRANT PAYMENT THROUGH THE LAST YEAR IN WHICH ANY REPORT IS RECEIVED AND THREE SUBSEQUENT YEARS. THEREAFTER, SUCH GRANTEES ARE NO LONGER LISTED ON THE FORM 990-PF BUT FURTHER PAYMENTS WILL NOT BE MADE TO SUCH GRANTEES. THE FOLLOWING GRANTEES HAVE BEEN LISTED IN THE 990-PF FOR THE PERIOD DESCRIBED HEREIN AND WILL BE ADDED TO THOSE NO LONGER INCLUDED IN THE 990-PF: Asociacion Mexicana de Parteria, A.C. Interregional Public Organisation for Scientific Support to Human Rights Protection and Civil Society Development 'Independent Council of Legal Expertise' Regional Public Foundation 'Informatics for Democracy' St. Petersburg Non-Governmental Human Rights Organization 'Citizens' Watch' DEFINITIONS OF TERMS USED IN THE EXPENDITURE RESPONSIBILITY STATEMENTS: GRANT AMOUNT: TOTAL PAYMENTS MADE ON THE GRANT TO THE GRANTEE THROUGH THE END OF THE REPORTING DATE OF THE FORM 990-PF. DATE OF GRANT: THE DATE OF THE INITIAL GRANT PAYMENT. VERIFICATION DATE: THE DATE OF ANY INDEPENDENT VERIFICATION OF A GRANT REPORT. THE FIELD IS BLANK IF NO VERIFICATION WAS PERFORMED. DATES OF REPORTS BY GRANTEE: THE DATES THE REPORTS ARE RECEIVED BY THE FOUNDATION. THERE IS AN ASTERISK BY THE DATE IF A REPORT HAS BEEN RECEIVED BUT NOT YET APPROVED BY THE FOUNDATION. AN EXPENDITURE RESPONSIBILITY STATEMENT FOR A GRANT CONTINUES TO BE INCLUDED UNTIL ALL REPORTS HAVE BEEN APPROVED BY THE FOUNDATION, SUBJECT TO THE STATEMENT ABOVE AS TO GRANTEES WITH DELINQUENT REPORTS. |
| SUBSTITUTED FEDERAL FORM 851 |
Form 990-PF, Part XVI, Line 1d |
COMMON PARENT CORPORATION: JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION 140 SOUTH DEARBORN STREET, SUITE 1200, CHICAGO, IL 60603-5285 EMPLOYER IDENTIFICATION NUMBER 23-7093598 PART I - OVERPAYMENT CREDITS, ESTIMATED TAX PAYMENTS AND TAX DEPOSITS COMMON PARENT CORPORATION, EIN 23-7093598 PORTION OF OVERPAYMENT CREDITS AND ESTIMATED TAX PAYMENT -- $10,288,777 HARTSEL RANCH CORPORATION EIN-59-1010067 MACARTHUR HOLDING A, INC. EIN-36-3884255 MACARTHUR HOLDING B, INC. EIN-36-3950409 TOTAL TAX $10,288,777 PART II - PRINCIPAL BUSINESS ACTIVITY - TITLE-HOLDING COMPANY, VOTING STOCK INFORMATION, ETC. COMMON PARENT CORPORATION, JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION, PBA CODE 813000 SUBSIDIARY CORPORATION: HARTSEL RANCH CORPORATION, PBA CODE 531390, NO NONDIVIDEND DISTRIBUTIONS, 15 SHARES, 100% OF VOTING POWER, 100% OF VALUE OWNED BY COMMON PARENT CORP, JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION. |
| TANGIBLE PERSONAL PROPERTY - SECTION 1.263(A)-1(F) DE MINIMIS SAFE HARBOR |
TAXPAYER ELECTION |
