Background and Giving Guidelines

The drugstore.com Foundation was formed in July 1999 with a gift of pre-IPO stock from the company. The Foundation's mission is "Basic Needs & Healthy Starts", with a geographic focus on the areas in which we have physical operations and an overall goal of improving the health and well-being of the communities in which we live and work. The Foundation funds programs that facilitate emotional and economic self-sufficiency and improve the health, dignity and well-being of people in need. We do this specifically by (1) promoting "Healthy Starts" for those in need - e.g., improving life and prospects for children and adults alike, enabling self-sufficiency for people in transition, providing supportive homes for foster children, assisting in redefining lives for seniors who have lost a partner or are without a care system; and (2) providing "Basic Needs" to those who do not have access to things that most of us take for granted—personal care products, food, shelter, education.

Employee Giving Committees in Bellevue, Washington and Swedesboro, New Jersey enjoy selecting the organizations that receive grants from the Foundation. The Foundation does not accept unsolicited proposals. However, brief letters of inquiry will be accepted for 2008 grants until March 15, 2008. Please review the guidelines to ensure that your organization meets the criteria below. If it does, you are welcome to submit a brief letter describing your program, your funding needs, and intended use for a grant. The Foundation accepts only electronic submissions, which should be directed to foundation@drugstore.com. If your organization is selected for review by the committee, you will be asked to submit more detailed information. Due to staffing constraints, not all inquiries will receive a personal response. Grant decisions will be made by June 30, 2008.

Foundation Goals -

Gifts from the drugstore.com Foundation:

• Improve the quality of life in the communities in which drugstore has operations
• Are to programs that are compelling to—and resonate with—drugstore.com employees
• Engage employees in the decision process and, ideally, involve meaningful volunteer opportunities
• Position the company and Foundation as a thoughtful, creative leader
• Are effective, have maximum impact, and target specific immediate needs, or address long-term solutions to systemic problems
• Are, ideally, for operating expenses - in keeping with our "Basic Needs" philosophy

Organization Funding Criteria:

• Eligible organizations must be a non-profit, tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code;
• have operations in Western Washington and/or Southern New Jersey; and
• have overhead expenses that do not exceed 25% of the total operating budget.

Activities/Organizations not eligible for Support:

• individuals;
• fraternal, veterans, or labor organizations;
• political organizations/activities;
• scholarships, conferences and seminars;
• special events, sponsorships or similar fundraising events;
• religious organizations or sectarian programs for primarily religious purposes;
• loans of any kind;
• commercial or profit-making enterprises;
• programs/activities that directly support the business objectives of drugstore.com, such as retail sales and marketing; event sponsorship; beauty or talent contests or sporting events; and
• organizations that might pose a conflict with drugstore.com's mission/goals, values, programs, products or employees.