Heartland Institute 363309812 2007 044DB1FFSearchable

7/23/2019 Heartland Institute 363309812 2007 044DB1FFSearchable

1/31

.)

Form 99

Departmentf heTreasury

Internal Revenue Service

Return of Organization Exempt From Income Tax

Undersection501 c), 527, or 4947(a)(1)ol the Internal RevenueCode exceptblack ung

benefit rust or private oundation)

Theorganizationmayhave o usea copy of this return o satisfystate eporting equirements

A For he 2007 calendaryear, or tax year beginning and ending

OMB No 1545-0047

2 7

Open o Puhllc

lllspecth)n

B Check

t

Please

C Nameof organization

D Empayer dentificationnumber

applicable

use RS

DAddress

label or

~HE

HEARTLAND

INSTITUTE

36-3309812

hange

pnnt or

oName

type

Number nd street or PO box 11ma1l snot deliveredo streetaddress)

IiRoom/suite

E Telephonenumber

tiange

See

01n,t1al

Specific

9 SOUTH LA SALLE STREET 903 (312) 377-4000

eturn

0Terrrun-

Ins true-

at1on

t1ons

Cityor town, stateor country,and ZIP + 4

F Accounbngrethod: Cash

XJ

Ac

DAmended

return

CHICAGO,

IL

60603

D Other

(specify)

DAppl1cat1on

Section501 c)(3) organizationsand 4947(a)(1)nonexempt haritable rusts

Hand I are not appltcable to sect/On 527 organtzattons

ending

must attacha completedScheduleA (Form990 or 990-EZ).

H(a) Is this a group return or att111ates?

Dves

CX

G

Website

~WWW.HEARTLAND.ORG

H(b) If Yes,' enter numberof aff1l1ates

N/A

J

Organizationype (checknly ne)~[XJ 501 c) ( 3

) 4947(aH1lor D 521 H(c) Are all affiliates ncluded?

N/A

Dves

0No

K

Checkhere D 1f he organization snot a 509(a)(3)supportingorganization nd ts gross

(If 'No,' attacha list)

H(d) Is this a separate eturn iled by an or-

receipts re normallynot more han $25,000 A return1snot required, ut 1f he organization

ganizat1onoveredby a group rulmo?

Dves CX

chooses o file a return,be sure o Ille a complete eturn

I

GrouoExemot1on umber~

N/A

M Check

D

1f he organization snot required o a

L Gross eceipts Add Imes6b, 8b, 9b, and 10b o lme 12

5,216,884.

Sch B (Form 990, 990-EZ, r 990-PF)

I

Part

J I

Revenue, Expenses, and Changes in Net Assets or Fund Balances

1 Contnbut1ons,ifts. grants.and s1m11armounts eceived

a

Contributionso donor advised unds

1a

b

Directpublic support not ncludedon lme 1a)

1b

4,967,005.

c

Indirectpublicsupport not ncludedon me 1a)

1c

d

Government ontributions grants) not ncludedon me1a)

1d

e Total (add mes1a hrough 1d) (cash$

4,967,005.

noncash )

1e

4,967,005.

2

Program ervice evenuencludinggovernmenteesandcontracts from PartVII, me93)

2

189,135.

3

Membership uesandassessments

3

26,157.

4

Intereston savingsand emporary ash nvestments

4

34,587.

5

D1v1dendsnd nterest rom securities

5

6 a

Gross ents I

6a

I

b

Less rentalexpenses

6b

GI

c

Net ental ncomeor (loss) Subtract me6b from lme6a

6c

::,

7 Other nvestmentncome describe I 7

GI

>

8 a

Grossamount rom salesof assetsother

I A Secu t1es

(Bl Other

GI

a:

than nventory

Ba

b

Less cost or other basisand salesexpenses

8b

c

Gamor (loss) (attach chedule)

Be

d

Netgam or (loss) Combineme8c, columns A) and (B)

8d

9

Special ventsand act1v1t1esattachschedule) f any amount1s rom gaming,checkhere

D

a

Gross

ewnuenotncluding$ olcontnbubonsepor1edn

ine

b) I 9a I

b

Less direct expenses ther han undra1smgxpenses 9b

c

Net ncomeor (loss) rom specialevents Subtract me9b rom lme9a 9c

1o a

Grosssalesof inventory, ess returnsand allowances

I1oa I

b

Less cost ol goodssold

10b

c

Grossprol1tor (loss) rom salesol inventory attachschedule)Subtract me 10b rom lme 10a

1Dc

11 Other evenue lrom PartVII, me 103) 11

12

Total revenue.Add mes1e 2 3 4 5 6c 7 8d 9c 10c and 11

=

- ........... ...

12

5,216,884.

13

Program ervices from me44, column B))

61it;~[1:::;U W

11 ..d)

13

5,172,467.

'

~[ AUG2 9

200:J~j

448,138.

I

14

Management nd general lrom lme44, column C))

14

'

15

244,737.

I

15

Fundra1smgfrom me44, column D))

c.

,c

16 Paymentso aff1l1atesattachschedule)

16

17

Total exDenses.Add mes16 and 44 column Al

..

-~

.. .

,

17

5,865,342.

18 Excess r (def1c1t)or the year Subtract me 17 rom lme12

~- .:.,~Jlki\J~u

i

18


2/31

'

orm 990 2007

THE HEARTLAND INSTITUTE

36-3309812

Pag

Part U Statement of

Functional Expenses

All organizationsmust complete olumn A) Columns B), (C), and (D) are required or section501 c)(3)

and (4) organrzat1onsnd section4947(a)(1)nonexempt harrtablerusts but optional or others

Do not include amounts reported on /me

(A)Total

(B) Program

(C) Management

(D) Fundra1srn

6b Bb 9b 1Ob or 16 of Part I

services and general

22a Grants paid from donor advised funds

(attach schedule)

(cash 0 noncash

0.

If this amount includes foreign grants, check here

~o

22a

22b Other grants and allocations (attach schedule

STATEMENT

(cash

1 3 5 0 0 0 noncash

0.

If this amount includes foreign grants, check here IX]

22b

135,000. 135,000.

23 Spec1f1c ssistance to 1nd1v1dualsattach

schedule)

23

24 Benefits paid to or for members (attach

schedule)

24

25a Compensation f current officers.directors,key

employees. tc listed n PartV-A

25a

172,629. 114,344.

47,288. 10,997.

b Compensation f former officers,directors,key

employees. tc listed rn PartV-B 25b

31,000. 31,000.

0 .

c Compensation nd otherd1strrbut1ons,ot included

above, o d1squal1f1edersons as definedunder

section4958(f)(1))and personsdescrrbed n

section4958(c)(3)(B) 25c

26 Salaries and wages of employees not

included on lines 25a, b, and c

26

1,059,125. 603,339. 322,578. 133,208.

27

Pension plan contrrbut1ons not included on

lines 25a, b, and c

27

26 Employee benefits not included on lines

25a27

26

29

Payroll taxes

29

30 Professional fundra1s1ngees

30

31

Accounting fees

31

32 Legal fees

32

33 Supplies

33

68,592-. 43,827. 9,907. 14,858.

34 Telephone 34

15,940. 14,058. 1,217. 665

35 Postage and sh1pp1ng 35

839,497. 817,702. 6,096.

15,699.

36 Occupancy

36

147,199. 129,814.

11,243.

6,142.

37 Equipment rental and maintenance

37

36

Prrnt1ngand publications 38

1,217,535. 1,213,709.

1,261.

2,565.

39 Travel

39

484,781. 465,158.

1,846. 17,777.

40

Conferences, conventions, and meetings

40

41

Interest

41

1,601. 1,601.

42

Deprec1at1on, epletion, etc. (attachschedule)

42

10,299.

10,299.

43 Other expenses not covered above (1tem1ze):

a OTHER

EXPENSES

43a

28,616. 26,963.

77.

1,576.

bSUBCONTRACTOR,

43b

cWRITERS,

EDITORS

43c

743,906. 671,615.

31,041.

41,250.

dADVERTISING 43d

909,622. 905,938. 3,684.

e

43e

I

431

g 430

44 Total functional expenses.Add Imes22a hrough

43g (Organrzat1onsompleting olumns B)-(D).

carry hese otals o Imes13-15)

44

5,865,342.

5,172,467.

448,138. 244,737.

Joint Costs. Check

D

1fyou are following SOP 98-2.

Are any 1ornt osts rom a combinededucational ampaign nd undra1srngol1c1tat1oneported n (B) Program ervices?

