2014-05-12T15:38:33-05:00 2013-12-31 810385940 ANDERSON ZURMUEHLEN & CO PC 1019 EAST MAIN STE 201 BOZEMAN MT 59715 990 2013-01-01 810393444 PROPERTY AND ENVIRONMENT RESEARCH CENTER PROP 4065879591 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 LAWRENCE REED WATSON EXECUTIVE DIRECTOR 4065879591 2014-05-08 1 KYLA Q STAFFORD P00249110 4065566160 2014-05-01 2013 2015-11-30 17:44:51Z LAWRENCE REED WATSON 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 2307149 0 X WWW.PERC.ORG X 1981 MT PERC IS DEDICATED TO IMPROVING ENVIRONMENTAL QUALITY THROUGH MARKETS AND PROPERTY RIGHTS. PERC'S WORK CONSISTS OF RESEARCH, OUTREACH AND EDUCATION. PERC APPLIES ECONOMIC THINKING TO ENVIRONMENTAL PROBLEMS. 18 18 15 18 1208 208 1668697 2281434 0 0 3636 2515 5727 4819 1678060 2288768 0 0 0 0 1111435 1103805 0 0 274294 1093484 911268 2204919 2015073 -526859 273695 4074156 4005156 635728 293033 3438428 3712123 X PERC IS DEDICATED TO IMPROVING ENVIRONMENTAL QUALITY THROUGH MARKETS AND PROPERTY RIGHTS. PERC'S WORK CONSISTS OF RESEARCH, OUTREACH AND EDUCATION. PERC APPLIES ECONOMIC THINKING TO ENVIRONMENTAL PROBLEMS. 0 0 391159 CONFERENCES AND SEMINARS (SEE NARRATIVE ON SCHEDULE O) 992741 PROJECTS (SEE NARRATIVE ON SCHEDULE O) 1383900 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 103 0 1 15 1 1 1 0 0 0 0 0 0 0 0 0 X 18 18 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X LAWRENCE REED WATSON 4065879591 2048 ANALYSIS DRIVE NO A BOZEMAN MT 597186829 THOMAS E BEACH CHAIRMAN 1.00 X X 0 0 0 LOREN D BOUGH DIRECTOR 0.00 X 0 0 0 THOMAS J BRAY DIRECTOR 0.00 X 0 0 0 HENRY N BUTLER DIRECTOR 0.00 X 0 0 0 TYLER DANN TREASURER 1.00 X X 0 0 0 KIMBERLY O DENNIS DIRECTOR 0.00 X 0 0 0 DEBORAH DONNER DIRECTOR 0.00 X 0 0 0 CARLOS FERNANDEZ DIRECTOR 0.00 X 0 0 0 STEVEN F HAYWARD DIRECTOR 0.00 X 0 0 0 MARTIN HOSTETTLER DIRECTOR 0.00 X 0 0 0 FRED E KARLINSKY DIRECTOR 0.00 X 0 0 0 KRISTINA KENDALL DIRECTOR 0.00 X 0 0 0 FRANK-PAUL KING VICE CHAIRMAN 1.00 X X 0 0 0 DWIGHT E LEE DIRECTOR 0.00 X 0 0 0 LEIGH H PERKINS DIRECTOR 0.00 X 0 0 0 RANKIN SMITH JR DIRECTOR 0.00 X 0 0 0 JOHN F TOMLIN DIRECTOR 0.00 X 0 0 0 BRIAN YABLONSKI DIRECTOR 0.00 X 0 0 0 MONICA GUENTHER CORPORATE SECRETARY 40.00 X 97120 0 11487 TERRY ANDERSON PRESIDENT 40.00 X 197000 0 9850 DINO FALASCHETTI EXECUTIVE DIRECTOR 40.00 X 150000 0 14131 444120 0 35468 2 1 1 0 0 2281434 2281434 2515 2515 23200 18381 4819 4819 1208 3611 2288768 0 1208 6126 X 444120 135568 120484 188068 474523 372674 86397 15452 42925 23748 9667 9510 70465 38985 15869 15611 71772 39708 16163 15901 9554 8060 1494 7612 7612 455295 442953 12342 36625 8523 28102 22151 15845 