21
Form 990-PF Department of the Treasury Inte rnal Revenue Service (77) Return of Private Foundation or Section 4947( aXl) Nonexempt Charitable Trust Treated as a Private Foundation Note : The foundation may be able to use a copy of this return to satisfy state OMB No 1545-0052 2008 For calendar year 2008 , or tax y ear be g innin g , 2008 , and endin g I G Check all that apply. Initial return Final return Amended return Address chan g e Name chan ci e Use the A Employer identification number IRS label. FRANEY FAMILY FOUNDATION, INC. 52-1909081 Otherwise, print 9901 BUSINESS PARKWAY B B Telephone number (see the instructions) ortype. J,^NHAM, MD 20706 800-638-2028 See Specific Instructions C If exemption application is pending, check here D 1 Foreign organizations, check here H Check type of organization. Section 501 (c)(3 exempt private foundation 2 Foreign organizations meeting the 85% test check Section 4947(a)(1) nonexempt charitable trust Other taxable p rivate foundation , here and attach computation 0. Fair market value of all assets at end of year J Accounting method K Cash Accrual E If private foundation status was terminated 11. (from Part Il, column (c), hne 16) Other (specify) under section 507(b)(1 )(A), check here $ 1, 016, 650. _ _ _ _ __ _ _ _ _ _ _ _ (Part 1, column (d) must be on cash basis) F If the foundation is in a 60-month termination under section 507(b)(1)(B), check here 0. PartI Analysis of Revenue and Ex p enses total of amounts in a Revenue and () (b) Net investment (c) Adjusted net (d) Disbursements columns (b), (c), and (d) may not neces- expenses per books income income for charitable sarily equal the amounts in column (a) purposes (cash basis only) see the Instructions) ) 1 Contributions, gifts, grants. etc. received (aft sch) 120 , 318 , 2 Ck 0' F1 if the foundn is not req to aft Sch B 3 Interest on savings and temporary cash investments 1, 684. 1, 684. N/A 4 Dividends and interest from securities 26 , 320 . 26 , 320. 5a Gross rents b Net rental income or (loss) R 6a Net gain/(loss) from sale of assets not on line 10 94, 116 b Gross sales price for all 174 459 E , . assets on line 6a V 7 Capital gain net income (from Part IV, line 2) 94 , 116. E N 8 Net short-term capital gain U 9 Income modifications E 10a Gross sales less returns and allowances b Less Cost of goods sold c Gross profit/(loss) (aft sch) 11 Other income (attach s dule) STA EMENT 1 -1 , 928. 12 I I e 1 h 11 240 - 510. 122 120. c 1 ompensation of officers, dire trustees, etc @-'^ ^ ^^ T% e ?^0m and 1 P , Pl I n , emplo eneflts LII a Le al fees (attach sc - A g M atta h c^i) S E ST 2 2 , 870. 2,870. 1 N C 17 Interest T 18 Taxes (attach schedule) SEE STMT 3 3,479. A 19 Depreciation (attach T sch) and depletion v 20 Occupancy E 21 Travel, conferences, and meetings A E 22 Printing and publications N X D 23 Other expenses (attach schedule) E SEE STATEMENT 4 71. E 24 Total operating and administrative s expenses . Add lines 13 through 23 6 , 420. 2,870. 25 Contributions, gifts, grants paid PART XV 224 500. 224 , 500. 26 Total expenses and disbursements. Add lines 24 and 25 230, 920. 2 , 870. 224 , 500. 27 Subtract line 26 from line 12: a Excess of revenue over expenses and disbursements 9,590. b Net investment income (if negative, enter -0-} 119 , 250. 1 C Adjusted net income (if negative, enter -0-) BAA For Privacy Act and Paperwork Reduction Act Notice, see the instructions . TE.EA0504L 09/17/08 Form 990-PF (2008) / _

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Page 1: 990-PF Return of Private Foundation Treated as a Private ...990s.foundationcenter.org/990pf_pdf_archive/521/521909081/521909081... · 7 Other notes and loans receivable ... see instructions

Form 990-PF

Department of the TreasuryInte rnal Revenue Service (77)

Return of Private Foundationor Section 4947(aXl) Nonexempt Charitable Trust

Treated as a Private FoundationNote : The foundation may be able to use a copy of this return to satisfy state

OMB No 1545-0052

2008

For calendar year 2008 , or tax year beg innin g , 2008 , and ending IG Check all that apply. Initial return Final return Amended return Address change Name chan ci e

Use the A Employer identification number

IRS label. FRANEY FAMILY FOUNDATION, INC. 52-1909081Otherwise,

print9901 BUSINESS PARKWAY B B Telephone number (see the instructions)

ortype. J,^NHAM, MD 20706 800-638-2028See SpecificInstructions

C If exemption application is pending, check here

D 1 Foreign organizations, check hereH Check type of organization. Section 501 (c)(3 exempt private foundation 2 Foreign organizations meeting the 85% test check

Section 4947(a)(1) nonexempt charitable trust Other taxable p rivate foundation,

here and attach computation 0.

Fair market value of all assets at end of year J Accounting method KCash Accrual E If private foundation status was terminated11.

(from Part Il, column (c), hne 16) Other (specify)under section 507(b)(1 )(A), check here

$ 1, 016, 650.

_ _ _ _ _ _ _ _ _ _ _ _ _(Part 1, column (d) must be on cash basis)

F If the foundation is in a 60-month terminationunder section 507(b)(1)(B), check here 0.

PartI Analysis of Revenue andExpenses total of amounts in

a Revenue and() (b) Net investment (c) Adjusted net (d) Disbursements

columns (b), (c), and (d) may not neces-expenses per books income income for charitable

sarily equal the amounts in column (a)purposes

(cash basis only)see the Instructions) )

1 Contributions, gifts, grants. etc. received (aft sch) 120 , 318 ,

2 Ck 0' F1 if the foundn is not req to aft Sch B

3 Interest on savings and temporarycash investments 1, 684. 1, 684. N/A

4 Dividends and interest from securities 26 , 320 . 26 , 320.5a Gross rentsb Net rental income

or (loss)

R 6a Net gain/(loss) from sale of assets not on line 10 94, 116b Gross sales price for all 174 459E , .assets on line 6a

V 7 Capital gain net income (from Part IV, line 2) 94 , 116.

