?rForm 990 Return of Organization Exempt From Income Tax 0MB N0-1545-0047 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) Department of the Treasury Open to Public Internal Revenue Service 5 The organization may have to use a copy of this return to satisfy state reporting requirements. inspection A For the 2003 calendar year, or tax year beginning 1 October 2003 and ending 30 September 2004 Check if applicable; Please Name of organization Employer identification number Address Change use Competitve Enterprise Institute 52-1351785 EIName change 2; Number and street (or PO. box if mail is not delivered to street address) Room/suite Telephone number . . type. . Emma! return See 1001 Connecticut Avenue, NW 1250 202/331-1010 . Speci?c - - . L?JFtnal return City or town State or country 4 method. EICash .Accrual DAmended return Washington DC 20036 Elmer (specify) DAppliCation pending 0 Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable I and are not applicable to section 527 or anizations. trusts must attach a completed Schedule A (Form 990 or 990-EZ). H(a) .5 this a group return for af?liates? Yes No Website: cheicrg H(b) If "Yes," enter number of af?liates I H(c) Are all af?liates included? I: Yes El No Organization type (check only one) b.501(c) 3) (insert no.) D4947(a)(1) or [3527 (if attach a list. See instructions.) Check here Elf the organization's gross receipts are normally not more than $25,000. The H(d) Is this a separate return ?led by an or anization organization need not ?le a return with the but if the organization received a Form 990 Package in the covered by a group ruling? Yes No maii, it should file a return without ?nancial data. Some states require a complete return. . I Group Exemption Number . Check Elf the organization is not required Gross receipts: Add lines 6b, 8b, 9b, and 10b to line 12 5 2,957,694 to attach 50?. 3 (Form 990. 990-52. 01' 9904*)- Revenue, Expenses, and Changes in Net Assets or Fund Balances (See page 18 of the instructions.) 1 Contributions, gifts, grants, and similar amounts received: a Direct public support . . . . . . . . . . . . . . . . . 1a 2,883,761 Indirect public support . . . . . . . . . . . . . . . . . 1b Government contributions (grantsTotal (add lines 13 through 1c) (cash 2,839,498 noncash 44,263) 1d 2,883,761 2 Program service revenue including government fees and contracts (from Part Vll, line 93) 2 1,488 3 Membership dues and assessments . . . 3 4 Interest on savings and temporary cash investments 4 0 5 Dividends and interest from securities . . . . . . . . . . . . . . . . . . . 5 20,091 6a Grossrents . . . . . . . . . . . . . . . . . . . .. 6a 11,067? Less: rental expenses . . . . . .. . . . . . . . . . 6b 16,716 Net rental income or (loss) (subtract line 6b from line 6a-5,649 a, 7 Other investment income (describe 7 0 8 a Gross amount from sales of assets other (A) Securities (B) Other thaninventory . . . . . . . . . . . . . . 21,267 8a 0 Less: cost or other basis and sales expenses . . - . . 21,441 8b - Gain or (loss) (attached schedule -174 8c 0 Net gain or (loss) (combine line So, columns (-174 9 Special events and activities (attach schedule). if any amount is from gaming, check here 7 3 Gross revenue (not including it - 0 of contributions reported on line 1aLess: direct expenses other than fundraising expenses . . . . 9b 0 Net income or (loss) from special events (subtract line 9b from line 9aGross sales of inventory, less returns and allowances . . . . 10a Less: cost of goods sold . . . . . . . . . . . . . . . . 10b Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10aOther revenue (from Part Vll, line 10320,020 12 Total revenue (add lines'1d8d, 90, 1002,919,537 13 Program services (from line 44, column . . . . . . . . . . . . . . . . . . . 13 2,355,657 14 Management and general (from line 44, column . . . . . . . . . . . . . . . . 14 . 142,317 5 15 Fundraising (from line 44, column . . . . . . . . . . . . . . . . . . . . . . 15 561,294 5' 16 Payments to af?liates (attach scheduleTotal expenses (add lines 16 and 44, column . . . . . . . . . . . . . . . . . 17 3,059,268 3 18 Excess or (de?cit) for the year (subtract line 17 from line 12439,731 19 Net assets or fund balances at beginning of year (from line 73, column . . . . . . . 19 1,820,533 3 20 Other changes in net assets or fund balances (attach explanation-9,994 I 21 Net assets orfund balances at end of year (combine lines 181,670,808 For Paperwork Reduction Act Notice, see the separate instructions. Form 990 (2003) (HTA) Form 990 2003) Competitve Enterprise Institute 52-1351785 Page 2 Statement of All organizations must complete column (A). Coiumns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations Functional Expenses and section 4947(a)(1) nonexempt charitable trusts but optional for others. (See page 22 of the instructions.) Do not include amounts re orted on line Pro ram Mana ement . . 6b, 8b, 9b, or16?3fPart I. (A) and general 22 Grants and allocations (attach schedule) (cash 8 0 noncash 0 0 23 Speci?c assistance to individuals (attach scheduleBene?ts paid to or for members (attach scheduleCompensation of of?cers, directors, etc397,979 269,536 18,312 110,131 26 Other salaries and wages . . . . . . . . . . . . . 26 1,212,305 1,056,974 45,072 110,259 27 Pension plan contributions . . . . . . . . . . . . . 