J

Form

990
Please use IRS label pnntor or

Return of Organization Exempt From Income Tax

Under section 501(c ), 527, or 4947( a)(1) of the Internal Revenue Code ( except black lung benefit trust or private foundation) ^ The organization may have to use a copy of this return to sat isfy state reporting requirements and C Name of organization

i 2006
377-4000
EK] Accrual

Department of the Treasury Intern al Revenue Service

A For the 2006 calendar year, or tax year beginning

B Check if applicable

D Employer identification number

Address -]change

HE HEARTLAND INSTITUTE
Number and street (or P 0 box if mail is not delivered to street address)

36-3309812
Room/suite E Telephone number

Name Ocn
In El return Final Oretum

see
Specific Instrucbons

19 SOUTH LA SALLE STREET

City or town, state or country, and ZIP + 4

1 903

(312) 0 omer ^

F Accounting memos = Cash

=^mded
Application pending

H I C AGO

IL

60603

Section 501 ( c)(3) organizations and 4947 ( a)(1) nonexempt charitable trusts

must attach a completed Schedule A (Form 990 or 990 -EZ).

H and I are not apphcab/e to section 527 organizations. =Yes M No H(a) Is this a group return for affiliates?

G Website :
J

. HEARTLAND. ORG
501(c) ( 3

H(b) If 'Yes, enter number of affiliates ^

N/A

),4 Insert no) 0 4947(a)(1) or 0 527 H(c) Are all affiliates included? N/A Yes =No attach a list ) (If Is K Check here III, 0 If the organization is not a 509(a)(3) supporting organization and its gross - H(d) s this a separate return filed by an org anization covered by a g roup rulin g ? 0 Yes 0 No receipts are normally not more than $25,000. A return is not required, but If the organization chooses to file a return, be sure to file a complete return N/A I Grou p Exem ption Number ^ M Check ^ 1 if the organization is not required to attach Sch. B (Form 990, 990-EZ, or 990-PF) L Gross receipts Add lines 6b, 8b, 9b, and 10b to line 12 ^ 2 , 747 , 328. Organization type (checkonlyone) ^ L

Psirtt 1
cm 0 C.' 1 a b c d 2 U

Revenue - Expenses- and Chances in Net Assets or Fund Balances

Contributions , gifts, grants , and similar amounts received Contributions to donor advised funds Direct public support ( not included on line 1a ) Indirect public support ( not included on line 1a) Government contributions (grants ) ( not included on line 1a) 1a 1b 1c 1d

2,4 91,809.

a__

_Lj n

e Total ( add lines la through 1d) (cash $

3 4 5 6 a b c 7 8 a b c If 9
a

2 , 491 , 8 09 . noncash $

le
2 3 4 5

2,4 91,809.
187,267.

e^ 'c cc

a W

to % all

b c 10 a b c 11 12 13 14 15 16 17 18 19 20 21

Program service revenue including government fees and contracts (from Part VII , line 93 ) Membership dues and assessments Interest on savings and temporary cash investments Dividends and interest from securities 6a Gross rents 6b Less rental expenses Net rental income or (loss) Subtract line 6b from line 6a Other investment income ( describe ^ ( A) Securities Gross amount from sales of assets other 8a than inventory 8b Less cost or other basis and sales expenses 8c Gain or ( loss) (attach schedule) and (B) Net gain or ( loss) Combine line Bc , columns (A) Special events and activities (attach schedule ) If any amount is from gaming , check here ^ 9a of contnbuoons reported on line 1b) Gross revenue (not including $ I^ 9b Less direct expenses other th n fund line Net income or (loss ) from spe ial b a I 9 10a Gross sales of inventory , less e8 s and allowances 173 10b Less cost of goods sold attach schedule ) S ^ ct line 10b fro m line 10a Gross profit or (loss ) from sal s o Invento

25 , 279 .
42,973.

6c 7 ( B ) Other

8d

9c

AUG ..3 1 2II07

Other revenue (from Part VII, ne 10 ^ ^ p U ^^ Oc dT i 4 Total revenue . Add lines le Program services (from line 44 , column ( B)) Management and general (from line 44 , column (C)) Fundraising (from line 44, column (D)) Payments to affiliates ( attach schedule) Total ex p enses . Add lines 16 and 44 , column (A) Excess or (deficit ) for the year Subtract line 17 from line 12 Net assets or fund balances at beginning of year (from line 73 , column (A)) Other changes in net assets or fund balances ( attach explanation) Net assets or fund balances at end of year Combine lines 18, 19, and 20 LHA For Privacy Act and Paperwork Reduction Act Notice , see the separate instructions.

10c 11 12 13 14 15 16 17 18 19 20 21

2 , 747 , 328 .

3 , 921 , 949 .
176, 064 . 299 , 987

398 , 000 .

<1, 650 , 672 . 2 185 f 785 . 0 .

535 , 113 .
Form 990 (2006)

911-18-67

^r 1

Form'3 90(2006)
P Pt 11

THE HEART LAND INSTITUTE

36-3309812

Statement of Functional Expenses

All organizations must complete column (A) Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others (A) Total ( B) Program services ( C) Management and general ( D) Fundraising

Do not include amounts reported on line 6b, 8b, 9b, 10b, or 16 of Part /.
22a Grants paid from donor advised funds (attach schedule) (cash $ 0 noncash $ 0
2a

If this amount Includes foreign grants , check here ^ a

22b Other grants and allocations (attach schedule

(cash $ 1,175, 000. noncash$ 0.
^ 0 22b 1,175 If this amount includes foreign grants , check here

STATEMENT

000.

1,175,000

23 Specific assistance to individuals (attach schedule) 24 Benefits paid to or for members (attach schedule) _ 25a Compensation of current officers , directors, key employees , etc listed in Part V-A STMT 1 b Compensation of former officers , directors, key employees , etc listed in Part V-B c Compensation and other distributions , not included above , to disqualified persons ( as defined under section 4958(f)(1)) and persons described in section 4958 ( c)(3)(B) 26 Salaries and wages of employees not included on lines 25a , b, and c 27 Pension plan contributions not included on lines 25a, b, and c 28 Employee benefits not included on lines 25a27 29 Payroll taxes 30 Professional fundraising fees 31 Accounting fees 32 Legal fees 33 Supplies 34 Telephone 35 Postage and shipping

23 24

25a
25b

100 , 833.
0.

75 1 625.
0.

15 , 125.
0.

10,083.
0.

5c

26
27 28 29 30 31 32 33 34 35

779 , 235.

596,282.

82 , 835.

100,118.

38,4 51.
7,328. 439, 365. 99 , 678. 759 , 128. 370 537.

12 , 847.
6,159. 422, 792. 76 , 752. 738,330. 276, 827.

23,386.
508. 1,305. 9,968. 794. 4,129.

2 , 218.
661. 15,268. 12,958. 20 , 004. 89,581.

36 Occupancy
37 Equipment rental and maintenance 38 Printing and publications

36
37

38
39 40

39 Travel
40 Conferences , conventions , and meetings

41 Interest
42 Depreciation , depletion , etc. (attach schedule)

41
42

2 , 133.
8 , 2 77.

2 , 133.
8 , 277.

43 Other expenses not covered above (itemize): 43a a OTHER EXPENSES

14 , 642.

14 , 084.

