363309812 l~"'l/20/2012 1 36 PM

J:~r~ 990 Return of Organization Exempt From Income Tax 2011

OMB No 1545-0047

Department of the Treasury Internal Revenue Service

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) Open to Public

lnsoection ~ The organization may have to use a copy of this return to satisfy state reporting requirements

A For the 2011 calendar vear or tax vear b d d" eamnma an en ma

B Check 1f applicable C Name of organization D Employer 1dentificat1on number

~ Address change THE HEARTLAND INSTITUTE

[J ; Jame change Doing Business As 36-3309812

D lmhal return Number and street (or PO box 1f ma1l 1s not delivered to street address)

I Room/suite E Telephone number

ONE SOUTH WACKER 2740 312-377-4000 D Terminated City or town, state or country, and ZIP + 4

D Amended return CHICAGO IL 60606 G Gross receipts$ 4,699,017

O Apphcat1on pending F Name and address of pnnc1pa; officer

LJ Yes [J!j No JOSEPH BAST H(a} Is this a group return for affiliates?

ONE SOUTH WACKER, SUITE 2740 H(b} Are all affiliates included? [] Yes O No

CHICAGO IL 60606 If "No," attach a list (see instructions)

I Tax-exemet status fXI 501 (c)(3) n 501(c} ( ) <Ill (insert no) n 4947\a)p l or 1: 521

J Website ~ WWW.HEARTLAND.ORG H(c} Group exemption number ~

K Form of oraamzat1on rx1 Core2rahon n Trust n Assoc1at1on n Other~ IL Year of formation 1984 IM State of leaal dom1c1le IL P rtl S a ummarv

1 Briefly describe the organization's m1ss1on or most significant act1v1t1es

Cl) RESEARCH AND WRITING ON PUBLIC POLICY ISSUES. .., c: ra c: ... Cl)

> 2 Check this box ~ D 1f the organization discontinued its operations or disposed of more than 25% of its net assets 0 (!)

13 all 3 Number of voting members of the governing body (Part VI, hne 1 a) 3 en 4 Number of independent voting members of the governing body (Part VI, hne 1 b) 4 12 :! > 5 Total number of md1v1duals employed m calendar year 2011 (Part V, hne 2a) 5 32 :;::. 26 .., 6 Total number of volunteers (estimate 1f necessary) 6 c(

7a Total unrelated business revenue from Part VIII, column (C), line 12 7a 8 116 b Net unrelated business taxable income from Form 990-T, line 34 7b -53,697

Prior Year Current Year

Cl) 8 Contributions and grants (Part VIII, line 1 h) 5,973,500 4,524,164 :::J

9 Program service revenue (Part VIII, line 2g) 122,985 90,822 c: Cl)

8,537 -9,874 > 10 Investment income (Part VIII, columri (A), lines 3, 4, and 7d) Cl)

a:: 11 Other revenue (Part VIII, column (A), Imes 5, 6d, Sc, 9c, 10c, and 11e) -30,075 -31 481 12 Total revenue - add Imes 8 throuah 11 (must eaual Part VIII, column (A), line 12) 6,074,947 4,573,631 13 Grants and s1m1lar amounts paid (Part IX, column (A), Imes 1-3) 118,000 58 000 14 Benefits paid to o• for members (Part IX, column (A), line 4) 0 0

en 15 Salaries. other compensation, employee benefits (Part IX, column I A\ '·--- c • -, 1,606,506 2,004,898 Cl)

16a Professional fundra1smg fees (Part IX, column (A), line 11e) I REC E-~VE O I 0 0 en c: Cl)

b Total food,aosmg e,peases (Part IX, col,ma (D), lme 25) ~ I ~61:,,-6 0-~ 0 Q. )(

w 17 Other expenses (Part IX, column (A), Imes 11a-11d, 11f-24e)\ ~ b\L O ~ 10-12 ~ I 4,421,991 3,141,979 18 Total expenses Add lines 13-17 (must equal Part IX, co1umn rdl line J ~~ 6 146,497 5,204,877 19 Revenue less expenses Subtract line 18 from line 1:' _ _ . .-, :'i <-= -71,550 -631 246 ~., l ~jQG,tlDJ~~tJ~Lt __ - Beginning of Current Year End of Year o"'

!! g 20 Total assets (Part X, line 16) ---' 771, 570 330,493 .....

gfii 297,846 488,015 <ID 21 Total liab11it1es (Part X, lme 26) _-c

... c: 473,724 -157,522 z:, 22 Net assets or fund balances Subtract line 21 from hne 20 LL

Part II Signature Block Under penalties of perJury, I declare that I have examined this return. including accompanying schedules and statements, and t-:i the best of my knowledge and belief, 1t 1s true, correct. and complete De on of pre er Iha officer) is based on all infor,,tion of which preparer has any Knowledge

Sign Here

Paid

Preparer

Use Only

Type or print name and title

Pnnt!Type preparer s name

ROBERT TIGHE

Firm's name • TIGHE KRESS & 1595 WELD ROAD, SUITE 9

Firm's address • ELGIN, IL 60123-5896 May the IRS discuss this return with the preparer shown above? (see mstruct1ons) For Paperwork Reduction Act Notice, see the separate instructions. DAA

PRESIDENT

Date Check [J 11 PTIN

06/20/12 self-employed P00376855

Firm's EIN. 2 6-04 7 6995

Phone no 847-695-2700 ;X] Yes ;, No

Form 990 (2011)