D

Yes [&] No

If Yes,'enter i) the aggregate mountof these1ornt osts$ N A (ii) the amountallocatedo Program ervices$ N A

---....:....,...---

( 11)he amountallocated o Management nd general$ N A

I

and (iv) the amountallocated o Fundra1srng N A

r~~fi-b1 Form990 (20


3/31

Form 990 2007 THE HEARTLAND INSTITUTE

36-3309812

Pa

Part IH Statement of Program Service Accomplishments (See the mstruct,ons.

Form 990 1savailable for public inspection and, for some people, serves as the primary or sole source of information about a particular organization.

How the public perceives an organ1zat1on n such cases may be determined by the information presented on its return. Therefore, please make sure

return 1scomplete and accurate and fully describes, 1nPart Ill, the organization's programs and accomplishments.

What 1s he organization's primary exempt purpose? ....

RESEARCH

WRITING ON PUBLIC

POLICY

ISSUES

All organ1zat1onsmust describe their exempt purpose achievements 1na clear and concise manner. State the number of

clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501 (c)(3) and (4)

organ1zat1onsand 494 7(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.)

a PUBLICATIONS

- RESEARCH,

WRITING AND DISTRIBUTION OF

PUBLICATIONS

ON

PUBLIC POLICY

ISSUES.

HEARTLAND PRODUCED TWO

NEWSLETTERS,

FIVE

MONTHLYNEWSPAPERS, THREE

BOOKS

AND ONE

BOOKLET IN

2007.

(Grants and allocations l If this amount includes fore1an arants check here

....

D

b PUBLIC

RELATIONS

-

SEMINARS, EVENTS, A WEB SITE, SPEAKERS

BUREAU AND OTHER ACTIVITIES AIMED AT EDUCATING HEARTLAND

MEMBERS AND THE

GENERAL PUBLIC POLICY ISSUES.

(Grants and allocations

) If this amount includes fore1c:m rants check here

....

D

c GOVERNMENTRELATIONS

-

PUBLICATIONS AND EVENTS GEARED TOWARD

EDUCATING AND

INFORMING LOCAL, STATE AND NATIONAL ELECTED

OFFICIALS ABOUT PUBLIC

POLICY ISSUES.


) If this amount includes fore1an arants check here

d NEW COALITION

-

PUBLICATIONS AND

EVENTS GEARED TOWARD

EDUCATING AND

INFORMING LEADERS

OF AFRICAN-AMERICAN,

HISPANIC AND OTHER MINORITY GROUPS.


l If this amount includes fore,an arants check here

e

Other program services (attach schedule)

SEE STATEMENT 2


1 3 5 , 0 0 0 \ If this amount includes fore1an arants check here

f

Total of Program Service Expenses (should equal line 44, column (8), Program services)

723021

12-27-07

.... LJ

....

D

....

XI

Program

Service

Elpenses

(Required or 501 c)(

and

(4)

orgs, and

4947(a)(1) rusts. bu

optional or others

2,389,180

1,791,365

904,293

87,629

5,172,467.

Form990 (20


4/31

Form 990 2007)

THE

HEARTLAND

INSTITUTE

IPart 1V Balance Sheets

See the mstruct1ons)

Note: Where reqwred, attached schedules and amounts w1thm the descnpt1on column

should be for end-of-year amounts only

45 Cash non-rnterestbearing

46 Savrngs and temporary cash investments

47 a Accounts recervable 47a

10,626.

b Less: allowance for doubtful accounts 47b

48 a

Pledges receivable

48a

b

Less: allowance for doubtful accounts

48b

49 Grants receivable

50 a

Receivables from current and former offrcers, drrectors, trustees, and

key employees

b

Receivables from other drsqualifred persons as defrned under sectron

en

4958 1) 1)) and persons described rn sectron 4958 c) 3 B)

i

51 a

Other notes and loans receivable -I51 a

n

en

c:(

b

Less al lowance or doubtful accounts

51b

52 Inventories for sale or use

53

Prepard expenses and deferred charges

54 a Investments publicly-traded securitres D Cost DFMV

b

Investments other securitres

D Cost

DFMV

55 a Investments land, burldrngs, and

equrpment: basrs

55a

b

Less accumulated deprecratron

55b

56 Investments other

57 a

Land, burldrngs, and equrpment basrs I 57a I

216,821.

b

Less: accumulated deprecratron

57b

135,370.

58

Other assets, ncludrngprogram-related nvestments

describe

SECURITY

DEPOSIT

)

59

Total assets must eaual line 74). Add lines 45 throuah 58

60

Accounts payable and accrued expenses

61 Grants payable

62 Deferred revenue

en

GI

63

Loans from offrcers, drrectors, trustees, and key employees

64 a Tax-exempt bond lrabrlrtres

:a

ca

b Mortgages and other notes payable

:J

65

Other rabrlitres describe )

66

Total liabilities. Add lines 60 throuah 65

Organizations that follow SFAS 117, check here~

[X] and complete lines

en

67 through 69 and lrnes 73 and 74.

GI

67

Unrestricted

u

c

68

Temporarily restncted

a

iii

m

69

Permanently restncted

C

Organizations that do not follow SFAS 117, check here Dand

:::,

u.

complete lrnes 70 through 74

...

0

70 Caprtal stock, trust pnncrpal, or current funds

en

-

I

71

Pard-rn or caprtal surplus, or land, burldrng, and equrpment fund

en

en

72

Retarned earnings, endowment, accumulated rncome, or other funds

:(

-

I

73 Total net assets or fund balances. Add lrnes67 through 69 or Imes 70 through 72

z

Column A) must equal me 19 and column 8) must equal me 21)

74 Total liabilities and net assets/fund balances. Add Imes66 and 73

723001

12-27-07

36-3309812 Pag

A)

B)

Begrnnrngof year

End of year

500,352.

45

1,214.

46

8,468.

47c

10,626.

48c

49

50a

50b

51c

52

18,222.

53

45,923.

54a

54b

55c

56

34,659.

57c

81,451.

6,000.

58

6,000.

567.701.

59

145,214.

32,588.

60

258,559.

61

62

63

64a

64b

65

32,588.

66

258,559.

535,113.

67


5/31

Form990 2007 THE HEARTLAND INSTITUTE 36-3309812 Pag

Part IV-A Reconciliation of Revenue per Audited Financial Statements With Revenue per Return

(See

the

instructions)

a

Total revenue, gains, and other support per audited f1nanc1al tatements

a

5 216 884.

b

Amounts included on line a but not on Part I, line 12:

1 Net unrealized gains on investments

b1

2 Donated services and use of fac1l1t1es

b2

3

Recoveries of prior year grants b3

4

Other (specify) b4

Add lines b1 through b4 b

0

c

Subtract line b from line a

c

5 216 884.

d

Amounts included on Part I, line 12, but not on line a:

1 Investment expenses not included on Part I, line 6b I 1 I

2

Other (specify):

d2

Add lines d1 and d2

d

0

e

Total revenue (Part I line 12\. Add lines c and d

....

e

5 216 884

I

Part

IV-BI

Reconciliation of Expenses per Audited Financial Statements With Expenses per Return

a

Total expenses and losses per audited financial statements

a

5 865 342.

b

Amounts included on line a but not on Part I, line 17:

1 Donated services and use of fac11it1es

b1

2 Prior year adJustments reported on Part I, line 20

b2

3

Losses reported on Part I, line 20 b3

4 Other (specify): b4

Add

lines b1 through b4 b

0

c

Subtract line b from line a c

5 865 342.

d

Amounts included on Part I, line 17, but not on line a:

1

Investment expenses not included on Part I, line 6b

I

1

I

2 Other (specify):

d2

Add lines d1 and d2

d

0

e

Total exoenses (Part I line 17l. Add lines c and d

....

e

5 865 342

IPart V-A I Current Officers, Directors, Trustees, and Key Employees

(List each person who was an officer, director, trustee,

or key employee at any time during the year even 1f hey were not compensated.) See the instructions)

(B) Title and averagehours (C) Compensation (D)contnbut,onso

(A)

Nameand address per week devoted o (II not paid, enter ~ ; fn

~ie:;:i:;:::ll

pos1t1on -0-.) compensationlans

SEE STATEMENT 3

172 629.

0.

(E) Expen

account an

other allowan

0

Form990 (20

723041 12-27-07


6/31

Form 990 (2007) THE HEARTLAND I

NSTITUTE 36 3309812

Pag

IPart VA I Current Officers, Directors, Trustees, and Key Employees

conttnued)

Yes N

75 a

.

Enter the total number of officers, directors, and trustees permitted to vote on organization business at board

meetings

....

