r F^ -- t 4

Form

990
use IRS
pbet or pnn or cha n e cha ng e

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 satisfy state reporting requirements and e

2005

Department of the Treasury Internal Revenue Servi ce

A For the 2005 calen dar year , or tax year beginning B Check If
applicable

Please C Name of organization

D Employer Identification number

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

=N ames Chang Initial return O Final tum Amended re

type
Specific Instnrc-

36-3309812 Room/suite E Telephone number

19 SOUTH LA SALLE STREET

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

)03

( 312 )
F Accounting method

377-4000
0 Cash [K Accrual

tons

HICAGO

IL

60603

H and I are not applicable to section 527 organizations H(a) Is this a group return for affiliates? 0 Yes 0 No N/A . HEARTLAND. ORG H(b) If 'Yes, enter number of affiliates ^ G Website : )IOnsert no) L4947(a)(1)or=527 H(c) Are all affiliates included? 501(c)( 3 N/A = Yes =No J Organization type (Check onlyone) Is this, attach a list ) K Check here 11111, L if the organization's gross receipts are normally not more than $25,000 The H(d) s this a separate return filed by an org anization covered by a g rou rulin g ? =Yes MNo organization need not file a return with the IRS, but if the organization chooses to file a return, be sure to file a complete return Some states require a complete return . N/A I Grou p Exem ption Number ^ M L Gross receipts Add lines 6b, 8b, 9b, and 10b to line 12 ^ 4 , 520 , 884. Check ^ 0 If the organization is not required to attach Sch B (Form 990, 990-EZ, or 990-PF)

i pplicabon gentling

Section 501 ( c)(3) organizations and 4947 ( a)(1) nonexempt charitable trusts must attach a completed Schedule A (Form 990 or 990 -EZ).

Psi rt 1
1

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

Contributions , gifts, grants , and similar amounts received la a Direct public support 1b b Indirect public support 1c c Government contributions ( grants) 4,242,949. noncash$ d Total (add lines la through 1c ) (cash $ 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

4,242,949.

ld
2 3 4 5

4 , 242,949.
229,650. 29, 943. 1,401.

2 3 4 5

6 a Gross rents
b c 7 as a, ces c C 0 cv -34 8 a b c d 9 L) O a

6a i
6c 7 B Other

Li

z z
0

CL X

% ZQ

b c 10 a b c Other revenue (from Part VII, line 103 ) 11 Total revenue ( add lines 1d 2 3 4 5 6c , 7 , 8d , c 10c 12 Program services (from line 44 , column ( B)) 13 14 Management and general (from line 44 , column ( )) 006 Fundraising (from line 44 , column (D)) 15 OCT d Q Payments to affiliates ( attach schedule ) 16 17 Total ex p enses ( add line s 16 and 44 , column A 117 r 18 Excess or (deficit ) for the year ( subtract line 17 fro Im 19 Net assets or fund balances at beginning of year (from line 73, column (A)) 20 Other changes in net assets or fund balances ( attach explanation) 21 Net assets or fund balances at end of year ( combine lines 18, 19, and 20 ) LHA

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) Net gain or ( loss) (combine line 8c , columns (A) and (B )) Special events and activities ( attach schedule ) If any amount is from gaming , check here ^ of contributions Gross revenue ( not including $ 9a reported on line 1a) 9b Less direct expenses other than fundraising expenses Net income or (loss ) from special events ( subtract line 9b from line 9a) 10a Gross sales of inventory , less returns and allowances 10b Less cost of goods sold Gross profit or(loss ) from sales of Inventory ( attach schedule) (subtract line 10b fro m line 10a)

8d

9c

0 (per

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

16 941 . 4,520, 884 . 2, 000, 981 . 172 , 667 .

195, 14 7 .
2, 368 , 795 . 2 , 152 , 089 .

33, 696 .
0 2 , 185 , 785 . Form 990 (2005)

02-0306

For Privacy Act and Paperwork Reduction Act Notice , see the separate instructions.

}.

36-3309812 Form 990 2005 THE HEARTLAND INSTITUTE All organizations must complete column (A) Columns ( B), (C), and ( D) are required for section 501(c)(3) Statement of F art ^1 and (4) organizations and section 4947 (a)(1) nonexempt charitable trusts but optional for others Functional Expenses Do not include amounts reported on line 6b, 8b, 9b, 1Ob, or 16 of Part 1.
22 Grants and allocations (attach schedule) (cash $ 0 noncash $ 0 22

Pa ge 2

(A) Total

( B) Program services

( C) Management and general

( D) Fundraising

If this amount Includes foreign grants , check here ^ []

23 Specific assistance to individuals (attach schedule) 24 Benefits paid to or for members (attach schedule)

23 24

25 Compensation of officers , directors , etc.

25

80 , 797.