6306 18301 891 17410 226607 193356 33251 10944 10944 53166 50005 3161 20111 20111 DUES, SUBSCRIPTIONS, AN 50574 42640 7934 TAXES 328 328 2015073 1383900 356879 274294 432575 272014 977954 1303446 937700 784752 29871 1231 6070 7755 2089353 453395 1689986 1635958 4074156 4005156 47731 28330 587997 264703 635728 293033 X 1906909 2186779 1418773 1412598 112746 112746 3438428 3712123 4074156 4005156 273695 0 X X 0 1 X 1 0 X 2414944 2501943 3060329 1668697 2281433 11927346 2414944 2501943 3060329 1668697 2281433 11927346 5770706 6156640 41437 12695 7232 19098 19899 100361 2268 1208 3476 12031183 0.51170 0.47500 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 112746 112746 114739 251 2244 112746 114243 496 114739 113878 365 114243 1.00000 0 0 1655427 84378 1571049 17446 4440 13006 406480 362244 44236 10000 2333 7667 1635958 CAPITAL LEASE PAYABLE 9703 NOTE PAYABLE 255000 264703 2308842 1693 1693 2307149 -18381 -18381 2288768 2035146 1693 18381 20074 2015072 0 2015072 PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES SCHEDULE D, PART XI, LINE 4B RENTAL EXPENSE OF $18,381 IS REPORTED NET OF RENTAL REVENUE ON THE 990, AND INCLUDED AS EXPENSE ON THE FINANCIAL STATEMENTS. SCHEDULE D, PART XII, LINE 4B RENTAL EXPENSE OF $18,381 IS REPORTED NET OF RENTAL REVENUE ON THE 990, AND INCLUDED AS EXPENSE ON THE FINANCIAL STATEMENTS. 0 0 0 0 0 0 0 0 0 TERRY ANDERSON PRESIDENT 197000 0 0 0 0 0 9850 0 0 0 206850 0 0 0 DINO FALASCHETTI EXECUTIVE DIRECTOR 150000 0 0 0 0 0 7500 0 6631 0 164131 0 0 0 FORM 990, PART III, LINE 4A PROGRAM SERVICES: CONFERENCES AND SEMINARS ENVIROPRENEUR INSTITUTE: THE 14TH ANNUAL ENVIROPRENEUR INSTITUTE RAN FROM JUNE 23-JULY 2, 2013 IN BOZEMAN, MT. FOURTEEN ENVIRONMENTAL ENTREPRENEURS CAME FROM NINE STATES AND THREE FOREIGN COUNTRIES TO LEARN HOW PROPERTY RIGHTS, CONTRACTS, AND MARKETS CAN ENHANCE THE VALUE OF ENVIRONMENTAL ASSETS. THE CURRICULUM INCLUDED A LIBERTY FUND COLLOQUIUM TITLED, "PROPERTY RIGHTS, ENTREPRENEURSHIP AND THE ENVIRONMENT," FOLLOWED BY BUSINESS MANAGEMENT LECTURES, MENTORING SESSIONS, AND PROJECT DEVELOPMENT. THE TEN-DAY CURRICULUM CULMINATED WITH THE FIRST ANNUAL PERC SHARK TANK IN WHICH EACH FELLOW DELIVERED AN INVESTMENT PITCH TO A PANEL OF THREE ALUMNI. THE YEAR'S COHORT, ALONG WITH THE PROGRAM'S 200 ALUMNI, ARE GENERATING RETURNS ON PERC'S INVESTMENT IN ENVIROPRENEUR EDUCATION. SEVERAL 2013 INSTITUTE ALUMNI LAUNCHED CONSERVATION-BASED, FOR-PROFIT BUSINESSES AND DESCRIBED THEIR EXPERIENCE AT PERC AS AN IMPORTANT CATALYST. THE WORK OF THESE ENVIROPRENEURS PROVES THE VALUE AND REAL-WORLD APPLICABILITY OF FREE MARKET ENVIRONMENTALISM. TO