16

b

Are any officers, directors, trustees, or key employees listed 1nForm 990, Part VA, or highest compensated employees

listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed in Schedule A,

Part llA or 11-B, elated to each other through family or business relat1onsh1ps? f 'Yes,' attach a statement that 1dent1f1es

the 1nd1v1duals nd explains the relat1onsh1p(s)

SEE STATEMENT

4

75b

x

c

Do any officers, directors, trustees, or key employees listed 1n Form 990, Part VA, or highest compensated employees

listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed 1nSchedule A.

Part llA or llB, receive compensation from any other organizations, whether tax exempt or taxable, that are related to the

organization? See the 1nstruct1ons or the def1n1t1on f related organization.

75c

If 'Yes,' attach a statement that includes the 1nformat1ondescribed in the 1nstruct1ons.

d

Does the oraanizat1on have a written conflict of interest oolicv? 75d

I

Part V-Bl Form~r Officers, Directors, Trustees, and Key Employees That Received Compensation or Other

Benefits (If any former officer, director, trustee, or key employee received compensation or other benefits (described below) during

the year, list that person below and enter the amount of compensation or other benefits 1n he appropriate column. See he instruction

(C) Compensation

(0)

Contnbutoons to

(E) Expen

(A) Nameand address

(B) Loansand Advances

(11 ot paid,

employee benefit

accountan

enter -0-)

plans

&

deferred

other allowan

omoensat1on clans

LEE WALKER

8086 SOUTH GARFIELD AVENUE

BURR RIDGE, IL 60527

0.

31,000.

0.

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

r

------------------------------------------------------------------

---------------------------------

---------------------------------

---------------------------------

---------------------------------

IPart VI I

Other Information

See the mstruct,ons)

Yes N

76

Did the organization make a change 1n ts act1v1t1es r methods of conducting act1v1t1es?f 'Yes,' attach a detailed

statement of each change 76

77

Were any changes made 1n he organizing or governing documents but not reported to the IRS?

77

If 'Yes,' attach a conformed copy of the changes.

78 a

Did the organ1zat1onhave unrelated business gross income of $1,000 or more dunng the year covered by this return?

7Ba

x

b

If 'Yes,' has 1t iled a tax return on Form 990-T for this year?

7Bb

x

79

Was there a hqu1dat1on, 1ssolut1on, erm1nat1on,or substantial contraction during the year? If 'Yes,' attach a statement

79

BOa

Is the organization related (other than by assoc1at1onwith a statewide or nat1onw1deorgan1zat1on) hrough common

membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organ1zat1on?

BO

b

If 'Yes,' enter the name of the organ1zat1on...

N/A

and check whether It 1sD exemptor D nonexempt

81 a

Enter direct and 1nd1rectpolitical expenditures (See line 81 instructions.)

I

81

a I

0.

b

Did the oraanizat1on file Form 1120-POL for this vear? 81b

Form990 (20

723161/12-27-07


7/31

"

Form 990 (2007) THE HEARTLAND INSTITUTE

3 6 - 3 3 0 9 812

Pag

Part VI I Other Information contmued)

82 a' Did the organ1zat1on eceive donated services or the use of matenals, equipment, or fac11it1es t no charge or at substantially

less than fair rental value?

b If 'Yes,' you may 1nd1cate he value of these items here. Do not include this

amount as revenue 1n Part I or as an expense 1nPart II.

(See instructions 1n Part Ill.)

I 82b I

83 a Did the organ1zat1oncomply with the public inspection requirements for returns and exemption applications?

b Did the organ1zat1oncomply with the disclosure requirements relating to qwd pro quo contnbut1ons?

84 a Did the organization sol1c1t ny contnbut1ons or gifts that were not tax deductible?

N/A

b If 'Yes,' dtd the organ1zat1on nclude with every solic1tat1onan express statement that such contnbut1ons or gifts were not

tax deductible? N / A

85 a 501 c) 4), 5), or 6). Were substantially all dues nondeductible by members?

N / A

b Did the organ1zat1onmake only in-house lobbying expenditures of $2,000 or less? N / A

If 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organ1zat1on eceived a

waiver for proxy tax owed for the pnor year.

c Dues, assessments, and s1m1lar mounts from members i--:c8:c5c=-+-----'-;-=------1

/A

N/A

Section 162(e) lobbying and political expenditures 85,,_,d=-+----.=..:.::..,..=.=------

N/A

Aggregate nondeductible amount of section 6033(e)(1 (A) dues notices r-=-85::..:e=-+-------''.-=----i

N/A

Taxable amount of lobbying and pol1t1calexpenditures (line 85d less 85e) l..-"8.,,_51:.....1.___ .=..:.::..,.::.=----l

N/A

Does the organ1zat1onelect to pay the section 6033(e) tax on the amount on line 85f?

h If section 6033(e)(1)(A) dues notices were sent, does the organ1zat1onagree to add the amount on line 85f

to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the

following tax year?

N/A

86 501 c){7) orgamzat1ons Enter: a ln1t1at1onees and capital contnbut1ons included on

line 12

86a

N/A

b Gross receipts, included on line 12, for public use of club fac11it1es

86b

N/A

87

501 c) 12) orgamzat1ons

Enter:

a

Gross income from members or shareholders

87a

N/A

b Gross income from other sources (Do not net amounts due or paid to other sources

against amounts due or received from them.) 87b

N / A

88 a At any time dunng the year, did the organ1zat1onown a 50% or greater interest In a taxable corporation or partnership,

or an entity disregarded as separate from the organization under Regulations sections 301.77012 and 301.7701-3?

If 'Yes,' complete Part IX

Yes

82a

83a

X

83b X

84a

84b

85a

85b

85a

85h

88a

b At any time dunng the year, did the organization, directly or 1nd1rectly, own a controlled entity within the meaning of

section 512(b)(13)? If 'Yes,' complete Part XI

.... 88b

89 a

501 c) 3) organizations

Enter: Amount of tax imposed on the organ1zat1ondunng the year under:

section4911..,.

0 ,

sectlOn 912 .,.

0 ,

section4955 ..,.

0

______

_::.....:._

b 501 c) 3) and 501 c) 4) organizations. Did the organization engage in any section 4958 excess benefit

transaction dunng the year or did rt become aware of an excess benefit transaction from a prior year?

If 'Yes,' attach a statement explaining each transaction

c Enter: Amount of tax imposed on the organ1zat1onmanagers or d1squal1f1ed ersons dunng the year under

sections 4912, 4955, and 4958 .... _______

__:o:....c..

d Enter: Amount of tax on line 89c, above, reimbursed by the organ1zat1on

..,. ______ .::...o-=-.

89b

e A// organizations At any time dunng the tax year, was the organ1zat1ona party to a proh1b1ted ax shelter transaction? 89e

I A// orgamzat1ons. Did the organ1zat1onacquire a direct or indirect interest 1nany applicable insurance contract? 891

g For supportmg organizations and sponsonng orgamzat1ons mamtammg donor advised funds Did the supporting organ1zat1on,

or a fund ma1nta1nedby a sponsonng organ1zat1on,have excess business holdings at any time dunng the year? 89a

90 a List the states with which a copy of this return 1s iled

..,._I_L________________ ~--~----------

b Number of employees employed 1n he pay penod that includes March 12, 2007

I

9Db

I

91

a

Thebooksaremcareol..,.


Telephone o..,. (

312) 377-4000

Located t .... 19 SOUTH LA SALLE STREET, 903, CHICAGO, IL ZIP+4 .... 60603

b At any time dunng the calendar year, did the organization have an interest 1nor a signature or other authonty over

Yes

a financial account in a foreign country (such as a bank account, secunt1es account, or other f1nanc1alaccount)?

91b

If 'Yes,' enter the name of the foreign country ....

N/A

See the 1nstruct1ons or exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank

and Financial Accounts

Form

990

(20

723162 / 12-27-07


8/31

Form 990 2007


36-3309812

Part VI Other Information

(contmued)

c At any time during the calendar year, d1d he organization ma1nta1n n office outside of the United States? 91c

If 'Yes,' enter the name of the foreign country .... ____

N---'-/_A_________________ _

92 Section 4947(a)(1) nonexempt chantable trusts fl/mg Form 990 m lieu of Form 1041- Check here

....

and enter the amount of taxexemot interest received or accrued dunno the tax vear

..,. 92 I

N/A

IPart VII I Analysis of Income-Producing Activities (See the mstruct1ons)

Note: Enter gross amounts unless otherwise

Unrelated usiness ncome

Excluded by section 512, 513, or 514

(E)

md1cated

(A)

(B)

(C)

(0)

Related r exempt

Business

Amount

Exclu-

Amount

93

Program service revenue: code

s1on

tu nction ncome

code

a

PUBLICATIONS/RESEARCH 511110

48,175.