558.

b SUBCONTRACTOR,

43b

c WRITERS, EDITORS
d e f g 44 Total functional expenses . Add lines 22a through 43g. (Organizations completing columns (B)-(D), carry these totals to lines 13-15)

43c
43d 43e 43f 43

603 393.

527 251.

27,604.

48,538.

44

4,398,000.

3,921 , 949.

176, 064.
11111i. = Yes N/A
N/A

299 , 987.
No

Joint Costs. Check ^ [J if you are following SOP 98-2. Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? N/A ; (ii) the amount allocated to Program services $ If 'Yes,* enter ( 1) the aggregate amount of these joint costs $
(111) the amount allocated to Management and general $ 623011
01-23-07

N/A

and ( iv) the amount allocated to Fundraising $

Form 990 (2006)

THE HEARTLAND INSTITUTE Formt990 006 Part 11t Statement of Program Service Accomplishments (see the instructions)

36-3309812

Page 3

Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments.

What is the organization 's primary exempt purpose? ^ RESEARCH & WRITING ON PUBLIC POLICY

ISSUES

Program Service Expenses

(Required for 501 (c)(3) and (4) orgs , and 4947( a)(1) trusts, but optional for others )

All organizations must describe their exempt purpose achievements in a clear and concise manner . State the number of clients served , publications issued, etc. Discuss achievements that are not measurable . (Section 501 (c)(3) and (4) organizations and 4947 (a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others .)

a PUBLICATIONS - RESEARCH & WRITING ON PUBLIC POLICY ISSUES. HEARTLAND PRODUCED FOUR NEWSLETTERS , FOUR MONTHLY NEWSPAPERS TWO BOOKS AND ONE BOOKLET IN 2006.

(Grants and allocations

If this amount includes forei g n g rants , check here

EJ

2,070 , 797 .

b INTERNET PROJECTS - HEARTLAND OPERATED A FREE WEB-BASED

RESEARCH SERVICE IN 2006 AND HAD AN EXTENSIVE INTERNET

PRESENCE.

(Grants and allocations

If this amount includes forei g n g rants , check here

284 , 288 .

c MEMBER SERVICES - SEMINARS AND EVENTS FOR HEARTLAND MEMBERS AND THE PUBLIC, A MONTHLY MEMBERSHIP NEWSLETTER AND SIMILAR ACTIVITIES.

(Grants and allocations

If this amount includes foreig n g rants , check here

295,872.

d SPEAKERS BUREAU - HEARTLAND OFFERS ITS SENIOR FELLOWS AND STAFF MEMBERS AS SPEAKERS FOR EVENTS HOSTED BY OTHER ORGANIZATIONS. THE SPEAKERS BUREAU PRODUCED 80 SPEAKING ENGAGEMENTS IN 2006.

If this amount includes forei g n g rants , check here $ (Grants and allocations schedule) SEE STATEMENT 3 e Other program services (attach 1 , 15 0 , 0 0 0 . $ If this amount includes forei g n rants check here (Grants and allocations Total of Program Service Expenses (should equal line 44, column (B), Program services) f

^ ^

EJ 0 ^

95 , 992.
25,000. 2,771,949. Form 990 (2006)

623021 01-18-07

THE HEARTLAND ForrrP990 2006 Part IV Balance Sheets (See the instructions.)

INSTITUTE
(A) Beginning of year 1

36-3309812
(B) End of year

Page 4

Note : Where required, attached schedules and amounts within the description column should be for end-of-year amounts only.

45 46

Cash - non-interest -beanng Savings and temporary cash investments

050 , 147 -

_ 47a 47b 8 , 468. 121 , 791.

45 46

500,352.

47 a Accounts receivable b Less : allowance for doubtful accounts

47c

8 , 468.

48 a Pledges receivable 48a 48b b Less : allowance for doubtful accounts 49 Grants receivable 50 a Receivables from current and former officers, directors , trustees, and key employees b Receivables from other disqualified persons (as defined under section 4958 (f)(1)) and persons described in section 4958 (c)(3 (B) .. 51 a Other notes and loans receivable 51a 51b b Less allowance for doubtful accounts 52 53 54 a b 55 a Inventories for sale or use Prepaid expenses and deferred charges Investments - publicly- traded securities Investments - other securities Investments - land, buildings, and equipment : basis 55a 55b .. 57a

48c 49 50a 50b 51 c 52 53

^ ^

Cost Cost

FMV FMV

27 , 103. 980,390. 54a 54b

18,222.

b Less : accumulated depreciation 56 Investments - other 57 a Land , buildings , and equipment: basis b Less : accumulated depreciation Other assets , including program - related investments 58

55c 55

57b

159,730. 12 5,071. )
2

41,243. 57c 6 , 000.

2 26,674.

34,659. 6 , 000. 567 , 701. 32,588.

(describe lo- SECURITY DEPOSIT

59 60 61 62 Total assets must eq ual line 74 ) . Add lines 45 throu g h 58 Accounts payable and accrued expenses Grants payable Deferred revenue Loans from officers , directors , trustees , and key employees 63 64 a Tax-exempt bond liabilities .. b Mortgages and other notes payable Other liabilities (describe ^ 65

58
59

40,889.

60
61 62 63 64a 64b

) 40 , 889.

65 66 32 , 588.

Total liabilities . Add lines 60 throu g h 65 66 Organizations that follow SFAS 117, check here ^ 67 through 69 and lines 73 and 74.

and complete lines

C
m LL

67 68

Unrestricted Temporarily restricted

185,785. 2 , 000,000.

67 68
69

535,113. 0.

69 Permanently restricted Organizations that do not follow SFAS 117, check here ^ 0 and complete lines 70 through 74. 70 Capital stock, trust principal, or current funds 71 Paid-in or capital surplus , or land , building, and equipment fund 72 Retained earnings , endowment , accumulated income , or other funds 73 Total net assets or fund balances . Add lines 67 through 69 or lines 70 through 72 (Column (A) must equal line 19 and column ( B) must equal line 21 ) Total liabilities and net assets/fund balances . Add lines 66 and 73 74

70 71 72

2 , 185 , 785.
2 , 226 , 674.

73
74

535 , 113. 567 r 7'0_1_.

Form 990 (2006)

623031 01-2407

36-3309812 THE HEARTLAND INSTITUTE 'Form'990 2006 Pat 1V-A Reconciliation of Revenue per Audited Financial Statements With Revenue per Return (Seethe instructions)
a b 1 2 3 4 C d 1 2 e Total revenue, gains , and other support per audited financial statements Amounts included on line a but not on Part I, line 12: Net unrealized gains on investments Donated services and use of facilities Recoveries of prior year grants Other (specify): Add lines b1 through b4 Subtract line b from line a Amounts included on Part I, line 12, but not on line a: Investment expenses not included on Part I, line 6b Other (specify): Add lines dl and d2 Total revenue Part I line 12) . Add lines c and d a

Page 5

2,747,328.

0.
c dl d2 ^ d e a b1 b2 b3 b4 _ dl d2 ^ d e 0 b c 0 2 4

2 , 747,328.

0 . 747 , 328.

P
a b 1 2 3 4 c d 1 2 e

JV-B

Reconciliation of Expenses per Audited Financial Statements With Expenses per Return

Total expenses and losses per audited financial statements Amounts included on line a but not on Part I, line 17: Donated services and use of facilities Prior year adjustments reported on Part I, line 20 Losses reported on Part I, line 20 Other (specify): Add lines b1 through b4 Subtract line b from line a Amounts included on Part I, line 17, but not on line a: Investment expenses not included on Part I, line 6b Other (specify): Add lines dl and d2 Total ex penses Part I line 17) Add lines c and d

, 398,000.

