THE SIERRA CLUB FOUNDATION · THE SIERRA CLUB FOUNDATION Balance Sheets December 31, 2010 and 2009 Assets 2010 2009 Cash and cash equivalents $ 3,315,198 1,022,659 Money market funds

THE SIERRA CLUB FOUNDATION

Financial Statements and Supplemental Schedule

December 31, 2010 and 2009

(With Independent Auditors’ Report Thereon)

KPMG LLP Suite 1400 55 Second Street San Francisco, CA 94105

KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Auditors’ Report

The Board of Directors The Sierra Club Foundation:

We have audited the accompanying balance sheets of The Sierra Club Foundation (the Foundation) as of December 31, 2010 and 2009, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the Foundation’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Sierra Club Foundation as of December 31, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in the schedule of net assets is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

May 6, 2011


Balance Sheets


Assets 2010 2009

Cash and cash equivalents $ 3,315,198 1,022,659 Money market funds 13,286,850 23,381,330 Contributions receivable, net 5,618,534 2,588,650 Investments 68,812,977 60,612,241 Assets held under split-interest agreements 15,479,848 14,920,311 Other assets 813,501 619,170

Total assets $ 107,326,908 103,144,361

Liabilities and Net Assets

Liabilities:Accounts payable $ 711,378 685,561 Grants payable 4,566,008 3,917,561 Liabilities under split-interest agreements 10,353,039 10,031,842

Total liabilities 15,630,425 14,634,964

Net assets:Unrestricted:

Undesignated 23,766,549 21,106,563 Board-designated 15,902,606 22,181,970

Total unrestricted 39,669,155 43,288,533

Temporarily restricted 39,182,113 32,932,487 Permanently restricted 12,845,215 12,288,377

Total net assets 91,696,483 88,509,397

Total liabilities and net assets $ 107,326,908 103,144,361

See accompanying notes to financial statements.

2


Statement of Activities

Year ended December 31, 2010

Temporarily PermanentlyUnrestricted restricted restricted Total

Revenues, gains, and other support:Contributions $ 5,506,637 35,299,988 138,001 40,944,626 Contributions related to split-interest

agreements 196,179 7,193 — 203,372 Bequests 7,663,802 75,287 — 7,739,089

Total contributions 13,366,618 35,382,468 138,001 48,887,087

Net gains from investments 3,540,321 1,593,800 — 5,134,121 Interest and dividends 1,472,528 248,908 — 1,721,436 Net change in value of split-interest

agreements (543,332) 433,026 386,287 275,981 Other income (loss) 54,903 2,612 32,550 90,065 Net assets released from restrictions 31,411,188 (31,411,188) — —

Total revenues, gains, andother support 49,302,226 6,249,626 556,838 56,108,690

Expenses:Program services 47,653,449 — — 47,653,449 Support services:

Administrative 1,041,539 — — 1,041,539 Fundraising 4,226,616 — — 4,226,616

Total expenses 52,921,604 — — 52,921,604

Change in net assets (3,619,378) 6,249,626 556,838 3,187,086

Net assets, beginning of year 43,288,533 32,932,487 12,288,377 88,509,397

Net assets, end of year $ 39,669,155 39,182,113 12,845,215 91,696,483


3


Statement of Activities



Revenues, gains, and other support:Contributions $ 11,077,192 23,018,441 121,747 34,217,380 Contributions related to split-interest

agreements 94,931 917,357 7,000 1,019,288 Bequests 2,802,631 859,030 — 3,661,661

Total contributions 13,974,754 24,794,828 128,747 38,898,329

Net gains from investments 4,647,718 1,863,336 — 6,511,054 Interest and dividends 1,399,993 206,411 — 1,606,404 Net change in value of split-interest

agreements (414,798) 756,839 258,075 600,116 Other income (loss) 36,776 2,884 102,624 142,284 Net asset reclassification due to

change in law (54,082) 54,082 — — Net assets released from restrictions 27,963,662 (27,963,662) — —

Total revenues, gains, andother support 47,554,023 (285,282) 489,446 47,758,187

Expenses:Program services 41,016,345 — — 41,016,345 Support services:

Administrative 867,675 — — 867,675 Fundraising 4,097,851 — — 4,097,851

Total expenses 45,981,871 — — 45,981,871

Change in net assets 1,572,152 (285,282) 489,446 1,776,316

Net assets, beginning of year 41,716,381 33,217,769 11,798,931 86,733,081

Net assets, end of year $ 43,288,533 32,932,487 12,288,377 88,509,397


4


Statement of Functional Expenses


Support servicesProgramservices Administrative Fundraising Subtotal Total

Grants $ 47,407,159 — — — 47,407,159 Contractual fund raising services — — 4,000,000 4,000,000 4,000,000 Fund raising – other — — 133,844 133,844 133,844 Salaries 133,069 400,924 59,200 460,124 593,193 Employee benefits and taxes 39,221 126,708 18,710 145,418 184,639 Professional services 22,518 138,716 5,997 144,713 167,231 Rent 16,883 43,474 2,955 46,429 63,312 Board of directors meetings — 30,061 — 30,061 30,061 Office equipment and supplies 7,287 16,626 1,130 17,756 25,043 Depreciation 6,533 16,823 1,144 17,967 24,500 Travel 4,061 10,458 711 11,169 15,230 Insurance 3,477 8,953 608 9,561 13,038 Bank charges 2,557 6,584 447 7,031 9,588 Printing and copying 2,513 6,470 440 6,910 9,423 R l t li f 8 121 8 121 8 121Regulatory compliance fees — 8,121 — 8,121 8,121 Postage and shipping 1,301 3,350 228 3,578 4,879 Telephone and telefax 850 2,188 149 2,337 3,187 Publications — 2,078 — 2,078 2,078 Miscellaneous 6,020 220,005 1,053 221,058 227,078

$ 47,653,449 1,041,539 4,226,616 5,268,155 52,921,604


5


Statement of Functional Expenses


Support servicesProgramservices Administrative Fundraising Subtotal Total

Grants $ 40,734,048 — — — 40,734,048 Contractual fund raising services — — 3,900,000 3,900,000 3,900,000 Fund raising – other — — 108,480 108,480 108,480 Salaries 145,197 414,207 58,000 472,207 617,404 Employee benefits and taxes 39,416 122,037 17,089 139,126 178,542 Professional services 39,190 142,895 4,720 147,615 186,805 Rent 18,051 46,482 3,159 49,641 67,692 Office equipment and supplies 7,939 18,033 1,226 19,259 27,198 Board of directors meetings — 25,335 — 25,335 25,335 Depreciation 7,882 15,981 1,086 17,067 24,949 Regulatory compliance fees — 20,192 — 20,192 20,192 Insurance 5,368 13,824 939 14,763 20,131 Travel 5,123 10,873 739 11,612 16,735 Bank charges 3,649 9,395 639 10,034 13,683 P t d hi i 1 534 3 867 263 4 130 5 664Postage and shipping 1,534 3,867 263 4,130 5,664 Telephone and telefax 1,151 2,964 201 3,165 4,316 Printing and copying 1,167 2,880 196 3,076 4,243 Publications — 2,324 — 2,324 2,324 Miscellaneous 6,630 16,386 1,114 17,500 24,130

$ 41,016,345 867,675 4,097,851 4,965,526 45,981,871


6


Statements of Cash Flows

Years ended December 31, 2010 and 2009

2010 2009

Cash flows from operating activities:Change in net assets $ 3,187,086 1,776,316 Adjustments to reconcile change in net assets to net cash

provided by operating activities:Depreciation 24,500 24,949 Loss on disposal of equipment 2,514 — Noncash gifts (234,700) (7,000) Contributions of investment securities (553,003) (387,297) Contributions restricted for long-term investment (138,001) (121,747) Net gains on investments (5,134,121) (6,511,054) Changes in operating assets and liabilities:

Contributions receivable, net (3,029,884) 4,116,178 Other assets 19,814 146,921 Accounts payable 25,817 603,831 Grants payable 648,447 (725,197) Liabilities under split-interest agreements 321,197 809,565

Net cash used in operating activities (4,860,334) (274,535)

Cash flows from investing activities:Proceeds from sale of investments 19,349,793 23,779,817 Purchase of investments (21,863,405) (29,983,730) Sale of money market funds, net 10,094,480 8,168,701 Purchase of property and equipment (6,459) (6,945) Change in assets held under split-interest agreements (559,537) (2,722,113)

Net cash provided by (used in) investing activities 7,014,872 (764,270)

Cash flows provided by financing activity:Contributions restricted for long-term investment 138,001 121,747

Net increase (decrease) in cash and cash equivalents 2,292,539 (917,058)

Cash and cash equivalents, beginning of year 1,022,659 1,939,717

Cash and cash equivalents, end of year $ 3,315,198 1,022,659

Supplemental data for noncash transactions:During the fiscal year ended December 31, 2010, the Foundation received noncash gifts

of $234,700 consisting of an investment property and paintings, totaling $221,500 and $13,200, respectively.

During the fiscal year ended December 31, 2009, the Foundation received noncash assetsof $12,983 related to split-interest agreements. In addition, liabilities associated withthose noncash assets totaled $5,983 for the fiscal year ended December 31, 2009.


7


Notes to Financial Statements


8 (Continued)

(1) Nature of Operations

The Sierra Club Foundation (the Foundation) endeavors to preserve and enhance the natural environment through support of the Sierra Club and other conservation organizations. The Foundation provides grants to these organizations to support charitable, educational, scientific, and legal endeavors. The Foundation provides limited support for lobbying activities as permitted by Section 501(h) of the Internal Revenue Code. No support is provided for political activities.

(2) Basis of Presentation and Summary of Significant Accounting Policies

These financial statements, which are presented on the accrual basis of accounting, have been prepared to focus on the Foundation as a whole and to present balances and transactions according to the existence or absence of donor imposed restrictions.

Net assets and changes therein are classified as follows:

Unrestricted net assets – Net assets not subject to donor imposed stipulations.

Temporarily restricted net assets – Net assets subject to donor imposed stipulations that will be met by actions of the Foundation and/or the passage of time. When a donor stipulated time restriction ends or a purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Permanently restricted net assets – Net assets subject to donor imposed stipulations requiring that they be maintained permanently by the Foundation. The income from these assets is available for either general operations or specific programs as specified by the donor.

Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments and other assets or liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulation or by law. Expirations of temporary restrictions on net assets (i.e., the donor stipulated purpose has been fulfilled and/or the stipulated time period has elapsed) are reported as reclassifications between the applicable classes of net assets.

