a simple vision

for $500 and gave it to principal Frank Hanawalt, to do that which otherwise would not be timely done. From that gesture evolved the vision of the Haas Foundation…to help promising young people at critical times in their lives.

Over the years, many have shared the Haas' commitment. As part of the board for more than 35 years, I've personally witnessed the impact of this simple, but powerful vision. Evidence of success is widespread. One student who received Haas Foundation assistance became a judge. Another became a legal counsel for the U.S. Department of Health, Education and Welfare in Washington, D.C. Many have become teachers in our schools.

Today, volunteers and donors, educators and students, continue to believe in the power of education. This year’s annual report reflects the legacy of the Haas' vision and celebrates the promise that education, and Haas school funds, holds for needy students across Washington—a better future.

Jon Galt BowmanPresident, Board of DirectorsSaul & Dayee G. Haas Foundation

In 1963, Saul and Dayee Haas attended a parents' open house at Garfield High where their daughter Deesa was a student. They discovered the school struggled to meet some critical needs of disadvantaged students, which jeopardized their ability to participateand remain in school. So Saul Haas wrote a check

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our commitment

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The Saul & Dayee G. Haas Foundation is, in my opinion, a catalyst. We provide small portions of funding annually to more than 800 eligible schools. This past year alone, 588 schools distributed funds within their learning community. In addition to being a catalyst, we are an equalizer. Self-selecting out of sports, music or even attending school is far too common. We prefer preventative actions to corrective ones. Without Haas Foundation funds, many students would not be as engaged in school as they could or should be. Many others would not have been able to stay in school. We believe that each child deserves a better future and that as a community it is important to be responsive to their unmet needs.

I'm proud of our Foundation's accomplishments this year and we remain grateful to our board, donors, volunteers and school partners. We're providing this 2004-05 report on our stewardship in the hope that you will continue to be part of our pursuit to improve students' educational opportunities in Washington.

Bonnie HiloryExecutive DirectorSaul & Dayee G. Haas Foundation206.370.6714

It is my pleasure to serve as your Executive Director. What a treat my experience has been this past year. I could not ask for a better staff, board or group of volunteers. In addition, the dedication that our school partners have exhibited is truly remarkable.

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student stories

Hope…When a student's ailing mother was moved into a health care home and he had no way to visit her, his grades and interest in school began to slip. The Haas School Fund provided two months of bus fare and he was able to visit his mother regularly. Now with her encouragement, he is back on the right track with his life and school. From Mountain View High School

Inspiring stories of…

Strength…An 8th grade girl lives with her sister. She is low-income, disabled and doesn’t have a lot of clothing. While participating in a leadership assembly, her knee gave out and was dislocated. Emergency workers had to cut her pants to help her. We used Haas funds to buy her new pants. From Carbonado School

Courage…A senior student lost his mother during the school year. He was forced to live on his own while working and going to school. We used Haas funds to pay his classroom fees so he could graduate on time and receive his diploma.From Castle Rock High School

Supplies/Fees25%

Health Support3%

Activity Support16%

Personal Needs18%

Academic Support15%

Trips/Group Activities23%

fund distribution

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Health Support Personal Needs Academic SupportSports Physical/Insurance 56% Clothes 42% Summer School/Night School 33%Eye Care/Exams/Glasses 14% Yearbook 21% Graduation Expenses 20%School Accident Insurance 6% Transportation 9% Testing Fees 14%Doctor/Dentist Fees 5% Shoes/Boots 6% Driver's Education/Traffic Safety 3%Medication 3% Breakfast/Lunch Programs 6% Remedial Classes 3%Counseling Fees 2% Coats/Raingear 4% Incentives 3%Health Exams 2% Haircuts/Grooming Supplies 1% College Application Fees 2%Hospital/Surgery 2% Baby Supplies, Day Care 1% Tutoring 2%Hearing Care/Exams/Aids 1% Charge 1% Other Fees/Special Services 19%Other 9% Other 10%

