2014-08-06T16:36:06-05:00 2013-12-31 363990892 Capin Crouse LLP 2435 Research Parkway STE 200 Colorado Springs CO 80920 990 2013-01-01 262414132 Mercy Ships MERC 9039397000 15862 State Highway 110 North Lindale TX 75771 Vanda Davey CFO 9039397000 2014-08-06 1 David C Moja P00747006 7195286225 2013 2015-11-30 17:44:51Z Donald K Stephens 15862 State Highway 110 North Lindale TX 75771 38257362 0 X www.mercyships.org X 2008 TX Operates hospital ships in developing countries, providing free medical care, education for medical professionals, and medical infrastructure improvements. 8 6 200 1112 0 0 27404622 35774085 1684690 1705720 0 94685 354121 396781 29443433 37971271 275048 2308060 0 0 10154072 10477504 0 355936 3656734 15100313 16755572 25529433 29897072 3914000 8074199 13234468 22267077 1792074 2746799 11442394 19520278 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 23429036 2308060 1705720 Mercy Ships follows the 2000-year old example of Jesus, bringing hope and healing to the forgotten poor In 2013, Mercy Ships continued providing medical services at no cost, including, but not limited to:* Specialty surgeries performed 2,863; * Medical consultations 7,114; * Healthcare Professionals Trained and Mentored 908; * Dental treatments 37,463; * Trained in community health education, 1,971; * Day workers employed & trained 529;* Trained in mental health 577; * Trained in sustainable improved agriculture 64; * Medical infrastructure facilities improvement projects 5 23429036 1 1 0 0 0 0 0 0 0 1 1 0 0 0 0 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 43 0 1 200 1 0 1 UK GV TO SL CF 0 0 0 1 1 0 0 0 0 X 8 6 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ DC FL GA KY MD MN MS MO NH NM NC PA SC VA WA WI X X Vanda Davey CFO 9039397075 15862 State Highway 110 North Lindale TX 75771 Don Stephens Chairman / President 55.00 5.00 X X 215250 0 75000 Peter B Schulze Treasurer/ Managing Director 32.00 2.00 X X 0 0 0 Kerry Peterson Secretary / VP - Marketing 55.00 2.00 X X 94778 0 9468 Leland Paris Director 2.00 0.00 X 0 0 0 AC Musgrave Director 2.00 0.00 X 0 0 0 Gary Brandenberg Director 2.00 0.00 X 0 0 0 Ronald L Goode PhD Director 2.00 0.50 X 0 0 0 William S Kanaga Director 2.00 0.50 X 0 0 0 Vanda Davey CFO 55.00 1.00 X 142622 0 6911 Jeffrey Kramer VP - Resource Development 55.00 1.00 X 134318 0 5428 Dr Gary Parker Chief Medical Officer 70.00 0.00 X 213895 0 0 800863 0 96807 4 0 1 0 Russ Reid 2 North Lake Avenue Ste 600 Pasadena CA 91101 Mail Solicitations 355936 1 119129 35654956 3788162 35774085 Crew & Volunteer Fees 624200 1705720 1705720 1705720 94685 0 94685 94685 94685 682872 286091 396781 396781 37971271 1705720 0 491466 2092919 2092919 8500 8500 206641 206641 544030 240741 153666 149623 171530 127329 18629 25572 8989222 6672828 976297 1340097 330892 180014 117207 33671 441830 219351 117435 105044 26746 12944 6269 7533 1510 755 755 355936 355936 1823916 1036028 213016 574872 332246 155049 91917 85280 3098877 2137055 320732 641090 1260157 710541 391287 158329 1011217 808911 79054 123252 27937 13616 2439 11882 269130 269130 597126 534766 62360 518997 424648 91723 2626 Contributed Goods Exp 2526611 2519645 5779 1187 Fuel & Oil 2265514 2265514 Med & Food 1873577 1830760 42806 11 All Other Expenses 1122011 961351 119931 40729 29897072 23429036 2811302 3656734 7964061 2882860 11887324 70438 32945 2510840 3557865 148902 145652 7659997 3980352 2457977 3679645 6248 6248 76002 74538 13234468 22267077 1750189 2689543 41885 57256 1792074 2746799 X 8483948 13261064 2883443 6106272 75003 152942 11442394 19520278 13234468 22267077 X 8074199 3685 X X 0 1 X 1 0 X 26202162 25790557 25445883 27404622 39150201 143993425 1723239 1417046 1842757 1684690 1705720 8373452 482495 480410 641838 612962 682872 2900577 28407896 27688013 27930478 29702274 41538793 155267454 9265 37987 16792 35452 12801 112297 0 9265 37987 16792 35452 12801 112297 155155157 28407896 27688013 27930478 29702274 41538793 155267454 0.99930 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 122949 30000 15861 168810 69521 5000 482 75003 64006 5000 515 69521 58556 5000 450 64006 58556 58556 0.90600 0.09400 0 0 252583 94985 157598 5061561 3586439 1475122 2345853 298928 2046925 3679645 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, 2013, 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, 2013, Mercy Ships' tax returns for the years 2010 through 2012 remain subject to examination. 