EMPOWER THESE ALUMNI, FACILITATE NETWORKING BETWEEN THEM, AND SHOWCASE THEIR SUCCESSES, THE APPLIED PROGRAMS TEAM BUILT A SEARCHABLE ALUMNI DATABASE. WE ALSO BEGAN PLANNING AND FUNDRAISING FOR AN EXPANDED ENVIROPRENEUR INSTITUTE TO INCLUDE A BUSINESS INCUBATOR AND EXECUTIVE EDUCATION PROGRAMMING. LIBERTY FUND COLLOQUIA: PERC IS THE PREMIER RESEARCH INSTITUTE FOR STUDYING THE APPLICATION OF PROPERTY RIGHTS AND MARKETS, PERC'S CO-SPONSORED PROGRAMS WITH LIBERTY FUND ARE DESIGNED TO EXPAND AND INCREASE THE SCOPE OF FREE MARKET ENVIRONMENTALISM. THROUGH THE "COLLOQUIA SERIES ON MARKETS, FREEDOM, AND THE ENVIRONMENT," WE PROVE THAT WITHOUT ENVIRONMENT AND LIBERTY, WE ARE AT RISK OF LOSING BOTH. IN 2013 WE CO-HOSTED SIX COLLOQUIA INCLUDING ONE FOR PROFESSIONALS, "PROPERTY RIGHTS, ECONOMIC GROWTH, AND THE ENVIRONMENT: APPLICATIONS TO NATIVE AMERICAN SOCIETIES"; TWO FOR ACADEMICS, "RECONCILING ECOLOGY AND ECONOMICS: PROCESSES AND PROPERTY RIGHTS," AND "HAYEK, COASE, AND ECOSYSTEM SERVICES"; ONE FOR ENVIROPRENEURS, "LIBERTY AND THE PROGRESS OF THE HUMAN CONDITION"; ONE FOR ENVIRONMENTAL ENTREPRENEURS, "PROPERTY RIGHTS, ENTREPRENEURSHIP, AND THE ENVIRONMENT"; AND ANOTHER FOR UNDERGRADUATE STUDENTS, "FREE MARKET ENVIRONMENTALISM AND THE INSTITUTIONS OF LIBERTY." SEARLE FREEDOM TRUST WORKSHOPS: INITIATED IN 2009, THE FUNDAMENTAL GOAL OF PERC'S "WORKSHOP SERIES ON MARKETS, PROPERTY RIGHTS, AND THE ENVIRONMENT" IS TO EXPOSE MORE SCHOLARS AND POLICY MAKERS TO THE IDEAS OF FREE MARKET ENVIRONMENTALISM (FME). AFTER HOSTING THIS WORKSHOP SERIES FOR FIVE YEARS, PERC HAS BROUGHT 201 PARTICIPANTS TO PERC WORKSHOPS, OF WHICH 64 PERCENT WERE NEW TO PERC. IN 2013, WE CO-HOSTED FOUR WORKSHOPS INCLUDING "RECONCILING ECOLOGY & ECONOMICS: PROCESSES AND PROPERTY RIGHTS," "ENVIRONMENTAL FEDERALISM," "ECONOMIC DEVELOPMENT AND TRIBAL CULTURE: TENSIONS BETWEEN ASSIMILATION AND CULTURE," AND "ENERGY POLICY: POLITICAL, LEGAL, AND ECONOMIC ISSUES." FORM 990, PART III, LINE 4B PROGRAM SERVICES: PROJECTS "FREE MARKET ENVIRONMENTALISM FOR THE NEXT GENERATION" BOOK MANUSCRIPT: A MAJOR FOCUS OF PERC'S RESEARCH IN 2013 WAS ON WRITING FREE MARKET ENVIRONMENTALISM FOR THE NEXT GENERATION. IN 1991, WE PUBLISHED THE FIRST EDITION OF FREE MARKET ENVIRONMENTALISM (PACIFIC RESEARCH INSTITUTE). THE BOOK WAS A PACESETTER IN EXPLAINING HOW MANY GOVERNMENT POLICIES WERE FAILING TO IMPROVE ENVIRONMENTAL QUALITY AND HOW PROPERTY RIGHTS AND MARKETS COULD PROVIDE AN ALTERNATIVE. AT THAT TIME, THE NOTION THAT MARKETS AND THE ENVIRONMENT COULD BE HARMONIZED WAS MET WITH SKEPTICISM BECAUSE MOST ENVIRONMENTALISTS SAW MARKETS AS THE