| FORM 990, PART V, LINE 2A AND 2B AND PART VII |
THE FOUNDATION REIMBURSES THE ESTEE LAUDER COMPANIES, INC. TO COVER COMPENSATION AND BENEFITS FOR THE FOUNDATION'S STAFF WHO EXCLUSIVELY CONDUCT THE FOUNDATION'S ACTIVITIES. ALL SUCH EMPLOYEES ARE REPORTED ON ANNUAL W-2 FILINGS THROUGH THE ESTEE LAUDER COMPANIES. ACCORDINGLY, ALL REQUIRED FEDERAL EMPLOYMENT TAX RETURNS ARE FILED BY THE ESTEE LAUDER COMPANIES. |
| FORM 990, PART VI, SECTION A, LINE 2 |
BOARD OF DIRECTORS' MEMBERS WILLIAM P. LAUDER, DEBORAH KRULEWITCH, AND ROBERT BIGLER ALL WORK, OR HAVE WORKED, FOR THE ESTEE LAUDER COMPANIES, INC. WHERE THEY SERVE, OR HAVE SERVED, AS CORPORATE OFFICERS. TRANSACTIONS BETWEEN THE FOUNDATION AND THE ESTEE LAUDER COMPANIES DO NOT MEET THE REPORTING REQUIREMENTS FOR SCHEDULE R OF THE FORM 990. IN ADDITION, CERTAIN BOARD MEMBERS MAINTAIN BUSINESS RELATIONSHIPS OUTSIDE OF THE FOUNDATION. |
| FORM 990, PART VI, SECTION B, LINE 11 |
THE DRAFT FORM 990 IS REVIEWED BY MANAGEMENT. AFTER ANY REQUIRED EDITS, THE RETURN IS PROVIDED TO THE FOUNDATION'S AUDIT COMMITTEE FOR THEIR REVIEW AND APPROVAL FOR FILING; THE FINAL FORM 990, AS APPROVED BY THE AUDIT COMMITTEE, IS PROVIDED TO EACH MEMBER OF THE BOARD OF DIRECTORS PRIOR TO THE ULTIMATE FILING WITH THE INTERNAL REVENUE SERVICE. |
| FORM 990, PART VI, SECTION B, LINE 12C |
THE FOUNDATION HAS A CONFLICT OF INTEREST POLICY WHICH REQUIRES BOARD MEMBERS TO SIGN AND SUBMIT ANNUAL STATEMENTS OF ANY CONFLICTS OR POTENTIAL CONFLICTS TO THE BOARD SECRETARY. IF A CONFLICT HAS BEEN DISCLOSED, THE INTERESTED PERSON MUST RECUSE THEMSELVES FROM ANY VOTE ON SUCH TRANSACTIONS. ALL CONFLICTS OF INTEREST ARE DISCLOSED TO THE FULL BOARD OF DIRECTORS. |
| FORM 990, PART VI, SECTION B, LINES 15 A & 15B |
AN ANNUAL REVIEW OF COMPENSATION IS PERFORMED BY THE COMPENSATION COMMITTEE (THE "COMMITTEE") FOR KEY MANAGEMENT. THE COMMITTEE PROVIDES A FULL REPORT OF THE COMPENSATION REVIEW PROCESS AND RESULTS TO THE FULL BOARD OF DIRECTORS FOR APPROVAL. THIS REVIEW INCLUDES A COMPARISON OF COMPENSATION AND ORGANIZATIONAL PERFORMANCE TO PEER NON-PROFIT ORGANIZATIONS. THE COMPENSATION OF OTHER EMPLOYEES IS REVIEWED ANNUALLY BY THE PRESIDENT AND CHIEF OPERATING OFFICER AND APPROVED BY THE FULL BOARD OF DIRECTORS AS A COMPONENT OF THE FOUNDATION'S BUDGET. THE FOUNDATION UTILIZES COMPENSATION INFORMATION GLEANED FROM THE FORMS 990 OF OTHER COMPARABLE ORGANIZATIONS TO ASCERTAIN OVERALL REASONABLENESS OF COMPENSATION. |
| FORM 990, PART VI, SECTION C, LINE 19 |
THE BREAST CANCER RESEARCH FOUNDATION'S FORM 990 IS AVAILABLE ON THE FOUNDATION'S WEBSITE, THROUGH GUIDESTAR'S WEBSITE AND UPON REQUEST. |
| FORM 990, PART XI, LINE 9 - OTHER CHANGES IN NET ASSETS |
BAD DEBT EXPENSE OF $201,055. |
Attach to Form 990 or 990-EZ.