Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - Form990 ?El Department of the Treasun Internal Rex enue Sen 1ce foundations) Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except private Do not enter SOClal security numbers on this form as it may be made public Information about Form 990 and Its Instructions is at IRS govgform990 OMB No 1545-0047 2016 Open to Public Inspection A For the 2016 calendar year, or tax year beginning 09-01-2016 and ending 08-31-2017 Check if applicable El Address change Name change Initial return Final Beturn/terminated El Amended return El Application pending Name of organization Mercatus Center Inc D0ing busmess as Employer identification number 54-1436224 3434 Washington 4th Floor Number and street (or 0 box if mail is not delivered to street address) Room/swte Telephone number (703) 993-4930 Arlington, VA 22201 City or town, state or provmce, country, and ZIP or foreign postal code Gross receipts 30,385,502 Gary Leff 3434 Washington 4th Floor Arlington,VA 22201 Name and address of prinCIpal officer I Tax-exempt status 501(c)(3) 501(c)( )4(insert no) l:l 4947(a)(1)or l:l 527 Website:> mercatus org subordinates? H(b) Are all subordinates included? If attach a list (see instructions) Group exemption number H(a) Is this a group return for l:lYes .No l:lYes l:lNo Form of organization Corporation l:l Trust l:l l:l Other? Year of formation 1987 State of legal domICIle VA Summary 1 Briefly describe the organization?s mi55ion or most Significant actiwties To bridge the gap between academic research and public policy problems ACIIVHIGS 5i Governance Check this box l:l if the organization discontinued its operations or disposed of more than 25% of its net assets 3 Number of voting members of the governing body (Part VI, line 1a) 3 10 4 Number of independent voting members of the governing body (Part VI, line 1b) 4 8 5 Total number of indiViduals employed in calendar year 2016 (Part V, line 2a) 5 190 6 Total number of volunteers (estimate if necessary) 6 7a Total unrelated busmess revenue from Part column (C), line 12 7a Net unrelated busmess taxable income from Form 990-T, line 34 7b Prior Year Current Year a, 8 Contributions and grants (Part line 1h) 27,425,836 29,211,150 9 Program serVIce revenue (Part line 29) 235,707 260,845 10 Investment income (Part column (A), lines 3, 4, and 7d 12,141 65,954 11 Other revenue (Part column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 16,623 28,275 12 Total revenue?add lines 8 through 11 (must equal Part column (A), line 12) 27,690,307 29,566,224 13 Grants and Similar amounts paid (Part IX, column (A), lines 1?3 1,036,015 472,066 14 Benefits paid to or for members (Part IX, column (A), line 4) 0 0 33 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5?10) 13,871,088 15,807,074 16a Professwnal fundraismg fees (Part IX, column (A), line He) 0 0 g. Total fundraismg expenses (Part IX, column (D), line 25) '1 17 Other expenses (Part IX, column (A), lines 11a?11d, 11f?24e) 10,112,475 11,303,047 18 Total expenses Add lines 13?17 (must equal Part IX, column (A), line 25) 25,019,578 27,582,187 19 Revenue less expenses Subtract line 18 from line 12 2,670,729 1,984,037 3 3 Beginning of Current Year End of Year 13% 20 Total assets (Part X, line 16) . 21,973,248 22,827,547 :2 21 Total liabilities (Part X, line 26) . 4,900,258 3,756,443 22 Net assets or fund balances Subtract line 21 from line 20 17,072,990 19,071,104 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 2018-02-19 Signature of officer Date Sign Here Gary Leff Treasurer and CFO Type or print name and title Print/Type preparer's name Preparer's Signature Date l:l PTIN Lori A Collingsworth Lori A Collingsworth 2018?02?16 If P00639819 Pald self?employed Preparer Firm's name Rogers Company PLLC Firm's EIN 58-2676261 Firm's address 8300 Boone Boulevard 600 Phone no 703 893-0300 Use Only Vienna, VA 22182 May the IRS discuss this return With the preparer shown above? (see instructions) .Yes l:l No For Paperwork Reduction Act Notice, see the separate instructions. Cat No 11282Y Form 990 (2016) Form 990 (2016) Page 2 Statement of Program Service Accomplishments Check if Schedule 0 contains a response or note to any line In this Part . . . . . . . . . . . . . . 