EN

8 Net short-term capital gain

U 9 Income modificationsE 10a Gross sales less

returns andallowances

b Less Cost ofgoods sold

c Gross profit/(loss) (aft sch)11 Other income (attach s dule)

STA EMENT 1 -1 , 928.12 I I e 1 h 11 240 - 510. 122 120.

c 1 ompensation of officers, dire trustees, etc

@-'^ ^ ^^ T% e ?^0m and1P ,Pl I n , emplo eneflts

LII a Le al fees (attach sc- A g

M atta h c^i) S E ST 2 2 , 870. 2,870.1N

C

17 Interest

T 18 Taxes (attach schedule) SEE STMT 3 3,479.A 19 Depreciation (attachT sch) and depletion

v 20 OccupancyE 21 Travel, conferences, and meetings

A E 22 Printing and publicationsN XD 23 Other expenses (attach schedule)

E SEE STATEMENT 4 71.E 24 Total operating and administratives expenses . Add lines 13 through 23 6 , 420. 2,870.

25 Contributions, gifts, grants paid PART XV 224 500. 224 , 500.26 Total expenses and disbursements.

Add lines 24 and 25 230, 920. 2 , 870. 224 , 500.27 Subtract line 26 from line 12:

a Excess of revenue over expensesand disbursements 9,590.

b Net investment income (if negative, enter -0-} 119 , 250. 1C Adjusted net income (if negative, enter -0-)

BAA For Privacy Act and Paperwork Reduction Act Notice, see the instructions . TE.EA0504L 09/17/08 Form 990-PF (2008) / _

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Foam 990-PF (2008) FRANEY FAMILY FOUNDATION. INC. 52-1909081 Pane 2Attached schedules and amounts in the description

P t II B l ShBeginning of year End of year

eets column should be for end-of-year amounts onlyar a ance(See instructions (a) Book Value (b) Book Value (c) Fair Market Value

1 Cash - non-interest-bearing 19,108. 4,108. 4,108.2 Savings and temporary cash investments 119, 678. 113, 457. 113,457.3 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 otherdisqualified persons (attach schedule) (see the Instructions)

7 Other notes and loans receivable (attach sch) ►S Less allowance for doubtful accounts 01

---------S 8 Inventories for sale or use

ET 9 Prepaid expenses and deferred charges

S 10a Investments - U S and state governmentobligations (attach schedule)

b Investments - corporate stock (attach schedule) STATEMENT 5 575, 981. 512 036. 561,475.c Investments - corporate bonds (attach schedule)

11 Investments - land, buildings, andequipment basis ►

---------- -Less. accumulated depreciation(attach schedule) ►

---------12 Investments - mortgage loans

13 Investments - other (attach schedule) STATEMENT 6 80,449. 74 , 835. 334, 010.14 Land, buildings, and equipment basis. ►

---------- - ------ - -- -Less accumulated depreciation(attach schedule)

15 Other assets (describe STATEMENT 7 2 , 520. 3, 600. 3,600.16 Total assets (to be completed by all filers -

see instructions Also, see page 1, item I) 797, 736. 708, 036. 1, 016, 650.L 17 Accounts payable and accrued expenses

A 18 Grants payable

B 19 Deferred revenue

L 20 Loans from officers, directors, trustees, & other disqualified persons

I 21 Mortgages and other notes payable (attach schedule)T

22 Other liabilities (describe _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ )

ES 23 Total liabilities (add lines 17 through 22) 0. 0.

Foundations that follow SFAS 117 check here ►,and complete lines 24 through 26 and lines 30 and 31. 1

N F 24 UnrestrictedT UT N 25 Temporarily restricted

D 26 Permanently restricted

S B Foundations that do not follow SFAS 117, check here ► XS A and complete lines 27 through 31.E LT A 27 Capital stock, trust principal, or current funds

S N 28 Paid-in or capital surplus, or land, building, and equipment fund

O E 29 Retained earnings, accumulated income, endowment, or other funds 797 736. 708,036.1R S 30 Total net assets or fund balances (see the instructions) 797, 736. 708, 036.

31 Total liabilities and net assets/fund balances(see the instructions) 797, 736. 708, 036.

ran m Hnai sis OT unan es in net Assets or runs t3alances

1 Total net assets or fund balances at beginning of year - Part II, column (a), line 30 (must agree withend-of-year figure reported on prior year's return) 1 797 , 736.

2 Enter amount from Part I, line 27a 2 9,590.3 Other increases not included in line 2 (itemize) ►

-----------------------3

-------4 Add lines 1, 2, and 3 4 807 , 326.5 Decreases not included in line 2 (itemize) STATEMENT 8 5 99,290.6 Total net assets or fund balances at end of year (line 4 minus line 5) - Part II_ column (b), line 30 6 708,036.

BAA TEEA0302L 09/17108 Form 990-PF (2008)

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Form 990-k 2008 FRANEY FAMILY FOUNDATION , INC. ' 52 -1909681 Page 3Part IV Ca pital 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 shares MLC Company)

How acquiredP - PurchaseD - Donation

c Date acquired(month, day, year)

Date sold(month, day. year)

1a 2 000 GENERAL ELECTRIC CO. D 3 / 26/07 10/08/08b 500 INTUITIVE SURGICAL INC. D 10 / 10/99 6/11/08cd

e(e) Gross sales price (f) Depreciation allowed

(or allowable)(g) Cost or other basisplus expense of sale

(h) Gain or (loss)(e) plus (f) minus (g)

a 40 , 675 . 71 , 343 . - 30,668.b 133 784 . 9 , 000. 124 784.Cd

e

Complete only for assets showin gain in column (h) and owned b the foundation on 12/31/69 (I) Gains (Column (h)(i) Fair Market Value

as of 12 /31/690) Adjusted basisas of 12/31/69

(k) Excess of column (i)over column 0 ), if any

gain minus column ( k), but not lessthan - 0-) or Losses (from column (h))

a -30 , 668.b 124 784.Cd

e

2 Capital gain net income or (net capital loss) If gain, also enter in Part I, line 7If (loss), enter -0- in Part I, line 7 } 2 94,116.

3 Net short - term capital gain or (loss ) as defined in sections 1222(5) and (6).

If gam , also enter in Part I, line 8, column (c) (see the instructions ) If (loss), enter -0-in Fart I, line 8 3 0.

