11402 ngsworth Avent @ Averre PA Millbrook Road NC 27609 THE FUND FOR DEMOCRATIC COMMUNITIES 1214 GROVE STREET GREENSBORO, NC 2740311402 Hollingsworth Avent & Averre PA 200 W. Millbrook Road Raleigh, NC 27609 919-848-4100 May 28, 2008 CONFIDENTIAL ‘THE FUND FOR DEMOCRATIC COMMUNITIES 1214 GROVE STREET GREENSBORO, NC 27403 Dear Marnie: We have prepared the enclosed returns from information provided by you without verification or audit 990-PF - Return of Private Foundation We suggest that you examine these retums carefully to fully acquaint yourself with all items contained therein to ensure that there are no omissions or misstatements. Federal Filing Instructions ‘Your Form 990-PF for the year ended 12/31/07 shows a balance due of $396. The retum should be signed and dated on Page 13 by an officer representing the organization. Include a check payable to the United States Treasury and write "EIN. 26-0344869, Form 990-PF Balance Due for the year ended 12/31/07" on the check. Mail the return by August 15, 2008 to: Department of the Treasury Internal Revenue Service Center Ogden, UT 84201-0027 Ifa private delivery service is used, mail to’ OsPC 1973 N. Rulon White Blvd Ogden, UT 84404 Also enclosed is any material you furnished for use in preparing the returns. If the returns are examined, requests may be made for supporting documentation. Therefore, we recommend that ‘you retain all pertinent records for at least seven years, In order that we may properly advise you of tax considerations, please keep us informed of any significant changes in your financial affairs or of any correspondence received from taxing, authorities Ifyou have any questions, or if we can be of assistance in any way, please call Sincerely,11402 Hollingsworth Avent & Averre PA11402 THE FUND FOR DEMOCRAT 1214 GROVE STREET GREENSBORO, NC 27403 C COMMUNITIES Department of the Treasury Internal Revenue Service Center ogden, UT 84201-002711442 05/26/2008 1.23 PM Return of Private Foundation uso 528089 rom 990-PF or Section 4947(a)(1) Nonexempt Charitable Trust captnerte-remy Treated as a Private Foundation 2007 ease Note:The endson yb tus oy hes ye eon equate For calendar yar 2007, ortax year bagimning 6/05/07, andending 12/31/07 G Check all that apph XX] initial return [1 Fina return ‘Amended return LT Address change [T Name change Ueetheins | toe nao 7 Employer idrtieaton naar vane 26-0344869 otherwise, | THE FUND FOR DEMOCRATIC COMMUNITIES Teche rrber se pape 10 print | iiinorarcec(@PO tocrunburinateratdabercio tectactiee) | Ronwste | _336~617-5329 ortype | 1214 GROVE STREET See Specitic [ox crom vata, 75 2 cote instructions. | GREENSBORO Ne_27403 H_ Check ype of ganization, [X). Section 51(ex9)exemot private oundaton LL sestion 4947(2(1) nonexempt charitable ust | | Other toxable private foundation EF prite foundation satus as terra I Fairmareetvaie ofall assets at end | J Acouning mates IX] cash [_] Accrual Under eaten a7 OA) ese >O of year {from Par I, co.(), UJ other (epecty) FF fthe foundation isin 2 60-morth termination fine 16) bs 58, 769] (Part column (c) must be on cash bass under ection 5070418), cokers >»O Partl” Analysis of Revenue and Expenses tie |) Reena (@) Deore folanainsincotins 6 ard(d nay notscesary | Semana | UH) Matinee: | fe) Atdnat | exch eau te amos cour sp fests) (co oy 7 Conroe. of gs, ese (ach sched 45,687] 2 cwk [| etcunsson not wutte atach eh 8 4) on aving and trmporey cash invetnats 364 364 364 44 Dien and intrest rom secures Sa Grows rents g | > Netreial income or oss) B | 6a retainer tx) tomse ct amet natant 19,534) $ |b Gross sales price for all assets on tne a 64,621 | 7° copteigam nt come trom Pat 1903) 15,534 8 Net snrttrm capital gin 19,534 8 Income modifications 40a Grose saleslessetuns andalowances | 1b Less: Cost of goods sold © Gross profit or oss) (attach schedule) 11 Other income (attach schedule) 42. Total. Ads nes 1 through 11 65,585) 19, 898| 19,898) 48. Compensation of officers, directors, ruses, ete 14 Other employee salaries and wages 48 Pension plans, employee benefits 16a Lega fees (attach schedule) 'b Accounting fees (attach schedule) © Other pofesoral fee atch sche) a £ B lar imeem B | se rensjoncnsonsi soe tener E [19 Decreciton tach shecie)anddelten Stim 2 378] 5 | 20 occupancy 1, 950) 975 Z| 21 Travel, conferences, and meetings 484 © | 22. Priming ad publications 133 B|23 oneness) Stmt 2 Stmt 3 3,872 131 131 1,287 © |24 Total operating and administrative expenses. 5 ‘Add tnes 13 through 23 6,817] 131 131 2,262 & | 25 contributors, cits, grants pal 0 0 26 Total expenses and disbursements, nes 2420925 6,817| 131 131) 2,262 27 Subtract ine 26 from line 12 4 Excess of revenue over expenses and disbursements 58,768) 1b Net investment income (if negative, erter-0-) 19,767 Adjusted net income (negative, enter 0. 19,767) For Privacy Act and Paperwork Reduction Act Notice, see page 30 of the instructions. Ferm 990-PF (2007)11442 05/28/2008 1:23 PM Form 990-PF (2007), THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 2 Raft Balence Sheets Serafina tase [Ye evan —| my eave Fiat ‘Cash—non-interest-bearing 6,405] 6,406 2 seinen elmer ze.is7| 28/137 & Smsrente Zz 8 Inventories for sale or use Irene ch etc Inesin_copnt bord thn ea) 14° Land bukings, sod equipment bas 25,293 Less: occumdaoddeprecaton atcha) Stmt. 4 1,067 24,226) 24,226 t Ghommtedocte ) rari Anse 59,760| 58,769 7 has ppt and a ea Sera Foundations that follow SFAS 117, check here > 1X) B) 24 Unvestricted 58,768) 8) 26 Permanent rested z Foundations that do not follow SFAS 117, check here» [_] 8] 30. Total net assets or fund balances (see page 17 of the =) 34 Total liabilities and net assetsifund balances (see page 17 _of the instructions) 58,768) Part ill Analysis of Changes in Net Assets or Fund Balances 4 hatin 2 ads [5,768 4 ots turn nlf ie non Pati ca ee sa, 76811442 05/28/2008 1:23 PM Form 990.