1 4,398,000.

4 , 398 , 000.
(E) Expense account and other allowances

Part VA

Current Officers, Directors, Trustees, and Key Employees (List each person who was an officer, director, trustee,
or key emolovee at any time durlno the year even if they were not compensated.) (See the instructions.)

(A) Name and address

(B) Title and average hours per week devoted to

position

(C) Compensation (If not paid , enter

-0-.

(D)Contnbutons to employee benefit plans 6 deferred compensation plans

----------------------------------------------------------------SEE STATEMENT 4

100

803.

0.

0.

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------Form 990 (2006)

623041 01-18-07

Form'990 (2006)

THE HEARTLAND

INSTITUTE

36-3309812

Paae6

Part V-A
75 a

Current Officers, Directors, Trustees, and Key Employees (continued

^ 0

Yes No

Enter the total number of officers, directors, and trustees permitted to vote on organization business at board

meetings

b Are any officers, directors, trustees, or key employees listed in Form 990, Part V-A, or highest compensated employees listed in Schedule A, Part I, or highest compensated professional and other independent contractors listed in Schedule A, Part II-A or II-B, related to each other through family or business relationships? If 'Yes,' attach a statement that identifies the individuals and explains the relationship(s) C Do any officers, directors, trustees, or key employees listed in Form 990, Part V-A, or highest compensated employees listed in Schedule A, Part I. or highest compensated professional and other independent contractors listed in Schedule A, Part IIA or II-B, receive compensation from any other organizations, whether tax exempt or taxable, that are related to the organization? See the instructions for the definition of 'related organization.' If 'Yes,' attach a statement that includes the information described in the instructions. Does the org anization have a written conflict of interest policy?

75b

75c 75d

X X

Part V411 Former Officers. Directors . Trustees . and Kev Emolovees That Received Compensation or Other
Benefits (If any former officer, director, trustee, or key employee received compensation or other benefits (described below) during the year, list that person below and enter the amount of compensation or other benefits in the appropriate column. See the instructions.) ( E) Expense Compensation ( D) contnbut ons to ( C) employee benefit (A) Name and address (B) Loans and Advances (if not paid, account and pe pl ans s tion rred enter -0-) NONE com nsa ion p lans other allowances ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Pad V1 I Other information (See the instructions)

76 77 78 a b 79 80 a b Did the organization make a change in its activities or methods of conducting activities? If ' Yes,' attach a detailed statement of each change Were any changes made in the organizing or governing documents but not reported to the IRS? If 'Yes,' attach a conformed copy of the changes. Did the organization have unrelated business gross income of $ 1,000 or more during the year covered by this return? If 'Yes ,' has it filed a tax return on Form 990 -T for this year? Was there a liquidation , dissolution , termination , or substantial contraction during the year? If 'Yes,' attach a statement Is the organization related (other than by association with a statewide or nationwide organization ) through common membership , governing bodies , trustees , officers , etc., to any other exempt or nonexempt organization? N/A If 'Yes ,' enter the name of the organization 0, 76 77 78a 78b 79 80a

Yes No
X X X X X X

and check whether it is 0 exempt or = nonexempt 81 a Enter direct or indirect political expenditures . (See line 81 instructions.) 81a 0 b Did the organization file Form 1120 - POL for this year?

1b

Form 990 (2006)

623161/01-18-07

'Form'990 2006 THE HEARTLAND INSTITUTE Part vl Other Information (continued

82 a b

36-3309 812

Pa e7 Yes No
X

83 a b 84 a b 85 b

Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental value? If Yes,' you may indicate the value of these items here. Do not include this amount as revenue in Part I or as an expense in Part II. N/A 82b (See instructions in Part III.) Did the organization comply with the public inspection requirements for returns and exemption applications? Did the organization comply with the disclosure requirements relating to quid pro quo contributions? Did the organization solicit any contributions or gifts that were not tax deductible? If Yes,' did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? N/A N/A 501(c)(4), (5), or(6) organizations. a Were substantially all dues nondeductible by members?

82a

83a 83b 84a 84b

X X X

85a
85b

N/A Did the organization make only in-house lobbying expenditures of $2,000 or less? If Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year. N/A _ 85c C Dues, assessments, and similar amounts from members N/A d Section 162(e) lobbying and political expenditures 85d N/A e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices 85e N/A 1 Taxable amount of lobbying and political expenditures Oine 85d less 85e) 85f N/A g Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? .. 501(c)(7) organizations. Enter: a Initiation fees and capital contributions included on

85

N/A

85h

86

line 12

86a

N/A

N/A 86b b Gross receipts, included on line 12, for public use of club facilities N/A 87 87a 501(c)(12) organizations. Enter: a Gross income from members or shareholders b Gross income from other sources. (Do not net amounts due or paid to other sources N/A 87b against amounts due or received from them.) 88 a At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If Yes,' complete Part IX b At any time during the year, did the organization, directly or indirectly, own a controlled entity within the meaning of section 512(b)(13)? If 'Yes,' complete Part XI 89 a 501(c)(3) organizations. Enter: Amount of tax imposed on the organization during the year under: 0 . , section 4955 ^ 0 . ; section 4912 ^ section 4911110, 501(c)(4) organizations. Did the organization engage in any section 4958 excess benefit b 501(c)(3) and transaction during the year or did it become aware of an excess benefit transaction from a prior year? If Yes,' attach a statement explaining each transaction c d e f g

88a ^ 0 88b

X X

89b

90 a b Number of employees employed in the pay period that includes March 12, 2006 91 a The books are in care of ^ THE HEARTLAND INSTITUTE

Enter: Amount of tax imposed on the organization managers or disqualified persons during the year under 0 . sections 4912, 4955, and 4958 . ^ 0 . Enter: Amount of tax on line 89c, above, reimbursed by the organization . .. ^ All organizations. At any time during the tax year, was the organization a party to a prohibited tax shelter transaction? All organizations. Did the organization acquire a direct or indirect interest in any applicable insurance contract? For supporting organizations and sponsoring organizations maintaining donor advised funds. Did the supporting organization, or a fund maintained by a sponsoring organization, have excess business holdings at any time during the year? list the states with which a copy of this return is filed ^ IL 90b

89e 891 89

X X X 14

Telephone no ^

( 312)

377-4000
Yes 91 b No X

t_ocatedat ^ 19 SOUTH LA SALLE STREET, #903,

CHICAGO,

IL

ZIP+4 ^ 6 0603

b At any time during the calendar year, did the organization have an interest in or a signature or other authority over a financial account in a foreign country (such as a bank account, securities account, or other financial account)? N/A If Yes,' enter the name of the foreign country ^ See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank

Form 990 (2006)

623162 / 01-18-07

Form 990

THE HEARTLAND INSTITUTE

36-3309812
91c
.

