750 Six PPG Place Pittsburgh, PA 15222 Phone: (412) 644-8779 Fax: (412) 644-8059 info@mccune.org Regular Office Hours are from 7:30 AM to 4:30 PM (During the summer, the office closes at 4:00 PM). The office will be closed on September 24 and 25, 2009, during the G20 event. Distribution Committee James M. Edwards Chairman John R. McCune VI Michael M. Edwards Planning and Development Committee James M. Edwards Chairman Michael M. Edwards John H. Edwards Sarah McCune Losinger John R. McCune VI Staff Henry S. Beukema Executive Director Laurel E. Shaw Senior Program Officer A. Samuel Reiman Program Officer Robert W. Lukitsch Business Manager Valerie L. Fahrny Grants Administrator Alneda R. Richardson Senior Secretary

Chairman's Statement, 2007 The McCune Foundation was established in 1979 by the will of Charles L. McCune. The donor, a Director of The Union National Bank of Pittsburgh for 56 years, served as its President from 1945 until 1972, and then as Chairman of the Board until his death. During his life, Charles McCune gave generously to charitable organizations, mostly in the Pittsburgh area, while seeking no public recognition of his philanthropy. He established the Foundation in memory of his parents, Janet Lockhart McCune and John Robison McCune. Concerning grants, Charles McCune left no more specific directions to our Distribution Committee than to make grants "...to or for the use of corporations organized and operated exclusively for religious, charitable, scientific, literary, or education purposes..." (Article Six, Paragraph 1). He showed us, however, as those who remember him can agree, a style of dealing with people and with challenges which I would describe as purposeful, simple, and direct. Because of this style, most of our grants are local. Because of this style, we try to pose the basic questions of how much?, what for?, and what's the likely result? Because of this style, we try to economize on the conduct of our grantmaking. And because of this style, and true to his personal ethic, we request anonymity, as the donor did before us, for the grants we direct. He left us a legacy less of what to do, and more of how to do it. Most of Charles McCune's post-World War II life was spent as a banker. In banking, as in grantmaking, the medium is money. But the results in philanthropy may be harder to measure. Grants, unlike loans, need not be repaid except in good done for the community. That is the grantmaker's challenge, and one we take up purposefully, simply, and directly, in the spirit of Charles McCune himself. Recognizing the many charitable interests of the donor, the Distribution Committee of the McCune Foundation has established a broad range of program priorities to guide the Foundation's grantmaking. Believing in the importance of assisting efforts which improve the community, the Foundation places emphasis on innovative approaches, principally in southwestern Pennsylvania, that contribute directly to increase community vitality, and in the process promote both individual and institutional capacities. The Foundation is interested in helping reverse the effects of social and economic dysfunction, while creating a stronger base for future growth. Although the Foundation remains receptive to the organizations Charles McCune supported during the last years of his life, there is a growing interest in additional organizations that are addressing program interests of the Foundation. In 2007, our Planning and Development Committee at the McCune Foundation made 170 grants to 154 organizations totaling $28,941,100. Of that dollar total, 17 percent was to organizations to which the donor had given during his lifetime, which in his will he requested enjoy a preference in selection of recipients. The Foundation through this year continued to hold southwestern Pennsylvania as its primary geographical focus with 81 percent of its grants being awarded in this region. This past year saw grants made in Oklahoma ($1,315,000), Texas ($1,125,000), Connecticut ($256,000), and Rhode Island ($482,000), emerging regions of interest to the Committee. Additionally, $1,000,000 (3%) was awarded to organizations in New Mexico, a continuation of our co-granting tradition with our “brother” foundation in New Mexico, called the Marshall L. and Perrine D. McCune Charitable Foundation, Inc. headquartered in Santa Fe. So all told, 19% of the grant outlays were made in regions beyond our traditional grantmaking area of southwestern Pennsylvania. This is a practice that is likely to continue. In the coming years we will pursue multiple avenues to achieve our foundation objectives - grants, investments, staff technical assistance, co-granting initiatives, and whatever other means the future may bring to augment the established business of McCune Foundation management. I believe I speak for the Planning and Development Committee when I encourage Henry Beukema and his staff in conducting the valuable work they continue to perform in our areas of service. James M. Edwards Chairman