1 Briefly describe the organization's mi55ion The Center educates students and is an organization that uses sound interdisaplinary research and application in the humane sCIences that integrates theory and practice to develop iri5ights and tools that can sustainably advance a free, prosperous, and soaety 2 Did the organization undertake any Significant program serVIces during the year which were not listed on thepriorForm9900r990-EZ7 . . . . . . . . . . . . . . . . . . . . . l:lYes .No If "Yes," describe these new serVIces on Schedule 0 3 Did the organization cease conducting, or make Significant changes in how it conducts, any program l:lYes-No If "Yes," describe these changes on Schedule 0 4 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 are reqUIred to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program serVIce reported 4a (Code (Expenses 7,660,924 including grants of (Revenue 20,000 See Additional Data 4b (Code (Expenses 7,250,380 including grants of 470,153 (Revenue 234,357 See Additional Data 4c (Code (Expenses 5,357,442 including grants of 1,913 (Revenue 6,488 See Additional Data See Additional Data Table 4d Other program serVIces (Describe in Schedule 0 (Expenses 3,654,762 including grants of (Revenue 4e Total program service expenses? 23,923,508 Form 990 (2016) Form 990 (2016Page 3 Checklist of Required Schedules Yes No Is the organization described In section 501(c)(3) or 4947(a)(1) (other than a private Foundation)? If "Yes,? complete Yes Schedule A 1 Is the organization reqUIred to complete Schedule 5, Schedule of Contributors (see instructions)? '25] . 2 YES Did the organization engage in direct or indirect political campaign actIVItieS on behalf of or in oppOSition to candidates No for public office? If ?Yes," complete Schedule C, Part I 3 Section 501(c)(3) organizations. Did the organization engage in lobbying actiwties, or have a section 501(h) election in effect during the tax year? If ?Yes, complete Schedule C, Part II . 4 N0 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 98-197 If ?Yes, complete Schedule C, Part 5 N0 Did the organization maintain any donor adVIsed funds or any Similar funds or accounts for which donors have the right to prowde adVIce on the distribution or investment of amounts in such funds or accounts? If ?Yes, complete Schedule D, Part I 39' 6 0 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 . 7 0 Did the organization maintain collections of works of art, historical treasures, or other Similar assets? If ?Yes, complete Schedule D, Part 3 0 Did the organization report an amount in Part X, line 21 for escrow or custodial account liability, serve as a custodian for amounts not listed in Part X, or prowde credit counseling, debt management, credit repair, or debt negotiation serVIces7If "Yes, complete Schedule D, Part IV 94 9 0 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, 10 No permanent endowments, or quaSI-endowments7 If ?Yes," complete Schedule D, Part If the organization's answer to any of the followmg questions is "Yes," then complete Schedule D, Parts VI, VII, IX, or as applicable Did the organization report an amount for land, bUIldings, and eqUIpment in Part X, line 107 If "Yes, complete Schedule D, Part VI W- 118 es 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 167 If "Yes, complete Schedule D, Part VII 11b 0 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 167 If ?Yes," complete Schedule D, Part 9.4 11C 0 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 167? If "Yes complete Schedule D, Part Did the organization report an amount for other liabilities in Part X, line 257 If "Yes,' complete Schedule D, PartX 11e Yes Did the organization's separate or consolidated finanCIal statements for the tax year include a footnote that addresses 11f Yes the organization's liability for uncertain tax pOSItions under FIN 48 (ASC 740)? If "Yes," complete Schedule D, Part 39' Did the organization obtain separate, independent audited finanCIal statements for the tax year? If ?Yes, complete Schedule D, Parts 12a Yes Was the organization included in consolidated, independent audited finanCIal statements for the tax year? 12b No If "Yes, and if the organization answered "No? to line 12a, then completing Schedule D, Parts XI and XII iS optional Is the organization a school described in section If ?Yes," complete Schedule 13 0 Did the organization maintain an office, employees, or agents outSide of the United States? 14a No Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraiSing, busmess, 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 . 14b N0 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or other aSSistance to or for any foreign organization? If "Yes, complete Schedule F, Parts II and IV . 15 N0 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or other aSSistance to or for foreign indiViduals? If "Yes, complete Schedule F, Parts and IV . 16 N0 Did the organization report a total of more than $15,000 of expenses for profeSSIonal fundraising serVIceS on Part IX, 17 No column (A), lines 6 and 11e7 If ?Yes," complete Schedule G, PartI (see instructions) Did the organization report more than $15,000 total of fundraiSing event gross income and contributions on Part lines 1c and 8a? If "Yes," complete Schedule G, Part II . 