Part V I Qualification Under Section 4940(e) for Reduced Tax on Net Investment Income(For optional use by domestic private foundations subject to the section 4940(a) tax on net investment income )

If section 4940(d)(2) applies, leave this part blank

Was the foundation liable for the section 4942 tax on the distributable amount of any year in the base period ? E]Yes XX NoIf 'Yes,' the foundation does not qualify under section 4940 (e) Do not complete this part

1 Enter the ap p rop riate amount in each column for each year, see the instructions before making any entries

(b cBase period years Adjusted qualifying distributions Net value of Distnbutti n ratio

Calendar year (or tax yearbeginning in) nonchantable-use assets (column (b) divided by column (c))

2007 268 771. 1 , 237 , 512. 0.2171872006 213,200. 1 , 167 , 520. 0.1826092005 249 419. 1 , 032 , 844. 0.2366472004 237,500. 814,779. 0.2914902003 61,500. 619,009. 0.099352

2 Total of line 1, column (d) 2 1.027285

3 Average distribution ratio for the 5-year base period - divide the total on linenumber of years the foundation has been in existence if less than 5 years

2 by 5, or by the3 0 . 205457

4 Enter the net value of noncharitable-use assets for 2008 from Part X, line 5 4 982,187.

5 Multiply line 4 by line 3 5 201 , 797.

6 Enter 1 % of net investment income (1 % of Part I, line 27b) 6 1 , 193.

7 Add lines 5 and 6 7 202, 990.

8 Enter qualifying distributions from Part XII, line 4 8 224 , 500.

If line 8 is equal to or greater than line 7, check the box in Part VI, line 1 b, and complete that part using a I% tax rate See thePart VI instructions

BAA Form 990-PF (2008)

TEEA0303L 09/18/08

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Form 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Page 4Part VI Excise Tax Based on Investment Income (Section 4940(a) , 4940(b) , 4940(e) , or 4948 - see the instructions

1 a Exempt operating foundations described in section 4940(d)(2), check here and enter 'N/A' on line 1.

Date of ruling letter. _ _ _ _ _ . - (attach copy of ruling letter if necessary - see instructions)

b Domestic foundations that meet the section 4940(e) requirements in Part V, 1 1,193.check here and enter 11% of Part I, line 27b

c All other domestic foundations enter 2% of line 27b Exempt foreign organizations enter 4% of Part I, line 12, column (b)

2 Tax under section 511 (domestic section 4947(a)(1) trusts and taxablefoundations only Others enter -0-) 2 0.

3 Add lines 1 and 2 3 1,193.4 Subtitle A (income) tax (domestic section 4947(a)(1) trusts and taxable foundations only. Others enter -0-) 4 0.

5 Tax based on investment income . Subtract line 4 from line 3. If zero or less, enter -0- 5 1,193.6 Credits/Payments:

a 2008 estimated tax pmts and 2007 overpayment credited to 2008 6a 3,600.

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 3,600.

8 Enter any penalty for underpayment of estimated tax Check here XX if Form 2220 is attached 8 17.

9 Tax due. If the total of lines 5 and 8 is more than line 7, enter amount owed 9 0.10 Overpayment . If line 7 is more than the total of lines 5 and 8, enter the amount overpaid .. ► 10 2,390.11 Enter the amount of line 10 to be. Credited to 2009 estimated tax ► 2, 390. Refunded 01 11 0.Part VII -A Statements Regardin g Activities

1 a During the tax year did the foundation attempt to influence any national state or local legislation or did it Yes No, , ,participate or intervene in any political campaign? 1 a X

b Did it spend more than $100 during the year (either directly or indirectly) for political purposes(see the instructions for definition) 1 b X

If the answer is 'Yes' to 7a or ib, attach a detailed description of the activities and copies of any materials publishedor distributed by the foundation in connection with the activities.

c Did the foundation file Form 1120-POL for this year? 1c Xd Enter the amount (if any) of tax on political expenditures (section 4955) imposed during the year-

(1) On the foundation 0. $ 0. (2) On foundation managers W.$ 0.e Enter the reimbursement (if any) paid by the foundation during the year for political expenditure tax imposed onfoundation managers $ 0.

2 Has the foundation engaged in any activities that have not previously been reported to the IRS? 2 XIf 'Yes,' attach a detailed description of the activities

3 Has the foundation made any changes, not previously reported to the IRS, in its governing instrument, articles -- - -- - -of incorporation, or bylaws, or other similar instruments? If 'Yes,' attach a conformed copy of the changes 3 X

4a Did the foundation have unrelated business gross income of $1,000 or more during the year? 4a Xb If 'Yes,' has it filed a tax return on Form 990-T for this year? 4b N A

5 Was there a liquidation, termination, dissolution, or substantial contraction during the year? 5 XIf 'Yes,' attach the statement required by General Instruction T

6 Are the requirements of section 508(e) (relating to sections 4941 through 4945) satisfied either

• By language in the governing instrument, or

• By state legislation that effectively amends the governing instrument so that no mandatory directions that conflict - -with the state law remain in the governing instrument? 6 X

7 Did the foundation have at least $5,000 in assets at any time during the year? If Yes,' complete Part II, column (c), and PartXV 7 X8a Enter the states to which the foundation reports or with which it is registered (see the instructions)

MD

b If the answer is 'Yes' to line 7, has the foundation furnished a copy of Form 990-PF to the Attorney General(or designate) of each state as required by General Instruction G? If 'No,' attach explanation 8b X

9 Is the foundation claiming status as a private operating foundation within the meaning of section 49420)(3) or 49420)(5) -for calendar year 2008 or the taxable year beginning in 2008 (see instructions for Part XIV)? If 'Yes,' complete Part X/V 9 X

10 Did any persons become substantial contributors during the tax year? If 'Yes,' attach a schedule listing their namesand addresses SEE STATEMENT 9 10 X

BAA Form 990-PF (2008)

TEEA0304L 09/18/08

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Fo?m 990-PF (2008) FRANEY FAMILY FOUNDATION, INC.es Continued

-1909081 Page 5

11 At any time during the year, did the foundation, directly or indirectly, own a controlled entitywithin the meaning of section 512(b)(13)7 If 'Yes', attach schedule (see instructions) . X

12 Did the foundation acquire a direct or indirect interest in any applicable insurance contract beforeAugust 17, 2008 12 X

13 Did the foundation comply with the public inspection requirements for its annual returns and exemption application? 13 X

Website address ► N/A-------------------------------------

14 The books are in care of ► WILLIAM G. FRANEY Telephone no ► 301-306-3066--------------------------- -------------Locatedat ► P. 0. BOX 4310 CAPITOL HEIGHTS MD ZIP+4 ► 20791-4310------------------------------------ -----------

15 Section 4947(a)(1) nonexempt charitable trusts filing Form 990-PF in lieu of Form 1041 - Check here N./Aand enter the amount of tax-exem p t interest received or accrued during the year ► 15 N/A

'art VII-B Statements Re ardin Activities for Which Form 4720 May Be Req uiredFile Form 4720 if any item is checked in the ' Yes' column, unless an exception applies. Yes No

1 a 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? [ Yes X1 No

(2) Borrow money from, lend money to, or otherwise extend credit to (or accept it from) adisqualified person? Yes X No

(3) Furnish goods , services, or facilities to (or accept them from) a disqualified person? Yes E No

(4) Pay compensation to, or pay or reimburse the expenses of, a disqualified person? Yes X No