Paoe8
Yes No X

C At any time during the calendar year, did the organization maintain an office outside of the United States? N/A If 'Yes,' enter the name of the foreign country ^ 92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041 - Check here ^ I 9 and enter the amount of tax-exempt interest received or accrued during the tax year I Part Vii Analysis of Income-Producina Activities (See the instructions.) Note : Enter gross amounts unless otherwise indicated 93 Program service revenue:
514

^ Q

N/A
(E)

(A) Business code

(B) Amount

^)_ s,o code

Amount

Related or exempt function income

a PUBLICATIONS/RESEARCH b POLICY BOT/INTERNET c PUBLICATIONS/RESEARCH

d SPEAKERS BUREAU e
f Medicare/Medicaid payments g Fees and contracts from government agencies 94 Membership dues and assessments 95 Interest on savings and temporary cash investments 96 Dividends and interest from securities 97 Net rental income or (loss) from real estate: a debt-financed property b not debt-financed property 98 Net rental income or (loss) from personal property 99 Other investment income 100 Gain or (loss) from sales of assets other than inventory 101 Net income or (loss) from special events 102 Gross profit or (loss) from sales of inventory 103 Other revenue: a b
c

11110

61,260.

126,007.

25,279. 42,973.

e
104 Subtotal (add columns (B), (D), and (E)) 105 Total (add line 104, columns (B), (D), and (E)) Note : Line 105 plus line le, Part 1, should equal the amount on line 1 2, Part I. 61 , 2 6 0. 1

0.1 ^

194,259. 255,519.

PartV 1
Line No .

Relationship of Activities to the Accomplishment of Exempt Purposes (Seethe instructions)

Explain how each activity for which income is reported in column ( E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes ( other than by providing funds for such purposes)

93A 93B 94 95

ANNUAL FUNDRAISER & OTHER PUBLIC EVENTS EDUCATES ATTENDEES AS WELL AS H EARTLAND DISSEMINATES ITS RESEARCH THRU PUBLICATIONS & PUBLIC EVENTS. EMBER DUES QUALIFY MEMBERS FOR FREE PUBLICATIONS & EVENT DISCOUNTS. INTEREST IS EARNED INCIDENTAL TO FUNDRAISING & PROGRAM ACTIVITIES.

(a) Did the organization, during the year, receive any funds, directly or indirectly, (b) Did the organization, during the year, pay premiums, directly or indirectly, on Note : If "Yes" to (b). file Form 8870 and Form 4720 (see instructions).

623163 01-18-07

36-3309812 'F8rm'990 2006 THE HEARTLAND INSTITUTE Information Regarding Transfers To and From Controlled Entities . Complete only if the organization is a Part X1
controlling organization as defined in section 512(b)(13). 106 N/A

Page 9

Yes No
Did the reporting organization make any transfers to a controlled entity as defined in section 512(b)(13) of the Code? If 'Yes,' com plete the schedule below for each controlled entity . (A) Name , address , of each controlled entity --------------------------------(B) Employer Identification Number (C) Description of transfer (D) Amount of transfer

-----------------------------------------------------------------

-----------------------------------------------------------------

---------------------------------

Totals

Yes No
107 Did the reporting organization receive any transfers from a controlled entity as defined in section 512(b)(13) of the Code? If 'Yes,' com plete the schedule below for each controlled entity . (A) Name, address, of each controlled entity ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------(B) Employer Identification Number (C) Description of transfer (D) Amount of transfer

Totals

Yes No
108 Did the organization have a binding written contract in effect on August 17, 2006, covering the interest, rents, royalties, and annuities described in q uestion 107 above?
Under penalties of perjury , I declare that I have examined this return, Including accompanying schedules and statements , and to the best of my knowledge and belief, it is true, correct,
and complete Lon of preparer (other than officer) Is based on all information of which preparer has any knowledge

Please Sign Here ' Sign ure o Icer ^! to Check if

e AR Date

na Type or print name ar(d title

Paid

Preparer ' s Use Only

Preparers signature
Frm'sname self-employ ei: d

Preparer's SSN or PTIN (See Gen Inst )Q

a dress,

JAMES F. SEXTON & ASSOCIATES, ' 941 N. PLUM GROVE RD STE A IL 60173 SCHAUMBURG

8t07/07 employed ^ 0 LTD . EIN ^

Phoneno ^ ( 847 ) 605-0700

Form 990 (2006)

623164/01-26-07

'SCWEDULE A' (Form 990 or 990-EZ)

Department of the Treasury Internal Revenue Service

Organization Exempt Under Section 501(c)(3)

(Except Private Foundation ) and Section 501(e), 501(f), 501(k), 501(n ), or 4947( a)(1) Nonexempt Charitable Trust

OMB No 1545-7

Supplementary Information-See separate instructions.)

^ MUST be completed by the above organizations and attached to their Form 990 or 990-EZ

2
to (de Connbeutons & plans de f end

00

Name of the organization

THE HEARTLAND

INSTITUTE

Employer Identificatlc number 36 3309812

Part I

Compensation of the Five Highest Paid Employees Other Than Officers, Directors, and Trustees
(see nane 2 of the instructions List each one If there are none enter 'None

(a) Name and address of each employee paid more than $50,000

(b) Title and average hours per week devoted to position

(c) Compensation

compensation

( e) Expense account and other allowances

RESIDENT 40.00 DIANE C ._ BAST ___ _ _________ __ _ VICE PRESIDE 900 EAST W ILMETTE RD #124 PALATINE I 40.00 LATREECE VANKINSCOTT PUBLISHER --------------------------40.00 5127 W GLADYS FLOOR 2 CHICAGO IL SEAN D. PARNELL VP-EXTERNAL -------------------------------40.00 1621 WHITEHALL CT. WHEELING IL RALPH W. CONNER PUBLISHER 40.00 '3 1
-------------------------900 EAST WILMETTE RD #124 PALATINE I I
Total number of other employees paid over $50,000 ^ 0

JOSEPH L.

BAST

100 , 833. 80 , 833. 66 , 579. FAIRS 82 , 051. 65,000.

Part II-A

Compensation of the Five Highest Paid Independent Contractors for Professional Services (See page 2 of the instructions List each one (whether individuals or firms) If there are none , enter 'None *)
(a) Name and address of each independent contractor paid more than $50,000 1 (b) Type of service I (c) Compensation

-NO--NE-----------------------------------------

Total number of others receiving over

^ 0 $50,000 for professional services Highest Paid Independent Contractors for Other Services Compensation of the Five Part H1-B (List each contractor who performed services other than professional services, whether individuals or
firms If there are none, enter None.' See page 2 of the instructions ) (a) Name and address of each independent contractor paid more than $50,000 (b) Type of service I ( c) Compensation

-------------------------------------------NONE

Total number of other contractors receiving over $50,000 for other services

623101/0-113-07

LHA For Paperwork Reduction Act Notice , see the Instructions for Form 990 and Form 990-EZ.