°F (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 3 PartIV Capital Gains and Losses for Tax on Investment Income (a) tan seb th kre) of rope el (a a ett (),Fexsoqaed | (0) Oxesoqured | (a) Calero |) iy trckoteouse 0 conmon soak, 200 sie MLC Sa) poe (no, day) {t, <9). 97) ta PUBLICLY TRADED SECURIRTIES . ri Depron awed (By Coster eer be Th) Gan eo (0) Grose sates price (eratowade} us exenac of se (2) ars (a 2 64, 621, 45,087, 19,534 » @ Compete only for assets showing galn in coin (had onned by he foundation on 1273469 ) comea momnme OD) Adkste bans () Excaenatoa of! br nstieee San 0 yor 0) Fm seees28109 ee 1258150 rca a aes trom » @ 2. Captal gain nt income or net cata! oss) Voain, aso enterin Pat ine 7 ental (net captal oss) If (oss), enter-O-in Pat | ine 7 2 19,534 43. Net short-term captal gain oF (loss) as defined in sections 1222(5) and (6) Mga ao ern Pat ie colar 0 pagee 101 of eintons). os), eter -O- in Pat | ne 8 3 19,534 PartV__ Qualification Under Section 4940(e) for Reduced Tax on Net investment income (or optional use by comestic private foundations subject othe section 4940(a) ax on net investment income.) If section 4940(6)2) applies, leave this part blank N/A Was the foundation lable forthe section 4042 taxon the carbutable amount of any year inthe base period? —[] ves [[] to If -Yes,"the foundation does ot quality under eaten 4940(). Do nt complete tis pat. “Enter the appropiate amount in each column foreach year, see page 18 ofthe instructions before making any enes ©) ©) © @ ate ps yrs Acjustea quay toons Netvae ct nendhdtabie-weosets tre i otro oer tn ye Dining) (oa (yas ea) 2006 2005 2004 2008 2002 2. Total of ine 1, column (4) 2 3 Average cstibuton rato forthe year base perod dvi the ttl on ine 2 by 5, bythe ‘umber of years the foundation has been in estence less than 5 years 3 4 Enter the net value of nonchartable-use assets for 2007 from Part X. ne 5 4 5 Muti line 4 by ne 3 5 6 Enter 1% of natinvestment income (1% of Pat ine 27) 6 7 dines 5 and 6 1 8. Enter quaiving cistbutons trom Parti, ne 4 8 Ifline@ is equal to or greater than ine 7, check the box Part VI tne 1b, and complete that part sing a 1% tax rate. See the Part Vl instructions on page 18, Farm 990-PF (2007)11442 05/28/ Form 990.PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 4 Part VI__ excise Tax Based on Investment Income (Section 4940(a), 4940(b), £940(), oF 4948_see page 18 of the instructions) 1:23PM 1a Exempt operating foundatonsdesebedin section 4640(0(2,checkhere L] andenter "NIA" on Ine 1 Dat of ang leer, (attach copy of uing letter if necessary—see instructions) > Domest fundatlons ht meet he secton 4640) requirements in Pr V, check 395 rere. [-] and enter 1% of Pat ne 27 Aller domestic oundtons ener 2% of ine 2b. Exe oreign orotizaions ener i ef Pat ne 12, ech) 2 Tacunder scton 51 (deste secon 447(a() sts and taxable cundaton oy. thas ener. 2 ° 3 Add lines 1 and 2 3 395 4 Subtle (ncome) tox (Gomest section 407) tus and able foundations oly. Other enter 0) ‘ 0 5 Tax based on investment income. Subtract line 4 from line 3. If zero or less, enter -0- 5 395 8 CredtePayments: {2007 etna tx payments acd 2008 overpayment ceded to 2007 a 1 Exeteegnorganznone—ix wih at eource eb Tax paid wth epposton for extension of eto le (Frm 886) ee Backup vito ecnecuny thas a 1 Total crete end payment. At ne 6 trough 6a 1 Enter any penalty or urderpeynent of esimaled tax Check bere] i Ferm 220i tached 8 ‘Tax due. If the total of ines 5 and 6 is more than line 7, enter amount owed >is 395 10. Overpayment iflne 7's mar than the tal of nes ad 8, els the amount overpaid > [0 ‘+1_Entertne amount ot ine 10 1 be: Credited to 2008 estimated tox rounded > [11 ParVILA Statements Regarding Activities 1a Durng the tax yee, the foundston eters Inluence any national sie, or cal legisaton ork Yes [ho parte cr erene nen poll capa? we] [x Did spend mere tan $109 cing the es (ther rect orndrety fr pltel purposes (seepage 18 eftheinetuctons fr cefntion)? w| [x ite answers "Yes to ao 1b, tach a detated decison of the acts an cope fay materi pulsed or dstibed bythe foundation n connection wth the ats, athe foundation te Form 1120-0 fr ths yea? se] [x Ener the amount (any) oftxon pica expends (cecton 405) posed ring the yea: (1) Onthe foundation. $ (2) On foundation managers. $ {© Enter the reimbursement (i any) pal By the foundation during the yer or political expenditure tax imposed on foundation managers. $ 2 Has the foundation engaged in any actles that have not previously been reported to the IRS? 2 x es," altach a detailed description of the activites 3 Has the foundation made any changes, not previously reported othe IRS, ins governing instrument, ticles of Incerpration, or bylaws, or other similar instruments? It"Yes,” attach a conformed copy ofthe changes 3 x 44a__Did the foundation have unrelated business gross income of $1,000 or more curing the year? ra x bf *¥ee," has it fled a tax return on Form 990-T for this year? N/A [ap 5 Was herealinidaten, terinaon, dsolstcn oc substan coiacon dur he year? 5 x l1-Yee“atah te statment ete by Genet lnteton 6 Are the requirements of section £08(e) (relating to sections 4941 through 4845) satisfied either «By language inthe governing instrument, of + By slate legislation that effectively amends the govering instrument so that no mandatory directions that Conflet with the state law remain Inthe governing Instrument? 