ENEMY OF THE ENVIRONMENT. HOWEVER, THE BOOK WAS WELL RECEIVED BY THOSE SEEKING EFFECTIVE ALTERNATIVES FOR IMPROVING ENVIRONMENTAL QUALITY, AND THE SEEDS OF FREE MARKET ENVIRONMENTALISM SPROUTED. BY THE TIME FREE MARKET ENVIRONMENTALISM (PALGRAVE) WAS REVISED IN 2001, A SEA CHANGE HAD OCCURRED. FOR EXAMPLE, WITH A MORE CONSERVATIVE PRESIDENT IN THE WHITE HOUSE, GROUPS WANTING FEWER CATTLE GRAZING ON FEDERAL LANDS WERE ABANDONING SLOGANS SUCH AS "NO MOO IN '92" AND "CATTLE FREE IN '93" AND, INSTEAD, WERE PROPOSING TO PURCHASE AND RETIRE GRAZING PERMITS FROM RANCHERS WILLING TO SELL THEM. WATER MARKETS WERE BEING USED TO PURCHASE OR LEASE WATER TO INCREASE STEAM FLOWS FOR FISH, AND TRADABLE FISHING PERMITS WERE REDUCING THE TRAGEDY OF THE COMMONS THAT PLAGUE MANY OCEAN FISHERIES. HENCE, THE 2001 EDITION OF FREE MARKET ENVIRONMENTALISM REPRESENTED A SHIFT FROM ENVIRONMENTAL MARKETS IN THEORY, TO ENVIRONMENTAL MARKETS IN PRACTICE. FREE MARKET ENVIRONMENTALISM FOR THE NEXT GENERATION PROVIDES A VISION FOR THE FUTURE OF ENVIRONMENTALISM BASED ON THE SUCCESS OF ENVIRONMENTAL ENTREPRENEURS AROUND THE WORLD. THE ORIGINAL TITLE HAS BEEN EXPANDED WITH A DOUBLE ENTENDRE-THE BOOK PROVIDES THE NEXT GENERATION OF ENVIRONMENTAL MARKET IDEAS AND THE CHAPTERS ARE CO-AUTHORED WITH YOUNG SCHOLARS AND POLICY ANALYSTS WHO REPRESENT THE NEXT GENERATION OF ENVIRONMENTAL LEADERS. WE HAVE RETAINED THE ORIGINAL TITLE BECAUSE IT IS WELL KNOWN TO ENVIRONMENTAL SCHOLARS, POLICY ANALYSTS, PRACTITIONERS, BUT EVERY CHAPTER IS ENTIRELY NEW. WEALTH OF INDIAN NATIONS: SINCE THE EARLY 1990S, PERC SCHOLARS HAVE BEEN EXAMINING THE EFFECT OF PROPERTY RIGHTS ON ECONOMIC DEVELOPMENT IN INDIAN COUNTRY, GENERALLY, AND SPECIFICALLY ON THE USE OF VALUABLE RESERVATION NATURAL RESOURCES. THANKS TO SUPPORT FROM THE M.J. MURDOCK CHARITABLE TRUST, OVER THE PAST TWO YEARS PERC SCHOLARS HAVE ADVANCED THIS RESEARCH ON THE "WEALTH OF INDIAN NATIONS." PERC SCHOLARS HAVE CONDUCTED RESEARCH THAT HAS BEEN PUBLISHED IN PROFESSIONAL JOURNALS, BOOKS, NEWSPAPERS, AND PERC PUBLICATIONS. IN ADDITION, PERC HOSTED A CONFERENCE SPONSORED BY LIBERTY FUND, SEARLE FREEDOM TRUST, AND M.J. MURDOCK CHARITABLE TRUST THAT FOCUSED ON THE WEALTH OF INDIAN NATIONS. THIS PROGRAM ATTRACTED 29 ATTENDEES, WHICH CONSISTED OF SCHOLARS, POLICY MAKERS, AND TRIBAL LEADERS. WE WERE ESPECIALLY PLEASED THAT THIS CONFERENCE HAD REPRESENTATIVES FROM MULTIPLE TRIBES, INCLUDING THREE MAORI TRIBAL LEADERS FROM NEW ZEALAND. ESPECIALLY IMPORTANT IS OUR WORK THAT FOCUSED ON THE POTENTIAL FOR ENERGY DEVELOPMENT ON RESERVATIONS AND THE DEVELOPMENT THAT IS THWARTED BY THE