140,960.

b

POLICY BOT/INTERNET

c

PUBLICATIONS/RESEARCH

d

SPEAKERS BUREAU

e

f Med1care/Med1ca1d ayments

g Fees and contracts from government agencies

94 Membership dues and assessments

26,157.

95 Interest on savingsand temporarycash nvestments

34,587.

96 D1v1dends nd interest from secunt1es

97

Net rental income or (loss) from real estate

a debt-financed property

b

not debt-financed property

98 Net rental income or (loss) from personal property

99 Other investment income

100

Gain or (loss) from sales of assets

other than inventory

101

Net income or (loss) from special events

102

Gross profit or (loss) from sales of inventory

103

Other revenue.

a

b

c

d

e

104

Subtotal (add columns

(B).

(D), and

(E))

48,175. 0. 201,704.

105 Total (add line 104, columns (B), (D), and (E))

....___ 2_4_9__.8_

Note:

Lme 105 plus /me 1e, Part I, should equal the amount on /me 12, Part I

I Part VIII I Relationship of Activities to the Accomplishment of Exempt Purposes (See the mstruct1ons)

Line No.

Explainhow eachact1v1tyor which income1s eported n column (E) of PartVII ontributed mportantly o the accomplishment f the organ1zat1on's

..

exemptpurposes other han by providing unds for such purposes)

93A

ANNUAL

FUNDRAISER

&

OTHER PUBLIC

EVENTS EDUCATES

ATTENDEES AS WELL A

93B

HEARTLAND

DISSEMINATES

ITS RESEARCH THRU PUBLICATIONS & PUBLIC

EVENT

94

MEMBER DUES

QUALIFY MEMBERS FOR FREE

PUBLICATIONS

&

EVENT DISCOUNTS.

95

INTEREST IS

EARNED INCIDENTAL TO

FUNDRAISING & PROGRAM ACTIVITIES.

IPart IX I Information Regarding Taxable Subsidiaries and Disregarded Entities (See the mstruct1ons)

(A)

\DJ

(Iii

(UJ (t:J

Name,address,and EINof corporation.

Percentage f

Natureof act1V1t1es

Total ncome

End-of-( ea

oartnersh10, r d1sreoarded nt1tv

ownership nterest

asses

N/A

IPartX I

Information Regarding Transfers Associated with Personal Benefit Contracts (See the mstruct1ons)

(a) Did he organization, uring the year, receiveany unds, directly or indirectly, o pay premiumson a personalbenefitcontract?

(b) Did he organ1zat1on.uring the year. pay premiums,directly or indirectly,on a personalbenefitcontract?

Note: If Yes to (b), file Form 8870 and Form 4720 (see mstruct1ons).

723163

12-27-07

Dves

Dves

[Kl

[Kl

Form990 (2


9/31

I

Form990 2007 THE HEARTLAND INSTITUTE 36-3309812 Pa

Part XI Information Regarding Transfers To and From Controlled Entities.

Complete only if the organization is

a

control/mg organization as defined m section 512 b) 13). N / A

106 Did the reporting organ1zat1on make any transfers to a controlled entity as defined 1nsection 512(b)(13) of the Code? If Yes,

com lete the schedule below for each controlled ent1t

a

b

c

(A)

Name, address, of each

controlled entity

Totals

(B)

Employer

ldent1llcation

Number

(C)

Description of

transfer

Yes

(D)

Amount of

transfer

Yes

107 Did the reporting organ1zat1on receive any transfers from a controlled entity as defined 1n section 512(b)(13) of the Code? If Yes,

com lete the schedule below for each controlled ent1t

a

b

c

(A)

Name, address, of each

controlled entity

Totals

(B)

Employer

ldent1l1cation

Number

(C)

Description of

transfer

(D)

Amount of

transfer

Yes

108 Did the organization have a binding written contract 1neffect on August 17, 2006, covering the interest, rents, royalties, and

Please

Sign

Here

Typeor

723164/12-27-07

ve examined this return, mcludmg accompanying schedules and statements, and to the best of my knowledge and belief, 1t 1s true, correct

'11 11M.D

ffic n all 1nformat1 of which preparer has any knowledge

Date

Prepare(s SSN or PTIN (See Gen In

Phoneno

847 605-0700

Form

990 (20


10/31

SCHEDULE A

(For~ 990 or 990-EZ)

Department of the Treasury


Organization Exempt Under Section 501 (c)(3)

(ExceptPrivateFoundation) nd Section501 e), 501 f), 501 k),

501 n), or 4947(a)(1)NonexemptCharitableTrust

Supplementary lnformation-(See separate instructions.)

MUST e completedby he aboveorganizations nd attached o their Form990 or 990-EZ

OMS No 1545-0047

2 7

Name f the organization

Employerdentificationnumbe


36 3309812

Part I

Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees

(Seepage

1

of the nstructionsList eachone II thereare none,enter None')

(a) Name ndaddress f eachemployee aid (b) Titleand average ours

more han 50,000 per wei~s~f~~tedo

(c) Compensation

(d) Contnbut,ons to (e) Expen

~';'fn

~l~~:~t

account nd o

compensation

allowance

NICOLETTE M COMERFORD MANAGER

597 GREEN OAKS DRIVE,CRYSTAL LAKE, II 40.00

64,035.

RALPH W CONNER MANAGER

313 N 5TH, MAYWOOD,IL 60153 - 40.00

68,293.

LATREECE VANKINSCOTT W/P HUMANRES

5127 W GLADYS FLOOR 2 CHICAGO, IL - 40.00 69,747.

KEVIN M. FITZGERALD VP PROGRAMS

1934 N. LEAVITT #2 CHICAGO, IL 60647- 40.00 80,065.

TREVOR R. MARTIN VP GOVT REL.

3270 N LAKE-SHORE DR #13E-CHICAGO-IL- 40.00

72,040.

Totalnumberof otheremployees aid

over 50,000

7

IPart HA

I

Compensation of the Five Highest Paid Independent Contractors for Professional Services

(Seepage2 of the nstructionsListeachone whethernd1v1dualsr firms)

If

thereare none enter None')

(a) Name nd address f each ndependentontractor aidmore han 50,000

(b) Typeof service (c) Compensa

MS. ALEXANDRA LIDDY BOURNE RESEARCH, WRITING

9321 OLD MANSION ROAD, ALEXANDRIA, VA 22309 & SPEAKER ON ENV 90,500.

MR.S.T. KARNICK SENIOR EDITOR FOR

402 NORTH GREENLEE-DRIVE, INDI-ANAPOLIS ;-I-N- - 462 341FIVE PUBLICATION 00, 400

MR. JAMES M. TAYLOR MANAGING EDITOR

3718 162ND AVENUE EAST, PARRISH, FL 34219 FOR MONTHLYPUBLI 71,750.

MS. KARLA SCHNEEBERGER MANAGING EDITOR

5056 HARVEST ROAD, COLORADO SPRINGS, CO 80917 FOR TWO PUBLICATI 54,000.

Totalnumberof others eceiving ver I

50,000 or professional ervices 4

I

Part U-B

1

Compensation of the Five Highest Paid Independent Contractors for Other Services

(List eachcontractorwho performed ervices ther han professional ervices,whether nd1v1dualsr

firms II thereare none,enter None' Seepage2 of the nstructions)

(a) Name nd address f each ndependentontractor aidmore han 50.000

NONE

Totalnumberof othercontractors eceiving ver

50,000 or otherservices

~I

0

123101112-21-01 LHA

For PaperworkReductionAct Notice,see he Instructions or Form990 and Form990-EZ

(b) Typeof service (c) Compensa

ScheduleA (Form990 or 990-EZ) 0


11/31

.

3 6 3 3 0 9 812

Pa

IPart HI

I

Statements bout ctivities (Seepage2 of the nstructions

1 During he year,has he organization ttempted o influencenational. tate,or local eg1slat1on,cludmg ny attempt o influence

public opm1on n a leg1slat1veatteror referendum?f Yes, nter he total expenses aidor incurredm connectionwith the

lobbyingact1v1t1es $ $ (Must equalamountson lme38, PartVI-A, or

lme of PartVI-B )

Organizationshat madean electionundersection501(h) by f1lmg orm5768 must completePartVI-A Otherorganizations

checking Yes must completePartVI-BANDattacha statement 1vmg detailed escriptionof the obbyingact1v1t1es

2

During he year.has he organization, itherdirectly or md1rectly, ngagedmany of the followingacts with any substantial ontributors,

trustees,directors,officers.creators,keyemployees, r membersof their am1l1es.r with any axableorganizationwith which any such

person1saffll1ated s an officer.director, rustee,maJority wner,or principalbenef1c1ary?If the answer to any question is Yes,

attach

a

detailed statement explaining the transactions.)

a Sale.exchange, r leasingof property?

b

Lendmg of moneyor other extensionof credit?

c

Furn1shmgf goods,services, r fac1l1t1es?

d Payment f compensationor paymentor reimbursement f expenses fmore han $1,000)?

e Transferof any part of its incomeor assets?