Contributions, including unconditional promises to give, are recognized as revenues in the period received. Conditional promises to give are not recognized until they become unconditional, that is when the conditions on which they depend are substantially met. Contributions of assets other than cash are recorded at their estimated fair value. Contributions to be received after one year are discounted at an appropriate discount rate commensurate with the risks involved. Amortization of the discount is recorded as additional contribution revenue in accordance with donor imposed restrictions, if any, on the contributions.

(a) Cash and Cash Equivalents

Cash and cash equivalents consist of funds in checking accounts and short term certificates of deposit with an original maturity of three months or less.




9 (Continued)

(b) Money Market Funds

Money market funds are valued at net asset value and are classified as Level 1 assets. Money market funds include $652,054 of cash deposits in money market accounts at financial institutions that are FDIC insured up to $250,000 with the remainder invested in money market mutual funds. The Foundation may draw on these deposits and funds at any time.

(c) Investments and Investments in Property

Investments in marketable equity securities and all debt securities are reported at fair value. Investments in hedge funds, limited liability companies, limited partnerships, and real estate are also reported at fair value as estimated by management based upon information provided by the general partner. Investments in property are reported at fair value.

(d) Fair Value Measurements

FASB ASC Topic 820, Fair Value Measurements and Disclosures, (Topic 820) establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.

Topic 820 provides guidance on measuring the fair value of investments in entities that calculate Net Asset Value (NAV), or its equivalent. It permits investors to use NAV as a practical expedient to estimate the fair value of an investment if the investment meets certain criteria. The Foundation adopted this guidance effective January 1, 2009.

In January 2010, the FASB issued Accounting Standards Update No. 2010-06 (ASU 2010-06), which provides further amendments to Topic 820. The ASU requires new disclosures and clarifies existing disclosures relating to the transfers in and out of Level 1 and Level 2 assets, and disclosures about purchases, sales, issuance and settlements in the rollforward of activity in Level 3 assets. The guidance also clarifies existing disclosures regarding the level of disaggregation, inputs and valuation techniques. The new disclosures and clarification of existing disclosures were adopted by the Foundation effective January 1, 2010, except for the disclosures about purchases, sales, issuance, and settlements in the rollforward of activity in Level 3 assets, which the Foundation will adopt effective January 1, 2011.

(e) Property and Equipment, Net

Property and equipment are recorded at cost at the date of acquisition or fair value at the date of donation in the case of gifts. Depreciation and amortization are computed on the straight line method. The estimated useful lives are three to seven years for office furniture and equipment and three to five years for computer hardware and software. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful lives. Property and equipment, net is included in other assets in the accompanying balance sheets.

(f) Grants

Grants are made by the Foundation for programs preapproved by the board of directors and are not recorded as expense until prescribed conditions are substantially met.




10 (Continued)

(g) Use of Estimates

Management of the Foundation has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with U.S. generally accepted accounting principles. Actual results could differ from those estimates.

(h) Tax Exempt Status

The Foundation is tax exempt under Section 501(c)(3) of the Internal Revenue Code and Section 23701(d) of the Revenue and Taxation Code of the State of California and, generally, is not subject to state or federal taxes on income. However, the Foundation remains subject to state or federal taxes on any net income that is derived from a trade or business, regularly carried on and not in furtherance of the purpose for which it was granted exemption. No income tax provision has been recorded as net income, if any, from unrelated trade or business in the opinion of management, is not material to the consolidated financial statements taken as a whole. Gifts to the Foundation are deductible for income tax purposes under Section 170(b)(1)(A) of the Internal Revenue Code.

(i) Uncertainty in Income Taxes

The Foundation has evaluated the financial statement impact of tax positions taken or expected to be taken in its tax returns. Management has determined that no tax liabilities need be recorded under applicable accounting guidance.

(3) Investments

ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical investments that the Foundation has the ability to access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the investment, either directly or indirectly.

Level 3 inputs are unobservable inputs for the investment.

The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety.




11 (Continued)

The following table presents investments that are measured at fair value on a recurring basis at December 31, 2010:

Fair value measurements atDecember 31, 2010 using

Quoted pricesin active Significant

markets for other Significantidentical observable unobservable

December 31, assets inputs inputsDescription 2010 (Level 1) (Level 2) (Level 3)

Mutual funds:Domestic equity $ 10,607,837 10,607,837 — — International equity 4,982,503 4,982,503 — — Real estate 3,003,212 3,003,212 — — Bonds 22,694,957 22,694,957 — —

Equity securities 74,425 74,425 — — U.S. government and government

agency securities 7,370,241 — 7,370,241 — Domestic fixed income 2,918,018 — 2,918,018 — Limited liability companies:

Equity – U.S. 1,948,944 — 1,948,944 — Equity – Non-U.S. 1,935,656 — 1,935,656 — Equity – Emerging markets 2,918,949 — 2,918,949 —

Hedge funds 4,975,376 — 3,252,552 1,722,824 Limited partnerships and

real estate 5,382,859 — 3,488,147 1,894,712

Total $ 68,812,977 41,362,934 23,832,507 3,617,536

It is Foundation’s policy to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. For the year ended December 31, 2010, there were no transfers in or out of Level 1; however, a hedge fund valued at $459,532 was transferred from Level 2 to Level 3 because the fund is in liquidation and the remaining holdings in the fund have an uncertain time horizon for redemption and distribution.




12 (Continued)

The following table presents investments that are measured at fair value on a recurring basis at December 31, 2009:


Quoted pricesin active Significant

markets for other Significantidentical observable unobservable


Mutual funds:Domestic equity $ 9,696,061 9,696,061 — — International equity 4,992,698 4,992,698 — — Real estate 2,530,372 2,530,372 — — Bonds 20,607,252 10,191,525 10,415,727 —

U.S. government and governmentagency securities 9,052,421 — 9,052,421 —

Domestic fixed income 1,281,000 — 1,281,000 — Limited liability companies 5,713,969 — 5,713,969 — Hedge funds 2,400,289 — 459,532 1,940,757 Limited partnerships and

real estate 4,338,179 — 3,071,751 1,266,428

Total $ 60,612,241 27,410,656 29,994,400 3,207,185

For the valuation of mutual funds and publicly traded equity investments, the Foundation uses quoted prices in principal active markets for identical assets as of the valuation date.

For the valuation of U.S. government/agency securities, domestic and foreign fixed income investments, and certain limited partnership and real estate investments the Foundation uses significant other observable inputs, particularly dealer market prices for comparable investments as of the valuation date as well as net asset value as a practical expedient to estimate fair value.

For the valuation of hedge funds, limited liability companies, certain limited partnerships and real estate investments, the Foundation uses net asset value as a practical expedient to estimate the fair value.




13 (Continued)

The following table presents the Foundation’s investments measured at fair value using net asset value as defined in ASC Topic 820 as of December 31, 2010.

Balance as of RedemptionDecember 31, Unfunded Redemption notice

Description 2010 commitments frequency period

Limited liability companies (i) $ 6,803,549 — 30 days 5 daysHedge fund (ii) 3,252,552 — Quarterly 65 daysHedge fund (iii) 248,383 — Nonredeemable — Hedge funds (iv) 1,474,441 — Nonredeemable — Limited partnership (v) 3,488,147 — Quarterly 30 daysLimited partnerships and real

estate (vi) 1,894,712 2,171,030 Nonredeemable —

Total $ 17,161,784 2,171,030

(i) The Foundation has ownership interests in three limited liability companies that have investments in domestic, non-U.S., and emerging market equities, respectively. The investment strategy is to take advantage of undervalued equities relative to investors’ estimate of intrinsic value. The majority of the investments in these portfolios are traded on active markets.

(ii) This hedge fund is a fund of funds that invests in equity long/short, event driven, relative value, and global asset allocation strategies.

(iii) This hedge fund is in liquidation and redemptions are no longer offered based on the terms of the investment agreement. As the remaining assets in the fund are liquidated from investees, they will be distributed on a prorata basis to shareholders.

(iv) Hedge funds in this category were established for the purpose of investing in opportunities that have a longer horizon for realizing returns and, therefore, the fund agreements have scheduled, but not required, distribution dates in 2012 and 2013.

(v) Limited partnership includes a long-only investment management strategy to generate excess returns with integration of sustainability research within a rigorous fundamental equity analysis framework. All of the investments in this portfolio are traded on active markets.

(vi) Limited partnerships in this category are long-term, multi-manager investment partnerships employing globally diversified private investment strategies, including buy-out, growth capital, and secondary market interests. Capital calls will continue on certain fund commitments until after 2012.




14 (Continued)

The following table presents the Foundation’s activities for investments measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2010.

Fair value measurements usingsignificant unobservable inputs (level 3)

Limitedpartnerships

Hedge and realfunds estate Total

Beginning balances $ 1,940,757 1,266,428 3,207,185 Transfer into level 3 459,532 — 459,532 Total gains or losses

(realized/unrealized):Included in change in net

assets 158,744 195,926 354,670 Purchases, issuances, and

settlements (836,209) 432,358 (403,851)

Ending balance $ 1,722,824 1,894,712 3,617,536

The amount of total gains or lossesfor the period included in changein net assets attributable to thechange in unrealized gains orlosses relating to assets still heldat the reporting date $ 411,297 195,926 607,223

The amounts transferred into Level 3 are hedge funds in liquidation that were valued by the fund as Level 3 and have an uncertain time horizon for distribution.




15 (Continued)

The following table presents the Foundation’s activities for investments measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2009.

Fair value measurements using significantunobservable inputs (Level 3)

Limited Limitedliability partnerships

Hedge funds companies and real estate Total

Beginning balances $ 4,089,597 2,432,691 1,129,559 7,651,847 Total gains or losses

(realized/unrealized)included in changein net assets 363,713 — (30,103) 333,610

Purchases, issuances,and settlements (315,672) — 166,972 (148,700)

Transfers out of level 3 (2,196,881) (2,432,691) — (4,629,572)

Ending balance $ 1,940,757 — 1,266,428 3,207,185

The amount of total gainsor losses for the periodincluded in change innet assets attributable tothe change in unrealizedgains or losses relating toinvestments still held atthe reporting date $ 363,713 — (66,807) 296,906

Investment management fees of $108,680 and $165,476 for the years ended December 31, 2010 and 2009, respectively, have been included as a reduction of interest and dividend revenues in the statements of activities.