EXPLANATION: JOHN D. AND CATHERINE T. MACARTHUR FOUNDATION EIN: 23-7093598 HARTSEL RANCH CORPORATION EIN: 59-1010067 MACARTHUR HOLDING A, INC. EIN: 36-3884255 MACARTHUR HOLDING B, INC. EIN: 36-3950409 FOR THE TAXABLE YEAR BEGINNING JANUARY 1, 2021, THE ABOVE-LISTED TAXPAYERS HEREBY MAKE THE DE MINIMUS SAFE HARBOR ELECTION UNDER TREASURY REGULATION SECTION 1.263(A)-1(F). |
| SUMMARY OF DIRECT CHARITABLE ACTIVITIES |
Form 990-PF, Part VIII-A |
EXPLANATION: IN ADDITION TO MAKING GRANTS, THE FOUNDATION ENGAGES IN A VARIETY OF OTHER CHARITABLE ACTIVITIES USING DIFFERENT TOOLS, STRATEGIES AND APPROACHES TO ACHIEVE ITS PHILANTHROPIC MISSION. THESE TOOLS, ACTIVITIES AND STRATEGIES INCLUDE: CONTRACTS, IMPACT INVESTMENTS, CONVENING MEETINGS AND CONFERENCES WITH A VARIETY OF PARTICIPANTS, COMMUNICATING WHAT IT AND ITS GRANTEES HAVE LEARNED THROUGH EVALUATIONS AND ASSESSMENTS AND OTHER RESEARCH, PROVIDING ADVICE TO OTHER DONORS AND CHARITABLE ORGANIZATIONS, ORGANIZING A PRO BONO LEGAL NETWORK TO PROVIDE FREE LEGAL SERVICES TO ITS GRANTEES AND SERVING ON THE BOARDS, ADVISORY COMMITTEES OR TASK FORCES OF OTHER CHARITABLE ORGANIZATIONS TO ADVANCE THEIR MISSION. FOR EXAMPLE, IN AREAS SUCH AS ITS SAFETY AND JUSTICE CHALLENGE IN ITS CRIMINAL JUSTICE PROGRAM, ITS PROGRAM REGARDING CHARITABLE WORK IN NIGERIA KNOWN AS ON NIGERIA, THE NUCLEAR CHALLENGES PROGRAM, ITS PROGRAM WORK IN CHICAGO, AND JOURNALISM AND MEDIA, THE FOUNDATION CONVENES MEETINGS FOR ITS GRANTEES, virtually or in person, AND OTHERS IN THE FIELD TO SHARE KNOWLEDGE AND RESEARCH ON WHAT IT AND ITS GRANTEES HAVE LEARNED. THROUGH ITS MACARTHUR ADVISORY SERVICES INITIATIVE, THE FOUNDATION PROVIDES COUNSEL AND ADVICE, FREE OF CHARGE, TO OTHER DONORS REGARDING A WIDE VARIETY OF ISSUES TO HELP THESE DONORS BE MORE EFFECTIVE IN ACCOMPLISHING THEIR CHARITABLE PURPOSES. MACARTHUR STAFF ALSO SERVE ON THE BOARDS, ADVISORY COMMITTEES AND TASK FORCES OF A HOST OF CHARITABLE ORGANIZATIONS TO FURTHER CHARITABLE PURPOSES. REPRESENTATIVE ORGANIZATIONS INCLUDE: FOUNDATION FINANCIAL OFFICERS GROUP, THE TECHNICAL ASSISTANCE GROUP, MISSION INVESTORS EXCHANGE, AND LIMITED NUMBER OF GRANTEES SUCH AS ASIAN AMERICANS IN PHILANTHROPY, HISPANICS IN PHILANTHROPY, COMMUNICATIONS NETWORK, AND CHICAGO AFRICAN AMERICANS IN PHILANTHROPY. IN ADDITION, BASED ON ITS EXPERIENCE AND LEARNINGS ARISING FROM ITS 100&CHANGE INITIATIVE, THE FOUNDATION HELPED CREATE AND LAUNCH A SEPARATE 501(C)(3) ORGANIZATION CALLED LEVER FOR CHANGE. LEVER SERVES AS A TWO-SIDED PLATFORM THAT HELPS CONNECT DONORS TO HIGH-IMPACT PHILANTHROPIC OPPORTUNITIES THROUGH CUSTOMIZED, SPONSORED CHARITABLE AWARD PROCESSES. DONORS SPONSOR CHARITABLE AWARDS AND RECEIVE