Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat 5.x products, uncheck the "Shrink oversized pages to paper size" and uncheck the "Expand small pages to paper size" options, in the Adobe "Print" dialog. When using Acrobat 6.x and later products versions, select "None" in the "Page Scaling" selection box in the Adobe "Print" dialog. PUBLIC DISCLOSURE COPY 13491027 144064 BGA 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Form ** PUBLIC DISCLOSURE COPY ** 990 A For the 2011 calendar year, or tax year beginning X Address change Name change Initial return Terminated Amended return Application pending D Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Doing Business As Number and street (or P.O. box if mail is not delivered to street address) 223 W. JACKSON BLVD. 36-0802950 Room/suite E Telephone number 900 City or town, state or country, and ZIP + 4 CHICAGO, IL Open to Public Inspection and ending C Name of organization Check if applicable: 2011 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. Department of the Treasury Internal Revenue Service B OMB No. 1545-0047 Return of Organization Exempt From Income Tax 312-427-8330 2,302,369. G H(a) Is this a group return for affiliates? H(b) Are all affiliates included? Gross receipts $ 60606 Expenses Revenue Activities & Governance SHAW Yes X No 223 W. JACKSON BLVD., STE. 900, CHICAGO, IL Yes No ) § (insert no.) 501(c) ( 4947(a)(1) or 527 I Tax-exempt status: X 501(c)(3) If "No," attach a list. (see instructions) H(c) Group exemption number J Website: WWW.BETTERGOV.ORG Trust Association Other K Form of organization: X Corporation L Year of formation: 1923 M State of legal domicile: IL Part I Summary 1 Briefly describe the organization's mission or most significant activities: PROMOTES INTEGRITY, TRANSPARENCY AND ACCOUNTABILITY IN GOVERNMENT. SEE PART III FOR MORE INFORMATION. Net Assets or Fund Balances F Name and address of principal officer:ANDREW Check this box if the organization discontinued its operations or disposed of more than 25% of its net assets. 35 Number of voting members of the governing body (Part VI, line 1a) ~~~~~~~~~~~~~~~~~~~~ 3 35 Number of independent voting members of the governing body (Part VI, line 1b) ~~~~~~~~~~~~~~ 4 16 Total number of individuals employed in calendar year 2011 (Part V, line 2a) ~~~~~~~~~~~~~~~~ 5 85 Total number of volunteers (estimate if necessary) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6 0. Total unrelated business revenue from Part VIII, column (C), line 12 ~~~~~~~~~~~~~~~~~~~~ 7a 0. Net unrelated business taxable income from Form 990-T, line 34 •••••••••••••••••••••• 7b Prior Year Current Year 986,488. 2,258,067. 8 Contributions and grants (Part VIII, line 1h) ~~~~~~~~~~~~~~~~~~~~~ 0. 23,075. 9 Program service revenue (Part VIII, line 2g) ~~~~~~~~~~~~~~~~~~~~~ -1,492. -8,894. 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d) ~~~~~~~~~~~~~ -62,949. -141,417. 11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) ~~~~~~~~ 922,047. 2,130,831. 12 Total revenue - add lines 8 through 11 (must equal Part VIII, column (A), line 12) ••• 0. 0. 13 Grants and similar amounts paid (Part IX, column (A), lines 1-3) ~~~~~~~~~~~ 0. 0. 14 Benefits paid to or for members (Part IX, column (A), line 4) ~~~~~~~~~~~~~ 760,974. 1,284,813. 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5-10) ~~~ 0. 0. 16a Professional fundraising fees (Part IX, column (A), line 11e)~~~~~~~~~~~~~~ 223,623. b Total fundraising expenses (Part IX, column (D), line 25) 2 3 4 5 6 7a b 17 Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) ~~~~~~~~~~~~~ 18 Total expenses. Add lines 13-17 (must equal Part IX, column (A), line 25) ~~~~~~~ 19 Revenue less expenses. Subtract line 18 from line 12 •••••••••••••••• 401,601. 1,162,575. -240,528. Beginning of Current Year 677,599. 38,808. 638,791. 20 Total assets (Part X, line 16) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 21 Total liabilities (Part X, line 26) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 22 Net assets or fund balances. Subtract line 21 from line 20 •••••••••••••• Part II 399,577. 1,684,390. 446,441. End of Year 1,145,419. 60,187. 1,085,232. Signature Block 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. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge. Sign Here = = Signature of officer Type or print name and title Print/Type preparer's name Paid Preparer Use Only Date ANDREW SHAW, EXECUTIVE DIRECTOR Preparer's signature DIRK AHLBECK BDO USA, LLP Firm's name 1665 ELK BOULEVARD Firm's address DES PLAINES, IL 60016-4776 9 9 Date 10/27/15 Check if self-employed Firm's EIN 9 PTIN P00237637 13-5381590 847-824-4000 X Yes May the IRS discuss this return with the preparer shown above? (see instructions) ••••••••••••••••••••• No 132001 01-23-12 LHA For Paperwork Reduction Act Notice, see the separate instructions. Form 990 (2011) Phone no. BETTER GOVERNMENT ASSOCIATION, INC. Part III Statement of Program Service Accomplishments Form 990 (2011) 1 2 3 4 4a 4b Page 2 X Check if Schedule O contains a response to any question in this Part III ••••••••••••••••••••••••••••• Briefly describe the organization's mission: TO PROMOTE INTEGRITY, TRANSPARENCY AND ACCOUNTABILITY IN GOVERNMENT BY EXPOSING WASTE, FRAUD AND CORRUPTION, PROMOTING EFFECTIVE PUBLIC POLICY AND ENAGING THE COMMUNITY. Did the organization undertake any significant program services during the year which were not listed on the prior Form 990 or 990-EZ? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes If "Yes," describe these new services on Schedule O. Did the organization cease conducting, or make significant changes in how it conducts, any program services?~~~~~~ Yes If "Yes," describe these changes on Schedule O. Describe the organization's program service accomplishments for each of its three largest program services, as measured by expenses. Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported. 716,428. including grants of $ (Code: ) (Expenses $ ) (Revenue $ X No X No INVESTIGATIVE UNIT - THE BGA'S INVESTIGATIVE UNIT LOOKS INTO ALLEGATIONS OF WASTE, FRAUD AND CORRUPTION IN CITY, COUNTY, SUBURBAN AND STATE GOVERNMENT. THE RESULTS OF THESE IN-DEPTH INVESTIGATIONS ARE MADE PUBLIC THROUGH PARTNERSHIPS WITH LOCAL MEDIA. INVESTIGATIONS INCLUDE ANALYSIS OF GOVERNMENT BUDGETS, CONTRACTS AND PAYROLLS, MONITORING OF EFFICIENT ALLOCATION OF GOVERNMENT RESOURCES AND REVIEW OF OPEN, HONEST AND FAIR LEGISLATIVE PROCESSES. THE BGA FILED NEARLY 100 INVESTIGATIONS IN 2011. IN A SIGNIFICANT STEP FOR THE ORGANIZATION, THIS YEAR MARKED THE INITIATION OF THE RESCUING ILLINOIS PROJECT, AN ONGOING SERIES OF IN-DEPTH REPORTS ABOUT IMPROVING AND REFORMING STATE GOVERNMENT AND FOCUSING ON THE STATE'S SYSTEMIC PROBLEMS SUCH AS FAILING PUBLIC PENSIONS SYSTEMS, WRONGFUL CONVICTIONS, AND THE HIGH 169,374. including grants of $ 23,075. (Code: ) (Expenses $ ) (Revenue $ CITIZEN EDUCATION & COMMUNICATION PROGRAMS (CIVIC ENGAGMENT)- IN 2011 THE BGA CONTINUED THE BUILD OUT OF ITS RENOVATED WEBSITE TO MAKE IT A HUB FOR ALL THINGS GOOD GOVERNMENT. THROUGH THE WEBSITE AND ITS COMPREHENSIVE DIGITAL STRATEGY, THE BGA PRESENTS ITS JOURNALISTIC INVESTIGATIONS, EDUCATES THE PUBLIC ON IMPORTANT GOVERNMENT ISSUES AND TRAINS CITIZENS ON TECHNIQUES FOR MONITORING GOVERNMENT ACTIVITIES. NOTABLY IN 2011 THE BGA LAUNCHED THE ACTION CENTER ON ITS WEBSITE WHICH EMPOWERS CITIZENS TO STAY UP TO DATE ON POLICY PRIORITIES AND CONNECT DIRECTLY WITH LAWMAKERS TO ACHIEVE POLICY CAMPAIGNS. 155,101. including grants of $ ) (Expenses $ ) (Revenue $ POLICY ADVOCACY - IN ITS FIRST FULL YEAR OF EXISTENCE THE BGA'S POLICY UNIT MADE GREAT STRIDES IN SHAPING THE DISCUSSION, BOTH IN CHICAGO AND IN SPRINGFIELD, ABOUT WAYS TO IMPROVE OUR GOVERNMENT. THE POLICY TEAM WAS AT THE FOREFRONT OF KEY ISSUES, RELAYING THEM TO BGA FOLLOWERS ON THE THINK TANK BLOG AND IN THE MEDIA. IN 2011 THE POLICY UNIT FOCUSED ON STREAMLINING GOVERNMENT, KEEPING THE FREEDOM OF INFORMATION ACT FROM BEING DIMINISHED, WRONGFUL CONVICTION REFORM, PUBLIC PENSION REFORM AND GREATER FINANCIAL ACCOUNTABILITY RELATED TO THE PROCUREMENT PROCESS. 4c (Code: 4d Other program services (Describe in Schedule O.) 83,057. including grants of $ (Expenses $ 1,123,960. Total program service expenses J 4e 36-0802950 132002 02-09-12 13491027 144064 BGA ) (Revenue $ ) ) ) ) Form 990 (2011) SEE SCHEDULE O FOR CONTINUATION(S) 2 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part IV Checklist of Required Schedules Form 990 (2011) 36-0802950 Page 3 Yes 1 2 3 4 5 6 7 8 9 10 11 a b c d e f 12a b 13 14a b 15 16 Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If "Yes," complete Schedule A ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Is the organization required to complete Schedule B, Schedule of Contributors? ~~~~~~~~~~~~~~~~~~~~~~ Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If "Yes," complete Schedule C, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes," complete Schedule C, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C, Part III ~~~~~~~~~~~~~~ Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part I Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part II~~~~~~~~~~~~~~ Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes," complete Schedule D, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IV ~~ Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part V ~~~~~~~~~~~~~~~~~~~~~~~~ If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable. Did the organization report an amount for land, buildings, and equipment in Part X, line 10? If "Yes," complete Schedule D, Part VI ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for investments - other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VII ~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for investments - program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part VIII ~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If "Yes," complete Schedule D, Part IX ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part X ~~~~~~ Did the organization's separate or consolidated financial statements for the tax year include a footnote that addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part X ~~~~ Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete Schedule D, Parts XI, XII, and XIII ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Was the organization included in consolidated, independent audited financial statements for the tax year? If "Yes," and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional~~~ Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes," complete Schedule E ~~~~~~~~~~~~~~ Did the organization maintain an office, employees, or agents outside of the United States? ~~~~~~~~~~~~~~~~ Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes," complete Schedule F, Parts I and IV ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the United States? If "Yes," complete Schedule F, Parts II and IV ~~~~~~~~~~~~~~~~~ Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the United States? If "Yes," complete Schedule F, Parts III and IV ~~~~~~~~~~~~~~~~~~~~~ Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If "Yes," complete Schedule G, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If "Yes," complete Schedule G, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 20a Did the organization operate one or more hospital facilities? If "Yes," complete Schedule H ~~~~~~~~~~~~~~~~ b If "Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? •••••••••• 1 2 X X X 3 4 X 5 X 6 X 7 X 8 X 9 X 10 X 11a X 11b X 11c X 11d 11e X 11f X 12a X 13491027 144064 BGA X 12b 13 14a X X X 14b X 15 X 16 X 17 X 17 132003 01-23-12 No 18 X X 19 X 20a 20b Form 990 (2011) 3 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part IV Checklist of Required Schedules (continued) Form 990 (2011) 36-0802950 Page 4 Yes 21 22 23 24a b c d 25a b 26 27 28 a b c 29 30 31 32 33 34 35a b 36 37 38 Did the organization report more than $5,000 of grants and other assistance to any government or organization in the United States on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II ~~~~~~~~~~~~~~~~~~ Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If "Yes," complete Schedule I, Parts I and III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation of the organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," complete Schedule J ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If "Yes," answer lines 24b through 24d and complete Schedule K. If "No", go to line 25 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? ~~~~~~~~~~~ Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year? ~~~~~~~~~~~ Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~ Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If "Yes," complete Schedule L, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization's tax year? If "Yes," complete Schedule L, Part II ~~~~~~~~~~~ Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family member of any of these persons? If "Yes," complete Schedule L, Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions): A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV ~~~~~~~~~~~ A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV ~~ An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV~~~~~~~~~~~~~~~~~~~~~ Did the organization receive more than $25,000 in non-cash contributions? If "Yes," complete Schedule M ~~~~~~~~~ Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes," complete Schedule M ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N, Part I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Schedule R, Part I ~~~~~~~~~~~~~~~~~~~~~~~~ Was the organization related to any tax-exempt or taxable entity? If "Yes," complete Schedule R, Parts II, III, IV, and V, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a controlled entity within the meaning of section 512(b)(13)? ~~~~~~~~~~~~~~~~~~ Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If "Yes," complete Schedule R, Part V, line 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If "Yes," complete Schedule R, Part V, line 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI ~~~~~~~~ Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O ••••••••••••••••••••••••••••••• 132004 01-23-12 13491027 144064 BGA No 21 X 22 X 23 24a 24b X X 24c 24d 25a X 25b X 26 X 27 X 28a 28b X X 28c 29 X X 30 X 31 X 32 X 33 X 34 35a X X 35b X 36 X 37 X X 38 Form 990 (2011) 4 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Statements Regarding Other IRS Filings and Tax Compliance Form 990 (2011) Part V 36-0802950 Page 5 Check if Schedule O contains a response to any question in this Part V ••••••••••••••••••••••••••••• 19 1a Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable ~~~~~~~~~~~ 1a 0 b Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable ~~~~~~~~~~ 1b c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ••••••••••••••••••••••••••••••••••••••••••• 1c 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, 16 filed for the calendar year ending with or within the year covered by this return ~~~~~~~~~~ 2a b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?