363309812 Ci\120120121 36 PM

· .. --. l

,Form 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 2 Part,111 Statement of Program Service Accomplishments

~~~~----'C~h~e~c~k~if_S~c~h~e~d=u~le~O-"---'c~o_n_ta_m_s_a~re_s~p~o_n~s~e~to~a_ny~q_u~es~t_1o_n_1_n_th_1_s_P~a_rt~l_ll~~~~~~~~~~~~~-----'rl 1 Briefly describe the organization's m1ss1on RESEARCH AND WRITING ON PUBLIC POLICY ISSUES.

2 Did the organization undertake any significant program services during the year which were not listed on the

prior Form 990 or 990-EZ?

If ''Yes," describe these new services on Schedule O

3 Did the organization cease conducting, or make significant changes in how 11 conducts, any program

services?

If "Yes," describe these changes on Schedule O

4 Describe the organization's program service accomplishments for each of its three largest program services, as measured by

expenses Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of

grants and allocations to others, the total expenses, and revenue, 1f any, for each program service reported

4a (Code ) (Expenses $ 2, 007, 320 including grants of$ 58, 000 ) (Revenue $

C Yes ~ No

D Yes ~ No

PUBLICATIONS - RESEARCH, WRITING, AND DISTRIBUTION OF PUBLICATIONS ON PUBLIC POLICY ISSUES, IN PRINT AS WELL AS ONLINE. HEARTLAND PRODUCED SIX MONTHLY NEWSPAPERS (TWO OF THEM DIGITAL-ONLY) (BUDGET & TAX NEWS, ENVIRONMENT & CLIMATE NEWS, FIRE POLICY NEWS, HEALTH CARE NEWS, INFOTECH & TELECOM NEWS, AND SCHOOL REFORM NEWS); ONE PRINT NEWSLETTER (THE HEARTLANDER, RENAMED QPR AT THE END OF THE YEAR), FOUR EMAIL NEWSLETTERS (LAWSUIT ABUSE FORTNIGHTLY, CONSUMER POWER REPORT, NIPCC UPDATE, AND CLIMATE CHANGE WEEKLY); AND 11 POLICY BRIEFS.

4b (Code ) (Expenses $ 1, 318, 833 including grants of$ ) (Revenue $

PUBLIC RELATIONS - SEMINARS, EVENTS, SPEAKERS BUREAU, AND OTHER ACTIVITIES AIMED AT EDUCATING HEARTLAND MEMBERS AND THE GENERAL PUBLIC CONCERNING PUBLIC POLICY ISSUES. HEARTLAND STAFF EXHIBITED AT A DOZEN INDUSTRY TRADE SHOWS AND EVENTS FOR MEMBERS OF THE GENERAL PUBLIC, AND ITS SENIOR FELLOWS DELIVERED MORE THAN 160 SPEECHES TO AUDIENCES TOTALING 18,700 PEOPLE. HEARTLAND'S PUBLIC RELATIONS DEPARTMENT HOSTED A TWO-DAY CONFERENCE IN WASHINGTON, DC ADDRESSING THE TOPIC OF GLOBAL WARMING.

4c (Code ) (Expenses $ 6 81 , 8 3 2 including grants of $ ) (Revenue $

GOVERNMENT RELATIONS - PUBLICATIONS AND EVENTS GEARED TOWARD EDUCATING AND INFORMING LOCAL, STATE, AND NATIONAL ELECTED OFFICIALS ABOUT PUBLIC POLICY ISSUES. HEARTLAND EXHIBITED AT CONFERENCES SPONSORED BY THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL, NATIONAL CONFERENCE OF STATE LEGISLATURES, NATIONAL ASSOCIATION OF COUNTIES, AND OTHERS. IN ADDITION, 120 RESEARCH & COMMENTARY COLLECTIONS OF BACKGROUND READINGS ON EDUCATION, ENVIRONMENT, HEALTH CARE, INSURANCE, TOBACCO, AND WELFARE ISSUES WERE DISTRIBUTED BY EMAIL AND POSTED ON HEARTLAND'S WEB SITE. HEARTLAND'S GOVERNMENT RELATIONS DEPARTMENT HOSTED SEVERAL "CAPITOL FORUM" EVENTS IN STATES ACROSS THE COUNTRY AND A DAY-LONG CONFERENCE IN CHICAGO, THE EMERGING ISSUES FORUM, ADDRESSING PUBLIC POLICY ISSUES.

4d Other program services (Describe in Schedule O )

(Expenses $ including grants of $ ) (Revenue $ 4e Total program service expenses~ 4, 007, 985

DAA Form 990 (2011)

363309812 CJV<!0/2012 1 36 PM

I 'I

,F~rm990(2011l THE HEARTLAND INSTITUTE 36-3309812 Part IV' Checklist of Reau1red Schedules

1 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes,"

complete Schedule A

2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)?

3 Did the organization engage in direct or indirect political campaign act1v1ties on behalf of or in oppos1t1on to

candidates for public office? If "Yes," complete Schedule C, Part I

4 Section 501(c)(3) organizations. Did the organization engage in lobbying act1v1t1es, or have a section 501(h)

election in effect during the tax year? If ''Yes," complete Schedule C, Part II

5 Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues,

assessments, or similar amounts as defined in Revenue Procedure 98-19? If ''Yes," complete Schedule C,

Part Ill

6 Did the organization maintain any donor advised funds or any s1m1lar funds or accounts for which donors

have the right to provide advice on the d1stribut1on or investment of amounts in such funds or accounts? If

"Yes," complete Schedule D, Part I

7 Did the organization receive or hold a conservation easement, including easements to preserve open space.

the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II

8 Did the organization maintain collections of works of art, historical treasures, or other s1m1lar assets? If "Yes,"

complete Schedule D, Part Ill

9 Did the organization report an amount in Part X, line 21, serve as a custodian for amounts not listed in Part

X, or provide credit counseling, debt management, credit repair, or debt negot1at1on services? If "Yes,"

complete Schedule D Part IV

10 Did the organization, directly or through a related organization. hold assets in temporarily restricted

endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part V

11 If the organization's answer to any of the following questions 1s "Yes," then complete Schedule D, Parts VI,

VII, VIII, IX, or X as applicable

a Did the organization report an amount for land, buildings, and equipment in Part X, line 1 O? If ''Yes,"

complete Schedule D, Part VI

b Did the organization report an amount for mvestments--other securities in Part X, line 12 that 1s 5% or more

of its total assets reported in Part X, line 16? If ''Yes," complete Schedule D, Part VII

c Did the organization report an amount for investments-program related in Part X, line 13 that 1s 5% or more

of its total assets reported 1n Part X, line 16? If ''Yes," complete Schedule D, Part VIII

d Did the organization report an amount for other assets 1n Part X, line 15 that 1s 5% or more of its total assets

reported in Part X, line 16? If ''Yes," complete Schedule D, Part IX

e Did the organization report an amount for other liab1lit1es in Part X, line 25? If "Yes," complete Schedule D, Part X

f Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses

the organization's liability for uncertain tax pos1t1ons under FIN 48 (ASC 740)? If ''Yes," complete Schedule D, Part X

12a Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete

Schedule D, Parts XI, XII, and XIII

b Was the organization included 1n consolidated, independent audited financial statements for the tax year? If ''Yes," and 1f

the organization answered "No" to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional

13 Is the organization a school described 1n section 170(b)(1 )(A)(11)? If "Yes," complete Schedule E

14a Did the organization maintain an office, employees, or agents outside of the United States?

b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmakmg,

fundra1s1ng, business, investment, and program service activ1t1es outside the United States, or aggregate

foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV

15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any

organization or entity located outside the United States? If "Yes," complete Schedule F, Parts II and IV

16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance

to md1v1duals located outside the United States? If "Yes," complete Schedule F, Parts Ill and IV

17 Did the organization report a total of more than $15,000 of expenses for professional fundra1smg services on

Part IX, column (A), Imes 6 and 11e? If "Yes," complete Schedule G, Part I (see instructions)

18 Did the organization report more than $15,000 total of fundra1smg event gross income and contributions on

Part VIII, Imes 1c and Sa? If ''Yes," complete Schedule G, Part II

19 Did the organization report more than $15,000 of gross income from gaming act1v1t1es on Part VIII, line 9a?

If ''Yes," complete Schedule G, Part Ill

20a Did the organization operate one or more hospital fac11it1es? If "Yes," complete Schedule H

b If "Yes" to line 20a did the oraanizat1on attach a coov of its audited financial statements to this return?

DAA

Page 3

Yes No

1 x 2 x

3 x

4 x

5 x

6 x

7 x

8 x

9 x

10 x

11a x

11b x

11c x

11d x 11e x

11f x

12a x

12b x 13 x 14a x

14b x

15 x

16 x

17 x

18 x

19 x 20a x 20b

Form 990 (2011)

363309812 o,;;120/2012 1 36 PM

•, I ,Form 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 4 , Part IV! Checklist of ReQuired Schedules (continued)

Yes No

21 Did the organization report more than $5,000 of grants and other assistance to any government or organization

1n the United States on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II 21 x 22 Did the organization report more than $5,000 of grants and other assistance to md1v1duals in the United States

on Part IX, column (A), line 2? If ''Yes," complete Schedule I, Parts I and Ill 22 x 23 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the

organization's current and former officers, directors, trustees, key employees. and highest compensated

employees? If ''Yes," complete Schedule J 23 x 24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than

$100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes," answer Imes 24b

through 24d and complete Schedule K If "No," go to line 25 24a x b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? 24b NIA c Did the organization maintain an escrow account other than a refunding escrow at any time during the year

"'IA to defease any tax-exempt bonds? 24c

d Did the organization act as an "on behalf of' issuer for bonds outstanding at any time during the year? 24d NIA 25a Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction

with a disqualified person during the year? If "Yes," complete Schedule L, Part I 25a x b Is the organization aware that 11 engaged in an excess benefit transaction with a disqualified person in a prior

year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ?

If ''Yes," complete Schedule L, Part I 25b x 26 Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or

d1squalif1ed person outstanding as of the end of the organization's tax year? If "Yes," complete Schedule L, Part II 26 x 27 Did the organization provide a grant or other assistance to an officer, director, trustee. key employee,

substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled

entity or family member of any of these persons? If "Yes," complete Schedule L, Part Ill 27 x 28 Was the organization a party to a business transaction with one of the following parties (see Schedule L,

Part IV instructions for applicable filing thresholds, cond1t1ons, and exceptions)

a A current or former officer, director, trustee, or key employee? If ''Yes," complete Schedule L, Part IV 28a x b A family member of a current or former officer, director, trustee, or key employee? If ''Yes," complete

Schedule L, Part IV 28b x c An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof)

was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV 28c x 29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M 29 x 30 Did the organization receive contributions of art, historical treasures, or other s1m1lar assets, or qualified

conservation contributions? If "Yes," complete Schedule M 30 x 31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N,

Part I 31 x 32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If ''Yes,"

complete Schedule N, Part II 32 x 33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations

sections 301 7701-2 and 301 7701-3? lf"Yes," complete Schedule R, Part I 33 x 34 Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Parts II, Ill,

IV, and V, line 1 34 x 35a Did the organization have a controlled entity within the meaning of section 512(b)(13)? 35a x

b Did the organization receive any payment from or engage in any transaction with a controlled entity within the

meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 35b x 36 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable

related organization? If "Yes," complete Schedule R, Part V, line 2 36 x 37 Did the organization conduct more than 5% of its act1v1t1es through an entity that 1s not a related organization

and that 1s treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R,

Part VI 37 x 38 Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and

19? Note. All Form 990 filers are reau1red to complete Schedule O 38 x Form 990(2011)

DAA

363309812 00/20/2012 1 36 PM . , F~rm 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 5

~artV Statements Regarding Other IRS Filings and Tax Compliance Check 1f Schedule O contains a resoonse to anv auest1on in this Part V I

I 1a I Yes No

1a Enter the number reported ,n Box 3 of Form 1096 Enter -0- 1f not applicable 58 b Enter the number of Forms W-2G included ,n line 1a Enter -0- 1f not applicable 1b 0 c Did the orgarnzat1on comply with backup withholding rules for reportable payments to vendors and

reportable gaming (gambling) winnings to prize winners? 1c x 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax I 2a I Statements, filed for the calendar year ending with or w1th1n the year covered by this return 32

b If at least one 1s reported on line 2a, did the orgarnzat1on file all required federal employment tax returns? 2b x Note. If the sum of lines 1 a and 2a 1s greater than 250, you may be required toe-file (see 1nstruct1ons)

3a Did the orgarnzat1on have unrelated business gross income of $1,000 or more during the year? 3a x b If "Yes," has 11 filed a Form 990-T for this year? If "No," provide an explanation ,n Schedule O 3b x

4a At any time during the calendar year, did the organization have an interest in, or a signature or other authority

over, a financial account ,n a foreign country (such as a bank account, securities account, or other financial

account)? 4a x b If "Yes," enter the name of the foreign country Iii-

See instructions for filing requirements for Form TD F 90-22 1, Report of Foreign Bank and Financial Accounts

Sa Was the orgarnzat1on a party to a proh1b1ted tax shelter transaction at any time during the tax year? Sa x b Did any taxable party notify the organization that 11 was or 1s a party to a proh1b1ted tax shelter transaction? Sb x c If "Yes" to line 5a or 5b, did the orgarnzat1on file Form 8886-T? Sc