(4) Other Assets

Other assets includes investments in property of $221,500 as of December 31, 2010 which consisted of a one-half interest in a home valued at $443,000. For the valuation of the property, the Foundation used significant other observable inputs, specifically the property value per appraisal as of the valuation date (Level 2). The home was sold in 2011 for $425,000.

(5) Endowments

Effective January 1, 2009, the State of California has enacted the California Uniform Prudent Management of Institutional Funds Act (CUPMIFA), the provisions of which apply to funds existing on or established after that date. The impact of adopting CUPMIFA as of January 1, 2009 was a reclassification of $54,082 from unrestricted endowment net assets to temporarily restricted endowment net assets.




16 (Continued)

The Board of Directors of the Foundation has interpreted the CUPMIFA as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Foundation classifies as permanently restricted net assets: (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the organization in a manner consistent with the standard of prudence prescribed by the CUPMIFA.

The Foundation has a policy of appropriating for distribution each year 5% of its endowment fund’s average fair value over the prior three years (excluding those funds with deficiencies due to unfavorable market fluctuations). In establishing this policy, the Foundation considered the long-term expected return on its endowment. Accordingly, over the long term, the Foundation expects the current spending policy to allow its endowment to grow at a rate exceeding expected inflation. This is consistent with the organization’s objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as to provide additional real growth through new gifts and investment return.

The Foundation has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of endowment assets. Endowment assets include those assets of donor-restricted funds that the organization must hold in perpetuity or for a donor-specified period(s) as well as board-designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to provide investment growth in excess of annual payments. Actual returns in any given year may vary from this goal. To satisfy its long-term rate-of-return objectives, the Foundation relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Foundation targets a diversified asset allocation that places a greater emphasis on equity based investments to achieve its long-term return objectives within prudent risk constraints.

The Foundation’s endowment consists of approximately 50 individual funds established for a variety of purposes. Its endowment includes both donor-restricted endowment funds and funds designated by its Board of Directors to function as endowments. Net assets associated with endowment funds, including funds designated by the Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

Endowment net asset composition by type of fund for the year ended December 31, 2010:


Donor-restricted endowment funds $ (51,674) 3,134,000 10,464,147 13,546,473 Board-designated endowment funds 1,815,223 1,788,847 — 3,604,070

Total funds $ 1,763,549 4,922,847 10,464,147 17,150,543




17 (Continued)

Endowment net asset composition by type of fund for the year ended December 31, 2009:


Donor-restricted endowment funds $ (445,262) 2,381,658 10,022,123 11,958,519 Board-designated endowment funds 1,614,480 1,652,741 — 3,267,221

Total funds $ 1,169,218 4,034,399 10,022,123 15,225,740

Changes in endowment net assets for the year ended December 31, 2010:


Endowment net assets, beginningof year $ 1,169,218 4,034,399 10,022,123 15,225,740

Investment return:Investment income 25,564 248,879 — 274,443 Net appreciation 574,008 1,593,800 — 2,167,808

Total investment return 599,572 1,842,679 — 2,442,251

Contributions — — 138,001 138,001 Appropriation of endowment assets

for expenditure (89,747) (954,231) — (1,043,978) Other changes:

Transfers from terminated trusts — — 304,023 304,023 Transfer to Board designated 159,506 — — 159,506 Transfers to remove board

designated endowment funds (75,000) — — (75,000)

Endowment net assets, end of year $ 1,763,549 4,922,847 10,464,147 17,150,543




18 (Continued)

Changes in endowment net assets for the year ended December 31, 2009:


Endowment net assets, beginningof year $ 1,806,566 3,084,275 9,771,450 14,662,291

Net asset reclassification based onchange in law (54,082) 54,082 — —

Endowment net assetsafter reclassification 1,752,484 3,138,357 9,771,450 14,662,291

Investment return:Investment income 35,360 280,456 — 315,816 Net appreciation 963,077 1,154,882 — 2,117,959

Total investment return 998,437 1,435,338 — 2,433,775

Contributions — — 250,673 250,673 Appropriation of endowment assets

for expenditure (388,005) (539,296) — (927,301) Other changes:

Transfers to remove boarddesignated endowment funds (1,193,698) — — (1,193,698)

Endowment net assets, end of year $ 1,169,218 4,034,399 10,022,123 15,225,740

Description of amounts classified as permanently restricted net assets and temporarily restricted net assets (endowment only):

2010 2009

Permanently restricted net assets:The portion of perpetual endowment funds that is

required to be retained permanently either by explicitdonor stipulation of by UPMIFA $ 10,464,147 10,022,123

Temporarily restricted net assets:Term endowment funds $ 1,035,633 955,147 Quasi-endowment with purpose restriction 1,788,847 1,652,741 The portion of perpetual endowment funds subject to a

time restriction under UPMIFA:Without purpose restrictions 214,559 139,682 With purpose restrictions 1,883,808 1,286,829

Total endowment funds classified as temporarilyrestricted net assets $ 4,922,847 4,034,399




19 (Continued)

From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or UPMIFA requires the Foundation to retain as a fund of perpetual duration. Deficiencies of this nature that are reported in unrestricted net assets were $51,674 and $445,262 as of December 31, 2010 and 2009, respectively. These deficiencies resulted from unfavorable market fluctuations that occurred shortly after the investment of new permanently restricted contributions and continued appropriation for certain programs that was deemed prudent by the Board of Directors.

(6) Contributions Receivable

Contributions receivable as of December 31, 2010 and 2009 consist of the following:

2010 2009

Receivable due in less than one year $ 3,865,747 1,796,675 Receivable due in one to five years 1,508,750 116,004 Receivable due in greater than five years 841,907 745,269

Total contributions receivable 6,216,404 2,657,948

Less:Allowance for doubtful accounts (124,500) — Amount representing discount at a rate of 0.29% to 7% (473,370) (69,298)

Contributions receivable, net $ 5,618,534 2,588,650




20 (Continued)

(7) Assets Held under Split Interest Agreements

The fair value of assets held under split interest agreements consist of the following:


Quoted pricesin active Significant Significant

markets for other otheridentical observable unobservable


Cash and cash equivalents $ 429,216 429,216 — — Mutual funds:

Equity mutual funds 9,106,225 9,106,225 — — Bond mutual funds 3,639,077 3,639,077 — —

U.S. Treasuries 339,947 — 339,947 — Interest in perpetual trusts 825,644 — — 825,644 Interest in property held in life

estate 1,111,483 — — 1,111,483 Cash surrender value of life

insurance policies 28,256 — 28,256 —

Total $ 15,479,848 13,174,518 368,203 1,937,127


Quoted pricesin active Significant Significant

markets for other otheridentical observable unobservable


Cash and cash equivalents $ 417,642 417,642 — — Mutual funds:

Equity mutual funds 8,100,409 8,100,409 — Bond mutual funds 3,597,870 3,597,870 — —

U.S. Treasuries 674,336 — 674,336 — Interest in perpetual trusts 793,094 — — 793,094 Interest in property held in life

estate 1,309,585 — — 1,309,585 Cash surrender value of life

insurance policies 27,375 — 27,375 —

Total $ 14,920,311 12,115,921 701,711 2,102,679




21 (Continued)

For the valuation of mutual funds investments held under split interest agreements, the Foundation uses quoted prices in principal active markets for identical assets as of the valuation date.

For the valuation of U.S. Treasuries and cash surrender value of life insurance policies, the Foundation uses significant other observable inputs, including dealer market prices for comparable investments and life insurance company surrender value estimates as of the valuation date.

For the valuation of interests in perpetual trusts and a life estate, the Foundation uses significant other unobservable inputs, including trustee valuations and sale transactions on comparable real estate properties.

The following table presents the Foundation’s activities for assets held under split interest agreements measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2010.


Interestin Interest

Perpetual inTrusts Life Estate Total

Beginning balances $ 793,094 1,309,585 2,102,679 Total gains or losses

(realized/unrealized) included inchanges in net assets 32,550 (198,102) (165,552)

Ending balance $ 825,644 1,111,483 1,937,127

The amount of total gains or losses for theperiod included in changes in net assetsattributable to the change in unrealizedgains or losses relating to investmentsstill held at the reporting date $ 32,550 (198,102) (165,552)




22 (Continued)

The following table presents the Foundation’s activities for assets held under split interest agreements measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the year ended December 31, 2009.


Interest Interestin in

perpetual trusts life estate Total

Beginning balances $ — — — Transfer in to level 3 690,471 1,309,585 2,000,056 Total gains or losses

(realized/unrealized) included inchanges in net assets 102,623 — 102,623

Purchases, issuances, and settlements — — —

Ending balance $ 793,094 1,309,585 2,102,679

The amount of total gains or losses for theperiod included in changes in net assetsattributable to the change in unrealizedgains or losses relating to investments still held at the reporting date $ 102,623 — 102,623

(8) Liabilities under Split Interest Agreements

The Foundation has a variety of gift agreements including pooled income funds, annuities, and charitable remainder unitrusts. For trust agreements, the Foundation has recorded its estimated remainder interest in the value of the trusts, discounted at various rates, as contribution revenue. The difference between the fair value of trust assets and the liability under split interest agreements is recorded as contribution revenue. For annuities payable, a liability is recorded for the present value of estimated annuity payments, discounted at various rates ranging from 2% to 7%.




23 (Continued)

(9) Temporarily Restricted Net Assets

Temporarily restricted net assets as of December 31, 2010 and 2009 consist of the following:

2010 2009

Time restrictions:Term and quasi-endowments $ 4,922,847 4,034,399 Trusts 7,275,708 6,937,645 Life insurance polices 28,256 27,375 Other 1,929,770 1,448,154

Total time restrictions 14,156,581 12,447,573

Program restrictions:National Sierra Club programs 22,044,252 17,495,471 Other program restrictions 2,981,280 2,989,443

Total program restrictions 25,025,532 20,484,914

Total temporarily restricted net assets $ 39,182,113 32,932,487

(10) Permanently Restricted Net Assets

Permanently restricted net assets as of December 31, 2010 and 2009 consist of the following:

2010 2009

Endowments $ 10,464,147 10,022,123 Trusts 2,381,068 2,266,254

Total permanently restricted net assets $ 12,845,215 12,288,377

(11) Lease Obligations

Operating leases consist of a lease for real property. The Foundation’s operating lease has a remaining term of more than one year and expires in the fiscal year 2016. Rental expense under operating leases for the years ended December 31, 2010 and 2009 was $63,311 and $65,952, respectively.