CUSTOMIZED SUPPORT, RANGING FROM COMPETITION DESIGN TO SOURCING, VETTING, AND DUE DILIGENCE, AS WELL AS POST-AWARD GRANT MANAGEMENT. BEYOND SERVING AS A PLATFORM FOR DONORS TO IDENTIFY IMPACTFUL PHILANTHROPIC OPPORTUNITIES, LEVER FOR CHANGE SERVES AS A LABORATORY FOR DEVELOPING LOW-COST APPROACHES TO CAPACITY ENABLING BY TESTING NEW METHODS WITH A LARGE POOL OF APPLICANTS. LEVER FOR CHANGE ALSO MAINTAINS A DATABASE CALLED THE BOLD SOLUTIONS NETWORK CONTAINING VETTED APPLICATIONS MADE IN CONNECTION WITH VARIOUS PHILANTHROPIC COMPETITIONS MANAGED BY LEVER FOR CHANGE WHICH HELPS FACILITATE ADDITIONAL GRANTS BY OTHER DONORS INTERESTED IN THE SUBJECT MATTER OF THE APPLICATIONS. IN ACCORDANCE WITH A SERVICES AGREEMENT BETWEEN LEVER FOR CHANGE AND THE FOUNDATION, STAFF OF MACARTHUR PROVIDE VARIOUS SERVICES TO LEVER FOR CHANGE. THE FOUNDATION IS THE SOLE MEMBER OF LEVER FOR CHANGE. FOUNDATION STAFF ALSO REGULARLY SPEAK AT CONFERENCES AND PUBLISH PAPERS ON A WIDE RANGE OF ISSUES IMPORTANT TO THE FIELD OF PHILANTHROPY AND TO SHARE THEIR KNOWLEDGE IN AREAS OF IMPACT INVESTING, LEGAL ISSUES, CRIMINAL JUSTICE, AND MANY OF THE OTHER AREAS IN WHICH THE FOUNDATION WORKS. THE FOUNDATION ALSO MAKES AVAILABLE ITS CONFERENCE FACILITIES AT 140 S. DEARBORN FOR USE BY OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR MEETINGS, SEMINARS AND OTHER ACTIVITIES THAT FURTHER THEIR CHARITABLE PURPOSES, WHEN IT IS SAFE TO DO SO IN LIGHT OF THE COVID-19 PANDEMIC. IN 2020, THE FOUNDATION ALSO ISSUED SOCIAL BONDS IN THE AMOUNT OF $125 MILLION TO AUGMENT ITS GRANT MAKING TO RESPOND TO THE COVID-19 PANDEMIC AND TO ADDRESS RACIAL JUSTICE ISSUES. THE NET PROCEEDS OF THE BOND ISSUANCE WERE USED TO MAKE GRANTS IN FOUR CATEGORIES APPROVED BY THE FOUNDATION'S BOARD WITH INPUT FROM EXTERNAL ADVISORS AND FOUNDATION STAFF AND IS IN ADDITION TO THE FOUNDATION'S GRANT BUDGET. IN DETERMINING THE COST OF THE CUMULATIVE DIRECT CHARITABLE ACTIVITIES AS DESCRIBED ABOVE, THE FOUNDATION HAS REASONABLY ALLOCATED A PERCENTAGE OF ITS DIRECT PROGRAM EXPENSES. THE AMOUNTS RECEIVED FROM LEVER FOR CHANGE PURSUANT TO THE MANAGEMENT SERVICES AGREEMENT ARE REPORTED ON PART I, LINE 11. THE COSTS OF THESE ACTIVITIES CONSTITUTE CHARITABLE NON-GRANT EXPENDITURES RELATED TO THE FOUNDATION'S EXEMPT PURPOSE AND ARE REPORTED IN PART I. |
| SUPPLEMENTARY INFORMATION - GRANTS AND CONTRIBUTIONS |
Form 990-PF, Part XIV, Line 3a |