Ga Does the orgarnzat1on have annual gross receipts that are normally greater than $100,000, and did the

orgarnzat1on solicit any contributions that were not tax deductible? Ga x b If "Yes," did the organ1zat1on include with every solic1tallon an express statement that such contributions or NM gifts were not tax deductible? Gb

7 Organizations that may receive deductible contributions under section 170(c).

a Did the organization receive a payment ,n excess of $75 made partly as a contribution and partly for goods

and services provided to the payer? 7a NIA b If "Yes," did the organization notify the donor of the value of the goods or services provided? 7b NIA c Did the orgarnzat1on sell, exchange, or otherwise dispose of tangible personal property for which 1t was

required to file Form 8282?

I 1d I 7c Nl/'r

d If "Yes," indicate the number of Forms 8282 filed during the year

e Did the orgarnzat1on receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? 7e NIA f Did the orgarnzat1on, during the year, pay premiums, directly or indirectly, on a personal benefit contract? 7f tvll+

g If the organ1zat1on received a contribution of qualified intellectual property, did the orgarnzat1on file Form 8899 as required? 7a 11.11 ,A.

h If the orgarnzat1on received a contribution of cars, boats, airplanes, or other vehicles, did the orgarnzat1on file a Form 1098-C? 7h WlA 8 Sponsoring organizations maintaining donor advised funds and section S09(a)(3) supporting

organizations. Did the supporting orgamzat1on, or a donor advised fund maintained by a sponsoring

orgamzat1on, have excess business holdings at any time during the year? 8

9 Sponsoring organizations maintaining donor advised funds.

a Did the orgarnzat1on make any taxable d1stribut1ons under section 4966? 9a

b Did the orgarnzat1on make a d1stribut1on to a donor, donor advisor, or related person? 9b

10 Section S01(c)(7) organizations. Enter

a ln1t1at1on fees and capital contributions included on Part VIII, line 12 I 1oa I b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club fac11it1es 10b

11 Section S01(c)(12) organizations. Enter

a Gross income from members or shareholders I 11a

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

against amounts due or received from them ) 11b

NIA 12a Section 4947(a)(1) non-exempt charitable trusts. Is the orgarnzat1on filing Form 990 in lieu of Form 1041? 12a

b If "Yes," enter the amount of tax-exempt interest received or accrued during the year I 12b I 13 Section S01(c)(29) qualified nonprofit health insurance issuers.

a Is the orgarnzat1on licensed to issue qualified health plans 1n more than one state? 13a NIA Note. See the instructions for add1t1onal ,nformat1on the orgarnzat1on must report on Schedule O

b Enter the amount of reserves the orgarnzat1on 1s required to maintain by the states 1n which

the orgarnzat1on 1s licensed to issue qualified health plans I 13b I c Enter the amount of reserves on hand 13c

14a Did the organization receive any payments for indoor tanning services during the tax year? 14a x b If ''Yes" has 11 filed a Form 720 to reoort these oavments? If "No" orov1de an exolanallon in Schedule O 14b N~

DAA Form 990 (2011)

363309812 ~/20/2012 1 36 PM

' . ,F~rm 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 6

Part VI , Governance, Management, and Disclosure For each "Yes" response to Imes 2 through 7b below, and for a "No" response to hne 8a, 8b, or 1 Ob below, describe the circumstances, processes, or changes m Schedule O See instructions Check 1f Schedule O contains a response to any question m this Part VI ~

Section A Governma Bodv and Manaaement

1a Enter the number of voting members of the governing body at the end of the tax year

If there are material differences in voting rights among members of the governing body, or

1f the governing body delegated broad authority to an executive committee or s1m1lar

committee, explain in Schedule O

b Enter the number of voting members included in line 1 a, above, who are independent

2 Did any officer, director, trustee, or key employee have a family relat1onsh1p or a business relat1onsh1p with

any other officer, director, trustee, or key employee?

3 Did the organization delegate control over management duties customarily performed by or under the direct

supervision of officers, directors, or trustees, or key employees to a management company or other person?

4 Did the organization make any s1gnif1cant changes to its governing documents since the prior Form 990 was filed?

5 Did the organ1zat1on become aware during the year of a s1gn1ficant d1vers1on of the organization's assets?

6 Did the organization have members or stockholders?

7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint

one or more members of the governing body?

b Are any governance dec1s1ons of the organization reserved to (or subject to approval by) members,

stockholders, or persons other than the governing body?

Yes No

1a 13

1b 12

2 x

3 x 4 x 5 x 6 x

7a x

7b x 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following

a The governing body? Sa x b Each committee with authority to act on behalf of the governing body? Sb x

9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at

the oraanizatlon's ma1l1na address? If "Yes " orov1de the names and addresses 1n Schedule O 9 X Section B. Policies (This Section 8 reauests information about oohc1es not reauired bv the Internal Revenue Code.)

1 Oa Did the organization have local chapters, branches, or affiliates?

b If "Yes," did the organization have written policies and procedures governing the act1v1t1es of such chapters,

affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes?

11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form?

b Describe in Schedule O the process, 1f any, used by the organization to review this Form 990

12a Did the organization have a written conflict of interest policy? If "No," go to line 13

b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts?

c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes,"

describe in Schedule O how this was done

13 Did the organization have a written wh1stleblower policy?

14 Did the organization have a written document retention and destruction policy?

15 Did the process for determining compensation of the following persons include a review and approval by

independent persons, comparability data, and contemporaneous substant1at1on of the deliberation and dec1s1on?

a The organization's CEO, Executive Director, or top management official

b Other officers or key employees of the organization

If "Yes" to line 15a or 15b, describe the process in Schedule O (see 1nstruct1ons)

16a Did the organization invest in, contribute assets to, or part1c1pate 1n a Joint venture or s1m1lar arrangement

with a taxable entity during the year?

b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its

part1c1pat1on in 101nt venture arrangements under applicable federal tax law, and take steps to safeguard the

orqanizat1on's exemot status with respect to such arranqements?

Section C. Disclosure 17 List the states with which a copy of this Form 990 1s required to be filed ~ IL 18 Section 6104 requires an organization to make its Forms 1023 (or 1024 1f applicable), 990, and 990-T (Section 501 (c)(3)s only)

available for public inspection Indicate how you made these available Check all that apply

D Own website ~ Another's website ~ Upon request

19 Describe in Schedule O whether (and 1f so, how), the organization made its governing documents, conflict of interest policy,

and financial statements available to the public during the tax year

20 State the name, physical address, and telephone number of the person who possesses the books and records of the organization ~ THE HEARTLAND INSTITUTE ONE SOUTH WACKER #2740

CHICAGO IL 60606 DAA

Yes No

10a x

10b

11a x

12a x 12b x

12c x 13 x 14 x

15a x 15b x

16a x

16b

312-377-4000 Form 990 (2011)

363309812 ~0/2012 1 36 PM

•. l , Fbrm 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 7 ,_ ~art \{IL Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and

Independent Contractors Check 1f Schedule O contains a response to any question in this Part VII

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

1a Complete this table for all persons required to be listed Report compensation for the calendar year ending with or within the

organization's tax year

• List all of the organization's current officers, directors, trustees (whether 1nd1v1duals or organizations), regardless of amount of

compensation Enter -0- in columns (D), (E), and (F) 1f no compensation was paid

• List all of the organization's current key employees, 1f any See instructions for definition of "key employee "

• List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee)

who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the

organization and any related organizations

• List all of the organization's former officers, key employees, and highest compensated employees who received more than

$100,000 of reportable compensation from the organization and any related organizations

• List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the

organization, more than $10,000 of reportable compensation from the organization and any related organizations List persons in the following order 1nd1v1dual trustees or directors, inst1tut1onal trustees, officers, key employees, highest

compensated employees, and former such persons

n Check this box 1f neither the oraanizat1on nor an~ related oraan1zat1ons comoensated anv current officer director, or trustee

(A) (B) (C) (D) (E)

Name and Title Average Pos1t1on Reportable Reportable hours per ( do not check more lhan one compensation compensation from

week box, unless person 1s both an from related (describe officer and a direclor/trustee) the organizations

hours for Q::, 0 >< CD ::C .., organ1zat1on (W-2/1099-MISC) related c. 9- :!' <!> 3 u5 0 (W-2/1099-MISC) '< 3 :;;; !:: 0

CD "O er

orgarnzat1ons CD C. !!? ~ f! !!? ~~

3 ,n Schedule "O mg 0

0) 2 '< 3 CD !!i <!> "O

CD CD CD 5l

"' iD c.

(1)JOSEPH BAST

PRESIDENT 40.00 x x 153,988 (2)ROBERT LAMENDOIJl

DIRECTOR 0.00 x 0 (J)ROBERT BUFORD

DIRECTOR 0.00 x 0 (4)PAUL FISHER

VICE PRESIDENT 0.00 x x 0 (5)RICHARD H. COLLJ NS

DIRECTOR 0.00 x 0 (&)DAN HALES

DIRECTOR 0.00 x 0 (?)JEFF JUDSON

DIRECTOR 0.00 x 0 (B)JAMES JOHNSTON

FIRST VP, TREASURER 0.00 x x 0 (9)JEFFREY MADDEN

ASSISTANT SECRETARY 0.00 x x 0 (10)ARTHUR MARGULIS

DIRECTOR 0.00 x 0 (11)MIKE ROSE

DIRECTOR 0.00 x 0 (12) HERBERT WALBERG

CHAIRMAN 0.00 x x 0 (13) HARRI SON SCHMIT~ DIRECTOR 0.00 x 0 (14)

DAA

0

0

0

0

0

0

0

0

0

0

0

0

0

(F)

Est,maled amount of

other compensat1on

from the orgarnzat,on and related

organ1zat1ons

50,000

0

0

0

0

0

0

0

0

0

0

0

0

Form 990 (2011)

363309812 06/20/2012 1 36 PM

,Form 990l(2011l THE HEARTLAND INSTITUTE 36-3309812 Page 8 , , Part VII : Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)

(Al (Bl (Cl (DI (El (Fl

Name and title Average Pos1t1on Reportable Reportable Estimated hours per (do not check more than one compensation compensation from amount of

week box, unless person 1s both an from related other

(describe officer and a airector/trJstee) the organizations compensation

hours for organ1zat1on (W-2/1099-MISC) from the S? g_ :, 0 "' IO:I: ,,

(W-211099-MISC) related ~ :.'I a> .gco 0 organization ~~ '< 3 orgamzat1ons g ~ a> oi and related (D 0. 3 '<.,. ~

1n Schedule ~~ 0 "O .. - organ1zat1ons :, 0 "'8 0) 2 !!!. '< 3 2 ..

"O ~ .. (D

~ :, .. .,. .. rs 0.

(15)

(16)

(17)

(18)

(19)

(20)

(21)

(22)

(23)

(24)

(25)

1b Sub-total ~ 153,988 50,000 c Total from continuation sheets to Part VII, Section A ~

d Total (add lines 1b and 1c) ~ 153,988 50,000 2 Total number of 1nd1v1duals (including but not limited to those listed above) who received more than $100,000 in

reoortable compensation from the oraamzat1on ~ 1 Yes No

3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1 a? If "Yes," complete Schedule J for such ind1v1dual 3 x

4 For any 1nd1v1dual listed on line 1a, 1s the sum of reportable compensation and other compensation from the organ1zat1on and related organizations greater than $150,000? If "Yes," complete Schedule J for such ind1v1dual 4 x

5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or ind1v1dual for services rendered to the oraamzat1on? If "Yes • comolete Schedule J for such oerson 5 x

Section B. Independent Contractors

1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of comoensat1on from the oraamzat1on Report compensation for the calendar year endinQ with or within the orQamzat1on's tax year

(A) Name and business address

(B) Descnot1on of services

(C) Comtiensat1on

2 Total number of independent contractors (including but not limited to those listed above) who , , ,,

received more than $100 000 of compensation from the orqamzat1on ~ 0 ;

DAA Form 990 (2011)

363309812 ~/2012012 1 36 PM

I, l , Form 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 9 , Part VIII Statement of Revenue ' ' (A) (B) (C) (D) i Total revenue Related or Unrelated Revenue

'

'' ''. ; exempt business excluded from tax

i function revenue under sections '. revenue 512, 513, or 514

J!IJ!I 1a Federated campaigns 1a c: c: nl :I

b Membership dues 1b ... 0

~E c Fundra1smg events 1c :!~ ·- nl d Related organizations 1d <!>-ciE e Government grants (contnbut1ons) 1e c:·-oll> f All other contnbubons, gifts. grants, __ ._ -Cl) :::l.c and s1m1lar amounts not included above 1f 4,524,164 .o-:so

9 Noncash contnbubons included m Imes 1 a-11 $ 59,908 ' c:-c -O c: h Total. Add Imes 1a-1f ... 4 524,164 Uni '

Cl) Busn Code ::, ,,, .... -- .. ,, . ' "' ~ ..... h .. c Cl) 2a OTHER EVENTS 69,657 69,657 > Cl)

D::: b PREMIUMS 16,747 16,747 Cl) u c PUBLICATIONS/RESEARCH 4,418 4,418 -~ Cl) d U)

E e E Cl) f All other program service revenue e a.. g Total. Add lines 2a-2f ... 90,822

3 Investment income (including d1v1dends, interest,