60 , 597.

12 , 120.

8 , 080.

26 Othersalanesandwages
27 Pension plan contributions 28 Other employee benefits 29 Payroll taxes 30 Professional fundraising fees 31 Accounting fees 32 Legal fees 33 Supplies

26
27 28 29 30 31 32 33

670 438.

517, 854.

85 , 540.

67,044.

34 Telephone
35 Postage and shipping

34
35

34 , 317. 7,881.
489, 713.

8,882. 6,439.
473,543.

21 , 287. 815.
1,802.

4,148. 627.
14,368.

36 Occupancy
37 Equipment rental and maintenance 38 Printing and publications 39 Travel 40 Conferences , conventions , and meetings

36
37

89,839.
42 0 , 568. 203 , 930.

69,176.
413,960. 114, 245.

11,679.
1 , 517 6 , 550. -

8,984.
5 091. 83,135.

38
39 40

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

41
42

3 , 265.
20 , 108.

3,265.
3 , 670.

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

3,460.

12,978.

b SUBCONTRACTOR,

43b

c WRITERS,
III e
f

EDITORS

43c
43d 43e
43f

347,939.

332 825.

15,114.

g
44 Total functional expenses . Add lines 22 through 43 . (Organizations completing columns ( B)-(D), carry these totals to lines 13.15)

43

,368 ,795.

,000 , 981.

72,667.

95,147.

Joint Costs. Check ^ Q 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 $ N/A . and ( iii) the amount allocated to Manaaement and general $ ( iv) the amount allocated to Fundralslno $

^ 0 Yes [XI No N/A N/A Form 990 (2005)

523011 02-03-06

A.. Form 990 2005 THE HEARTLAND INSTITUTE part 111 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 AND FOUR POLICY REPORTS IN 2005.

(Grants and allocations

If this amount includes foreig n g rants , check here

1 , 460,636. _

b INTERNET PROJECTS - HEARTLAND OPERATED A FREE WEB-BASED RESEARCH SERVICE IN 2005 AND HAD AN EXTENSIVE INTERNET PRESENCE.

(Grants and allocations

If this amount includes foreig n g rants , check here

235,343.

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 forei g n g rants , check here

211 , 758.

d SPEAKERS BUREAU - HEARTLAND OFFERS ITS SENIOR FELLOWS AND STAFF MEMBERS AS SPEAKERS FOR EVENTS HOSTED BY OTHER ORGANIZATIONS. THE SPEAKERS BUREAU PRODUCED 32 SPEAKING ENGAGEMENTS IN 2005.

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

^ ^

93,244.

2,000,981. Form 990 (2005)

523021 02-03-06

--

Form 990 2005 THE HEARTLAND Part IV Balance Sheets (See the Instructions.)

INSTITUTE
(A) Beginning of year

36-3309812
(B) End of year

Pag e 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-bearing Savings and temporary cash investments 47a 47b 48a 48b 121,791.

13,378. 45
46

1,050,147.

47 a Accounts receivable b Less: allowance for doubtful accounts 48 a Pledges receivable b Less: allowance for doubtful accounts 49 Grants receivable Receivables from officers, directors, trustees, 50 and key employees 51 a Other notes and loans receivable b Less: allowance for doubtful accounts 52 Inventories for sale or use 53 Prepaid expenses and deferred charges

68 , 877.

47c

121 , 791.

48c 49 50

d
N

51a 51b

51 c 52 53

27 , 103 .

54
55 a

Investments - securities
Investments - land, buildings, and equipment: basis Less- accumulated depreciation Investments - other Land, buildings, and equipment: basis Less: accumulated depreciation

STMT

1
55a 55b 57a

^ 0 Cost

0 FMV

0. 54

980,390.

b 56 57 a b

55c 56 158,037.

57b

116,794.
)

58
59 60 61 62
tll d

Otherassets(describe ^ SECURITY DEPOSIT

12,452. 57c 6 , 000. 58

100 , 707. 67,011. 59 50 61 62 63 64a 64b 65 67 , 011. 66

41 , 243. 6 , 000.
2 , 226 , 674.
40 , 889.

20

Total assets must eq ual line 74) . Add lines 45 throu g h 58 Accounts payable and accrued expenses Grants payable Deferred revenue 63 Loans from officers, directors, trustees, and key employees 64 a Tax-exempt bond liabilities b Mortgages and other notes payable Other liabilities (describe ^ 65 66 Total liabilities . Add lines 60 throu g h 65) 67 through 69 and lines 73 and 74.