6 [x 7 Did the foundation have at least $5,000 in assets et anytime during the year? IF"Yes," complete Part I, col (6) and Part XV 7[x Ba Enter the states to which the foundation repots or with which itis registered (see page 19 ofthe instructions) > NC 'b_ithe newer i "Yes" to line 7, has the foundation funishad a copy af Form 990-PF to the Atlomey General (or designate) of each state as required by Genel Instruction G? If"No;" attach explanation a» | x 9 _Isthe foundation claiming status as a private operating foundation within the meaning of section 4942()(3) or 4942{)(5) for calendar year 2007 or the taxable year begining in 2007 (see instruction for Part XIV on page 27)? I*Yes,” complete Part XIV 9 |x 410.__Did any persons become substantial contributors during the tax year? "Yes," attach a schedule sting ther names and addresses stmt 5 so |X 5/19 FIP 1 TOT ‘396 Fem 990-PF (2007)11442 05/28/2008 1:23 PM rom 920-9F (007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 ages Part VI-A Statements Regarding Activities (continued) Ta Ary ine aur ye ite ona, ry nay oma eatced eniywne mez of secon SIZBNIGP Ie: ich sched (oe pag of te stale) t| [x by If"es," edhe foundation have a bing wen conte in eect on Aug 17, 2006, covering the inert rents, royalties, and annuities described in the attachment fr line 1187 N/A [4 12 Date eunaton aca a dec orindect eres nay appeabeinsranceconac? 2] x 43._Ddiheeunvatn compl wit the pute mspecton requeens forts anual ers and explo ppt? LX Webate aaivese WwW. £4de.Org 14 The books are in care of » MARNIE THOMPSON Telephoneno. B 336-275-1781 1214 GROVE STREET Locaedat » GREENSBORO, NC zeae 27403 18. Secton 4947())roneremptchartable trust fing Form 00-PF in eu cf Form 1081 Check ere >o nd ere tne avout of tmcerempt ners received or accrued dng the ear > Lis Part VII-B Statements Regarding Activities for Which Form 4720 May Be Required File Form 4720 any item is checked inthe "Yee" column unless an exception applies Yes [ No ta During tne year ithe fundatn (ete ety or riety). (1) Engage nthe sale or exchange, or easing of propery win a sq person? Cl ve Bi no (2) Boro mone m,n mane fo, or arise ete credo or accept on) & dieqaliied person? vee (2) Furnish goods, sere o faci to (x accep them fom) a squad person? ves (#) Pay compensation too ayo remburse te expenses of, «ious person? vee (5) Transfer ony income or ast oa dss pean or ake ny fete vate or trebeneftoruse ot dequaled person)? Ove. (0) Ages to pay money or propery oa goverment ofa? (Exception. Check Nt the feundaton agree tomate a rato ro engin theo fr a per ater termnaon of government serie inating thin 3 69y8) Cl ves b> Iranyaneweris "Yes" to t(t}() cd any the sts a to quay under the exceptions desesbed in Regultons section 3 441(4;3 orn acento regarding dase aesitance (ee page 2 ofthe inten)? Craaizatonsreing on a cuent oc egaring aster asian check here athe foundation engage mar yarn any fhe acs decribed Ta cer han excepted acs hat ‘were not corrected before the first day of the tax year beginning in 2007? N/A [te 2 Taves an are to istiote come (secten 4042) (dos not poy foyer the foundation ws a prate cperting foundation defined in section #84203) or 4420) a Aline end ot tanya 207 ihe eunton nave ny usted ncome (nes 6 an Ge, Pal) fora yer) begining bee 20077 ives"isttheyears 20 «2D 20S, 20 > Aretrere any year sen 2 for ch he foundation not sping the prin of section 45428)2) (rain onceret vation of sot) he ears nde income? i ppg Seton 4242)2) to all years listed, answer "No" and attach staternent—see page 22 of the instructions.) N/A | ab the prisons of secon 442()2) are being app to any ofthe yeast in 2m, bt eye's ee. oD $a Dithe fan od ne thon a 2% dec orinitetitereatin any business erie aay tine ding the year? bb i¥ee, did Rave excess business Hoke in 2007 asa resi of (1) ay purchase by he fundstono dlequaiid persons aner ay 28, 16, (2) he peo te Sear pertod(rnge pero approved by he Conmisone under secon 49430) to dapose of holdings acquired by git or bequest or (2) the pee ofthe 10,5 or 20 year rst pas hoking period? (Use Schedule , For 4720, to determine Ifthe 4b foundation had excess business holdings in 2007.) N/A | 3b 442 Did the foundation invest during the year any amount in a manner that would jeoparcze I's charitable purposes? 4a x 1b Did the foundation make any investment in prio year (but after December 31, 1969) that could jeopardize its chartable purpose that had not been removed from jeopardy before the fst day ofthe tax year beginning in 2007 a x Form 990-PF (2007)11442 05/28/2008 1:23 PM Fomor 007) ‘THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 age 6 Part VI-B Statements Regarding Activities for Which Form 4720 May Be Required (continued) a Duting the year cd the foundation payor incr any amount (1) Canyon propaganda, octenvse attempt uence legion (econ 4945(e)? J Yee [no Influence the outcome of any specie ble eecbon ate secon 4955); ot cat on, ciety or vey, ay voter retrain si? q Yes a No No @ (8) Provide grant oan au foal t,o ter snr purposes? vee (6) Prone gant oan rganzatn cer han acerbic, ee, rgnzaton described in ston 50a), 2, oF), or secon 494082} (seepage 22 fe nsttons) C1 ves Provide for ay purpose oe thn eigivs chal, tei, era or eciatoralpurpoes ofthe prevention of rua to chien or anmale? C1 ves b> anyanaver "Yes fo a(S). al ay ofr ranean flo aly uns the exception described in Roglaion secon 53 4945 or na cuentnooerqacng