and other s1m1lar amounts) ... 1,681 1,681 4 Income from investment of tax-exempt bond proceeds ... 5 Royalties ...

(1) Real (11) Personal

6a Gross rents .

b Less rental exps -c Rental me or (loss)

d Net rental income or <loss) ... 7a Gross amount from (t) Secunt,es (tt)Other

sales of assets other than mventor1

b Less cost or other

basis & sales exps 11,555 c Gain or (loss) -11,555 d Net gain or (loss) ... -11, 555 -11,555

Cl) Sa Gross income from fundra1sing events :I

(not including $ c: Cl) > of contnbut1ons reported on line 1c) Cl)

D::: See Part IV, line 18 74,234 ... a

Cl) .c b Less direct expenses b 113,831 -0

Net income or (loss) from fundra1s1ng events ... -39,597 c

9a Gross income from gaming act1v1t1es

See Part IV, line 19 a

b Less direct expenses b

c Net income or (loss) from gaming act1v1t1es ... 10a Gross sales of inventory, less

returns and allowances a

b Less cost of goods sold b "

c Net income or <loss) from sales of mventorv ... Miscellaneous Revenue Busn Code

11a ADVERTISING INCOME 511110 8,116 8,116 b

c

d All other revenue

e Total. Add Imes 11a-11d ... 8,116 t .. ,: /: "

12 Total revenue. See instructions ... 4 573,631 80.948 8,116 0 Form 990 (2011)

OAA

363309812 00/20/20121 36 PM • I

• Form 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 ; ,Part IX , Statement of Functional Expenses Section 501(c)(3) and 501(c)(4) organizations must complete all columns All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D)

Check 1f Schedule O contains a response to any question in this Part IX

Do not include amounts reported on lines Sb, (A) (B) (C) Total expenses Program service Management and

7b Sb 9b and 10b of Part VIII. expenses general expenses

1 Grants and other assistance to governments and

organizations in the U S See Part IV, line 21

2 Grants and other assistance to md1v1duals in

the U S See Part IV, line 22

3 Grants and other assistance to governments,

organizations, and 1nd1v1duals outside the

US See Part IV, Imes 15 and 16 58 000 58.000 4 Benefits paid to or for members

5 Compensation of current officers, directors,

trustees, and key employees

6 Compensation not included above, to disqualified

persons (as defined under section 4958(1)(1)) and

persons described in section 4958(c)(3)(B)

7 Other salaries and wages 1.766.976 1 102.338 387.558 8 Pension plan accruals and contributions (include

section 401(k) and 403(b) employer contributions)

9 Other employee benefits 107.128 67.244 25,232 10 Payroll taxes 130,794 81,307 29,923 11 Fees for services (non-employees)

a Management

b Legal

c Accounting 88,261 54.667 17,992 d Lobbying

e Professional fundra1sing services See Part IV, line 17

f Investment management fees

g Other 1,170,960 1,041,204 35,523 12 Advertising and promotion 52,594 51.224 1.370 13 Office expenses 24,475 18.292 2,452 14 Information technology 113,233 113,233 15 Royalties

16 Occupancy 240,795 152,654 37,256 17 Travel 300,628 259.147 1,164 18 Payments of travel or entertainment expenses

for any federal, state, or local public officials

19 Conferences, conventions, and meetings 196.549 159.658 609 20 Interest 2,269 2.269 21 Payments to affiliates

22 Deprec1at1on, depletion, and amort1zat1on 16,994 10,196 3.399 23 Insurance

24 Other expenses Itemize expenses not covered

above (List miscellaneous expenses in line 24e If

line 24e amount exceeds 10% of line 25, column

(A) amount, list line 24e expenses on Schedule O )

a PRINTING AND PUBLICATIONS 256,797 245.580 321 b POSTAGE AND SHIPPING 252.269 229.566 4 434 c NEWSWIRE AND CLIPPING 231.318 231 318 d EQUIP RENTAL AND MA.INT. 80,775 48.465 16.155 e All other expenses 114.062 83 892 13,629

25 Total functional exoenses Add Imes 1 throuah 24e 5.204.877 4,007 985 579,286 26 Joint costs. Complete this line only 1f the

organization reported in column (B) Joint costs from a combined educational campaign and fundra1sing solic1tat1on Check here ~ D If followina SOP 98-2 IASC 958-720)

DAA

Page 10

' (0)

Fundra1smg expenses

~

277,080

14,652 19,564

15,602

94,233

3,731

50,885 40,317

36,282

3,399

10,896 18,269

16,155 16,541

617,606

Form 990 (2011)

363309812 0'3/20/2012 1 36 PM

t i , Form 990 (2011) THE HEARTLAND INSTITUTE 36-3309812 Page 11 , Part X Balance Sheet

(A) (B) Beginning of year End of year

1 Cash-non-interest bearing 536,560 1 129,091 2 Savings and temporary cash investments 2

3 Pledges and grants receivable, net 3

4 Accounts receivable, net 4

5 Receivables from current and former officers, directors, trustees, key

employees, and highest compensated employees Complete Part II of

Schedule L 5

6 Receivables from other disqualified persons (as defined under section

4958(f)(1)), persons described m section 4958(c)(3)(8), and contributing

employers and sponsoring organizations of section 501(c)(9) voluntary

J!l employees' beneficiary organizations (see instructions) 6 Q)

7 Notes and loans receivable, net 7 Ill Ill < 8 Inventories for sale or use 8

9 Prepaid expenses and deferred charges 15.271 9 8,911 10a Land, buildings, and equipment cost or

other basis Complete Part VI of Schedule D 10a 198,235 b Less accumulated deprec1at1on 10b 169.217 50.459 10c 29,018

11 Investments-publicly traded securities 11

12 Investments-other securities See Part IV, line 11 12

13 Investments-program-related See Part IV, line 11 13

14 Intangible assets 14

15 Other assets See Part IV, line 11 169,280 15 163,473 16 Total assets. Add lines 1 throuah 15 (must eaual line 34) 771.570 16 330,493 17 Accounts payable and accrued expenses 142.477 17 238 453 18 Grants payable 18

19 Deferred revenue 19

20 Tax-exempt bond liab11it1es 20

21 Escrow or custodial account l1ab11ity Complete Part IV of Schedule D 21

Ill 22 Payables to current and former officers, directors, trustees, key

~ employees, highest compensated employees, and disqualified persons :c Complete Part II of Schedule L 22 50,000 cu :J 23 Secured mortgages and notes payable to unrelated third parties 23

24 Unsecured notes and loans payable to unrelated third parties 24

25 Other liab11it1es (including federal income tax, payables to related third

parties, and other liab11it1es not included on lines 17-24) Complete Part X

of Schedule D 155 369 25 199,562 26 Total liabilities. Add lines 17 throuoh 25 297,846 26 488,015

Organizations that follow SFAS 117, check here ~~ and complete Ill

lines 27 through 29, and lines 33 and 34. Q) 0 c: 27 Unrestricted net assets 443,148 27 -188,098 cu cii 28 Temporarily restricted net assets 30,576 28 30,576 m -0 29 Permanently restricted net assets 29 c: ::::,

Organizations that do not follow SFAS 117, check here ~o u. and ... 0 complete lines 30 through 34. J!l

30 Capital stock or trust principal, or current funds 30 Q) Ill Ill 31 Paid-in or capital surplus, or land, bu1ld1ng, or equipment fund 31 < a, 32 Retained earnings, endowment, accumulated income, or other funds 32 z

33 Total net assets or fund balances 473,724 33 -157,522 34 Total l1ab11it1es and net assets/fund balances 771.570 34 330,493

Form 990 (2011)

DAA

363309812 00/20/2012 1 36 PM ' I

· Form 990 (2011) THE HEARTLAND INSTITUTE _ ~art XI Reconciliation of Net Assets

36-3309812 Page 12

~---------C~h~e~c~k~1~f~S~c~h~ed~u=l~e~O~c~o~nt~a~1n~s~a;:;;...;..re~s~p~o~n~s~e~t~o~a~n~y~g~u~e~s~t1o~n~in..:....:.:.th~is::....:....P~a~rt~X~l-------------------------------------rJ_

1 Total revenue (must equal Part VIII, column (A), line 12) 1

2 Total expenses (must equal Part IX, column (A), line 25) 2

3 Revenue less expenses Subtract line 2 from line 1 3 4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) 4

5 Other changes in net assets or fund balances (explain in Schedule 0) 5 6 Net assets or fund balances at end of year Combine Imes 3, 4, and 5 (must equal Part X, line 33,

column (B)) 6

Part XII Financial Statements and Reporting Check if Schedule O contains a response to anv Question in this Part XII

1 Accounting method used to prepare the Form 990 O Cash ~ Accrual O Other _________ _

If the organization changed its method of accounting from a prior year or checked "Other," explain in

Schedule O

2a Were the organization's f1nanc1al statements compiled or reviewed by an independent accountant?

b Were the organization's financial statements audited by an independent accountant?

c If "Yes" to line 2a or 2b, does the organization have a committee that assumes respons1b11ity for oversight

of the audit, review or comp1lat1on of its f1nanc1al statements and selection of an independent accountant?

If the organization changed either its oversight process or selection process during the tax year, explain in

Schedule O

d If "Yes" to line 2a or 2b, check a box below to 1nd1cate whether the financial statements for the year were

issued on a separate basis, consolidated basis, or both

~ Separate basis O Consolidated basis O Both consolidated and separate basis

3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth 1n

the Single Audit Act and OMB Circular A-133?

b If "Yes," did the organ1zat1on undergo the required audit or audits? If the organization did not undergo the

required audit or audits explain why 1n Schedule O and describe anv steos taken to underao such audits

DAA

4,573,631 5,204,877

-631,246 473.724

-157,522

n Yes No

2a X 2b X

2c X

3a x

3b

Form 990 (2011)

363309812 00/20/2012 1 36 PM

' -'SCHEDULE A

(Form 990 or 990-EZ) Public Charity Status and Public Support

2011 OMB No 1545-0047

Department of the Treasury Internal Revenue Service

Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust. Ope~ t~ P~blic :

.... Attach to Form 990 or Form 990-EZ. .... See separate instructions. Inspection

Name of the orgamzat1on Employer ldenllficat1on number

THE HEARTLAND INSTITUTE 36-3309812 r,Part I Reason for Public Charity Status (All organizations must complete this part ) See instructions The organization 1s not a private foundation because 1t 1s (For Imes 1 through 11, check only one box)

1 ~ A church, convention of churches, or assoc1at1on of churches described 1n section 170(b)(1)(A)(i).

2 l A school described in section 170(b)(1 )(A)(ii). (Attach Schedule E )

3 lJJ A hospital or a cooperative hospital service organization described 1n section 170(b)(1)(A)(ili).

4 A medical research organization operated in con1unct1on with a hospital described 1n section 170(b)(1 )(A)(iii). Enter the hospital's name,

s D

~ B

city, and state

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substanllal part of its support from a governmental unit or from the general public

described 1n section 170(b)(1)(A)(vi). (Complete Part II)

8 D A community trust described in section 170(b)(1 )(A)(vi). (Complete Part II )

9 [!] An organization that normally receives (1) more than 33 1/3% of its support from contributions, membership fees, and gross

receipts from acllv1t1es related to its exempt funct1ons-sub1ect to certain exceptions, and (2) no more than 33 1/3% of its

support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses

acquired by the organization after June 30, 1975 See section 509(a)(2). (Complete Part Ill)

10 D An organization organized and operated exclusively to test for public safety See section 509(a)(4).

11 0 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the

purposes of one or more publicly supported organizations described 1n section 509(a)(1) or section 509(a)(2) See section

509(a)(3). Check the box that describes the type of supporting organization and complete Imes 11e through 11h

a D Type I b D Type II c D Type Ill-Functionally integrated d D Type Ill-Other

e D By checking this box, I certify that the organization 1s not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described 1n section 509(a)(1)

or section 509(a)(2)

If the organization received a written determination from the IRS that 111s a Type I, Type II, or Type Ill supporting organ1zat1on, check this box

g Smee August 17, 2006, has the organization accepted any gift or contribution from any of the

following persons?

D

(i) A person who directly or indirectly controls, either alone or together with persons described in (11) and

(111) below, the governing body of the supported organization?

Yes No

(ii) A family member of a person described 1n (1) above?

(iii) A 35% controlled entity of a person described 1n (1) or (11) above?

h Provide the followmo information about the supported oroanizat1on(s) (1) Name of supported (11) EIN (111) Type of organ1zat1on

organ1zat1on (descnbed on Imes 1-9

above or IRC section

(see instruct,ons))

(A)

(B)

(C)

(0)

(E)

,,~ , ,,,, '.,.:, ::---::' " ... ,~ ,,

..-..: ,,

Total ,, , ,, :' ~ , ,,,, ', , _f,,

For Paperwork Reduction Act Notice, see the Instructions for

Form 990 or 990-EZ.

DAA

',

(iv) Is the orgamzat1on (v) Did you notify (v1) Is the (vu) Amount of

in col (1) fisted in your the orgamzauon in orgamzat1on in col support

governing document? col (1) of your (i) organized in the support? US?

Yes No Yes No Yes No

, " ,,

f " ', ,, " ,,,

"'

Schedule A (Form 990 or 990-EZ) 2011

3063309812, 06(<!012012 1 36 PM

'ScheduleA(Form990or990-EZ)2011 THE HEARTLAND INSTITUTE 36-3309812 Page2

i Part II,_ Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only 1f you checked the box on line 5, 7, or 8 of Part I or 1f the organization failed to qualify under Part Ill If the organization fails to qualify under the tests listed below, please complete Part Ill )

s ection A. Public Suooort Calendar year (or fiscal year beginning in) ~ (a) 2007 (b)2008 (c) 2009 (d)2010 (e) 2011

1 Gifts, grants. contnbut1ons, and membership fees received (Do not include any "unusual grants")

2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf

3 The value of services or facilities furnished by a governmental unit to the organization without charge

4 Total. Add Imes 1 through 3

5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)

6 Public suooort. Subtract line 5 from line 4 Section B. Total Support Calendar year (or fiscal year beginning in) ~ (a) 2007 (b)2008 (c) 2009 (d) 2010 (e) 2011

7 Amounts from line 4

8 Gross income from interest, d1v1dends, payments received on securities loans, rents, royalties and income from s1m1lar sources