40 , 889 .

Organizations that follow SFAS 117, check here ^ EX -land complete lines

67
to LL

Unrestricted

33,696. 67
68 69

185,785.
2,000 , 000.

68 Temporarily restricted 69 Permanently restricted Organizations that do not follow SFAS 117, check here ^ 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, column ( B) must equal line 21) 74 Total liabilities and net assetstfund balances . Add lines 66 and 73

70 71 72

3 3 6 9 6 . 73
100 , 707. 1 74

2 , 185 , 785.
2 , 226 , 674.
Form 990 (2005)

523031 02-03-06

I.

36-3309812 THE HEARTLAND INSTITUTE Form 990 2005 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return (see the rNR 1Vinstructions.)
a b Total revenue, gains , and other support per audited financial statements Amounts included on line a but not on Part I, line 12: 1 Net unrealized gains on investments 2 Donated services and use of facilities 3 Recoveries of prior year grants 4 Other (specify): Add lines b1 through b4 a

Pag e 5

4,520,884.

0.

Subtract line b from line a Amounts included on Part I, line 12, but not on line a: 1 Investment expenses not included on Part I, line 6b 2 Other (specify): Add lines dl and d2 e Total revenue (Part I line 12) . Add lines c and d c d

c
d1 d2 ^ d e

4,520,884.

0 .

4 , 520 , 884 .

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

1V4

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 d1 and d2 Total ex penses Part I line 17) . Add lines c and d

Reconciliation of Expenses per Audited Financial Statements With Expenses per Return 2 368 , 795. a
b1 b2 b3 b4 b 0 .

c
d1 d2 ^ d e

2,368,795.

0 .

Part VA

2 , 368 , 795. Current Officers, Directors , Trustees, and Key Employees (List each person who was an officer, director, trustee,
or key emolovee at any time dunno the year even if they were not compensated.) (See the Instructions.)

(A) Name and address ----------------------------------------------------------------SEE STATEMENT 2

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

(E) Expense (C) Compensation (D)Contnbut i ons to account and (If not paid , enter employee benefit allowances other com ensat on plans 0-.

80

797.

0.

0.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Form 990 (2005)

523041 02-03-06

.. 1 Form 990 2005 THE HEARTLAND INSTITUTE Part V-A Current Officers, Directors, Trustees, and Key Employees (continued)
75 a Enter the total number of officers, directors, and trustees permitted to vote on organization business at board ^ meetings

36-3309812

Pa e 6 Yes No

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) SEE S TATEMENT 3 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 II-A or II-B, receive compensation from any other organizations , whether tax exempt or taxable , that are related to this organization through common supervision or common control? Note. Related organizations include section 509(a)(3) supporting organizations If 'Yes; attach a statement that identifies the individuals , explains the relationship between this organization and the other organ ization(s), and describes the compensation arrangements , including amounts paid to each individual by each related organization.

Does the organization have a written conflict of interest policy? 75d t V-B Former Officers , Directors, Trustees , and Key Employees 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) (D) Contributions to (E) Expense benefit (C) Compensation employee (B) Loans and Advances account and (A) Name and address plans & deferred

NONE

nom ensat ,on pans

other allowances

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

Part VI
76

Other Information (See the instructions.)

76 77 78a 78b 79 80a

Yes No
X X X X X X

Did the organization engage in any activity not previously reported to the IRS? If "Yes,' attach a detailed -description of each activity 77 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. 78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? b If 'Yes,' has it filed a tax return on Form 990-T for this year? 79 Was there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement 80 a 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? b If 'Yes,' enter the name of the organization' N/A exempt or = nonexempt 0. 81a and check whether it is 81 a Enter direct or indirect political expenditures. (See line 81 instructions) b Did the organization file Form 1 120-POL for this year?
523181/02-03-08

1b

Form 990 (2005)

Form 990 (2005) THE HEARTLAND INSTITUTE part V1 Other Information (continued)
82 a b

36-3309812

Pae7 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 g ifts were not N/A tax deductible? N/A 501(c)(4), (5), or(6) organizations. a Were substantially all dues nondeductible by members? 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 Dues, assessments, and similar amounts from members N/A 85d Section 162(e) lobbying and political expenditures N/A 85e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices N/A 851 Taxable amount of lobbying and political expenditures (line 85d less 85e) N/A Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on fine 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the N/A following tax year? 501(c)(7) organizations. Enter: a Initiation fees and capital contributions included on N/A 86a line 12 N/A 86b Gross receipts, included on line 12, for public use of club facilities N/A 87a 501(c)(12) organizations. Enter a Gross income from members or shareholders