(5) Transfer any income or assets to a disqualified person (or make any of either availablefor the benefit or use of a disqualified person)? [Yes X7 No

(6) Agree to pay money or property to a government official? (Exception . Check ' No' if thefoundation agreed to make a grant to or to employ the official for a period after termination

vof rnm nt f t tht 90 dgo e e service , i ermina ing wi in ays ) [Yes No

b If any answer is 'Yes' to ta(1)-(6), did any of the acts fail to q uali fy under the exceptions described inR l 53

-- ----- - -egu ations section 4941 (d)-3 or in a current notice regarding disaster assistance (see the instructions)? lb NVA

Organizations relying on a current notice regarding disaster assistance check here

c Did the foundation engage in a p rior year in any of the acts described in 1 a, other than excepted acts, - - - -that were not corrected before the first day of the tax year beginning in 2008? 1 c X

2 Taxes on failure to distribute income (section 4942) (does not apply for years the foundation was aprivate operating foundation defined in section 4942 (1)(3) or 4942 0)(5))

a At the end of tax year 2008 , did the foundation have any undistributed income (lines 6dand 6e , Part XIII ) for tax year (s) beginning before 2008 . []Yes NoIf 'Yes,' list the years 01 20 , 20 , 20 , 20

b Are there any years listed in 2a for which the foundation is not applying the provisions of section 4942(a)(2)(relating to incorrect valuation of assets ) to the year's undistributed income? ( If applying section 4942 (a)(2) to -- - - - -all years listed, answer 'No ' and attach statement - see the instructions) 2b N A

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

11 20 ,20 ,20 ,20

3a Did the foundation hold more than a 2% direct or indirect interest in any businessenter rise at m tht d ?

q qp any uringi e e year . . .. Yes No

b If 'Yes ,' did it have excess business holdings in 2008 as a result of (1) any purchase by the foundationor disqualified persons after May 26 , 1969, (2) the lapse of the 5-year period (or longer period approvedby the Commissioner under section 4943 (c)(7)) to dispose of holdings acquired by gift or bequest; or(3) the la f th 1510 20 f t h h ld d ? Spse o e -, -, or -year irs p ase ing perioo (Use chedule C, Form 4720, todetermine if the foundation had excess business holdings in 2008.) .. 3b N A

4a Did the foundation invest during the year any amount in a manner that would jeopardize itscharitable purposes? 4a X

bDid the foundation make any investment in a prior year (but after December 31, 1969) that couldjeopardize its charitable purpose that had not been removed from jeopardy before the first day ofthe tax year beginning in 2008' 4b X

BAA Form 990-PF (2008)

TEEA0305L 01/02/09

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Fotm 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Page 6Part VII-B Statements Regarding Activities for Which Form 4720 May Be Req uired (continued)5a During the year did the foundation pay or incur any amount to

(1) Carry on propaganda, or otherwise attempt to influence legislation (section 4945(e))7 [ Yes No

(2) Influence the outcome of any specific public election (see section 4955), or to carryon, directly or indirectly, any voter registration drive? Yes XX No

(3) Provide a grant to an individual for travel, study, or other similar purposes? Yes X No

(4) Provide a grant to an organization other than a charitable, etc, organization describedin section 509(a)(1), (2), or (3), or section 4940(d)(2)? (see instructions) [ Yes No

(5) Provide for any purpose other than religious, charitable, scientific, literary, oreducational purposes, or for the prevention of cruelty to children or animals Yes No

b If any answer is 'Yes' to 5a(1)-(5), did any of the transactions fail to qualify under the exceptionsdescribed in Regulations section 53 4945 or in a current notice regarding disaster assistance(see instructions)? 5b N A

Organizations relying on a current notice regarding disaster assistance check here ►

c If the answer is 'Yes' to question 5a(4), does the foundation claim exemption from thetax because it maintained expenditure responsibility for the grant? N/A [ Yes [ No

If 'Yes,' attach the statement required by Regulations section 53 4945-5(d).

6a Did the foundation, during the year, receive any funds, directly or indirectly, to pay premiumson a personal benefit contract. [Yes No

b Did the foundation, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 6b X

If you answered 'Yes' to 6b, also file Form 8870.

7a At any time during the tax year, was the foundation a party to a prohibited tax shelter transaction? [Yes No

b If yes, did the foundation receive an proceeds or have any net income attributable to the transaction? 7b N APart V!U In formation About O icers, Directors, Trustees , Foundation Managers, Hig hly Paid Employees,

and Contractors1 List all officers . directors . trustees . foundation mananerc and their cmmnencatinn fcee inctrnrtinncl

(a) Name and address

(b) Title and averagehours per week

devoted to position

(c) Compensation(If not paid , enter -0-)

(d) Contributions toemployee benefitplans and deferredcompensation

(e) Expense account,other allowances

-WILLIAM G ._ FRANEY _ _ _ _ - _ _ _ _ _3 SOUTH ACTON PLACEANNAPOLIS MD 21401

PRESIDENT

00. 0. 0.

------------------------

------------------------

-------------------------

z L.ompensanon of live rnanest- oaia emolovees (other than those included on line 1- see inctructinncl- it nnne enter'N0NF'(a) Name and address of each employee

paid more than $50,000(b) Title and average

hours per weekdevoted to position

(c) Compensation (d) Contributions toemployee benefitplans and deferredcom pensation

(e) Expense account,other allowances

NONE------------------------

------------------------

------------------------

------------------------

------------------------

Total number of other emp loyees p aid over $50,000 ► 0

BAR TEEA0306L 09/18/08 i-orm wdu-i i (zuuts)

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Form 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Page 7Part VIII Information About Officers , Directors, Trustees, Foundation Managers , Highly Paid Employees,

and Contractors (continued)

3 Five hi g hest-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) Typ e of service (c) Compensation

NONE--------------------------------------

--------------------------------------

--------------------------------------

--------------------------------------

--------------------------------------

Total number of others receiving over $50,000 forprofessional services ► 0

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 I Expensesorganizati ons and oth e r be neficiaries s e rved, conferences convened, research pape rs produced, etc.

1 N/A------------------------------------------------------

2------------------------------------------------------

------------------------------------------------------

3------------------------------------------------------

4------------------------------------------------------

Part IX-B Summary of Program-Related Investments (see instructions)

Describe the two lar gest p rogram-related investments made by the foundation durin g the tax year on lines 1 and 2 Amount

1 N/A--------------------------------------------------------------------------------------------------------

2------------------------------------------------------

------------------------------------------------------

All other program-related investments See instructions

3------------------------------------------------------------------------------------------------------------

Total . Add lines 1 through 3 111-1 0.

