2021-07-28T12:19:35-05:00 2020-12-31 363990892 Capin Crouse LLP 1000 Texan Trail STE 125 Grapevine TX 76051 990 2020-01-01 262414132 Mercy Ships MERC 9039397000 PO Box 2020 Lindale TX 75771 Fred Grote CFO 9039397000 2021-07-28 1 Fred Grote 999009999 Ted R Batson Jr P00721951 5055022746 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z Gert Van de Weerdhof PO Box 2020 Lindale TX 75771 111217814 0 X www.mercyships.org X 2008 TX Operate hospital ships in developing countries to provide free medical care. 10 9 348 695 0 0 103619059 109394534 1596723 354119 816168 420652 185972 513721 106217922 110683026 23304278 11314802 0 0 19763441 20208472 4352015 4115180 13582113 43536125 43616755 90955859 79255209 15262063 31427817 145192831 171351006 13885846 8030974 131306985 163320032 X Mercy Ships operates hospital ships in underdeveloped countries, providing free medical care to patients, and conducting training and education for medical professionals. Mercy Ships also engages in medical infrastructure improvement projects. 0 1 58445612 11314802 397845 Mercy Ships follows the 2,000 year old example of Jesus, bringing hope and healing to the forgotten poor. In 2020, Mercy Ships continued providing medical services at no cost, including, but not limited to:* Specialty surgeries performed 871; * Patients screened for surgery 2,196; * Healthcare professionals trained and mentored 866; * Dental procedures 9,899; * Volunteer crew 671;* Crew nationalities represented 50; * Trained in sustainable improved agriculture 25 58445612 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 1 0 1 1 1 1 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 0 0 1 X 64 0 1 348 1 0 1 UK GV TO SL BN MA SG CM LI 0 0 0 0 0 0 0 0 0 0 X 10 9 0 0 0 0 0 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AK CA CO DC FL GA HI KY MD MI MN MS NH NM NC ND OR PA SC TN VA WA WI WV X X Fred Grote CFO 9039397669 PO Box 2020 Lindale TX 75771 Tom Stogner Director/CEO 45.00 0.70 X X 284471 0 2694 Ruben Martin Chairman 2.00 1.00 X X 0 0 0 Rosa Whitaker President 2.00 1.00 X X 0 0 0 Peter B Schulze Treasurer 2.00 1.20 X X 0 0 0 Ronald L Goode PhD Secretary 2.00 0.50 X X 0 0 0 Leland Paris Director 2.00 X 0 0 0 AC Musgrave Director 2.00 X 0 0 0 Robert Waldrop Director 2.00 X 0 0 0 Bradley Gaultney Director 2.00 X 0 0 0 Guy Wade Director 2.00 0.20 X 0 0 0 Fred Grote CFO 45.00 0.70 X 195310 0 23837 Don Stephens Founder 45.00 2.20 X 300000 0 0 Jitze Kramer VP Global Branding 45.00 X 150755 0 22334 Kerry Peterson VP Advancement 45.00 0.20 X 149259 0 10085 Kyle Nabors COO 45.00 X 130571 0 11814 Stephanie Sparks VP Resource Development 45.00 X 118605 0 19982 Amy Nyquist Dev. Manager Western US 45.00 X 117050 0 21490 Jay L Manns Dir. Information Security 45.00 X 107314 0 21409 1553335 0 133645 16 0 1 0 US Postal Service 475 LEnfant Plaza SW Washington DC 202600004 Postage 1839246 Daniel J Edelman Inc JP Morgan Chase NA 21992 Network P Chicago IL 606731219 Global Media Provider 1483035 We Are Changemakers Inc 254 North Lake Ave 342 Pasadena CA 91101 Mail Solicitations 1420586 Livful Inc 6845 Shiloh Rd East Ste D-7 Alpharetta GA 30005 Supplier 1404910 Tenerif Offshore & Shipping Agency SL PO Milicias de Garachico 1 Edific Santa Cruz de Tenerife Canary Isla SP 38002 Shipping Agent 1240900 49 80876 16953467 92360191 4132302 109394534 Crew & Volunteer Fees 624200 354119 354119 354119 420123 420123 62 62 50816 0 50816 50816 50816 410805 410276 529 529 529 168238 124512 43726 43726 Reimbursed revenue 900099 23157 23157 395960 395960 419117 110683026 397845 0 890647 X 10260984 10260984 10500 10500 1043318 1043318 979500 729363 101465 148672 201819 68197 110890 22732 16269454 11631866 2700122 1937466 227573 158092 28564 40917 1390342 1058972 216739 114631 1139784 784653 202062 153069 332433 261807 27976 42650 83863 63716 20147 4115180 4115180 9361623 7098756 830206 1432661 3353618 2502060 701340 150218 4942007 4759226 155028 27753 2069277 1869075 