The Graco Foundation
2008 Community Report

Corporate Profile
Founded in 1926, Graco is a world leader in fluid handling systems and components. Graco products move, measure, control, dispense and spray a wide range of fluids and viscous materials used in lubrication, commercial and industrial settings. The Company's success is based on its unwavering commitment to technical excellence, world-class manufacturing and superior customer service. Working closely with specialized distributors, Graco offers products which set the quality standards in a wide range of fluid handling applications, including spray finishing and paint circulation, lubrication, sealants and adhesives and power application equipment for contractors. Graco's ongoing investment in fluid management and controls will continue to provide innovative solutions to a diverse global market. The Company has corporate headquarters in Minneapolis, Minnesota, and employs approximately 2,300 people worldwide. Graco common stock (ticker symbol: GGG) is listed on the New York Stock Exchange.

Foundation
The Company is also committed to the communities in which it does business. Through The Graco Foundation, 2008 contributions reached $2,766,266.

Funding Priorities
The Foundation's goal is to help organizations grow their ability to serve community needs through grants specifically aimed at expanding or enhancing services to clients, with particular focus on capital projects and technology needs. Priority will be given to organizations that have a proven track record of enabling people to be self-sufficient and more productive. Emphasis will be placed on educational programs (including early childhood education), human service programs that promote workforce development, and youth development/sports programs.

In order to have the resources to address these focus areas and have a significant impact on grantee organizations, the Foundation has a preference for large one-time capacity building grants rather than operating grants. The maximum commitment per capital campaign is $150,000. Additionally, grants within a 2-year period are generally not considered. The Foundation supports the operations of many worthwhile programs through substantial United Way contributions.

Focus Locations
Organizations located in neighborhoods close to Graco Inc. facilities and employees' homes are of special interest to the Foundation. In Minnesota, that emphasis centers on the Twin Cities area, and in particular north, northeast and south Minneapolis and the northern and northwestern suburbs. The Company also has operations in Sioux Falls, South Dakota and North Canton, Ohio.

Matching Gift Program
Through the Gift Matching Program, every contribution made by Graco employees or retirees to a secondary or post-secondary school is matched $2 for $1 by the Foundation up to a maximum contribution of $20,000. In 2008, the Foundation's match for these gifts totaled $182,677.

Dollars for Doers Program
Through the Dollars for Doers Program, the Foundation donates $1,000 to any eligible nonprofit organization where an employee has volunteered 50 hours or more. Time that a spouse or dependent of a Graco employee volunteers may be counted toward the 50 hours. Dollars for Doers support in 2008 totaled $67,000.

Scholarship Program
The Foundation also sponsors a scholarship program for college age children of Graco employees. Scholarship support in 2008 totaled $150,550.

Grant Requests
At such time as The Graco Foundation begins accepting new grant applications, grant requests that address only the Foundation focus areas will be considered. Please include a cover letter, on organizational letterhead, describing your program and how it fits our focus areas. In addition, each proposal should contain:

• brief description of the organization's history;
• program objectives;
• clients served;
• budget, including program expenses and revenue sources;
• program evaluation methods and results;
• list of corporate and foundation donors;
• list of the Board of Directors;
• copy of 501(c)(3) or other tax exempt confirmation;
• copy of most recent IRS form 990; and
• copy of most recent audit.

The Graco Foundation requires all grantees to complete a final project report. Reports must be completed no later than one year after the initial grant payment. Organizations with overdue final reports are ineligible to apply for future funding until the final report is received and approved by Foundation staff.

Final reports should include the following information:

• brief summary of project and an outline of original goals and objectives;
• details of project accomplishments including outcomes, evaluation methods and impact on organization;
• description of population served through the project ‚Äì including numbers and demographics;
• explanation of any unanticipated changes and/or problems and how they were resolved; and
• project budget including actual income and expenses (please include original budget and list of additional funders).

The Foundation focus does not usually allow grants for:

• organizations or causes that do not directly impact Graco communities;
• political campaigns;
• individuals;
• religious organizations for religious purposes;
• fund-raising;
• travel;
• special events, dinners, courtesy advertising;
• fraternal organizations;
• staff or personnel overhead;
• national or local campaigns for disease research;
• first time general operating grants; or
• product donations.