9 Net income from unrelated business act1v1t1es, whether or not the business 1s regularly earned on

10 Other income Do not include gain or loss from the sale of capital assets (Explain 1n Part IV )

11 Total support. Add lines 7 through 10

12 Gross receipts from related act1v1t1es, etc (see instructions) I 12

13 First five years. If the Form 990 1s for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3)

organization, check this box and stop here Section C. Computation of Public Support Percentage 14 Public support percentage for 2011 (line 6, column (f) d1v1ded by line 11, column (f))

15 Public support percentage from 2010 Schedule A, Part II, line 14

16a 33 1/3% support test-2011. If the organization did not check the box on line 13, and line 14 1s 33 1/3% or more, check this

box and stop here. The organization qualifies as a publicly supported organization

b 331/3% support test-2010. If the organization did not check a box on line 13 or 16a, and line 15 1s 33 1/3% or more,

check this box and stop here. The organization qualifies as a publicly supported organization

17a 10%-facts-and-circumstances test-2011. lfthe organization did not check a box on line 13, 16a, or 16b, and line 14 1s

10% or more, and 1f the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain m

Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly supported

organization

b 10%-facts-and-circumstances test-2010. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line

15 1s 10% or more, and 1f the organization meets the "facts-and-circumstances" test, check this box and stop here.

Explain m Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly

supported organization

18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see

instructions

14

15

(f) Total

(f) Total

%

%

Schedule A (Form 990 or 990-EZ) 2011

DAA

363309812 06/2012012 1 36 PM

. , : -Schedule A (Form 990 or 990-EZ) 2011 THE HEARTLAND INSTITUTE 36-3309812 Page 3

· ,P~rtlR, Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I or 1f the organization failed to qualify under Part II If the organization fails to qualify under the tests listed below, please complete Part II )

Section A Public Support Calendar year (or fiscal year beginning in) ~

1 Gifts, grants, contnbut1ons, and membership fees received (Do not include any 'unusual grants')

2 Gross receipts from adm1ss1ons, merchandise sold or services performed, or fac111t1es furnished m any act1v1ty that 1s related to the organization's tax-exempt purpose

3 Gross receipts from act1v1t1es that are not an unrelated trade or business under section 513

4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf

5 The value of services or fac11it1es furnished by a governmental unit to the organization without charge

6 Total. Add lines 1 through 5

7a Amounts included on lines 1, 2, and 3 received from d1squalif1ed persons

b Amounts included on Imes 2 and 3 received from other than d1squallf1ed persons that exceed the greater of $5,000 or 1 % of the amount on lme 13 for the year

c Add lines 7a and 7b

8 Public support (Subtract line 7c from line 6)

Section B Total Suooort Calendar year (or fiscal year beginning in) ~

9 Amounts from line 6

10a Gross income from interest, d1v1dends, payments received on securities loans, rents, royalties and income from s1m1lar sources

b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975

c Add lines 10a and 10b

11 Net income from unrelated business act1v1t1es not included m lme 10b, whether or not the business 1s regularly earned on

12 Other income Do not include gain or loss from the sale of capital assets (Explain in Part IV )

13 Total support. (Add lines 9, 10c, 11,

and 12)

(a) 2007

4 993 162

189 135

5 182 297

3 625 937

3, 625 937

(a) 2007

5 182 297

34,587

34,587

5 216 884

(b)2008 (c) 2009 (d)2010

7 659 414 6,499 687 5 973 500

151 709 209 487 140 864

7 811 123 6 709 174 6 114 364

5 610 000 4 170 159 3 398 000

5,610,000 4,170,159 3,398,000

(b) 2008 (c) 2009 (d) 2010

7 811,123 6,709 174 6 114 364

22,661 58,969 8,537

22,661 58,969 8,537

7 833 784 6 768 143 6 122 901

14 First five years. If the Form 990 1s for the organization's first, second, third, fourth, or fifth tax year as a section 501 (c)(3) organ1zat1on, check this box and stop here

Section C. Com utation of Public Su ort Percenta e 15 Public support percentage for 2011 (line 8, column (f) d1v1ded by line 13, column (f))

16 Public su ort ercenta e from 2010 Schedule A, Part 111, line 15

Section D. Com utation of Investment Income Percenta e 17 Investment income percentage for 2011 (line 10c, column (f) d1v1ded by line 13, column (f))

18 Investment income percentage from 2010 Schedule A, Part Ill, line 17

(e) 2011

4 538 537

98 885

4 637 422

1 777 600

1,777,600

(e) 2011

4 637 422

1,681

1,681

4 639 103

15

16

17

18

19a 33 1/3% support tests-2011. If the organization did not check the box on line 14, and line 15 1s more than 33 1/3%, and line

17 1s not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization

b 33 1/3% support tests-2010. If the organization did not check a box on line 14 or line 19a, and line 16 1s more than 33 1/3%, and

(f) Total

29 664 300

790 080

30 454 380

18 581 696

18,581,696

11,872,684

(f) Total

30,454 380

126,435

126,435

30 580 815

38.82 %

35.59%

%

1%

line 18 1s not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ~ D 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see 1nstruct1ons ~ []

Schedule A (Form 990 or 990-EZ) 2011 DAA

363309812 Oo/20/2012 1 36 PM I

' , ! .ScheduleA(Form990or990-EZ)2011 THE HEARTLAND INSTITUTE 36-3309812

:_Parflv_i Supplemental Information. Complete this part to provide the explanations required by Part II, hne 10, Part II, line 17a or 17b, and Part Ill, line 12 Also complete this part for any add1t1onal information (See instructions)

Page 4

DAA Schedule A (Form 990 or 990-EZ) 2011

363309812 06/20/2012 1 36 PM

.. , · SCHEDULE C Political Campaign and Lobbying Activities OMB No 1545--0047

(Form 990 or 990-EZ) For Organizations Exempt From Income Tax Under section 501(c) and section 527 2011 Ill> Complete if the organization is described below. Ill> Attach to Form 990 or Form 990-EZ. Open to Public

Department of the Treasury I t• Internal Revenue Service Ill> See separate instructions. , nspec IOn If the organization answered "Yes" to Form 990, Part IV, line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then

• Section 501 (c)(3) organrzatrons Complete Parts 1-A and B Do not complete Part 1-C

• Section 501 (c) (other than section 501 (c)(3)) organrzatrons Complete Parts I-A and C below Do not complete Part 1-B

• Section 527 organrzatrons Complete Part I-A only

If the organization answered "Yes" to Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then

• Section 501 (c)(3) organrzatrons that have filed Form 5768 (electron under section 501 (h)) Complete Part II-A Do not complete Part 11-B

• Section 501 (c)(3) organrzatrons that have NOT filed Form 5768 (electron under section 501 (h)) Complete Part 11-B Do not complete Part II-A

If the organization answered "Yes" to Form 990, Part IV, line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35c (Proxy Tax), then

• Section 501(c)(4), (5), or (6) organrzatrons Complete Part Ill

Name of orgarnzat1on Employer 1dent1ficabon number

THE HEARTLAND INSTITUTE 36-3309812 . Part I-A Complete if the organization is exempt under section 501 (c) or is a section 527 organization .

1 Provide a description of the organrzatron's direct and 1nd1rect political campaign act1v1t1es in Part IV

2 Polrtrcal expenditures

3 Volunteer hours

Part 1-8 Complete if the organization is exempt under section 501 (c)(3). 1 Enter the amount of any excise tax incurred by the organrzatron under section 4955

2 Enter the amount of any excise tax incurred by organrzatron managers under section 4955

3 If the organ1zat1on incurred a section 4955 tax, drd rt file Form 4720 for !hrs year?

4a Was a correction made?

b If "Yes" describe in Part IV

.... $

.... $

.... $

Part 1-C Complete if the organization is exempt under section 501 (c), except section 501(c)(3). 1 Enter the amount directly expended by the filing organrzatron for section 527 exempt function

act1v1t1es

2 Enter the amount of the filing organrzatron's funds contributed to other organrzatrons for section

527 exempt function act1v1t1es

3 Total exempt function expenditures Add lines 1 and 2 Enter here and on Form 1120-POL,

line 17b

4 Ord the filing organrzatron file Form 1120-POL for !hrs year?

.... $

.... $

.... $

5 Enter the names, addresses and employer 1dent1f1cat1on number (EIN) of all section 527 i,ol1t1cal organrzatrons to which the filing

organrzatron made payments For each organrzatron listed, enter the amount paid from the filing organrzatron's funds Also enter

the amount of political contributions received that were promptly and directly delivered to a separate politrcal organrzatron, such

as a seoarate seareaated fund or a oolitrcal action committee (PAC) If add1t1onal soace rs needed, orovrde 1nformat1on in Part IV

(a) Name (b) Address (c) EIN (d) Amount paid from

f1hng orgarnzahon's

funds If none, enter --0-

(1)

(2)

(3)

(4)

(5)

(6)

[]Yes D No

OYes D No

0Yes D No

(e) Amount of poht1cal

contributions received and

promptly and directly

delivered to a separate

pohllcal orgamzat1on If

none, enter -0-

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. Schedule C (Form 990 or 990-EZ) 2011

DAA

363309812 06/2012012 1 36 PM

• 'Schedule C (Form 990 or 990-EZ) 2011 THE HEARTLAND INSTITUTE 3 6-330 9812 Page 2 ,.P~r:tJI,;~ __ ; Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under

section 501(h)). A Check ~ D 1f the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's

name, address, EIN, expenses, and share of excess lobbying expenditures) B Check ~ n 1f the filing organization checked box A and "limited control" provisions apply

Limits on Lobbying Expenditures (a) F,hng (bl Affiliated

(The term "expenditures" means amounts oaid or incurred.) organ1zat1on's totals group totals

1a Total lobbying expenditures to influence public opinion (grass roots lobbying)

b Total lobbying expenditures to influence a leg1slal!ve body (direct lobbying) 464 c Total lobbying expenditures (add Imes 1a and 1b) 464 d Other exempt purpose expenditures 5,318,243 e Total exempt purpose expenditures (add Imes 1c and 1d) 5.318.707 f Lobbying nontaxable amount Enter the amount from the following table in both

columns 415.935 If the amount on line 1e, column la) or (bl 1s: The lobbying nontaxable amount 1s

Not over $500,000 20% of the amount on line 1 e

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

Over $1,500,000 but not over $17,000,000 $225,000 olus 5% of lhe excess over $1,500,000

Over $17,000,000 $1,000,000

g Grassroots nontaxable amount (enter 25% of line 1f) 103,984 h Subtract line 1 g from line 1 a If zero or less, enter -0- 0 i Subtract line 1 f from line 1 c If zero or less, enter -0- 0

If there 1s an amount other than zero on either line 1 h or line 11, did the organization file Form 4720

reporting section 4911 tax for this year? nves n No

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five

columns below. See the instructions for lines 2a through 2f on page 4.)

0 ,vma L bb. E xoenditures Durina 4-y ear A veraaina Period

Calendar year (or fiscal year (a) 2008 (b)2009 (c) 2010 (d) 2011 beginning in)

2a Lobbying nontaxable amount 415,935 b Lobbying ceiling amount

(150% of line 2a, column(e))

c Total lobbying expenditures 464

d Grassroots nontaxable amount 103,984 e Grassroots ceiling amount

1150% of line 2d, column le\\

f Grassroots lobbying expenditures

(e)Total

415,935

623,903

464

103,984

155,976

Schedule C (Form 990 or 990-EZ) 2011

DAA

363309812 00/20/2012 1 36 PM

' " 'ScheduleC(Form990or990-EZ)2011 THE HEARTLAND INSTITUTE 36-3309812 Page 3

Part 11-B) Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

(a) (b) For each "Yes" response to Imes 1 a through 11 below, provide in Part IV a detailed description of the lobbying activity Yes No Amount

1 During the year, did the filing organization attempt to influence foreign, national, state or local

leg1slat1on, mcludmg any attempt to influence public opinion on a leg1slat1ve matter or

referendum, through the use of

a Volunteers?

b Paid staff or management (include compensation m expenses reported on Imes 1 c through 11)?

c Media advertisements?

d Mailings to members, legislators, or the public?

e Publications, or published or broadcast statements?

f Grants to other organizations for lobbying purposes?

g Direct contact with legislators, their staffs, government off1c1als, or a leg1slat1ve body?

h Rallies, demonstrations, seminars. conventions, speeches, lectures, or any s1m1lar means?

i Other activ1ties?

j Total Add Imes 1 c through 11

2a Did the activ1t1es 1n line 1 cause the organ1zat1on to be not described 1n section 501 (c)(3)?

b If "Yes," enter the amount of any tax incurred under section 4912

c If "Yes," enter the amount of any tax incurred by organization managers under section 4912

d If the filmq orqamzat1on incurred a section 4912 tax did 11 file Form 4720 for this vear?

Part Ill-A Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

1 Were substantially all (90% or more) dues received nondeductible by members? 1

2 Did the organization make only in-house lobbying expenditures of $2,000 or less? 2

3 Did the oraanizat1on aaree to carrv over lobbvma and ool1t1cal exoend1tures from the orior vear? 3

Part 111-B Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part Ill-A, lines 1 and 2, are answered "No" OR (b) if Part Ill-A, line 3, is answered "Yes."

1 Dues, assessments and s1m1lar amounts from members 1

2 Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of

political expenses for which the section 527(f) tax was paid).

a Current year 2a

b Carryover from last year 2b

c Total 2c

3 Aggregate amount reported m section 6033(e)(1 )(A) notices of nondeductible section 162(e) dues 3