82a

83a 83b 84a 84b 85a 85b

X X X

c d e I g h

85

85h

86 b 87

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.) At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, 88 or an entity disregarded as separate from the organization under Regulations sections 301 7701-2 and 301.7701.3? If 'Yes," complete Part IX 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 491110, b 501(c)(3) and 501(c)(4) organizations. Did the organization engage in any section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior year? c

88 0

If 'Yes," attach a statement explaining each transaction Enter: Amount of tax imposed on the organization managers or disqualified persons during the year under ^ sections 4912, 4955, and 4958 ^ d Enter: Amount of tax on line 89c, above, reimbursed by the organization 90 a List the states with which a copy of this return is filed ^ IL 90b b Number of employees employed in the pay period that includes March 12, 2005 Telephone no ^ (312) 91 a The books are in care of ^ THE HEARTLAND INSTITUTE

89b

0 .
0 13

Locatedat ^ 19 SOUTH LA SALLE STREET,

#903,

CHICAGO,

IL

377-4000 60603 ZIP+4 ^

Yes 91b No X

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 and Financial Accounts. 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 and enter the amount of tax-exempt interest received or accrued during the tax Year ^

91C

X ^ 0

92 I

N/A Form 990 (2005)

523162 02-03-06

Form 990 2005 THE HEARTLAND INSTITUTE Part VII Analysis of Income-Producing Activities (see the instructions.)
Note: Enter g ross amounts unless otherwise indicated. 93 Program service revenue. Unrelat ed business income (A) Business code (B) Amount (C) Exclusion code (D) Amount

36-3309812
Exclu ded by section 512, 513, or 514

Page 8

(E) Related or exempt function income

a b c d
e

PUBLICATIONS/RESEARCH POLICY BOT/INTERNET PUBLICATIONS/RESEARCH SPEAKERS BUREAU

511110

62 , 128.

149 641. 17 , 881.

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

29 , 943.
1 , 401.

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 DONATED EQUIPMENT

b

16 , 941.

c d e
104 Subtotal (add columns (B), (D), and (E)) 105 Total (add line 104, columns (B), (D), and (E)) Note: Line 105 plus line 1d, Part I, should equal the amount on line 1 2, Part I. 62 , 128. 0. ^ 215 , 807. 277 ,935 .

Part VI II
Line No . V

Relationship of Activities to the Accomplishment of Exempt Purposes (See the 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 ANNUAL FUNDRAISER & OTHER PUBLIC EVENTS EDUCATES ATTENDEES AS WELL AS 93B H EARTLAND DISSEMINATES ITS RESEARCH THRU PUBLICATIONS & PUBLIC EVENTS. 94 EMBER DUES QUALIFY MEMBERS FOR FREE PUBLICATIONS & EVENT DISCOUNTS. INTEREST IS EARNED INCIDENTAL TO FUNDRAISING & PROGRAM ACTIVITIES. 95 Information Regard ing Taxable Subsidiaries and Disregarded Entities (see the instructions.) Part IX
A Name , address , and)EIN of corporation , p artnershi p, or dlsre arded entity (B) Perce tage of ownershi p interest
n

C Nature of)activities

(D) Total income

E) End of-year assets

N/A

Part X

Information Reaardi na Transfers Associated

(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).
Please Under penalties of per ry, I declare that I have examined this return, including accor all arer (other th officer) is based on all info correct, and coin

Sign
Here Paid Signature Preparer's signature
Firm' s name (o

Is jV11

9,
Da

ice

Preparer's
Use Only
523183

yours if
self-employed ) address, and

k_,/,TAMES

941 N.

F. SEXT ON & ASSOC PLUM GROVE RD SZ

IL

02.03-171e

ZIP + 4

S CHAUMBURG ,

60173

4 t, SCHEDULE 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 Supplementary Information-(See separate instructions.)
MUST be completed by the above organizations and attached to their Form 990 or 990-EZ

OMB No 1545-0047

2005
Employer identification number

Name of the organization Part I

36 3309812 THE HEARTLAND INSTITUTE Compensation of the Five Highest Paid Employees Other Than Officers , Directors , and Trustees (See naae 1 of the instructions. List each one. If there are none . enter "None.1
(a) Name and address of each employee paid () more than $50,000 (b) Title and average hours week devoted to p osition (c) Compensation
(d) Contributions to dbenefit pg compensation

(e) Expense account and other allowances

RESIDENT JOSEPH L.-BAST -------------------------------40.00 900 EAST WILMETTE RD #124 PALATINE I L ICE PRESIDE BAST DIANE-C.- ------------------------------40.00 900 EAST WILMETTE RD #124 PALATINE I L PUBLISHER NICOLETTE M.-COMERFORD -- ------------------------------40.00 597 GREEN OAKS DR CRYSTAL LAKE , IL VP-EXTERNAL SEAN-D. PARNELL --------------------------------40.00 1621 WHITEHALL CT. WHEELING IL

80 , 797. 65 , 000. 61 , 234. FAIRS 80 , 277.