BAA Form 990-PF (2008)

TEEA0307L 09/18/08

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Form 990-PF (2008 ) FRANEY FAMILY FOUNDATION, INC . 52-1909081 Page 8

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

1 Fair market value of assets not used (or held for use) directly in carrying out charitable, etc, purposes: -a Average monthly fair market value of securities 1 a 892,753.b Average of monthly cash balances 1 b 104,391.c Fair market value of all other assets (see instructions) . . 1 c

d Total (add lines la, b, and c) .. 1d . 997 , 144.

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

(attach detailed explanation) 1 e 0.

2 Acquisition indebtedness applicable to line 1 assets . . 2 0.

3 Subtract line 2 from line ld 3 997,144.

4 Cash deemed held for charitable activities Enter 1-1/2% of line 3(for greater amount, see instructions) 4 14 , 957.

5 Net value of noncharitable-use assets . Subtract line 4 from line 3 Enter here and on Part V, line 4 5 982, 187.

6 Minimum investment return . Enter 5% of line 5 6 49, 109.

Part XI Distributable Amount (see instructions) (Section 4942(j)(3) and 0)(5) private operating foundationsand certain forei g n organizations check here ► and do not comp lete this a rt.

1 Minimum investment return from Part X, line 6 1 49 , 109.

2a Tax on investment income for 2008 from Part VI, line 5 2a 1,193.

b Income tax for 2008 (This does not include the tax from Part VI) 2b

c Add lines 2a and 2b .. 2c 1, 193.3 Distributable amount before adjustments Subtract line 2c from line 1 3 47, 916.4 Recoveries of amounts treated as qualifying distributions 4

5 Add lines 3 and 4 5 47, 916.6 Deduction from distributable amount (see instructions) 6

7 Distributable amount as ad j usted Subtract line 6 from line 5 Enter here and on Part XIII, line 1 7 47, 916.

Part XII Qualifying Distributions (see instructions)

1 Amounts paid (including administrative expenses) to accomplish charitable, etc, purposesa Expenses, contributions, gifts, etc - total from Part I, column (d), line 26 1 a 224,500.

b Program-related investments - total from Part IX-l3. 1 b

2 Amounts paid to acquire assets used (or held for use) directly in carrying out charitable, etc, purposes . 2

3 Amounts set aside for specific charitable projects that satisfy the. ---a Suitability test (prior IRS approval required) 3a

b Cash distribution test (attach the required schedulel 3b

4 Qualifying distributions . Add lines la through 3b. Enter here and on Part V, line 8, and Part XIII, line 4 4 224,500.

5 Foundations that qualify under section 4940(e) for the reduced rate of tax on net investment incomeEnter 1 % of Part I, line 27b (see instructions . . 5 1,193.

6 Adjusted qualifying distributions . Subtract line 5 from line 4 6 223,307.

Note : The amount on line 6 will be used in Part V, column (b), in subsequent years when calculating whether the foundationqualifies for the section 4940(e) reduction of tax in those years.

BAA Form 990-PF (2008)

TEEA0308L 01/02/09

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Fo?m 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Page 9

Part XIII Undistributed Income (see instructions)

(a)Corpus

(b)Years prior to 2007 2007 2008

47,916.

47, 916.

0 .

0.

1 Distributable amount for 2008 from Part XI,line 7

2 Undistributed income, if any, as of the end of 2007.

a Enter amount for 2007 only

b Total for prior years. 20 20 20

3 Excess distributions carryover, if any, to 2008:

a From 2003 30,763.b From 2004 . 198,843.c From 2005 195, 539.d From 2006 164,902.e From 2007 213, 853. -

f of lines 3a through eTotal 03, 900 .

4 Qualifying distributions for 2008 from Part

XII, line 4. 01 $ 224,500.a Applied to 2007, 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 2008 distributable amount

e Remaining amount distributed out of corpus 76, 584 .

5 Excess distributions carryover applied to 2008

-

0(If an amount appears /n column (d), thesame amount must be shown In column (a) )

6 Enter the net total of each column asindicated below:

a Corpus Add lines 3f, 4c, and 4e Subtract line 5

b Prior yearsundistributed income Subtractline 4b from line 2b

c Enter the amount of prior yearsundistribut-ed income for which a notice of deficiencyhas been issued, or on which the section4942(a) tax has been previously assessed

d Subtract line 6c from line 6b. Taxableamount - see instructions.

e Undistributed income for 2007 Subtract line 4a fromline 2a. Taxable amount - see instructions

Undistributed income for 2008 Subtract lines4d and 5 from line 1 This amount must bedistributed in 2009

7 Amounts treated as distributions out ofcorpus to satisfy requirements imposedby section 170(b)(1)(F) or 4942(g)(3)(see instructions)

8 Excess distributions carryover from 2003 notapplied on line 5 or line 7 (see instructions)

9 Excess distributions carryover to 2009.Subtract lines 7 and 8 from line 6a

10 Analysis of line 9

a Excess from 2004 198, 843 .

b Excess from 2005 195, 539 .

c Excess from 2006 164 902 .

d Excess from 2007 213, 853 .

e Excess from 2008 1 76 , 584 .

BAA

80,484.

0.

0.

0.

0.

0.

30,763.

49,721.

0.

Form 990-PF (2008)

TEEA0309L 09/19/08

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Fdrm 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Page 10Part XIV Private Operating Foundations (see instructions and Part VII-A, question 9) N/A

1 a If the foundation has received a ruling or determination letter that it is a private operating foundation, and the rulingis effective for 2008 , enter the date of the ruling b

b Check box to indicate whether the foundation is a private operating foundation described in section n 4942(1)(3) or

2a Enter the lesser of the adjusted net Taxincome from Part I or the minimuminvestment return from Part X foreach year listed

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 directlyfor active conduct of exempt activities

e Qualifying distributions made directlyfor active conduct of exempt activities.Subtract line 2d from line 2c

3 Complete 3a, b, or c for thealternative test relied upon

a 'Assets' alternative test - enter

(1) Value of all assets

(2) Value of assets qualifying undersection 49420)(3)(B)(i)

b 'Endowment' alternative test - enter 2/3 ofminimum investment return shown in Part X,line 6 for each year listed

c 'Support' alternative test - enter

(1) Total support other than grossinvestment income (interest,dividends, rents, paymentson securities loans (section512(a)(5)), or royalties)

2008 1 (b) 2007

Prior 3

2005 1 (e) Total

(2) Support from general public and 5 ormore exempt organizations as providedin section 4942(I)(3)(B)(ni)

(3) Largest amount of support froman exempt organization

(4) Gross investment income

(Part XV I Supplementary Information (Complete this part only if the organization had $5,000 or more inassets at any time during the year - see instructions.)