1 Sub-Saharan Africa 1 450 Program Services Free Medical Services 16753706 Sub-Saharan Africa 0 0 Grants to Recipients Located in Region 206641 1 450 0 0 1 450 16960347 0 16960347 Sub-Saharan Africa Mission support 36512 Wire Transfer Sub-Saharan Africa Mission support 32842 Wire Transfer Equipment & Supplies Sub-Saharan Africa Mission support 5716 Wire Transfer Sub-Saharan Africa Mission support 45378 Medical equipment & supplies Net book value Sub-Saharan Africa Mission support 42750 Medical equipment & supplies Net book value Sub-Saharan Africa Mission support 33479 Medical equipment & supplies Net book value Sub-Saharan Africa Mission support 5250 Medical equipment & supplies Net book value 5 2 0 0 0 0 0 0 Part I, Line 2: Mercy Ships only reimburses for charitable costs incurred and documented. These grants were primarily for maintenance and repairs of ship assets used to achieve its charitable purposes 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 1 Russ Reid PO Box 90125 Pasadena CA 91109 Mail Solicitations 0 2140510 355936 1784574 2140510 355936 1784574 AL AR AZ CA CO CT DC FL GA IL KY MD MA MN MS NH NM NV NC ND OH OR PA SD SC TN VA VT WA WV WY WI MO Schedule G, Part I, Line 2b, Column (v) In addition to the $355,936 paid to Russ Reid in professional fundraising services, Mercy Ships also reimbursed Russ Reid $1,128,616 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 2050672 34000 Cost Mission support Believe and See 201 Main St Ft Worth TX 76102 460643564 501 (c) 3 8247 Cost Mission Support 2 0 Scholarships 12 8500 Tuition Assistance 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 Don Stephens Chairman / President 215250 0 0 0 0 0 0 0 75000 0 290250 0 0 0 Dr Gary Parker Chief Medical Officer 213895 0 0 0 0 0 0 0 0 0 213895 0 0 0 Part I, Line 1a A housing allowance is provided under Code Section 107 to the organization's Chairman/President. This is treated as a non-taxable benefit. Deyon Stephens Wife of President Donald K. Stephens 25000 W2 Compensation 0 Gary Stephens Brother of President Donald K. Stephens 91200 W2 Compensation & Benefits 0 Jill Peterson Wife of Secretary Kerry Peterson 55330 W2 Compensation 0 X 26 637290 FMV - Market Quote X 10 46963 FMV - Similar Sales X 342 2594638 FMV - Similar Sales X Supplies 32 509271 FMV - Similar Sales 0 1 0 Part I, Column (b): The numbers listed represent the number of contributions received. Form 990, Part VI, Section B, line 11 The organization's Form 990 was prepared by an independent CPA firm and reviewed by the Chief Financial Officer. The 990 was then made available to all members of the board, electronically, 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 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. 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 International Board of Directors establishes the compensation of the organization's Managing Director and top management. A compensation committee comprised of several 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 XI, line 9: Gain/Loss on Foreign Currency Translation 3,685. 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 Associates LLC 15862 Hwy 110 North Lindale TX 75771 300455568 Supporting entity pursuant to Reg Sec 301 7701-2 TX 3373943 10471 Mercy Ships Mercy Ships Foundation 15862 Hwy 110 North Lindale TX 75771 752641151 Ownership of real estate used in exempt activity TX 501(c)(3) Line 11b Mercy Ships 0 Mercy Ships International PO Box 2020 Lindale TX 75771 752685233 Provides governance to Mercy Ships TX 501(c)(3) Line 9 N/A 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0