27 0 28 Other employee bene?183,060 153,634 8,295 21,131 29 Payroll taxes . . . . . . . . . . . . . . . . . . . 29 118,966 97,614 5,220 16,132 30 Professional fundraising fees . . . . . . . . . . . . 30 31 Accounting rags6,101 4,578 748 775 32 Legal fees . . . . . . . . . . . . . . . . . 32 0 33 Supplies . . . . . . . . . . . . . . . . . . . . 33 23,375 15,300 1,870 6,205 34 Telephone . . . . . . . . . . . . . . . . . . . 34 39,036 28,046 3,245 7,745 35 Postage and shipping . . . . . . . . . . . . . . . 35 24,036 19,382 -708 5,362 36 Occupancy . . . . . . . . . . . . . . . . . . . 36 248,465 186,430 31,663 30,372 37 Equipment rental and maintenance . . . . . . . . . . 37 19,040 6,783 1,108 11,149 38 Printing and publications . . . . . . . . . . . . . . 38 123,405 105,115 1,007 17,283 39 Travel . . . . . . . . . . . . . . . . . . . . . 39 100,138 46,544 259 53,335 40 Conferences, conventions, and meetings . . . . . . . 40 186,802 51,383 3,390 132,029 41 Interest . . . . . . . . . . . . . . . . . . . . . 41 1,064 799 130 135 42 Depreciation, depletion, etc. (attached schedule 4) . . . 42 81,296 60,998 9,966 10,332 43 Otherexpenses not covered above (itemize): a _C_Jpp_s_l.i_ltipg 43a 171,257 156,931 3,182 1 1,144 Books 81 Subscriptions 43b 52,166 41,840 3,618 6,708, - Newslieleases 43c 23,003 19,664 1,639 1,700 _ _n_s_ur_ance 43d 17,912 13,440 2,196 2,276 Miscellaneous 436 11,393 5,196 729 5,468 43f 18,469 15,470 1,376 1,623 44 Total functional expenses (add lines 22 through 43). Organizations completing columns carry these totals to lines 13-15 44 3,059,268 2,355,557 142,317 551,294 Joint Costs. Check pljir you are following SOP 98-2. Are anyjoint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? . . . . bDYes .No If "Yes," enter the aggregate amount of these joint costs - 0 (ii) the amount allocated to Program services the amount allocated to Management and general and (iv) the amount allocated to Fundraising 3 Statement of Program Service Accomplishments (See page 25 of the instructions.) Program Service Expenses All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number $3223: 223025313,de of clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501(c)(3) and (4) trusts; [lgutop?onm for organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.) others-l What is the organization's primary exempt purpose? attaghedscheduleg (Grants and allocations 670,888 (Grants and allocations 394,807 325,095 (Grants and allocations 363,921 Other program services (attached schedule 3) (Grants and allocations 600,946 fTotal of Program Service Expenses (should equal line 44,- column (B), Program services2,355,657 Form 990 (2003) Form 990 (2003) Competitve Enterprise Institute 52-1351785 Page 3 Balance Sheets (See page 25 of the instructions.) Note: Where required, attached schedules and amounts within the description (A) (B) column should be for end-of?year amounts only. 7 Beginning of year End of year 45 CashH?non-interest-bearing . . . . . . 1,684,443 45 1,547,908 46 Savings and temporary cash investments 46 47 a Accounts receivable . . . . . . . . . . 47a I 8,784 Less: allowance for doubtful accounts . 790 470 8,784 48 a Pledges receivable . . . . . . Less: allowance for doubtful accounts . . . 48b 0 24,441 48c 28,442 49 Grants receivable . . . . . . . . . . . . . . . 49 50 Receivables from of?cers, directors, trustees, and key employees (attach scheduleOther n?tes' and loans receivable (attach a 51a 0 2 Less: allowance for doubtful accounts . . . 51b 0 0 51c 0 52 inventories for sale Prepaid expenses and deferred charges . . . . . . . . . . . 61,765 53 19,205 54 Investments?securities (attach schedule) . . . . DDCost DFMV 0 54 55 a Investments?land, buildings, and - - equipment: basis . . . . . . . . . . . 55a 0 Less: accumulated depreciation (attach 55b 0 055C 0 56 Investments?other (attach scheduleLand, buildings, and equipment: basis . . . 57a 642,163 I Less: accumulated depreciation (attached schedule 57b 499,167 164,067 57c 142,996 58 Other assets (describe Deposits 22,406 58 53,819 59 Total assets (add lines 45 through 58) (must equal line 74) 1,957,912 59 1,801,154 60 Accounts payable and accrued expenses 109,629 60 107,802 61 Grants payable 7 61 62 Deferred revenue . . . . . . . . . . . . . . . . . 62 63 Loans from of?cers, directors, trustees, and key employees (attach schedule) 063 0 :1 64a Tax?exempt bond liabilities (attach schedule) . . 0 64a 0 Mortgages and other notes payable (attach scheduleOther liabilities (describe Capital Lease Deferred Construction 27,750 65 22,544 66 Total liabilities (add lines 60 through 65137,379 . 130,346 Organizations that follow SFAS 117, check here D. Eland complete lines 67 through 69 and lines 73 and 74. 67 Unrestricted . . . 1,774,406 67 1,431,562 68 Temporarily restricted . . . 46,127 68 237,286 69 Permanently restricted . . . . . . . . . . . . . . . 69 '2 Organizations that do not follow SFAS 117, check here >l:]and LE complete lines 70 through 74. 5 70 Capital stock, trust principal, or current funds . . . . . . 70 71 Paid-in or capital surplus, or land, building, and equipment fund . 