EXPLANATION: IN LIGHT OF INCREASED CONCERNS REGARDING PRIVACY RIGHTS AND THE PROTECTION OF PERSONALLY IDENTIFIABLE INFORMATION THAT THE FOUNDATION MAY HAVE IN ITS POSSESSION, THE FOUNDATION DOES NOT LIST PERSONAL ADDRESSES FOR THE RECIPIENTS OF ITS MACARTHUR FELLOWS AWARDS OR OTHER INDIVIDUAL GRANTS. THE FOUNDATION INSTEAD USES ITS BUSINESS ADDRESS FOR THE LISTING OF THE RECIPIENT ADDRESS. THE FOUNDATION MAINTAINS THE PERSONAL ADDRESSES OF ALL RECIPIENTS OF INDIVIDUAL GRANTS AND WILL MAKE THE INFORMATION AVAILABLE TO THE IRS OR OTHER REGULATORY AGENCIES UPON REQUEST. |
| 2020 Overpayment Credited to 2021 |
Form 990-PF, Part V, Line 6a |
The Foundation is disputing a 2019 overpayment adjustment made by the Internal Revenue Service and believes the adjustment was made in error and is without basis in law or fact as the Foundation does not owe any tax. The Foundation has made repeated efforts to communicate with the IRS regarding this error and is in contact with the Taxpayer Advocates office. The 2020 overpayment amount of $3,888,777 is the overpayment applied to 2021, as filed by the Foundation on its 2020 Form 990-PF. The Foundation has previously provided documentation to the IRS regarding this matter and is prepared to provide such additional documentation as necessary to support its position. It again requests a conference with the Internal Revenue Service to resolve this matter. |
| DIRECTORS & OFFICERS OF AFFILIATED ENTITIES |
Form 990-PF, Part VII, Line 1 |
THE MACARTHUR FOUNDATION FILES A CONSOLIDATED FORM 990-PF THAT INCLUDES HARTSEL RANCH CORPORATION, MACARTHUR HOLDING A, INC., AND MACARTHUR HOLDING B, INC. THE 990-PF ALSO INCLUDES ARC CHICAGO, LLC ("ARC"), A SOLE MEMBER LIMITED LIABILITY COMPANY CREATED IN 2016 BY THE FOUNDATION. THE FOUNDATION IS THE SOLE MEMBER OF ARC AND ARC IS THEREFORE A DISREGARDED ENTITY FOR TAX PURPOSES. JOSHUA MINTZ IS PRESIDENT AND DIRECTOR, KENNETH JONES IS TREASURER AND DIRECTOR, AND EMILY FRIEDMAN IS SECRETARY AND DIRECTOR OF HARTSEL RANCH CORPORATION, MACARTHUR HOLDING A, INC., AND MACARTHUR HOLDING B, INC. THE DIRECTORS AND OFFICERS OF THESE ENTITIES SPEND THE AMOUNT OF TIME NECESSARY TO TRANSACT THE ACTIVITIES OF THE AFFILIATED ENTITIES. THEY DO NOT RECEIVE ADDITIONAL COMPENSATION FOR THEIR SERVICES IN EXCESS OF WHAT THEY ARE OTHERWISE PAID BY THE FOUNDATION FOR THEIR SERVICES TO THE FOUNDATION. JOSHUA MINTZ, DEBRA SCHWARTZ, TRINITA LOGUE, JAMES CASSELBERRY AND JOANNA TROTTER ARE MEMBERS OF THE BOARD OF MANAGERS OF ARC. JOSHUA MINTZ AND DEBRA SCHWARTZ ARE FOUNDATION EMPLOYEES AND DO NOT RECEIVE ADDITIONAL COMPENSATION FOR THEIR SERVICES TO ARC. TRINITA LOGUE AVERAGED ONE HOUR PER WEEK AND WAS PAID $10,000 FOR HER SERVICES. JAMES CASSELBERRY AVERAGED ONE HOUR PER WEEK AND WAS PAID $10,000 FOR HIS SERVICES. JOANNA TROTTER WAS NOT COMPENSATED FOR HER SERVICES. |