~~~~~~~~~~ 2b Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file (see instructions) 3a Did the organization have unrelated business gross income of $1,000 or more during the year? ~~~~~~~~~~~~~~ 3a b If "Yes," has it filed a Form 990-T for this year? If "No," provide an explanation in Schedule O ~~~~~~~~~~~~~~~ 3b 4a 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)?~~~~~~~ 4a b If "Yes," enter the name of the foreign country: J See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. 5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? ~~~~~~~~~~~~ 5a b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?~~~~~~~~~ 5b c If "Yes," to line 5a or 5b, did the organization file Form 8886-T? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5c 6a Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6a b If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6b 7 Organizations that may receive deductible contributions under section 170(c). a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor? 7a b If "Yes," did the organization notify the donor of the value of the goods or services provided? ~~~~~~~~~~~~~~~ 7b c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? •••••••••••••••••••••••••••••••••••••••••••••••••••• 7c d If "Yes," indicate the number of Forms 8282 filed during the year ~~~~~~~~~~~~~~~~ 7d e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? ~~~~~~~ 7e f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? ~~~~~~~~~ 7f g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?~ 7g h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C? 7h 8 Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year? 8 Yes No X X X X X X X X X X X 9 Sponsoring organizations maintaining donor advised funds. a Did the organization make any taxable distributions under section 4966?~~~~~~~~~~~~~~~~~~~~~~~~~~ b Did the organization make a distribution to a donor, donor advisor, or related person? ~~~~~~~~~~~~~~~~~~~ 10 Section 501(c)(7) organizations. Enter: a Initiation fees and capital contributions included on Part VIII, line 12 ~~~~~~~~~~~~~~~ 10a b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities ~~~~~~ 10b 11 Section 501(c)(12) organizations. Enter: a Gross income from members or shareholders ~~~~~~~~~~~~~~~~~~~~~~~~~~ 11a b Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 11b 12a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? b If "Yes," enter the amount of tax-exempt interest received or accrued during the year •••••• 12b 13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organization licensed to issue qualified health plans in more than one state? ~~~~~~~~~~~~~~~~~~~~~ Note. See the instructions for additional information the organization must report on Schedule O. b Enter the amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans ~~~~~~~~~~~~~~~~~~~~~~ 13b c Enter the amount of reserves on hand ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13c 14a Did the organization receive any payments for indoor tanning services during the tax year? ~~~~~~~~~~~~~~~~ b If "Yes," has it filed a Form 720 to report these payments? If "No," provide an explanation in Schedule O •••••••••• 132005 01-23-12 13491027 144064 BGA 9a 9b 12a 13a X 14a 14b Form 990 (2011) 5 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 6 For each "Yes" response to lines 2 through 7b below, and for a "No" response Part VI Governance, Management, and Disclosure Form 990 (2011) to line 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions. Check if Schedule O contains a response to any question in this Part VI ••••••••••••••••••••••••••••• Section A. Governing Body and Management 1a Enter the number of voting members of the governing body at the end of the tax year ~~~~~~ If there are material differences in voting rights among members of the governing body, or if the governing body delegated broad authority to an executive committee or similar committee, explain in Schedule O. 1a Yes 35 35 1b b Enter the number of voting members included in line 1a, above, who are independent ~~~~~~ 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2 3 Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors, or trustees, or key employees to a management company or other person? ~~~~~~~~~~~~~~ 3 4 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? ~~~~~ 5 5 Did the organization become aware during the year of a significant diversion of the organization's assets? ~~~~~~~~~ 6 6 Did the organization have members or stockholders? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members of the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7a b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, or persons other than the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7b 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: a The governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b Each committee with authority to act on behalf of the governing body? ~~~~~~~~~~~~~~~~~~~~~~~~~~ Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If "Yes," provide the names and addresses in Schedule O ••••••••••••••••• Section B. Policies (This Section B requests information about policies not required by the Internal Revenue Code.) 8a 8b X X X X X X X X X 9 Yes b Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ~~~~~~ c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe in Schedule O how this was done ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13 14 15 a b 16a b Did the organization have a written whistleblower policy? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the organization have a written document retention and destruction policy? ~~~~~~~~~~~~~~~~~~~~~~ Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? The organization's CEO, Executive Director, or top management official ~~~~~~~~~~~~~~~~~~~~~~~~~~ Other officers or key employees of the organization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes" to line 15a or 15b, describe the process in Schedule O (see instructions). Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? •••••••••••••••••••••••••••••••••••• Section C. Disclosure 17 18 19 20 No X 9 10a Did the organization have local chapters, branches, or affiliates? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b If "Yes," did the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? ~~~~~~~~~~~~~ 11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filing the form? b Describe in Schedule O the process, if any, used by the organization to review this Form 990. 12a Did the organization have a written conflict of interest policy? If "No," go to line 13 ~~~~~~~~~~~~~~~~~~~~ X 10a 10b 11a X 12a 12b X X 12c 13 14 X X X 15a 15b X X 16a No X X 16b List the states with which a copy of this Form 990 is required to be filed JIL Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (Section 501(c)(3)s only) available for public inspection. Indicate how you made these available. Check all that apply. X Upon request Own website Another's website Describe in Schedule O whether (and if so, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year. State the name, physical address, and telephone number of the person who possesses the books and records of the organization: EMMETT MURPHY - 312-427-8330 223 W. JACKSON BLVD, STE 900 , CHICAGO, IL 132006 01-23-12 13491027 144064 BGA 60606 Form 990 (2011) 6 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Part VII Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Form 990 (2011) Page 7 Check if Schedule O contains a response to any question in this Part VII ••••••••••••••••••••••••••••• Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization's tax year. ¥ List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation. Enter -0- in columns (D), (E), and (F) if no compensation was paid. ¥ List all of the organization's current key employees, if any. See instructions for definition of "key employee." ¥ List the organization's five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations . ¥ List all of the organization's former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. ¥ List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. (1) TAMARA ASKEW DIRECTOR (2) FRANCIS BEIDLER III DIRECTOR (3) ERIC BERLIN DIRECTOR (4) ROBERT CARSON DIRECTOR (5) PHIL CLEMENT VICE CHAIR (6) PATRICK COFFEY DIRECTOR (7) PEDRO DEJESUS DIRECTOR (8) PATRICK COLLINS DIRECTOR (9) JOSEPH HASSON DIRECTOR (10) MARGARET DALEY DIRECTOR (11) SAMUEL FIFER DIRECTOR (12) JAN GRAYSON DIRECTOR (13) TED HAWKINS TREASURER (14) H. RODERIC HEARD CHAIR (15) SCOTT HODES DIRECTOR (16) GRAHAM GRADY DIRECTOR (17) GARY KLEINRICHERT DIRECTOR 132007 01-23-12 13491027 144064 BGA Former Highest compensated employee Key employee Officer Institutional trustee Individual trustee or director Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee. (A) (B) (C) (D) (E) Position Name and Title Average Reportable Reportable (do not check more than one hours per box, unless person is both an compensation compensation officer and a director/trustee) week from from related (describe the organizations hours for organization (W-2/1099-MISC) related (W-2/1099-MISC) organizations in Schedule O) (F) Estimated amount of other compensation from the organization and related organizations 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X X 1.00 X X 0. 0. 0. 1.00 X X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. Form 990 (2011) 7 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 1b c d 2 Former Highest compensated employee Officer Key employee (18) LUDWIG KOLMAN DIRECTOR (19) HILL HAMMOCK DIRECTOR (20) DAVID LUNDY IMMD. PAST CHAIR (21) CRAIG MCCROHON SECRETARY (22) STEVE MILLER DIRECTOR (23) HEIDI RUDOLPH DIRECTOR (24) JAMES NEWCOMB DIRECTOR (25) RACHEL NIEWOEHNER DIRECTOR (26) LOIS SCOTT DIRECTOR Institutional trustee Individual trustee or director BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 8 Form 990 (2011) (continued) Part VII Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (B) (C) (A) (D) (E) (F) Position Average Name and title Reportable Reportable Estimated (do not check more than one hours per box, unless person is both an compensation compensation amount of officer and a director/trustee) week from from related other (describe the organizations compensation hours for organization (W-2/1099-MISC) from the related (W-2/1099-MISC) organization organizations and related in Schedule organizations O) 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X X 0. 0. 0. 1.00 X X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 528,360. 528,360. 0. 0. 0. 0. 0. 0. 75,701. 75,701. Sub-total ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total from continuation sheets to Part VII, Section A ~~~~~~~~ Total (add lines 1b and 1c) •••••••••••••••••••••• Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 4 Yes 3 Did the organization list any former officer, director, or trustee, key employee, or highest compensated employee on line 1a? If "Yes," complete Schedule J for such individual ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If "Yes," complete Schedule J for such individual~~~~~~~~~~~~~ 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If "Yes," complete Schedule J for such person •••••••••••••••••••••••• Section B. Independent Contractors X 3 4 X 5 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. Report compensation for the calendar year ending with or within the organization's tax year. (A) (B) (C) Name and business address Description of services Compensation NONE 2 Total number of independent contractors (including but not limited to those listed above) who received more than 0 $100,000 of compensation from the organization SEE PART VII, SECTION A CONTINUATION SHEETS 132008 01-23-12 13491027 144064 BGA No X Form 990 (2011) 8 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 (27) LISA C. SNOW DIRECTOR (28) KRISTOFER SWANSON DIRECTOR (29) LORI YOKOYAMA DIRECTOR (30) DAVID HOFFMAN DIRECTOR (31) MARY LEE CULLEN LEAHY DIRECTOR (32) JACK MODZELEWSKI DIRECTOR (33) JOSE PADILLA DIRECTOR (34) JULIET SORENSEN DIRECTOR (35) ROBIN STEANS DIRECTOR (36) ANDREW SHAW EXECUTIVE DIRECTOR (37) RITA MCLENNON CHIEF OPERATING OFFICER (38) ROBERT REED DIR. OF PROGRAMMING & INVESTIGATIONS (39) ROBERT HERGUTH EDITOR OF INVESTIGATIONS Former Highest compensated employee Key employee Officer Institutional trustee Individual trustee or director BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Form 990 (2011) (continued) Part VII Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) (B) (C) (D) (E) (F) Name and title Average Position Reportable Reportable Estimated hours (check all that apply) compensation compensation amount of per from from related other week the organizations compensation organization (W-2/1099-MISC) from the (W-2/1099-MISC) organization and related organizations 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 1.00 X 0. 0. 0. 40.00 X 174,175. 0. 19,188. 40.00 X 140,475. 0. 10,451. 40.00 X 111,060. 0. 24,958. 40.00 X 102,650. 0. 21,104. Total to Part VII, Section A, line 1c ••••••••••••••••••••••••• 132201 05-01-11 13491027 144064 BGA 528,360. 75,701. 9 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Statement of Revenue Form 990 (2011) Part VIII Contributions, Gifts, Grants and Other Similar Amounts 1 a b c d e f Program Service Revenue (A) Total revenue 2 3 4 5 6 Other Revenue 7 8 9 10 11 12 Federated campaigns ~~~~~~ Membership dues ~~~~~~~~ Fundraising events ~~~~~~~~ Related organizations ~~~~~~ Government grants (contributions) All other contributions, gifts, grants, and similar amounts not included above ~~ 1a 1b 1c 1d 1e 1f 13491027 144064 BGA (C) Unrelated business revenue Page 9 (D) Revenue excluded from tax under sections 512, 513, or 514 17,690. 429,968. 1810409. g Noncash contributions included in lines 1a-1f: $ h Total. Add lines 1a-1f ••••••••••••••••• Business Code 900099 a TRANSPARENCY CONF. b c d e f All other program service revenue ~~~~~ g Total. Add lines 2a-2f ••••••••••••••••• Investment income (including dividends, interest, and other similar amounts)~~~~~~~~~~~~~~~~~ Income from investment of tax-exempt bond proceeds Royalties ••••••••••••••••••••••• (i) Real (ii) Personal a Gross rents ~~~~~~~ b Less: rental expenses ~~~ c Rental income or (loss) ~~ d Net rental income or (loss) •••••••••••••• a Gross amount from sales of (i) Securities (ii) Other assets other than inventory b Less: cost or other basis 10,201. and sales expenses ~~~ -10201. c Gain or (loss) ~~~~~~~ d Net gain or (loss) ••••••••••••••••••• a Gross income from fundraising events (not 429,968. of including $ contributions reported on line 1c). See 9,845. Part IV, line 18 ~~~~~~~~~~~~~ a 161217. b Less: direct expenses~~~~~~~~~~ b c Net income or (loss) from fundraising events ••••• a Gross income from gaming activities. See 760. Part IV, line 19 ~~~~~~~~~~~~~ a 120. b Less: direct expenses ~~~~~~~~~ b c Net income or (loss) from gaming activities •••••• a Gross sales of inventory, less returns and allowances ~~~~~~~~~~~~~ a b Less: cost of goods sold ~~~~~~~~ b c Net income or (loss) from sales of inventory •••••• Miscellaneous Revenue Business Code 900099 a MISCELLANEOUS b c d All other revenue ~~~~~~~~~~~~~ e Total. Add lines 11a-11d ~~~~~~~~~~~~~~~ Total revenue. See instructions. ••••••••••••• 132009 01-23-12 (B) Related or exempt function revenue 36-0802950 2258067. 