1 Information Regarding Foundation Managers:a List any managers of the foundation who have contributed more than 2% of the total contributions received by the foundation before theclose of any tax year (but only if they have contributed more than $5 , 000) (See section 507(d)(2).)

WILLIAM G. FRANEY

b List any managers of the foundation who own 10% or more of the stock of a corporation (or an equally large portion of the ownership ofa partnership or other entity) of which the foundation has a 10% or greater interest

NONE

2 Information Regarding Contribution , Grant, Gift, Loan , Scholarship, etc, Programs:

Check here 1, X if the foundation only makes contributions to preselected charitable organizations and does not accept unsolicitedrequests for funds If the foundation makes gifts, grants, etc, (see instructions) to individuals or organizations under other conditions,complete items 2a, b, c, and d

a The name, address, and telephone number of the person to whom applications should be addressed:

b The form in which applications should be submitted and information and materials they should include.

c Any submission deadlines

d Any restrictions or limitations on awards, such as by geographical areas, charitable fields, kinds of institutions, or other factors-

BAA TEEA031OL 09/19/08 Form 990-PF (2008)

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Foim 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Pag e 11Part XV Supplementary Information (continued)3 Grants and Contributions Paid During the Year or Auaroved for Future Payment

RecipientIf recipient is an individual ,show any relationship to

any foundation manager or

Foundationstatus ofd Purpose of grant or

tt b Amount

Name and address (home or business substantial contributor recipient con ri ionu

a Paid during the yearSEE STATEMENT 10

Total ► 3a 224, 500.b Approved for future payment

Total ► 3bi

BAA TEEA0501L o9n9io8 Form 990-PF (2008)

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Form 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081' 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

(a) (b) (C) (d) (e)Business Amount Exclu- Amount Related or exemptcode sion function income

1 Program service revenue: code (see the instructions)

abcd

ef

g Fees and contracts from government agencies

2 Membership dues and assessments

3 Interest on savings and temporary cash investments 14 1,684.4 Dividends and interest from securities 14 26,320.5 Net rental income or (loss) from real estate:

a Debt -financed property

b Not debt-financed property

6 Net rental income or (loss) from personal property

7 Other investment income

8 Gain or ( loss) from sales of assets other than inventory 18 94 , 116.9 Net income or (loss) from special events

10 Gross profit or (loss) from sales of inventory

11 Other revenue:

a ENERGY TRANSFER PARTNERS 424000 -1 , 928.b

c

d

e12 Subtotal Add columns (b), (d), and (e) -1, 928. 122,120.

13 Total . Add line 12, columns (b), (d), and (e) 13 120,192.

(See worksheet in the instructions for line 13 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 theV accomplishment of the foundation's exempt purposes (other than by providing funds for such purposes) (See the instructions )

N/A

BAA TEEA0502L

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Fotm 990-PF (2008) FRANEY FAMILY FOUNDATION, INC. 52-1909081 Pag e 13Part XVII Information Regarding Transfers To and Transactions and Relationships With Noncharitable

Exempt Organizations

Yes No1 Did the organization directly or indirectly engage in any of the following with any other organization

described in section 501(c) of the Code (other than section 501 (c)(3) organizations) or in section 527,relating to political organizations?

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

(1) Cash 1 a X

(2) Other assets ... 1 a (2)1 1 X

b Other transactions(1) Sales of assets to a noncharitable exempt organization 1 b X

(2) Purchases of assets from a noncharltable exempt organization 1 b (2)1 1 X

(3) Rental of facilities, equipment, or other assets 1 b (3)1 1 X

(4) Reimbursement arrangements 1 b (4)1 1 X

(5) Loans or loan guarantees. 1 b (5) X

(6) Performance of services or membership or fundraising solicitations 1 b X

c Sharing of facilities, equipment, mailing lists, other assets, or paid employees 1 c X

d If the answer to any of the above is 'Yes,' complete the following schedule Column (b) should always show the fair market value ofthe goods, other assets, or services given by the reporting foundation If the foundation received less than fair market value inany transaction or sharing arran gement, show in column (d) the value of the goods, other assets, or services received

(a) Line no (b) Amount involved c Name of noncharitable exem p t organization (d) Description of transfers, transactions, and sharing arrangements

N/A

2a Is the foundation directly or indirectly affiliated with , or related to , one or more tax-exempt organizationsdescribed in section 501 (c) of the Code (other than section 501 (c)(3)) or in section 527? E]Yes XX No

b If 'Yes,' complete the followlna schedule

(a) Name of or anization b T e of or anization c Descrl tlon of relationshl

N/A

S

G

Under penalties of perjury. I declare that I have examined this ret , including accompanying schedules and statements , and to the best of my knowledge and belief , it is true, correct. andcomplete DeclarationTprepare ( other than taxpayer or ci ) is based on all information of which preparer has any knowledge

No-1,511 - S:& ,&==,= -

Signature of officer or trusteeCl/ Date Title

N

HER

aidPre-

Preparer ' ssignature 1110-

ROBERT W. GROCHOWSKI

Dale

5/13/09Check if

employed ►

Preparer ' s Identifying number(See Signature i n the instrs)

N/A

E parer ' s Firm's name (or GROSS MENDELSOHN & ASSOCIATES P.A. EIN ► N/AUseOnly emroyed)l 36 S CHARLES ST 18TH FLOOR

:s andZIPIP code BALTIMORE, MD 21201-3172 Phone no 11 (410 ) 685-5512BAA Form 990-PF (2008)

TEE.A0503L 01/02/09

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Schedule Bor0990

p990, 990-EZ , Schedule of Contributors

Department of the treasury0, Attach to Form 990 , 990-EZ and 990-PF

Internal Revenue Service See separate instructions.