PROPERTY AND REGULATORY INSTITUTIONS THAT GOVERN TRIBES. AS A RESULT OF THIS RESEARCH, PERC WAS INVITED TO JOIN A GROUP OF MONTANA LEGISLATORS ON A TOUR OF THE CROW RESERVATION WHERE HE MET TRIBAL CHAIRMAN. VISITING SCHOLARS: PERC OFFERS A WIDE RANGE OF FELLOWSHIPS TO EXPOSE NEW SCHOLARS, STUDENTS, ENVIRONMENTAL ENTREPRENEURS, AND POLICY MAKERS TO FREE MARKET ENVIRONMENTALISM WHICH IN TURN GENERATES RESEARCH OUTPUT, WHICH CAN BE PUBLISHED IN VARIOUS VENUES TO HELP FURTHER DEMONSTRATE HOW PROPERTY RIGHTS AND MARKETS ARE WORKING TO PROVIDE ENVIRONMENTAL QUALITY. THIS YEAR PERC HOSTED 28 VISITING SCHOLARS INCLUDING JULIAN SIMON FELLOWS, LONE MOUNTAIN FELLOWS, AND GRADUATE FELLOWS. THESE FELLOWSHIPS HAVE HELPED PERC ATTRACT SCHOLARS FROM MULTIPLE UNIVERSITIES WHO COME KNOWING THAT THEY WILL HAVE AN OPPORTUNITY TO CONDUCT THEIR RESEARCH AND HAVE IT CRITIQUED IN A CONSTRUCTIVE AND PRODUCTIVE ATMOSPHERE. FORM 990, PART VI, SECTION A, LINE 2 THE ORGANIZATION'S PRESIDENT AND SECRETARY ARE MARRIED. FORM 990, PART VI, SECTION B, LINE 11 A DRAFT COPY OF THE FORM 990 IS APPROVED BY THE FINANCE COMMITTEE PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS ESTABLISHED A GRIEVANCE COMMITTEE TO ESTABLISH A CORRIDOR AND ACCESS FOR PERC EMPLOYEES TO THE BOARD OF DIRECTORS SHOULD ANY CONFLICTS OF INTEREST ARISE. THE GRIEVANCE COMMITTEE CONSISTS OF ONE PERC EMPLOYEE AND 2 PERC DIRECTORS. THESE INDIVIDUALS REPORT TO THE ENTIRE BOARD AT EACH BOARD MEETING (TWICE PER YEAR). TO DATE, THIS COMMITTEE HAS HAD NOTHING TO REPORT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMPENSATION IS REVIEWED AND ESTABLISHED ON AN ANNUAL BASIS. A NUMBER OF PERC DIRECTORS SIT ON OTHER NATIONAL NONPROFIT BOARDS AND HAVE AN ACCURATE ASSESSMENT OF CEO PAY FOR NONPROFIT LEADERS WHO HAVE SENIOR SCHOLARSHIP STATUS. THE CEO'S ANNUAL PERFORMANCE IS REVIEWED BY THE BOARD AT THE WINTER BOARD MEETING AND ANY MERIT PAY APPROVED TIES DIRECTLY TO THE PERCENTAGE GIVEN TO THE PERC STAFF AT THEIR ANNUAL YEAR-END MERIT REVIEW. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THESE DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION. FORM 990, PART IX, LINE 11G HONORARIA: PROGRAM SERVICE EXPENSES 256,300. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 256,300. RESEARCH AND FELLOWSHIPS: PROGRAM SERVICE EXPENSES 186,653. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 186,653. FUNDRAISING AND DEVELOPMENT: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 12,342. TOTAL EXPENSES 12,342. FORM 990, PART XI, LINE 2C THE OVERSIGHT PROCESS FOR THE AUDIT OF THE FINANCIAL STATEMENTS HAS NOT CHANGED FROM THE PRIOR YEAR.