2018-08-31T15:08:10-05:00 2017-12-31 363990892 Capin Crouse LLP 1000 Texan Trail STE 125 Grapevine TX 76051 990 2017-01-01 262414132 Mercy Ships MERC 9039397000 15862 State Highway 110 North Lindale TX 75771 Fred Grote CFO 9039397000 2018-08-31 1 Francis K Brown II P01074795 8173286510 2017 2022-09-23 18:48:47Z Donovan Palmer 15862 State Highway 110 North Lindale TX 75771 72010645 0 X www.mercyships.org X 2008 TX Operate hospital ships in developing countries to provide free medical care. 9 7 274 1226 0 0 77807654 69701595 1728583 1778588 84307 54115 331852 -280663 79952396 71253635 21698844 12307641 0 0 13176354 14952575 1446358 1793949 8022913 24341217 33388615 60662773 62442780 19289623 8810855 75169137 82865047 8985667 7428076 66183470 75436971 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 0 47209973 12307641 2006198 Mercy Ships follows the 2,000 year old example of Jesus, bringing hope and healing to the forgotten poor. In 2017, Mercy Ships continued providing medical services at no cost, including, but not limited to:* Specialty surgeries performed 2,792; * Patients screended for surgery 35,488; * Healthcare professionals trained and mentored 1,935; * Dental procedures 19,309; * Volunteer crew 1,219;* Crew nationalities represented 62; * Trained in sustainable improved agriculture 51 47209973 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 0 1 0 1 1 1 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 X 48 0 1 274 1 0 1 UK GV TO SL BN MA CM 0 0 0 0 0 0 0 0 X 9 7 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 MO NH NM NC ND OR PA SC TN VA WA WI WV X X Fred Grote CFO 9039397669 15862 State Highway 110 North Lindale TX 75771 X Donovan Palmer Group Managing Director 45.00 0.70 X X 240415 0 16297 Don Stephens Chairman/President 45.00 2.20 X X 293186 0 70000 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 Gary Brandenberg Director 2.00 X 0 0 0 Michael Allen Director 2.00 X 0 0 0 Robert Waldrop Director 2.00 X 0 0 0 Vanda Davey Part Year CFO 45.00 0.70 X 215900 0 0 Fred Grote CFO 45.00 0.70 X 61271 0 3431 Dr Gary Parker Chief Med. Off. (see Sch. O) 45.00 X 146245 0 0 Kerry Peterson VP Marketing 45.00 0.20 X 139002 0 0 1096019 0 89728 5 0 1 0 Russ Reid 2 North Lake Avenue Ste 600 Pasadena CA 91101 Mail Solicitations 1636864 Societe Provider Services Group BP 2073 Douala CM General Building 1395526 Astican Ave de las Petroliferas s/n Palmas Gran Canaria SP Shipyard Services 1193950 Bravo Group 20 North Market Square Ste 800 Harrisburg PA 17101 Public Relations 899115 Stena Rederi AB SE-405 19 Goteburg SW Project Management 428400 24 96295 833635 15736049 53035616 8257557 69701595 Crew & Volunteer Fees 624200 1778588 1778588 1778588 49630 49630 45230 0 45230 45230 45230 4485 0 4485 4485 4485 0 833635 553503 -553503 -553503 329945 203507 126438 126438 Reimbursed revenue 900099 64982 64982 Misc. income 900099 36190 36190 101172 71253635 2006198 0 -454158 12015411 12015411 9000 9000 283230 283230 900500 706370 101145 92985 11949913 8051168 1897992 2000753 1392873 1114157 182249 96467 709289 408373 148240 152676 21740 17440 1082 3218 49211 36908 12303 1793949 1793949 5144144 4774101 370043 3943439 938494 574932 2430013 2200035 1939715 212419 47901 538824 504669 12206 21949 1274073 496438 360640 416995 1614220 1301078 65955 247187 33896 22095 1315 10486 187 142 41 4 829098 775067 54031 348389 331931 16458 Medical Contributed Goo 5879551 5766630 76849 36072 Marine Expenses (inc. F 4076179 3744077 321645 10457 Postage & Printing 4003195 804290 2575590 623315 Medical Supplies 1903153 1850941 52083 129 1529281 1318248 172676 38357 62442780 47209973 7209894 8022913 13907495 7150094 12104163 18746049 118159 -13682 644889 151060 3075121 3193944 470115 1085893 57947888 5484003 44754125 52463885 6248 6248 88822 81556 75169137 82865047 7942084 6255154 59129 92266 984454 1080656 8985667 7428076 X 48112941 55577543 17283529 18872428 787000 987000 66183470 75436971 75169137 82865047 X 8810855 10643 -487425 919428 X X 0 1 X 1 0 X 35774085 60875514 66416311 77807654 69701595 310575159 35774085 60875514 66416311 77807654 69701595 310575159 19118678 291456481 43176 42467 90149 94860 270652 131836 213595 197601 101172 644204 311490015 10875046 0.93570 0.91580 X Schedule A, Part II, Line 10, Explanation of Other Income: Reimbursed revenue - 2014 Amount: $ 113,284. 2015 Amount: $ 164,230. 2016 Amount: $ 148,696. 2017 Amount: $ 64,982. Gainloss on foreign currency exchange - 2014 Amount: $ 18,552. 2015 Amount: $ 4,107. 2016 Amount: $ 10,559. Misc income - 2015 Amount: $ 45,258. 2016 Amount: $ 38,346. 2017 Amount: $ 36,190. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 835019 200000 14869 1049888 620609 205000 9410 835019 407029 210000 3580 620609 168810 230000 8219 407029 122949 30000 15861 168810 0.01410 0.94010 0.04580 0 0 543455 163199 380256 6438329 4114094 2324235 50966104 1206710 49759394 52463885 Ship bank payable 1080656 1080656 93492464 10643 17535209 4692977 22238829 71253635 0 71253635 83751538 17535209 3773549 21308758 62442780 0 62442780 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. Part XI, Line 2d - Other Adjustments: Cost of Goods Sold 203,507. Loss on foreign currency translation 919,428. Intercompany grant 3,016,539. Fundraising Expenses 553,503. Part XII, Line 2d - Other Adjustments: Cost of Goods Sold 203,507. Intercompany grant 3,016,539. Fundraising Expenses 553,503. 