dase assistance (ee page 2 of tensions)? Organization reing ona cuent oce eparing aster asian check here the ansverls"Ye" to queston Sa, Goes the foundation clam exemption om he ax becouse mainained expen espostity forte gran? N/A (] ves ives" tach statenert reed by Repltons section 53 45485), 6a Oi ine foundation, cringe year, eee ay funds, dct arnt, pay premiums ona persona beef contac? C1 ves dite tundaton, cra the year, pay premiums det oindrect, on persona benef ona? w| |x ityouansnered"Yeso 0, also fe Fo 2670 7a Atany te ring te tox er asthe foundation a pay oa probe x sheer tanscion? Cv no b__ If yes, did the foundation receive any proceeds or have any net income attributable to the transaction? N/A | 7 Part Vill Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employees, and Contractors 7 Lisl ofcrs, electors, ustes, foundation managers and lr componsaton (eo page 3a th nswuton) 6) 5 (0) THe and average [(e) Commaneston [EL ETEEIE | ye) Spare (2) Name and access ous Sea | not pat emer | meyer escent, | ISGP, o apices etn ih Pig eles | "Sitar 2 Compensation of five highest-paid employees (other than those included on line +—see page 23 ofthe instructions), none, enter “NONE.” a) Convene (0) Te ana avereae savestens 2 (e) Expene (0) Name ara access ofeach emptyee pis more han $5,000 MInousgerwese | (2) Conpereaon | STODIG beat, | set her ‘otal numberof other employees paid over $50,000 >| Form 990-PF (2007)11442 05/28/ 23PM Form 990.PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page? Part Vill Information About Officers, Directors, Trustees, Foundation Managers, Highly Paid Employ and Contractors (continued) 3 Five highest-paid independent contractors for prof ional services (see page 28 ofthe instructions) none, enter NONE, [iar antares teach person pac more han $50,000, (b) Type stows (e)_Sonparstion ‘NONE ‘otal number of others receiving over $50,000 for professional sewvices >I PartIX-A Summary of Direct Charitable Activities ist the foundations four gest drectcharsble acts during the tax year Include retvant taistoal information such a he number S ‘ferganators and ober beneares served confetenece comered esearch papers Bogue, et Spencer 7 PROMOTION OF GRASSROOTS DEMOCRACY -- GRANT MAKING, COMMUNITY DISCUSSIONS, YOUTH GROUPS, ETC. 2,262 2 3 4 PartiX-B Summary of Program-Related Investments (see page 24 of the instructions) (Describe the wo bigest program ated mestments made by the foundation dung he tx year on nes 1 anc 2 ‘aeunt 1 N/A 2 ‘lather prograelate investments. See page 24 ofthe inauictons 3 Total, Add lnes 1 through 3 > Fon 990-PF (2007)11442 05/28/2008 1:23 PM Fon 960-PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 8 Part X ‘see page 24 of the instructions.) Minimum Investment Return (All domestic foundations must complete this part, Foreign foundations, 6 Fair market value of assets not used (or Meld for use) drecty in carrying aut charitable, etc, purposes: Average monthi fait market value of secures Average of monthly cash balances, Fair market value of all cher assets (see page 25 ofthe instructions) Total (add ines 1, b, and.) Reduction claimed for blockage or other factors reported on fines 18 and 46 (attach deta explanation) te | ‘Acquistion indebtedness applicable otne 1 assets ‘Suatract ine 2 from tne 16 Cash deemed hed for charitable aces. Enter 11/23 of ine 3 (for greater amount, see page 25, of the intuctions) Net value of nonchatitable-use assets, Subtract line 4 rom line 3, Enter here and on Pat V, tne 4 Minimum investment return. Enter 5% of ine 5 tb 22,718 10 22,718 22,718 341 22,377 6 644 Part Xi Distributable Amount (see page 25 of th foundations and ceitain foreign organizations check here __b»_X|_and do not complete this part) structions) Secton 49425)6) end GNS) priate opereing Minimum investment retum from Part X, ine 6 ‘Taxon investment incame fot 2007 from Patt VI, ine 5 | za Income tx for 2007. (This does no ince the tax fom Part Vi.) [ap Add lines 2a and 2b Distributable amount before adjustments, Subtract ine 2c from line 1 Recoveries of amounts treated as qualifying distributions Add lines 3and 4 DDeduetion from distributable amount (see page 25 ofthe instructions) Distributable amount as adjusted, Subtract line 6 from line 5. Enter here and on Pat Xi, line 1 > Jo Ju Jef Part Xil Qualifying Distributions (see page 26 of the instructions) ‘Amounts paid (including administrative expenses) fo accomplish chaiabe, ete, purposes! Expenses, contributions, gis, ee—total from Pat |, column (), tne 28 Program-elted investments—toal fom Part DB ‘Amounts paid to acquire assets used (or held fr use) crecty in carrying out chartable,et., purposes Amounts set aside for specifi charitable projects that sats the ‘Suitably test (prior IRS approval required) Ccash distribution test (tach the required schedule) Qualifying distributions. Add lines 1a through 3b. Enter here and on Pat V, line 8, and Part Xil ine 4 Foundations that quality under section 4940(e) fr the reduced rate of taxon net investment income Enter 1% of Par | line 27b (ee page 2 of the instructions) Adjusted qualifying distributions, Subiract ine 5 from ine 4 Note: The amount online 6 wil be used in Part V, column (b), In subsequent years when calculating whether the foundation qualifies forthe section 4940(e) reduction of taxin those years. 