23,075. 23,075. 23,075. 1,307. 1,307. -10,201. -10,201. -151,372. -151372. 640. 640. 9,315. 9,315. 9,315. 2130831. 23,075. 0. -150311. Form 990 (2011) 10 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part IX Statement of Functional Expenses Form 990 (2011) 36-0802950 Page 10 Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D). Check if Schedule O contains a response to any question in this Part IX •••••••••••••••••••••••••• (A) (B) (C) (D) Total expenses Program service Management and Fundraising expenses general expenses expenses Grants and other assistance to governments and organizations in the United States. See Part IV, line 21 Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. 1 2 3 4 5 6 7 8 Grants and other assistance to individuals in the United States. See Part IV, line 22 ~~~ Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16 ~ Benefits paid to or for members ~~~~~~~ Compensation of current officers, directors, trustees, and key employees ~~~~~~~~ Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ~~~ Other salaries and wages ~~~~~~~~~~ Pension plan accruals and contributions (include ~ Other employee benefits ~~~~~~~~~~ Payroll taxes ~~~~~~~~~~~~~~~~ Fees for services (non-employees): Management ~~~~~~~~~~~~~~~~ Legal ~~~~~~~~~~~~~~~~~~~~ Accounting ~~~~~~~~~~~~~~~~~ Lobbying ~~~~~~~~~~~~~~~~~~ Professional fundraising services. See Part IV, line 17 section 401(k) and section 403(b) employer contributions) 9 10 11 a b c d e f g 12 13 14 15 16 17 18 19 20 21 22 23 24 Investment management fees ~~~~~~~~ Other ~~~~~~~~~~~~~~~~~~~~ Advertising and promotion ~~~~~~~~~ Office expenses~~~~~~~~~~~~~~~ Information technology ~~~~~~~~~~~ Royalties ~~~~~~~~~~~~~~~~~~ Occupancy ~~~~~~~~~~~~~~~~~ Travel ~~~~~~~~~~~~~~~~~~~ Payments of travel or entertainment expenses for any federal, state, or local public officials Conferences, conventions, and meetings ~~ Interest ~~~~~~~~~~~~~~~~~~ Payments to affiliates ~~~~~~~~~~~~ Depreciation, depletion, and amortization ~~ Insurance ~~~~~~~~~~~~~~~~~ Other expenses. Itemize expenses not covered above. (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.) ~~ a RESEARCH b FUNDRAISING c POLICY & GOV'T AFFAIRS d DUES AND SUBSCRIPTIONS e All other expenses 25 Total functional expenses. Add lines 1 through 24e 26 Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here 352,625. 154,220. 89,290. 109,115. 718,641. 586,650. 104,064. 27,927. 131,918. 81,629. 100,564. 57,087. 21,708. 14,590. 9,646. 9,952. 2,500. 34,970. 2,500. 34,970. 17,126. 80,484. 27,272. 2,050. 52,078. 2,439. 4,150. 17,833. 23,565. 10,926. 10,573. 1,268. 34,779. 7,456. 25,737. 3,445. 5,912. 2,426. 3,130. 1,585. 2,497. 64. 2,108. 325. 51,128. 14,175. 37,834. 10,489. 8,692. 2,410. 4,602. 1,276. 60,579. 29,778. 16,658. 11,978. 8,197. 1,684,390. 60,579. 620. 29,158. 1,769. 200. 336,807. 4,140. 16,658. 6,069. 7,997. 1,123,960. 223,623. if following SOP 98-2 (ASC 958-720) 132010 01-23-12 13491027 144064 BGA Form 990 (2011) 11 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Form 990 (2011) Part X BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Balance Sheet (A) Beginning of year Cash - non-interest-bearing ~~~~~~~~~~~~~~~~~~~~~~~~~ Savings and temporary cash investments ~~~~~~~~~~~~~~~~~~ Pledges and grants receivable, net ~~~~~~~~~~~~~~~~~~~~~ Accounts receivable, net ~~~~~~~~~~~~~~~~~~~~~~~~~~ Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6 Receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) ~~~~~~~~~~~ 7 Notes and loans receivable, net ~~~~~~~~~~~~~~~~~~~~~~~ 8 Inventories for sale or use ~~~~~~~~~~~~~~~~~~~~~~~~~~ 9 Prepaid expenses and deferred charges ~~~~~~~~~~~~~~~~~~ 10 a Land, buildings, and equipment: cost or other 153,437. basis. Complete Part VI of Schedule D ~~~ 10a 79,668. b Less: accumulated depreciation ~~~~~~ 10b 11 Investments - publicly traded securities ~~~~~~~~~~~~~~~~~~~ 12 Investments - other securities. See Part IV, line 11 ~~~~~~~~~~~~~~ 13 Investments - program-related. See Part IV, line 11 ~~~~~~~~~~~~~ 14 Intangible assets ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 15 Other assets. See Part IV, line 11 ~~~~~~~~~~~~~~~~~~~~~~ 16 Total assets. Add lines 1 through 15 (must equal line 34) •••••••••• 17 Accounts payable and accrued expenses ~~~~~~~~~~~~~~~~~~ 18 Grants payable ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 19 Deferred revenue ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 20 Tax-exempt bond liabilities ~~~~~~~~~~~~~~~~~~~~~~~~~ 21 Escrow or custodial account liability. Complete Part IV of Schedule D ~~~~ 22 Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Liabilities Assets 1 2 3 4 5 23 24 25 Net Assets or Fund Balances 26 27 28 29 30 31 32 33 34 Secured mortgages and notes payable to unrelated third parties ~~~~~~ Unsecured notes and loans payable to unrelated third parties ~~~~~~~~ Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total liabilities. Add lines 17 through 25 •••••••••••••••••• X and complete Organizations that follow SFAS 117, check here lines 27 through 29, and lines 33 and 34. Unrestricted net assets ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Temporarily restricted net assets ~~~~~~~~~~~~~~~~~~~~~~ Permanently restricted net assets ~~~~~~~~~~~~~~~~~~~~~ Organizations that do not follow SFAS 117, check here and complete lines 30 through 34. Capital stock or trust principal, or current funds ~~~~~~~~~~~~~~~ Paid-in or capital surplus, or land, building, or equipment fund ~~~~~~~~ Retained earnings, endowment, accumulated income, or other funds ~~~~ Total net assets or fund balances ~~~~~~~~~~~~~~~~~~~~~~ Total liabilities and net assets/fund balances •••••••••••••••• 132011 01-23-12 13491027 144064 BGA 74,177. 332,196. 111,056. Page 11 (B) End of year 1 2 3 4 127,442. 583,302. 277,289. 5 9,772. 61,357. 85,250. 3,791. 677,599. 25,725. 6 7 8 9 10c 11 12 13 14 15 16 17 18 19 20 21 29,968. 73,769. 47,258. 6,391. 1,145,419. 36,969. 22 23 24 13,083. 38,808. 516,735. 122,056. 638,791. 677,599. 25 26 27 28 29 30 31 32 33 34 23,218. 60,187. 807,943. 277,289. 1,085,232. 1,145,419. Form 990 (2011) 12 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part XI Reconciliation of Net Assets Form 990 (2011) 36-0802950 Page 12 Check if Schedule O contains a response to any question in this Part XI ••••••••••••••••••••••••••••• Total revenue (must equal Part VIII, column (A), line 12) ~~~~~~~~~~~~~~~~~~~~~~~~~~ Total expenses (must equal Part IX, column (A), line 25) ~~~~~~~~~~~~~~~~~~~~~~~~~~ Revenue less expenses. Subtract line 2 from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) ~~~~~~~~~~ Other changes in net assets or fund balances (explain in Schedule O) ~~~~~~~~~~~~~~~~~~~ Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) 1 2 3 4 5 6 Part XII Financial Statements and Reporting 1 2 3 4 5 6 2,130,831. 1,684,390. 446,441. 638,791. 0. 1,085,232. Check if Schedule O contains a response to any question in this Part XII ••••••••••••••••••••••••••••• Yes X 1 2a b c d 3a b Accounting method used to prepare the Form 990: Cash Accrual Other If the organization changed its method of accounting from a prior year or checked "Other," explain in Schedule O. Were the organization's financial statements compiled or reviewed by an independent accountant? ~~~~~~~~~~~~ Were the organization's financial statements audited by an independent accountant? ~~~~~~~~~~~~~~~~~~~ If "Yes" to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? ~~~~~~~~~~~~~~~ If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O. If "Yes" to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both: X Separate basis Consolidated basis Both consolidated and separate basis As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. •••••••••••••••• 132012 01-23-12 13491027 144064 BGA 2a 2b X 2c X 3a No X X 3b Form 990 (2011) 13 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 SCHEDULE A (Form 990 or 990-EZ) 2011 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. Department of the Treasury Internal Revenue Service Name of the organization Part I OMB No. 1545-0047 Public Charity Status and Public Support Open to Public Inspection Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Reason for Public Charity Status (All organizations must complete this part.) See instructions. 36-0802950 The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.) 1 A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 2 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.) 3 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, 4 city, and state: An organization operated for the benefit of a college or university owned or operated by a governmental unit described in 5 section 170(b)(1)(A)(iv). (Complete Part II.) 6 7 X 8 9 10 11 e f g h A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.) A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) 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 exempt 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). (Complete Part III.) An organization organized and operated exclusively to test for public safety. See section 509(a)(4). An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h. a Type I b Type II c Type III - Functionally integrated d Type III - Other 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). 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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 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) and (iii) below, Yes No the governing body of 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) Provide the following information about the supported organization(s). (i) Name of supported organization (ii) EIN (iii) Type of (vi) Is the (iv) Is the organization (v) Did you notify the in col. organization in col. (i) listed in your organization in col. organization (described on lines 1-9 governing document? (i) of your support? (i) organized in the U.S.? above or IRC section (see instructions)) Yes No Yes No Yes No Total LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. 132021 01-24-12 13491027 144064 BGA (vii) Amount of support Schedule A (Form 990 or 990-EZ) 2011 14 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) Schedule A (Form 990 or 990-EZ) 2011 Part II Page 2 (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) 1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ~~ (a) 2007 (b) 2008 (c) 2009 (d) 2010 (e) 2011 (f) Total 173,110. 177,339. 976,149. 986,488. 2,246,727. 4,559,813. 173,110. 177,339. 976,149. 986,488. 2,246,727. 4,559,813. 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 ~~~ 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) ~~~~~~~~~~~~ 941,043. 3,618,770. 6 Public support. Subtract line 5 from line 4. Section B. Total Support Calendar year (or fiscal year beginning in) 7 Amounts from line 4 ~~~~~~~ 8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources ~ 9 Net income from unrelated business activities, whether or not the business is regularly carried on ~ 10 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.) ~~~~ 11 Total support. Add lines 7 through 10 (a) 2007 (b) 2008 (c) 2009 (d) 2010 173,110. 177,339. 976,149. 986,488. 13,259. 5,751. 2,461. 1,225. 104,644. 150,445. 58,773. 55,396. (e) 2011 (f) Total 2,246,727. 4,559,813. 1,307. 24,003. 31,260. 400,518. 4,984,334. 23,075. 12 12 Gross receipts from related activities, etc. (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~ 13 First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here ••••••••••••••••••••••••••••••••••••••••••••• Section C. Computation of Public Support Percentage 72.60 % 14 Public support percentage for 2011 (line 6, column (f) divided by line 11, column (f)) ~~~~~~~~~~~~ 14 64.91 % 15 Public support percentage from 2010 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 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ X b 33 1/3% support test - 2010. If the organization did not check a 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 132022 01-24-12 13491027 144064 BGA 15 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Schedule A (Form 990 or 990-EZ) 2011 Page 3 Part III Support Schedule for Organizations Described in Section 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 (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 ~~~ 7 a 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) 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 section 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)) ~~~~~~~~~~~~ 16 Public support percentage from 2010 Schedule A, Part III, line 15 •••••••••••••••••••• Section D. Computation of Investment Income Percentage 15 16 % % 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 % 19 a 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 •••••••• 132023 01-24-12 Schedule A (Form 990 or 990-EZ) 2011 13491027 144064 BGA 16 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 ** PUBLIC DISCLOSURE COPY ** Schedule B Schedule of Contributors (Form 990, 990-EZ, or 990-PF) Attach to Form 990, Form 990-EZ, or Form 990-PF. Department of the Treasury Internal Revenue Service Name of the organization OMB No. 1545-0047 2011 Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Organization type (check one): Filers of: Form 990 or 990-EZ Section: X 501(c)( 3 ) (enter number) organization 4947(a)(1) nonexempt charitable trust not treated as a private foundation 527 political organization Form 990-PF 501(c)(3) exempt private foundation 4947(a)(1) nonexempt charitable trust treated as a private foundation 501(c)(3) taxable private foundation Check if your organization is covered by the General Rule or a Special Rule. Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions. General Rule For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, $5,000 or more (in money or property) from any one contributor. Complete Parts I and II. Special Rules X For a section 501(c)(3) organization filing Form 990 or 990-EZ that met the 33 1/3% support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi) and received from any one contributor, during the year, a contribution of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II. For a section 501(c)(7), (8), or (10) organization filing Form 990 or 990-EZ that received from any one contributor, during the year, total contributions of more than $1,000 for use exclusively for religious, charitable, scientific, literary, or educational purposes, or the prevention of cruelty to children or animals. Complete Parts I, II, and III. For a section 501(c)(7), (8), or (10) organization filing Form 990 or 990-EZ that received from any one contributor, during the year, contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did not total to more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc., contributions of $5,000 or more during the year. ~~~~~~~~~~~~~~~~~ $ Caution. An organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990, 990-EZ, or 990-PF), but it must answer "No" on Part IV, line 2, of its Form 990; or check the box on line H of its Form 990-EZ or on Part I, line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990, 990-EZ, or 990-PF). LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990, 990-EZ, or 990-PF. Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 123451 01-23-12 Page 2 Schedule B (Form 990, 990-EZ, or 990-PF) (2011) Name of organization Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Part I Contributors 36-0802950 (see instructions). Use duplicate copies of Part I if additional space is needed. (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 1 $ 75,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 2 $ 50,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 3 $ 46,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 4 $ 135,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 5 $ 60,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 6 $ 86,825. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) 123452 01-23-12 13491027 144064 BGA Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 18 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Page 2 Schedule B (Form 990, 990-EZ, or 990-PF) (2011) Name of organization Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Part I Contributors 36-0802950 (see instructions). Use duplicate copies of Part I if additional space is needed. (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 7 $ 100,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 8 $ 110,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 9 $ 100,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 10 $ 400,300. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 11 $ 99,985. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 12 $ 57,500. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) 123452 01-23-12 13491027 144064 BGA Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 19 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Page 2 Schedule B (Form 990, 990-EZ, or 990-PF) (2011) Name of organization Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Part I Contributors 36-0802950 (see instructions). Use duplicate copies of Part I if additional space is needed. (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 13 $ 50,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 14 $ 50,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions 15 $ 50,000. (d) Type of contribution Person Payroll Noncash X (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash $ (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions (d) Type of contribution Person Payroll Noncash $ (Complete Part II if there is a noncash contribution.) (a) No. (b) Name, address, and ZIP + 4 (c) Total contributions $ (d) Type of contribution Person Payroll Noncash (Complete Part II if there is a noncash contribution.) 123452 01-23-12 13491027 144064 BGA Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 20 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Page 3 Employer identification number Schedule B (Form 990, 990-EZ, or 990-PF) (2011) Name of organization BETTER GOVERNMENT ASSOCIATION, INC. Part II Noncash Property (a) No. from Part I 36-0802950 (see instructions). Use duplicate copies of Part II if additional space is needed. (b) Description of noncash property given (c) FMV (or estimate) (see instructions) (d) Date received (c) FMV (or estimate) (see instructions) (d) Date received (c) FMV (or estimate) (see instructions) (d) Date received (c) FMV (or estimate) (see instructions) (d) Date received (c) FMV (or estimate) (see instructions) (d) Date received (c) FMV (or estimate) (see instructions) (d) Date received $ (a) No. from Part I (b) Description of noncash property given $ (a) No. from Part I (b) Description of noncash property given $ (a) No. from Part I (b) Description of noncash property given $ (a) No. from Part I (b) Description of noncash property given $ (a) No. from Part I (b) Description of noncash property given $ 123453 01-23-12 13491027 144064 BGA Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 21 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Page 4 Employer identification number Schedule B (Form 990, 990-EZ, or 990-PF) (2011) Name of organization BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations that total more than $1,000 for the Part III year. Complete columns (a) through (e) and the following line entry. For organizations completing Part III, enter the total of exclusively religious, charitable, etc., contributions of $1,000 or less for the year. (Enter this information once.) $ Use duplicate copies of Part III if additional space is needed. (a) No. from Part I (b) Purpose of gift (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 (a) No. from Part I (b) Purpose of gift Relationship of transferor to transferee (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 (a) No. from Part I (b) Purpose of gift Relationship of transferor to transferee (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 (a) No. from Part I (b) Purpose of gift Relationship of transferor to transferee (c) Use of gift (d) Description of how gift is held (e) Transfer of gift Transferee's name, address, and ZIP + 4 123454 01-23-12 13491027 144064 BGA Relationship of transferor to transferee Schedule B (Form 990, 990-EZ, or 990-PF) (2011) 22 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Political Campaign and Lobbying Activities SCHEDULE C (Form 990 or 990-EZ) For Organizations Exempt From Income Tax Under section 501(c) and section 527 OMB No. 1545-0047 2011 J Complete if the organization is described below. J Attach to Form 990 or Form 990-EZ. Open to Public Inspection See separate instructions. If the organization answered "Yes" to Form 990, Part IV, line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then ¥ Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C. ¥ Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B. ¥ Section 527 organizations: Complete Part I-A only. If the organization answered "Yes" to Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then ¥ Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B. ¥ Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A. If the organization answered "Yes" to Form 990, Part IV, line 5 (Proxy Tax), or Form 990-EZ, Part V, line 35c (Proxy Tax), then ¥ Section 501(c)(4), (5), or (6) organizations: Complete Part III. Name of organization Employer identification number Department of the Treasury Internal Revenue Service Part I-A BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Complete if the organization is exempt under section 501(c) or is a section 527 organization. 1 Provide a description of the organization's direct and indirect political campaign activities in Part IV. 2 Political expenditures ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ J $ 3 Volunteer hours ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Part I-B Complete if the organization is exempt under section 501(c)(3). 1 Enter the amount of any excise tax incurred by the organization under section 4955 ~~~~~~~~~~~~~ J $ 2 Enter the amount of any excise tax incurred by organization managers under section 4955 ~~~~~~~~~~ J $ 3 If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ~~~~~~~~~~~~~~~~~~~ 4a Was a correction made? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b If "Yes," describe in Part IV. Yes Yes No No Part I-C Complete if the organization is exempt under section 501(c), except section 501(c)(3). Enter the amount directly expended by the filing organization for section 527 exempt function activities ~~~~ J $ 1 2 Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ J $ 3 Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ J $ 4 Did the filing organization file Form 1120-POL for this year? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes No 5 Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing organization made payments. For each organization listed, enter the amount paid from the filing organization's funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV. (a) Name (b) Address (c) EIN For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. (d) Amount paid from (e) Amount of political contributions received and filing organization's promptly and directly funds. If none, enter -0-. delivered to a separate political organization. If none, enter -0-. Schedule C (Form 990 or 990-EZ) 2011 LHA 132041 01-27-12 13491027 144064 BGA 23 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)). Schedule C (Form 990 or 990-EZ) 2011 Part II-A A Check J B Check J 1a b c d e f if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures). if the filing organization checked box A and "limited control" provisions apply. (a) Filing (b) Affiliated group Limits on Lobbying Expenditures organization's totals (The term "expenditures" means amounts paid or incurred.) totals Total lobbying expenditures to influence public opinion (grass roots lobbying) ~~~~~~~~~~ Total lobbying expenditures to influence a legislative body (direct lobbying) ~~~~~~~~~~~ Total lobbying expenditures (add lines 1a and 1b) ~~~~~~~~~~~~~~~~~~~~~~~~ Other exempt purpose expenditures ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total exempt purpose expenditures (add lines 1c and 1d) ~~~~~~~~~~~~~~~~~~~~ Lobbying nontaxable amount. Enter the amount from the following table in both columns. If the amount on line 1e, column (a) or (b) 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 g h i j Page 2 20% of the amount on line 1e. $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. Grassroots nontaxable amount (enter 25% of line 1f) ~~~~~~~~~~~~~~~~~~~~~~ Subtract line 1g from line 1a. If zero or less, enter -0- ~~~~~~~~~~~~~~~~~~~~~~ Subtract line 1f from line 1c. If zero or less, enter -0- ~~~~~~~~~~~~~~~~~~~~~~ If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? •••••••••••••••••••••••••••••••••••••• 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 2a through 2f on page 4.) Yes No Lobbying Expenditures During 4-Year Averaging Period Calendar year (or fiscal year beginning in) (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) Total 2 a Lobbying nontaxable amount b Lobbying ceiling amount (150% of line 2a, column(e)) c Total lobbying expenditures d Grassroots nontaxable amount e Grassroots ceiling amount (150% of line 2d, column (e)) f Grassroots lobbying expenditures Schedule C (Form 990 or 990-EZ) 2011 132042 01-27-12 13491027 144064 BGA 24 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)). Schedule C (Form 990 or 990-EZ) 2011 Part II-B For each "Yes" response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity. 1 a b c d e f g h i j 2a b c d During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of: Volunteers? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ~ 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 similar means? ~~~~ Other activities? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total. Add lines 1c through 1i ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? ~~~~ If "Yes," enter the amount of any tax incurred under section 4912 ~~~~~~~~~~~~~~~~ If "Yes," enter the amount of any tax incurred by organization managers under section 4912 ~~~ If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? •••••• (a) Yes X X X (b) No Amount X X X X X 7,794. X 1,191. 8,985. X Part III-A Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6). Yes 1 2 3 Were substantially all (90% or more) dues received nondeductible by members? ~~~~~~~~~~~~~~~~~ Did the organization make only in-house lobbying expenditures of $2,000 or less? ~~~~~~~~~~~~~~~~ Did the organization agree to carry over lobbying and political expenditures from the prior year? ••••••••• Page 3 No 1 2 3 Part III-B Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered "No" OR (b) Part III-A, line 3, is answered "Yes." Dues, assessments and similar amounts from members ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid). a Current year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b Carryover from last year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ c Total ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues ~~~~~~~~ 4 If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5 Taxable amount of lobbying and political expenditures (see instructions) ••••••••••••••••••••• 1 2 Part IV Supplemental Information 1 2a 2b 2c 3 4 5 Complete this part to provide the descriptions required for Part I-A, line 1; Part I-B, line 4; Part I-C, line 5; Part II-A; and Part II-B, line 1. Also, complete this part for any additional information. PART II-B, LINE 1, LOBBYING ACTIVITIES: PROVIDING RESEARCH, REPORTS AND RECOMMENDATIONS FOR IMPROVING CURRENT POLICIES AND LEGISLATION BASED ON BGA INVESTIGATIONS. Schedule C (Form 990 or 990-EZ) 2011 132043 01-27-12 13491027 144064 BGA 25 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 SCHEDULE D (Form 990) Department of the Treasury Internal Revenue Service 2011 Complete if the organization answered "Yes," to Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. Attach to Form 990. See separate instructions. Name of the organization Part I OMB No. 1545-0047 Supplemental Financial Statements Open to Public Inspection Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6. (a) Donor advised funds (b) Funds and other accounts Total number at end of year ~~~~~~~~~~~~~~~ Aggregate contributions to (during year) ~~~~~~~~ Aggregate grants from (during year) ~~~~~~~~~~ Aggregate value at end of year ~~~~~~~~~~~~~ Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? ~~~~~~~~~~~~~~~~~~ 6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can be used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit? •••••••••••••••••••••••••••••••••••••••••••• Part II Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7. 