---------------------------------Total number of other employees paid

over $50 ,000

^
/n _ _ n ..[ a4... 1 ..4... .. /... 4...a1... ...1.....1....1.. i .. ..\ li ak

0
nfn -\I '

Part II-A

Compensation of the Five Highest Paid Independent Contractors for Professional Services
(a) Name and address of each independent contractor paid more than $50,000 (b) Type of service (c) Compensation

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

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------Total number of others receiving over $50,000 for professional services ^ 0

Part II-B

Compensation of the Five Highest Paid Independent Contractors for Other Services (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

Total number of other contractors receiving over

$50.000 for other services

523101/02-03-0e

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

Schedule A (Form 990 or 990-EZ) 2005

' ,

1.

Schedule A (Form 990 or 990-EZ) 2005 THE HEARTLAND

INSTITUTE

36-3309812

Page 2

Part III
1

Statements About Activities (See page 2 of the instructions .)

Yes No

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. 2 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) a Sale, exchange , or leasing of property? b Lending of money or other extension of credit?

2a 2b

X X

c Furnishing of goods , services , or facilities? d Payment of compensation ( or payment or reimbursement of expenses if more than $1 ,000)?

$EE $TATEMENT

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

X X
X X X X X X

e Transfer of any part of its income or assets? 3 a Do you make grants for scholarships , fellowships , student loans , etc.? (If 'Yes, attach an explanation of how you determine that recipients qualify to receive payments.) _ b Do you have a section 403 ( b) annuity plan for your employees? real property interest under section 170(h)? contribution of qualified the organization receive a During the year, did c where donors have the right to provide advice participating donors any separate account for Did you maintain 4 a on the use or distribution of funds? b Do you provide credit counselor debt mana g ement , credit re p air , or debt ne g otiation services?

Part IV

Reason for Non-Private Foundation Status (See pages 3 through 6 of the instructions.)

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)(1). 5 A school. Section 170(b)(1)(A)(ii). (Also complete Part V.) 6 7 L1 A hospital or a cooperative hospital service organization. Section 170(b)(1)(A)(111). A Federal, state, or local government or governmental unit. Section 170(b)(1)(A)(v). 8 A medical research organization operated in conjunction with a hospital. Section 170(b)(1)(A)(ni). Enter the hospital ' s name, city, 9

10
1la 1lb 12

and state ^ 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.

Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part IV-A.)

A community trust. Section 170(b)(1)(A)(vi). (Also complete the Support Schedule in Part IV-A.) An organization that normally receives: ( 1) more than 33 1 /3% of its support from contributions, membership fees, and gross 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 supports organizations described in: (1) lines 5 through 12 above; or ( 2) sections 501 ( c)(4), (5), or (6), if they meet the test of section 509(a )( 2). Check the box that describes Type 3 0 Type 2 the type of supporting organization : ^ E ::]Type 1 Provide the following information about the supported organizations. (See page 6 of the instructions.) (a) Name ( s) of supported organization ( s) Line numb (b) from above

14

E:::]

An organization organized and operated to test for public safety . Section 509 ( a)(4). (See page 6 of the instructions.)

523111

Schedule A (Form 990 or 990-EZ) 2005

Schedule A (Form 990 or 990-EZ) 2005 THE HEARTLAND INSTITUTE 36-3309812 Part IV-A Support Schedule (Complete only if you checked a box on line 10, 11, or 12.) Use cash method of accounting. Note: You may use the worksheet in the instructions for converting from the accrual to the cash method of accounting. Calendar year ( or fiscal year

Page 3

beginning in )
15

( a ) 2004

( b ) 2003

c 2002

( d ) 2001

( e ) Total

Gifts, grants , and contributions dude unusual grants Seeline Membershi p fees received 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

2g

16
17

1 , 753 , 416. 33 , 196.

1 , 546 , 170. 1 , 254 , 137. 28 , 516. 28 , 945.

1 , 103 , 375. 24 , 910.

5 , 657 , 098. 115 , 567.

211 , 980.

316,026.

329 , 152.

334 , 163.

1 , 191 , 321.

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

19
20

organization after June 30, 1975 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

2 , 819.

1, 700.

177.

5 , 381.

10, 077.

<93 , 628. >

<92,239. >

<59,213. >

<10 , 201. >

<255 , 281.