Schedule A (Form 990 or 990-EZ) 2006

' Schedule A (Form 990 or 990-EZ) 2006 THE HEARTLAND INSTITUTE Part W1[
1

36-3309812

Paget

Statements About Activities (See page 2 of the instructions)

Yes No

a b c d e 3 a b c d 4 a b c d e f g

During the year, has the organization attempted to influence national, state, or local legislation, including any attempt to influence public opinion on a legislative matter or referendum? If 'Yes, enter the total expenses paid or incurred in connection with the (Must equal amounts on line 38, Part VI-A, or lobbying activities ^ $ $ line i of Part VI-B) Organizations that made an election under section 501(h) by filing Form 5768 must complete Part VI-A Other organizations checking 'Yes' must complete Part VI-B AND attach a statement giving a detailed description of the lobbying activities During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any substantial contributors, trustees, directors, officers, creators, key employees, or members of their families, or with any taxable organization with which any such person is affiliated as an officer, director, trustee, majority owner, or principal beneficiary? (If the answer to any question is "Yes, attach a detailed statement explaining the transactions) Sale, exchange, or leasing of property? Lending of money or other extension of credit? Furnishing of goods, services, or facilities? Payment of compensation (or payment or reimbursement of expenses if more than $1,000)? Transfer of any part of its income or assets? Did the organization make grants for scholarships, fellowships, student loans, etc ? (it 'Yes,' attach an explanation of how the organization determines that recipients qualify to receive payments ) Dd the organization have a section 403(b) annuity plan for its employees? Did the organization receive or hold an easement for conservation purposes, including easements to preserve open space, the environment, historic land areas or historic structures? If 'Yes' attach a detailed statement Did the organization provide credit counseling, debt management, credit repair, or debt negotiation services? Did the organization maintain any donor advised funds? If 'Yes," complete lines 4b through 4g If 'No,' complete lines 4f and 4g Did the organization make any taxable distributions under section 4966? .. . _ Did the organization make a distribution to a donor, donor advisor, or related person? Enter the total number of donor advised funds owned at the end of the tax year Enter the aggregate value of assets held in all donor advised funds owned at the end of the tax year Enter the total number of separate funds or accounts owned at the end of the year (excluding donor advised funds included on line 4d) where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts Enter the aggregate value of assets in all funds or accounts included on line 4f at the end of the tax year

2a 2b 2c 2d 2e 3a 3b 3c 3d 4a 4b 4c

X X X X X X X X X X X X 0 0 0 0

^ ^ ^ ^

Schedule A (Form 990 or 990 -EZ) 2006

623111 01-18-07

' Schebule A JForm 990 or 990-EZ) 2006 THE HEARTLAND Part 1Y

INSTITUTE

36-3309812

Page 3

Reason for Non - Private Foundation Status (See pages 4 through 7 of the instructions )

I certify that the organization is not a private foundation because it is: (Please check only ONE applicable box ) A church, convention of churches, or association of churches Section 170(b )(1)(A)(i). 5 6 El A school. Section 170 ( b)(1)(A)(ii) (Also complete Part V ) 7 0 A hospital or a cooperative hospital service organization Section 170 ( b)(1)(A)(m) 8 0 A federal, state, or local government or governmental unit. Section 170(b)(1)(A)(v) 9 L1 A medical research organization operated in conjunction with a hospital Section 170 ( b)(1)(A)(in) Enter the hospital's name, city, and state ^ 10 El An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 170 (b)(1)(A)(iv) (Also complete the Support Schedule in Part IV-A ) An organization that normally receives a substantial part of its support from a governmental unit or from the general public. 11a El Section 170(b)(1)(A)(vi) (Also complete the Support Schedule in Part IV-A ) 11b 0 A community trust. Section 170(b)(1)(A )( vi). (Also complete the Support Schedule in Part IV-A ) OX An organization that normally receives ( 1) more than 33113% of its support from contributions, membership fees, and gross 12 receipts from activities related to its charitable , etc , functions - subject to certain exceptions , and (2 ) no more than 33 1/3% of its support from gross investment income and unrelated business taxable income ( less section 511 tax) from businesses acquired by the organization after June 30, 1975 . See section 509(a )( 2). (Also complete the Support Schedule in Part IV-A ) 13 0 An organization that is not controlled by any disqualified persons ( other than foundation managers ) and otherwise meets the requirements of section 509(a )( 3) Check the box that describes the type of supporting organization: El Type III-Other El Type I = Type 11 0 Type Ill-Functionally Integrated Provide the following information about the supported organizations . (See page 7 of the instructions ) (a) Name(s) of supported organization(s) (b) Employer identification number (EIN) (c) Type of organization (described in lines 5 through 12 above or IRC section) (d) Is the supported organization listed in the supporting organization's governing documents? Yes No (e) Amount of support

Total 14 L

00.1 An organization organized and operated to test for public safety Section 509(a )( 4) (See page 7 of the instructions ) Schedule A (Form 990 or 990 -EZ) 2006

623121 01-18-07

'S'chebuleA(Form 990or990-EZ)2006 THE HEARTLAND INSTITUTE 36-3309812 Support Schedule (Complete only if you checked a box on line 10, 11, or 12.) Use cash method of accounting. P8 1/r
Note : You may use the worksheet in the Instructions for convertin from the accrual to the cash method of accounting. Calendar year ( or fiscal year beginning In) ^ (a) 2005 ( b) 2004 (c) 2003 ( d) 2002 ( e) Total

Page 4

15

Gifts , grants, and contributions

grants See line28ctudeunusual

Membershi p

2 r 242 , 948.

1 , 753 , 416.

1 , 546 , 170.

1 , 254,137.

6 , 796 , 671.

16
17

fees received

29,943.

33 , 196.

28 , 945.

28 , 516.

120,600.

Gross receipts from admissions,

merchandise sold or services performed , or furnishing of facilities in any activity that is related to the organization's

charitable , etc., purpose

18 Gross income from interest,
dividends , amounts received from payments on securities loans (section 512 (a)(5)), rents , royalties, and unrelated business taxable income (less section 511 taxes) from businesses acquired by the

246 , 591.

211,980.

316,026.

329,152.

1 , 103,749.

organization after June 30 , 1975

19 20 Net income from unrelated business activities not included in line 18 Tax revenues levied for the organization ' s benefit and either paid to it or expended on its behalf The value of services or facilities furnished to the organization by a governmental unit without charge Do not include the value of services or facilities generally furnished to the public without charge

1,401.

2,819.

1 , 700.

177.

6 , 097.

<113,680. >

<93,628. >

<92,239. >

<59,213. >

<358,760.:

21

22
23 24 25 26 b

Other income . Attach a schedule .

Do not include gain or ( loss) from sale of capital assets Total of lines 15 through 22 Line 23 minus line 17 Enter 1 % of line 23

SEE

STATEME T 5

15 2,407 , 203. 1F922 2, 160, 612. 1,710 24,072, 19

, 000.
783. 803. , 228. 1 800 602. 1 , 552 , 769. 1, 484, 576. 1, 223, 617. 18 , 006, 15,528.