1 2 3 4 5 Yes No Yes No 1 Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area Protection of natural habitat Preservation of a certified historic structure Preservation of open space 2 Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. Held at the End of the Tax Year a b c d 3 4 5 6 7 8 9 Total number of conservation easements ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2a Total acreage restricted by conservation easements ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2b Number of conservation easements on a certified historic structure included in (a) ~~~~~~~~~~~~ 2c Number of conservation easements included in (c) acquired after 8/17/06, and not on a historic structure listed in the National Register ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year Number of states where property subject to conservation easement is located Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and enforcement of the conservation easements it holds? ~~~~~~~~~~~~~~~~~~~~~~~~~ Yes Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year $ Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describes the organization's accounting for conservation easements. Part III No No Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" to Form 990, Part IV, line 8. 1a If the organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIV, the text of the footnote to its financial statements that describes these items. b If the organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works of art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: (i) Revenues included in Form 990, Part VIII, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ (ii) Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ 2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items: a Revenues included in Form 990, Part VIII, line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ b Assets included in Form 990, Part X ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ $ LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. 132051 01-23-12 13491027 144064 BGA Schedule D (Form 990) 2011 26 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 2 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) Schedule D (Form 990) 2011 Part III Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply): a Public exhibition d Loan or exchange programs b Scholarly research e Other c Preservation for future generations 4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIV. 5 During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization's collection? ••••••••••••• Yes No Part IV Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 3 1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990, Part X? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b If "Yes," explain the arrangement in Part XIV and complete the following table: Yes No Amount Beginning balance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1c Additions during the year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1d Distributions during the year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1e Ending balance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1f Did the organization include an amount on Form 990, Part X, line 21? ~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," explain the arrangement in Part XIV. Part V Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10. c d e f 2a b Yes No (a) Current year (b) Prior year (c) Two years back (d) Three years back (e) Four years back Beginning of year balance ~~~~~~~ Contributions ~~~~~~~~~~~~~~ Net investment earnings, gains, and losses Grants or scholarships ~~~~~~~~~ Other expenditures for facilities and programs ~~~~~~~~~~~~~ f Administrative expenses ~~~~~~~~ g End of year balance ~~~~~~~~~~ 2 Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as: a Board designated or quasi-endowment % b Permanent endowment % c Temporarily restricted endowment % The percentages in lines 2a, 2b, and 2c should equal 100%. 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: Yes No (i) unrelated organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3a(i) (ii) related organizations ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3a(ii) b If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? ~~~~~~~~~~~~~~~~~~~~~~ 3b 4 Describe in Part XIV the intended uses of the organization's endowment funds. Part VI Land, Buildings, and Equipment. See Form 990, Part X, line 10. 1a b c d e Description of property (a) Cost or other basis (investment) (b) Cost or other basis (other) (c) Accumulated depreciation (d) Book value 1a Land ~~~~~~~~~~~~~~~~~~~~ b Buildings ~~~~~~~~~~~~~~~~~~ 4,669. 246. 4,423. c Leasehold improvements ~~~~~~~~~~ 90,228. 54,972. 35,256. d Equipment ~~~~~~~~~~~~~~~~~ 58,540. 24,450. 34,090. e Other •••••••••••••••••••• 73,769. (Column (d) must equal Form 990, Part X, column (B), line 10(c).) Total. Add lines 1a through 1e. •••••••••••• Schedule D (Form 990) 2011 132052 01-23-12 13491027 144064 BGA 27 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part VII Investments - Other Securities. See Form 990, Part X, line 12. Schedule D (Form 990) 2011 (a) Description of security or category (including name of security) (b) Book value 36-0802950 Page 3 (c) Method of valuation: Cost or end-of-year market value (1) Financial derivatives ~~~~~~~~~~~~~~~ (2) Closely-held equity interests ~~~~~~~~~~~ (3) Other (A) (B) (C) (D) (E) (F) (G) (H) (I) Total. (Col (b) must equal Form 990, Part X, col (B) line 12.) Part VIII Investments - Program Related. See Form 990, Part X, line 13. (a) Description of investment type (b) Book value (c) Method of valuation: Cost or end-of-year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Col (b) must equal Form 990, Part X, col (B) line 13.) Part IX Other Assets. See Form 990, Part X, line 15. (a) Description (b) Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Total. (Column (b) must equal Form 990, Part X, col (B) line 15.) •••••••••••••••••••••••••••• Part X Other Liabilities. See Form 990, Part X, line 25. (a) Description of liability (b) Book value 1. (1) Federal income taxes 23,218. (2) DEFERRED RENT (3) (4) (5) (6) (7) (8) (9) (10) (11) 23,218. Total. (Column (b) must equal Form 990, Part X, col (B) line 25.) ••••• FIN 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under 2. FIN 48 (ASC 740). 132053 Schedule D (Form 990) 2011 01-23-12 13491027 144064 BGA 28 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 4 Part XI Reconciliation of Change in Net Assets from Form 990 to Audited Financial Statements 2,130,831. 1 Total revenue (Form 990, Part VIII, column (A), line 12) ~~~~~~~~~~~~~~~~~~~~~~ 1 1,684,390. 2 Total expenses (Form 990, Part IX, column (A), line 25) ~~~~~~~~~~~~~~~~~~~~~~ 2 446,441. 3 Excess or (deficit) for the year. Subtract line 2 from line 1 ~~~~~~~~~~~~~~~~~~~~~ 3 Schedule D (Form 990) 2011 4 5 6 7 8 9 10 Net unrealized gains (losses) on investments ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Investment expenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Prior period adjustments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other (Describe in Part XIV.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total adjustments (net). Add lines 4 through 8 ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excess or (deficit) for the year per audited financial statements. Combine lines 3 and 9 ••••••• 4 5 6 7 8 9 10 446,441. Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return 1 2 a b c d e 3 4 a b c 5 Total revenue, gains, and other support per audited financial statements ~~~~~~~~~~~~~~~~~~~ 1 Amounts included on line 1 but not on Form 990, Part VIII, line 12: Net unrealized gains on investments ~~~~~~~~~~~~~~~~~~~~~~ 2a 194,385. Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~ 2b Recoveries of prior year grants ~~~~~~~~~~~~~~~~~~~~~~~~~ 2c 161,337. Other (Describe in Part XIV.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d Add lines 2a through 2d ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2e Subtract line 2e from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 Amounts included on Form 990, Part VIII, line 12, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b ~~~~~~~~ 4a -10,201. Other (Describe in Part XIV.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 4b Add lines 4a and 4b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4c Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ••••••••••••••••• 5 1 2 a b c d e 3 4 a b c 5 Total expenses and losses per audited financial statements ~~~~~~~~~~~~~~~~~~~~~~~~~~ 1 Amounts included on line 1 but not on Form 990, Part IX, line 25: 169,385. Donated services and use of facilities ~~~~~~~~~~~~~~~~~~~~~~ 2a Prior year adjustments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2b Other losses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2c 161,337. Other (Describe in Part XIV.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 2d Add lines 2a through 2d ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2e Subtract line 2e from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b ~~~~~~~~ 4a Other (Describe in Part XIV.) ~~~~~~~~~~~~~~~~~~~~~~~~~~ 4b Add lines 4a and 4b ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4c Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) •••••••••••••••• 5 Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return 2,496,754. 355,722. 2,141,032. -10,201. 2,130,831. 2,015,112. 330,722. 1,684,390. 0. 1,684,390. Part XIV Supplemental Information Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X, line 2; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information. PART X, LINE 2: THE ORGANIZATION IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, EXCEPT FOR NET INCOME DERIVED FROM UNRELATED BUSINESS ACTIVITIES. DURING THE YEARS ENDED DECEMBER 31, 2011 AND 2010, THE ORGANIZATION DID NOT HAVE ANY UNRELATED BUSINESS ACTIVITIES. THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, INCLUDING ITS TAX EXEMPT STATUS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. THE ORGANIZATION'S FEDERAL EXEMPT ORGANIZATION 132054 01-23-12 13491027 144064 BGA Schedule D (Form 990) 2011 29 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Part XIV Supplemental Information (continued) Schedule D (Form 990) 2011 36-0802950 Page 5 BUSINESS INCOME TAX RETURNS (FORM 990-T) FOR THE YEARS ENDED DECEMBER 31, 2010, 2009, AND 2008 ARE SUBJECT TO EXAMINATION BY THE IRS, GENERALLY FOR THREE YEARS AFTER THEY WERE FILED. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENTS EXPENSE 161,337. PART XII, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF FIXED ASSET -10,201. PART XIII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENTS EXPENSE 132055 01-23-12 13491027 144064 BGA 161,337. Schedule D (Form 990) 2011 30 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Supplemental Information Regarding Fundraising or Gaming Activities SCHEDULE G (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service Name of the organization 2011 Complete if the organization answered "Yes" to Form 990, Part IV, lines 17, 18, or 19, Open To Public or if the organization entered more than $15,000 on Form 990-EZ, line 6a. Inspection Attach to Form 990 or Form 990-EZ. See separate instructions. Employer identification number BETTER GOVERNMENT ASSOCIATION, INC. Part I OMB No. 1545-0047 36-0802950 Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17. Form 990-EZ filers are not required to complete this part. 1 Indicate whether the organization raised funds through any of the following activities. Check all that apply. a Mail solicitations e Solicitation of non-government grants b Internet and email solicitations f Solicitation of government grants c Phone solicitations g Special fundraising events d In-person solicitations 2 a Did the organization have a written or oral agreement with any individual (including officers, directors, trustees or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? Yes b If "Yes," list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization. (i) Name and address of individual or entity (fundraiser) (ii) Activity (iii) Did fundraiser have custody or control of contributions? Yes (v) Amount paid (iv) Gross receipts to (or retained by) fundraiser from activity listed in col. (i) No (vi) Amount paid to (or retained by) organization No Total •••••••••••••••••••••••••••••••••••••• 3 List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing. LHA Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. 132081 01-23-12 13491027 144064 BGA Schedule G (Form 990 or 990-EZ) 2011 31 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 2 Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 Schedule G (Form 990 or 990-EZ) 2011 Direct Expenses Revenue Part II of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000. (a) Event #1 (b) Event #2 (c) Other events (d) Total events ANNUAL SPRING (add col. (a) through LUCHEON AWARDS 2 col. (c)) (event type) (event type) (total number) 1 Gross receipts ~~~~~~~~~~~~~~ 355,060. 60,878. 23,875. 439,813. 2 Less: Charitable contributions ~~~~~~ 352,910. 56,848. 20,210. 429,968. 3 Gross income (line 1 minus line 2) •••• 2,150. 4,030. 3,665. 9,845. 4 Cash prizes ~~~~~~~~~~~~~~~ 5 Noncash prizes ~~~~~~~~~~~~~ 6 Rent/facility costs ~~~~~~~~~~~~ 23,410. 11,464. 876. 35,750. 7 Food and beverages 49,322. 8 9 10 11 Part ~~~~~~~~~~ 49,322. Entertainment ~~~~~~~~~~~~~~ 57,554. 13,974. 4,617. Other direct expenses ~~~~~~~~~~ Direct expense summary. Add lines 4 through 9 in column (d) ~~~~~~~~~~~~~~~~~~~~~~~~ ( Net income summary. Combine line 3, column (d), and line 10••••••••••••••••••••••••• III Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than 76,145. 161,217.) -151,372. Direct Expenses Revenue $15,000 on Form 990-EZ, line 6a. (b) Pull tabs/instant bingo/progressive bingo (a) Bingo (d) Total gaming (add col. (a) through col. (c)) (c) Other gaming 1 Gross revenue •••••••••••••• 2 Cash prizes ~~~~~~~~~~~~~~~ 3 Noncash prizes ~~~~~~~~~~~~~ 4 Rent/facility costs ~~~~~~~~~~~~ 5 Other direct expenses •••••••••• 6 Volunteer labor ~~~~~~~~~~~~~ 7 Direct expense summary. Add lines 2 through 5 in column (d) ~~~~~~~~~~~~~~~~~~~~~~~~ 8 Net gaming income summary. Combine line 1, column d, and line 7 Yes No % Yes No % Yes No % 10 a Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? ~~~~~~~~~ b If "Yes," explain: 13491027 144064 BGA ) ••••••••••••••••••••• 9 Enter the state(s) in which the organization operates gaming activities: a Is the organization licensed to operate gaming activities in each of these states? ~~~~~~~~~~~~~~~~~~~~ b If "No," explain: 132082 01-23-12 ( Yes No Yes No Schedule G (Form 990 or 990-EZ) 2011 32 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 36-0802950 Page 3 Schedule G (Form 990 or 990-EZ) 2011 BETTER GOVERNMENT ASSOCIATION, INC. 11 Does the organization operate gaming activities with nonmembers?~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes No 12 Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity formed to administer charitable gaming? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Yes No 13 Indicate the percentage of gaming activity operated in: a The organization's facility ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13a % b An outside facility ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 13b % 14 Enter the name and address of the person who prepares the organization's gaming/special events books and records: Name Address 15 a Does the organization have a contract with a third party from whom the organization receives gaming revenue? ~~~~~~ b If "Yes," enter the amount of gaming revenue received by the organization $ of gaming revenue retained by the third party $ . c If "Yes," enter name and address of the third party: Yes No and the amount Name Address 16 Gaming manager information: Name Gaming manager compensation $ Description of services provided Director/officer Employee Independent contractor 17 Mandatory distributions: a Is the organization required under state law to make charitable distributions from the gaming proceeds to Yes No retain the state gaming license? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b Enter the amount of distributions required under state law to be distributed to other exempt organizations or spent in the organization's own exempt activities during the tax year $ Part IV Supplemental Information. Complete this part to provide the explanations required by Part I, line 2b, columns (iii) and (v), and Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also complete this part to provide any additional information (see instructions). 132083 01-23-12 13491027 144064 BGA Schedule G (Form 990 or 990-EZ) 2011 33 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 SCHEDULE J (Form 990) Department of the Treasury Internal Revenue Service Name of the organization Part I Compensation Information For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees Complete if the organization answered "Yes" to Form 990, Part IV, line 23. Attach to Form 990. See separate instructions. BETTER GOVERNMENT ASSOCIATION, INC. Questions Regarding Compensation OMB No. 1545-0047 2011 Open to Public Inspection Employer identification number 36-0802950 Yes No 1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Form 990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items. First-class or charter travel Housing allowance or residence for personal use Travel for companions Payments for business use of personal residence X Health or social club dues or initiation fees Tax indemnification and gross-up payments Discretionary spending account Personal services (e.g., maid, chauffeur, chef) b If any of the boxes on line 1a are checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If "No," complete Part III to explain ~~~~~~~~~~~ 2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? ~~~~~~~~~~~~~~~~~~~~~ 3 1b X 2 X Indicate which, if any, of the following the filing organization used to establish the compensation of the organization's CEO/Executive Director. Check all that apply. Do not check any boxes for methods used by a related organization to establish compensation of the CEO/Executive Director. Explain in Part III. X Written employment contract Compensation committee X Compensation survey or study Independent compensation consultant X Approval by the board or compensation committee Form 990 of other organizations During the year, did any person listed in Form 990, Part VII, Section A, line 1a, with respect to the filing organization or a related organization: a Receive a severance payment or change-of-control payment? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ b Participate in, or receive payment from, a supplemental nonqualified retirement plan? ~~~~~~~~~~~~~~~~~~~~ c Participate in, or receive payment from, an equity-based compensation arrangement?~~~~~~~~~~~~~~~~~~~~ If "Yes" to any of lines 4a-c, list the persons and provide the applicable amounts for each item in Part III. 4 4a 4b 4c X X X Only section 501(c)(3) and 501(c)(4) organizations must complete lines 5-9. For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of: X 5a a The organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ X 5b b Any related organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes" to line 5a or 5b, describe in Part III. 6 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of: X 6a a The organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ X 6b b Any related organization? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes" to line 6a or 6b, describe in Part III. 7 For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed payments X 7 not described in lines 5 and 6? If "Yes," describe in Part III ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 8 Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the X 8 initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe in Part III ~~~~~~~~~~~ 9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in 9 Regulations section 53.4958-6(c)? ••••••••••••••••••••••••••••••••••••••••••••• LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule J (Form 990) 2011 5 132111 01-23-12 13491027 144064 BGA 34 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Schedule J (Form 990) 2011 Part II Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. Page 2 For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII. Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual. (B) Breakdown of W-2 and/or 1099-MISC compensation (i) Base compensation (A) Name 1 ANDREW SHAW 2 RITA MCLENNON 3 4 5 6 7 8 9 10 11 12 13 14 15 16 132112 01-23-12 (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) 174,175. 0. 140,475. 0. (ii) Bonus & incentive compensation (iii) Other reportable compensation 0. 0. 0. 0. 0. 0. 0. 0. 35 (C) Retirement and other deferred compensation 3,600. 0. 2,800. 0. (D) Nontaxable benefits 15,588. 0. 7,651. 0. (E) Total of columns (B)(i)-(D) 193,363. 0. 150,926. 0. (F) Compensation reported as deferred in prior Form 990 0. 0. 0. 0. Schedule J (Form 990) 2011 BETTER Schedule J (Form 990) 2011 Part III Supplemental Information GOVERNMENT ASSOCIATION, INC. 36-0802950 Page 3 Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II. Also complete this part for any additional information. PART I, LINE 1A: THE SOCIAL CLUB DUES ARE A BENEFIT FOR THE EXECUTIVE DIRECTOR AND IS OUTLINED IN HIS CONTRACT. THE ORGANIZATION IS DIRECTLY BILLED BY THE CLUB AND PAYS ALL BILLS DIRECTLY TO THE CLUB. EACH BILL INCLUDES AN ITEMIZED INVOICE THAT THE ORGANIZATION'S ACCOUNTANT MONITORS. Schedule J (Form 990) 2011 132113 01-23-12 36 SCHEDULE O (Form 990 or 990-EZ) Supplemental Information to Form 990 or 990-EZ Complete to provide information for responses to specific questions on Form 990 or 990-EZ or to provide any additional information. Attach to Form 990 or 990-EZ. Department of the Treasury Internal Revenue Service Name of the organization BETTER GOVERNMENT ASSOCIATION, INC. OMB No. 1545-0047 2011 Open to Public Inspection Employer identification number 36-0802950 FORM 990, PART III, LINE 4A, PROGRAM SERVICE ACCOMPLISHMENTS: COST OF TOWNSHIPS. IN ADDITION THE BGA CONTINUES TO PRODUCE DAY-TO-DAY, HARD-HITTING INVESTIGATION. FORM 990, PART III, LINE 4D, OTHER PROGRAM SERVICES: CITIZEN WATCHDOG TRAINING PROGRAM - THE BGA'S CITIZEN WATCHDOG TRAINING IS A FREE PROGRAM THAT EMPOWERS CITIZENS TO EXAMINE GOVERNMENT AND DEMAND THE CHANGES THEY WANT TO SEE MADE. IN A SERIES OF FREE TRAINING SESSIONS HELD THROUGH THE STATE, CITIZENS LEARN HOW TO KEEP AN EYE ON GOVERNMENT FROM VETERAN JOURNALISTS AND LEGAL PROFESSIONALS. PRO BONO SPEAKERS TEACH CITIZENS HOW TO UNDERSTAND GOVERNMENT AND HOW TO USE THE FREEDOM OF INFORMATION ACT AND OPEN MEETINGS ACT. IN 2011 THE BGA TRAINED OVER 700 PEOPLE THROUGH THIS PROGRAM. IN ADDITION, THE BGA CONTINUED TO EXPAND ITS CITIZEN WATCHDOGS OF EDUCATION PROGRAM, A TRAINING PROGRAM DESIGNED TO EMPOWER PARENTS TO KEEP AN EYE ON THEIR LOCAL CHICAGO PUBLIC SCHOOLS. FINALLY, THE BGA HELD FREEDOM OF INFORMATION ACT CLINICS. EXPENSES $ 83,057. INCLUDING GRANTS OF $ 0. REVENUE $ 0. FORM 990, PART VI, SECTION B, LINE 11: THE DIRECTOR OF ADMINISTRATION AND PRESIDENT AND CE0 WILL ENSURE THAT ALL MEMBERS OF THE BOARD OF DIRECTORS AND LIFE TRUSTEES HAVE THE OPPORTUNITY TO REVIEW THE FORM 990 BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C: THE ORGANIZATION'S BOARD HAS A STANDING COMMITTEE, THE TRUSTEESHIP COMMITTEE, THAT KEEPS AN EVALUATION LHA For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ. 132211 01-23-12 13491027 144064 BGA Schedule O (Form 990 or 990-EZ) (2011) 37 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Schedule O (Form 990 or 990-EZ) (2011) Name of the organization BETTER GOVERNMENT ASSOCIATION, INC. Page 2 Employer identification number 36-0802950 CHART ON EACH BOARD MEMBER AND OVERSEES ACTIVITIES THAT MIGHT RESULT IN POSSIBLE CONFLICTS. FORM 990, PART VI, SECTION B, LINE 15: THE COMPENSATION PROCESS INCLUDED THE EXECUTIVE COMMITTEE APPOINTING A SUB-COMMITTEE TO WORK WITH LEGAL COUNCIL AND TO MAKE A RECOMMENDATION TO THE FULL BOARD OF DIRECTORS. THE SUB-COMMITTEE DID A FULL EVALUATION OF THE EXECUTIVE DIRECTOR'S PERFORMANCE IN THE PROCESS OF RENEGOTIATING THE CONTRACT. THE SUB-COMMITTEE ALSO WORKED WITH A NONPROFIT MANAGEMENT CONSULTANT WHO USED EXISTING STUDIES THAT COMPARED NONPROFIT SALARIES FOR PRESIDENT TYPE POSITIONS. THE CONTRACT WAS DISCUSSED AND APPROVED IN EXECUTIVE SESSION OF THE FULL BOARD OF DIRECTORS. THE CONTRACT WAS APPROVED IN NOVEMBER 2010. THE COMPENSATION PROCESS INCLUDED THE EXECUTIVE COMMITTEE APPOINTING A SUB-COMMITTEE TO WORK WITH LEGAL COUNCIL AND TO MAKE A RECOMMENDATION TO THE FULL BOARD OF DIRECTORS. THE SUB-COMMITTEE ALSO WORKED WITH A NONPROFIT MANAGEMENT CONSULTANT WHO USED EXISTING STUDIES THAT COMPARED NONPROFIT SALARIES FOR A CHIEF OPERATING OFFICER POSITION. THE COO'S CONTRACT WAS DISCUSSED AND APPROVED IN EXECUTIVE SESSION OF THE FULL BOARD OF DIRECTORS. THE CONTRACT WAS APPROVED IN 2009. FORM 990, PART VI, SECTION C, LINE 19: THE ORGANIZATION MAKES ITS BYLAWS AVAILABLE ON ITS WEBSITE AND THE CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. 132212 01-23-12 13491027 144064 BGA Schedule O (Form 990 or 990-EZ) (2011) 38 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 TAX RETURN FILING INSTRUCTIONS FORM 990-T FOR THE YEAR ENDING DECEMBER 31, 2011 ~~~~~~~~~~~~~~~~~ Prepared for Prepared by BETTER GOVERNMENT ASSOCIATION, INC. 223 W. JACKSON BLVD. NO. 900 CHICAGO, IL 60606 BDO USA, LLP 1665 ELK BOULEVARD DES PLAINES, IL 60016-4776 Amount due or refund NO AMOUNT IS DUE. Make check payable to NO AMOUNT IS DUE. Mail tax return and check (if applicable) to DEPARTMENT OF THE TREASURY INTERNAL REVENUE SERVICE CENTER OGDEN, UT 84201-0027 Return must be mailed on or before AS SOON AS POSSIBLE. Special Instructions 100941 05-01-11 THE RETURN SHOULD BE SIGNED AND DATED. Form Department of the Treasury Internal Revenue Service X A (and proxy tax under section 6033(e)) For calendar year 2011 or other tax year beginning Check box if address changed B Exempt under section X 501(c )( 3 ) 220(e) 408(e) 408A 529(a) OMB No. 1545-0687 2011 Exempt Organization Business Income Tax Return 990-T 530(a) Name of organization ( Print or Type Open to Public Inspection for 501(c)(3) Organizations Only D Employer identification number (Employees' trust, see instructions.) , and ending Check box if name changed and see instructions.) BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 E Unrelated business activity codes Number, street, and room or suite no. If a P.O. box, see instructions. (See instructions.) 223 W. JACKSON BLVD., NO. 900 City or town, state, and ZIP code CHICAGO, IL 60606 C Book value of all assets F Group exemption number (See instructions.) at end of year X 501(c) corporation G Check organization type 1,145,419. 501(c) trust 401(a) trust Other trust H Describe the organization's primary unrelated business activity. NONE. X No I During the tax year, was the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? ~~~~~~ Yes If "Yes," enter the name and identifying number of the parent corporation. J The books are in care of EMMETT MURPHY Telephone number 312-427-8330 (A) Income (B) Expenses (C) Net Part I Unrelated Trade or Business Income 1a b 2 3 4a b c 5 6 7 8 9 Gross receipts or sales Less returns and allowances c Balance ~~~ 1c Cost of goods sold (Schedule A, line 7) ~~~~~~~~~~~~~~~~~ 2 Gross profit. Subtract line 2 from line 1c ~~~~~~~~~~~~~~~~ 3 Capital gain net income (attach Schedule D) ~~~~~~~~~~~~~~~ 4a Net gain (loss) (Form 4797, Part II, line 17) (attach Form 4797) ~~~~~~ 4b Capital loss deduction for trusts ~~~~~~~~~~~~~~~~~~~~ 4c Income (loss) from partnerships and S corporations (attach statement) ~~~ 5 Rent income (Schedule C) ~~~~~~~~~~~~~~~~~~~~~~ 6 Unrelated debt-financed income (Schedule E) ~~~~~~~~~~~~~~ 7 Interest, annuities, royalties, and rents from controlled organizations (Sch. F)~ 8 Investment income of a section 501(c)(7), (9), or (17) organization (Schedule G) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 9 10 Exploited exempt activity income (Schedule I) ~~~~~~~~~~~~~~ 10 11 Advertising income (Schedule J) ~~~~~~~~~~~~~~~~~~~~ 11 12 Other income (See instructions; attach schedule.) ~~~~~~~~~~~~ 12 0. 13 Total. Combine lines 3 through 12••••••••••••••••••• 13 Part II Deductions Not Taken Elsewhere (See instructions for limitations on deductions.) (Except for contributions, deductions must be directly connected with the unrelated business income.) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Compensation of officers, directors, and trustees (Schedule K) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Salaries and wages ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Repairs and maintenance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Bad debts ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Interest (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Taxes and licenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Charitable contributions (See instructions for limitation rules.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Depreciation (attach Form 4562) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 21 Less depreciation claimed on Schedule A and elsewhere on return ~~~~~~~~~~~~~ 22a Depletion ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Contributions to deferred compensation plans ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Employee benefit programs ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excess exempt expenses (Schedule I) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excess readership costs (Schedule J) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other deductions (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total deductions. Add lines 14 through 28 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income before net operating loss deduction. Subtract line 29 from line 13 ~~~~~~~~~~~~ Net operating loss deduction (limited to the amount on line 30) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income before specific deduction. Subtract line 31 from line 30 ~~~~~~~~~~~~~~~~~ Specific deduction (Generally $1,000, but see instructions for exceptions.) ~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income. Subtract line 33 from line 32. If line 33 is greater than line 32, enter the smaller of zero or line 32 ••••••••••••••••••••••••••••••••••••••••••••••••• 123701 02-24-12 LHA 22b 23 24 25 26 27 28 29 30 31 32 33 0. 