21

22
23

Other Income. Attach a schedule .

sale of capital assets

24

Do not include gain or ( loss) from

SEE STATEM E NT

Total of lines 15 through 22

Line 23 minus line 17

25
26 b

Enter s % ofline 23

15 1 , 922 1 , 710 19

, , , ,

000. 783. 803. 228.

1 , 800 , 602. 1 , 484 , 576. 18 , 006.

1 , 552 , 769. 1 , 223 , 617. 15 , 528.

178 1 , 635 1 , 301 16

, , , ,

000. 628. 465. 356.

193 , 000. 6 , 911 , 782. 5 , 720 , 461.

c d e f 27

^ 26a N/A Organizations described on lines 10 or 11: a Enter 2% of amount in column (e), line 24 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 2001 through 2004 exceeded the amount shown in line 26a. ^ 26b Do not file this list with your return . Enter the total of all these excess amounts _N / A ^ 26c N/A Total support for section 509 (a)(1) test Enter line 24, column ( e) 18 19 Add : Amounts from column ( e) for lines: 22 26b ^ 26d N A ^ He Public support ( line 26c minus line 26d total) N/A ^ 26f N/A Public support percentage (line He ( numerator ) divided by line 26c ( denominator )) 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:

239, 381. (2001) 329,678. (2004) 349, 633. (2003) 309, 392. (2002) 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 . (2003) (2004) c Add: Amounts from column (e) for lines:

15

0 . (2002) 16 5,657,098.

0. 115,567 .

(2001)

0.

17 1,191,321. d Add: Line 27a total 1,228 , 084. e Public support (line 27c total minus line 27d total)

20 and line 27b total

21 0.

^ 27c ^ 27d ^ 27e

6 , 963 , 986. 1 , 228 , 084. 5 , 735 , 902.

^ 127f 1 f Total support for section 509(a)(2) test Enter amount on line 23, column (e) g Public support percentage (line 27e (numerator) divided by line 27f (denominator))

6,911,782 ^

.145
28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 2001 through 2004, 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.
523121 02-03-08 NONE Schedule A (Form 990 or 990 -EZ) 2005

I.'

I Schedule A (Form 990 or 990-EZ) 2005 THE HEARTLAND INSTITUTE Part V Private School Questionnaire (See page 7 of the instructions)

36-3309812 N/A

Page4

(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 its 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 penod of solicitation for students, or during the registration period it it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? If'Yes " please describe, if 'No," please explain (If you need more space, attach a separate statement ) 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 staffs 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 f g h

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

33a 33b 33c 33d 33e 331 33 33h

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? If "No,' attach an explanation

34a 34b

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

523131 02-03-06

Schedule A ( Form 990 or990 -EZ) 2005 THE HEARTLAND INSTITUTE Part Yt.A Lobbying Expenditures by Electing Public Charities (See page 9 of the instructions)
(To be completed ONLY by an eligible organization that filed Form 5768)
Check Pr a r--i L-i d the org anization belon g s to an affiliated g rou p Check 1P. r--1 o LJ if

36-3309812 Pa g e 5 N/A

ou checked -a- and limited control p rovisions a piy

Limits on Lobbying Expenditures

(The term 'expenditures' means amounts paid or incurred 36 Total lobbying expenditures to influence public opinion (grassroots lobbying) 37 Total lobbying expenditures to influence a legislative body (direct lobbying) 38 Total lobbying expenditures (add lines 36 and 37) 39 Other exempt purpose expenditures 40 Total exempt purpose expenditures (add lines 38 and 39) 41 Lobbying nontaxable amount Enter the amount from the following table The lobbying nontaxable amount Is If the amount on line 40 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

(a) Affiliated group

totals

(b) To be completed for ALL

electing organizations

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- it 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.
1.

42 43 44
1

.1

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 11 of the instructions ) Lobbying Expenditures During 4 -Year Averaging Period Calendar year ( or fiscal year beginning In) 45 Lobbying nontaxable (a) 2005 (b) 2004 (c) 2003 (d) 2002 N/A (e) Total

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

0
0

exp enditures
48 Grassroots nontaxable

0 0
0 0 N/A Yes No Amount

amount
49 Grassroots ceiling amount ( 150% of line 48 ( e )) 50 Grassroots lobbying ex 0% of es

I Part Vl-B

Lobbying Activity by Nonelecting Public Charities

(For reporting only by organizations that did not complete Part VI-A) (See page 11 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 b c d e f g h Volunteers Paid staff or management (Include compensation in expenses reported on lines c through h.) Media advertisements Mailings to members, legislators, or the public Publications, or published or broadcast statements Grants to other organizations for lobbying purposes Direct contact with legislators, their staffs, government officials, or a legislative body Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means Total lobbying expenditures (Add lines c through h.) It "Yes' to any of the above, also attach a statement giving a detailed description of the lobbying activities 06

