We investigate the hierarchy of local correlation and hybridization effects in metal-organic molecules adsorbed on metals. Using x-ray magnetic circular dichroism and ligand field multiplet calculations, we demonstrate that the 3d electronic ground state of monolayer metal-phthalocyanine (CoPc, FePc) on Au (111) is given by the coherent superposition of two charge states, d n E + d n+1 , where E represents a substrate electron antiferromagnetically coupled to the central metal ion and d n the many-body ionic orbital configuration of the unperturbed molecule. These results differ from previous models of hybrid metal-organic systems and provide a consistent description of their magnetic moments and Kondo physics in terms of spin and orbital multiplicity. The magnetic properties of transition-metal (TM) compounds depend critically on the competition between d-d electron correlation and covalency, that is, the transfer of charge between d-orbitals and delocalized ligand states. 1 Charge transfer (CT) affects the magnetization of TM ions, their coupling through indirect exchange paths, as well as the conductivity of important classes of materials, including TM oxides, high-T c superconductors, and molecular complexes. Recently, CT processes that take place at the interface between magnetic molecules and metal surfaces have come under intensive attention. 2-4 Transport measurements of single molecules trapped between metallic electrodes 5 and layered metal/organic heterostructures 6 have revealed the role played by interfacial hybridization in determining efficient charge and spin injection across TM complexes, a prerequisite to developing molecular spintronic devices. 6,7 A comprehensive description of the electronic and magnetic properties of metal-organic hybrids, however, is complicated by the fact that CT can occur between TM and ligand orbitals, but also between any of these states and the electron reservoir of a supporting metal surface or electrode. Clearly, understanding such processes would be of great importance in modeling and controlling the properties of magnetic molecules interfaced with metals.Density functional theory (DFT) provides the basis of our current understanding of hybrid metal-organic systems. [2][3][4]8,9 Yet, due to the difficulty of modeling exchange and electron correlation phenomena using effective one-electron potentials, DFT affords only a partial description of the magnetic properties of TM complexes. 1 Methods beyond standard DFT that include Coulomb repulsion through semiempirical Hubbard U terms have been successfully employed to describe the ground state of isolated molecules. 10 However, DFT + U remains a mean-field scheme, which precludes a proper modeling of valence and spin fluctuations induced by CT.A notable case where CT has a dramatic influence on the magnetism of a TM complex is that of Co-phthalocyanine (CoPc), a well-known molecule with spin S = 1/2 (Ref. 11).DFT predicts that CoPc adsorbed on Au(111) (Refs. 12 and 13), Cu (111) (Ref. 14), and even ferromagnetic Fe(110...