Supplies/Fees Activity Support Trips/Group ActivitiesIndustrial Arts 20% Music/Drama Uniforms, Instruments 13% Activity Group Trip/Camps/Luncheons 28%P.E. 15% Football/Basketball Uniforms, Shoes 13% Activity Card 41%Misc. Classroom Needs 13% Sports Camps/Tournaments 8% Class Field Trips 12%Textbooks/Workbooks 13% Cheerleaders/Drill Te am Uniforms, Shoes 4% Conferences/Conventions 5%Home Ec 5% Other Uniforms/Shoes/Fees 29% Other Special Program Fees 14%Library/Book Fines 3% Other School Activities 22%Other School Fines 1% Other Sports Activities 10%Other 31%

*Amounts include matching funds raised by schools and any unused funds from previous fiscal year.

Below you'll find an overview of the Haas Foundation statewide grants by category for 2004-2005.*

key accomplishments

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Personnel• Search Committee hired Bonnie Hilory in January 2005 as

Executive Director. Bonnie promoted to first full-time Executive Director July 6, 2005.

• Honored Frank Hanawalt, former Executive Director in a ceremony at Garfield High School celebrating his more than 19 years of dedication to education and the Haas Foundation. Frank was elected to the Board of Directors in May.

• Reorganized the Foundation office to accommodate a volunteer workstation.

• Recruited and trained 15 key volunteers specializing in IT/web support, grant writing, newsletter, database development and office support.

• Beginning in January of 2005 through September 2005, we received support from 15 active volunteers who provided 400 hours of service. This equates to a savings of $7,020 based on $17.55 per hour volunteerd.

• Established an internship position to support the Foundation. This is a 6-month internship focused on Development.

Infrastructure• Developed a strategic 3-year plan by collaborating with the

Disappearing Task Force Committee and Board. Board adopted this plan in May.

• Refined and clarified the process for distributing funds to schools, awarding matching grants, and year-end reporting. Board adopted a new scorecard method in July.

• Initiated the process of creating tools for developing grants and cultivating donors, including purchasing software to manage this new initiative. Purchased new software package that aligns with QuickBooks and can accommodate development, donor, and volunteer tracking 24/7.

• Built computer network infrastructure incorporating latest technology and best practices. Foundation software is now backed up weekly.

• Changed the name of Haas Heritage Board to Haas Heritage Advisory Council, and clarified roles and expectations

key accomplishments

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Marketing/Branding• Developed a new brand for the foundation, which depicts the

core values identified in the strategic plan.• Initiated presentations to community organizations to introduce

Haas Foundation, increase our visibility and to begin the donor cultivation process.

• Launched enhanced website - www.haasfoundation.org - featuring information about the Foundation (history, mission, goals), Adopt-a-School program, online donation, volunteer opportunities, and e-newsletter registration.

• Created PowerPoint presentations to help promote the Foundation.

Communication with Schools• Implemented orientation meetings with more than 300 school

coordinators in 9 Educational Service Districts (ESD), increasing awareness of the Foundation's Adopt-a-School and matching grants program.

• Recruited 20+ Haas School Fund Coordinators for the newly formed Haas Educators Ambassador Program (HEAP).

• Launched an Educator e-newsletter targeting 812+ schools to create and encourage better communication.

• Launched an e-newsletter for Friends of the Saul & Dayee G. Haas Foundation.

Development• Pursued in-kind sponsorship grants securing commitments from

several donors. • Sponsored and attended the Edward R. Murrow Symposium for

the 25th year anniversary. This event honors Saul Haas and his career in Journalism. The day is filled with workshops for college students from WSU and Idaho campuses.

• Achieved 100% contribution support from Board and Staff, increasing annual fund giving 64%.

• In 2004-2005, we supported students across the state in 588 schools with $279,208 in grants and $46,896 in matching grants.

regional events

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Edward R. Murrow Symposium 2005 at Washington State University.

Dave Ross

During May and June, Foundation staff and Board members traveled around the state meeting 313 school fund coordinators.

Emory Bundy (right), Haas Board member, congratulates Yakima School Fund

Coordinator Shawn John (left), recipient of one of the extra $110 fund awards.

Edward R. Murrow SymposiumThe Haas Foundation sponsored and attended this symposium for the 25th year. This event honors Saul Haas and his career in Journalism. The day is filled with workshops for college students from WSU and Idaho campuses.