18 No Did the organization report more than $15,000 of gross income from gaming actIVItieS on Part line 9a? If "Yes," complete Schedule G, Part . . . 19 N0 Form 990 (2016) Form 990 (2016) Page 4 Checklist of Required Schedules (continued) Yes No 203 Did the organization operate one or more hospital faCIlities? If ?Yes," complete Schedule . 20a No If "Yes" to line 20a, did the organization attach a copy of its audited finanCIal statements to this return? 20b 21 Did the organization report more than $5,000 of grants or other assistance to any domestic organization or domestic 21 Yes government on Part IX, column (A), line 1? If "Yes,? complete Schedule I, Parts I and II . 22 Did the organization report more than $5,000 of grants or other a55istance to or for domestic indiViduals on Part IX, 22 column (A), line 2? If "Yes, complete Schedule I, Parts I and . W- No 23 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," 23 Yes completeScheduleJ24a 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 If go to line 25a . 24a No Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? . 24b Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? 24c Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year? 24d 25a Section 501(c)(3), 501(c)(4), and 501(c)(29) organizations. Did the organization engage in an excess benefit transaction With a disqualified person during the year? If "Yes," complete Schedule L, Part I . 25a No 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 25b No If "Yes, complete Schedule L, Part Did the organization report any amount on Part X, line 5, 6, or 22 for receivables from or payables to any current or former officers, directors, trustees, key employees, highest compensated employees, or disqualified persons? 26 No If ?Yes, complete Schedule L, Part II 27 Did the organization prowde a grant or other a55istance 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 27 No of any of these persons? If "Yes, complete Schedule L, Part . 28 Was the organization a party to a business transaction With one of the fo 0Wing parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions) a A current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part IV 28a No A family member of a current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part 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 . 28: N0 29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes,? complete Schedule . . SJ 29 Yes 30 Did the organization receive contributions of art, historical treasures, or other Similar assets, or qualified conservation contributions? If "Yes," complete Schedule . . . . . a 30 0 31 Did the organization liqUIdate, terminate, or dissolve and cease operations? If ?Yes," complete Schedule N, PartI . No 31 32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If ?Yes, complete Schedule N, Part II 32 N0 33 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, PartI . . . . . 33 N0 34 Was the organization related to any tax- -exempt or taxable entity? If "Yes,? complete Schedule R, Part II, or IV, and Partl/,linel 34 N0 353 Did the organization have a controlled entity Within the meaning of section 512(b)(13)? 35a N0 If ?Yes' to line 35a, 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 35b 36 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 36 N0 37 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 37 N0 38 Did the organization complete Schedule 0 and prowde explanations in Schedule 0 for Part VI, lines 11b and 19? Note. All Form 990 filers are reqUIred to complete Schedule 0 38 Yes Form 990 (2016) Form 990 (2016) Page 5 Statements Regarding Other IRS Filings and Tax Compliance Check If Schedule 0 contains a response or note to any line In this Part . Enter the number reported In Box 3 of Form 1096 Enter -0- If not applicable . . 1a 482 Enter the number of Forms W-ZG Included In line 1a Enter -0- If not applicable 1b 0 Did the organizatIon comply With backup Withholding rules for reportable payments to vendors and reportable gaming (gambling) WinnIngs to prIze Winners? 1c Yes Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements, ?led for the calendar year ending WIth or WIthIn the year covered by 2a 190 If at least one IS reported on line 2a, dId the organization We all reqUIred federal employment tax returns? 2b Yes Note.If the sum of lines 1a and 2a Is greater than 250, you may be reqUIred to e-fIle (see instructions) Did the organization have unrelated busmess gross income of $1,000 or more during the year? 3a No If ?Yes," has It ?led a Form 990-T for thIs year7If "No? to line 3b, prowcle an explanation In Schedule 0 3b 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 ?nancial account)? 