24 (Continued)

Future minimum lease payments under operating leases having remaining terms in excess of one year as of December 31, 2010 are as follows:

Fiscal year:2011 $ 65,824 2012 70,308 2013 70,308 2014 70,308 2015 70,308 2016 and thereafter 24,783

$ 371,839

(12) Transactions with the Sierra Club and its Chapters

The Foundation had the following transactions with the Sierra Club and its chapters:

In accordance with a fundraising contract between the Foundation and the Sierra Club, the Foundation agreed to reimburse the Sierra Club an amount not to exceed $4,200,000 and $4,000,000 for the years ended December 31, 2010 and 2009, respectively, for fundraising costs incurred on behalf of the Foundation. The Foundation paid $4,000,000 and $3,900,000 of fundraising costs for the years ended December 31, 2010 and 2009, respectively. Of the preceding amounts, $645,000 and $606,000 was included in accounts payable as of December 31, 2010 and 2009, respectively.

The Foundation receives certain gifts and makes grants on an advisory basis to the Sierra Club and its chapters and groups. The Foundation made grants to the Sierra Club National Programs of $33,089,753 and $26,280,574 for the years ended December 31, 2010 and 2009, respectively, and to the Sierra Club chapters of $4,681,252 and $5,707,792 for the years ended December 31, 2010 and 2009, respectively.

Accounts receivable from the Sierra Club were $174,594 and $140,991 as of December 31, 2010 and 2009, respectively.

Grants payable to the Sierra Club were $4,566,008 and $3,917,561 as of December 31, 2010 and 2009, respectively.

The Foundation’s employees participate in the Sierra Club’s Employee Benefit Plan, a contributory defined benefit plan that covers substantially all of its employees. The benefits are based on years of service and the employee’s compensation history. Employees are eligible to participate and become vested after two years of service. Employee benefit plan expense was $23,779 and $43,413 for the years ended December 31, 2010 and 2009, respectively.

(13) Gift Annuities

The Foundation maintains a separate account as a reserve fund adequate to meet the future payments under all outstanding gift annuity agreements. The funds are held by a broker custodian and are managed by professional investment managers. Investments are made in securities with readily determinable fair values and debt securities, all of which are measured at fair value.




25

(14) 403(b) Defined Contribution Plan

The Foundation has a 403(b) defined contribution plan, which covers substantially all employees who meet certain minimum requirements. The Foundation matches 100% of employee contributions up to 2% of eligible compensation. Foundation contributions to the plan totaled $11,093 and $10,721 for the years ended December 31, 2010 and 2009.

(15) Subsequent Events

The Foundation has evaluated subsequent events through May 6, 2011, the date at which the financial statements were available to be issued.

The Sierra Club FoundationSchedule of Net Assets

As of December 31, 2010

Balance Support and Grants and Interfund BalanceJanuary 1st Revenue Other Expenses Transfers December 31, 2010

UNRESTRICTED NET ASSETSUndesignated

Bequests/Deferred Gifts 8,747,872$ 2,412,749$ -$ (268,375)$ 10,892,246$ Conservation Projects 4,556,080 - (555,737) (172,508) 3,827,834 EarthShare 380,877 399,209 (268) (779,818) - General 3,269,920 4,075,336 (8,193,231) 2,886,513 2,038,539 Graham Settlement 642,139 - - (642,139) - Hal Anger Bequest Fund 891,648 5 - (891,653) - Harriet Vogt Bequest 8,488,385 - - (3,893,159) 4,595,226 Illiquid Assets 3,293 13,200 - (750) 15,743 Invest Income,Gains,Losses (7,092,714) 3,888,076 - 401,418 (2,803,220) Paul C. Kahn Bequest - 2,600,000 - - 2,600,000 Property & Equipment 47,173 - (25,111) 6,460 28,522 Ronald Simonton Bequest Fund 410,257 - - (410,257) - Shasta Alpine Lodge 42,563 - (1,904) - 40,659 Shasta Land 36,000 - - - 36,000 Unrestricted Bequest Rec - 2,495,000 (204,500) 204,500 2,495,000 Zena Cornin Bequest 683,070 - - (683,070) -

Total 21,106,563 15,883,574 (8,980,750) (4,242,839) 23,766,549

Designated

Gift Annuity Pool 2,886,118 501,672 - (44,734) 3,343,056 Gift Annuity Pool Surplus 263,551 21,538 - (8,682) 276,407 Harriet Vogt Bequest Chapters - - (60,350) 1,451,516 1,391,166 Karlin Endowment Granting 22,599 - (1,500) (2,769) 18,330

Total 3,172,267 523,210 (61,850) 1,395,331 5,028,958

Donor Advised Granting

Adam Werbach Advised 4,833 - - - 4,833 BBTO DAF 2,524,293 3,140 - (997,265) 1,530,169 Bert Fingerhut & Caroline Hick 3,270 - - - 3,270 Durgin/McKinley Donor Advised 45,766 - - (26,000) 19,766 Frank Family Environmental Fd 199,574 26,923 - (10,014) 216,483 Hunter & Isabella Morrison 30,988 - (9,000) 604 22,591 McCloskey Conservation 549 - - - 549 MFO Fund 10,122,709 10,160 - (7,619,900) 2,512,969

Total 12,931,982 40,223 (9,000) (8,652,575) 4,310,630

Sierra Club Chapters

Alabama Chapter 127,694 - (1,496) 23,818 150,016 Alaska Chapter 17,613 - (5,816) 20,653 32,450 Angeles Chapter 12,922 57,611 (140,968) 96,265 25,829 Arkansas Chapter 115,893 - (297) 12,758 128,353 Atlantic Chapter 109,369 4,646 (139,977) 84,243 58,281 Connecticut Chapter 49,230 - (46,934) 29,958 32,255 Cumberland Chapter 50,165 121,444 (47,688) 18,731 142,652 Dacotah Chapter 33,488 500 - 6,758 40,746 Delaware Chapter 60,599 35 (4,531) 9,203 65,306 Delta Chapter 76,635 2,000 (49,701) 14,425 43,359 Florida Chapter 221,418 - (20,504) 65,426 266,339 Georgia Chapter 6,657 38,539 (46,788) 31,059 29,467 Grand Canyon Chapter 4,781 17,156 (52,356) 41,471 11,052 Hawaii Chapter 33,580 9,397 (38,763) 17,712 21,925 Hoosier Chapter 21,624 7,520 (26,535) 30,819 33,427 Idaho Chapter 50,740 - (15,107) 20,231 55,863 Illinois Chapter 54,735 50,208 (122,592) 82,518 64,868 Iowa Chapter 2,281 13,260 (34,934) 25,118 5,726 John Muir Chapter 92,045 11,360 (48,448) 47,894 102,850 Kansas Chapter 71,930 8,250 (62,304) 16,002 33,879 Kern-Kaweah Chapter 90,150 1,500 (48,000) 6,064 49,714 Loma Prieta Chapter 81,941 14,667 (97,043) 45,128 44,693 Lone Star Chapter 8,246 30,000 (126,232) 105,318 17,332 Los Padres Chapter 21,597 623 (23,683) 22,211 20,747 Maine Chapter 39,701 1,989 (37,053) 13,687 18,324 Maryland Chapter 126,140 11,006 (68,642) 47,163 115,667

26




Massachusetts Chapter 37,745 9,650 (50,691) 65,310 62,014 Michigan Chapter 62,573 56,355 (87,903) 56,377 87,403 Mississippi Chapter 12,055 - (7,242) 9,637 14,450 Missouri Chapter 63,068 3,924 (28,065) 36,426 75,353 Montana Chapter 56,117 - (16,532) 10,181 49,767 Mother Lode Chapter 81,732 4,005 (47,892) 49,134 86,980 Nebraska Chapter 32,140 4,250 (46,330) 11,773 1,833 New Hampshire Chapter 8,900 3,955 (32,330) 22,094 2,619 New Jersey Chapter 58,218 33,550 (124,718) 48,223 15,273 North Carolina Chapter 405,804 315,300 (122,819) 21,988 620,273 North Star Chapter 43,227 10,057 (30,785) 53,541 76,041 Ohio Chapter 62,582 25,384 (66,981) 35,984 56,969 Oklahoma Chapter 46,345 - (45,765) 13,810 14,389 Oregon Chapter 70,525 3,850 (113,457) 61,830 22,748 Pennsylvania Chapter 30,996 100 (23,327) 70,446 78,214 Puerto Rico Chapter 16,148 - (7,567) 10,760 19,342 Redwood Chapter 83,391 3,070 (30,059) (7,227) 49,175 Rhode Island Chapter 3,433 100 (13,076) 10,364 820 Rio Grande Chapter 21,752 1,275 (20,936) 30,133 32,224 Rocky Mountain Chapter 70,212 2,500 (2,545) 64,574 134,741 San Diego Chapter 85,619 15,938 (59,785) 34,609 76,381 San Francisco Bay Chapter 129,567 95,159 (147,922) 78,357 155,161 San Gorgonio Chapter 44,172 130 (2,823) 13,847 55,327 Santa Lucia Chapter 16,823 30,476 (43,995) 13,891 17,195 South Carolina Chapter 48,625 9,328 (19,863) 22,025 60,114 South Dakota Chapter 34,220 200 (15,020) 7,399 26,799 Tehipite Chapter 64,193 500 (4,741) 3,960 63,913 Tennessee Chapter 52,608 - (30,608) 20,457 42,457 Toiyabe Chapter 40,765 10,515 (49,047) 27,254 29,487 Utah Chapter 64,273 9,300 (29,773) 21,233 65,034 Ventana Chapter 19,488 9,200 (27,383) 10,368 11,674 Vermont Chapter 106,949 - (24,595) 11,758 94,112 Virginia Chapter 10,352 - (42,951) 57,743 25,144 Washington DC Chapter 54,030 3,000 (29,205) 10,788 38,614 Washington State Chapter 23,659 14,739 (32,627) 73,454 79,224 West Virginia Chapter 32,747 - (9,372) 16,227 39,602 Wyoming Chapter 43,622 6,250 (656) 7,612 56,829