15 , 000. 7,683,357. 6, 579, 608.

c d I e 27

N/A Organizations described on lines 10 or 11: a Enter 2% of amount in column ( e), line 24 ^ 26a Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental unit or publicly supported organization ) whose total gifts for 2002 through 2005 exceeded the amount shown in line 26a N/A Do not file this list with your return . Enter the total of all these excess amounts ^ 26b N/A 25c Total support for section 509 (a)(1) test Enter line 24, column (e) ^ for lines19 Add Amounts from column ( e) 18 N/A 26b ^ 26d 22 N/A ^ He Public support ( line 26c minus line 26d total ) _ N/A Public su pp ort p ercenta g e ( line He ( numerator ) divided by line 26c ( denominator )) ^ 261 Organizations described on line 12 : a For amounts included in lines 15, 16, and 17 that were received from a 'disqualified person, prepare a list for your records to show the name of, and total amounts received in each year from, each 'disqualified person ' Do not file this list with your return . Enter the sum of such amounts for each year

309, 392. (2002) 239,381. 2, 869, 522. (2004) 349, 633. (2003) (2005) b For any amount included in line 17 that was received from each person (other than 'disqualified persons'), prepare a list for your records to show the name of,
and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000. (Include in the list organizations described in lines 5 through 11b, as well as individuals ) Do not file this list with your return . After computing the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these differences (the excess amounts) for each year 0. 0 . (2003) 0. (2004) (2005) 0 (2002) 120,600. 6,796,671. 16 c Add. Amounts from column (e) for lines 15 8,021,020. 1, 103, 749. ^ 27c 17 21 20 3,767,928. 0. ^ 27d 3,767,928. and line 27b total d Add: Line 27a total 4,253,092. ^ 27e e Public support (line 27c total minus line 27d total) 7,683 , 357. f Total support for section 509(a)(2) test Enter amount on line 23, column (e) 2711 ^
g Public support percentage ( line 27e ( numerator) divided by line 27f (denominator)) ^ _L ^ 27h h Investment income oercentaae ( line 18 . column (e) (numerator) divided by line 2711 (denominator))

55.3546, .0794,

28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 2002 through 2005, prepare a list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief description of the nature of the grant Do not file this list with your return . Do not include these grants in line 15
623131 01-18-07 NONE Schedule A (Form 990 or 990-EQ 2006

Schedule A (Form 990 or 990-EZ ) 2006 THE HEARTLAND INSTITUTE Private School Questionnaire (See page 9 of the instructions) pan V (To be completed ONLY by schools that checked the box on line 6 in Part IV)
29 30 31 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter , bylaws , other governing instrument , or in a resolution of as governing body? Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures , catalogues, and other written communications with the public dealing with student admissions , programs , and scholarships? . Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students , or during the registration period if it has no solicitation program , in a way that makes the policy known to all parts of the general community it serves? It 'Yes,' please describe ; if 'No,' please explain ( If you need more space , attach a separate statement )

36-3309812 N/A

Page 5

Yes No 29 30

31

32

Does the organization maintain the following a Records indicating the racial composition of the student body, faculty, and administrative staff? b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? c Copies of all catalogues , brochures , announcements , and other written communications to the public dealing with student admissions , programs , and scholarships? d Copies of all material used by the organization or on its behalf to solicit contributions? If you answered 'No' to any of the above , please explain . ( If you need more space , attach a separate statement )

32a 32b 32c 32d

33 a b c d e t

Does the organization discriminate by race in any way with respect to Students ' rights or privileges? Admissions policies? _ Employment of faculty or administrative staff? Scholarships or other financial assistance? Educational policies? Use of facilities?

33a 33b 33c 33d 33e 3311

g Athletic programs?

..

33
33h

h Other extracurricular activities? If you answered 'Yes' to any of the above , please explain ( If you need more space , attach a separate statement )

34 a Does the organization receive any financial aid or assistance from a governmental agency? b Has the organization ' s right to such aid ever been revoked or suspended ? If you answered 'Yes' to either 34a or b , please explain using an attached statement Does the organization certify that it has complied with the applicable requirements of sections 4 01 through 4 05 of Rev Proc 75-50, 35 1975-2 C B 587 , covering racial nondiscrimination? It 'No,* attach an explanation

34a 34b

35 Schedule A (Form 990 or 990-EZ) 2005

623141 01-18-07

' Scheiule A (Form 990 or 990-EZ) 2006 THE HEARTLAND INSTITUTE Part VI-A Lobbying Expenditures by Electing Public Charities ( See page 10 of the instructions)
(To be completed ONLY by an eligible organization that filed Form 5768)

36-3309812 Pa g e 6 N/A

Check 11111- a u IT the org anization belon g s to an attmatea g rou p .

cneck 1111- o u if you che cked a and limited contror P rovisions a pply.
Affiliated )group totals To be completed for all electing organizations

Limits on Lobbying Expenditures

(The term 'expenditures' means amounts paid or incurred 36 37 38 39 40 41 Total lobbying expenditures to influence public opinion (grassroots lobbying) Total lobbying expenditures to influence a legislative body (direct lobbying) Total lobbying expenditures (add lines 36 and 37) Other exempt purpose expenditures . _ Total exempt purpose expenditures (add lines 38 and 39) Lobbying nontaxable amount Enter the amount from the following table If the amount on line 40 Is The lobbying nontaxable amount is Not over $500,000 Over $500,000 but not over $1,000,000 Over $1,000,000 but not over $1,500,000 Over $1,500,000 but not over $17,000,000 , Over $17,000,000 20% of the amount on line 40 $100,000 plus 15% of the excess over $500,000 $175,000 plus 10% of the excess over $1,000,000 $225,000 plus 5% of the excess over $1,500,000 $1,000,000 41

N/A
36 37 38 39 40

42 Grassroots nontaxable amount (enter 25% of line 41) 43 Subtract line 42 from line 36 Enter -0- if line 42 is more than line 36 44 Subtract line 41 from line 38 Enter -0- if line 41 is more than line 38 Caution : If there is an amount on either line 43 or line 44, you must file Form 4720.

42 43 44

4-Year Averaging Period Under Section 501(h)

(Some organizations that made a section 501(h) election do not have to complete all of the five columns below See the instructions for lines 45 through 50 on page 13 of the instructions ) Lobbying Expenditures During 4-Year Averaging Period Calendar year ( or fiscal year beginning in) 45 Lobbying nontaxable (a) 2006 (b ) 2005 ( c) 2004 (d) 2003 N/A (e) Total

amount
46 Lobbying ceiling amount ( 150% of line 45 (e )) 47 Total lobbying

0.
0

expenditures
48 Grassroots nontaxable

0
0
0

amount 49 Grassroots ceiling amount

150% of line 48 (e )) 50 Grassroots lobbying

expenditures Path Y[-B Lobbying Activity by Nonelecting Public Charities

(For reporting only by organizations that did not complete Part Vl-A) (See page 13 of the instructions During the year, did the organization attempt to influence national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of a Volunteers b Paid staff or management (Include compensation in expenses reported on lines c through h.) c Media advertisements . d Mailings to members, legislators, or the public e Publications , or published or broadcast statements . . f Grants to other organizations for lobbying purposes g Direct contact with legislators, their staffs , government officials, or a legislative body . h Rallies, demonstrations , seminars , conventions, speeches, lectures , or any other means I Total lobbying expenditures (Add lines c through h.) . If Yes to any of the above , also attach a statement giving a detailed description of the lobbying activities N/A Amount

01-18-07

Schedule A (Form 990 or 990 -EZ) 2006

'Sbhedule A (Form 990'or 990-EZ) 2006 THE HEARTLAND INSTITUTE 36-3309812 Part VU Information Regarding Transfers To and Transactions and Relationships With Noncharitable
Exempt Organizations (See page 13 of the instructions)
51 a Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501 (c)(3) organizations) or in section 527, relating to political organizations? Transfers from the reporting organization to a noncharitable exempt organization of. (1) Cash (II) Other assets Other transactions(I) Sales or exchanges of assets with a nonchantable exempt organization (II) Purchases of assets from a nonchantable exempt organization (iii) Rental of facilities, equipment, or other assets (iv) Reimbursement arrangements (v) Loans or loan guarantees (vi) Performance of services or membership orfundraising solicitations _ Sharing of facilities, equipment, mailing lists, other assets, or paid employees If the answer to any of the above is 'Yes; complete the following schedule Column (b) should always show the fair market value of the goods, other assets, or services given by the reporting organization If the organization received less than fair market value in any transaction or sharing arrangement, show in column (d) the value of the goods, other assets, or services received (b) Amount involved (c) Name of noncharitable exempt organization

Page 7

Yes 51a(i) a(Ii) b(I) b(ii) b(Iii) b(iv) b(v) b(vi) c

No X X X X X X X X X

c d

N/A

( a) Line no

(d) Description of transfers, transactions, and sharing arrangements

52 a

Is the organization directly or indirectly affiliated with , or related to, one or more tax-exempt organizations described in section 501 ( c) of the ^ El Yes Code ( other than section 501 (c)(3)) or in section 527?