4a No If "Yes," enter the name of the foreign country See Instructions for ?ling reqUIrements for Form 114, Report of Foreign Bank and FinanCIal Accounts (FBAR) Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? 5a No Did any taxable party notIfy the organization that It was or Is a party to a prohibited tax shelter transaction? 5b No If "Yes," to lIne 5a or 5b, did the organIzation ?le Form 8886-T7 5c Does the organizatIon have annual gross reCEIpts that are normally greater than $100,000, and did the organization 6a No what any contributions that were not tax deducthle as charItable contributions? If "Yes," dId the organIzatIon Include WIth every so ICItatIon an express statement that such contrIbutIons or were not tax deducthle7 . . . . . . . . . . . . . 6b Organizations that may receive deductible contributions under section 170(c). Did the organizatIon receive a payment In excess of $75 made partly as a contribution and partly for goods and serVIces 7a Yes prowded to the payor? If "Yes," dId the organIzatIon notIfy the donor of the value of the goods or serVIces prowded" 7b Yes Did the organizatlon sell, exchange, or otherWIse dIspose of tangible personal property for which It was reqUIred to ?le Form82827 7c No If "Yes," Indicate the number of Forms 8282 ?led during the year . . . . I 7d I Did the organizatlon receive any funds, directly or Indirectly, to pay premiums on a personal bene?t contract? 7e No Did the organizatIon, during the year, pay premiums, dIrectly or IndIrectly, on a personal benefit contract? 7f No If the organization received a contrIbutIon of qualified Intellectual property, did the organization ?le Form 8899 as reqUIredthe organization received a contrIbutIon of cars, boats, airplanes, or other vehIcles, dId the organizatIon file a Form 1098-C7 7h Sponsoring organizations maintaining donor advised funds. Did a donor adVIsed fund maIntained by the sponsorIng organIzatIon have excess busmess holdIngs at any tIme durIng the year? 8 Did the sponsorIng organIzatIon make any taxable dIstrIbutIons under section 49667 9a Did the sponsorIng organIzatIon make a dIstrIbutIon to a donor, donor adVIsor, or related person? 9b Section 501(c)(7) organizations. Enter InItiatIon fees and capItal contrIbutIons Included on Part line 12 . . . 10a Gross receipts, Included on Form 990, Part line 12, for public use of club 10b Section 501(c)(12) organizations. Enter Gross Income from members or shareholders . . . . . . . . . 11a Gross Income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them . . . . . . . . . . 11b Section 4947(a)(1) non-exempt charitable trusts. Is the organizatIon filing Form 990 In lIeu of Form 10417 12a If "Yes," enter the amount of tax-exempt Interest received or accrued durIng the year 12b Section 501(c)(29) qualified nonprofit health insurance issuers. 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 0 13a Enter the amount of reserves the organization IS reqUIred to maintaIn by the states In which the organIzatIon Is licensed to Issue quaIIfied health plans . . . . 13b Enter the amount of reserves on hand . . . . . . . . . . . . 13c Did the organizatIon receive any payments for Indoor tannIng serVIces durIng the tax year? 14a No If "Yes," has It ?led a Form 720 to report these payments7If ?No,"prov1cle an explanation In Schedule 0 . 14b Form 990 (2016) Form 990 (2016) Governance, Management, and DisclosureFor each "Yes" response to lInes 2 through below, and for a "No" response to lines Page 6 8a, 8b, or 10b below, descrIbe the crrcumstances, processes, or changes In Schedule 0 See Instructions Check If Schedule 0 contaIns a response or note to any Me In thIs Part VI Section A. Governing Body and Management Yes No 1a Enter the number of votIng members of the governIng body at the end of the tax year 1a 10 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 sImIIar commIttee, explaIn In Schedule 0 Enter the number of votIng members Included In lIne 1a, above, who are Independent 1b 8 2 any of?cer, dIrector, trustee, or key employee have a famIIy relatIonshIp or a busmess relatIonshIp WIth any other of?cer, dIrector, trustee, or key employee? 2 Yes 3 the organIzatIon delegate control over management dutIes customarIly performed by or under the dIrect superVISIon 3 No of of?cers, dIrectors or trustees, or key employees to a management company or other person? 