Total 3,719,851 1,083,770 (2,795,777) 2,040,973 4,048,817

Sierra Club Groups

Alamo Group 587 750 - 3 1,340 Allegheny Group 2,877 - (2,421) 1,561 2,017 Ancient Island Group 708 510 (1,108) 499 609 Anne Arundel Group 2,713 - (999) 8 1,723 Atlanta Group 378 - - 1 380 Austin Group 222 - - 1 223 Big Bear Group 5 - - 0 5 Big Bend Group 1,376 - - 5 1,381 Big Bend, FL Group 2,066 - - 610 2,677 Black Hills Group 2,367 250 (355) 9 2,272 Blue Ridge Group 1,361 - - (1,257) 103 Broward County Group 4,160 - (3,339) 855 1,676 Cahaba Group 6,223 - (1,283) 21 4,962 Calusa Group 920 - (1,602) 682 0 Cape Fear Group 1,714 - - 6 1,720 Capital Group 9 - - 3,270 3,279 Catoctin Group 2,564 300 (362) 10 2,512 Cedar-Wapsie Group 845 - - 3 848 Central Florida Group 12,036 - (7,206) 882 5,712 Central New Mexico Group 6,619 111 (355) 24 6,400 Central Ohio Group 960 450 498 11 1,919 Central Piedmont Group 17 250 - 1,076 1,344 Central Upper Peninsula Group 928 - - 3 931 Chicago Group 8 - - 0 8 Chickasaw Group 528 - - 515 1,044 Chippewa Valley Group 113 100 - 1 214 Columbia Group 88,676 - (3,706) 321 85,292 Cypress Group 1,259 - (584) 1,747 2,422 Dallas Group 13,509 4,025 (749) 55 16,840

27




Delta-Sierra Group 5,507 50 - 21 5,577 Eastern Missouri Group 3,798 775 - 15 4,589 Eastern Missouri Trail - 2,000 - 1 2,001 Eastern Shore Group 3,328 - - 12 3,341 El Paso Group 1,134 - - 4 1,138 Enos Mills Group 0 - - - 0 Falls of the James Group 2 503 - 1 506 Finger Lakes Group 1 1,160 (440) 600 1,320 Foothills Group 1 - (1,291) 1,757 468 Four Lakes Grp 18,215 8,100 (10,188) 68 16,195 Governor Pinchot Group 791 88 (857) 743 765 Great Waters Group 213 250 - 1 464 Greater Baltimore Group 2,346 - (2,346) 0 0 Greater Charlotte Harbor Grp 2,073 - - 426 2,499 Greater Fort Worth Group 2 - - 0 2 Greater Louisville Group 4,335 - - 16 4,351 Headwaters Group (NC) 3,408 - - (3,299) 109 Heartlands Group 1,121 - (40) 4 1,085 Houston Group 74 27,111 (25,998) 11 1,198 Howard County Group 9,215 - (1,710) 29 7,534 Hudson Mohawk Group 5,578 - (536) 1,575 6,618 Indian Peaks Group 2 - - 0 2 Iroquois Group 1 - (1,865) 2,267 403 Kauai Group 7,572 3,285 - 32 10,889 Kisatchie Group 22,634 6,000 (10,815) 91 17,910 Kittatinny Group 1,480 - (409) 410 1,481 Lake Erie Group 1,847 - - 363 2,210 Lake Group 3 21,500 (25,254) 3,768 17 Lancaster Group - - - 908 908 Lehigh Valley Group 789 - (607) 560 742 Long Island Group 5,139 13,450 (5,516) 3,029 16,103 Lower Hudson Group 7,436 - (8,181) 4,384 3,638 Loxahatchee Group 1,315 1,497 (375) 1,008 3,445 Manatee-Sarasota Group 3,159 2,083 (1,938) 2,888 6,191 Many Rivers Group 301 - - 1 302 Marin Group 939 50 - 4 992 Mary's Peak Group 0 1,180 (1,180) 1 1 Maui Group 939 - - 3 942 Medoc Group 121 - - 0 121 Mendocino Group 1 - - 1,106 1,107 Miami Group 28,968 - (2,276) 1,024 27,715 Miami Group (OH) 13,418 6,962 (16,108) 35 4,306 Middle Snake Group 222,190 - (8,071) 806 214,924 Middle Tennessee Group 5,235 - (701) 591 5,125 Mid-Hudson Group 502 113 (1,394) 2,425 1,645 Missouri Valley Group 69 - - 0 70 Moku Loa Group 3,142 1,150 (2,810) 10 1,493 Montgomery County Group 7,163 165 (807) 24 6,545 Moshannon Group 2,930 - (1,513) 467 1,884 Mount Vernon Group 39 - - 0 39 Mt Baker Group 8,902 - - 33 8,935 Mt. Evans Group 733 - - 3 736 Napa County Group 4,237 2,200 (16,599) 11,120 958 Nassau Group 460 3,050 (3,517) 390 384 Nature Coast Group 5,187 - - (5,182) 5 New Orleans Group 2,516 - (412) 8 2,112 New York City Group 19,507 - (12,595) 6,143 13,056 Niagara Group 2,152 - (3,175) 1,189 166 North Group 2 - (749) 1,220 473 Northeast Florida Group 7,062 - (5,646) 728 2,144 Northeast Ohio Group 4 - - 0 4 Northeastern Pennsylvania Grp 75 - (329) 470 216 Northern New Mexico Group 349 - - 1 350 Northwest Florida Group 6,548 - - 24 6,572 Oahu Group 1,609 175 - 6 1,790 Orange-Chatham Group 2,160 - (1,222) 1,590 2,528 Otzinachson Group 282 - - 381 662 Piasa Palisades Group - 5,000 - 6 5,006 Piedmont Plateau Group 3,509 520 (1,349) 1,143 3,822 Pikes Peak Group 0 - - - 0

28




Pisgah Group 799 - - 939 1,738 Portage Trail Group 1,484 - (1,484) 2 2 Poudre Canyon Group 961 - - 4 964 Prince George County Group 4,085 - - 15 4,100 Rachel Carson Group 0 - - - 0 Ramapo-Catskill Group 3,842 - - 416 4,258 Rappahannock Group 1,609 - - 6 1,615 Rincon Group 5,232 4,000 (1,365) (229) 7,637 Robert Lunz Group 3,365 - - 12 3,377 Rochester Group 939 2,525 (4,085) 2,084 1,463 Rogue Group 0 120 - 0 120 Sacramento Group 50 - (604) 560 6 San Bernardino Mtns Group 13,973 9,854 (10,613) 60 13,274 Sangre de Cristo Group 23 - - 0 23 Santa Barbara Group - 1,253 - 2 1,255 Santa Cruz Group 6 100 (4,606) 4,507 7 Sespe Group 8 - - 0 8 Shasta Group 923 - - (347) 577 Sierra Club Huran Valley Group 2,499 421 (2,117) 4 808 Sierra Club Yokuts Group 603 - - 452 1,054 Solano Group 6 - (6,025) 6,020 2 Sonoma County Group 3,381 - (2,920) 3,356 3,817 South Mountain Group 147 - - 1 148 South Platte Group (1) - - 1 - Southeast Gateway Group 1,031 - - 4 1,035 Southeastern Pennsylvania Grp 12,812 100 (940) (422) 11,549 Southern Maryland Group 1,863 - - 7 1,870 State of Franklin Group 64 - - 0 64 Suncoast Group 4,596 - (1,437) 888 4,047 Susquehanna Group 558 - (78) 420 900 Suwannee-St. Johns Group 10,200 1,500 (4,809) 788 7,679 Tampa Bay Group 4,312 - (2,607) 752 2,457 Taquitz Group 16,251 14,900 (24,274) 25 6,903 Teton Group 2,119 2,428 (3,374) 3 1,176 Thunder Ridge Group 693 471 - 3 1,167 Trappers Lake Group 4,346 - - 16 4,362 Turtle Coast Group 1,618 - (916) 651 1,353 Upper Columbia River Group 9,859 750 (1,659) 35 8,985 Upper Cumberland 250 - (292) 251 209 Ventura Network - 500 - 0 500 Volusia-Flagler Group 1,849 - (1,759) 613 703 Western Lake Erie Group 365 - - 1 367 Western Maryland Group 536 - - 2 538 Western NC Group 2,823 461 (519) 11 2,775 White River Group 810 - - 3 813 William Bartram Group 2,818 - (526) 10 2,302 Woods and Wetlands Group 7 - - 0 7 Yolano Group 162 - (327) 450 284

Total 743,389 154,547 (279,723) 80,767 698,980

Quasi-Endowments

Arizona Conservation Endowment 185,000 - - (75,000) 110,000 Frontera del Norte Endowment - - - 143,786 143,786 Higman Colby Library Endowment 1,097,079 - - - 1,097,079 Loma Prieta Chapter Endowment 93,607 - - - 93,607 San Gorgonio Chapter Endowment 50,000 - - - 50,000

Total 1,425,686 - - 68,786 1,494,472

Income & Apprec. on Unrestricted and Quasi-Endowments

Arizona Conservation Endow I&A 20,923 15,968 - (10,214) 26,677 Higman Colby Library Endow I&A 97,627 161,166 - (60,794) 197,998 I & A Frontera del Norte - - - 7,745 7,745 Loma Prieta Chp Endowment I&A 65,450 21,457 - (7,981) 78,926 San Gorgonio Chp Endowment I&A 4,795 7,392 - (2,783) 9,404