71 72 Retained earnings, endowment, accumulated income, or other funds 72 73 Total net assets or fund balances (add lines 67 through 69 or 2 lines 70 through 72; column (A) must equal line 19; column (B) must equal line 21) 1,820,533 73 1,670,808 74 Total liabilities and net assets fund balances (add lines 66 and 73) 1,957,912 74 1,801,154 Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part ill, the organization's programs and accomplishments. Form 990 2003) Competitve Enter rise Institute 52-1351785 Page 4 ?Reconciliation of Revenue per Audited Reconciliation of Expenses per Audited Financial Statements with Revenue per Financial Statements with Expenses per Return (See page 27 of the instructions. Return a Total revenue, gains, and other support a Total expenses and losses per I per audited financial statements . . . . a 2,937,772 audited ?nancial statements a 3,075,984 Amounts included on line a but not Amounts included on line a but not 1 1 on line 12, Form 990: on line 17, Form 990: (1) Net unrealized gains 7 Donated services on investments . . and use of facilities . . (2) Donated services and (2) Prior year adjustments use of facilities . . . reported on line 20, (3) Recoveries of prior Form 990 . . . . . . year grants . . . . (3) Losses reported on (4) Other (specify): - line 20, Form 990 . . . 16,716 (4) Other (specify): 16 716 'Add amo'unts on lines (1) through (4) . 16.716 Add amounts on lines (1)through (4) . . 16,716 Line a minus line . . 2,921,056 Line a minus line . . 3,059,268 Amounts included on line 12, Amounts included on line 17, 1 7 Form 990 but not on line a: Form 990 but not on line a: (1) investment expenses (1) Investment expenses not included on line not included on line 6b, Form 990 . . . 6b, Form 990 . . . . (2) Other (specify): (2) Other (specify): Doreelizeqeeic.-. -1 519, Add amounts on lines (1) and (2) -1,519 Add amounts on lines (1) and (2) 0 Total revenue per line 12, Form 990 Total expenses per line 17, Form 990 (line plus line d) . 2,919,537 (line plus line d) 9 3,059,268 List of Officers, Directors, Trustees, and Key Employees (List each one even if not compensated; see page 27 of the instructions.) (Continuation of Key Employee List - attached schedule 5) A dd - (B) Title and average hours per (C) to (E) ame 3? a ??55 week devotee Position ?enler?iill? $913135 ?212112212; a __l\l_al_rr_le_2 1., _S_r_r1itt_l Title President City Washington, ST DC ZIP 4O 7 175,000 0 0 ?ame Title Treasurer/Secretary City Washington sr DC HerK 2 0 0 News Michael. ?3_r_e_v_e t: Title Director City Washington ST. DC Zip 4 7,917 0 0 ?ame t; Title Director City Stuart Heme Dr.- Leonard .Liggjo er: Title Director City Fairfax ST VA ZIP 0 0 0 Moore- .84: Title Director City Palo Alto Heine Erenoee .8 Smith. or: Title Director City Washington _N_a_rr_ie Jody MLClarke t; Title Vice President City Washinton ST DC ZIP 40 85,000 0 "name Martha _l-_lut_t_o t[ Title Vice President City Alexandria ST VA Zip 40 80,000 . 0 ?ange s_ t; Title Vice President City Alexandria ST VA ZIP HerK 40 65,000 0 75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from your organization and all related organizations, of which more than $10,000 was provided by the related organizations? if "Yes," attach schedule?see page 28 of the instructions. DYes .No Form 990 (2003) Form 990 2003) Competitve Enterprise Institute 52-1351785 Page 5 ?Other Information (See page 28 of the instructions.) Yes No 76 Did the organization engage in any activity not previously reported to the If "Yes," attach a detailed description of each activity 76 77 Were any changes made in the organizing or governing documents but not reported to the If "Yes," attach a conformed copy of the changes. 78 a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? . If "Yes," has it ?led a tax return on Form 990-T for this yearWas there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement . 80 a Is the organization related (other than by association with a statewide or nationwide organization) through common membership, governing bodies, trustees, of?cers, etc., to any other exempt or nonexempt organization? . . If "Yes," enter the name of the organization 'b and check whether it is Dexempt or I [nonexempt 81 a Enter direct and indirect poiitical expenditures. See line 81 instructions . . . 81a Did the organization ?le Form 1120-POL for this yearDid the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental value"Yes," you: they indicate the value of these items here. Do not include this amount as revenue in Part I or as an expense in Part II. (See instructions in Part Ill.) . lizb 83 a Did the organization comply with the public inspection requirements for returns and exemption applications? Did the organization comply with the disclosure requirements relating to quid pro quo contributions? 84 a Did the organization solicit any contributions or gifts that were not tax deductible"Yes," did the organization include with every solicitation an express statement that such contributions orgiftswere nottaxdeductible501(c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members? . . Did the organization make only in-house lobbying expenditures of $2,000 or less? . . . If "Yes" was answered to either 85a or 85b, do not complete 850 through 85h below unless the organization received a waiver for proxy tax owed for the prior year.' 78b 79 80a 315 82a" 833 Dues, assessments, and similar amounts from members . . . . . . . . 85c Section 162(e) lobbying and political expenditures . . . . . . . . . . . 85d Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices . . 85e Taxable amount of lobbying and political expenditures (line 85d less 85e) . . 85f 9 Does the organization elect to pay the section 6033(e) tax on the amount on line 85fsection 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of dues ailocable to nondeductible lobbying and political expenditures for the following tax year? 86 501(c)(7) orgs. Enter: a Initiation fees and capital contributions included on line 12 . . 86a Gross receipts, included on line 12, for public use of club facilities . . . . . 86b 87 501 12) orgs. Enter: a Gross income from members or shareholders . 87a Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from themany time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301 .7701-2 and 301 .7701-3? If "Yes," complete Part 501(c)(3) organizations. Enter: Amount of tax imposed on the organization during the year under: section 4911 section 4912 - section 4955 501(c)(3) and 501(c)(4) orgs. Did the organization engage in any section 4958 excess bene?t transaction during the year or did it become aware of an excess bene?t transaction from a prior year? if "Yes," attach a statement explaining each transaction . . . . . . . . . . . . . . . . . . . . . . . . Enter: Amount of tax imposed on the organization managers or disquali?ed persons during the year under 85 WA 85h 7 [88' Enter: Amountoftaxon line 890, above, reimbursed bythe organizationm.List the states with which a copy of this return is ?led attached worksheet Number of employees employed in the pay period that includes March 12, 2003 (See inStructions.) L90b 24 91 The are in care 0f 10.538111? TelePhone 00- Located at Ate-J Jill/y 91w ill/asunder] $109.- Zip +4 ?29936 92 Section 4947(a)(1) nonexempt charitable trusts ?ling Form 990 in lieu of Form 1041? Check here . . and enter the amount of tax-exempt interest received or accrued during the tax year . . . . . I 92 Form 990 (2003) Form 990 (2003) Competitve Enterprise Institute 52-1351785 Page 6 Analysis of income?Producing Activities (See page 33 of the instructions.) Note: Enter gross amounts unless otherwise Unrelated business income Excluded by section 512, 513, or 514 (E) indicatedRelated or exempt 93 Program service revenue: Business code Amount Exclusion code Amount function income a Publications 1,488 . . Medicare/Medicaid payments 9 Fees and contracts from government agencies . 94 Membership dues and assessments 95 Interest on savings and temporary cash investments . . . 96 Dividends and interest from securities 20,091 - - . 14 97 Net rent?iti'nche or (loss) from real estate: a debt-financed property . . not . 98 Net rental income or (loss) from personal property . . . 16 'l 1 .067 99 Other investment income . I . 100 Gain or (loss) from sales of assets other than inventory . 18 . -1 74 101 Net income or (loss) from special events . ?1 02 Gross pro?t or (loss) from sales of inventory . . . 103 Other revenue: a Miscellaneous 15 20,020 debt-financed property . . 104 Subtotal (add columns (B), (D),and . . 105 Total(add line104,coiumn_s (BNote: Line 105 plus line 1d, Part I, should equal the amount on line 12, Part I. 51,004 1,488 52,492 Relationship of Activities to the Accomplishment of Exempt Purposes (See page 34 of the instructions.) Line No. Explain how each activity for which income is reported in column (E) of Part Vii contributed importantly to theaccompiishment of the organization's exempt purposes (other than by providing funds for such purposes). 93a Sale of internally created publication is directly related to our exempt purpose ?Information Regarding Taxable Subsidiaries and Disreg arded Entities (See page 34 of the instructionsName, address, and EIN of corporation, Percentage of . .. End-of?year partnership, or disregarded entity ownership interest ature 0 aCt'V't'eS Uta income assets 0 0 0 0 0 WinfOrmation Regarding Transfers Associated with Personal Benefit Contracts (See page 34 of the instructions.) Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? DYes .No, Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? DYes .No Note: if Yes?to file Form 8870 and Form 4720 (see instructions). Under penalties of per'ury, I declare that i have examined this return, including accompanying schedules and statements, and to the best of my knowledge - and beii it is true, orrect com te. Deciarati reparer ther than of?cer) is based on all information of which preparer has any knowledge. Please Sign . 25 March 2005 Signature of of?cer Date Here . . Fred L. Smith Jr Presrdent Type or print name and title. Preparer's Date Check if Preparer's SSN or PTIN (See Gen. inst. W) Paid signature seif? El Preparers Finn?s name (or yours empfoyed Use Only itself-employed), EIN address, and ZIP 4 Phone no. Form 990 (2003) SCHEDULE A (Form 990 or 990-EZ) Organization Exempt Under Section 501(c)(3) (Except Private Foundation) and Section 501(e), 501(f), 501(k), 501(n), or Section 4947(a)(1) Nonexempt Charitable Trust Supplementary Information?