EXI No

THE^HEARTLAND

INSTITUTE

36-3309812

FORM 990

OFFICER COMPENSATION ALLOCATION PART II, LINE 25A

STATEMENT

NAME OF OFFICER, JOSEPH BAST A. B. C.

ETC.

COMPENSATION 100,803. 75,603. 15,120. 10,080.

EMPLOYEE BEN. PLANS

EXPENSE ACCOUNTS

TOTALS 100,803. 75,603. 15,120. 10,080.

PROGRAM SERVICES MANAGEMENT AND GENERAL FUNDRAISING

TOTAL PROGRAM SERVICES TOTAL MANAGEMENT AND GENERAL TOTAL FUNDRAISING TOTAL OFFICER, ETC., COMPENSATION INCLUDED ON PART II, LINE 25A

75,603. 15,120. 10,080.

100,803.

STATEMENT(S)

THE'HEARTLAND INSTITUTE

36-3309812
STATEMENT

FORM 990

CASH GRANTS AND ALLOCATIONS TO OTHERS

CLASS OF ACTIVITY/DONEE'S NAME AND ADDRESS SCHOOL REFORM FREE ENTERPRISE EDUCATION INSTITUTE 12309 BRIARBUSH LANE POTOMAC, MD 20854 ENVIRONMENT & CLIMATE MOVING PICTURE INSTITUTE 260 WEST 54TH STREET, #15G NEW YORK, NY 10019 HEALTH CARE AFRICA FIGHTING MALARIA 2600 PENNSYLVANIA AVE., NW #7A WASHINGTON D.C. 20037 SCHOOL REFORM SHIMER COLLEGE 414 NORTH SHERIDAN ROAD WAUKEGAN, IL 60085 SCHOOL REFORM TEXAS PUBLIC POLICY FOUNDATION
900 CONGRESS AVE., AUSTIN, TX 78701 SUITE 400

AMOUNT 25,000.

250,000.

25,000.

500,000.

100,000.

BUDGET & TAX REFORM EVERGREEN FREEDOM FOUNDATION

50,000.

P.O. BOX 552 OLYMPIA, WASHINGTON 98507 BUDGET & TAX REFORM AMERICANS FOR PROSPERITY FOUNDATION 50,000.

BUDGET & TAX REFORM JAMES MADISON INSTITUTE P.O. BOX 13894 TALLAHASSEE , FL 32317 BUDGET & TAX REFORM MAINE HERITAGE POLICY CENTER P.O. BOX 7829 POTRTLAND, ME 04112

50,000.

50,000.

STATEMENT(S)

' THE'HEARTLAND

INSTITUTE

36-3309812 40,000.

BUDGET & TAX REFORM ALABAMA POLICY INSTITUTE 402 OFFICE PARK DRIVE, SUITE 300 BIRMINGHAM, AL 35223 BUDGET & TAX REFORM SOUTH CAROLINA POLICY COUNCIL 1323 PENDLETON STREET COLUMBIA, SC 29201 BUDGET & TAX REFORM KANSAS TAXPAYERS NETWORK

10,000.

25,000.

TOTAL INCLUDED ON FORM 990,

PART II,

LINE 22B

1,175,000.

FORM 990

OTHER PROGRAM SERVICES

STATEMENT

DESCRIPTION OF OTHER PROGRAM SERVICES UNRESTRICTED GRANTS TO OTHER 501C(3) MISSIONS IN LINE WITH HEARTLAND INSTITUTE. TOTAL TO FORM 990, PART III, LINE E WITH

GRANTS AND ALLOCATIONS

EXPENSES

1,150,000. 1,150,000.

25,000. 25,000.

STATEMENT(S)

2,

' THE'HEARTLAND INSTITUTE

36-3309812

FORM 990

PART V-A - LIST OF CURRENT OFFICERS, DIRECTORS, TRUSTEES AND KEY EMPLOYEES

STATEMENT

NAME AND ADDRESS JOSEPH BAST 600 EAST WILMETTE ROAD #124 PALATINE, IL 60074 ROBERT BUFORD 1333 N. KINGSBURY AVENUE #301 CHICAGO, IL 60622 PAUL FISHER 77 WEST WACKER DRIVE, CHICAGO, IL 60601 JAMES FITZGERALD 1629 COLONIAL PARKWAY INVERNESS, IL 60067
DAN HALES

TITLE AND AVRG HRS/WK PRESIDENT 40.00

COMPENSATION

EMPLOYEE BEN PLAN EXPENSE CONTRIB ACCOUNT

100,803.

0.

0.

DIRECTOR 0.00

0.

0.

0.

SUITE 4400

HEAD OF REAL ESTATE 0.00

0.

0.

0.

MANAGING DIRECTOR 0.00

0.

0.

0.

ATTORNEY

711 OAK STREET, SUITE 102 WINNETKA, IL 60093 WILLIAM HIGGINSON 990 NORTH LAKE SHORE DRIVE #11B CHICAGO, IL 60611 JAMES JOHNSTON 2143 CHESTNUT AVENUE WILMETTE, IL 60091 ROY MARDEN 330 EAST 46TH STREET, NEW YORK, NY 10017

0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

SUITE 4J

DIRECTOR 0.00

0.

0.

0.

DAVID PADDEN 100 WEST MONROE, SUITE 706 CHICAGO, IL 60603 FRANK RESNIK 175 EAST DELAWARE PLACE CHICAGO, IL 60611 ELIZABETH ROSE

DIRECTOR 0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

DIRECTOR

2110 GUY STREET

SAN DIEGO, CA 92103-1539

0.00

0.

0.

0.

STATEMENT(S)

THE'HEARTLAND INSTITUTE
d

36-3309812 CHAIRMAN SUITE

HERBERT WALBERG 180 EAST PEARSON STREET,

3607
CHICAGO, IL 60611

0.00

0.

0.

0.

RAJEEV BAL 501 WEST MICHIGAN MILWAUKEE, WI 53201-3050 THOMAS WALTON 300 RENAISSANCE CENTER,

DIRECTOR 0.00

0.

0.

0.

DIRECTOR MC

482-C27-C81
DETROIT, MI 48265-3000

0.00

0.

0.

0.

BIJU GEORGE KULATHAKAL

DIRECTOR

211 EAST OHIO, # 603

CHICAGO, IL 60611

0.00

0.

0.

0.

TOTALS INCLUDED ON FORM 990,

PART V-A

100,803.

0.

0.

SCHEDULE A

OTHER INCOME

STATEMENT

2005
DESCRIPTION LAPSED TIME RESTRICTIONS TOTAL TO SCHEDULE A, LINE 22 AMOUNT 0.

2004
AMOUNT 15,000.

2003

2002

AMOUNT 0. 0.