Total 188,794 205,983 - (74,026) 320,751

TOTAL - UNRESTRICTED NET ASSETS 43,288,533 17,891,307 (12,127,101) (9,383,584) 39,669,155

29




TEMPORARILY RESTRICTED NET ASSETSSierra Club National Programs

Abigail Mackey Yellowstone 366,542 - (22,723) 121,324 465,142 Arctic Wilderness Campaign 153,743 82,100 (232,950) 7,444 10,337 Artic Refuge Anniversary - 60,000 (42,325) - 17,675 Atlantic Coast Ecoregion 6,091 - (1,072) - 5,018 BEC PEC in Ohio 3,000 - - (3,000) - Beyond Coal Midwest - 76,899 (77,736) 153,101 152,264 Beyond Coal Virginia 73,223 85,000 (83,430) - 74,793 Blue Green Alliance - 12,500 (12,500) - - BP Oil Disaster - 27,562 (17,986) - 9,576 Breaking Coal's Hold (no MTS) - 920,000 (870,925) - 49,075 Building Bridges 291,639 20,982 (771,240) 518,312 59,692 CAFO Litigation 224 - - (224) - California Vision 2020 44,764 - (27,847) - 16,917 California/Nevada Desert 11,724 - (11,724) - - Center for Environmental Innov 44,581 - - 2,866 47,447 CES Puget Sound - 10,000 - - 10,000 Clair Tappaan Lodge 13,395 6,450 (4,954) - 14,891 Clean Energy Chp Granting - 20,000 - - 20,000 Clean Water Campaign 285 - - (285) - Climate Change Media 1 - - (1) - Climate Recovery 248,272 149,750 (7,180) - 390,842 Climate Recovery IE 250,813 250,000 (161,184) 1,258 340,887 Climate Science Defense - 180,000 (180,000) - - Coal Ominbus 380,959 - (380,959) - - Cool Cities Campaign 67,852 - - (67,852) - Cool Cities MI 98,826 - (98,826) - - CRP Beyond Coal (IE) - 800,000 - - 800,000 CRP Beyond Coal Campaign 242,267 323,575 (776,470) 750,000 539,373 CRP Clean Energy Solutions 217,536 58,000 (753,646) 478,109 - CRP General 50,000 - (50,000) - - CRP Green Transportation - 25,500 (25,500) 10,014 10,014 CRP Initiative to Limit Total - 482,500 (395,040) 3,000 90,460 CRP Resilient Habitats 565,293 206,246 (710,434) 534,931 596,036 CRP Resilient IE - 150,000 - (23) 149,978 Dirty Fuels Campaign 187,439 200,000 (246,731) - 140,708 End Commercial Logging - Litig 225 - - (225) - Energy,GlobalWarming&NuclWaste 25,829 - - - 25,829 Environmental Career 214,171 - 16 (209,602) 4,584 Environmental Law 1,711,458 733,249 (1,506,185) 252 938,774 Environmental Quality - - (509) 509 - Envmtl Justice and Comm 1,440,353 - (1,141,350) 863,228 1,162,231 EPA Climate Solutions 38,626 - (38,626) - - Everglades Restoration 3,263 - - (3,263) - Expediting Renewable Energy 453,304 325,000 (357,407) - 420,897 Field Office: Northeast 64 - - - 64 Field Office: Northern Plains 254,744 - (108,797) - 145,947 Florida Coastal Protection 51 - - (51) - FO - Southeast 6,072 - (6,072) - - Friends of the Foothills Proj 19,400 - (3,300) - 16,100 Fuel Economy Campaign 233,571 214,000 (312,375) - 135,196 George Abraham 58,339 - (2,128) - 56,211 George Graham 169,498 - (12,719) - 156,780 Global Labor Leaders 13,144 - (13,144) - - Global Population & EnvProgram 289,685 290,000 (326,861) 28,839 281,664 Grand Staircase Legal Project - - - 2,241 2,241 Great Lakes Granting 121,718 - (110,074) 25,619 37,262 Great Lakes Great Waters WI - 20,000 (20,000) - - Great Lakes Wind Energy 1,344 3,000 2,097 - 6,441 Great Lakes, Great Communities - 75,000 (19,716) - 55,284 Great Lakes, Great Waters - 54 (54) - - Great Lakes, Great Waters: MI 2,077 20,000 (21,331) - 746 Great Oswegatche Wilderness 15,390 - (1,923) - 13,468 Green Livelihoods India - 33,500 (33,500) - - Gulf Coast Oil Disaster - 4,895 (4,895) - - Gulf Coast Restoration - 12 - - 12 Human Rights and the Environ 12,424 3,000 (9,058) - 6,365

30




Hunter Angler Outreach 1,843,909 - (1,315,044) 441,191 970,056 Hunting and Angling Local 938 - - (938) - Hunting and Angling Natl. 62,217 - - (62,217) - ICO SF Bay Rafting 45,218 4,660 (5,000) 4,277 49,156 ICO: Angeles 46,167 23,868 (24,016) 186 46,205 ICO: Asheville 4,141 - - (4,135) 6 ICO: Atlanta 30,614 231 - 114 30,959 ICO: Austin 1,688 50 - 6 1,744 ICO: Baltimore 12,303 6,850 (14,762) 516 4,908 ICO: Birmingham 4,808 - - 502 5,310 ICO: Boston 5,831 1,800 (6,314) 491 1,809 ICO: Boulder Valley 5,713 5,932 (10,232) 5,008 6,421 ICO: Chicago 25,364 11,115 (8,884) 577 28,172 ICO: Cincinnati 25,209 2,095 (2,145) 579 25,738 ICO: Cleveland 3,588 2,950 (2,000) 498 5,036 ICO: Dallas 27,107 5,100 - 105 32,313 ICO: Eastern Sierra - 950 (648) 1 303 ICO: El Paso 3,833 2,000 (1,449) 18 4,401 ICO: Gainesville - - - 485 485 ICO: Grand Rapids 2,782 - (947) 494 2,328 ICO: Harrisburg 4,589 30 (4,534) 2,495 2,580 ICO: Hartford 9,808 850 (3,010) 1,797 9,446 ICO: Houston 10,163 - (4,621) 21 5,563 ICO: Jacksonville 967 450 (321) 488 1,584 ICO: Lexington 1,970 1,000 (521) 492 2,942 ICO: Louisville 749 - (1,229) 484 5 ICO: Madison 17,814 5,245 (7,937) 530 15,653 ICO: Manatee-Sarasota 1,186 - (787) 488 887 ICO: Miami 8,254 8,060 (13,509) 517 3,322 ICO: Minnesota 8,794 363 (5,234) 2,011 5,933 ICO: Nashville 1,192 - (563) 488 1,118 ICO: National 164,394 321,191 (279,871) 4,792 210,506 ICO: New Haven 9,527 3,000 (4,741) 515 8,300 ICO: New Jersey 7,340 1,600 - 514 9,454 ICO: New York 16,808 11,683 (6,518) 712 22,685 ICO: Oklahoma City (0) - - - (0) ICO: Orange County 19,863 3,361 (3,604) 75 19,694 ICO: Orlando 1,001 - (1,049) 486 439 ICO: Philadelphia 8,340 340 (6,169) 2,026 4,537 ICO: Phoenix 1,815 - (800) 6 1,021 ICO: Portland 15,907 - (500) 6,371 21,778 ICO: Raleigh 6,422 - (1,982) 506 4,945 ICO: Rocky Mountain 5,666 - (5,518) 1 149 ICO: Sacramento 7,896 2,146 (5,900) 25 4,167 ICO: San Diego 15,918 5,110 - 63 21,091 ICO: San Francisco 43,965 5,905 - 2,289 52,158 ICO: San Jose 31,048 7,331 - 4,254 42,633 ICO: Seattle 139,818 17,462 (54,819) 6,721 109,182 ICO: Spokane 5,532 5,000 - 6,589 17,121 ICO: St Louis 789 2,000 (1,000) 491 2,280 ICO: Tampa Bay 4,067 - (361) 499 4,204 ICO: Tucson 786 100 (1,200) 502 188 ICO: Washington D.C. 17,558 1,626 (5,303) 1,059 14,940 ICO: Washtenaw 4,874 1,000 (1,638) 501 4,737 ICO: West Palm Beach 2,623 3,847 (2,432) 495 4,533 ICO: Winston-Salem (0) - - - (0) IFI Reform Project - 123,000 (42,391) - 80,609 International Committee 12,239 - (3,349) - 8,890 Jeffrey Brenner Midwest Proj 26,559 - (1,755) 9,532 34,336 Keeping Coal Down - 348,677 (54,021) - 294,656 L. Batten Fund for New Mexico (8,317) 41,290 (87,853) 709,820 654,940 Lands 2,593 - (2,593) - - Larry Mehlhaff Conservation 37,637 650 - - 38,287 Le Conte Memorial - 223,550 (2,575) (5,959) 215,016 Lynne Aromstam Mem Granting 47,918 - (493) 7,192 54,618 MAHA Central Valley Clean Air 8,500 - - - 8,500 Maine Woods 2,812 4,000 (6,812) 2,716 2,716 Midwest Clean Energy 20,267 - - (20,267) - Midwest Clean Energy - - (20,267) 20,267 - Midwest Energy Illinois 73 - - - 73

31




Missouri Clean Energy 31,000 - (31,000) - - National Coal (no CES) - 18,750,050 (9,965,408) - 8,784,642 National Educational Project 107,250 5,000 (8,586) (103,665) - Natural Gas Campaign (IE) - 150,000 (46,217) - 103,783 New Mexico National 358,033 - (63,289) - 294,744 No New Coal in '09 756,661 - (756,646) - 15 Northern Arizona Toxics 1,577 - - - 1,577 Northern Rockies Wildlife - 3,500 - (3,500) - Northwest Salmon 89,631 - (23,960) 20,000 85,671 Northwest Wildlands 19,168 - (19,168) - - Ntl Volunteer Educational Proj - 6,002 (6,002) - - Oral History 5,600 - - - 5,600 Outreach to Industrial Workers 59,679 - (59,679) - - Owyhee Canyonlands Campaign 8,405 - (4,569) - 3,836 Peter Grubb Hut 16,631 700 (5,672) - 11,660 Population Committee 55,667 - (11,880) 9,432 53,219 Rebuilding America 60,487 210,000 (270,487) - - Red Tide Campaign 129,507 250,200 (277,633) 51 102,125 Reducing VMT - 200,000 (133,584) 15,000 81,416 Resilient Habitats - Arctic - 6,550 - - 6,550 Resilient Habitats - SN - 100 (100) 8,262 8,262 Resilient Habitats -GYE 56,422 83,277 (142,460) 45,505 42,745 Resilient Habitats WA - 10,000 - - 10,000 Responsible Trade 149,076 9,972 (58,066) - 100,982 Responsible Trade Tours 20,951 - (20,951) - - Restoring the Everglades 30,091 100,000 (114,892) 3,263 18,462 Richard W. Nathan Granting 13,044 - - (448) 12,596 Safeguarding Communities 37,500 - (33,984) - 3,516 San Gabriel Mountains 11,980 215,000 (167,054) 11,489 71,415 Sequoia Campaign 28,330 25 30 - 28,385 Service Trips 783 375 - - 1,158 Sharon Churchwell 1,281 3,268 (1,395) - 3,154 Sierra Nevada Ecoregion 3,246 - (2,254) 225 1,217 Sierra Student Coalition 7,000 30 (91,530) 102,000 17,500 So Appalachian Highlands Eco 37,640 - - - 37,640 SSC Northwest 15,033 - (6,547) - 8,486 SSC: Campus Climate 135,905 - (135,905) - - Stop New Coal, Retire Old Coal - 3,090,000 (3,041,888) - 48,112 Sustainable Fisheries 45,136 - (2,008) - 43,128 Sustainable Washington DC 24,095 - (24,037) - 57 Tar Sands Project - 420,000 (408,764) - 11,236 True Cost of Food 1,012 - 450 - 1,462 Utah Wildlands 3,589 - (3,589) - - Veteran and Military Family 1,216,152 1,355 (8,361,472) 7,619,900 475,935 Volunteer Awards 63,072 - - 573 63,645 Water Sentinels Program 2,431,953 46,522 (1,448,786) (442,536) 587,153 Western Coal Campaign - 32,000 (32,000) - - Western Coal NV UT WY - 85,000 (78,253) - 6,747 Wilderness Coordination 7,743 - (2,023) - 5,720 William Colby Mem Library 149,640 - (136,614) 169,621 182,647 YCE PA - 25,000 (25,000) - - Yosemite Committee 3,120 - (47) - 3,073 Youth Civic Engagement - 201,890 (657,890) 456,000 -

