INDUSTRY BENCHMARK INFORMATION

A summary of the operating expenses and related industry benchmark information of the Foundation for 1996 is summarized in the following table. Over 76% of the operating expenses are related to investment expenses, taxes, and salaries and benefits. Certain benchmark data is available for these expense categories as outlined below.

($000s Omitted)

CATEGORY	1996 AMOUNT	% TOTAL	BENCHMARK DATA

Grants Awarded	23,028,810	100%	Periodic data

available. See	Cambridge study for	spending rates,	(Pages 8-3 and 8-4).

Operating Expenses:

Investment Expenses	2,732,075	41.00%	Extensive data available. See Cambridge study (Pages 8-3 and 8-4).

Excise & Other	560,000	8.40%	Attempt to achieve 1%

Taxes	excise tax where possible

General & Administrative:

Salaries & Benefits	1,825,041	27.39%	Annual salary survey available from Council of Foundations. Data generally 1-1½ years old (Pages 8-5 and 8-6).

Directors and	428,845	6.44%	Limited but periodic

Officers Fees	director fee surveys are available.

Meeting & Travel	325,827	4.89%

Expenses

Building Expenses	355,606	5.34%

Supplies and Office	118,090	1.77%

Expenses

Office Machines and	115,180	1.73%

Equipment

Dues & Subscriptions	44,958	0.67%

Legal, Accounting,	158,038	2.37%

and Consulting Fees

Total General &

Administrative

Expenses	3,371,585	50.60%

Total Operating

Expenses	$6,663,660	100.00%	8-1

In addition to aforementioned industry benchmark data the Foundation tracks historical expense data (see pages 8-7). For example, a historical summary for the past five years of the percent of general and administrative expenses to average assets is summarized below:

1996	0.70%

1995	0.73%

1994	0.65%

1993	0.74%

1992	0.66%

On occasion the Foundation will complete a survey as needed. A study of twenty-seven private foundations (pages 8-8 and 8-9) disclosed that the Bradley Foundation's expenses for charitable purposes ranked number 11 of 27 as a percent of assets and number 14 or 27 as a percent of grants.

Additional internal procedures to monitor the level and reasonableness of expenses include:

1.	Monthly Summary of Travel & Business Expenses and periodic review by Audit Committee.

2.	Expanded budget detail included in monthly financial statements.

In summary, while complete and timely benchmark data is not readily available, internal monitoring combined with benchmark data that is available provides a reasonable review of the comparative expenditure levels.

8-2