Spring 2005 Orientation MeetingsWe conducted orientation meetings with more than 300 school coordinators in 9 ESDs, increasing awareness of the Foundation's Adopt-a-School and matching grants program.

special memories

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Garfield/Franklin High School Tribute to Frank HanawaltFrank Hanawalt, retired executive director of the Haas Foundation and principal of Garfield and Franklin High Schools in Seattle, was honored in a special ceremony on April 7, 2005, at Garfield High School.

“Mr. Hanawalt is proof that one individual can make a

difference,” Raj Manhas, Seattle Public School’s

Superintendent

Mr. Hanawalt received a standing ovation from over 1,200 students, colleagues and dignitaries.

Jon Galt Bowman, Haas Foundation Board President, presented Mr. Hanawalt with a plaque honoring his many years of service.

Karel Cipra, Garfield Associated Student Body President, presented Frank with Garfield High memorabilia as a tribute from the students.

Executive Director Recognition DinnerThe board honored Frank Hanawalt for his dedication, leadership and contributions serving nearly 20 years as the Haas Foundation's Executive Director. They also welcomed the Foundation’s new Executive Director, Bonnie Hilory.

Sue Russell reminiscences with Frank about special memories of their service together at the Foundation.

2004-2005 Board of DirectorsJon Galt Bowman…………… PresidentDr. Carver Gayton………..… Vice-President Deesa M. Haas……………... Secretary Lee A. Miller………………… TreasurerEmory Bundy Hon. Betty B. FletcherRuth GerberdingR. Danner GravesFrank S. HanawaltHon. Charles V. JohnsonTom LordJohn MackenzieRichard (Dick) McCormickGeorge P. MoynihanRoger D. Percy

Foundation StaffBonnie B. Hilory……………… Executive DirectorSusan C. Russell……………. School Fund Manager

VolunteersMacy Cross…………………… Detective-Absent SchoolsKazu (Yoshikazu) Funato…… Development DirectorClary Goedert-Gasper………. Database SupportCaren Gussoff……………….. Grant WriterMelody Hazen………………... Presentation/Annual ReportSharrie Hyder………………… Grant WriterPam Jones…………………… Office SupportInga Jugurt…………………… Database GuruChuck (Arthur) Kirchmeier…… Graphic DesignerHolly Knowles…………………. Research/Office SupportFrancis LeSourd………………. Grant WriterHeather Mehaffie……………… Copy EditorChloe Moss……………………. Presentation SupportAnthony Nirschl……………….. Volunteer CoordinatorSaravan Paramashivan……… IT SupportCindy Roberts…………………. Newsletter EditorCarolyn Storie…………………. Grant Research/Event SupportVelle Wright……………………. Grant WriterGeoff Yamasaki……………….. Grant Writer

foundation support

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Pro Bono SupportPreston-Gates-Ellis, Alan WicksBranch, Richards & Co.

In-Kind SponsorsGoogle, Ad WordAccretive, Network HostMike Koss, Server SpaceMelody Hazen, Photo ArtworkSaravan Paramashivan, Technology SuppliesKevin Talbot, Volunteer Gifts

DonorsiSOLD ItJon Galt Bowman Emory Bundy Hon. Betty B. FletcherDr. Carver Gayton Ruth GerberdingR. Danner GravesFrank S. HanawaltBonnie B. Hilory Hon. Charles V. JohnsonTom LordJohn MackenzieRichard (Dick) McCormickLee A. Miller George P. MoynihanRoger D. PercySusan C. Russell

Heritage Advisory CouncilMaurice (Maury) ClarkEllen DialDuff KennedyShirley SalomonAlan WicksColleen S. Willoughby

About Saul Haas (1896-1972)

Saul Haas left the New York ghetto for the Pacific Northwest with ambitious dreams that he realized in a full, occasionally controversial, life as a journalist, political activist, and pioneering broadcaster. The founder of KIRO radio and a power in Washington Democratic politics, Haas was complex and contradictory, self-educated and variously described as brilliant, irascible, compassionate, and a benevolent despot — or sometimes not so benevolent. While building KIRO into a powerful station, he remained immersed in politics, serving as state director of the Democratic National Campaign Committee. Haas saw great promise in public television as an educational tool and in 1968 was appointed to the Corporation for Public Broadcasting's first board of directors. He had a lifelong empathy for the underprivileged and formed the Saul and Dayee G. Haas Foundation to aid needy students. The Saul and Dayee G. Haas Foundation was founded in 1963, and is celebrating it’s 42nd year of service supporting over 15,000 of Washington’s young people annually.