Total 17,495,471 30,992,056 (38,731,327) 12,288,053 22,044,252

Advisory (Non-Club)

Dunsmuir Ridge Alliance 1,227 - - - 1,227 El Sobrante Valley Legal Dfns 3,480 - (72) - 3,408 Frontera del Norte 210,882 - (10,000) (150,691) 50,191 John Muir Trust - 100 - - 100 Long Island Sound GrantingFund 7,585 - (1,957) 5,394 11,023 Monterey Bay Dunes 31 - - - 31 Ouachita Watch 2,526 - - - 2,526 Schroeder Wildlife Granting 7,574 - (4,000) 3,359 6,934

Total 233,306 100 (16,029) (141,938) 75,439

Chapter Granting

Arizona Conservation 14,561 - (41,220) 37,214 10,554

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Community Shares: Utah 14,779 2,846 (200) - 17,426 Community Shares: Wisconsin 24,206 30,004 (7,867) - 46,343 Community Shares:Gtr Milwaukee 1,733 2,782 (1,098) - 3,417 EarthShare of California 129,218 52,694 (14,794) (100,000) 67,118 EarthShare of Georgia 7,827 7,258 (9,525) - 5,561 EarthShare of Illinois 82,666 13,252 (1,032) - 94,887 EarthShare of Michigan 240 2,002 (2,242) - - EarthShare of Missouri 8,166 1,101 (30) - 9,237 EarthShare of Texas - 22,369 (21,819) - 551 Ed Stevens Granting 69,449 - (42,606) 22,010 48,854 Env. Protection Litigation 84 - - (84) - Maine Share 85 6,157 (5,058) - 1,183 Minnesota Environmental Fund 60,904 35,423 (78,627) (1,500) 16,200 Morros Preservation 2,886 - (2,771) (114) - Ocotillo Groundwater Protect 4,010 - (2,698) - 1,312 San Luis Obispo Land Preserv - 750 (195) 114 669 Santa Monica Mountains Protect 11,468 50 (2,416) - 9,102 Sierra Club California 40,061 9,545 (118,736) 230,641 161,511 Trancas Town Litigation 26,548 - - - 26,548 Tyler Nakashima End Granting 11,275 - (3,208) 8,297 16,365 William Mott EndowmentGranting 1,018 - - 340 1,358

Total 511,185 186,234 (356,142) 196,918 538,196

Chapter Project

Arizona Energy Efficiency 48,996 27,000 (19,474) - 56,522 AZ Mounuments Defense 39,734 - (36,678) - 3,057 AZ Water Sentinels - 5,050 - - 5,050 CA/NV Desert Report 2,000 1,000 - - 3,000 Campaign to Protect the U.S. 7,081 8,691 (30,772) 15,000 - Cascade Checkerboard 25,145 15,290 (17,281) - 23,154 Climate of Change 2,000 - (1,687) - 313 Cool Cities Maryland - 30,000 (11,886) - 18,114 Cool Spring Forest 1,626 - - - 1,626 Energy for Iowa 7,631 - (7,631) - - Forest Rest & Preservation 3,240 - (1,688) - 1,552 French Peter History Project - 650 - 1,000 1,650 Georgia Stop Coal - 15,000 - - 15,000 Grand Staircase Intervention 2,241 - - (2,241) - Illinois Clean Water Campaign 13,705 100 - - 13,805 Iowa Clean Air and Energy - - (619) 8,604 7,985 Iowa Eagle 2,502 - (2,092) (410) - Iowa Fallon Radio - 8,000 (8,000) - - Lake Calumet Wetlands 611 - - - 611 Loma Prieta Climate Action - 11,655 (10,455) - 1,200 Loma Prieta Climate Friendly 80,087 51,000 (70,268) - 60,818 Lone Star Apollo Alliance - 50,000 (3,308) - 46,692 Mattaponi River 2,521 3,758 (171) - 6,107 MI Sulfide Mining 4,626 - (4,626) - - Michigan Forest Biodiversity - 43,274 (41,750) - 1,524 Michigan Water Sentinels 259 - - - 259 Mining Without Harm 125 - - (125) - Missouri Chapter Clean Air 2,016 - (134) - 1,883 N Star Land Use and Transp 88,716 81,422 (100,262) - 69,876 NC Clean Water Campaign Focus 50,395 - (1,083) - 49,312 NC Climate Reovery Campaign 10,305 - (2,581) 25,000 32,725 New Mexico Local 282,355 - (89,389) - 192,966 NY Watersheds 11,940 100 (153) - 11,887 OH Clean Energy 78,762 100,000 (75,271) - 103,491 Ohio Central Clean Water 34,443 54,015 (52,799) - 35,660 Ohio Energy Efficiency 1,954 - - - 1,954 Ohio Statewide Clean Water - 34,673 (10,456) 14,959 39,176 Ohio Transportation - 30,000 - - 30,000 Oregon Legal Defense Project 2,021 - (720) - 1,301 Oregon Public Lands Protection - 10,000 (10,000) - - Pajaro River 14,070 - (6,200) - 7,870 Protect and Restore 3,000 - - (3,000) - Redwood Bohemian Grove - 1,375 (1,332) - 43 Restore Grand Canyon Ntl Park 17,851 30,000 (30,833) 33,000 50,018 Rocky Mountain Transportation 752 - - (752) -

33




Save Palos CO Litig & Educ 13,046 500 (10,819) - 2,727 SCC Environmental Health 65,732 10,000 (51,374) - 24,357 Sierra Nevada Forestry Camp 1,960 3,759 (10,081) 6,152 1,789 Soka Public Relations Effort 2,062 - (1,306) (756) - Southern Illinois Habitat 479 - - (479) - Southern Illinois Habitat 9,258 32,500 (26,579) 479 15,658 Stop Coal in Iowa Campaign 11,007 - (267) (10,740) - Sustainable Water 9,702 - (7,428) (2,274) - Tennessee Cummins Falls - 2,387 - - 2,387 Texas Clean Air - 12,000 (12,000) - - Texas Clean Energy Solutions - 60,000 (779) - 59,221 Texas Cool Cities Campaign 29,385 - (29,385) - - Texas Radioactive Waste - 555 (555) - - Transportation Choices 2020 35,990 38,000 (38,083) 94 36,001 Virginia Endangered Landscape 189,057 200,000 (176,428) - 212,630 West Virginia PATH 250 - - - 250 Wetlands Protection 16,149 - (16,149) - - Wildlife Tracking 3,000 - (2,794) - 206 WV Energy Project 954 25,000 - - 25,954

Total 1,230,742 996,754 (1,033,628) 83,511 1,277,379

Foundation Granting

Avery Wildlife 4,455 - - 3,948 8,402 Coastal Protection 4,203 - - - 4,203 Jean Stone Fund 53,199 33,334 - 100,000 186,533 Lauesen Land Preservation 15,579 - (15,579) - - Walt Whitman Gay & Lesbian Env 18,550 - - - 18,550

Total 95,985 33,334 (15,579) 103,948 217,688

Group Granting

Adirondack Committee 9,651 - - - 9,651 Delta-Sierra Litigation 9,512 - (3,000) - 6,512 Greenville Community 1,712 - (300) - 1,412 Hudson Group Transportation 683 - (683) - - Huplits Trust Granting 66,300 45,000 (38,741) - 72,559 Owens River Watershed Project 1,828 200 - - 2,028

Total 89,686 45,200 (42,724) - 92,162

Group Project

A+ Community of Youth 10,454 - (85) - 10,369 Alabama Coast Group 3,500 - - - 3,500 Cherokee Group 319 - - 373 692 Cypress Town Center Litigation 630 - - - 630 Dallas: Friends of Clean Air 14,139 - - - 14,139 Eagle View Group (IA) 1,620 - (1,503) - 117 Earth Day Mobile Bay 2,810 - (2,810) - - Fourth Bore Coalition 20,839 - - - 20,839 Grand Kankakee Marsh 3,000 - - - 3,000 Harvey Broome Group 514 - - 529 1,043 Hawaii Monk Seal Project 10,000 40 (10,000) - 40 Lancaster Group 457 - - (457) - Land Reclamation Project 299 - - (299) - Maidu Group 491 - (1,015) 560 37 Mobile Bay Group - - - 4,000 4,000 Placer Group 95 101 (1,646) 1,500 50 Prairie Dog Relocation Project 3,806 - - - 3,806 Preserved McIntire Park 616 11,285 (8,800) - 3,101 Protect the North Shore 1,000 - - - 1,000 Rockville Trails Estates 4,594 5,500 (9,560) - 533 Saratoga County Open Space 1,430 - - - 1,430 Save the Poudre 16,193 - (16,193) - - SEMG Green Cruise - 2,165 - 3,300 5,465 Sierra Nevada Group - 160 (1,000) 840 - Solano Litigation 1,125 2,991 (5,071) 955 - Tahoe Area Group 14,361 7,410 (22,501) 6,600 5,870 Three Rivers 65,996 75,000 (93,560) - 47,436 Watauga Group 250 - - 250 500

34




Total 178,538 104,653 (173,745) 18,151 127,597

Other Funds

Higman Endowment 3 1,450,984 - - - 1,450,984 John U. White Bequest 50,000 - - (10,000) 40,000 Pledges Receivable 1,398,153 3,116,419 - (2,624,802) 1,889,770

Total 2,899,137 3,116,419 - (2,634,802) 3,380,754

Term Endowments

Hunter & Isabella Morrison End 237,340 - - - 237,340 Jack Voelpel Endowment 100,000 - - - 100,000 Richard Nathan Endowment 230,485 - - - 230,485 Susan Krohn Memorial End 172,584 - - - 172,584