Information Contact
Kristin R. Ridley
Grants Administration Manager
The Graco Foundation
88 - 11th Ave. NE
Minneapolis, MN 55413-1894
612-623-6684
kridley@graco.com

2008 Grants

Capacity Building Grants

• Achieve! Minneapolis: $38,365
• Admission Possible: $75,000
• American Red Cross: $30,000
• Axtell Park Middle School: $24,575
• Big Brothers Big Sisters of the Greater Twin Cities: $49,750
• Boys and Girls Clubs of the Twin Cities: $25,000
• Dunwoody Academy: $112,250
• Dunwoody College of Technology: $10,000
• East Side Neighborhood Services: $40,000
• Edison High School: $4,988
• Employment Action Center: $26,700
• Employment Source: $20,000
• FIRST Robotics: $12,000
• Golden Gopher Fund: $4,100
• Goodwill/Easter Seals Minnesota: $45,000
• Greater Metropolitan Housing Corporation: $30,000
• Greater Minneapolis Council of Churches: $25,000
• Groves Academy: $25,000
• Harvest Preparatory School: $100,000
• J.R. Coleman Outreach Services: $45,700
• Junior Achievement of the Upper Midwest: $25,000
• Leavenworth High School: $5,000
• Lifetrack Resources: $15,150
• MAP for Nonprofits: $6,000
• Minneapolis Park and Recreation: $3,000
• Minnesota Early Learning Foundation: $75,000
• Minnesota Literacy Foundation: $10,000
• Minnesota Community & Technical Foundation: $75,000
• North Community YMCA: $100,000
• Phyllis Wheatley Community Center: $20,000
• Rogers Quarterback Club: $250
• Rogers Royals Dugout Club: $1,200
• Sabathani Community Center: $26,000
• St. Michael-Albertville Soccer Club: $20,000
• St. David's Child Development & Family Services: $40,000
• STAWNO: $4,000
• Timken Senior High School Robotics Team: $5,000
• Urban Ventures: $50,000
• Vail Place: $25,985
• Way to Grow: $25,000
• Youth Enrichment Services: $49,000

Scholarship Grants

• Graco Scholarship Program: $150,550
• Technical School Scholarships: $120,000
• Alexandria Technical College - $10,000
• Dunwoody Institute - $10,000
• Hennepin Technical College - $10,000
• Lake Area Technical Institute - $10,000
• South Dakota School of Mines and Technology - $10,000
• South Dakota State University - $10,000
• Southeast Technical Institute - $10,000
• Stark State College Foundation - $10,000
• University of Akron - $10,000
• University of Minnesota Institute of Technology - $20,000
• University of Sioux Falls - $10,000
• Kids First Scholarship Program: $50,000
• Minnesota Independent School Forum - $50,000
• Minnesota Private College Fund - $51,000
• United Negro College Fund: $20,000
• Page Education Foundation: $7,000

United Way

• Greater Twin Cities United Way: $514,000
• Sioux Empire United Way: $66,580
• United Way of Greater Stark County: $31,000

Gift Matching recipient institutions

• Alexandria Technical College
• Appalachian State University Foundation
• Augsburg College
• Benilde-St. Margaret's
• Bentley College
• Bethel University
• Bowling Green State University Foundation
• Brown University
• Cedarcrest Academy
• Chase Collegiate School
• Clinton-Graceville Beardsley High School
• College of Saint Benedict
• Columbia Heights High School
• Concordia Seminary
• Convent of the Visitation School
• Cornell University
• DeLaSalle High School
• George Mason University Foundation
• Gustavus Adolphus College
• Hillsdale College
• Indiana University Foundation
• Inver Hills Community College
• Iowa State University Foundation
• Jemicy School
• Kent State University Foundation, Inc
• Mayo Foundation
• Michigan Tech Fund
• Milwaukee School of Engineering
• North Park University
• Northwester College
• Purdue University
• Red Cloud Indian School
• Reed College
• Schreiner University
• South Dakota School of Mines & Technology Foundation
• South Dakota State University Foundation
• Southwest High School
• St Cloud State University Foundation
• St John's University
• St Paul Academy & Summit School
• St Olaf College
• St Thomas Academy
• Stout University Foundation
• The College of St. Catherine
• The University of Akron Foundation
• The University of Alabama
• The Whole Learning School
• Totino-Grace High School
• Trustees of Boston University
• Trustees of Dartmouth College
• United Theological Seminary
• University of Iowa Foundation
• University of Michigan
• University of Minnesota Foundation
• University of Minnesota Medical Foundation
• University of Minnesota Morris
• University of South Dakota Foundation
• University of St. Thomas
• University of Wisconsin Foundation
• University of Wisconsin-Eau Claire Foundation
• Wheaton College
• Youngstown State University