ACCOUNTANT’S REPORTBoard of DirectorsThe Saul and Dayee G. Haas Foundation (a corporation)

We have reviewed the accompanying statement of net assets arising directly from cash transactions of The Saul and Dayee G. Haas Foundation (a corporation) (the “Foundation”) as of June 30, 2005, and the related statements of revenue collected, contributions and expenses disbursed, and changes in net assets for the year then ended in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the Foundation’s management.A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.As described in Note 2, these statements were prepared on the basis of cash receipts and disbursements, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America.Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with the basis of accounting described in Note 2.The financial statements for the year ended June 30, 2004, were audited by us, and we expressed an unqualified opinion on them in our report dated October 28, 2004 but we have not performed any audit procedures since that date.

Branch, Richards & Co.Seattle, WashingtonAugust 5, 2005

STATEMENTS OF NET ASSETS ARISING DIRECTLY FROM CASH TRANSACTIONS

JUNE 30, 2005 AND 2004

2005 2004

(Unaudited)  

ASSETS

Cash $ 1,131,730 $ 1,032,630

Investment securities—at cost:

Treasury notes (fair value, $3,472,258 and $3,454,127) 2,837,161 3,037,206

Bonds (fair value, $1,273,727 and $1,394,317) 1,072,833 1,322,423

Equity securities (fair value, $2,902,440 and $2,329,894) 1,985,119 1,636,525

FNMA mortgage-backed securities (fair value, $ 4,980 and $ 7,360)

8,374 8,374

7,035,217 7,037,158

Note receivable 255,992 310,545

TOTAL ASSETS $ 7,291,209 $ 7,347,703

UNRESTRICTED NET ASSETS $ 7,291,209 $ 7,347,703

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STATEMENTS OF REVENUE COLLECTED, CONTRIBUTIONS

AND EXPENSES DISBURSED, AND CHANGES IN NET ASSETS

FOR THE YEARS ENDED JUNE 30, 2005 AND 2004      

2005 2004

(Unaudited)  

REVENUE AND SUPPORT:

Interest $ 278,942 $ 302,379

Gain on sale of investments 41,603 199,789

Dividends 64,276 62,570

Contributions 19,250 13,150

Total revenue 404,071 577,888

CONTRIBUTIONS AND EXPENSES:

Contributions:

Schools 326,354 375,174

Other 10,000 10,000

336,354 385,174

Expenses:

Salaries 53,676 42,425

Office (printing, telephone, and other) 21,577 8,042

Rent 9,600 8,800

Legal and audit fees 8,303 6,000

Federal excise tax 1,876 (422)

Payroll taxes 5,568 3,270

Employee health plan 5,620 4,859

Employee retirement plan 7,468 3,862

Meetings 4,540 2,669

Parking and travel 5,157 3,081

Insurance 826 826

Total contributions and expenses 460,565 468,586

(DECREASE)/INCREASE IN NET ASSETS—Unrestricted (56,494) 109,302

NET ASSETS—Unrestricted:

Beginning of year 7,347,703 7,238,401

End of year $ 7,291,209 $ 7,347,703

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NOTES TO CASH-BASIS FINANCIAL STATEMENTSFOR THE YEARS ENDED JUNE 30, 2005 AND 2004

NOTE 1 - DESCRIPTION OF ORGANIZATION PURPOSEDESCRIPTION OF ORGANIZATION

The Saul and Dayee G. Haas Foundation (a corporation) (the "Foundation") was originally organized as a trust on June 25, 1963, and received its initial contribution of assets from Mr. Saul Haas. On November 10, 1971, the Foundation was incorporated under the laws of the state of Washington, and all of the assets of the trust were assigned to the corporation on December 1, 1972. Mr. Haas passed away on October 17, 1972, and the Foundation subsequently received contributions from his estate totaling $2,772,641. On October 22, 1974, the Foundation changed it name to The Saul and Dayee G. Haas Foundation. Mrs. Haas passed away on December 16, 1983, and the Foundation subsequently received contributions from her estate totaling $1,829,500. During the fiscal year ended June 30, 1989, the Foundation received the final distribution of cash of $17,374 from Mrs. Haas' estate.