193709 6493 2396333 1722093 229637 444603 1423183 1337264 23790 62129 21871 12309 818 8744 1007652 961171 46481 301871 295210 6661 Postage & Printing 5934342 1146994 463319 4324029 Marine Expenses 4054562 3964168 90049 345 Contr. Medical Supplies 3722751 3545136 177534 81 Food & Medical Supplies 2409356 2374527 17480 17349 2202013 786155 883467 532391 79255209 58445612 7227484 13582113 11343415 29883308 46453500 41269594 1316027 91399 4665927 12663738 5312292 6791617 1472009 3106933 84869171 7324754 73800241 77544417 6248 823172 0 145192831 171351006 12661103 3990213 12098 1212645 1150408 2884300 0 6053 13885846 8030974 X 99453159 144481353 31853826 18838679 131306985 163320032 145192831 171351006 X 31427817 585230 X 0 1 X 1 0 X 77807654 69701595 112476785 103619059 109394534 472999627 77807654 69701595 112476785 103619059 109394534 472999627 25006310 447993317 90149 94860 298631 810735 471001 1765376 197601 101172 552824 525765 419117 1796479 476561482 10739275 0.94010 0.92920 X Schedule A, Part II, Line 10, Explanation of Other Income: Reimbursed revenue - 2016 Amount: $ 148,696. 2017 Amount: $ 64,982. 2018 Amount: $ 68,569. 2019 Amount: $ 55,773. 2020 Amount: $ 23,157. Gainloss on foreign currency exchange - 2016 Amount: $ 10,559. Misc income - 2016 Amount: $ 38,346. 2017 Amount: $ 36,190. 2018 Amount: $ 484,255. 2019 Amount: $ 469,992. 2020 Amount: $ 395,960. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 1280489 15526 1296015 1250011 30478 1280489 1049888 200000 123 1250011 835019 200000 14869 1049888 620609 205000 9410 835019 0.01330 0.98670 0 0 866094 228194 637900 6892606 5040525 1852081 77110471 2056035 75054436 77544417 Other liabilities 6053 6053 119251247 7858479 124512 7982991 111268256 -585230 -585230 110683026 87238200 7858479 124512 7982991 79255209 0 79255209 Part IV, Line 2b: Mercy Ships maintains a bank on board its ship for the convenience of its crew members. Part V, Line 4: Endowment funds are intended to be used for 1) The support of staff/crew that need assistance in raising the support necessary for monthly living expenses and 2) To help support the organization's operational and/or programmatic activities. Form 990, Schedule D, Part V, Lines 2a-2c In accordance with the principles of FASB ASU 2016-14 (ASC 958), the organization has implemented required changes to its audited financial statements for the period ended 12/31/2020. To date, Schedule D has not been updated to reflect changes made by this standard. Thus, we have reported the revised net asset categories from the audited financial statements as follows on Form 990, Schedule D, Part V, Lines 2a-2c: Line 2a - Without donor restrictions Line 2b - With donor restrictions Part XI, Line 2d - Other Adjustments: Cost of Goods Sold 124,512. Part XI, Line 4b - Other Adjustments: Gain on foreign currency translation -585,230. Part XII, Line 2d - Other Adjustments: Cost of Goods Sold 124,512. 1 Sub-Saharan Africa 1 450 Program services Free medical services 17642667 Sub-Saharan Africa 0 0 Grants to recipients located in region 930288 Europe 0 0 Grants to recipients located in region 112190 South America 0 0 Grants to recipients located in region 490 North America 0 0 Grants to recipients located in region 350 1 450 0 0 1 450 18685985 0 18685985 Sub-Saharan Africa Pediatric Clinic in Guinea 250000 Wire transfer 0 Sub-Saharan Africa Equipment 230898 Wire transfer 0 Sub-Saharan Africa Covid-19 Fund 151200 Check 0 Sub-Saharan Africa Supplies donation 138502 Wire transfer 0 Europe Clean Cut Program 112190 Wire transfer 0 Sub-Saharan Africa Dental Equipment 51344 Wire transfer 0 Sub-Saharan Africa Childrens mission support 42939 Wire transfer 0 Sub-Saharan Africa Renovations 15500 Wire transfer 0 Sub-Saharan Africa Covid-19 Response 10000 Wire transfer 0 Europe Medical Supplies 0 7823 Blood Gas Analyzer Cost less Amortization 10 0 Agricultural training Sub-Saharan Africa 33 5544 Cash Advance 0 0 0 0 0 0 Part