AMOUNT 0. 0.

0.

15,000.

STATEMENT(S)

4,

Ilk

For, 8868
(Rev December 2006)

Application for Extension of Time To File an Exempt Organization Return

01, File a separate application for each return. I

OMB No. 1545-1709

Department of the Treasury I Internal Revenue Service

If you are filing for an Automatic If you are filing for an Additional Do not complete Part 11 unless you FMM Automatic 3-Month

3-Month Extension, complete only Part I and check this box . . . . . . . . ^ (not automatic) 3-Month Extension , complete only Part II (on page 2 of this form). have alread y been g ranted an automatic 3-month extension on a p reviousl y filed Form 8868. Extension of Time . Only submit original (no copies needed).

Section 501(c)(3) corporations required to file Form 990-T and requesting an automatic 6-month extension-check this box and complete Part I only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ^ u All other corporations (including 1120-C filers), partnerships, REMICs, and trusts must use Form 7004 to request an extension of time to file income tax returns. Electronic Filing (e-file). Generally, you can electronically file Form 8868 if you want a 3-month automatic extension of time to file one of the returns noted below (6 months for section 501(c)(3) corporations required to file Form 990-T). However, you cannot file Form 8868 electronically if (1) you want the additional (not automatic) 3-month extension or (2) you file Forms 990-BL, 6069, or 8870, group returns, or a composite or consolidated Form 990-T. Instead, you must submit the fully completed and signed page 2 (Part II) of Form 8868. For more details on the electronic filing of this form, visit www.irs.gov/efile and click on a-file for Charities & Nonprofits. Type or print Fide by the
due date for ur =0See

Name of Exempt Organization C^ * Number, street, and room or suite no. If a P.O. box, see instructions.
i J

Employer identification number

& 1 Ie
!L

Qt -`

instructions.

City, town or post office, state , and ZIP code. For a foreig n address, see instructions.

Check type of return to be file (file a separate application for each return):
. ' Form 990 u Form 990-BL u Form 990-EZ u Form 990-PF u u u u Form Form Form Form 990-T (corporation) 990-T (sec. 401(a) or 408(a) trust) 990-T (trust other than above) 1041-A u u u u Form Form Form Form 4720 5227 6069 8870

The books are in the care of

_l j()Sfi^Z1.l-_-!__^^G^__X

.........

FAX No. Telephone No. ^ ___^^ 7 7 -__ . . . . . . ^ u If the organization does not have an office or place of business in the United States, check this box . If this is If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) for the whole group, check this box ...... ^ u . If it is for part of the group, check this box ...... ^ u and attach a list with the names and EINs of all members the extension will cover. I request an automatic 3-month (6 months for a section 501 (c)(3) corporation required to file Form 990-T) extension of time until ------ , 2047, to file the exempt organization return for the organization named above . The extension is for the organization 's return for: ^ , calendar year 20 p(p-- or ^ u tax year beginning ----------------------------------- - 20.--, and ending ------------------------------------- , 20-. If this tax year is for less than 12 months, check reason: u Initial return u Final return u Change in accounting penod

3a If this application is for Form 990-BL , 990-PF , 990-T, 4720 , or 6069, enter the tentative tax, less any nonrefundable credits . See instructions. b If this application is for Form 990-PF or 990-T, enter any refundable credits and estimated tax payments made. Include any prior year overpayment allowed as a credit. c Balance Due. Subtract line 3b from line 3a. Include your payment with this form, or, if required, deposit with FTD coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions.

3b

$ app

$ 0-00

Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO for payment instructions.
For Privacy Act and Paperwork Reduction Act Notice, see Instructions . Cat No. 27916D Form 8868 (Rev 12-2006)

Form 8868 (Rev 12 -2006)

Page 2

If you are filing for an Additional (not automatic) 3-Month Extension, complete only Part II and check this box . . ^ u Note . Only complete Part II if you have already been granted an automatic 3-month extension on a previously filed Form 8868.

If you are filing for an Automatic 3-Month Extension, complete only Part I (on page 1).

FEMM
Type or print File by the
extended due date for filing the return See instructions.

Additional (not automatic) 3-Month Extension of Time. You must file oriqinal and one copy.
Name of Exempt Organization Number, street, and room or suite no. If a P.O. box, see instructions. City, town or post office, state, and ZIP code For a foreign address, see instructions. Employer identification number For IRS use only ,,

Check type of return to be filed (File a separate application for each return): u Form 6069 u Form 990 u Form 990-PF u Form 1041-A u Form 4720 u Form 8870 u Form 990-BL u Form 990-T (sec. 401(a) or 408(a) trust) u Form 990-EZ u Form 990-T (trust other than above) u Form 5227 STOP! Do not complete Part 11 if you were not already granted an automatic 3-month extension on a previously filed Form 8868. The books are in the care of ^ -------------------------------------------------------------------------------------------FAX No. ^ Telephone No. ^ ( ---------. . . . . . ^ u If the organization does not have an office or place of business in the United States, check this box . If this is If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) for the whole group, check this box ...... ^ u . If it is for part of the group, check this box...... ^ u and attach a list with the names and EINs of all members the extension is for. 4 5 6 7 I request an additional 3-month extension of time until -------------------------------------------- - 20----.. For calendar year ------- , or other tax year beginning .......................... . 20-...., and ending -------------------------- , 20..---. If this tax year is for less than 12 months, check reason: u Initial return u Final return u Change in accounting period State in detail why you need the extension ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------

8a If this application is for Form 990-BL, 990-PF , 990-T , 4720, or 6069, enter the tentative tax, less any nonrefundable credits . See instructions. b If this application is for Form 990-PF, 990-T , 4720 , or 6069 , enter any refundable credits and estimated tax payments made . Include any prior year overpayment allowed as a credit and any amount paid previousl y with Form 8868. c Balance Due. Subtract line 8b from line 8a. Include your payment with this form, or, if required , deposit with FTD cou pon or, if req uired , by usin g EFTPS (Electronic Federal Tax Payment System) . See Instructions. Signature and Verification

8a ^il 8b Sc

$ $

Under penalties of perjury , I declare that I have examined this form , including accompanying schedules and statements, and to the best of my knowledge and belief, it is true , correct , and complete , and that I am authorized to prepare this form

r Signatu ^, ^ }-p ^ Title ^ fX a C^ ;^7 V^

c f

Date ^ 3 - S_c' 7

Notice to Applicant . (To Be Completed by the IRS) u u We have approved this application . Please attach this form to the organization's return. We have not approved this application. However , we have granted a 10-day grace period from the later of the date shown below or the due date of the organization ' s return (including any prior extensions). This grace period is considered to be a valid extension of time for elections otherwise required to be made on a timely return . Please attach this form to the organization ' s return. We have not approved this application . After considering the reasons stated in item 7, we cannot grant your request for an extension of time to file. We are not granting a 10-day grace period.

u u

We cannot consider this application because it was filed after the extended due date of the return for which an extension was requested. Other ----------------------------------------------------------------- -----------------------------------------------------------------------------By:

Director

Date

Alternate Mailing Address . Enter the address if you want the copy of this application for an additional 3-month extension returned to an address different than the one entered above. Name Number and street (include suite , room, or apt no.) or a P.O. box number

Type or print

City or town, province or state, and country (i ncluding postal or ZIP code)
Form 8868 (Rev 12-2006)