3 a Did he organ1zat1onakegrants or scholarships,ellowships, tudent oans,etc ? (If Yes,'attachan explanation f how

the organization etermineshat rec1p1entsualify o receivepayments

b Did he organization avea section403(b) annuityplan or its employees?

c

Did he organization eceive r hold an easementor conservation urposes,mcludmg asementso preserveopenspace.

the environment. istoric andareasor historicstructures? f Yes, ttacha detailed tatement

d

Did he organization rovidecreditcounseling, ebt management, redit repair,or debt negot1at1onervices?

4 a Did he orgamzatmnmamtam ny donor advised unds? f 'Yes, complete mes4b through 4g If No,'complete mes41

and 4g

b Did he organizationmakeany axabled1stribut1onsndersection4966?

c Did he organizationmakea d1stribut1ono a donor. donor advisor.or relatedperson?

d

Enter he total numberof donor advised unds ownedat the end of the tax year

e Enter he aggregate alueof assetsheld m all donor advised unds ownedat the end of the tax year

f Enter he total numberof separateunds or accountsownedat the end of the year excluding onor advised unds ncludedon

lme4d) wheredonorshave he right o provideadviceon the d1stribut1onr investment f amountsm such unds or accounts

g Enter he aggregate alueof assetsmall funds or accounts ncludedon me41at the end of the ax year

N/A

N/A

Yes N

2a

2b

2c

2d

X

2e

3a

3b

3c

3d

4a

4b

4c

Schedule (Form990 or 990-EZ)2

723111

12 27 07


12/31

3 6 3 3 0 9 8 12 Pa

P~ IV I Reason for Non-Private Foundation Status (Seepages4 through 8 of the nstructions

I certify hat the organization snot a private oundationbecause t1s (Please heckonly ONEapplicable ox)

5 D A church,convention f churches,or assoc1at1onf churches Section170(b)(1 (A)(1)

6 D A school Section170(b)(1)(A)(11)AlsocompletePartV)

7

D

A hospitalor a cooperative ospital erviceorganizationSection170(b)(1 (A)(111)

8 D A federal, tate,or localgovernment r governmental nit Section170(b)(1(A)(v)

9

D A medical esearch rganization peratedn con1unct1onith a hospital Section170(b)(1 (A)(111)nter he hospital's name, city,

and state

10

D

An organization peratedor the benefitof a collegeor university wnedor operated y a governmental nit Section170(b)(1)(A)(1v)

(Alsocomplete he SupportSchedule n Part V-A)

11a D An organizationhat normally eceives substantial art of its support rom a governmental nit or from the generalpublic

Section170(b)(1 (A)(v1) Also complete he SupportSchedule n Part V-A)

11b D A community rust Section170(b)(1 (A)(v1) Alsocompletehe SupportSchedule n Part V-A)

12

[X]

An organizationhat normally eceives 1) more han 331/3% of its support rom contributions,membershipees.and gross

receipts rom act1v1t1eselated o its charitable, tc, functions subJecto certainexceptions, nd (2) no more han 33 1/3% of

its support rom gross nvestmentncomeand unrelated usinessaxable ncome lesssection511 tax) from businesses cquired

by the organization fterJune 30, 1975 Seesection509(a)(2) (Alsocomplete he SupportSchedule n Part V-A)

13

D

An organizationhat 1snot controlledby any d1squal1f1edersons other han oundationmanagers) nd otherwisemeets he requirements f section

509(a)(3) Check he box hat describeshe ype of supportingorganization

D Type D Type I D Type ll-Functionallyntegrated D Type ll-Other

Provide he following nformationabout he supportedorganizations. Seepage8 of the nstructions

(a) (b)

(c)

(d)

(e)

Name(s)of supportedorganization(s) Employer Type of organization Is the supported Amountof

identification

(described n lines organization isted in support

number EIN)

5 through12 above

the supporting

or IRCsection) organization's

governingdocuments?

Yes

No

Total

14

D

An organization rganized nd operatedo test for publicsafety Section 09(a)(4) (Seepage8 of the nstructions

ScheduleA (Form990 or 990-EZ)

723121

12-27-07


13/31

Schedule (Form990 or 990-EZ) 007 THE HEARTLAND INSTITUTE 36-3 309 812 P

Part IV 'A Support Schedule (Complete only If you checked a box on line 10, 11, or 12.) Use cash method of accounting.

N h

rk

h th fi f

te: ou mav use t e wo

s eetm e mstruc tons or convertmc

rom the accrual to the cash method o accountma

Calendar ear (or hscal year

beginning n)

....

(a) 2006

(b) 2005

(c) 2004

(d) 2003 (e) Total

15

Gifts,grants.and contributions

received Do not ncludeunusual

2,492,169. 2,242,948. 1,753,416.

1,546,170. 8,034,703.

rants See me 28 )

16

Membershipees eceived

25,279. 29,943. 33,196. 28,945.

117,363.

17

Gross eceipts rom adm1ss1ons.

merchandiseold or services

performed, r furmshmg f

fac1l1t1esany act1v1tyhat 1s

relatedo the orgamzat1on's

charitable, tc, purpose

187,267. 246,591. 211,980. 316,026. 961,864.

18

Gross ncome rom nterest, 1v1d-

ends,amounts eceivedrom pay-

mentson

securitiesoans section

512(a)(5ll rents, oyalties.ncome

from s1m1r sources, nd unrelated

businessaxable ncome less

section511 axes) rom businesses

acquired ~ he organization fter

42,973.

1, 401.

2,819. 1,700.

48,893.

une30, 1 75

19 Net ncome rom unrelated usiness

act1v1t1esot ncludedm me18


14/31

.

Schedule (Form990 or 990-EZ) 007 THE HEARTLAND INSTITUTE 3 6- 3 3 0 9 8 12 Pag

Part V

l

Private School Questionnaire

(Seepage9 of the nstructions

N/A

(To be completed ONLY by schools that checked the box on line 6 in Part IV)

29 Does he organization avea raciallynondiscriminatoryolicy owardstudents y statementn its charter,bylaws,othergoverning

Yes

N

instrument, r in a resolution f its governing ody? 29

30

Does he organizationncludea statement f its raciallynond1scnminatoryolicy owardstudentsn all ts brochures. atalogues,

and other writtencommunications ith he publicdealingwith studentadm1ss1ons.rograms. nd scholarships?

30

31

Has he organization ublicizedts raciallynond1scnminatoryolicy hroughnewspaper r broadcastmediaduring he periodof

sol1c1tat1onor students. r during he reg1strat1onenod1f1thas no sol1c1tat1onrogram, n a way hat makes he policyknown

to all parts of the general ommunity1t erves?

31

If "Yes,'please escribe, f No,"please xplain (If you needmorespace, ttacha separate tatement)

32 Does he organ1zat1onaintain he ollowing

a

Recordsndicatinghe racialcompos1t1onf the studentbody, aculty,andadm1nistrat1vetaff?

32a

b

Records ocumentinghat scholarships nd other inancial ssistance reawarded n a racially ondiscriminatory asis?

32b

c

Copies f all catalogues, rochures, nnouncements.nd otherwrittencommunicationso the publicdealingwith student

adm1ss1ons,rograms, nd scholarships? 32c

d

Copiesof all material sedby he organization r on ts behalf o solicitcontributions?

32d

If you answeredNo' to any of the above,please xplain (If you needmorespace. ttacha separate tatement)

33

Does he organization 1scnmmatey race n nywaywith respect o

a

Students' ights or privileges? 33a

b

Adm1ss1onsol1c1es? 33b

c

Employment f facultyor admin1strat1vetaff? 33c

d

Scholarships r other inancial ssistance? 33d

e

Educational ol1c1es? 33e

f

Useof fac111t1es?

331

g

Athleticprograms'

33a

h

Otherextracurricular ct1v1t1es?

33h

If you answeredYes' o any of the above,please xplain (If you needmorespace. ttacha separate tatement)

34 a Does he organizationeceive ny inancialaid or assistancerom a governmentalgency? 34a

b Has he organization'sight o suchaid everbeen evoked r suspended?