2,262 tb 2,262 ° 2,262 Form 990-PF (2007)11442 05/28/ Form 980-PF (2007), 1:23PM THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 9 Part Xill Undistributed Income (see page 26 of the instructions) 1 Distributable amount for 2007 from Part XI, line Uneistrouted income, if any. a8 ofthe end of 2008: Enter amount for 2008 only @ corpus e Years rie to 2 o 2008 @ 2007 'b Total for prior years: 20 20, 3 Excess astributions cartyover, if any fo 2007: ‘From 2002 b From 2003 © From 2004 From 2005 From 2008 Total of ines 3a tough & 4 Qualifying cstibutions for 2007 from Pert Xi, lined: mS {Applied to 2006, but not mor than tne 23 1b Applied to undistinuted income of prie years (Election required—see page 27 of te instructions) ‘Treated as dstrbutions out of corpus (Election required—see page 27 of te instructions) Applied to 2007 distributable amount © Remaining amount cstrbuted out of corpus 0 Excess distributions caryover applied to 2007 (fan amount appears in column (4, the same amount must be shown in column (2)) Enter the net total of each column as indicated below: Corpus. Add ines 3,4, and 4e. Subtract ine S Prior years’ undietibuted income, Subtract line Ab fram tne 20 Enter the amount of prior years’ undistributed Income for which anatice of deficiency has been issued, or on which the section 4942() tax has been previously assessed ‘Subtract ine 6e from line 6D. Taxable arsount—see page 27 of the instructions Uneistrinuted income for 2008, Subtract ne 4a fom tine 22, Taxable amount—see page 27 ofthe instructions. Uneistriouted income for 2007. Subtract ines 4d and 5 rom tne 1. This amount must be letruted in. 2008, Amounts treated as cistriouions out of corpus to satistyrequlements imposed by section ‘170(0)1)(F) or 4942(9)(3) (see pege 27 of the Instructions) Excess cstribtions caryover om 2002 not applied online § o ine 7 (See page 27 ofthe instructions) Excess distributions carryover to 2008. ‘Subtract ines 7 and 8 from line 6a Analysis of ine & Exoess from 2003 Excess from 2004 Excess from 2005 Excess from 2006 Excess from 2007 Farm 990-PF (2007)FémodeeFGode) HE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 10 Part XIV Private Operating Foundations (see page 27 of the instructions and Part VII-A, question 9) 18 » 2a If te foundation has received aruing or determination letter that itis @ private operating foundation, and the ruling is effective for 2007, enter the date of the ruling > 06/05/07 CCheck boo ndcate vineher the foundations private operating foundation deserbed in section [R) aaaagyer [| aoa) Enter te lesser of the adjusted net Taxyear Pio 38 Tou! income from Paro the minimum (a) 207 mm (e) 2005 (@ 2008 investment retum fom Part X for cach year listed 644 644 85% ofline 2a 547 547 uaivng distributions rom Pet XI line 4 foreach year listed 2,262 2,262 Amc incadedi ne 2 ol wed ey fer azine condut of exeret aces Qualifying distributions made directly for active conduct of exempt actites ‘Subtract ine 2d rom Ene 2e 2,262 2,262 Complete 32,8, oF € for the aitematve test relied upon: "Assets" aerative test—eter: (1) Value of all assets (2) Value of assets qualiying under section 4942()3)(8)0) "Endowment aller een 26 of ririenam investment tun shown in Part ne Br each ea listed 429 429 ‘Suppent” altemative test enter: (1) Total support other than gross investment income interest, dividends, rents, payments on ‘securtes loans (section '512(a)(6), or royates) Suppest from general pubic ‘and 5 of more exempt ‘organizations as provided in section 4942(9(9)(8)) (@) 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 page 28 of the instructions.) Information Regarding Foundation Managers: Ls any managers ofthe foundaton who have contributed more than 2% ofthe ttl contibutions received by the foundation bets the case of any tax year (but any if they have contauted more than $5,000). (See section £07(6)2)) See Statement 7 Lt ny manager of te tounaton wa oom 10 orf ate lok a agra (an ely ge prin ea cnmersi of prershp or oe ent) of hin he endo aso 10% reser nerest N/A Inlormation Rearing ontbution, Gant, Gf, Lan, Scolari, ee, roars Check hare P| | Ite toundaton cn males contadene to pected chara gelatons and doesnot sce unsold equ ein, the oundton rakes ite, gran, ee (ee page 28 he netone) onc or oxgantzoena under ha cocoa, cong lara 2,2, ad Te ane adfes, en elephone number he person o whom piston sau be adel N/A The form in which applications should be submited and information and materials they should ncude: N/A ‘Any submission deadlines: N/A ‘Any estictons or imitations en awards, such as by geographical areas, chartable fields, Kinds of institution, or other facors N/A Farm 990-PF (2007)11442 05/28/2008 1:23 PM Form 990-PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 11 Part XV___ Supplementary Information (continued) 3. Grants and Contributions Paid During the Year or Approved for Future Payment Recipient inaret nace apatten ewe ctgert| aga Name and address (home or business) oF fubetntis contr “ 2 Paid dug the yar N/A Taal Ee © Approve ore parent N/A Taal be Form 990-PF (2007)11442 05/28/2008 1:23 PM Form 990.PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 12 Part XVEA Analysis of Income-Producing Activities Enter gross smounts unless otherise indicated ‘Uneated bances nears | Sed osc S12 69 or Be C Ralted or arp ® & fo, a ‘unctan come sites code saasour eigen aunt (Scnmge ss 41 Program sence revenue oe theinstucters) ‘9 Fees and contracts rom government agencies Membership dues and assessments Interest on savings and temporary cash investments 1a 364 Dividends and interest from securities Net rental income or (loss) from realestate ‘9 Debtnanced property bb Not debt-tinanced property Net rental income or (oss) ftom personal property Othe investment income Gain or (oss) fom sales of