OMB No 1545 0047

2008Name of the organization Employer identification number

FRANEY FAMILY FOUNDATION, INC. 52-1909081

Organization type (check one):

Filers of: Section:

Form 990 or 990-EZ 501 (c)() (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF X 501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

Check if your organization is covered by the General Rule or a Special Rule . ( Note: Only a section 501(c)(7), (8), or (10) organization can checkboxes for both the General Rule and a Special Rule See Instructions )

General Rule -

J For organizations filing Form 990 , 990-EZ , or 990 - PF that received , during the year , $5,000 or more ( in money or property) from any onecontributor . (Complete Parts I and II )

Special Rules -

For a section 501(c)(3) organization filing Form 990, or Form 990 - EZ, that met the 33-1/3% support test of the regulations under sections509(a)(1)/170(b)(1)(A)(vl) and received from any one contributor , during the year, a contribution of the greater of (1) $5,000 or (2) 2% of theamount on Form 990, Part VIII, line lh or 2 % of the amount on Form 990 - EZ, line 1 Complete Parts I and II

For a section 501(c)(7), ( 8), or (10 ) organization filing Form 990, or Form 990-EZ, that received from any one contributor , during the year,aggregate contributions or bequests of more than $1,000 for use exclus i vely for religious, charitable , scientific, literary , or educationalpurposes, or the prevention of cruelty to children or animals Complete Parts I, II, and III

For a section 501 (c)(7), (8), or ( 10) organization filing Form 990, or Form 990-EZ, that received from any one contributor , during the year,some contributions for use exclusively for religious , charitable, etc, purposes, but these contributions did not aggregate to more than$1,000 (If this box is checked , enter here the total contributions that were received during the year for an exclus i vely religious , charitable,etc, purpose Do not complete any of the Parts unless the General Rule applies to this organization because it received nonexclusively

religious , charitable , etc, contributions of $5,000 or more during the year) I. $

Caution : Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule B (Form 990, 990-EZ, or990-PF) but they must answer 'No' on Part IV, line 2 of their Form 990, or check the box in the heading of their Form 990-EZ, or on line 2 oftheir Form 990-PF, to certify that they do not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF).

BAA For Privacy Act and Paperwork Reduction Act Notice, see the Instructionsfor Form 990. These instructions will be issued separately.

Schedule B (Form 990, 990-EZ, or 990-PF) (2008)

TEEA0701L 12/18/08

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Schedule B (Form 990, 990-EZ, or 990-PF) (2008) Page 1 of 1 of Part IName of organization Employer identification number

FRANEY FAMILY FOUNDATION, INC. 52-1909081

Part I Contributors (see instructions )

(a) (b) (c) (d)Number Name , address, and ZIP + 4 Aggregate Type of contribution

contributions

1 WILLIAM G._FRANEY ________________________ Person XPayroll

3SOUTH ACTON PLACE 120

Cmlete Part 1 if therelsANNAPOLIS, MD 21401

------------------------------------anoncash contribut on.)i

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

Number Name , address, and ZIP + 4 Aggregate Type of contributioncontributions

-------------------------------------Person

Payroll

$ Noncash

(Complete Part II if there_____________________________________ is a noncash contribution.)

(a) (b) (c) (d)Number Name , address, and ZIP + 4 Aggregate Type of contribution

contributions

-------------------------------------Person

Payroll

$ Noncash

(Complete Part II if there)is anoncashcontribution

(a) (b) (c) (d)Number Name , address, and ZIP + 4 Aggregate Type of contribution

contributions

-------------------------------------Person

Payroll

------------------------------------- $----------- Noncash

(Complete Part II if there_ _ _ _ _ _ -

------------------------------is a noncash contribution.)

(a) (b) (c) (d)Number Name , address, and ZIP + 4 Aggregate Type of contribution

contributions

_-----------------------------------

Person

Payroll

------------------------------------- $----------- Noncash

(Complete Part II if there_ _ - _ _ _ _

------------------------------is a noncash contribution.)

(a) (b) (c) (d)Number Name , address, and ZIP + 4 Aggregate Type of contribution

contributions

-------------------------------------Person

Payroll

$ Noncash

(Complete Part II if there_ - _ _ _ _ _ is a noncash contribution.)

BAA TEEA0702L 08/05/08 Schedule B (Form 990, 990-EZ, or 990-PF) (2008)

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Schedule B (Form 990, 990-EZ, or 990-PF) (2008) Page 1 of 1 of Part 11

Name of organization Employer identification number

FRANEY FAMILY FOUNDATION, INC. 52-1909081

Part II Noncash Property (see instructions.)

(a)No. fromPart I

(b)Description of noncash property given

cFMV (or estimate)(see instructions)

dDate received

911 SHARES INTUITIVE SURGICAL INC. STOCK1

$ 115,688. 12/31/08

(a)No. fromPart I

(b)Description of noncash property given FMV (or estimate)

(see instructions)

(d)Date received

(a)No. fromPart I

(b)Description of noncash property given FMV (orestimate)

(see instructions)Date received

(a)No. fromPart I

(b)Description of noncash property given

(c)FMV (or estimate )(see instructions)

(d)Date received

(a)No. fromPart I

(b)Description of noncash property given

(c)FMV (or estimate)(see instructions)

(d)Date received

(a)No. fromPart I

(b)Description of noncash property given FMV (orestimate)

(see instructions)Date received

BAA Sched ule B (Form 990. 990-EZ. or 990-PF) (2008)

TEEA0703L 08/05/08

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Schedule B (Form 990, 990-EZ, or 990

Name of organization

1 of 1 of Part III

Employer identification number

FRANEY FAMILY FOUNDATION, INC. 52-1909081PartIll Exclusively religious , charitable, etc, individual contributions to section 501(c)(7), (8), or (10)

organizations aggregating more than $1,000 for the year.(Complete cols (a) through (e) and the following line entry )

For organizations completing Part III, enter total of exclusively religious, charitable, etc,contributions of Si.000 or less for the year (Enter this information once - see instructions) N/A

(a)

No. fromPart I

(b)

Purpose of gift

(c)

Use of gift

(d)

Description of how gift is held

N/A

(e)Transfer of gift

Transferee' s name , address, and ZIP + 4 Relationship of transferor to transferee

(a)

No. fromPart I

(b)

Purpose of gift

(c)

Use of gift

(d)

Description of how gift is held

(e)Transfer of gift

Transferee's name , address, and ZIP + 4 Relationship of transferor to transferee

(a)

No. fromPart I

(b)

Purpose of gift

(c)

Use of gift

(d)

Description of how gift is held

(e)Transfer of gift

Transferee ' s name , address, and ZIP + 4 Relationship of transferor to transferee

(a)

No. fromPart I

(b)

Purpose of gift

(c)

Use of gift

(d)

Description of how gift is held

(e)Transfer of gift

Transferee's name , address , and ZIP + 4 Relationship of transferor to transferee

BAA Schedule B (Form 990, 990-EZ, or 990-PF) (2008)TEEA0704L 04!01/08

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2008 FEDERAL STATEMENTS , PAGE1. .-

FRANEY FAMILY FOUNDATION , INC. 52-1909081

STATEMENT1FORM 990- PF, PART I, LINE 11OTHER INCOME

(A) (B) NET (C)REVENUE I NVESTMENT ADJUSTED

PER BOOKS INCOME NET INCOME

ENERGY TRANSFER PARTNERS $ -1 , 928.TOTAL $ -1,928.$ 0.$ 0.