(See separate instructions.) Department of the Treasury Internal Revenue Service MUST be completed by the above organizations and attached to their Form 990 or 990-EZ OMB No. 15450047 .2003 Name of the organization Com etitve Enterprise Institute Compensation of the Five Highest Paid Employees Other Than Officers (See page 1 of the instructions. List each one. If there are none,'enter "None.") Employer identi?cation number 52?1351785 Directors, and Trustees Name and PM ?we ?3333 3:313; 33;; is, Compensation at ac?ii?i?x??f??fihei - deferred compensation allowances Name Marlo Lewis City Washington ST DC Title Senior Fellow Zip Country Avg hr/wk 40 100,000 0 0 Name Sam Kazma?'i?" City Washington ST DC Title General Counsel Zip Country Avg 40 98,000 0 0 Name Myron Ebell City Wasington ST DC Title Dir GI Warming Zip Country Avg hr/wk 40 82,000 0 0 Name Angela Logomasini City Washington ST DC Title Dir Env Zip Country Avg hr/wk 40 67,000 Name Iain Murray City Washington ST DC Title GI Wm Policy Zip Country Avg hr/wk 40 65 000 Total number of other employees paid over 2/ $50,000 . . . . . . . . . . . . . MM Compensation of the Five Highest Paid Independent Contractors for Professional Services (See page 2 of the instructions. List each one (whether individuals or ?rms). If there are none, enter "None.") Name and address of each independent contractor paid more than $50,000 - Type of service Compensation Name Christopher Homer City Alexandria Country ST VA ZIP 22314 Check here if a businessL_ 60,000 Name Check here if a businessL Consulting Fees ST ZIP Total number of others receiving over $50,000 for professional services . . For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ. (HTA) ScheduleA (Form 990 or 990452) 2003 Competitve Enterprise Institute 52-1351785 Page 2 .m Statements AboutActivities (See page20f the instructions.) Yes No 1 During the year, has the organization attempted to in?uence national, state, or local legislation, including any attempt to in?uence public opinion on a legislative matter or referendum? If "Yes," enter the total expenses paid orincurred in connectionwith the lobbying activities 18,647 (Mustequal amounts on line38Organizations that made an election under section 501(h) by ?ling Form 5768 must complete Part Other organizations checking "Yes" must complete Part AND attach a statement giving a detailed description of the lobbying activities. 2 During the year, has the organization, either directly or indirectly, engaged in any of the following acts with any substantial contributors, trustees, directors, of?cers, creators, key employees, or members of their families, or with any taxable organization with which any such person is af?liated as an of?cer, director, trustee, majority owner, or principal bene?ciary? (If the answer to any question is "Yes, attach a detailed statement explaining the transactionsFurnishing ofgoods, services, orfacilltiesPayment ofcompensation (or payment or reimbursement ofexpenses ifmore than $1,000you make grants for scholarships, fellowships, student loans, etc.? (If "Yes," attach an explanation of how. you determinethat recipients qualifyto receive paymentsDoyou haveasection 403(b)annuityplan foryouremployeesDid you maintain any separate account for participating donors where donors have the right to provide advice 4 Part IV Reason for Non-Private Foundation Status (See pages 3 through 6 of the instructions.) The organization is not a privatevfoundation because it is: (Please check only ONE applicable box.) 5 El A church, convention of churches, or association of churches. Section A school. Section (Also complete Part V.) A hospital or a cooperative hospital service organization. Section A Federal, state, or local government or governmental unit. Section I: A medical research organization operated in conjunction with a hospital. Section Enter the hospital's name, city, and state moo-10: 10 I: An organization operated for the bene?t of a college or university owned or operated by a governmental unit. Section (Also complete the Support Schedule in Part 11 a An organization that normally receives a substantial part of its support from a governmental unit or from the general public. Section (Also complete the Support Schedule in Part 11 A community trust. Section (Also complete the Support Schedule in Part IV-A.) 12 El An organization that normally receives: (1) more than 33 113% of its support from contributions, membership fees, and gross receipts from activities related to its charitable, etc, functions?subject to certain exceptions, and (2) no more than 33 113% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Also complete the Support Schedule in Part 13 An organization that is not controlled by any disquali?ed persons (other than foundation managers) and supports organizations described in: (1) lines 5 through 12 abovejor (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)(2). (See section . Provide the following information about the supported organizations. (See page 5 of the instructions.) Line number Name(s) of supported organlzatlon(s) from above 14 An organization organized and operated to test for public safety. Section 509(a)(4). (See page 6 of the instructions.) Schadule A (Form 990 or 990-EZ) 2003 Schedule A (Form 990 0F 990-52) 2003 Competitve Enterprise Institute 52-1351785 Page 3 Support Schedule (Complete only if you checked a box on line 10, 11, or 12.) Use cash method of accounting. Note: You may use the worksheet in the instructions for converting from the accrual to the cash method of accounting. Calendar year (or fiscal year beginning in) . . 2002 2001 2000 1999 Total 15 Gifts, grants, and contributions received. (Do not include unusual grants. See line 28.) 