2017-08-24T11:24:50-05:00 2016-12-31 363990892 Capin Crouse LLP 1000 Texan Trail STE 125 Grapevine TX 76051 990 2016-01-01 262414132 Mercy Ships MERC 9039397000 15862 State Highway 110 North Lindale TX 75771 Vanda Davey CFO 9039397000 2017-08-24 1 Daren Daiga P01074795 8173286510 173.240.105.108 2017-08-24 10:24:13 MD P 0A8D4A7AB6990F5A377896F69D79DCC293D9BAA9 0BEB7AAFB2B06B82802C5CF9516DA83B706B74E3 2016 2021-01-29 14:40:06Z Donovan Palmer 15862 State Highway 110 North Lindale TX 75771 80223357 0 X www.mercyships.org X 2008 TX Operate hospital ships in developing countries to provide free medical care. 10 8 241 1143 0 0 66416311 77807654 1858718 1728583 42467 84307 399469 331852 68716965 79952396 15164064 21698844 0 0 12990540 13176354 1431170 1446358 8325290 22736776 24341217 52322550 60662773 16394415 19289623 52621388 75169137 4826004 8985667 47795384 66183470 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 48045140 21698844 1814369 Mercy Ships follows the 2,000 year old example of Jesus, bringing hope and healing to the forgotten poor. In 2016, Mercy Ships continued providing medical services at no cost, including, but not limited to:* Specialty surgeries performed 1,551; * Medical consultations 6,917; * Healthcare Professionals Trained and Mentored 1,704; * Dental treatments 22,466; * Day workers employed & trained 598;* Trained in sustainable improved agriculture 39; * Medical infrastructure facilities improvement projects 3. 48045140 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 1 1 1 0 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 46 0 1 241 1 0 1 UK GV TO SL BN MA 0 0 0 0 0 0 0 0 X 10 8 0 0 0 0 0 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AR CA CO CT DC FL GA HI IL KS KY MD MI MN MS MO NC ND RI AK AL NY NM NJ NH OR PA SC TN UT VA WA WI WV OH ME IN X X Vanda Davey CFO 9039397075 15862 State Highway 110 North Lindale TX 75771 X Donovan Palmer Director/Group Managing Director 45.00 0.70 X X 242500 0 14302 Don Stephens Chairman/President 45.00 2.20 X X 304979 0 70000 Peter B Schulze Treasurer 2.00 1.20 X X 0 0 0 Ronald L Goode PhD Secretary 2.00 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 William S Kanaga 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 CFO 45.00 0.70 X 205605 0 473 Dr Gary Parker Chief Medical Officer (see Sch O) 45.00 X 198651 0 0 Kerry Peterson VP Marketing 45.00 0.20 X 102653 0 7464 1054388 0 92239 5 0 1 0 Russ Reid 2 North Lake Avenue Ste 600 Pasadena CA 91101 Mail Solicitations 1183592 Stena Rederi AB SE-405 19 Goteburg SW Project Management 535500 Bravo Group 20 North Market Square Ste 800 Harrisburg PA 17101 Public Relations 282000 Westfall Group 75 14th Street NE Ste 3050 Atlanta GA 30309 Fundraising 144000 4 640235 18728344 58439075 4423034 77807654 Crew & Volunteer Fees 624200 1728583 1728583 1728583 41683 41683 48466 0 48466 48466 48466 42624 0 42624 42624 42624 356747 270961 85786 85786 Reimbursed revenue 900099 148696 148696 Misc. income 900099 38345 38345 Gain on foreign curren 900099 10559 10559 197600 79952396 1814369 0 330373 21621654 21621654 9500 9500 67690 67690 837859 418930 229867 189062 21875 10937 4375 6563 11722082 8463166 1625051 1633865 3751 2564 347 840 590787 338552 126681 125554 7243 5734 439 1070 45136 33645 11491 1446358 1446358 3790839 3177471 340163 273205 3782422 969451 641842 2171129 5229248 2585671 631479 2012098 1660259 1002973 370123 287163 923480 777296 37461 108723 34974 22668 846 11460 663123 607460 55663 441242 372723 67229 1290 Medical Contrib. Goods 3627422 3618141 3577 5704 Food & Medical 1491106 1444774 46038 294 Fuel & Oil 1193601 1193601 1451122 1300539 99671 50912 60662773 48045140 4292343 8325290 10911948 13907495 7704995 12104163 94292 118159 80000 644889 3292553 3075121 82133 470115 50469241 5715116 30374275 44754125 6248 6248 74944 88822 52621388 75169137 3674292 7942084 84592 59129 1067120 984454 4826004 8985667 X 41507222 48112941 5671133 17283529 617029 787000 47795384 66183470 52621388 75169137 X 19289623 6722 -572 -907687 X X 0 1 X 1 0 X 27404622 35774085 60875514 66416311 77807654 268278186 27404622 35774085 60875514 66416311 77807654 268278186 21952977 246325209 43176 42467 90149 175792 -27194 131836 213595 197601 515838 268969816 11064165 0.91580 0.93360 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. Gainloss on foreign currency exchange - 2012 Amount: $ -27,194. 