4 If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the

excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying

and political expenditure next year? 4

5 Taxable amount of lobbv1na and oolit1cal exoend1tures (see 1nstruct1ons\ 5

Part IV Supplemental Information Complete this part to provide the descriptions required for Part I-A, line 1, Part 1-B, line 4, Part 1-C, lme 5, Part II-A. and Part 11-B, lme

1 Also, complete this part for any add1t1onal information

SCHEDULE C, PART II-A, EXPLANATION OF FOUR YEAR AVERAGING

THE HEARTLAND INSTITUTE FILED THE SECTION SOl(H) ELECTION IN LATE 2011.

THIS WAS THE FIRST TIME THE HEARTLAND INSTITUTE HAS HAD SCHEDULE C

EXPENSES.

No

DM Schedule C (Form 990 or 990-EZ} 2011

363309812 06/20/2012 1 36 PM

r •ScheduleC(Form990or990-EZ)2011 THE HEARTLAND INSTITUTE 36-3309812 Page4

' 'Part IV , Supplemental Information (continued)

Schedule C (Form 990 or 990-EZ) 2011

DAA

36330981 ~ ~/20/2012 1 36 PM ', . 'SCHEDULED

(Form 990)

Department of the Treasury Internal Revenue Service

Supplemental Financial Statements .... Complete if the organization answered "Yes," to Form 990,

Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. .... Attach to Form 990 ..... See separate instructions.

OMB No 1545-0047

2011 Open to Public, , Inspection

Name of the organ,zat,on Employer 1denllficallon number

THE HEARTLAND INSTITUTE 36-3309812 Part I Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete 1f the

organization answered "Yes" to Form 990, Part IV, line 6 (a) Donor advised funds (b) Funds and other accounts

1 Total number at end of year

2 Aggregate contributions to (during year)

3 Aggregate grants from (during year)

4 Aggregate value at end of year

5 Did the organizatton inform all donors and donor advisors in writing that the assets held in donor advised

funds are the organizalton's property, subject to the organization's exclusive legal control?

6 Did the organization inform all grantees, donors, and donor advisors 1n writing that grant funds can be used

only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose

conferring 1mperm1ss1ble private benefit?

D Yes D No

n Yes n No

Part II Conservation Easements. Complete 1f the organization answered "Yes" to Form 990, Part IV, line 7 Purpose(s) of conservation easements held by the organization (check all that apply)

D Preservation of land for public use (e g , recreation or education) D Preservation of an historically important land area

D Protection of natural habitat D Preservation of a certified historic structure

D Preservation of open space

2 Complete Imes 2a through 2d 1f the organization held a qualified conservation contribut1on in the form of a conservation easement on the last day of the tax year

Held at the End of the Tax Year

a Total number of conservation easements

b Total acreage restricted by conservation easements

c Number of conservation easements on a certified historic structure included in (a)

d Number of conservation easements included in (c) acquired after 8/17/06, and not on a

historic structure listed 1n the National Register

2a

2b

2c

2d

3 Number of conservation easements mod1f1ed, transferred, released, extinguished, or terminated by the organization during the

tax year ....

4 Number of states where property subject to conservation easement 1s located ....

5 Does the organization have a written policy regarding the periodic monitoring, mspect1on, handling of

v1olat1ons, and enforcement of the conservation easements 11 holds?

6 Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year

.... 7 Amount of expenses incurred tn monitoring, inspecting, and enforcing conservation easements during the year

.... $

8 Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(8)

(1) and section 170(h)(4)(8)(11)?

9 In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, 1f applicable, the text of the footnote to the organization's financial statements that describes the

organization's accounting for conservation easements

Part Ill Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete 1f the organization answered "Yes" to Form 990, Part IV, lme 8

1a If the organization elected, as permitted under SFAS 116 (ASC 958), not to report tn its revenue statement and balance sheet works of art, historical treasures, or other s1m1lar assets held for public exh1b11ton, education, or research 1n furtherance of

public service, provide, in Part XIV, the text of the footnote to its financial statements that describes these items

b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet

works of art, historical treasures, or other s1m1lar assets held for public exh1b1t1on, education, or research in furtherance of

public service, provide the following amounts relating to these items

(i) Revenues included tn Form 990, Part VIII, line 1

(ii) Assets included tn Form 990, Part X

2 If the organization received or held works of art, historical treasures, or other s1m1lar assets for financial gain, provide the

following amounts required to be reported under SFAS 116 (ASC 958) relating to these items

a Revenues included in Form 990, Part VIII, line 1

b Assets included in Form 990 Part X

D Yes D No

D Yes D No

For Paperwork Reduction Act Notice, see the Instructions for Form 990. DAA

Schedule D (Form 990) 2011

363309812 06/20/2012 1 36 PM ) ' .,

, ScheduleD(Form990)2011 THE HEARTLAND INSTITUTE 36-3309812 Page2

,· Part Ill , Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) 3 Using the organ1zat1on's acqu1s1t1on, accession, and other records, check any of the following that are a significant use of its

collection items (check all that apply)

a D Public exh1b1t1on b Scholarly research

c Preservation for future generations

d D Loan or exchange programs

e Other

4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose m Part

XIV

5 During the year, did the organization solicit or receive donations of art, historical treasures, or other s1m1lar

assets to be sold to raise funds rather than to be ma1nta1ned as part of the organization's collection? n Yes n No

Part IV , Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21.

1a Is the organization an agent, trustee, custodian or other 1ntermed1ary for contributions or other assets not

included on Form 990, Part X?

b If "Yes," explain the arrangement 1n Part XIV and complete the following table

c Beginning balance

d Add1t1ons during the year

e D1stribut1ons during the year

f Ending balance

2a Did the organization include an amount on Form 990, Part X, line 21?

b If "Yes," explain the arrangement m Part XIV

O Yes O No

Amount

1c

1d

1e

1f

O Yes O No

P V Ed F d C f art n owment un s. omplete I the orqan1zat1on answered "Yes" to Form 990, Part IV, line 1 O (a) Current year ( b) Prior year ( c) Two years back

1a Beginning of year balance

b Contributions

c Net investment earnings, gains, and

losses

d Grants or scholarships

e Other expenditures for facilities and

programs

f Adm1nistrat1ve expenses

g End of year balance

2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as

a Board designated or quasi-endowment • %

b Permanent endowment • %

c Temporarily restricted endowment • %

The percentages 1n Imes 2a, 2b, and 2c should equal 100%

3a Are there endowment funds not m the possession of the organization that are held and administered for the

organization by

(i) unrelated organizations

(ii) related organizations

b If "Yes" to 3a(11), are the related organizations listed as required on Schedule R?

4 Describe m Part XIV the intended uses of the organization's endowment funds

P rt VI L d B "Id" d E S F 9 a an .• UI mas an :au1cment. ee arm 90 Part X line 10 Description of property (a) Cost or other basis (b) Cost or other basis

(investment) (other)

1a Land

b Buildings

c Leasehold improvements

d Equipment 163,752 e Other 34,483

Total. Add Imes 1 a through 1e (Column (d) must equal Form 990, Part X, column (B), line 10(c))

DAA

(d) Three years back ( e) Four years back

Yes No

3a(i)

3a(iil

3b

(c) Accumulated (d) Book value

depreciation

149,159 14,593 20 058 14,425

• 29,018 Schedule D (Form 990) 2011

3633098q o1,/2Q/2012 1 36 PM I ,•

' Schedule D (Form 990) 2011 THE HEARTLAND INSTITUTE 36-3309812 Page 3 : Part VII , Investments-Other Securities. See Form 990, Part X, line 12

(a) Oescnpt1on of security or category (b) Book value (c) Method of valuation

(1nclud1ng name of security) Cost or end-of-year market value

(1) Financial derivatives

(2) Closely-held equity interests

(3) Other

(A)

(B)

(C)

(D)

(E)

(F)

(G)

(H)

(I)

Total. (Column (bl must equal Form 990, Part X, col (B) line 12) .... P rt VIII a nves mens-t t p roe1ram eae ee RltdS F orm . a '

990 P rt X I me 13 (a) Description of investment type (b) Book value (c) Method of valuation

Cost or end-of-year market value

(1)

(2)

(3)

(4)

(5)

(6)

(7) (8) (9)

(10)

Total. (Column (bl must equal Form 990, Part X, col (B) line 13) .... Part IX Other Assets. See Form 990, Part X, line 15

(a) Descnpt1on (b) Book value

(1) DEFERRED COMPENSATION 149,562 (2) SECURITY DEPOSITS 13,911 (3)

(4)

(5)

(6) (7)

(8) (9)

(10)

Total. (Column (b) must equal Form 990, Part X, col (B) line 15 ) .... 163,473 PartX Other Liabilities. See Form 990, Part X, line 25

1. (a) Descnpt1on of hab1l1ty (b) Book value

(1) Federal income taxes

(2) DEFERRED COMPENSATION LIABILITY 199,562 (3)

(4)

(5)

(6) ' ', ,

, , :, ,, ,, ,~ ,,, ,,

,/

(7) "

' (8) (9) "

(10) ,,~

,/ : , ~ '/~ ,

,,, ,, , , ,, : !J

(11) / j,, ~ .... , ,,, ,,

Total. (Column (b) must equal Form 990, Part X, col (B) line 25) .... 199,562 ,,, ,, , , ..-,, , ,, ,,,

2. FIN 48 (ASC 740) Footnote In Part XIV, provide the text of the footnote to the organization's financial statements that reports the

organization's liability for uncertain tax pos1t1ons under FIN 48 (ASC 740)

DAA Schedule D (Form 990) 2011

363309812 Oo/20/2012 1 36 PM

• ' Schedule D (Form 990) 2011 THE HEARTLAND INSTITUTE 36-3309812

I Part XI·; Reconciliation of Chanae in Net Assets from Form 990 to Audited Financial Statements Page4

1 Total revenue (Form 990, Part VIII, column (A), line 12) 1--1,;__._ __ 4_.___,5_7_3__._,_6_3_1 2 Total expenses (Form 990, Part IX, column (A), line 25)

3 Excess or (deficit) for the year Subtract line 2 from line 1

4 Net unrealized gains (losses) on investments

5 Donated services and use of fac11it1es

6 Investment expenses

7 Prior period adJustments

8 Other (Describe in Part XIV )

9 Total adJustments (net) Add Imes 4 through 8

10 Excess or (deficit) for the vear oer audited financial statements Combine Imes 3 and 9

2

3

4

5 6

7

8

9 10

Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return 1 Total revenue, gains, and other support per audited financial statements

2 Amounts included on line 1 but not on Form 990, Part VIII, line 12

a Net unrealized gains on investments

b Donated services and use of fac111!1es

c Recoveries of prior year grants

d Other (Describe in Part XIV )

e Add Imes 2a through 2d

3 Subtract line 2e from line 1

4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, line 7b

b Other (Describe 1n Part XIV )

c Add Imes 4a and 4b

5 Total revenue Add Imes 3 and 4c. <This must eaual Form 990 Part I line 12)

1

2a

2b

2c

2d 113,831 2e

3

4a

4b

4c

5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return

5,204,877 -631,246

-631,246

4,687,462

113,831 4,573,631

4,573,631

1 Total expenses and losses per audited financial statements 1--1 ____ 5_.___,3_1_8~,_7_0_8 2 Amounts included on line 1 but not on Form 990, Part IX, line 25

a Donated services and use of fac111!1es

b Prior year adJustments

c Other losses

d Other (Describe in Part XIV )

e Add lines 2a through 2d

3 Subtract line 2e from line 1

4 Amounts included on Form 990, Part IX, line 25, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, line 7b

b Other (Describe 1n Part XIV )

c Add Imes 4a and 4b

5 Total exoenses Add Imes 3 and 4c. 1Th1s must eaual Form 990 Part I

Part XIV Supplemental Information line 18)

2a

2b

2c

2d 113,831 2e

3

4a

4b

4c

5

Complete this part to provide the descriptions required for Part II, Imes 3, 5, and 9, Part Ill, Imes 1a and 4, Part IV, Imes 1b and 2b,

Part V, line 4, Part X, line 2, Part XI, line 8, Part XII, Imes 2d and 4b, and Part XIII, Imes 2d and 4b Also complete this part to provide

any add1t1onal information

PART X - FIN 48 FOOTNOTE

113 831 5,204,877

5,204,877

THE INSTITUTE ADOPTED THE IMPLEMENTATION OF FASB ASC 740 (FORMERLY FIN 48,

"ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES"). UNDER FASB ASC 740,

MANAGEMENT MOST EVALUATE THE POSITIONS IT HAS TAKEN ON TAX RETURNS.

MANAGEMENT HAS DETERMINED THAT THERE ARE NO TAX POSITIONS THAT WOULD RESULT

IN A MORE LIKELY THAN NOT (50% CHANCE) OF BEING SUSTAINED UNDER A POTENTIAL

AUDIT OR EXAMINATION. CURRENTLY, THE 2008, 2009, AND 2010 TAX YEARS ARE

Schedule D (Form 990) 2011

DAA

36330981~ 05/20/2012 1 36 PM

I • • ' 'schedule D (Form 990) 2011 THE HEARTLAND INSTITUTE 36-3309812 i Part XIV'. Supplemental Information (continued)

OPEN AND SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE AND THE

ILLINOIS DEPARTMENT OF REVENUE; HOWEVER THE ORGANIZATION IS NOT CURRENTLY

UNDER AUDIT NOR HAS THE ORGANIZATION BEEN CONTACTED BY ANY OF THESE

JURISDICTIONS.

PART XI, LINE 8 - RECONCILIATION OF CHANGES - OTHER

DIRECT EXPENSES FROM 990 PART VIII LINE SB

DIRECT EXPENSES FROM 990 PART VIII LINE BB

$

$

113,831

-113,831

PART XII, LINE 20 - REVENUE AMOUNTS INCLUDED IN FINANCIALS - OTHER

DIRECT EXPENSES FROM 990 PART VIII LINE SB $ 113,831

PART XIII, LINE 20 - EXPENSE AMOUNTS INCLUDED IN FINANCIALS - OTHER

DIRECT EXPENSES FROM 990 PART VIII LINE SB $ 113,831

Page 5

Schedule D (Form 990) 2011

DAA

363309814 06/20/2012 1 36 PM I ••

SCHEDULE F (Form 990)

Department of the Treasury Internal Revenue Service

Statement of Activities Outside the United States .... Complete if the organization answered "Yes" to Form 990,

Part IV, line 14b, 15, or 16. .... Attach to Form 990. .... See separate instructions.

OMB No 1545-0047

2011 " Open.to Public .