Total 740,409 - - - 740,409

Endowments Income & Appreciation

Abigail MackeyYellowstoneI&A 268,693 325,893 - (121,324) 473,262 Albert & Katherine Payne I&A 2,910 7,138 - (2,716) 7,331 Allan N. Williams Endow I&A - 1,870 - (1,284) 587 Amos Roos Endowment I&A 23,249 14,198 - (5,206) 32,241 Avis Goodwin Endowment I&A 17,377 37,029 - (14,052) 40,353 Bernard&Sheila EcksteinEnd I&A 3,377 7,201 - (2,733) 7,845 Centennial General Endow I&A 24,015 9,641 - (3,586) 30,070 Center for Envmtl Innov EndI&A 7,115 7,705 - (2,866) 11,955 Christopher Karlin Endow I&A 54,049 19,517 - (7,231) 66,336 Clark Jones Western US End I&A 28,618 30,894 - (11,489) 48,023 Clark&Marjorie Jones Endow I&A 2,898 1,749 - (651) 3,996 Ed Stevens Endowment I&A 54,829 59,187 - (22,010) 92,006 Ed&Peggy Wayburn Endowment I&A 2,946 47,907 - (7,444) 43,409 Endowment I I&A 48,220 62,587 - (23,270) 87,536 Fred & Betsy Weintz Endow I&A 19,853 24,440 - (8,839) 35,454 Gary Torre Endowment I&A 46,444 17,057 - (6,344) 57,157 Great Lakes Endowment I&A 160,584 68,878 - (25,619) 203,844 Higman Endowment III I&A 201,756 222,955 - (86,849) 337,863 Hunter&Isabella MorrisonEndI&A 173,296 55,395 - (20,604) 208,087 I&A Harbor Properties 54,139 8,265 - (18,924) 43,480 I&A Marion Sandomire Endowment 3,598 10,734 - (4,098) 10,235 I&A Mary L. Bowerman Endow - 12,858 - (9,578) 3,280 I&A Richard Weiland Endowment - 389,137 - (389,137) - Jack Voelpel Endowment I&A 14,218 15,408 - (5,731) 23,895 James & Sue Higman End I&A 33,843 19,307 - (7,181) 45,969 Jeffrey Brenner Endowment I&A 77,964 25,627 - (9,532) 94,059 Kenneth Turner Endowment I&A - 38,539 - (14,927) 23,612 Kolar Endowment I&A 2,726 1,726 - - 4,452 Long Island Sound Endow I&A 34,519 14,502 - (5,394) 43,627 Louisa Pike Crook Endow I&A 2,759 1,816 - (675) 3,899 Lynne Aronstam Endowment I&A 17,900 19,339 - (7,192) 30,047 Margaret Andrew Hansell I&A 22,084 18,269 - (6,708) 33,646 Mel&BeverlyRubin Endowment I&A 8,597 8,240 - (3,065) 13,772 Minerva McDonell Endowment I&A - 8,832 - (3,421) 5,411 Richard Nathan Endow I&A 15,568 33,193 - (12,596) 36,164 Ronald Mann Endowment I&A 7,116 7,705 - (2,866) 11,955 Schroeder Wildlife Endow I&A 14,425 9,031 - (3,359) 20,097 Seelig Endowment I&A 19,696 20,086 - (7,940) 31,841 SierraNevada Ecoregion End I&A 4,870 8,302 - (3,134) 10,038 Stuart Avery Wildlife End I&A 20,380 10,614 - (3,948) 27,046 Susan Krohn Memorial Endow I&A 11,657 24,854 - (9,432) 27,079 Tyler Nakashima Educ Endow I&A 837 27,342 - (10,576) 17,603 Utah Chapter Endowment I&A 27,881 11,864 - (4,404) 35,341 Volunteer Awards Endowment I&A 51,140 12,295 - (4,573) 58,862 Warren Olney Endowment I&A 2,283 2,026 - (642) 3,667 Warren Olney Endow-Unrestr I&A 938 127 - (159) 906 West Virginia Endowment I&A 656 6,834 - (2,636) 4,854 William Mott Award Endow I&A 1,279 914 - (340) 1,853 Yellowstone & NoPlains End I&A 251,707 53,653 - (27,952) 277,407

Total 1,843,006 1,842,680 - (954,233) 2,731,453

35




Programs

Defending CA Clean Energy - - (400,000) 400,000 - Horse Camp Educational Program - 130 (7,311) 10,000 2,819 Military Sustainable Housing 650,000 - - - 650,000 Shasta Operations - 4,312 (18,019) 13,707 -

Total 650,000 4,442 (425,330) 423,707 652,819

Charitable Remainder Trusts

Amy Toma Cherot Trust 561,365 40,992 - - 602,357 Bernice Coan Trust 51,585 6,314 - - 57,900 David & Nancy Hall Trust 51,828 14,764 - - 66,592 Higman CRAT 924,535 69,593 - - 994,128 Higman Life Estate 1,309,585 (198,102) - - 1,111,483 James & Nathalie Diener Trust 44,432 4,745 - - 49,177 John & Ilene Nelson Trust 77,287 7,911 - - 85,198 John Maddox Trust 200,529 25,630 - - 226,159 Jonah Goodwin Trust 22,175 2,466 - - 24,641 Kay Gillis Trust 374,767 38,449 - - 413,215 Lewis & Grace Ward Trust 53,077 5,174 - - 58,251 Melissa Jones Hamilton Trust 56,110 6,033 - - 62,143 Millman & dela Cruz Trust 84,211 11,155 - - 95,366 Nancy Berger Trust 200,261 23,427 - - 223,687 Norman Egger Annuity Trust 52,240 9,336 - - 61,576 Patricia Ann Cochrane Trust 164,082 14,877 - - 178,958 Phyllis Lindley Trust 252,631 26,438 - - 279,069 Pooled Income Fund 518,662 (18,651) - - 500,011 Robert & Patricia Foster Trust 207,861 25,651 - - 233,512 Robert & Peggy Schotz Trust 172,018 17,673 - - 189,691 Scott Edmundson Trust 557,298 68,794 - - 626,093 Trust Receivables 622,519 69,752 - - 692,271 William Sander Trust 378,589 65,640 - - 444,229

Total 6,937,646 338,062 - - 7,275,708

Life Insurance Policies

Frank Loulan Life Ins Policy 18,599 738 - - 19,336 Walter Wells Life Ins Policy 8,777 143 - - 8,920

Total 27,375 881 - - 28,256

TOTAL TEMPORARILY RESTRICTED NET ASSETS 32,932,487 37,660,815 (40,794,503) 9,383,315 39,182,113

PERMANENTLY RESTRICTED NET ASSETSCharitable Trusts & Gift Annuities

Banks Pooled Income Fund 186,962 23,461 - - 210,423 Bernice Coan Trust 115,272 14,734 - - 130,006 Conrad Pooled Income Fund 26,568 (11,933) - - 14,635 Frank Seelig Trust 1,147 - - - 1,147 Fred & Louise Taylor Trust 194,570 20,033 - - 214,602 Permanently Restricted CGAs 11,227 142,823 - (84,506) 69,545 Perpetual Trusts 793,094 32,550 - - 825,644 Pooled Income Fund II 74,890 10,636 - - 85,526 Rebecca Hardaway Dalton Trust 462,313 51,949 - - 514,262 Richard & Cynthia Myren Trust 145,220 32,633 - - 177,853 Suzanne Keith Trust 125,645 11,781 - - 137,426 Wayburn Pooled Income Fund 129,345 89,902 - (219,248) -

Total 2,266,253 418,568 - (303,754) 2,381,068

Endowments

Abigail Mackey Yellowstone End 2,138,723 26,000 - - 2,164,723 Albert & Katherine Payne Endow 50,000 - - - 50,000 Allan N. Williams Endowment - 23,808 - - 23,808 Amos Roos Memorial Endowment 81,680 1,000 - - 82,680 Avis Goodwin Endowment 257,113 - - - 257,113 Bernard & Sheila Eckstein End 50,000 - - - 50,000 Centennial General Endowment 47,453 - - - 47,453

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Center for Environ Innov Endow 50,000 - - - 50,000 Christopher Karlin Endowment 90,228 1,575 - - 91,803 Clark & Marjorie Jones Endow 10,071 - - - 10,071 Clark Jones Western US End 200,395 - - - 200,395 Ed & Peggy Wayburn Endowment 14,532 45,472 - 303,754 363,758 Ed Stevens Endowment 383,919 - - - 383,919 Endowment I 415,728 - - - 415,728 Fred & Betsy Weintz Endowment 154,394 10,000 - - 164,394 Gary Torre Endowment 80,000 - - - 80,000 Great Lakes Endowment 350,000 - - - 350,000 Harbor Properties Endowment 155,730 - - - 155,730 James & Sue Higman Endowment 109,276 - - - 109,276 Jeffrey Brenner Endowment 112,002 - - - 112,002 Kenneth Turner Endowment 285,684 - - - 285,684 Kolar Endowment 10,070 - - - 10,070 Long Island Sound Endowment 72,983 - - - 72,983 Lorin T. Gill Endowment - 29,996 - - 29,996 Louisa Pike Crook Endowment 10,700 - - - 10,700 Lynne Aronstam Endowment 125,458 - - - 125,458 Margaret Andrew Hansell 113,339 - - - 113,339 Marion Sandomire Endowment 75,974 - - - 75,974 Mary L. Bowerman Endowment 99,761 - - - 99,761 Mel & Beverly Rubin Endowment 52,489 - - - 52,489 Minerva McDonell Endowment 65,467 - - - 65,467 Richard Weiland Endowment 3,325,439 - - - 3,325,439 Ronald Mann Endowment 50,000 - - - 50,000 Schroeder Wildlife Endowment 52,524 - - - 52,524 Seelig Endowment 128,927 - - 269 129,196 Sierra Nevada Ecoregion Endow 56,670 - - - 56,670 Stuart Avery Wildlife Endow 58,302 - - - 58,302 Tyler Nakashima Educ Endow 201,845 - - - 201,845 Utah Chapter Endowment 59,889 150 - - 60,039 Volunteer Awards Endowment 40,000 - - - 40,000 Warren Olney Endowment 12,738 - - - 12,738 West Virginia Endowment 50,000 - - - 50,000 William Mott Award Endowment 5,500 - - - 5,500 Yellowstone & No Plains Endow 317,120 - - - 317,120

Total 10,022,123 138,001 - 304,023 10,464,147

TOTAL PERMANENTLY RESTRICTED NET ASSETS 12,288,377 556,569 - 269 12,845,215

TOTAL NET ASSETS 88,509,397$ 56,108,691$ (52,921,604)$ (0)$ 91,696,483$

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THE SIERRA CLUB FOUNDATION · THE SIERRA CLUB FOUNDATION Balance Sheets December 31, 2010 and 2009 Assets 2010 2009 Cash and cash equivalents $ 3,315,198 1,022,659 Money market funds

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