I, Line 2: Mercy Ships only reimburses for charitable costs incurred and documented. These grants were primarily used for the effective operation of the ship assets and/or partners that are used to further its exempt purpose. When the grantee is external to Mercy Ships, monthly or annual financial statements are required. Those reports are submitted to and reviewed by the Finance Department of Mercy Ships to ensure that the grants are used as intended. Part I, line 3: Foreign expenditures are accounted for according to the accrual basis of accounting, using expense reports, annual reports from grantees, and other appropriate documentation. Part III Accounting Method: Additional Supplemental Information: Africa Mercy Malta is the maritime legal entity that owns the hospital ship Africa Mercy, that is operated by Mercy Ships to carry out its charitable activities. Africa Mercy Malta is owned and controlled by Mercy Ships International, a related organization. X X X X X X X 1 We Are Changemakers Inc 254 North Lake Ave 342 Pasadena CA 91101 Mail solicitations 0 7514509 1420586 6093923 Mindwize Marketing Planetenweg 99 HL Hoofddorp NL 2132 Mail solicitations 0 0 1184608 0 Gateway Communications 16805 NE Mason Ct Portland OR 97230 Phone solicitations 0 0 26951 0 Daniel J Edelman Inc JP Morgan Chase NA 21992 Network P Chicago IL 606731219 Global Mercy Campaign 0 0 1483035 0 7514509 4115180 6093923 AK AL AR AZ CA CT DC FL GA HI IL KS KY MA MD MN MS NC ND NH NJ NM NV NY OH OR PA RI SD TN UT VA VT WA WI WV WY CO DE ID IA IN LA ME MI MO MT NE OK SC TX Schedule G, Part I, Line 2b, Column (v) In addition to the $1,420,586 paid to We Are Changemakers in professional fundraising services, Mercy Ships also reimbursed We Are Changemakers $9,820,211 for direct fundraising expenses such as printing and mailing. These expenses were substantiated and reported separately by We Are Changemakers on its invoices. All other professional fundraising services were consulting in nature; no gross receipts were directly generated from the services provided. 1 Mercy Ships Foundation PO Box 1298 Lindale TX 75771 752641151 501(c)(3) 10260984 Programmatic support 1 0 Scholarships 16 10500 Part I, Line 2: Mercy Ships conducts periodic reviews of funds granted to ensure all funds are properly recorded. The grants are given to related organizations with common management, which oversee the grant purposes. Scholarships to individuals are available to children of Mercy Ships employees and awarded to candidates based on an application process. Scholarships are made payable either directly to the educational institution or to the individual. If the scholarship is made payable to the individual, an expense report must be provided documenting how the scholarship money has been used to ensure that scholarship money is used for educational purposes. X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 Don Stephens Founder 300000 0 0 0 0 0 0 0 25 0 300025 0 0 0 Tom Stogner Director/CEO 284471 0 0 0 0 0 0 0 2719 0 287190 0 0 0 Fred Grote CFO 195310 0 0 0 0 0 6125 0 17737 0 219172 0 0 0 Jitze Kramer VP Global Branding 150755 0 0 0 0 0 4416 0 17942 0 173113 0 0 0 Kerry Peterson VP Advancement 149259 0 0 0 0 0 4629 0 5481 0 159369 0 0 0 Part I, Line 1a Mercy Ships only pays for ministry-related travel. Mercy Ship's policy normally pays for economy travel, but if health conditions require upgraded accommodation then Mercy Ships will evaluate on a case-by-case basis. Currently the Founder and Chief Executive Officer have medical conditions that require upgraded travel. All other executives fly economy class. This is not included as taxable compensation. Stephanie Sparks Family Member of Don Stephens, Founder 138612 Employee Compensation 0 Charles Stephens Family Member of Don Stephens, Founder 63207 Employee Compensation 0 X 61 410805 Selling Price X 2 8898 FMV - Similar Sales X 90 1547559 FMV - Similar Sales X Supplies 100 1902852 