Utilika Foundation

Activities, 2004


Introduction

This document is a description of activities of Utilika Foundation from 1 May 2004 through 31 December 2004. This document constitutes an attachment to the foundation's annual return, pursuant to line 76 of Form 990 for 2004.

Organization

The foundation was organized in May 2004. Its initial activities were self-organization, including deciding to organize as a Washington nonprofit corporation, drafting articles of incorporation, acquiring corporate status, selecting an initial board of directors, appointing initial officers, adopting bylaws, searching for and leasing an office, organizing the office, establishing a system of corporate recordkeeping, obtaining strategic organizational consulting, and obtaining legal and technical consulting.

Asset Management

The foundation received a substantial contribution in June 2004. The contribution consisted of investment real property, specifically three office buildings and their associated parcels of land in Tukwila, Washington. The foundation thereupon began to devote some of its activity to deriving value from this investment. This work included deciding to liquidate the property expeditiously, entering into an agreement with a real estate broker for property management and sale, approval of pre-sale property improvements and leases, review of purchase offers and negotiation and approval of sale terms, accounting for investment income and expenses in connection with the property, and fulfilment of the obligations of the seller under the purchase and sale agreements. The sale closings took place from September through November 2004.

Upon the liquidation of the real property, the foundation devoted some of its activity to investing the proceeds in securities. This work included obtaining advice and studying publications on investment policies, strategies, and vehicles, entering into an asset-management relationship with a financial institution, and making and implementing asset-allocation and fund-selection decisions.

Mission and Interest Clarification

Throughout its existence in 2004, the foundation was elaborating its mission and interests. For this purpose, it studied existing knowledge, evaluated opportunities for progress in pure and applied research, and documented in increasing detail the state of the art and the foundation's aspirations. The documentation included included working notes for internal use and an increasingly detailed set of explanatory documents posted on the foundation's Web site. The mission and interests were consistent with the restrictions on the uses of the proceeds from the real-property gift received in June 2004.

Toward the end of 2004, the foundation began to evaluate the alternative activity strategies by which it could pursue its mission. The main alternatives included (1) a strategy of independent action and relationships with a widely distributed set of persons and organizations and (2) a strategy of concentrated support for a single existing institution. The foundation began to enter into contacts with potential institutional beneficiaries under the second strategy, in order to determine its feasibility.

Staff Training

The foundation during 2004 had a one-person full-time volunteer staff, namely the president, Jonathan Pool. To permit him to pursue the foundation's mission with expertise by conducting direct research and evaluating the work of others, the foundation provided training for him at the University of Washington in object-oriented design and programming and in syntactic theory, mission-critical fields missing from his prior professional training.

Administration

The foundation performed internally its accounting, bookkeeping, payment processing, compliance management, computer-infrastructure design and maintenance, and Web-site design and maintenance. The president also established contacts and conducted cooperative communications with various charitable and professional individuals and organizations.

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