Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
MERCY MINISTRIES INTERNATIONAL INC
Employer identification number
20-0408162
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% 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). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
838,553
889,330
377,358
401,807
2,507,048
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
838,553
889,330
377,358
401,807
2,507,048
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
2,507,048
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
7
Amounts from line 4..
838,553
889,330
377,358
401,807
2,507,048
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
53
1,967
1,677
3,697
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
5,177
72,861
106,911
184,949
11
Total support (Add lines 7 through 10).
2,695,694
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
107,031
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2011.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2010.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2011.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public Support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2007
(b) 2008
(c) 2009
(d) 2010
(e) 2011
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2011 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2010 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2011 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2010 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2011.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2010.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2011
Schedule A (Form 990 or 990-EZ) 2011
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2011
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2011
Open to Public Inspection
Name of the organization
MERCY MINISTRIES INTERNATIONAL INC
Employer identification number
20-0408162
Identifier
Return Reference
Explanation
ORGANIZATION'S MISSION
FORM 990 - ORGANIZATION'S MISSION
MERCY MINISTRIES INTERNATIONAL, INC. IS A CHRISTIAN-BASED ENTITY THAT PROVIDES OVERSIGHT AND ACCOUNTABILITY TO ITS MINISTRY AFFILIATES AS THEY CARRY OUT THEIR SHARED MISSION OF PROVIDING OPPORTUNITIES FOR YOUNG WOMEN ACROSS THE GLOBE TO EXPERIENCE GOD'S UNCONDITIONAL LOVE, FORGIVENESS AND LIFE-TRANSFORMING POWER. THE MISSION OF THE MINISTRY IS TO ENABLE, FOSTER AND/OR ASSIST ITS MINISTRY AFFILIATES IN PROVIDING FREE-OF-CHARGE RESIDENTIAL PROGRAMS GLOBALLY FOR TROUBLED YOUNG WOMEN. THESE PROGRAMS ARE SPECIFICALLY DESIGNED TO PROMOTE FAITH, CHANGE HEARTS AND STOP DESTRUCTIVE CYCLES BY ADDRESSING THE WHOLE PERSON - SPIRITUAL, PHYSICAL AND EMOTIONAL - IN A STRUCTURED LIVING ENVIRONMENT. THE MINISTRY LICENSES THE USE AND IMPLEMENTATION OF ITS PROGRAM STRUCTURE AND CORE COMPONENTS TO ITS MINISTRY AFFILIATES, WHO OPERATE AS SEPARATE ENTITIES WITH SEPARATE GOVERNING BOARDS, AND OVERSEES THE UNIFORM IMPLEMENTATION OF AND MAINTENANCE OF ITS STANDARDS. THE MINISTRY DOES NOT ACCEPT FUNDING FROM ANY ENTITY, INCLUDING GOVERNMENT, THAT WOULD IMPAIR ITS ABILITY TO PREACH AND TEACH THE WORD OF GOD AND OPENLY ESPOUSE THE GOOD NEWS OF THE GOSPEL AS AN ESSENTIAL ELEMENT IN HEALING TROUBLED YOUNG WOMEN.
FIRST ACCOMPLISHMENT DESCRIPTION
FORM 990, PAGE 2, PART III, LINE 4A
THE MINISTRY HAS LICENSED THE USE OF ITS PROPRIETARY PROGRAM FOR HOMES IN THESE COUNTRIES AS AGREED UPON BY THE PARTIES PER MINISTRY COLLABORATION AGREEMENTS.
ORGANIZATION'S PROCESS USED TO REVIEW FORM 990
FORM 990, PAGE 6, PART VI, LINE 11B
A COPY OF THE FORM 990 IS DELIVERED TO THE BOARD OF DIRECTORS FOR REVIEW AND FULL APPROVAL. A DESIGNATED REPRESENTATIVE OF THE MINISTRY IS TO BE AVAILABLE TO ANSWER QUESTIONS TO THE BOARD OF DIRECTORS DURING THE PERIOD OF REVIEW AND APPROVAL. A SIGNED ACKNOWLEDGEMENT OR REVIEW AND APPROVAL, EITHER MANUAL OR ELECTRONIC, IS TO BE RECEIVED FROM EACH BOARD MEMBER BEFORE THE FILING DATE.