assets other than inventory 1a 19,534 Net income or (ass) trom special events 410. Gross profit or (oss) from sales of inventory 114 Other revenue: a » ‘ 42 Subiotal Add columns (6). (and (@) q 19,898) 0 48 Total, Add ine 12, columns (), @), ana (e) ‘See workshee in line 13 instructions on page 29 to verify calculations Part XVI-B Relationship of Activities to the Accomplishment of Exempt Purposes Line no, | Exltia below how each activ fr which income i reported in column (eof Part XVL-A contiouted importantly to ‘s the accomplishment ofthe foundation's exempt purposes (other than by providing funds fr such purposes), (See 1029 ofthe instructions 18 19,698 N/A11442 05/28/2008 1:23 PM Form 990.PF (2007) THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Page 13 Part XVil__ Information Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations 7 Bi the rprizaton rector indirectly ngage i ary ofthe otowng wih any ae erganiaen eased Yes [no in section 501 ofthe Code che than secon 50163) eroantatins) orn scton 527, relating opted cngeraao? 4 Transters fom the reporting fourdaton toa noncharable exempt organization of: (1) Cosh acm] | x (2) Omer ascets fal [x Other ransactons (1) Sais of ses to a nonchartale exept ganization hm] | x (2) Parchases of assets rom a nanchareabe exempt erganizaion fwe| [x (2) Renta of acts, equipment, o other assets ho] [x (8) Reimbursement arrangements fx | [x (©) Leans or on guarantees hoe] [x (6) Perormanceofsenices or membership orundasngsotatins fen] [x ‘Sharing of faces, equlpment, mang Hs, other assets of pad employees 4c x 4 the enowerto any ofthe above is "Yes, complete the folowing schedule. Column (b) shoul! nays show te fa market Value ofthe goods, other assets of services ghen by the epoting organization Ihe foundaon recived les than fa market, val in ny transaction osharng rangement, showin column (the value fhe goods, cer assets, or eanices rece, N/A 2a 1s the foundation dea orndret affliated with, or elated to, one or more ax exempt organizations desea secon 501) ote Code (ter han eatonS01(e) &nsacton 527? 1 ves &} no "Ves," complete he folowing schedule (a) hare of eqn (0) Tyagi (Desai a eo NZ Under pratine poy | deca fe oaried sun, rng mor garig wanderer woe bel omy kr rd Dale see caret ahd cong Guarana Sepa Wan ary ofall) Saeed ano resale Wh epee fos ary encape > PRESIDENT |) anna ame Oi ite 3 Date Pregare’s SSN or PTIN = check Signature on pe S0 | S52 | Prevaers » setenoioed > (1) cite intucters) | 388 | satse 200280366 £8 [Fmisrnegyan? Hollingsworth Avent & Averre PA sefenpiyed, odie: Pj200 W. Millbrook Road fy 56-2119415 Raleigh, NC 27609 ‘ness 919-848-4100 Form 990-PF (2007)11442 05/28/2008 1:23 PM Schedule B (Form 980, 980-£2, Schedule of Contributors Name of organization Employer identification number THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 ‘Organization type (check one): Filers of Section: Form 960 or 980-62 [sony >) (enter number organization [J 4247(0)1) nonexemptchartabe trust not rested as a private foundation (1 827 politcal organization Form 960: F FX) 501(¢)3) exempt private foundation [5 4247(0)1) nonexempt chartabe trust treated 2 2 private foundation 7 50142). taxable private foundation ‘Check if your crganization Is covered by the General Rule or a Special Rule. (Note: Only a section S01(€\), (8), or (10) ‘cxganization can check boxes fr both the General Rule and @ Special Rule—see instructions) General Rule— IH Fer xearzotons ting Fx 90, 90-2, o 90-PF hat eeved ug the er, 8,00 er mre a mane or oer om any ne cont (Compa Pas and) Special Rules For a section 501(¢)3) organization fling Form 980, or Form S60-£2, that met the 33 1/3% support test ofthe regulations under sections 509(2)1)1 70(0)1)(A)W), and received from any one contributor, during the year, a contribution ofthe greater of $5,000 of 2% ofthe amount on ne tof these forms. (Complete Parts | and!) For a section 501(¢)7), 8), (10) organization fing Form 960, or Form 980-E2, that received from any one contributor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for reigous, charable scientific, trary, or educational purposes, othe prevention of cruelty to chien or animals, (Complete Pars I I, andl) For a section 501(6)7), 8), © (10) organization fing Form 960, or Form 980-E2, that received from any one contributor, during the year, some contributions for use exclusively for religous, chartable, etc, purposes, but these contributions did rot aggregate to more than $1,000. i this box is checked, eter here the total contribution that were received during the year for an exclusively religous, chartable, et, purpose. Do not complete any of the Parts unless the General Rule {eppiies to this organization because it received nonexclushvely religious, charitable, et. contributions of $5,000 or more during the year) ms Caution: Organizations that are nat covered by the General Rule andlor the Special Rules do nat fle Schedule B (Form 990, {980-£2, or 90-PF), but they must check he box inthe heeding oftheir Form 990, Form 980:EZ, of online 2 oftheir Form {80-PF, o certily that they donot meet the fling requirements of Schedule B (Form 960, 990-E2, or 990-PF) perwork Reduction Act Notice, se the Instructions ‘Schedule B (Form 890, 980-E7 or 990-PF) (2007)11442 05/28/2008 1:23 PM ‘Schedule B (Form 990, 090-£7, of £60-PF) (2007), Name of organization Page 1 of 1 ofPartt Employer identification number THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Part! Contributors (See Specific Instructions.) @ ©) © @ No. Name, address, and ZIP + 4 Aggregate contributions ‘Type of contribution STEPHEN JOHNSON Person 712 SOUTH ELAM AVENUE Payroll 8 32,311 | Noncash GREENSBORO NC_27403 (Complete Parti it there is a noncash contribution) @ ©) @ @ No. Name, address, and ZIP + 4 Agaregate contributions ‘Type of contribution 2 MARNIE THOMPSON Person 712 SOUTH ELAM AVENUE Payroll 5 32,310 | Noncash GREENSBORO NC_27403 (Complete Part if tere is «a noncash contribution) @ ©) o @ No. Name, address, and ZIP +4 Aggregate contributions Type of contribution Person Payroll 8 Noncash (Complete Parti itthere is a noneash contribution) @ ro) © @ No. Name, address, and ZIP + 4 Aggregate contributions ‘Type of contribution Person Payroll 8 Noncash (Complete Part i there is a noncash contribution) @ ro) © @ No. Name, adaress, and ZIP + 4 Aggregate contributions Type of contribution Person Payroll 8 Noncash (Complete Parti it there is « noncash contribution) @ ©) © @ No. Name, address, and ZIP + 4 Aggregate contributions Type of contribution Person Payroll 8 Noncash (Complete Par iit there is a noncash contribution) ‘Schedule B (Form 890, 950-E2, or 980-PF (2007)11442 05/28/2008 1:23 PM ‘Schedule B (Form 990, 090-£7, of £60-PF) (2007), Page 1 of 1 ofpart Name of organization Employer identification number i 18,471 7/23/07 from be: tion of ®) bh FMV (or estimate) Dat a) a HALLIBURTON CO HLDG COMMON STOCK iL 13,840 from Description of noncash property given FMV (or estimate) Date received 2 18,471 7/23/07 2 13,839 11/02/07 from be sion of ) bh ‘ FMV (or estimate) pat a) 4 ‘Schedule B (Form 890, 950-E2, or 980-PF (2007)rom 4562 Depreci 11442 06/28/2008 1:23 PM n and Amortization (Including Information on Listed Property) Deparment ofthe Treasury Seve oenice > Soe separate instructions. _ Attach to your tax return. 2007 Siete 67. ‘ara tao anti Iaeniving number THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 ness or cvty wri a om tes Indirect Depreciation Partl Election To Expense Certain Property Under Section 178 Note: If you have any listed property, complete Part V before you complete Part | “1 Madmum amount. Soe the intuctons fora higher int for certain ueinesses + 125,000 2. Tota cost of section 178 property placed in service (ee instructions) 2 3. Threshold cost of secton 179 property before eduction in tation 2 500,000 4 Reduction in iitton. Subtract ine 3 rom ine 2. zero ols, enter-0 4 5_Dolr iia tax yo ubtacting from ine 210s, ee. maid ing spacey cee istuchone . (2) session per () coe ousrersussenyi[ fe) let cet g 7 Listed property. Enter the amaunt from line 28, iz 8 Total lected costo section 179 propery. Ad amounts in column (c), Ines 6 and 7 @ 9 Tentative deduction. Enter the smallr of ine 5 or ine 8 ° 40 Caryorer of esalowed deduction rom ine 13 of your 2006 Form 4562 10 ‘11 Business income imitation, Ener the smal of business income (ol ss than ze) o ne 5 (se instructions) “4 412 Section 179 expense deduction. Ad lines 9 and 10, but donot enter more than ine 11 2 43__Carryover of disallowed decuction to 2008, Add lines 9 and 10, less ine 12, > [as] ‘Note: Do nat use Par I or Pat Il below fr listed property. Instead, Use Part V. Partll Special Depreciation Allowance and Other Depreciation (Do not include listed proper ‘See instructions.) 44 Special allowance for qualified New York Liberty or Gulf Opportunity Zone property (ther than listed proper) an cellos bamasssthanol lant ropety laced in sence tng the tax year (see rsrction) “ 18. Propery subject to secon 168K) election 15 416 _ Other deprecation (netudng ACS 16 Part iil MACRS Depreciation (Do not include listed property.) (See instructions. Section 17 MAGRS deductions for assets placed in sxvce in taxyears begining before 2007 @ 0 Section &-Asses Paced in Service During 2007 Tax Year Using the General Depreciation System ‘B. Motard | (e) Bassi cxpeaton fay Reso (0) cieecion ret WRegures™ | apesctratectine [S| ce) comerin |e we | (@) Drecnton cedten ea Syearpepaty Sea roprty 7,567|_5.0| MQ | 20008 378 Tea propery 4 0.jearpopey e 15-year property 120 ear rope Tar zs year propery 3 a 1 Resident eral zsye_| wan St property 275y_ | _Ma si 7 Nonresident el sys | MM sik propery oa Si Section 6 Assets Placed in Service Dring 2007 Tax Your Using the Alerative Deprei a _Cansite Si b12year @ st ¢d0year yrs sit PartiV___ Summary (see instructions) 21 Usted prope Enter amount om ine 26 zi 22 Total. Ad amounts rom ne 12, nes 14 trough 17 nes 19 and 2 in clu (gan ine 2 Enter here and on the appropriate lines of your return. Partnerships and S corporations-see instr. 2 378 23 For aust show above and placed inservice tg the cue yer, ter th portion fe bass arab to secon 269 costs 2 or Paperwork Reduction Act Notice, see separate instructions. rom 4582 c207“PRE’EOND“FOR DEMOCRATIC COMMUNITIES 26-0344869 fom a2 07 cage 2 Part V Listed Property (Include automobiles, certain other vehicles, cellular telephones, certain computers, and property used for entertainment, recreation, or amusement.) Rote Fo" oy esearch you ae using te inns rleege ae or deducting ease expense, complet only 23ea, 24, columns (a) though (C) of Sesion A, all of Saction snd Section i applicable P Section A Depreciation and Other Information (Caution: See thentrtions for ints for passenger aufoTiobIos) 24a_Do your wuiroet sere bsteanvmert se core?” | [Yes | [No | 24b_irVes-is the evidence witon? Tes We n © lh © © © ®) a ® Tipedprepat| osefaredn | eee! | confine | aansteomcion resmey | stow | cepecaton ean 28 Special aowance for qualified Gulf Opportunity Zone property placed in Service during the tax year and used more than S0% in a quaifed business