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

023

Schedule A (Form 990 or 990-EZ) 2005 THE HEARTLAND INSTITUTE 36-3309812 Noncharitable Transfers Transactions and Relationships With Information Regarding To and Pail ^lll
51 Exempt Organizations (See oaae 12 of the instructions) 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? a Transfers from the reporting organization to a nonchardable exempt organization of (1) Cash (ii) Other assets Other transactions (I) Sales or exchanges of assets with a noncharitable exempt organization (li) 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 or fundraising 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 nonchantable exempt organization

Page 6

Yes 51a(i) a(!!) b(i) b(II) b(iii) b(iv) b(v) b(vi) c

No X X X X X X X X X

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 ^ =Yes, Code ( other than section 501(c)(3 )) or in section 527?

L1 No

02-035-os

Schedule A (Form 990 or 990 -EZ) 2005

THE'.HEARTLAND INSTITUTE

36-3309812

FORM 990

GOVERNMENT SECURITIES

STATEMENT

DESCRIPTION U.S. TREASURY BOND

COST/FMV FMV

STATE AND U.S. GOVERNMENT LOCAL GOV'T 980,390.

TOTAL GOV'T SECURITIES 980,390.

TOTAL TO FORM 990,

LINE 54, COL B

980,390.

980,390.

FORM 990

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

STATEMENT

NAME AND ADDRESS

JOSEPH BAST

TITLE AND AVRG HRS/WK

PRESIDENT

COMPENSATION

EMPLOYEE BEN PLAN EXPENSE CONTRIB ACCOUNT

600 EAST WILMETTE ROAD #124 PALATINE, IL 60074 ROBERT BUFORD 1333 N. KINGSBURY AVENUE #301 CHICAGO, IL 60622 WALTER BUCHHOLTZ

40.00

80,79 7.

0.

0.

DIRECTOR 0.00

0.

0.

0.

GOVT REALTIONS ADVISOR

2000 K STREET NW #713

WASHINGTON D.C. 20006

0.00

0.

0.

0.

PAUL FISHER 77 WEST WACKER DRIVE, CHICAGO, IL 60601 JAMES FITZGERALD

1629 COLONIAL PARKWAY

SUITE 4400

HEAD OF REAL ESTATE 0.00

0.

0.

0.

MANAGING DIRECTOR
0.00 0. 0. 0.

INVERNESS,

IL 60067 ATTORNEY 0.00

DAN HALES 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

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

STATEMENT(S)

1,

T,^t4HEARTLAND INSTITUTE ROY MARDEN 330 EAST 46TH STREET, NEW YORK, NY 10017 DAVID PADDEN 100 WEST MONROE,
CHICAGO, IL 60603

36-3309812 DIRECTOR 0.00

SUITE 4J

0.

0.

0.

SUITE 706

DIRECTOR 0.00

0.

0.

0.

FRANK RESNIK 175 EAST DELAWARE PLACE CHICAGO, IL 60611 ELIZABETH ROSE 2110 GUY STREET

DIRECTOR 0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

SAN DIEGO, CA 92103-1539

HERBERT WALBERG 180 EAST PEARSON STREET, 3607 CHICAGO, IL 60611 RAJEEV BAL 501 WEST MICHIGAN MILWAUKEE, WI 53201-3050 THOMAS WALTON 300 RENAISSANCE CENTER, CHAIRMAN SUITE 0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

DIRECTOR MC

482-C27-C81 DETROIT, MI 48265-3000

BIJU GEORGE KULATHAKAL 211 EAST OHIO, # 603 CHICAGO, IL 60611

0.00

0.

0.

0.

DIRECTOR 0.00

0.

0.

0.

TOTALS INCLUDED ON FORM 990,

PART V

80,797.

0.

0.

SCHEDULE A

OTHER INCOME

STATEMENT

DESCRIPTION LAPSED TIME RESTRICTIONS TOTAL TO SCHEDULE A, LINE 22

2004 AMOUNT 15,000. 15,000.

2003 AMOUNT 0.

2002 AMOUNT 0.

2001 AMOUNT 178,000.

0.

0.

178,000.