ENFORCEMENT OF CONFLICTS POLICY
FORM 990, PAGE 6, PART VI, LINE 12C
IF THE GOVERNING BOARD OR A COMMITTEE OF THE MINISTRY HAS REASONABLE CAUSE TO BELIEVE A MEMBER HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. WITH REGARD TO EMPLOYEES OF THE MINISTRY, THEY ARE REQUIRED TO COMPLETE A DISCLOSURE STATEMENT TO REPORT ANY ACTUAL, ATTEMPTED OR SUSPECTED VIOLATIONS OF THIS POLICY BY ANYONE IN THE MINISTRY. THE DISCLOSURE STATEMENT IS ALSO REQUIRED TO BE COMPLETED BY ALL EMPLOYEES TO INDICATE THE EXISTENCE OF ACTUAL OR POTENTIAL CONFLICT OF INTEREST BEFORE ENTERING INTO A BUSINESS RELATIONSHIP. TO ENSURE THE MINISTRY OPERATES IN A MANNER CONSISTENT WITH CHARITABLE PURPOSES AND DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS TAX-EXEMPT STATUS, PERIODIC REVIEWS OF ARRANGEMENTS THAT MAY CAUSE CONFLICTS OF INTEREST SHALL BE CONDUCTED. THE PERIODIC REVIEW SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING SUBJECTS: WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. WHETHER BUSINESS RELATIONSHIPS CONFORM TO THE MINISTRY'S WRITTEN POLICIES, AND ARE PROPERLY RECORDED, REFLECT REASONABLE INVESTMENT OR PAYMENTS FOR GOODS AND SERVICES, FURTHER CHARITABLE PURPOSES AND DO NOT RESULT IN INUREMENT, IMPERMISSIBLE PRIVATE BENEFIT OR IN AN EXCESS BENEFIT TRANSACTION. WHEN CONDUCTING THE PERIODIC REVIEWS, THE MINISTRY MAY, BUT NEED NOT, USE OUTSIDE ADVISORS. IF OUTSIDE EXPERTS ARE USED, THEIR USE SHALL NOT RELIEVE THE GOVERNING BOARD OF ITS RESPONSIBILITY FOR ENSURING PERIODIC REVIEWS ARE CONDUCTED.
COMPENSATION PROCESS FOR TOP OFFICIAL
FORM 990, PAGE 6, PART VI, LINE 15A
THE PROCESS FOR DETERMINING COMPENSATION FOR THE TOP OFFICIAL OF THE MINISTRY INCLUDES A REVIEW AND APPROVAL BY A COMPENSATION COMMITTEE AS ELECTED BY THE BOARD OF DIRECTORS BEFORE SUCH COMPENSATION MAY BECOME EFFECTIVE. THE COMPENSATION COMMITTEE IS PROVIDED INDEPENDENT COMPENSATION STUDIES AND COMPARABLE COMPENSATIONS AS REPORTED ON SIMILAR ORGANIZATIONS ON A FILED FORM 990.
COMPENSATION PROCESS FOR OFFICERS
FORM 990, PAGE 6, PART VI, LINE 15B
THE PROCESS FOR DETERMINING COMPENSATION OF THE OFFICERS OR KEY EMPLOYEES OF THE MINISTRY INCLUDES A REVIEW AND APPROVAL BY A COMPENSATION COMMITTEE AS ELECTED BY THE BOARD OF DIRECTORS BEFORE SUCH COMPENSATION MAY BECOME EFFECTIVE. THE COMPENSATION COMMITTEE IS PROVIDED INDEPENDENT COMPENSATION STUDIES AND COMPARABLE COMPENSATIONS AS REPORTED ON SIMILAR ORGANIZATIONS ON A FILED FORM 990.
GOVERNING DOCUMENTS DISCLOSURE EXPLANATION
FORM 990, PAGE 6, PART VI, LINE 19
THE MINISTRY'S FORM 990, GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST TO THE PUBLIC.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.