3,056,783 2,935,335 3,109,944 2,656,633 11,758,695 16 Membership fees received . . . . . 17 Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is related to the organization's charitable, etc, purpose 0 0 77,492 59,021 136,513 18 Gross income from interest, dividends, - amounts received from payments on securities loans (section rents, royalties, and unrelated business taxable income (less section 511 taxes). from businesses acquired by the organization after June 30, 1975 17,280 17,451 48,361 57,442 140,534 19 Net income from unrelated business activities not included in line 18 0 20 Tax revenues levied for the organization's bene?t and either paid to it or expended on itsbehalf. 0 21 The value of services or facilities furnished to the organization by a governmental unit without charge. Do not include the value of services or facilities generally furnished to the public without charge . . . . . 0 22 Other income. Attached schedule 6. Do not include gain or (loss) from sale of capital assets 3,544 11,229 15,201 34,689 64,663 23 Total of lines 15 through 22 3,077,607 2,964,015 3,250,998 2,807,785 12,100,405 24 Line 23 minus line 17 3,077,607 2,964,015 3,173,506 2,748,764 11,963,892 25 Enter 1% of line 30,776 29,640 32,510 28,078 26 Organizations described on lines 10 or 11: a Enter 2% of amount in column line 26a 239,278 Prepare a list for your records to show the name of and amount contributed by each person-(other than a . governmental unit or publicly supported organization) whose total gifts for 1999 through 2002 exceeded the amount shown in line 26a. Do not file this list with your return. Enter the total of all these excess amounts 26b 3,092,220 Total support for section 509(a)(1) test: Enter line 24, column . . . . . . . . . . . . . . . . . 260 11,963,892 Add: Amounts from column for lines: 18 140,534 19 0 I I 22 64,663 26b 3,092,220 . . . . . . . 26d 3,297,417 9 Public support (line 26c minus line 26d total26e. 8,666,475 Publicsupport percentage (line 26a (numerator) divided by line 26c (denominator26f 72.44% 27 Organizations described on line 12: a For amounts included in lines 15, 16, and 17 that were received from a "disquali?ed person," prepare a list for your records to show the name of, and total amounts received in each year from, each ?disquali?ed person." Do not file this list with your return. Enter the sum of such amounts for each year: (2002) (2001) (2000) (1999) For any amount included in line 17 that was received from each person (other than "disquali?ed persons"), prepare a list for your records to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000. (Include in the list organizations described in lines 5 through 11, as well as individuals.) Do not file this list with your return. After computing the difference between the amount received and the larger amount described in (1 or (2), enter the ,sum of these differences (the excess amounts) for each year: (2002) (2001) (2000) (1999) Add: Amounts from column for linesAdd: Line 27a total . 0 and line 275 total . Public support (line 27c total minus line 27d totalTotal support for section 509(a)(2) test: Enter amount from line 23, column . . I 27f 0/ 77/ 9 Public support percentage (line 27e (numerator) divided by line 27f (denominator279 0.00% Investment income percentage (line 18, column (numerator) divided by line 27f (denominator)) . 27h 0.00% 28 Unusual Grants: For an organization described in line 10, 11, or 12 that received any unusual grants during 1999 through 2002, prepare a list for your records to show, for each year, the name of the contributor, the date and amount of the grant, and a brief description of the nature of the grant. Do not file this list with your return. Do not include these grants in line 15. Schedule A (Form 990 or 990?152) 2003 Schedule A (Form 990 0r 990452) 2003 Competitve Enterprise Institute 52?1351785 Page 4 WPrivate School Questionnaire (See page 7 of the instructions.) Not Applicable (To be completed ONLY by schools that checked the box on line 6 in Part IV) 29 Does the organization have a racially nondiscriminatory policy toward students by statement in its Yes No charter, bylaws, other governing instrument, or in a resolution of its governing body? 30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures, catalogues, and other written communications with the public dealing with student admissions, programs. and scholarships? 31 Has the organization publicized its racially nondiscriminatory policy through newspaper or broadcast media during the period of solicitation for students, or during the registration period if it has no solicitation program, in a way that makes the policy known to all parts of the general community it serves? . If "Yes," please describe; if please explain. (if you need more space, attach a separate statement.) 32 Does the organization maintain the following: a Records indicating the racial composition of the student body, faculty, and administrative staff? Records documenting that scholarships and other ?nancial assistance are awarded on a racially nondiscriminatory basisCopies of all catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships? . . . . . Copies of all material used by the organization or on its behalf to solicit contributions? If you answered "No" to any of the above, please explain. (if you need more space, attaCh a separate statement.) 