4 the organIzatIon make any SIgnIfIcant changes to Its governIng documents smce the prIor Form 990 was ?led? 4 No 5 the organIzatIon become aware durIng the year of a SIgnIfIcant dIverSIon of the organIzatIon's assets? No the organIzatIon have members or stockholders? No 7a the organIzatIon have members, stockholders, or other persons who had the power to elect or appomt one or more members of the governIng bodyAre any governance deCISlonS of the organIzatIon reserved to (or subject to approval by) members, stockholders, or 7b No persons other than the governIng body? 8 the organIzatIon contemporaneously document the meetIngs held or ertten actIons undertaken durIng the year by the followmg a The governIng body? 8a Yes Each commIttee WIth authorIty to act on behalf of the governIng body? 8b Yes 9 Is there any of?cer, dIrector, trustee, or key employee lIsted In Part VII, SectIon A, who cannot be reached at the organIzatIon?s address? If ?Yes, provrde the names and addresses In Schedule 0 . 9 No Section B. Policies (ThIs Sectron requests Informatron about polrcres not reqUIred by the Internal Revenue Code.) Yes No 10a the organIzatIon have local chapters, branches, or affIlIates7 10a No If "Yes," dId the organIzatIon have ertten polICIes and procedures governIng the actIVItIes of such chapters, and branches to ensure theIr operatIons are conSIstent WIth the organIzatIon's exempt purposes? 10b 113 Has the organIzatIon prowded a complete copy of thIs Form 990 to all members of Its governIng body before fIlIng the form? . 11a No DescrIbe In Schedule 0 the process, If any, used by the organIzatIon to reVIew thIs Form 990 12a the organIzatIon have a ertten conflIct of Interest pollcy? If go to ?ne 13 12a Yes Were offIcers, dIrectors, or trustees, and key employees reqUIred to dIsclose annually Interests that could gIve rIse to coanIcts7 12b Yes the organIzatIon regularly and consIstently monItor and enforce complIance WIth the polIcy? If ?Yes," descrIbe In Schedule 0 how thIs was done . . . . . . . . . . . . . 12c Yes 13 the organIzatIon have a ertten polIcy7 13 Yes 14 the organIzatIon have a ertten document retentIon and destructIon pollcy7 14 Yes 15 the process for determInIng compensatlon of the followmg persons Include a rewew and approval by Independent persons, comparabIlIty data, and contemporaneous substantIatIon of the delIberatIon and deCI5I0n7 a The organIzatIon?s CEO, ExecutIve DIrector, or top management offICIal 15a Yes Other of?cers or key employees of the organIzatIon 15b Yes If "Yes" to Ine 15a or 15b, descrIbe the process In Schedule 0 (see InstructIons) 16a the organIzatIon Invest In, contrIbute assets to, or partICIpate In a venture or SImIlar arrangement WIth a taxable entIty durIng the year? 16a No If "Yes," dId the organIzatIon follow a ertten pollcy or procedure reqUIrIng the organIzatIon to evaluate Its partICIpatIon In Jomt venture arrangements under appIIcable federal tax law, and take steps to safeguard the organIzatIon?s exempt status WIth respect to such arrangements? 16b Section C. Disclosure 17 18 19 20 LIst the States WIth a copy of thIs Form 990 IS reqUIred to be ?led} SectIon 6104 reqUIres an organIzatIon to make Its Form 1023 (or 1024 If applIcable), 990, and 990-T (501(c)(3)s only) avaIIable for publIc InspectIon IndIcate how you made these avaIIable Check all that apply El Own webSIte El Another's webSIte Upon request Other (explaIn In Schedule O) DescrIbe In Schedule 0 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, address, and telephone number of the person who possesses the organIzatIon's books and records PThe Center 3434 WashIngton 4th Floor ArlIngton,VA 22201 (703) 993-4930 Form 990 (2016) Form 990 (2016) Page 7 Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check if Schedule 0 contains a response or note to any line In this Part VII . . . . . . . . . l:l 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 0 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 0 List all of the organization?s current key employees, if any See instructions for definition of "key employee 0 List the organization's five current highest compensated employees (other than an officer, director, trustee or key employee) who recewed 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 0 List all of the organization?s former officers, key employees, or highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations 0 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 followmg order indIVIdual trustees or directors, institutional trustees, officers, key employees, highest compensated employees, and former such persons l:l Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee (A) (B) (C) (D) (E) (F) Name and Title Average P05ition (do not check more Reportable Reportable Estimated hours per than one box, unless compensation compensation amount of other week (list person is both an officer from the from related compensation any hours and a director/trustee) organization organizations from the for related - (W- 2/1099- (W- 2/1099- organization and 5 a 5' 2t :1 organizations .1 :3 MISC) MISC) related below dotted g) E- E7 3 organizations line(1) Tyler Cowen 00 37,500 0 0 Chairman (2) Charles Koch 