1,000. 34 0. 0. 0. Form 990-T (2011) 41 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 For Paperwork Reduction Act Notice, see instructions. 13491027 144064 BGA 14 15 16 17 18 19 20 BETTER GOVERNMENT ASSOCIATION, INC. Tax Computation 36-0802950 Form 990-T (2011) Part III Organizations Taxable as Corporations. See instructions for tax computation. Controlled group members (sections 1561 and 1563) check here See instructions and: a Enter your share of the $50,000, $25,000, and $9,925,000 taxable income brackets (in that order): (1) $ (2) $ (3) $ b Enter organization's share of: (1) Additional 5% tax (not more than $11,750) $ (2) Additional 3% tax (not more than $100,000) ~~~~~~~~~~~~~ $ c Income tax on the amount on line 34 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 36 Trusts Taxable at Trust Rates. See instructions for tax computation. Income tax on the amount on line 34 from: Tax rate schedule or Schedule D (Form 1041) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 37 Proxy tax. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 38 Alternative minimum tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 39 Total. Add lines 37 and 38 to line 35c or 36, whichever applies ••••••••••••••••••••••••••• Page 2 35 Part IV Part 1 0. 36 37 38 39 0. Tax and Payments 40 a b c d e 41 42 43 44 a b c d e f g 45 46 47 48 49 35c Foreign tax credit (corporations attach Form 1118; trusts attach Form 1116) ~~~~~~~~ 40a Other credits (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 40b General business credit. Attach Form 3800 ~~~~~~~~~~~~~~~~~~~~~~ 40c Credit for prior year minimum tax (attach Form 8801 or 8827) ~~~~~~~~~~~~~~ 40d Total credits. Add lines 40a through 40d ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subtract line 40e from line 39 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other taxes. Check if from: Form 4255 Form 8611 Form 8697 Form 8866 Other (attach schedule) Total tax. Add lines 41 and 42 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Payments: A 2010 overpayment credited to 2011 ~~~~~~~~~~~~~~~~~~~ 44a 2011 estimated tax payments ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 44b Tax deposited with Form 8868 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 44c Foreign organizations: Tax paid or withheld at source (see instructions) ~~~~~~~~~~ 44d Backup withholding (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~~ 44e Credit for small employer health insurance premiums (Attach Form 8941) ~~~~~~~~ 44f Other credits and payments: Form 2439 Form 4136 Other Total 44g Total payments. Add lines 44a through 44g ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Estimated tax penalty (see instructions). Check if Form 2220 is attached ~~~~~~~~~~~~~~~~~~~ Tax due. If line 45 is less than the total of lines 43 and 46, enter amount owed ~~~~~~~~~~~~~~~~~~~ Overpayment. If line 45 is larger than the total of lines 43 and 46, enter amount overpaid ~~~~~~~~~~~~~~ Enter the amount of line 48 you want: Credited to 2012 estimated tax Refunded V Statements Regarding Certain Activities and Other Information (see instructions) 40e 41 42 43 0. 0. 45 46 47 48 49 0. 0. At any time during the 2011 calendar year, did the organization have an interest in or a signature or other authority over a financial account (bank, securities, or other) in a foreign country? If YES, the organization may have to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. If YES, enter the name of the foreign country here 2 During the tax year, did the organization receive a distribution from, or was it the grantor of, or transferor to, a foreign trust? If YES, see instructions for other forms the organization may have to file. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3 Enter the amount of tax-exempt interest received or accrued during the tax year $ Schedule A - Cost of Goods Sold. Enter method of inventory valuation N/A 1 Inventory at beginning of year ~~~ 1 6 Inventory at end of year ~~~~~~~~~~~~ 6 2 Purchases ~~~~~~~~~~~ 2 7 Cost of goods sold. Subtract line 6 3 Cost of labor~~~~~~~~~~~ 3 from line 5. Enter here and in Part I, line 2 ~~~~ 7 4 a Additional section 263A costs ~~~ 4a 8 Do the rules of section 263A (with respect to b Other costs (attach schedule) ~~~ 4b property produced or acquired for resale) apply to 5 Total. Add lines 1 through 4b ••• 5 the organization? ••••••••••••••••••••••• Sign Here Yes No X X Yes No 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. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. = Signature of officer Print/Type preparer's name Date Firm's address 9 DES 123711 02-24-12 13491027 144064 BGA Title Preparer's signature Paid DIRK AHLBECK Preparer BDO USA, LLP Firm's name Use Only 1665 ELK BOULEVARD 9 = EXECUTIVE DIRECTOR PLAINES, IL 60016-4776 May the IRS discuss this return with the preparer shown below (see instructions)? Date 10/27/15 Check if self- employed Firm's EIN Phone no. 9 X Yes No PTIN P00237637 13-5381590 847-824-4000 Form 990-T (2011) 42 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 Page Schedule C - Rent Income (From Real Property and Personal Property Leased With Real Property)(see instructions) Form 990-T (2011) 1. 3 Description of property (1) (2) (3) (4) 2. Rent received or accrued (a) From personal property (if the percentage of (1) (2) (3) (4) columns 2(a) and 2(b) (attach schedule) of rent for personal property exceeds 50% or if the rent is based on profit or income) 0. Total 3(a) Deductions directly connected with the income in (b) From real and personal property (if the percentage rent for personal property is more than 10% but not more than 50%) 0. Total (b) Total deductions. (c) Total income. Add totals of columns 2(a) and 2(b). Enter here and on page 1, Part I, line 6, column (A) ••••••• 0. Schedule E - Unrelated Debt-Financed Income (see instructions) 3. 2. 1. Gross income from or allocable to debtfinanced property Description of debt-financed property Enter here and on page 1, Part I, line 6, column (B) • 0. Deductions directly connected with or allocable to debt-financed property (a) Straight line depreciation (b) Other deductions (attach schedule) (attach schedule) (1) (2) (3) (4) 4. Amount of average acquisition debt on or allocable to debt-financed property (attach schedule) 5. 6. Average adjusted basis of or allocable to debt-financed property (attach schedule) 7. Gross income reportable (column 2 x column 6) Column 4 divided by column 5 8. Allocable deductions (column 6 x total of columns 3(a) and 3(b)) % % % % (1) (2) (3) (4) Enter here and on page 1, Part I, line 7, column (A). Enter here and on page 1, Part I, line 7, column (B). 0. Totals ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total dividends-received deductions included in column 8 ••••••••••••••••••••••••••••••••• Schedule F - Interest, Annuities, Royalties, and Rents From Controlled Organizations (see instructions) Exempt Controlled Organizations 1. Name of controlled organization 2. Employer identification number 3. Net unrelated income (loss) (see instructions) 4. 5. Part of column 4 that is included in the controlling organization's gross income 10. 11. Total of specified payments made 0. 0. 6. Deductions directly connected with income in column 5 (1) (2) (3) (4) Nonexempt Controlled Organizations 7. Taxable Income 8. Net unrelated income (loss) (see instructions) 9. Total of specified payments Part of column 9 that is included in the controlling organization's gross income made Deductions directly connected with income in column 10 (1) (2) (3) (4) Totals •••••••••••••••••••••••••••••••••••••••• 123721 02-24-12 13491027 144064 BGA J Add columns 5 and 10. Add columns 6 and 11. Enter here and on page 1, Part I, line 8, column (A). Enter here and on page 1, Part I, line 8, column (B). 0. 0. Form 990-T (2011) 43 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 BETTER GOVERNMENT ASSOCIATION, INC. Schedule G - Investment Income of a Section 501(c)(7), (9), or (17) Organization Form 990-T (2011) 36-0802950 Page 4 (see instructions) 1. 2. Description of income Amount of income 3. Deductions directly connected (attach schedule) 4. Set-asides (attach schedule) 5. Total deductions and set-asides (col. 3 plus col. 4) (1) (2) (3) (4) Enter here and on page 1, Part I, line 9, column (A). Enter here and on page 1, Part I, line 9, column (B). 0. 9 Schedule I - Exploited Exempt Activity Income, Other Than Advertising Income 0. Totals •••••••••••••••••••••••••••••• (see instructions) 1. Description of exploited activity 2. Gross unrelated business income from trade or business 3. Expenses directly connected with production of unrelated business income Enter here and on page 1, Part I, line 10, col. (A). Enter here and on page 1, Part I, line 10, col. (B). 4. Net income (loss) from unrelated trade or business (column 2 minus column 3). If a gain, compute cols. 5 through 7. 5. Gross income from activity that is not unrelated business income 6. Expenses attributable to column 5 7. Excess exempt expenses (column 6 minus column 5, but not more than column 4). (1) (2) (3) (4) 9 Schedule J - Advertising Income Totals •••••••••• Part I 0. 0. (see instructions) Income From Periodicals Reported on a Consolidated Basis 2. Gross advertising income 1. Name of periodical (1) (2) (3) (4) 0. Enter here and on page 1, Part II, line 26. 3. Direct advertising costs 4. Advertising gain or (loss) (col. 2 minus col. 3). If a gain, compute cols. 5 through 7. 0. 0. 9 Income From Periodicals Reported on a Separate Basis 5. Circulation 6. Readership income costs 7. Excess readership costs (column 6 minus column 5, but not more than column 4). 0. Totals (carry to Part II, line (5)) •• Part II (For each periodical listed in Part II, fill in columns 2 through 7 on a line-by-line basis.) 2. Gross advertising income 1. Name of periodical (1) (2) (3) (4) (5) Totals from Part I 3. Direct advertising costs 0. Enter here and on page 1, Part I, line 11, col. (A). 4. Advertising gain or (loss) (col. 2 minus col. 3). If a gain, compute cols. 5 through 7. 5. Circulation 6. Readership income costs 7. Excess readership costs (column 6 minus column 5, but not more than column 4). 0. 0. Enter here and on page 1, Part I, line 11, col. (B). 0. 0. 9 Schedule K - Compensation of Officers, Directors, and Trustees Enter here and on page 1, Part II, line 27. 0. Totals, Part II (lines 1-5)••••• 1. Name 2. Title (see instructions) 3. Percent of (1) (2) (3) (4) Total. Enter here and on page 1, Part II, line 14 ••••••••••••••••••••••••••••••••••• 123731 02-24-12 13491027 144064 BGA 4. Compensation attributable time devoted to business to unrelated business % % % % 9 0. Form 990-T (2011) 44 2011.05090 BETTER GOVERNMENT ASSOCIATI BGA____1 Caution: Forms printed from within Adobe Acrobat products may not meet IRS or state taxing agency specifications. When using Acrobat 5.x products, uncheck the "Shrink oversized pages to paper size" and uncheck the "Expand small pages to paper size" options, in the Adobe "Print" dialog. When using Acrobat 6.x and later products versions, select "None" in the "Page Scaling" selection box in the Adobe "Print" dialog. STATE COPY TAX RETURN FILING INSTRUCTIONS ILLINOIS FORM AG990-IL FOR THE YEAR ENDING DECEMBER 31, 2011 ~~~~~~~~~~~~~~~~~ Prepared for Prepared by BETTER GOVERNMENT ASSOCIATION, INC. 223 W. JACKSON BLVD. NO. 900 CHICAGO, IL 60606 BDO USA, LLP 1665 ELK BOULEVARD DES PLAINES, IL 60016-4776 Amount due or refund BALANCE DUE OF $15 Make check payable to ILLINOIS CHARITY BUREAU FUND Mail tax return and check (if applicable) to OFFICE OF THE ATTORNEY GENERAL CHARITABLE TRUST BUREAU 100 WEST RANDOLPH ST., 11TH FLOOR CHICAGO, IL 60601-3175 Return must be mailed on or before PLEASE MAIL AS SOON AS POSSIBLE. Special Instructions FORM AG990-IL SHOULD BE SIGNED AND DATED BY THE REQUIRED INDIVIDUAL(S). INCLUDE THE ORGANIZATION'S ILLINOIS CHARITABLE ORGANIZATION NUMBER AND "2011 FORM AG990-IL" ON THE REMITTANCE. 100941 05-01-11 Form AG990-IL ILLINOIS CHARITABLE ORGANIZATION ANNUAL REPORT Revised 3/05 Attorney General LISA MADIGAN State of Illinois Charitable Trust Bureau, 100 West Randolph CO # 01-005523 11th Floor, Chicago, Illinois 60601 Check all items attached: X Copy of IRS Return Report for the Fiscal Period: Make Checks X Audited Financial Statements Beginning 01/01/2011 Payable to Copy of Form IFC the Illinois X $15.00 Annual Report Filing Fee Charity & Ending 12/31/2011 Bureau Fund $100.00 Late Report Filing Fee For Office Use Only PMT # AMT INIT Federal ID # 36-0802950 Are contributions to the organization tax deductible? LEGAL NAME MAIL ADDRESS CITY, STATE ZIP CODE I. MO X Yes DAY YR MO No DAY YR 06/05/1923 Date Organization was created: Year-end amounts BETTER GOVERNMENT ASSOCIATION, INC. A) $ B) $ C) $ 1,145,419. 60,187. 1,085,232. 99.210% 0.772% 0.018% D) $ E) $ F) $ 2,274,057. 17,690. 421. 100 % G) $ 2,292,168. 60.895% H) $ 1,123,960. % I) $ 60.895% J) $ % K) $ L) TOTAL CHARITABLE PROGRAM SERVICE EXPENDITURE (ADD J & K) 60.895% L) $ 1,123,960. M) MANAGEMENT AND GENERAL EXPENSE 18.248% M) $ 336,807. N) FUNDRAISING EXPENSE 20.857% N) $ 384,960. 100 % O) $ 1,845,727. 100 % P) $ 0. Q) TOTAL FUNDRAISERS FEES AND EXPENSES % Q) $ R) NET RECEIVED BY THE CHARITY (P MINUS Q=R) % R) $ A) ASSETS B) LIABILITIES C) NET ASSETS 223 W. JACKSON BLVD., NO. 900 CHICAGO, IL 60606 SUMMARY OF ALL REVENUE ITEMS DURING THE YEAR: PERCENTAGE D) PUBLIC SUPPORT, CONTRIBUTIONS & PROGRAM SERVICE REV. (GROSS AMTS.) E) GOVERNMENT GRANTS & MEMBERSHIP DUES F) OTHER REVENUES G) TOTAL REVENUE, INCOME AND CONTRIBUTIONS RECEIVED (ADD D, E, & F) II. SUMMARY OF ALL EXPENDITURES DURING THE YEAR: H) OPERATING CHARITABLE PROGRAM EXPENSE I) EDUCATION PROGRAM SERVICE EXPENSE J) TOTAL CHARITABLE PROGRAM SERVICE EXPENSE (ADD H & I) J1) JOINT COSTS ALLOCATED TO PROGRAM SERVICES (INCLUDED IN J): AMOUNT 1,123,960. $ K) GRANTS TO OTHER CHARITABLE ORGANIZATIONS O) TOTAL EXPENDITURES THIS PERIOD (ADD L, M, & N) III. SUMMARY OF ALL PAID FUNDRAISER AND CONSULTANT ACTIVITIES: (Attach Attorney General Report of Individual Fundraising Campaign- Form IFC. One for each PFR.) PROFESSIONAL FUNDRAISERS: P) TOTAL AMOUNT RAISED BY PAID PROFESSIONAL FUNDRAISERS PROFESSIONAL FUNDRAISING CONSULTANTS: S) TOTAL AMOUNT PAID TO PROFESSIONAL FUNDRAISING CONSULTANTS IV. COMPENSATION TO THE (3) HIGHEST PAID PERSONS DURING THE YEAR: T) NAME, TITLE:ANDREW SHAW, EXECUTIVE DIRECTOR U) NAME, TITLE:RITA MCLENNON, CHIEF OPERATING OFFICER V) NAME, TITLE:ROBERT REED, DIRECTOR OF INVESTIGATIONS 198091 05-01-11 V. CHARITABLE PROGRAM DESCRIPTION: W) DESCRIPTION: X) DESCRIPTION: Y) DESCRIPTION: CHARITABLE PROGRAM (3 HIGHEST BY $ EXPENDED) CODE CATEGORIES INVESTIGATIVE PROGRAMS S) $ 0. T) $ U) $ V) $ 174,175. 