The purpose of the Foundation is to contribute moneys, generated through investments of the Foundation's corpus, primarily to junior and senior high schools throughout the state of Washington to assist students to stay in school and to realize their full potential. The Foundation is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.

NOTE 2 - BASIS OF REPORTINGThe financial statements of the Foundation are prepared on the cash basis of accounting. Consequently, revenue and related assets are recognized when received rather than when earned; contributions and expenses are recognized when paid rather than when the obligation is incurred; and increases or decreases in the market value of investment securities and amortization of bond discounts and premiums are not reflected in the financial statements. The financial statements do not include accrued interest income of approximately $63,031 and $72,619 at June 30, 2005 and 2004, respectively. Further, no separate statement of cash flows is provided because the information is included in the cash-basis statements of revenue collected, contributions and expenses disbursed, and changes in net assets.

Investment securities, except for equity securities, are carried at cost. Equity securities are carried at cost or, if donated, at market value on the donation date.

NOTE 3 – NOTE RECEIVABLEThe Foundation has a note receivable that is collateralized by a real estate deed of trust. The note requires monthly payments in the amount of $6,300, including interest at 7.5% and principal, through June 1, 2009, at which time the remaining balance is to be paid in full.

CPA report

Maturity Par Value Cost Interest Rate

Due in one to five years 225,000$ 204,356$ 5.9 - 7.0%Due in over 6 years 875,000 868,477 6.25 - 7.15%

1,072,833$

Maturity Par Value Cost Interest Rate

Due in one to five years 900,000$ 895,353$ 2.68 - 6.5%Due in over 6 years 1,975,000 1,941,808 4.25 - 8 %

2,837,161$

NOTE 4 – MANDATORY INCOME DISTRIBUTIONSThe 1969 Tax Reform Act, as amended by the Economic Recovery Tax Act of 1981, provides that for taxable years beginning after 1981, a private foundation is required to distribute its minimum investment return (5% of the Foundation's net investment assets less federal excise tax) within the year received or the following year or be subject to a 15% first-level tax on its undistributed income. Amounts distributed in excess of the required minimum in prior years reduce the current year's required minimum distribution. The Foundation has met or exceeded the required minimum distribution in prior years and at June 30, 2005, has an excess distribution carryover of $130,656.

NOTE 5 – INVESTMENT SECURITIESAt June 30, 2005, the fair value of the Foundation's investment in equity securities exceeded cost by $991,719. Gross unrealized gains at that date were $1,097,887.The Foundation purchased investment securities aggregating $683,485 and $1,272,280 in 2005 and 2004, respectively. The Foundation sold or redeemed investment securities aggregating $326,495 and $761,360 in 2005 and 2004, respectively. Gain or loss on the sale of investments is calculated using the specific identified cost method.A summary of the Foundation's investment in bonds (principally corporate) at June 30, 2005, is as follows:

A summary of the Foundation's investment in treasury notes at June 30, 2005, is as follows:

The FNMA mortgage-backed security with a cost of $8,374 bears interest at 7% and has a stated maturity date of 2010.

NOTE 6 – EMPLOYEE RETIREMENT PLANOn October 31, 2001, the Board of Directors adopted and implemented a Simple Employee Pension Plan ("SEP IRA") under Section 408(k) of the Internal Revenue Code beginning with the 2001 - 2002 fiscal year. The amount of the Foundation's annual contribution to each employee's SEP IRA shall be 10% of the employee's annual compensation. Contributions totaled $7,468 in 2005.

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The Saul & Dayee G. Haas Foundation is a tax-exempt 501(c)(3) privately funded foundation.