2014 Amount: $ 18,552. 2015 Amount: $ 4,107. 2016 Amount: $ 10,559. Misc income - 2015 Amount: $ 45,258. 2016 Amount: $ 38,346. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 620609 205000 9410 835019 407029 210000 3580 620609 168810 230000 8219 407029 122949 30000 15861 168810 69521 5000 482 75003 0.01720 0.94250 0.04030 0 0 659955 144097 515858 6889605 5571019 1318586 42919681 42919681 44754125 Ship bank payable 984454 984454 X 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 X, Line 2: The financial statement effects of a tax position taken or expected to be taken are recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. Interest and penalties, if any, are included in general and administrative expenses in the statement of activities. As of December 31, 2016, Mercy Ships had no uncertain tax positions that qualify for recognition or disclosure in the financial statements. Mercy Ships' federal Exempt Organization Business Income Tax Return Form 990 is subject to examination by the Internal Revenue Service, generally for three years after it is filed. As of December 31, 2016, Mercy Ships' tax returns for the years 2013 through 2015 remain subject to examination. 1 Sub-Saharan Africa 1 450 Program services Free medical services 16905214 Sub-Saharan Africa 0 0 Grants to recipients located in region 67690 1 450 0 0 1 450 16972904 0 16972904 Sub-Saharan Africa Childrens mission support 17797 Wire transfer Sub-Saharan Africa Educational support 7842 Wire transfer Sub-Saharan Africa Childrens mission support 8251 Check 3 0 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 7150315 1183592 5966723 WestFall Group 75 14th Street NE Ste 3050 Atlanta GA 30309 Special events 0 5055500 144000 5026500 Gateway Communications 16805 NE Mason Ct Portland OR 97230 Phone solicitations 0 31100 26886 4214 Keller McIntyre & Assoc LLC PO Box 405 Falls Church VA 22040 Government grants 0 0 91881 -91881 12236915 1446359 10905556 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 $1,183,592 paid to Russ Reid in professional fundraising services, Mercy Ships also reimbursed Russ Reid $7,144,815 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) 21620827 Programmatic support 1 0 Scholarships 13 9500 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 Director/Group Managing Director 242500 0 0 0 0 0 0 0 14302 0 256802 0 0 0 Don Stephens Chairman/President 304979 0 0 0 0 0 0 0 70000 0 374979 0 0 0 Vanda Davey CFO 205605 0 0 0 0 0 0 0 473 0 206078 0 0 0 Dr Gary Parker Chief Medical Officer (see Sch O) 198651 0 0 0 0 0 0 0 0 0 198651 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. Deyon Stephens Family member of Chairman/President Don Stephens 21875 Employee compensation 0 X 39 648640 FMV - Market Quote X 7 20356 FMV - Similar Sales X 336 2785605 FMV - Similar Sales X Supplies 116 968433 FMV - Similar Sales 9 0 1 0 Part I, Column (b): The numbers listed represent the estimated number of unique contributions received. 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 Operations 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 Loss on Foreign Currency Translation -907,687. Form 990, Part XII, lines 2c - Explanation of Responsibility: The audit 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 3207028 11839 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 12b, II 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