33 a Students' rights or privileges? Admissions policies? Employment of faculty or administrative staff? Scholarships or other ?nancial assistance? 9 Educational policies? Use of facilities? 9 Athletic programs? Other extracurricular activities? If you answered "Yes" to any of the above, please explain. (If you need more space, attach a separate statement.) 34 a Does the organization receive any ?nancial aid or assistance from a governmental agency? Has the organization's right to such aid ever been revoked or suspended? . If you answered "Yes" to either 34a or b, please explain using an attached statement. 35 Does the organization certify that it has complied with the applicable requirements of sections 4.01 through 29 30 31 32a 32b 32c 32d 33a 33b 33c 33d 33e 33f 4.05 of Rev. Proc. 75-50, 1975-2 08. 587, covering racial nondiscrimination? if attach an explanation Schedule A (Form 990 or 990-EZ) 2003 SChedUle A (Form 990 OF 990-152) 2003 Competitve Enterprise institute 52-1351785 Page 5 Lobbying Expenditures by Electing Public Charities (See page 9 of the instructions.) (To be completed ONLY by an eligible organization that ?led Form 5768) Check a El if the organization belongs to an affiliated group. Check I: if you checked and "limited control" provisions apply._ . . . . Limits on Lobbying Expenditures mum: group :gr?iogg?gd (The term ?expenditures" means amounts paid or incurred.) tOtaIS organizations 36 Total lobbying expenditures to influence public opinion (grassroots lobbyingTotal lobbying expenditures to in?uence a legislative body (direct lobbying18,647 38 Total lobbying expenditures (add lines 18,647 39 Other exempt purpose expenditures . . . . . . . . . . . . . . . . . . . . . . . 39 3,040,621 40 Total exempt purpose expenditures (add lines 3,059,268 41 Lobbying nontaxable amount. Enter the amount from the following table? I I . If the amount on line 40 is? The lobbying nontaxable amount is.20% ofthe amountonline40 . . . .. not over $1,000,000 . . . .$100,000 plus15% ofthe excess over$500,000 Over$1,000,000 but not over$1,500,000 . . . $175,000 plus10% ofthe excess over$1,000,000 41 ., 0 302,963 Over $1,500,000 but not over $17,000,000 . . .s225,000 plus 5% of the excess over $1,500,000 a Over $17,000,000 . . . . . . . . . . . $1,000,000 . . . . . . . . . 42 Grassroots nontaxable amount (enter 25% of line 4175,741 43 Subtract line 42 from line 36. Enter if line 42 is more than line Subtract line 41 from line 38. Enter ifline 41 is more than line Caution: If there is an amount on either line 43 or line 44, you must ?le Form 4720.- 4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501 election do not have to complete all of the five columns below. See the instructions for lines 45 through 50 on page 11 of the instructions.) Lobbying Expenditures During 4-Year Averaging Period Calendar year (or - fiscal year beginning'in) 2003 2002 2001 2000 Total 45 Lobbying nontaxable amount . . . . . . . . . . 278,574 278,495 280,578 325,933 1,163,580 46 Lobbying ceiling amount (150% of line 45(e)) . . . 2 1,745,370 47 Total lobbying expenditures . . . . . . . . . . 18,547 12,412 10,981 3,468 45,408 48 Grassroots nontaxable amount 290,896 49 Grassroots ceiling amount (150% of line 48(e)) 436,344 50 Grassroots lobbying expenditures . . . . . Part Lobbying Activity by Nonelecting Public Charities (For reporting only by organizations that did not complete Part (See page 12 of the instructions.) During the year, did the organization attempt to in?uence 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 through . 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 of?cials, or a legislative body . Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means Total lobbying expenditures (Add lines through . . . . . . . . . . . . . . . . If "Yes" to any of the above, also attach a statement giving a detailed description of the lobbying activities. Schedule A (Form 990 or 990-EZ) 2003 Yes No Amount SChedule A (Form 990.0r 990452) 2003 Competitve Enterprise Institute 52- 1351785 Page 6 Minformation Regarding Transfers To and Transactions and Relationships With Noncharitable Exempt Organizations (See page 12 of the instructions 51 Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code_(other than section 501(c)(3) organizations) or in section 527, relating to political organizations? a Transfers from the reporting organization to a noncharitabie exempt organization of; Yes No Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51a (ii) Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ii Other transactions: Sales or exchanges'of assets with a noncharitable exempt organization (ii) Purchases of assets from a noncharitable exempt organization Rental of facilities, equipment, or other assets (iv) Reimbursement arrangements Loans or loan guarantees . . . . . . . . . . . Performance of services or membership or fundraising solicitations Sharing offacilities, equipment mailing lists other assets orpaid employees . . . . . . . . . . . .7 If the answer to any of the above Is "Yes, complete the following schedule. Column should always show the fair market value of the goods, other assets, or services given by the reporting organization. if the organization received less than fair market value in any transaction or