use (see instructions) 25 26__ Property used more than 50% in qusliied business use: 27 Property used 60% or less na qualified business use sil sil 28 Add amounts in column (h), nes 25 through 27. Enter here and on line 21, page 1 Las 28 Add amounts in column (line 26. Enler here and online 7, page 1 2 Section B-information on Use of Vehicles Complete ths section fr vehicles used by a sole proprietor, partner, or other “more than 59% over,” or related person. I you prouded veholes ta your employees, fret answver the Questions in Section C to see You meet an exception to completing thie section for those vehicles, 30. Total businessiinvestment mies arven @ © o @ @ o during the year (do not include commuting verse vewoe2 | vances | _veniiea | venwies vehicle 6 ries) 31 Total commuting miles driven during the year 32, Total other personal (noncommuting) miles driven 33. Total mies driven ducing the year. Ads lines 90 trough 32 34 Was the vehicle avallabe for personal yes | wo | Yes [no | Yes [no | Yes | No Yes | No | ves | No Use during off-dity hours? 38 Was the vehicle used primarly by 2 more than 5% owner or related person? 26 _Is another vehicle avalabe for personal use? ‘Section C-Questions for Employers Who Provide Vehicles for Use by Their Employees ‘Answer these questions to determine it you meet an exception to completing Section B for vehicles used by employees who are ‘ot more than 5% owners or related persons (see instructions). Yes | wo 37 Do you manana writen poly statement that profs al personal use of vehicles, including commuting, by your employees? 38 Do you maintain a writen poly statement that pris personal use of veces, except commuting, by Your employees? Seethe instructions for vehicles used by corporteofcers, decors oF 1% or more owners 28 Doyo treat al use of vile by employees as personal Use? 40 Do yu provide more than fe vehicles to your employees, tin information rom your employees about the use ofthe vehicles, and tan the fran receed? 41 Doyou mest the requtements concerning qualified automobile demonstration use? (See instructions) Note: I your ansieto 37, 38, 39, 4, or 4 Is "Yes," do nol complete Section & forthe covered vehicles. PartVI Amortization © ©) © | anotenton oO a oate atten vate Core | “Post Avarizaton er Deaton ore roan wae | pete od {=2_Amortanton of ost hat gins during your 2007 tax year (ee nsucions) START UP COSTS 6/05/07 17,726, 195| 15.0 689 {8 Amortzton of ost hal began bore your 2007 tax year a 444 Tota, Ad amounts in column (See the instructions for where 0 report a 685 Foon ABBR caer11442 THE FUND FOR DEMOCRATIC COMMUNITIES 26-0344869 Federal Statements FYE: 12/31/2007 5/28/2008 1:23 PM Statement 1 - Form 990-PF, Part |, Line 19 - Depreciation Desc Date Cost PY cy Net Investment Adj Net Acquired Basis Depr Method Life Depr Income Income COMPUTER & SOFTWARE EQUIPMEN’ 10/20/07 $ 1567 $ 5 8 $ Total 1,567 § 0 8 § oO Desc Date Cost PY cy Net Investment Adj Net Acquired Basis ‘Amort Life Amort Income Income _ COGS START UP CosTs 6/05/07 § 15 8 Coe 8 Tota $ 0 8 689 5 0 1211442 THE FUND FOR DEMOCRATIC COMMUNITIES 5/28/2008 1:23 PM 26-0344869 Federal Statements FYE: 12/31/2007 Statement 3 - Form 990-PF, Part |, Line 23 - Other Expenses Net Adjusted Charitable Description Total Investment Net Purpose Expenses WEB SERVER EXPENSE INCORPORATION & N OUTSIDE CONTRACTOR BOOKS, SUBSCRIPTIONS POSTAGE, MAILING SERVICE SUPPLIES TELEPHONE BANKING FEES Total $11442 THE FUND FOR DEMOCRATIC COMMUNITIES 5/28/2008 1:23 PM 26-0344869 Federal Statements FYE: 12/31/2007 ‘Statement 4 - Form 990-PF, Part I Description ine 14 - Land, Bui and Equipment Beginning End End Accum Net Fair Net Book _Cost/Basis Depr Mikt Value BQUT $ $ 7,129 $ $ 6,751 438 438 17,726 17,037 ACCUMULATED DEPRECIATION 378 ACCUMULATED AMORTIZATION Total11442 THE FUND FOR DEMOCRATIC COMMUNITIES, Federal Statements 26-0344869 FYE: 12/31/2007 Name Statement 5 - Form 990-PF, Part VILA, 1e 10 - Substantial Contributors Address GROVE STREET City, St Zip 5/28/2008 1:23 PM11442 THE FUND FOR DEMOCRATIC COMMUNITIES, 5/28/2008 1:23 PM 26-0344869 Federal Statements FYE: 12/31/2007 Statement 6 - Form 990-PF, Part Vill, Line 1 - List of Officers, Directors, Trustees, Etc. Name and Average Address Title Hours Compensation Benefits Expenses MARNIE THOMPSON PRESIDENT 40 0 0 0 1214 GROVE STREET SREENSBORO NC 2 ED WHIT DIRECTOR 40 0 ° 0 1214 GROVE GREENSBORO SABRINA ABNEY DIRECTOR 2 0 ° 0 214 GROVE STREET INSBORO NC 27403 2 0 ° 0 DIRECTOR 2 ° ° 0 1214 GROVE STREET GREENSBORO NC 27403 JONATHAN HENDERSON DIRECTOR 2 o ° 0 1214 GREENSBORO NN JOHNSON DIRECTOR 2 0 ° 0 ROVE STREET GREENSBORO NC 27403 MUKTHA JOST DIRECTOR 2 0 ° 0 1214 GROVE STREET GREENSBORO NC 27403 KYLE LAMBELET 2 0 ° 0 214 GROVE STREET NICLOLE LAMBELET DIRECTOR 2 0 0 011442 THE FUND FOR DEMOCRATIC COMMUNITIES, 5/28/2008 1:23 PM 26-0344869 Federal Statements FYE: 12/31/2007 Statement 6 - Form 990-PF, Part Vill, Line 1 - List of Officers, Directors, Trustees, (continued) Name and Average Address Title Hours Compensation Benefits Expenses 214 GROVE STREET GREENSBORO NC 27403 ENZO MEACHUM DIRECTOR 2 0 ° 0 ROVE STREET 27403 2 ° ° ° 214 GROVE STREET GREENSBORO NC 27403 STEVE SUMMERFORD DIRECTOR 2 ° 0 0 4 GROVE STREET GREENSBORO NC 27403 JOYA WESLEY DIRECTOR 2 ° ° ° 1214 GROVE GREENSBORO NC11442 THE FUND FOR DEMOCRATIC COMMUNITIES 5/28/2008 1:23 PM 26-0344869 Federal Statements FYE: 12/31/2007 ‘Statement 7 - Form 990-PF, Part XV, Line 1a - Managers Who Contributed Over 2% or $5,000 Name of Manager Amount STEPHEN JOHNSON 32,311 MARNIE THOMPSON 32,310 Total 64,621