STATEMENT 2FORM 990-PF , PART I , LINE 16BACCOUNTING FEES

(A) (B) NET (C) (D)EXPENSES INVESTMENT ADJUSTED CHARITABLEPER BOOKS INCOME NET INCOME PURPOSES

ACCOUNTING FEES $ 2 870. $ 2 870TOTAL 2,870.

, .2,870. 0.

STATEMENT 3FORM 990- PF, PART I , LINE 18TAXES

(A) (B) NET (C) (D)EXPENSES INVESTMENT ADJUSTED CHARITABLEPER BOOKS INCOME NET INCOME PURPOSES

FEDERAL INCOME TAX $ 3,479.TOTAL $ 3,479. 0. $ 0.

STATEMENT 4FORM 990-PF, PART I , LINE 23OTHER EXPENSES

(A) (B) NET (C) (D)EXPENSES INVESTMENT ADJUSTED CHARITABLEPER BOOKS INCOME NET INCOME PURPOSES

PENALTIES $ 71.TOTAL $ 71. 0. $ 0.

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2008 FEDERAL STATEMENTS- ' PAGE 2

FRANEY FAMILY FOUNDATION ;, INC. 52-1909081

STATEMENT 5FORM 990-PF, PART II, LINE 1 OBINVESTMENTS - CORPORATE STOCKS

VALUATION BOOK FAIR MARKETCORPORATE STOCKS METHOD VALUE VALUE

COMCAST CORP CL A - SPL COST $ 18,625. $ 48,450.LEGG MASON INC COST 6,456. 21,910.INTUITIVE SURGICAL INC COST 34,398. 242,678.FULTON FINANCIAL CORP-PA COST 19,497. 27,157.AT & T INC COST 77,964. 57,000.BANK OF AMERICA CORP COST 102,385. 28,160.FIFTH THIRD BANCORP COST 79,705. 16,520.NEW YORK COMMUNITY BANCORP COST 173,006. 119,600.

TOTAL $ 512,036. $ 561,475.

STATEMENT 6FORM 990-PF, PART II , LINE 13INVESTMENTS - OTHER

VALUATION BOOK FAIR MARKETMETHOD VALUE VALUE

OTHER INVESTMENTS

APACHE PARENT HOLDINGS, LLC COST $ 23,423. $ 300,000.TOTAL OTHER INVESTMENTS $ 23,423. $ 300,000.

OTHER PUBLICLY TRADED SECURITIES

ENERGY TRANSFERS PARTNERS LP COST 51 412 34 010TOTAL OTHER PUBLICLY TRADED SECURITIES

, .51,412. $

, .34,010.

TOTAL 74,835. 334,010.

STATEMENT 7FORM 990-PF , PART II , LINE 15OTHER ASSETS

FAIR MARKETBOOK VALUE VALUE

PREPAID INCOME TAXES $ 3,600. $ 3,600.TOTAL $ 3,600. $ 3,600.

STATEMENT 8FORM 990-PF , PART III, LINE 5OTHER DECREASES

EXCESS FMV CONTRIBUTION RECEIVED $ 99,290.TOTAL $ 99,290.

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2008 FEDERAL STATEMENTS PAGE3

FRANEY FAMILY FOUNDATION, INC., 52-1909081

STATEMENT 9FORM 990-PF, PART VII-A, LINE 10SUBSTANTIAL CONTRIBUTORS DURING THE TAX YEAR

NAME OF SUBSTANTIAL CONTRIBUTOR ADDRESS OF SUBSTANTIAL CONTRIBUTOR

WILLIAM G. FRANEY 3 SOUTH ACTON PLACEANNAPOLIS, MD 21401

STATEMENT 10FORM 990-PF, PART XV, LINE 3ARECIPIENT PAID DURING THE YEAR

FOUND-DONEE ATION PURPOSE OF

NAME AND ADDRESS RELATIONSHIP STATUS GRANT AMOUNT

MY BROTHERS KEEPER NONE PUBLIC UNRESTRICTED $ 10,000.P. 0. BOX 25169BALTIMORE, MD 21229

ST. MARY'S NONE PUBLIC UNRESTRICTED 52,000.109 DUKE OF GLOUCESTER STANNAPOLIS, MD 21401

SEVERN SCHOOL NONE PUBLIC UNRESTRICTED 7,500.201 WATER STREETSEVERNA PARK, MD 21146

ARCHBISHOP'S LENTEN APPEAL NONE PUBLIC UNRESTRICTED 10,000.5200 N BALTIMORE STBALTIMORE, MD 21210

INDIAN CREEK SCHOOL NONE PUBLIC UNRESTRICTED 2,500.680 EVERGREEN ROADCROWNSVILLE, MD 21401

GALLAGHER SERVICES NONE PUBLIC UNRESTRICTED 5,000.320 CATHEDRAL STREET, 3RDFLOORBALTIMORE, MD 21201

ST. TIMOTHY'S SCHOOL NONE PUBLIC UNRESTRICTED 5,000.13807 POPLAR TREE ROADCHANTILLY, VA 20151

ASSOCIATED CATHOLIC NONE PUBLIC UNRESTRICTED 15,000.CHARITIES320 CATHEDRAL STREET, 3RDFLOORBALTIMORE, MD 21201

BRUCE EDWARDS FOUNDATION NONE PUBLIC UNRESTRICTED 100,000.4900 WETHEREDSVILLE ROAD,BLDG 1BBALTIMORE, MD 21207

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2008 FEDERAL STATEMENTS PAGE 4

FRANEY FAMILY FOUNDATION, INC.'- 52-1909081

STATEMENT 10 (CONTINUED)FORM 990-PF , PART XV, LINE 3ARECIPIENT PAID DURING THE YEAR

FOUND-DONEE ATION PURPOSE OF

NAME AND ADDRESS RELATIONSHIP STATUS GRANT AMOUNT

SETON CENTER NONE PUBLIC UNRESTRICTED $ 1,000.1900 PIONEER AVEPITTSBURGH, PA 15226

TAIG FOUNDATION NONE PUBLIC UNRESTRICTED 5,000.4700 WISSAHICKON AVENUE,SUITE 100PHILADELPHIA, PA 19144

CAPITAL HOSPICE NONE PUBLIC UNRESTRICTED 5,000.6565 ARLINGTON BLVD., SUITE500FALLS CHURCH, VA 22042

MELWOOD NONE PUBLIC UNRESTRICTED 1,000.5606 DOWER HOUSE ROADUPPER MARLBORO, MD 20772

VILLA MARIA SCHOOL NONE PUBLIC UNRESTRICTED 500.1501 N. ASHBURTON STREETBALTIMORE, MD 21216

THE REDEMPTORISTS NONE PUBLIC UNRESTRICTED 5,000.109 DUKE OF GLOUCESTERSTREETANNAPOLIS, MD 21401

TOTAL