1 Sub-Saharan Africa 1 450 Program services Free medical services 20780234 Sub-Saharan Africa 0 0 Grants to recipients located in region 127055 Central America and the Caribbean 0 0 Grants to recipients located in region 6466 Europe 1 5 Grants to recipients located in the region 149709 2 455 0 0 2 455 21063464 0 21063464 Sub-Saharan Africa Childrens mission support 16400 Wire transfer Sub-Saharan Africa Disaster recovery - Cyclone 5386 PayPal account Central America and the Caribbean Rebuild home after hurricane 6466 Wire transfer Sub-Saharan Africa Childrens mission support 9566 Wire transfer Sub-Saharan Africa Childrens mission support 15445 Wire transfer Sub-Saharan Africa Drill wells near six schools in Benin 24360 Check Europe Purchase of surgical tools 149709 Wire Transfer 4 3 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. 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. 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 Russ Reid PO Box 90125 Pasadena CA 91109 Mail solicitations 0 6711796 1636864 5074932 WestFall Group 75 14th Street NE Ste 3050 Atlanta GA 30309 Special events 0 833635 675384 158251 Gateway Communications 16805 NE Mason Ct Portland OR 97230 Phone solicitations 0 16564 35204 -18640 7561995 2347452 5214543 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 Founders Weekend 833635 833635 94611 135136 323756 833635 833635 94611 135136 323756 553503 -553503 Schedule G, Part I, Line 2b, Column (v) In addition to the $1,636,864 paid to Russ Reid in professional fundraising services, Mercy Ships also reimbursed Russ Reid $6,741,195 for direct fundraising expenses such as printing and mailing. These expenses were substantiated and reported separately by Russ Reid on its invoices. 1 Mercy Ships Foundation PO Box 1298 Lindale TX 75771 752641151 501(c)(3) 12003180 Programmatic support Cure Internations 774 Limekiln Rd New Cumberland PA 17070 582248383 501(c)(3) 10351 Programmatic support 2 0 Scholarships 13 9000 Part I, Line 2: Mercy Ships conducts periodic reviews of funds granted to ensure all funds are properly recorded, and are being used in accordance with the organization's charitable purposes and written policy. X 1 1 X X X X X 0 0 0 0 0 0 0 0 0 Donovan Palmer Group Managing Director 240415 0 0 0 0 0 0 0 16273 0 256688 0 0 0 Don Stephens Chairman/President 293186 0 0 0 0 0 0 0 70000 0 363186 0 0 0 Vanda Davey Part Year CFO 215900 0 0 0 0 0 0 0 0 0 215900 0 0 0 Part I, Line 1a A minister's housing allowance is provided under Code Section 107 to the organization's Chairman/President. This is treated as a non-taxable benefit. X 49 640767 FMV - Market Quote X 3 8315 FMV - Similar Sales X 438 4649641 FMV - Similar Sales X Supplies 129 2486786 FMV - Similar Sales X Fuel 6 470498 FMV - Similar Sales X Barter donation 3 1550 FMV - Similar Sales 12 0 1 0 Part I, Column (b): The number of contributions represent the number of contributions received, not the number of items donated. Form 990, Part VI, Section A, line 1a, Executive committee: The Board of Directors may elect three or more persons from among its members to serve as an Executive Committee. The Chairman of this committee shall be the Chairman of the Board of Directors. The Executive Committee shall have and exercise the authority of the Board of Directors between meetings of the Board of Directors, as prescribed by the Board, to supervise the affairs of the Corporation, regulate its internal economy, approve expenditures and commitments, and act for and carry out the established policies of the Corporation. All actions taken by the Executive Committee shall be reported to the Board of Directors at the meeting of the Board next succeeding such action. 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 during regular business hours. Documents are also made available upon written request. Form 990, Part VII, Section A Chief Medical Officer Dr. Gary Parker, like other long-term crew members, is responsible for raising his own personal funding to support his full-time professional services on a hospital ship. Form 990, Part XI, line 9: Unrealized G/L on Foreign Currency Translation 919,428. Form 990, Part XII, lines 2c - Explanation of Responsibility: The audit and finance committee of the board of directors is responsible for overseeing the audit and selecting the independent accounting firm. This process has not changed from the previous year. Mercy Ships Community of Faith LLC 15862 Highway 110 North Lindale TX 75771 300455568 Supporting entity pursuant to Reg Sec 301 7701-2 TX 3068131 16399 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 Mercy Ships 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 0 1 1 0 0 0 0 0 0 0 1 0 0 1 1 0 1 0 0 Mercy Ships Foundation B Mercy Ships Foundation C Mercy Ships Foundation K Mercy Ships Foundation N Mercy Ships Foundation O Mercy Ships Foundation Q Mercy Ships International B Mercy Ships International N Mercy Ships International O Mercy Ships International Q