34b

If you answeredYes' o either34aorb, please xplainusingan attached tatement

35 Does he organizationertify hat 1 hascompliedwith he applicableequirements f sections 01 through 4 05 of Rev Proc 75-50,

1975-2CB 587,covering acialnond1scriminat1on?f No,' attachan explanation

723141

12-27-07

35



15/31

'

ScheduleA (Form 990 or 990-EZ)2007


3 6 3 3 0 9 812 Pa

Part VI ... Lobbying Expenditures by Electing Public Charities (Seepage11 of the mstruct1ons

(To be completedONLYby an el1g1blerganizationhat filed Form5768)

N/A

c

D

f ff1

t

d c

D

f

eck

a

I the oroanizat1onelonas o an a 11ae a ouo heck

b I vou checked a" and limited control' orov1s1onsoolv

Limits on Lobbying Expenditures

(a)

Aff1l1atedroup

(The erm expenditures'meansamountspaid or incurred)

totals

N/A

36

Total obbyingexpenditureso influencepublic opm1ongrassroots obbying)

36

37 Total obbyingexpenditureso influencea leg1slat1veody (direct obbying) 37

38

Total obbyingexpenditures add mes36 and 37)

38

39

Otherexemptpurposeexpenditures

39

40

Total exemptpurposeexpenditures add mes38 and 39) 40

41

Lobbyingnontaxable mount Enter he amount rom the following able

If the amount on line 40 is - The obbying nontaxableamount s -

Not over $500,000

20 of the amount on line 40

over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $500,000

OVer $1,000,000 but not over $1,500,000

$175,000 plus 10% of the excess over $1,000,000

41

OVer $1,500,000 but not over $17,000,000

$225,000 plus 5% of the excess over $1,500,000

over $17,000,000

$1,000,000

42

Grassroots ontaxable mount enter25% of lme41) 42

43

Subtract me 42 from lme 36 Enter 0- 1f me 42 1smore han me 36

43

44 Subtract me 41 from lme38 Enter 0-1f me 41 1smore han me 38 44

Caution: If there is an amount on either /me 43 or /me 44 you must file Form 4720.

4-Year Averaging Period Under Section 501(h)

(Someorganizationshat madea section501(h) electiondo not have o completeall of the five columns

below See he mstruct1onsor Imes45 through 50 on page 13 of the mstruct1ons

LobbyingExpendituresDuring4-Year Averaging Period

Calendaryear (or

(a)

(b) (c)

(d)

fiscal year beginning n) 2007 2006 2005

2004

45

Lobbyingnontaxable

amount

46 Lobbyingce1lmg mount

1150%of lme 45{el\

47 Total obbying

exoend tues

48 Grassroots ontaxable

amount

49 Grassroots e1lmg mount

1150%of lme 48{e))

50

Grassrootsobbying

exoend1tures

Part v1..

l

Lobbying Activity by Nonelecting Public Charities

(For reportingonly by organizationshat did not completePartVI-A) (Seepage14 of the mstruct1ons

During he year,did the organizatmn ttempt o influencenational, tate or local eg1slat1on,cludmgany attempt o

Yes Noinfluencepublic opm1on n a leg1slat1veatter or referendum,hrough he use of

a Volunteers

b

Paidstaff or managementIncludecompensationm expenses eportedon Imesc through h.)

c

Mediaadvertisements

d

Ma1lmgso members, egislators,or the public

e

Publ1cat1ons.r publishedor broadcast tatements

I

Grants o other organizationsor lobbyingpurposes

g Directcontactwith legislators, heir staffs,governmentoff1c1als,r a leg1slat1veody

h Rallies,demonstrations, eminars. onventions, peeches,ectures.or any othermeans

i Total obbyingexpenditures Add mesc through h )

If 'Yes' to any of the above.also attacha statementg1vmg detaileddescnpt1on f the obbyingact1v1t1es

(b)

To be completed or a

electingorganization

N/A

(e)

Total

N/A

Amount

723151

1227-07

ScheduleA (Form990 or 990-EZ)2


16/31

'

Schedule (Form990 or 990-EZ) 007

THE HEARTLAND INSTITUTE 36-3 30 9 812

IPart VII I nformation Regarding Transfers To and Transactions and Relationships With Noncharitable

Exempt Organizations

(Seepage14 of the nstructions)

51 Did he reportingorganization irectlyor indirectly ngagen any of the ollowingwith any otherorganization escribedn section

501 c) of the Code other han section501 c)(3) organizations)r in section527, relatingo pol1t1calrganizations?

a Transfersrom the reportingorganizationo a noncharitable xempt rganization f

i)

Cash

ii)

Otherassets

b other ransactions

(1) Salesor exchanges f assetswith a noncharitablexemptorganization

(II) Purchases f assets rom a noncharitable xemptorganization

i11)

Rental f fac1l1t1es,quipment. r otherassets

iv)

Reimbursementrrangements

(v) Loansor loanguarantees

vi)

Performance f services r membership r fund aisingsollc1tat1ons

c Sharingof fac1l1t1es.quipment.mailing ists,otherassets,or paidemployees

d If the answer o any of the above1s Yes,'completehe ollowingscheduleColumn b) shouldalways how he fair market alueof the

goods.otherassets. r services iven by he reportingorganization f the organizationeceivedess han air marketvalue n any

51a i)

a 1i)

b i)

b ii)

b iii)

b iv)

b v)

b vi)

c

Yes

transaction r sharingarrangement, how n column d) the valueof the goods.otherassets, r services eceived

N / A

(a)

(b)

(c)

(d)

Pa

N

Lineno Amount nvolved Name f noncharitable xemptorganization

Description f transfers, ransactions. ndsharingarrangem

52 a Is the organization irectlyor indirectlyaff1l1atedith, or relatedo, oneor more ax-exempt rganizations escribedn section501(c)of the

Code other hansection501(c)(3))or in section527?

D

Yes

[Kl

b If Yes. omplete he ollowingschedule

N / A

723152

12-27-07

(a)

Name f organization

b)

(c)

Typeof organization Description f relat1onsh1p



17/31

TliE'~ HEARTLAND INSTITUTE

CASH GRANTS AND ALLOCATIONS

TO OTHERS

ACTIVITY/DONEE'S NAME AND ADDRESS

& CLIMATE

RESOURCES STEWARDSHIP PROJECT

BOX 23013

ONTARIO K2A 4E2 CANADA

& CLIMATE

E FOR PUBLIC POLICY

PLACE, SUITE 25 LOMBARDCONCOURSE

MANITOBA, R3B OX3 CANADA

&

CLIMATE

ZEALAND CLIMATE SCIENCE COALITION

RD, R.D. 2

&

CLIMATE

& ENVIRONMENTAL POLICY PROJECT

SOUTH EADS STREET 712-S

, VA 22202-2907

&

CLIMATE

CLIMATE SCIENCE COALITION

BOX 304001

H SHORE CITY 0622, NEW ZEALAND

INCLUDED ON FORM 990, PART II, LINE 22B

OTHER PROGRAMSERVICES

N OF OTHER PROGRAM SERVICES

GRANTS TO 501C(3)AND OTHERS WITH

IN LINE WITH HEARTLAND INSTITUTE.

TO FORM 990, PART III, LINE E

36-3309812

STATEMENT

AMOUNT

25,000.

25,000.

25,000.

15,000.

45,000.

135,000.

STATEMENT

GRANTS AND

ALLOCATIONS EXPENSE

135,000.

135,000.

STATEMENT(S) 1,


18/31

1~E~HEARTLAND INSTITUTE

36-3309812

990 PART V-A -

LIST OF CURRENT OFFICERS,

DIRECTORS, STATEMENT

TRUSTEES AND KEY EMPLOYEES

EMPLOYEE

TITLE AND COMP N-

BEN PLAN

EXPENS

AND ADDRESS AVRG HRS/WK SATION

CONTRIB

ACCOUN

BAST PRESIDENT

EAST WILMETTE ROAD

124

40.00 96,292.

0.

IL 60074

DIRECTOR

KINGSBURY AVENUE 301

0.00

0. 0.

IL 60622

FISHER DIRECTOR

WEST WACKER DRIVE, SUITE 4400

0.00 0.

0.

FITZGERALD DIRECTOR

COLONIAL PARKWAY 0.00 0. 0.

HALES DIRECTOR

OAK STREET,

SUITE

102

0.00 0. 0 .

HIGGINSON DIRECTOR

NORTH LAKE SHORE DRIVE llB

0.00 0. 0.

DIRECTOR

CHESTNUT AVENUE 0.00 0. 0.