140,475. 111,060. List on back side of instructions CODE W) # X) # Y) # 300 IF THE ANSWER TO ANY OF THE FOLLOWING IS YES, ATTACH A DETAILED EXPLANATION: YES NO 1. WAS THE ORGANIZATION THE SUBJECT OF ANY COURT ACTION, FINE, PENALTY OR JUDGMENT? ~~~~~~~~~~~~~~~~ 1. X 2. HAS THE ORGANIZATION OR A CURRENT DIRECTOR, TRUSTEE, OFFICER OR EMPLOYEE THEREOF, EVER BEEN CONVICTED BY ANY COURT OF ANY MISDEMEANOR INVOLVING THE MISUSE OR MISAPPROPRIATION OF FUNDS OR ANY FELONY? ~~~~~~~~~~ 2. X DID THE ORGANIZATION MAKE A GRANT AWARD OR CONTRIBUTION TO ANY ORGANIZATION IN WHICH ANY OF ITS OFFICERS, DIRECTORS OR TRUSTEES OWNS AN INTEREST; OR WAS IT A PARTY TO ANY TRANSACTION IN WHICH ANY OF ITS OFFICERS, DIRECTORS OR TRUSTEES HAS A MATERIAL FINANCIAL INTEREST; OR DID ANY OFFICER, DIRECTOR OR TRUSTEE RECEIVE ANYTHING OF VALUE NOT REPORTED AS COMPENSATION? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3. X HAS THE ORGANIZATION INVESTED IN ANY CORPORATE STOCK IN WHICH ANY OFFICER, DIRECTOR OR TRUSTEE OWNS MORE THAN 10% OF THE OUTSTANDING SHARES? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 4. X IS ANY PROPERTY OF THE ORGANIZATION HELD IN THE NAME OF OR COMMINGLED WITH THE PROPERTY OF ANY OTHER PERSON OR ORGANIZATION? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 5. X DID THE ORGANIZATION USE THE SERVICES OF A PROFESSIONAL FUNDRAISER? (ATTACH FORM IFC)~~~~~~~~~~~~~~~ 6. X 7a. DID THE ORGANIZATION ALLOCATE THE COST OF ANY SOLICITATION, MAILING, ADVERTISEMENT OR LITERATURE COSTS BETWEEN PROGRAM SERVICE AND FUNDRAISING EXPENSES? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 7. X 3. 4. 5. 6. 7b. IF "YES", ENTER (i) THE AGGREGATE AMOUNT OF THESE JOINT COSTS $ ; (ii) THE AMOUNT ALLOCATED TO PROGRAM SERVICES $ ; (iii) THE AMOUNT ALLOCATED TO MANAGEMENT AND GENERAL $ ; AND (iv) THE AMOUNT ALLOCATED TO FUNDRAISING $ 8. DID THE ORGANIZATION EXPEND ITS RESTRICTED FUNDS FOR PURPOSES OTHER THAN RESTRICTED PURPOSES?~~~~~~~~~ 8. X 9. HAS THE ORGANIZATION EVER BEEN REFUSED REGISTRATION OR HAD ITS REGISTRATION OR TAX EXEMPTION SUSPENDED OR REVOKED BY ANY GOVERNMENTAL AGENCY? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 9. X 10. WAS THERE OR DO YOU HAVE ANY KNOWLEDGE OF ANY KICKBACK, BRIBE, OR ANY THEFT, DEFALCATION, MISAPPROPRIATION, COMMINGLING OR MISUSE OF ORGANIZATIONAL FUNDS? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 10. X 11. LIST THE NAME AND ADDRESS OF THE FINANCIAL INSTITUTIONS WHERE THE ORGANIZATION MAINTAINS ITS THREE LARGEST ACCOUNTS: MB FINANCIAL BANK, 2 S. LASALLE STREET, CHICAGO, IL 60603; WILLIAM BLAIR & COMPANY, LLC, 222 WEST ADAMS STREET, CHICAGO, IL 60606 12. NAME AND TELEPHONE NUMBER OF CONTACT PERSON: EMMETT MURPHY - 312-427-8330 ALL ATTACHMENTS MUST ACCOMPANY THIS REPORT - SEE INSTRUCTIONS UNDER PENALTY OF PERJURY, I (WE) THE UNDERSIGNED DECLARE AND CERTIFY THAT I (WE) HAVE EXAMINED THIS ANNUAL REPORT AND THE ATTACHED DOCUMENTS, INCLUDING ALL THE SCHEDULES AND STATEMENTS AND THE FACTS THEREIN STATED ARE TRUE AND COMPLETE AND FILED WITH THE ILLINOIS ATTORNEY GENERAL FOR THE PURPOSE OF HAVING THE PEOPLE OF THE STATE OF ILLINOIS RELY THEREUPON. I HEREBY FURTHER AUTHORIZE AND AGREE TO SUBMIT MYSELF AND THE REGISTRANT HEREBY TO THE JURISDICTION OF THE STATE OF ILLINOIS. BE SURE TO INCLUDE ALL FEES DUE: 1.) REPORTS ARE DUE WITHIN SIX MONTHS OF YOUR FISCAL YEAR END. 2.) FOR FEES DUE SEE INSTRUCTIONS. 3.) REPORTS THAT ARE LATE OR INCOMPLETE ARE SUBJECT TO A $100.00 PENALTY. 198101 05-01-11 ANDREW SHAW PRESIDENT or TRUSTEE (PRINT NAME) TREASURER or TRUSTEE (PRINT NAME) SIGNATURE DATE SIGNATURE DATE SIGNATURE DATE DIRK AHLBECK PREPARER (PRINT NAME) TAX RETURN FILING INSTRUCTIONS ILLINOIS FORM IL-990-T FOR THE YEAR ENDING DECEMBER 31, 2011 ~~~~~~~~~~~~~~~~~ Prepared for Prepared by BETTER GOVERNMENT ASSOCIATION, INC. 223 W. JACKSON BLVD. NO. 900 CHICAGO, IL 60606 BDO USA, LLP 1665 ELK BOULEVARD DES PLAINES, IL 60016-4776 Amount due or refund NO PAYMENT REQUIRED Make check payable to NOT APPLICABLE Mail tax return and check (if applicable) to ILLINOIS DEPARTMENT OF REVENUE P.O. BOX 19009 SPRINGFIELD, IL 62794-9009 Return must be mailed on or before PLEASE MAIL AS SOON AS POSSIBLE. Special Instructions THE RETURN SHOULD BE SIGNED AND DATED BY AN AUTHORIZED INDIVIDUAL. 100941 05-01-11 Illinois Department of Revenue 2011 FORM IL-990-T Exempt Organization Income and Replacement Tax Return Due on or before the 15th day of the 5th month (4th month for employee trusts) following the close of the tax year. If this return is not for calendar year 2011, write your fiscal tax year here. Tax year beginning 2011, ending month day month Write the amount you are paying. $ 20 day year Step 1: Identify your exempt organization D Write your federal employer identification no. (FEIN). 36-0802950 A Write your complete legal business name. If you have a name change check this box. Name: X E Check if you are taxed as a corporation. BETTER GOVERNMENT ASSOCIATION, INC. F Check if you are taxed as a trust. B If you have an address change or this is a first return, check this box and complete the following information. C/O: Mailing address: City: X G Provide the nature of your unrelated trade or business. NONE. 223 W. JACKSON BLVD., NO. 900 CHICAGO State: IL H Check the box if you attached Illinois Schedule 1299-D, Income Tax Credits. 60606 ZIP: I Write your North American Industry Classification System Code (NAICS), if applicable. See instructions. C Check the box if one of the following apply. first return final return (If final, write the date. ) mm dd yyyy Step 2: Figure your base income or loss 1 Unrelated business taxable income or loss from U.S. Form 990-T, Line 34. Attach a copy of Page 1 of your U.S. Form 990-T. 2 Illinois income and replacement tax deducted in arriving at Line 1. 3 Base income or loss. Add Lines 1 and 2. STOP 1 2 3 .00 .00 .00 4 5 .00 .00 If the amount on Line 3 is derived only from inside Illinois or if you are an Illinois resident trust, skip Step 3 and go to Step 4; otherwise complete Step 3. Step 3: Figure your income allocable to Illinois 4 5 6 7 8 9 10 11 Trust, estate, or non-unitary partnership business income or loss included in Line 3. Business income or loss. Subtract Line 4 from Line 3. Total sales everywhere. This amount cannot be negative. 6 Total sales inside Illinois. This amount cannot be negative. 7 Apportionment factor. Divide Line 7 by Line 6 (carry to six decimal places). 8. Business income or loss apportionable to Illinois. Multiply Line 5 by Line 8. Trust, estate, or non-unitary partnership business income or loss apportionable to Illinois. Net income or loss allocable to Illinois. Add Lines 9 and 10. N/A 9 10 11 .00 .00 .00 12 13 14 15 16 17 .00 .00 .00 .00 .00 .00 Step 4: Figure your net replacement tax 12 13 14 15 16 17 Base income or net loss from Line 3 or Line 11. Replacement tax. Corporations multiply Line 12 by 2.5% (.025); trusts multiply by 1.5% (.015). Recapture of investment credits. Attach Schedule 4255. Replacement tax before investment credits. Add Lines 13 and 14. Investment credits. Attach Form IL-477. Net replacement tax. Subtract Line 16 from Line 15. If the amount is negative, write "0." Form IL-990-T Page 1 (R-12/11) ID: 2BX 198021 12-27-11 NS DR 0 Step 5: Figure your net income tax (see instructions) 18 Net income or loss from Line 12. 19 Income Tax. Corporations: multiply Line 18 by 7% (.07). Trusts: multiply Line 18 by 5% (.05). 20 Recapture of investment credits. Attach Schedule 4255. 21 Income tax before credits. Add Lines 19 and 20. 22 Income tax credits. Attach Schedule 1299-D. 23 Net income tax. Subtract Line 22 from Line 21. If the amount is negative, write "0." 18 .00 19 20 21 22 23 .00 .00 .00 .00 .00 0 Step 6: Figure your refund or balance due 24 25 26 27 28 29 30 31 32 Net replacement tax from Line 17. Net income tax from Line 23. Total net income and replacement taxes. Add Lines 24 and 25. Payments a Credit from 2010 overpayment. 27a b Total estimated payments. 27b c Form IL-505-B (extension) payment. 27c d Gambling withholding. Attach Form(s) W-2G. 27d Total payments. Add Lines 27a through 27d. Overpayment. If Line 28 is greater than Line 26, subtract Line 26 from Line 28. Amount to be credited to 2012. Refund. Subtract Line 30 from Line 29. This is the amount to be refunded. Tax Due. If Line 26 is greater than Line 28, subtract Line 28 from Line 26. This is the amount you owe. J 24 25 26 .00 .00 .00 .00 .00 .00 .00 28 29 30 31 .00 .00 .00 .00 32 .00 ;< ) Make your check payable to "Illinois Department of Revenue" and attach to the first page of this form. Special Note Write the amount of your payment on the top of Page 1 in the space provided. § Step 7: Sign here Under penalties of perjury, I state that I have examined this return and, to the best of my knowledge, it is true, correct, and complete. Date Signature of authorized officer 10/27/15 Signature of preparer Date EXECUTIVE DIRECTOR 312-427-8330 Title Phone 13-5381590 Preparer's Social Security number or firm's FEIN BDO USA, LLP 1665 ELK BOULEVARD DES PLAIN 847-824-4000 Preparer firm's name (or yours, if self-employed) Address Phone J If a payment is not enclosed, mail this return to: Illinois Department of Revenue, P.O. Box 19009, Springfield, IL 62794-9009 J If a payment is enclosed, mail this return to: Illinois Department of Revenue, P.O. Box 19053, Springfield, IL 62794-9053 198022 12-27-11 This form is authorized as outlined by the Illinois Income Tax Act. Disclosure of this information is REQUIRED. Failure to provide information could result in a penalty. ID: 2BX IL-990-T Page 2 (R-12/11) ;< Form Department of the Treasury Internal Revenue Service X A (and proxy tax under section 6033(e)) For calendar year 2011 or other tax year beginning Check box if address changed B Exempt under section X 501(c )( 3 ) 220(e) 408(e) 408A 529(a) OMB No. 1545-0687 2011 Exempt Organization Business Income Tax Return 990-T 530(a) Name of organization ( Print or Type Open to Public Inspection for 501(c)(3) Organizations Only D Employer identification number (Employees' trust, see instructions.) , and ending Check box if name changed and see instructions.) BETTER GOVERNMENT ASSOCIATION, INC. 36-0802950 E Unrelated business activity codes Number, street, and room or suite no. If a P.O. box, see instructions. (See instructions.) 223 W. JACKSON BLVD., NO. 900 City or town, state, and ZIP code CHICAGO, IL 60606 C Book value of all assets F Group exemption number (See instructions.) at end of year X 501(c) corporation G Check organization type 1,145,419. 501(c) trust 401(a) trust Other trust H Describe the organization's primary unrelated business activity. NONE. X No I During the tax year, was the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? ~~~~~~ Yes If "Yes," enter the name and identifying number of the parent corporation. J The books are in care of EMMETT MURPHY Telephone number 312-427-8330 (A) Income (B) Expenses (C) Net Part I Unrelated Trade or Business Income 1a b 2 3 4a b c 5 6 7 8 9 Gross receipts or sales Less returns and allowances c Balance ~~~ 1c Cost of goods sold (Schedule A, line 7) ~~~~~~~~~~~~~~~~~ 2 Gross profit. Subtract line 2 from line 1c ~~~~~~~~~~~~~~~~ 3 Capital gain net income (attach Schedule D) ~~~~~~~~~~~~~~~ 4a Net gain (loss) (Form 4797, Part II, line 17) (attach Form 4797) ~~~~~~ 4b Capital loss deduction for trusts ~~~~~~~~~~~~~~~~~~~~ 4c Income (loss) from partnerships and S corporations (attach statement) ~~~ 5 Rent income (Schedule C) ~~~~~~~~~~~~~~~~~~~~~~ 6 Unrelated debt-financed income (Schedule E) ~~~~~~~~~~~~~~ 7 Interest, annuities, royalties, and rents from controlled organizations (Sch. F)~ 8 Investment income of a section 501(c)(7), (9), or (17) organization (Schedule G) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 9 10 Exploited exempt activity income (Schedule I) ~~~~~~~~~~~~~~ 10 11 Advertising income (Schedule J) ~~~~~~~~~~~~~~~~~~~~ 11 12 Other income (See instructions; attach schedule.) ~~~~~~~~~~~~ 12 0. 13 Total. Combine lines 3 through 12••••••••••••••••••• 13 Part II Deductions Not Taken Elsewhere (See instructions for limitations on deductions.) (Except for contributions, deductions must be directly connected with the unrelated business income.) 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Compensation of officers, directors, and trustees (Schedule K) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Salaries and wages ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Repairs and maintenance ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Bad debts ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Interest (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Taxes and licenses ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Charitable contributions (See instructions for limitation rules.) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Depreciation (attach Form 4562) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 21 Less depreciation claimed on Schedule A and elsewhere on return ~~~~~~~~~~~~~ 22a Depletion ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Contributions to deferred compensation plans ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Employee benefit programs ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excess exempt expenses (Schedule I) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Excess readership costs (Schedule J) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other deductions (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total deductions. Add lines 14 through 28 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income before net operating loss deduction. Subtract line 29 from line 13 ~~~~~~~~~~~~ Net operating loss deduction (limited to the amount on line 30) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income before specific deduction. Subtract line 31 from line 30 ~~~~~~~~~~~~~~~~~ Specific deduction (Generally $1,000, but see instructions for exceptions.) ~~~~~~~~~~~~~~~~~~~~~~~~ Unrelated business taxable income. Subtract line 33 from line 32. If line 33 is greater than line 32, enter the smaller of zero or line 32 ••••••••••••••••••••••••••••••••••••••••••••••••• 123701 02-24-12 LHA For Paperwork Reduction Act Notice, see instructions. 14 15 16 17 18 19 20 22b 23 24 25 26 27 28 29 30 31 32 33 0. 1,000. 34 0. 0. 0. Form 990-T (2011)