Ins ection

Name of the organization Employer 1dent1ficat1on number

THE HEARTLAND INSTITUTE 36-3309812 General Information on Activities Outside the United States. Complete 1f the organization answered "Yes" to Form 990 Part IV line 14b

For grantmakers. Does the organization maintain records to substantiate the amount of ,ts grants and other

assistance. the grantees' elig1b11ity for the grants or assistance, and the selection cntena used to award the

grants or assistance?

2 For grantmakers. Describe in Part V the organization's procedures for monitoring the use of ,ts grants and other

assistance outside the United States

3 Act1v1t1es per Region (The following Part I, line 3 table can be duplicated 1f add1tronal space rs needed )

(a) Region (b) Number of (c) Number of (d) Act1v1t1es conducted 1n (e) If act1v1ty listed 1n (d) 1s offices 1n the employees, agents. region (by type) (e g ,

region and independent fundra1s1ng, program services, contractors investments,

in region grants to rec1p1ents located 1n the remon)

(1)

(2)

(3)

(4)

(5)

(6)

m

(8)

(9)

(101

(111

(121

(13)

(14)

(15)

(16)

(17)

3a Sub-total ,· •,

b Total from contmuat.Jon , ,.'/,,'/, , ', :z..-/~

sheets to Part I ,, ;'{r;~, /, ' /

c Totals (add 'r, :,, <0">: /'\

lines 3a and 3b) ,,.'::-

,,,,

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

OAA

a program service, describe spec1f1c type of

service( s) in region

,,,, / ,, '•

.u, , , , ',/ ; ,.,. •,, _..,,,,

, ,,

" ,,, /, •. ,:,,-:: ,,~, .; , ,~

, ,

l] Yes [] No

(f) Total expenditures for and investments

in region

;

"•

"•

Schedule F (Form 990) 2011

363309812 06/20/2012 1 36 PM

ScheduleF(Form990)2011 THE HEARTLAND INSTITUTE 36-3309812 Page2

'\Part 11-: Grants and Other Assistance to Organizations or Entities Outside the United States. Complete 1f the organization answered "Yes" to Form 990, " · · ""' --, Part IV, line 15, for any rec1p1ent who received more than $5,000 Check this box 1f no one rec1p1ent received more than $5,000 ~ D

.... - .. ---- --- .. --- -- -1 (a) Name of (b) IRS code (c) Region ( d) Purpose of ( e) Amount of (f) Manner of

orgarnzat1on section and EIN grant cash grant cash

(of applicable) disbursement

RESEARCH/PUBLICATION 58,000 ELECTRON!~ (1) ' MIDDLE EA ~T AND NORTH ARFICA

(2)

.. \ (3) ' .. . . .. "::

(4)

(5) ·-

(6) ,t --

'.' iii' ;t_\;:}\·:···;' ' ~ '

(8)

(9) ' ,, ~ ... ' ,_.

--,\ot'\>,\._ '\

.. •' ''

.. . . (111 . --

(121 ,,,,

''" '-:- -..,,,, "' ,, ,, '.

(131' ,.._,,, "

-..,"'

' '' ~ ' ... ,, ''' ''' ',,,

' '

(141

(151

-.,'''

(161'

2 Enter total number of rec1p1ent organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt

by the IRS, or for which the grantee or counsel has provided a section 501 (c)(3) equ1valency letter

3 Enter total number of other org_anizabons or ent1t1es

DM

(g) Amount of

non-cash

assistance

(h) Descnpt,on

of non-cash

assistance

~

~

1 0

(1) Method of valuation

(book, FMV, appra,sel,

otherl

Schedule F (Form 990) 2011

363309814 00/20/2012 1 36 PM ' ..

Schedule F (Form 990) 2011 THE HEARTLAND INSTITUTE 36-3309812 Part IV , Foreign Forms

Was the organization a U S transferor of property to a foreign corporation during the tax year? If "Yes,"

the organization may be required to file Form 926, Return by a U S Transferor of Property to a Foreign

Corporation (see Instructions for Form 926)

2 Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization

may be required to file Form 3520, Annual Return to Report Transactions with Foreign Trusts and

Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Return of Foreign Trust With a

U S Owner (see Instructions for Forms 3520 and 3520-A)

3 Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes,"

the organization may be required to file Form 5471, Information Return of US Persons With Respect To

Certain Foreign Corporations (see Instructions for Form 5471)

4 Was the organization a direct or indirect shareholder of a passive foreign investment company or a

qualified electing fund during the tax year? If "Yes," the organization may be required to file Form 8621,

Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing

Fund (see Instructions for Form 8621)

5 Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes,"

the organ1zat1on may be required to file Form 8865, Return of U S Persons With Respect To Certain

Foreign Partnerships (see Instructions for Form 8865)

6 Did the organization have any operations in or related to any boycotting countries during the tax year? If

"Yes," the organization may be required to file Form 5713, International Boycott Report (see Instructions

for Form 5713)

DAA

Page 4

O Yes ~ No

O Yes ~ No

O Yes ~ No

O Yes ~ No

O Yes ~ No

O Yes ~ No

Schedule F (Form 990) 2011

3633098\2 00/20/2012 1 36 PM

ScheduleF(Form990)2011 THE HEARTLAND INSTITUTE 36-3309812 Page5

; , part V ':i Supplemental Information Complete this part to provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method, amounts of investments vs expenditures per region), Part II, line 1 (accounting method), Part Ill (accounting method); and Part Ill, column (c) (estimated number of recipients), as applicable Also complete this part to provide any add1t1onal information (see instructions)

PART I, LINE 2 - PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS

THE ORGANIZATION IS "FRIENDS OF" THE GRANT RECIPIENTS THEREFORE NO MAJOR

TRACKING IS NECESSARY.

PART I, LINE 3 - ACTIVITIES PER REGION

REGION EXPENDITURES INVESTMENTS

EAST ASIA AND THE PACIFIC $ 0 $ 0

Schedule F (Form 990) 2011 DAA

36330981 i 06/20/2012 1 36 PM ,,

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury Internal Revenue Service

Supplemental Information Regarding Fundraising or Gaming Activities

Complete 1f the orgamzat,on answered "Yes" to Form 990, Part IV, lines 17, 18, or 19, or ,f the orgamzallon entered more than $15,000 on Form 990-EZ, line 6a

,.. Attach to Fonn 990 or Fonn 990-EZ. I), See separate instructions.

OMB No 1545-0047

2011 Open To Public lnsoecbon

THE HEARTLAND INSTITUTE I Employer 1dent1ficallon number

36-3309812 Name of the organization

Fund raising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17 Form 990-EZ filers are not required to complete this part

Indicate whether the organization raised funds through any of the following act1v1t1es Check all that apply

a D Mail solic1tat1ons e D Solic1tat1on of non-government grants

b D Internet and email solic1tat1ons f D Solic1tat1on of government grants

c D Phone sollc1tat1ons g D Special fundra1sing events

d D In-person sollc1tat1ons

2a Did the organization have a written or oral agreement with any ind1v1dual (including officers, directors, trustees or key employees listed 1n Form 990, Part VII) or entity in connection with professional fundra1sing services? D Yes D No

b If "Yes," list the ten highest paid 1nd1v1duals or ent1t1es (fund raisers) pursuant to agreements under which the fund raiser 1s to be compensate d I $ 000 b h at east 5 >v t e oraamzat1on

(111) Did fund- (v) Amount paid to raiser have

(1) Name and address of 1nd1v1dual custody or (1v) Gross receipts (or retained by)

or entity (fundra1ser) (11) Act1v1ty control of from act1v1ty fundra1ser listed in

contnbut1ons? col (1)

Yes No

1

2

3

4

5

6

7

8

9

10

Total .... 3 List all states 1n which the organization 1s registered or licensed to solicit contnbut1ons or has been notified 11 1s exempt from

reg1strat1on or licensing

(v1) Amount paid to

(or retained by)

orgamzat1on

Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. DAA

Schedule G (Form 990 or 990-EZ) 2011

3633098:2 06/20/2012 1 36 PM

I ~ I I

ScheduleG(Form990or990-EZ)2011 THE HEARTLAND INSTITUTE 36-3309812 Page 2 P.art II Fundraising Events. Complete 1f the organization answered "Yes" to Form 990, Part IV, line 18, or reported

more than $15,000 of fundra1smg event contributions and gross income on Form 990-EZ, Imes 1 and 6b List events wit h t h $5 000 aross rece10· s areater t an

(a) Event #1 (b) Event #2 ( c) Other events

(d) Total events

FUNDRAISING NONE (add col (a) through

( event type) { event type) {total number) col (cl) Cl) ::, c: Cl)

74,234 74,234 > 1 Gross receipts Cl)

a::: 2 Less Charitable

contributions

3 Gross income (line 1 minus

line 2) 74,234 74,234

4 Cash prizes

5 Noncash prizes

"' 6 RenUfac11ity costs Cl)

"' c: Cl) a.

7 Food and beverages )(

w 0 ~

8 Entertainment 6

9 Other direct expenses 113,831 113,831

10 Direct expense summary Add lines 4 through 9 1n column (d) .... 113 I 831) 11 Net income summarv Combine line 3 column (d) and line 10 .... -39,597

Part Ill Gaming. Complete 1f the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15 000 on Form 990-EZ line 6a

Cl) (a) Bingo {b) Pull tabs/instant

{c) Other gaming {d) Total gaming (add

::, bingo/progressive bingo col {a) through col {c)) c:

Cl) > Cl)

a::: 1 Gross revenue

"' 2 Cash prizes Cl)

"' c: Cl) a. 3 Noncash prizes )(

w 0 ~ 4 RenUfac11ity costs 6

5 Other direct expenses

O Yes % O Yes

6 Volunteer labor n No n No

7 Direct expense summary Add Imes 2 through 5 m column (d)

8 Net gaming income summary Combine lme 1, column d, and lme 7

9 Enter the state(s) 1n which the organ1zat1on operates gaming act1v1t1es

a Is the organization licensed to operate gaming act1v1t1es m each of these states?

b If "No," explain

% O Yes

n No

10a Were any of the orgarnzat1on's gaming licenses revoked, suspended or terminated during the tax year?

b If "Yes," explain

DAA

%

.... )

....

9a O Yes O No

10a O Yes O No

Schedule G (Form 990 or 990-EZ) 2011

363309B1i! otl/20/2012 1 36 PM , . .

• Schedule G (Form 990 or 990-EZ) 2011 THE HEARTLAND INSTITUTE 11 Does the organization operate gaming act1v1tles with nonmembers?

12 Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming?

13 Indicate the percentage of gaming activity operated in

a The organization's facility

b An outside fac1l1ty

14 Enter the name and address of the person who prepares the organization's gaming/special events books and

records

Name~

Address~

15a Does the organization have a contract with a third party from whom the organization receives gaming

revenue?

b If "Yes," enter the amount of gaming revenue received by the organization ~

amount of gaming revenue retained by the third party ~ $

c If "Yes," enter name and address of the third party

Name~

Address~

16 Gaming manager information

Name~

Gaming manager compensation ~ $

Description of services provided ~

$

D D1rector/offlcer D Employee O Independent contractor

17 Mandatory d1stribut1ons

a Is the organization required under state law to make charitable d1stribut1ons from the gaming proceeds to

retain the state gaming license?

b Enter the amount of d1stribut1ons required under state law to be distributed to other exempt organizations or

spent in the organization's own exempt act1v1t1es during the tax year ~ $

36-3309812 Page 3

LJ Yes lJ No

D Yes O No

13a %

13b %

D Yes D No

and the

D Yes D No

Part IV Supplemental Information. Complete this part to provide the explanations required by Part I, line 2b, columns (11i) and (v}, and Part 111, Imes 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable Also complete this part to provide any add1t1onal information (see instructions).

Schedule G (Form 990 or 990-EZ) 2011

DAA

36330981;! ot,/20/2012 1 36 PM

.. SCHEDULE J (Form 990)

Department of the Treasury Internal Revenue Service

Compensation Information For certain Officers, Directors, Trustees, Key Employees, and Highest

Compensated Employees IJI,, Complete if the organization answered "Yes" to Form 990,

Part IV, line 23. IJI,, Attach to Form 990. IJI,, See separate instructions.

OMB No 1545-0047

2011 Open to Public

, Inspection '

Name of the organozat,on

I Employer odentoficatoon number

36-3309812 THE HEARTLAND INSTITUTE Part Questions Regarding Compensation

1a Check the appropriate box(es) 1f the organization provided any of the following to or for a person listed in Form

990, Part VII, Section A, line 1a Complete Part Ill to provide any relevant information regarding these items

D First-class or charter travel D Housing allowance or residence for personal use

DB Travel for companions DB Payments for business use of personal residence Tax indemnification and gross-up payments Health or social club dues or 1nit1at1on fees

D1scret1onary spending account Personal services (e g , maid, chauffeur, chef)

b If any of the boxes on line 1 a are checked, did the organization follow a written policy regarding payment

or reimbursement or prov1s1on of all of the expenses described above? If "No," complete Part Ill to

explain

2 Did the organ1zat1on require substant1at1on prior to reimbursing or allowing expenses incurred by all officers,

directors, trustees, and the CEO/Executive Director, regarding the items checked 1n line 1a?

3 Indicate which, 1f any, of the following the f1l1ng organization uses to establish the compensation of the

organization's CEO/Executive Director Check all that apply Do not check any boxes for methods used by a

related organization to establish compensation of the CEO/Executive Director Explain in Part Ill

~ Compensation committee D Written employment contract

D Independent compensation consultant ~ Compensation survey or study

~ Form 990 of other organizations ~ Approval by the board or compensation committee

4 During the year, did any person listed in Form 990, Part VII, Section A, line 1a, with respect to the filing

organization or a related organization

a Receive a severance payment or change-of-control payment?

b Part1c1pate 1n, or receive payment from, a supplemental nonqualif1ed retirement plan?

c Part1c1pate 1n, or receive payment from, an equity-based compensation arrangement?

If ''Yes" to any of lines 4a--c, list the persons and provide the applicable amounts for each item in Part Ill

Only section S01(c)(3) and S01(c)(4) organizations must complete lines 5-9.

S For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any

compensation contingent on the revenues of

a The organization?