STATEMENT(S)

2,

.T,HF* HEARTLAND INSTITUTE

36-3309812

FORM 990

EXPLANATION OF RELATIONSHIP PART V-A, LINE 75B

STATEMENT

INDIVIDUAL'S NAME JOSEPH L. BAST

TITLE OR ROLE PRESIDENT

INDIVIDUAL'S NAME DIANE C. BAST

TITLE OR ROLE VICE PRESIDENT

EXPLANATION OF RELATIONSHIP HUSBAND & WIFE

STATEMENT(S)

THE. HEARTLAND INSTITUTE

36-3309812

SCHEDULE A

EXPLANATION OF TRANSACTIONS PART III, LINE 2C

STATEMENT

PAYMENTS OF $12,000 TO ENTERPRISE LOGIC SYSTEMS, BIJU KULATHAKAL, FOR WEBSITE DESIGN.

OWNED BY DIRECTOR -

STATEMENT(S)

MHE, HEARTLAND INSTITUTE

36-3309812

SCHEDULE A

OTHER INCOME

STATEMENT

DESCRIPTION LAPSED TIME RESTRICTIONS TOTAL TO SCHEDULE A, LINE 22

2004 AMOUNT

2003 AMOUNT

2002 AMOUNT

2001 AMOUNT

15,000. 15,000.

0. 0.

0. 0.

178,000. 178,000.

STATEMENT(S)

I FQ m 8865 (Rev. 12-2004)

Page 2

If you are filing for an Additional (not automatic) 3-Month Extension , complete only Part II and check this box .............................. No. [TL] 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).

Part 11
Type or

Additional (not automatic) 3-Month Extension of Time - Must file Origin al and One Copy.
Name of Exempt Organization -

Employer identification number 36-3309812 For IRS use only -

print. HE HEARTLAND IN File Number, street , and room or suite no . If a P.O. box, see instructions. a exteede eye date oor 19 SOUTH LA SALLE STREET , NO. 903 filing the
retwn. See City, town or post office , state , and ZIP code. Fora foreign address, see instructions.

60603 '""`"" C HICAGO , IL Check type of return to be filed (File a separate application for each return):
Form 990 Q Form 990-BL 0 Form 990-EZ El Form 990-PF 0 Form 990-T (sec . 401(a) or 408(a) trust) 0 Form 990-T (trust other than above) 0 Forrn 1041-A El Form 4720

='
ED Form 5227 0 Form 6069

=
0 Form 8870

STOP: Do not complete Part II if you were not already granted an automatic 3-month extension on a previously filed Form 8868.

The books are in the care of

THE HEARTLAND INSTITUTE

TelephoneNo.0- (312 ) 377-4 000

FAX No.

__________________________

If the organization does not have an office or place of business in the United States , check this box,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1 0 . If this is for the whole group , check this If this is for a Group Return , enter the organization's four digit Group Exemption Number (GEN) box ^ 0 . If it is for part of the group , check this box ^ El and attach a list with the names and EINs of all members the extension is for.

4
5 6 7

1 request an additional 3-month extension of time until

For calendar year 2 0 0 5 , or other tax year beginning If this tax year is for less than 12 months , check reason : State in detail why you need the extension

NOVEMBER 15,
Initial return

2006 .
ending Final return 0 Change in accounting period

ADDITIONAL INFORMATION NEEDED TO PREPARE A COMPLETE AND ACCURATE TAX RETURN WAS NOT AVAILABLE AT THIS TIME.
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 ................. $

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 .. ............... ...... $ previously with Form 8868 Balance Due. Subtract line 8b from line 8a . Include your payment with this form , or, i f required, deposit with FTD .. $ coupon or. if regwred , by using EFTPS (Electronic Federal Tax Payment System). See instructions ... ..... N/A

Signature and Verification

Under penalties of perjury, I declare that I have exa ned this form , including accompanying schedules and statements, and to the best of my knowled A ,^ n pNauth9Ji to prepare this form. it is tree, corr ai d complete, and tl Notice to Applicant - To Be Completed by the IRS We have approved this application . Please attach this form to the organization 's return. 9 and belief, ^ l^ r

0 We have not approved this application . However, we have granted a 10day 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. 0 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. Q We cannot consider this application because it was filed after the extended due date of the return for which an extension was requested. 0 Other

By. Director Alternate

t

Date
Enter the address if you want the copy of this application for an additional 3-month extension gt^ ailing Addres the one dressed r above. J-tp naddress

Type or print
521383 2 05-01 -05

Name JAMES F. SEXTON & ASSOC. LTD. Number and street (include suite, room , or apt no.) or a P.O. box number STE A 941 N. PLUM GROVE RD .
City or town, province or state , and country (including postal or ZIP code)

'': SEP r. e006 S^e1^Jl^'4r^ _ ^^r^FL'^UR

S CHAUMBURG ,

I L 60173

`'' ' ^ ^ "_ _

Form 8868 (Rev. 12-2004)