MARDEN DIRECTOR

EAST 46TH STREET,

SUITE 4J

0.00

0. 0.

YORK, NY 10017

PADDEN DIRECTOR

WEST MONROE, SUITE 706

0.00 0.

0.

RESNIK DIRECTOR

EAST DELAWAREPLACE

0.00

0. 0.

DIRECTOR

GUY STREET

0.00

0.

0.

DIEGO, CA 92103-1539

STATEMENT(S)

--------------


19/31

'l'HE-' HEARTLAND

INSTITUTE

36-3309812

CHAIRMAN

EAST PEARSON STREET,

SUITE

0.00 0.

o.

0

IL 60611

DIRECTOR

WEST MICHIGAN

0.00

0.

0. 0

WI 53201-3050

DIRECTOR

RENAISSANCE CENTER,

MC

0.00

0.

o.

MI 48265-3000

GEORGE KULATHAKAL

DIRECTOR

EAST OHIO,

603 0.00

0.

0.

IL 60611

BAST

VICE PRESIDENT

WILMETTE RD., 124

40.00 76,337. 0. 0

IL 60074

INCLUDED ON FORM

990,

PART V-A

172,629. 0. 0

STATEMENT(S)


20/31

'l'ffE;. HEARTLAND INSTITUTE

C. BAST

EXPLANATION OF RELATIONSHIP

PART V-A, LINE 75B

TITLE OR ROLE

PRESIDENT

TITLE OR ROLE

VICE PRESIDENT

36-3309812

STATEMENT

WIFE AND FULL TIME KEY EMPLOYEES SINCE INCEPTION OF ORGANIZATION.

TO SCHEDULE A, LINE 22

OTHER INCOME

2006

AMOUNT

0.

o.

2005

AMOUNT

0.

0.

STATEMENT

2004

AMOUNT

15,000.

15,000.

2003

AMOUNT

STATEMENT(S) 4,


21/31


FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31 2007

ND

REPORT OF CERTIFIED PUBLIC ACCOUNT ANTS

--- -- ------


22/31

THE HE RTL ND INSTITUTE

T BLE OF CONTENTS

REPORT N ME

Auditor s Report

Financial Statements:

Statement of Financial Position

Statement of Activities

Statement of Functional Expenses

Statement of Cash Flows

Notes to Financial Statements

P GE

3

5

6

7

8-10


23/31

--------

JAMESF. SEXTONAND ASSOCIATES TD.

To The Board of Director-;

The Heartland Institute

CERTIFIED UBLICACCOUNTANTS

Woodfield Lake Office Court

941 Plum Grove Road, Suite A

Schaumburg, Illinois60173

www.mycpacfo.com

(847) 605-0700

Fax (847) 605-0705

July 3. 2008

We have audited the ac..:companyin~ ~:tntement of financial po~ition of The Heartlar..u Institute

(a nonprofit organization) as of D~~emher 31, 2007 and the ri:: ated statements of a~tivities,

functional expenses, and cash

flov:s for

the year then ended. These financial statements are

the responsibility

o~

the organiz.,:,;_m~ rnanagement. Our rcsponsibili:y is 10 e,:pres~

au

opinion on these financial statements based on our audit.

We conducted our audit

in accordance with U.S. generally accepted auditing standards.

Tho5e standards require that we plan and perform the audit t:i obtain rcasonnbk n,surance

about whether the financial statements f refree of material mis::;tatemcnts. A11 audi~ includes

exan1ining

un

a test

t:1sb

cvidem.:,: :-UppDrtinght? amouP.t'- a-:id di~dosure.: ir- the ti.-1:ir:~ia

statements. An aurlit e-lso includes assessing the accounting principles used and significant

estimates made by management as well as cvaiuating the overall finan:::i.:t ~tat~mcnt

presentation. We bdieve that our :wd1t provides a reasonable basis for our 0pinicn

In our opmion, the financial s1~~~:m1;;ntsefe1Ted to above p~esent fairly, in

a;J

rnatrri:ii

respects, the financial position of The Heartland Institute as of December 3 l, 2007, and the

changes in its net assets and its cash flows for the year then ended in confom;iry with

U.S.

generally accepted accounting pri;-iciplcs.

JAM.ES F. SEXTON ASSOC., LTD.

CERTIFIED PUBLIC ACCOUNTANTS

MEMBEROF AMERICAN INSTITUTE F CPAs AND ILLINOIS CPA SOCIETY


24/31

Statement of Financial Position

December 31, 2007

CURRENT ASSETS

Cash and Cash Equivalents

Accounts Pledges Receivable

Prepaid Expense

Total Current Assets

FIXED ASSETS

Office Furniture

, Office Equipment

Leasehold Improvements

Less: Accumulated Depreciation

Net Equipment

OTHER ASSETS

Deposits

Total Other Assets

TOTAL ASSETS

ASSETS

1,214

10,626

45,923

16, 764

146,150

5 3, 907

135,370)

6,000

LIABILITIES AND NET ASSETS

CURRENT LIABILITIES

Accounts Payable

Total Current Liabilities

NET ASSETS

Unrestricted

Temporarily Restricted

Total Net Assets

TOTAL LIABILITIES AND NET ASSETS

See Notes to Financial Statements

4

25 8,559

113,345)

0

57 ,763

81 A51

6,000

145,214

258,559

(I 13 ,34 5)

145,214


25/31


Statement of Activities

Year Ended December 31, 2007

CHANGES IN UNRESTRICTED NET ASSETS:

Contributions

Publications/Research

Advertising

Memberships

Fund Raising

Interest Income

TOTAL

NET ASSETS RELEASED FROM RESTRICTIONS:

Satisfaction of Purpose Restrictions

4,967,006

27,071

21, 104

26, 157

140,960

34,587

TOTAL UNRESTRICTED REVENUE, GAINS AND

OTHER SUPPORT

EXPENSES

Program

Management and General

Fund Raising

TOTAL EXPENSES

5,175,394

448,138

244,737

INCREASE DECREASE) IN UNRESTRICTED

NET ASSETS

CHANGES IN TEMPORARILY RESRICTED ASSETS:

Satisfaction of Purpose Restrictions

Decrease of Temporarily Restricted Assets

CHANGE IN NET ASSETS RESTRICTED)

NET ASSETS, BEGINNING OF YEAR UNRESTRICTED)

NET ASSETS, END OF YEAR UNRESTRICTED)


5

5,216,884

5,216,884

5,868,269

651,385)

0

0

538,040

113,345)

---- ----~~


26/31

Grans-

crd

Es

iefits

ard Pltiicaia,s

ard Q::o.4)8rcy

ies

ard

8:Jl.il]'Te'lt

..ease

dibitirg,Belts

rd

A ofessioral

Fees

BcpeS9S

of Tctal




Prcgrcm

Plblicaions

Gov t.

Public

tew

RelatiCJlS Relatims

Ccslitia,

$181,915

300,830

$157,900

27,9:18

1,085,130

'Zl,oS

92,726

8,216

634,119 119,518

ffi,423 5,642

59,938

22,Sffi

44,992

2,198

1Q471 7,744 24,411

1,2:)1

14,897

225,394

224,830 2,934

396,051 92,242

144,101

39,221

169 25,785 1,000

005,938

6,400 2,456 4,874 Z38

135,CXX>

2,389,180

904,292

1,794,294

87,628

40.71/c 15.41/c

3158/c

1.491/o

6

IVgK

Furd-

TOr,4

&Gerll nising

E,Ea3

$144,205

$1,262,

1,261

2,565

1,217,

6,(93

15,699

Em,4

11,243 6,142

147,

9,007 14,858

ffi,5

1,846

11.m

487,7

31,041 41,250

743.~

77

1,576

28,6

3,684

9'.B,6

1Q299 10,2

1,001

1,0

1,217

65 15,9

135,C

448,138

244,TST

$5,868,

7.64% 4.11/c

100.0


27/31

Cash Flows From Used By) Operating Activities:

Change In Net Assets

Adjustments to reconcile change in net assets to net cash

used for operating activities

Depreciation

Increase) decrease in accounts receivable

Increase) decrease in prepaid publications

Increase decrease) in accounts payable

Increase) decrease in investments

Release of temporary restricted assets

Net cash provided used) by Operating Activities

Cash Flows From used by) Investing Activities

Purchase of property and equipment

Net cash provided used) by investing activities

Net increase decrease) in cash

Cash - Beginning Balance

Cash - Ending Bala:oce

Amounts included in operating activities above:

Amounts of interest paid


7

651,385)

10,299

2, 157)

27,701)

228,899

0

0

57,091)

442,04

57,09

499, 13

500,35

1,21

1,60


28/31




SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Heartlan~ Institute is a nonprofit corporation organized exclusively for charitable and educa

purposes. Its main purpose is to inform and educate the public on research of past and existing public po

and the effects and results of those policies and free market or private sector alternatives.