b Any related organization?

If "Yes" to line 5a or 5b, describe in Part Ill

6 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any

compensation contingent on the net earnings of

a The organization?

b Any related organization?

If "Yes" to line 6a or 6b, describe in Part Ill

7 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed

payments not described in lines 5 and 6? If "Yes," describe in Part Ill

8 Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subJect

to the 1nit1al contract exception described 1n Regulations section 53 4958-4(a)(3)? If "Yes," describe

In Part Ill

9 If ''Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in

Reaulat1ons section 53 4958-6(c)?

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

DAA

Yes No

1b

2

4a x 4b X 4c x

Sa x Sb x

6a x 6b x

7 x

8 x

9 Schedule J (Form 990) 2011

363309812 06120/2012 1 36 PM

~

ScheduleJ(Form990}2011 THE HEARTLAND INSTITUTE 36-3309812 Page 2 Part II Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies 1f add1t1onal space is needed.

For each 1nd1v1dual whose compensation must be reported 1n Schedule J, report compensation from the organization on row (1) and from related organizations, described in the instructions, on row (11) Do not list any 1nd1v1duals that are not listed on Form 990, Part VII Note. The sum of columns (8)(1)-(111) for each listed 1nd1v1dual must equal the total amount of Form 990, Part VII, Section A, line 1 a, applicable column (D) and (E) amounts for that 1nd1v1dual

(B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and (D) Nontaxable (E) Total of columns

(1) Base (11) Bonus & incentive (111) Other other deferred benefits (B)(1HD) (A) Name

compensation compensation reportable compensation compensation

JOSEPH BAST (1) 153,988 0 0 50,000 0 203,988 1 (11 0 0 0 0 0 0

(1)

2 (11

(1)

3 (11

(1)

4 (11

(1)

5 (11

(1)

6 (11

(1)

7 (11

(1)

8 (11)

(1)

9 (11

(1)

10 (11

(1)

11 (11

(1)

12 (11

(1)

13 (11

(1)

14 (11

(1)

15 (11

(1)

16 (11

(F) Compensation reported as deferred in

prior F orrn 990

0 0

Schedule J (Fonn 990) 2011

DAA' .... .

363309812 06/20/2012 1 36 PM

.

ScheduleJ(Form990)2011 THE HEARTLAND INSTITUTE 36-3309812 Page 3 Part Ill Su~lemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, Imes 1a, 1 b, 3, 4a, 4b, 4c, Sa, Sb, 6a, 6b, 7, and 8, and for Part II Also complete this part for any add1t1onal information

PART I, LINE 4 - SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS

SEVERANCE NONQUALIFIED EQUITY-BASED

JOSEPH BAST 0 199,562 0

Schedule J (Fonn 99012011

Df!..15 • .

36330~~1.2 ~/20/2012 1 36 PM • _l ' ••

SCHEDULE L (Form 990 or 990-EZ)

Depanment of the Treasury Internal Revenue Service

Transactions With Interested Persons ~ Complete if the organization answered

"Yes" on Form 990, Part IV, lme 25a, 25b, 26, 27, 28a, 28b, or 28c,

or Form 990-EZ, Part V, lme 38a or 40b.

~ Attach to Form 990 or Form 990-EZ ~ See separate instructions

OMB No 1545-0047

2011 " Open To Public

lns1><1ction

THE HEARTLAND INSTITUTE I Employer 1dent1ficat1on number

36-3309812 Name of the organization

Part I Excess Benefit Transactions (section 501(c)(3) and section 501(c)(4) organizations only) Complete 1f the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b

1 (a) Name of disqualified person (b) Descnpt1on of transaction

l1l (2)

{31 (4)

151 (6)

2 Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958

3 Enter the amount of tax, 1f any, on line 2, above, reimbursed by the organization

Part II

HERB (1)

(2)

(3)

{41

(5)

{6)

(7)

(8)

(9)

{101

Total

Part Ill

Loans to and/or From Interested Persons. Complete 1f the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a

(a) Name of interested person and purpose (b) Loan to (c) Ong1nal

or from the principal amount orqamzat1on?

To From

WALBERG, BOARD CHAIRMAN x 50,000

Grants or Assistance Benefiting Interested Persons. Complete tf the organization answered "Yes" on Form 990, Part IV, line 27

~$

(d) Balance due

50,000

50.000

( c) Corrected?

Yes No

~$ _______ _

~$ ______ _

(e) In default? (f) Approved (g) Written by board or agreement? committee?

Yes No Yes No Yes No

x x x

(a) Name of interested person (b) Relat1onsh1p between interested person and the (c) Amount and type of assistance

orgarnzat1on

(1)

(2)

{31 (4)

{5)

161 {71 (8)

191 (10) For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. DAA

Schedule L (Form 990 or 990-EZ) 2011

36330~812 ct/20/2012 1 36 PM I ,~t 4 •

I -'-I

Schedule L (Form 990 or 990-EZ) 2011

L Pc!rt t'!(: Business Transactions Involving Interested Persons. Complete 1f the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c

(a) Name of mteresled person ( b) Relahonsh1p between (c) Amounl of

interested person and the transad1on

organization

m 12) 131 (4)

151 (6)

(71 (8)

(9)

(10)

f>art V Supplemental Information

Page 2

(d) Descr1ptron of transaction (e) Shanng

oforg revenues?

Yes No

Complete this part to provide add1t1onal 1nformat1on for responses to questions on Schedule L (see instructions)

Schedule L (Form 990 or 990-EZ) 2011

DAA

363309Jl12 ~/20/2012 1 36 PM

I ....... ~• I,

SCHEDULE M OMB No 1545-0047

(Form 990) Noncash Contributions

2011 l)Jli-Complete 1f the organizations answered 11Yes" on Form

990, Part IV, Imes 29 or 30 , Open To Public Department of the Treasury

~ Attach to Fonn 990 , Inspection Internal Revenue Service

Name of the orgarnzat,on

I Employer 1dent1ficat1on number

THE HEARTLAND INSTITUTE 36-3309812 Part I Types of Property

(a) (b) (c) Noncash contnbut1on

(d)

Check ,f Number of contnbut1ons or amounts reported on

Method of determ,n,ng

applicable items contributed Form 990, Part VIII, line 1g noncash contnbut1on amounts

1 Art-Works of art

2 Art-Historical treasures

3 Art-Fractional interests

4 Books and publications

5 Clothing and household

goods

6 Cars and other vehicles

7 Boats and planes

8 Intellectual property

9 Securities-Publicly traded

10 Securities-Closely held stock

11 Securit1es-Partnersh1p, LLC,

or trust interests

12 Securit1es-M1scellaneous

13 Qualified conservation

contribut1on-H1storic

structures

14 Qualified conservation

contribution-Other

15 Real estate-Res1dent1al

16 Real estate-Commercial

17 Real estate-Other

18 Collectibles

19 Food inventory

20 Drugs and medical supplies

21 Taxidermy

22 Historical artifacts

23 Sc1ent1f1c specimens

24 Archeolog1cal artifacts

25 Other ~ ( SOFTWARE ) x 1 59,908 26 Other~( )

27 Other~( )

28 Other~( )

29 Number of Forms 8283 received by the organization during the tax year for contributions for

29 I which the organization completed Form 8283, Part IV, Donee Acknowledgement

Yes No 30a During the year, did the organization receive by contribution any property reported in Part I, Imes 1-28 that

11 must hold for at least three years from the date of the 1mt1al contribution, and which 1s not required to be

used for exempt purposes for the entire holding period? 30a x b If "Yes," describe the arrangement in Part II

31 Does the organization have a gift acceptance policy that requires the review of any non-standard

contributions? 31 x 32a Does the organization hire or use third parties or related organizations to sohc1t, process, or sell noncash

contributions? 32a x b If "Yes," describe in Part II

33 If the organization did not report an amount in column (c) for a type of property for which column (a) 1s checked,

describe in Part II

For Paperwork Reduction Act Notice, see the Instructions for Fonn 990 Schedule M (Fonn 990) (2011)

DAA

363~,812 ~/20/2012 1 36 PM

• -ii.. ,.

ScheduleM(Form990)(2011) THE HEARTLAND INSTITUTE 36-3309812 Page 2 L '~.!'1 !~ ,,: Supplemental Information. Complete this part to provide the information required by Part I, Imes 30b, 32b,

and 33, and whether the organization 1s reporting m Part I, column (b), the number of contributions, the number of items received, or a combination of both Also complete this part for any add1t1onal information

Schedule M (Form 990) (2011)

DAA

363309jl12 ~/20/2012 1 36 PM

•,.J) I • • . SCHEDULE O (Form 990 or 990-EZ)

Supplemental Information to Form 990 or 990-EZ Complete to provide information for responses to specific questions on

Form 990 or 990-EZ or to provide any additional information.

OMB No 1545--0047

2011 Department of the Treasury Internal Revenue Service 1J1,, Attach to Form 990 or 990-EZ.

, , ope'n' to Puti11c ,, : Ins ection ;

Name of the orgarnzat1on Employer ident1ficat1on number

THE HEARTLAND INSTITUTE 36-3309812

FORM 990, PART I, LINE 6

VOLUNTEERS HELPED WITH THE MISSION OF THE ORGANIZATION.

FORM 990, PART VI, LINE 2 - RELATED PARTY INFORMATION AMONG OFFICERS

JOSEPH BAST DIANE BAST

PRESIDENT EX. EDITOR

HUSBAND/WIFE

FORM 990, PART VI, LINE llB - ORGANIZATION'S PROCESS TO REVIEW FORM 990

THE ACCOUNTING DEPARTMENT WILL REVIEW THE 990 BEFORE IT IS SIGNED. A

COMMITTEE OF THE BOARD REVIEWS THE 990.

FORM 990, PART VI, LINE 12C - ENFORCEMENT OF CONFLICTS POLICY

ANNUALLY ASK THE BOARD MEMBERS AND INDEPENDENT CONTRACTORS TO REVIEW THE

CONFLICT OF INTEREST POLICY AND COMPLETE/SIGN THE FORM. THE FORMS ARE KEPT

ON FILE. WHEN MADE AWARE OF A POTENTIAL CONFLICT OF INTEREST THEY FOLLOW UP

AND GET NEW FORMS SIGNED. THERE IS RELIANCE ON THE PERSONS SELF

DISCLOSURES.

FORM 990, PART VI, LINE lSA - COMPENSATION PROCESS FOR TOP OFFICIAL

WHEN DETERMINING COMPENSATION THE BOARD USES REVIEW AND APPROVAL BY AN

INDEPENDENT PERSON, COMPARABILITY DATA, AND HAS PROOF OF THE DELIBERATION

AND DECISION.

FORM 990, PART VI, LINE lSB - COMPENSATION PROCESS FOR OFFICERS

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

DAA

Schedule O (Form 990 or 990-EZ) (2011)

3633091JJ;< ~/20/2012 1 36 PM

t.1'('' '.

-~ Schedule O Form 990 or 990-EZ 2011

Name of the organ,zat,on

THE HEARTLAND INSTITUTE Employer 1dentlficat1on number

36-3309812

WHEN DETERMINING COMPENSATION THE BOARD USES REVIEW AND APPROVAL BY AN

INDEPENDENT PERSON, COMPARABILITY DATA, AND HAS PROOF OF THE DELIBERATION

ANO DECISION.

FORM 990, PART VI, LINE 19 - GOVERNING DOCUMENTS DISCLOSURE EXPLANATION

GOVERNING DOCUMENTS ARE MADE AVAILABLE BY REQUEST.

Pa e 2

Schedule O (Form 990 or 990-EZ) (2011)

DAA

363309812_~3/2712012 8 38 AM \ . \,

Form 8868 (Rev January 2012)

Application for Extension of Time To File an Exempt Organization Return OMB No 1545-1709

Department of the Treasury Internal Revenue SeN1ce • File a separate application for each return.

• If you are filing for 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 3-month extension on a previously filed Form 8868

Electronic filing (e-flle). You can electronically file Form 8868 1f you need a 3-month automatic extension of lime to file (6 months for

a corporation required to file Form 990-T), or an add1t1onal (not automatic) 3-month extension of time. You can electronically file Form

8868 to request an extension of time to file any of the forms listed in Part I or Part II with the exception of Form 8870, Information

Return for Transfers Associated With Certain Personal Benefit Contracts, which must be sent to the IRS 1n paper format (see

instructions) For more details on the electronic filing of this form, v1s1t www irs gov/efile and click on e-file for Chant1es & Nonprofits

Part I Automatic 3-Month Extension of Time. Only submit original (no copies needed). A corporation required to file Form 990-T and requesting an automatic 6-month extension-check this box and complete

Part I only

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

to file income tax returns

Enter filer's identifvina number see instructions

Type ar

print

Name of exempt organization or other filer, see instructions Employer 1denllficallon number (EIN) or

File by the

due date for

filing your

return See instructions

THE HEARTLAND INSTITUTE Number, street, and room or suite no. If a P.O box, see instructions

19 SOUTH LASALLE STREET 903 City, town or post office, state, and ZIP code For a foreign address, see 1nstruct1ons

CHICAGO IL 60603 Enter the Return code for the return that this application 1s for (file a separate application for each return)

Application Return Application

Is For Code Is For

Form 990 01 Form 990-T lcoroorat1onl

Form 990-BL 02 Form 1041-A

Form 990-EZ 01 Form 4720

Form 990-PF 04 Form 5227

Form 990-T (sec 4011a\ or 4081a\ trust\ 05 Form 6069

Form 990-T (trust other than above\ 06 Form 8870

THE HEARTLAND INSTITUTE

Ix] 36-3309812 Social security number (SSN)

n

Return

Code

07

08

09

10

11

12

19 SOUTH LASALLE STREET #903 • The books are in the care of IJ,,CHICAGO IL 60603

Telephone No• 312-377-4000 FAX No •

• If the organization does not have an office or place of business in the United States, check this box

• If this 1s for a Group Return, enter the or~mzat1on's four d1g1t Group Exemption Number (GEN)

for the whole group, check this box • LJ If 1t 1s for part of the group, check this box • LJ and attach

If this IS

a list with the names and EINs of all members the extension 1s for

1 I request an automatic 3-month (6 months for a corporation required to file Form 990-T) extension of time

until O 8 / 15 / 12 , to file the exempt organization return for the organization named above The extension 1s

for the organization's return for-

• Iii calendar year 2 0 11 or

• D tax year beginning , and ending

2 If the tax year entered in line 1 1s for less than 12 months, check reasorO Initial return D Final return

n Chanae in accountina oenod

3a If this application 1s for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax, less any

nonrefundable credits See instructions 3a $

b If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any refundable credits and

estimated tax oavments made. Include anv orior vear overoavment allowed as a credit 3b $

c Balance due. Subtract line 3b from line 3a Include your payment with this form, 1f required, by using

EFTPS (Electronic Federal Tax Pavment Svstem\. See instructions 3c $

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

For Privacy Act and Paperwork Reduction Act Notice, see Instructions. Fann 8868 (Rev 1-2012) DAA