FMV - Similar Sales X Fuel 3 256588 FMV - Similar Sales X Barter donation 3 5600 FMV - Similar Sales 4 0 1 0 Form 990, General The most complete picture of Mercy Ships global operations is contained in the consolidated audited financial statements of Mercy Ships and its affiliates. The consolidated audited financial statements are available in their entirety on the Mercy Ships website at https://www.mercyships.org/2020-mercy-ships-audit-report/. As a party interested in the activities of Mercy Ships, we encourage you to visit our website and review the consolidated audited financial statements. Form 990, Part III, line 3 Due to COVID we removed our vessel the Africa Mercy from Senegal and did not return in 2020. We distributed PPE to our partners in Africa and pivoted into our land based operations in Guinea, Liberia and Senegal. This enabled continued programmatic output in our training and medical interventions, but our programmatic expenses decreased compared to 2019. Thus, the reasoning for answering yes to this question. We are planning to return the Africa Mercy to Africa in 1st quarter of 2022. Form 990, Part VI, Section A, line 7a The board of directors of Mercy Ships International, a Texas nonprofit corporation shall appoint directors from among nominees by a voice vote or written ballot. Form 990, Part VI, Section B, line 11b The organization's Form 990 was prepared by an independent CPA firm and reviewed in detail by the Chief Financial Officer. The 990 was then provided electronically to all members of the board for their review and comment. Board members were then given at least one week to review the Form 990 and send comments to the Chief Financial Officer. After all comments and questions were addressed, the 990 was filed with the IRS. Form 990, Part VI, Section B, line 12c Board members and senior staff including officers are required to complete a Conflicts of Interest Questionnaire on an annual basis. Disclosures are required to be updated with potential conflicts as they become known throughout the year. The signed Questionnaires are reviewed by the Audit and Finance Committee. If a conflict is identified by management or by the board, the person with a conflict recuses themselves from the decision-making process, and the board votes on whether or not to engage in the transaction, based on whether it is in the best interests of Mercy Ships. Form 990, Part VI, Section B, line 15 The Mercy Ships Board of Directors establishes the compensation of the organization's top management. A compensation committee comprised of independent top management personnel reviews and approves all other compensation. Comparability data is used annually and the decisions rearched are documented in both the minutes of the board and committee and individual personnel files. Form 990, Part VI, Section C, line 19 Mercy Ships makes its governing documents, conflict of interest policy, and financial statements available for public inspection at the International Support Center in Lindale, Texas during regular business hours. Documents are also made available upon written request. Form 990, Part IX, line 11g Contract Labor: Program service expenses 7,098,756. Management and general expenses 830,206. Fundraising expenses 1,432,661. Total expenses 9,361,623. Form 990, Part XI, line 9: Gain on Foreign Currency Translation 585,230. Mercy Ships Community of Faith LLC PO Box 2020 Lindale TX 75771 300455568 Supporting entity pursuant to Reg Sec 301 7701-2 TX 2125000 12226 Mercy Ships Mercy Ships Foundation PO Box 1298 Lindale TX 75771 752641151 Ownership of real estate used in exempt activity TX 501(c)(3) Line 12c, III-FI N/A 0 Mercy Ships International PO Box 2020 Lindale TX 75771 752685233 Provides governance to Mercy Ships TX 501(c)(3) Line 7 N/A 0 Africa Mercy Malta Limited Mercury House 125 Old Mint St Valleta MT Owns Ship Used in Exempt Activity MT N/A C 0 0 1 1 0 0 0 0 0 0 0 1 0 0 1 1 0 0 0 0