sharing arrangement, show in column the value of the goods, other assets, or services received: (C) Line no. Amount involved Name of noncharitable of transfers, and 52 a Is the organization directly or indirectly af?liated with, or related to, one or more tax-exempt Organizations described in section 501(0) of the Code (other than section 501(c)(3)) orin section 527"Yes com the followin schedule: (6) Name of, of ization . of reiationsh Schedule A (Form 990 or 990-EZ) 2003 Schedule Schedule of Contributors . OMB No. 1545-0047 (Form 990, 990-52, or 990-PF) Supplementary Information for - Department of the Treasury line 1 of Form 990, 990-EZ, and (see instructions) 2 00 3 Internal Revenue Service Name of organization Employer identification number Competitve Enterprise Institute 52-1351785 Organization type (check one): Filers of: Section: Form 990 or 501 3) (enter number) organization 4947(a)(1) nonexempt charitable trust not treated as a private foundation 527 political organization I 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 box(es) for both the General rule and a Special rule?see instructions.) General Rule? For organizations ?ling 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? For a section 501(c)(3) organization ?ling Form 990, or Form that met the 33 1/3% support test of the regulations under sections and received from any one contributor, during'the year, a contribution of the greater of $5,000 or 2% of the amount on line 1 of these forms. (Complete Parts I and II.) I: For a section 501(c)(7), (8), or (10) organization ?ling Form 990, or Form 990-EZ, that received from any one contributor, during the year, aggregate contributions or bequests of more than $1,000 for use exclusively for religious, charitable, scienti?c, literary, or educational purposes, or the prevention of cruelty to children or animals. (Complete Parts I, II, and I: For a section 501(c)(7), (8), or (10) organization ?ling Form 990, or Form 990-EZ, that received from any one contributor, during the year, some contributions for use exclusively for religious, charitable, etc., purposes, but these contributions did not aggregate 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 Caution: Organizations that are not covered by the General Rule and/or the Special Rules do not file Schedule (Form 990, 990-EZ, or 990-PF), but they must check the box in the heading of their Form 990, Form 990-EZ, or on line 1 of their Form QQO-PF, to certify that they do not meet the filing requirements of Schedule (Form 990, 990-EZ, or 990-PF). For Paperwork Reduction Act Notice, see the Instructions Schedule (Form 990, 990-EZ, or 990-PF) (2003) for Form 990 and Form 990-EZ. (HTA) Schedule (Form 990, 990-EZ, or QQO-PF) (2003) Name of organization Page 1 to 2 of Partl Employer identification number Competitve Enterprise Institute 52-1351785 Contributors (See Specific Instructions.) (C) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution William 2999. (Anonxmotis). Person DCheck if above is a business Payroll I: .399. La. Street 315.999. Noncash CI 3999A (Complete Part II it there is Foreign State or Provence: a noncash contribution.) Foreign Country: lb) (6) - No. Name, address, and ZIP 4 Aggregate contributions Type of contribution Person .Check if above is a business Payroll 99.52 Les. - 199.999. . Noncash DE (Complete Part if there is Foreign State or Provence: a noncash contribution.) Foreign Country: (3) lb.) (C) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution general. Motors. foundation Person .Check if above is a business Payroll El .999. 3.9.95.9?99 1.9.5.999. Noncash _D_e_tfgi_t Ml (Complete Part I I if there is Foreign State or Provence: a nOncash contribution.) Foreign Country: (all . - No. Name, address, and ZIP 4 Aggregate contributions Type of contribution ._Se.re__8_o_e1iie _Eo999etion Person .Check if above is a business Payroll I: 99.1- _s_91ts_3999 159.999. Noncash 1 (Complete Part II ifthere is Foreign State or Provence: a ?01103511 contribution.) Foreign Country: (3) . (C) Id) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution 93995929 Person DCheck it above is a business Payroll .2111- 199.999. Noncash (Complete Part II if there is Foreign State or Provence: a noncash contribution.) Foreign Country: (8) (6) Id) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution '6 Microsoft Corporation Person .Check if above is a business Redmond WA Foreign State or Provence: Foreign Country: Payroll Noncash I: (Complete Part II if there is a noncash contribution.) Schedule (Form 990, 990-52, or BSD-PF) (2003) Schedule (Form 990, 990-EZ, or (2003) Page 2 to 2 of Partl Name of organization . Employer identification number Competitve Enterprise Institute 52?1351785 Contributors (See Specific Instructions.) (3) (C) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution 7 Person .Check if above is a business Payroll $80000 Noncash Ci (Complete Part if there is Foreign State or Provence: a noncash contribution.) . Foreign Country: - (C) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution Person .Check if above is a business Payroll I: .399. street r5999. Noncash 3_ - (CompletePartllifthereis Foreign State or Provence: a noncash contribution.) Foreign Country: (C) No. Name, address, and ZIP 4 Aggregate contributions Type of contribution .9. 9. .Fp_u_r3