METHOD OF ACCOUNTING

The Organization maintains its records on the accrual basis in accordance with U.S. generally acc

accounting principles.

BASIS OF PRESENTATION

Financial statement presentation follows the recommendations of the Financial Accounting Stan

in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Non

Profit Organizations. Under SFAS No. 117, the Organization is required to report infonn

regarding its financial position and activities according to three classes of net assets: unrestricte

assets, temporarily restricted net assets, and permanently restricted net assets.

ESTIMATES

The preparation of financial statements in conformity with U.S. generally accepted accou

principles requires the use of management s estimates and assumptions that affect certain rep

amounts and disclosures. Accordingly, actual results could differ from those estimates.

CASH AND EQUIVALENTS

The Organization considers all highly liquid investments with maturity of three months or less w

purchased to be cash equivalents. Cash a-c.dcash equivalents for purposes of the statement of

flows exclude permanently restricted cash and cash equivalents.

FUNCTIONAL EXPENSE REPORTING

The cost of providing program and supporting services has been summarized by function, base

estimates developed by management.

ACCOUNTS PLEDGES RECEIVABLE

Accounts receivable are stated at the amount management expects to collect from outstanding bala

and pledges. Management provides for probable uncollectible amounts through a provision for bad

debt expense based on its assessment of the current status of individual receivables. Balances that a

still outstanding after management has used reasonable collection efforts are written off to bad deb

expense. There were no bad debt write-offs or accounts deemed uncollectible for 2007.

DONATIONS

Donations received in property other than cash are recorded at their fair market value on the date o

gift. Donations in property whose fair market values are not objectively determinable are omitted

the financial statement in accordance with generally accepted accounting standards.

8


29/31




SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

DEPRECIATION

Fixed assets are recorded at cost (or fair market value on the date of donation). Management foll

the practice of capitalizing all expenditures for property, furniture, fixtures and office equipme

excess of 500. Depreciation is computed using the straight-line method over the estimated useful

lives of the assets. Depreciation amounted to 10,299 in 2007.

-TAX STATUS

Heartland Institute is a non-profit organization.

It

qualifies under the Internal Revenue Code Sec

501(c)(3) as an organization exempt from federal income taxation.

3 - FUND BALANCE -TEMPORARILY RESTRICTED

Prior to 1997, the estate of Franklin Butcha executed a note under the charitable remainder trust provision

the Internal Revenue Code. Interest of 5.5% per annum is paid quarterly to the beneficiary of Franklin Bu

estate (his spouse) until her death. The principal loan of 25,000 plus previously accrued interest of 5

prior to Franklin's death for a grand total of 30,576 was recognized as other income in 1996. Since

income and interest expense has been recorded through the unrestricted fund balance. Any present v

adjustment to the bequest as with discounted cash flow adjustments were deemed insignificant.

- LEASE COMMITMENTS

Management entered into a lease extension for its headquarters effective June 1, 2008 through January

2012. Monthly base rent payments are currently 7,497 per month. Management entered into a new leas

rent additional space at the same location effective March 1, 2007 through January 31, 2012. Monthly b

rent payments are currently 5,058 per month. Rent expense amounted to 147,197 in 2007.

The Organization also entered into two equipment-operating leases:

I

A photocopier lease was entered commencing September 2003 for 1,397 per month through Ma

2011.

2. A postage machine lease was entered commencing December 2004 for 850 per quarter thro

February 2008.

9

---- -- - -------


30/31




- LEASE COMMITMENTS (CONTINUED)

Following are the minimum future rental commitments:

Period Ended

December 31, 2008

December 31, 2009

December 31, 2010

December 31, 2011

December 31, 2012

and thereafter

Total

TE 5 - RETIREMENT PLAN

Amount

170,928

174,667

179,383

171,689

14,130

710,797

The Organization sponsors a 401(k) retirement plan covering substantially all employees. No contributions

were paid during 2007.

6 - CONCENTRATION OF CREDIT RISK

The Organization maintains several bank accounts at two banks. Accounts at an institution are insured by t

Federal Deposit Insurance Corporation (FDIC) up to 100,000. Cash at one of these institutions occasionall

exceeds federally insured limits. The amount in excess of the FDIC limit totaled 0 as of December 31, 200

During 2007, the Organization received 38% of its contribution revenue from a single donor.

- FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and activities have been summarized on a functional basis in t

statement of activities. Accordingly, certain costs have been allocated among the programs and supporting

services benefited.

10

----


31/31

I I ,~

Form

8868

(Rev. Apnl 2007)

Application for Extension of Time To File an

Exempt Organization Return

OMB No. 15451709

Departmcmt of the Treasury


.... File a separate apphcat1on for each return.

If you are f1hng or an Automatic 3-Month Extension, complete only Part I and check this box

If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II (on page 2 of this form).

Do not complete Part II unless you have already been granted an automatic 3month extension on a previously filed Form 8868.

IPart f I

Automatic 3-Month Extension of Time.

Only submit original (no copies needed).

Section 501 (c) corporations required to file Form 990T and requesting an automatic 6month extension check this box

and complete Part I only

All other corporations (including 1120-C filers), partnerships, REM/Cs, and trusts must use Form 7004 to request an extension of time

to file income tax returns

.... [X]

...o

Electronic Filing (efile). Generally, you can electronically file Form 8868 1fyou want a 3month automatic extension of time to file one of the returns

noted below (6 months for section 501 (c) corporations required to file Form 9901). However, you cannot file Form 8868 electronically 1f 1) you want

the add1t1onal (not automatic) 3month extension or (2) you file Forms 990BL, 6069, or 8870, group returns, or a composite or consolidated Form

990T. Instead, you must submit the fully completed and signed page 2 (Part II) of Form 8868. For more details on the electronic filing of this form,

v1s1t ,rsovlef1/e and click on e-f1/e or Chant,es Nonvrof,ts

Type or

print

Name of Exempt Organization Employer identification numbe


36-3309812

File by the

due date 10, Number, street, and room or suite no. If a P.O. box, see 1nstruct1ons.

filing your 19 SOUTH LA SALLE STREET, NO. 9 0 3

return See

instruct,ons

City, town or post office, state, and ZIP code For a foreign address, see 1nstrucllons.

CHICAGO, IL 60603

Check type of return to be filed(f1le a separate application for each return)

00

Form 990

D

Form 990BL

D Form 990EZ

D

Forrr. 990PF

D

Form 990-T (corporation)

D

Form 990T (sec. 401 (a) or 408(a) trust)

D Form 990T (trust other than above)

II

Fvrm 1041A

The books are

in

the care of ....


TelephoneNo .... (312) 377-4000 FAXNo ....

D

Form4720

D

Form5227

D

Form6069

D

For-.18870

If the organ1zat1ondoes not have an office or place of business In the United States, check this box

...o

If this 1s or a Group Return, enter the organ1zat1on's our d1g1tGroup Exemption Number (GEN) If this 1s or the whole group, check th

box ....

D

If 11 s or part of the group, check this box ....

D

and attach a hst wrth the names and EINs of all members the extension will cover

I request an automatic 3month (6months for a section 501 (c) corporation required to file Form 9901) extension of time until

AUGUST 15, 2 0 0 8 , o file the exempt organization return for the organization named above. The extension

1s or the organ1zat1on's eturn for

.... 0

calendar year

2 0 0 7

or

....D

tax year beginning

2 If this tax year 1s or less than 12 months, check reason

D

Initial return D

Final return

3a

If this apphcat1on 1s or Form 990-BL, 990PF, 990T, 4720, or 6069, enter the tentative tax, less any

nonrefundable credits. See 1nstrucllons

b

If this apphcat1on 1s or Form 990PF or 990T. enter any refundable credits and estimated

tax oavments made. Include anv onor vear overoavment allowed as a credit.

c

Balance Due. Subtract line 3b from line 3a Include your payment with this form, or, 1f equired,

deposit with FTD coupon or, 1f equired, by using EFTPS (Electronic Federal Tax Payment System).

See 1nstruct1ons

D

Change 1naccounting perio

Ja

3b

-

Jc

N/A

Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO for payment 1nstruct1on

LHA

For Privacy Act and Paperwork Reduction Act Notice, see instructions. Form 8868 (Rev 4-200

Heartland Institute 363309812 2007 044DB1FFSearchable

Documents