00 0 0 0 Director (3) Richard Fink 00 0 0 0 Director (4) Vernon Smith 1 00 0 0 0 Director (5) Manuel Johnson 1 00 0 0 0 Director (6) Frank Atkinson 00 0 0 0 Director (7) Edwm Meese 00 0 0 0 Director (8) Don Boudreaux 00 56,250 0 0 Director (9) Emily Chamlee-Wright 00 0 0 0 Director (10) Brian Hooks 00 0 0 0 Director (11) Daniel 40 00 282,500 0 17,580 Executive Director (12) Jennifer Zambone 40 00 178,750 0 5,325 Secretary, VP of Operations (13) Gary Leff 25 00 132,031 0 8,792 Treasurer and CFO (14) Veronique De Rugy 40 00 263,750 0 6,215 Senior Research Fellow (15) Virgil Storr 40 00 238,750 0 6,458 Senior Director of Academic and Students Programs (16) Jason Fichtner 40 00 186,250 0 6,361 Senior Research Fellow (17) Patrick McLaughlin 40 00 187,500 0 5,298 Director of the Program for Economic Research on Form 990 (2016) Form 990 (2016) Page 8 Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) (A) (B) (C) (D) (E) (F) Name and Title Average P05ition (do not check more Reportable Reportable Estimated hours per than one box, unless person compensation compensation amount of other week (list is both an officer and a from the from related compensation any hours director/trustee) organization (W- organizations from the for related - 3. ,0 I (W- 2/1099- organization and :i organizations :1 3 3 ,0 MISC) related below dotted a :3 ,1 1; 3 organizations line11;. a; I I (18) Charles Blahous 40 00 185,000 0 8,388 Fish and Lillian Smith Chair and Senior Rese 1bSub-Total . . . . . . . . . Total from continuation sheets to Part VII, Section A dTotal (add lines 1b and 1c) . 1,748,281 0 64,417 2 Total number of indIVIduals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organization 37 Yes No 3 Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If ?Yes, complete Schedule .7 for such indiwduai? . 3 No 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 for such incliwclual 4 Yes 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or indiVidual for serVIces rendered to the organization7If ?Yes, complete Schedule for such person 5 No Section B. Independent Contractors 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 Tilapia Film LLC Film production 426,628 1188 Court Street Elko, NV 89801 De Meco Gabriel, Software and application 156,000 Canada de Comez 4727 dto 2 development Buenos Aires Capital Federal AR Applied Acoustical SCIences Inc Audio Visual serVIces 112,289 7601 Brandon Woods Baltimore, MD 21226 Coyne Christopher, Speaker and discussmn leader 107,050 10343 Commonwealth Fairfax, VA 22032 2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 4 Form 990 (2016) Form 990 (2016) Statement of Revenue Check if Schedule 0 contains a response or note to any line In this Part Page 9 El (A) (B) (C) (D) Total revenue Related or Unrelated Revenue exempt bu5iness excluded from Function revenue tax under sections revenue 512-514 la Federated campaigns I la I g; Membership dues I 1b I Fundraismg events I 1c I Related organizations I 1d I - (D Government grants (contributions) I la I m? 2 All other contributions, gifts, grants, 2 and Similar amounts not included 1f 29,211,150 v: a; above 5 Noncash contributions included in lines 1a-1f 315,067 (U hTOta .Add llnES 1a-1f . 29,211,150 3, Busmess Code 3 2a Conferences] eVents 611710 254,375 254,375 C135 Publications 511120 5.470 6.470 a All other program serVIce revenue 0 260,845 5 9T0tal.Add lines 2a?2f . 3 Investment income (including diVidends, interest, and other Similar amounts) 581887 58'887 4 Income from investment of tax-exempt bond proceeds 5 Royalties Real (ii) Personal 6a Gross rents Less rental expenses Rental income or (loss) Net rental income or (loss) Securities (ii) Other Gross amount from sales of 826,345 assets other than inventory Less cost or other ba5is and 819,278 sales expenses Gain or (loss) 7,067 Net gain or (loss) . 7,057 7.057 8a Gross income from fundraismg events a) (not including of 3 contributions reported on line 1c) See Part IV, line 18 a Less direct expenses a Net income or (loss) from fundraismg events . . 5 9a Gross income from gaming actIVIties 0 See Part IV, line 19 a Less direct expenses Net income or (loss) from gaming actIVIties 10aGross sales of inventory, less returns and allowances a Less cost of goods sold Net income or (loss) from sales of inventory . . Miscellaneous Revenue Busmess Code 112?Credit card rewards 900099 28?120 28'120 Llsl: rental 900099 155 155 All other revenue eTotal. Add lines 11a?11d 28,275 12 Total revenue. See Instructions 29,566,224 260,845 0 94,229 Form 990 (2016) Form 990 (2016) Page 10 Statement of Functional Expenses Section 501(c)(3) and 501(c)(4) organizations must complete all columns All other organizations must complete column (A) Check if Schedule 0 contains a response or note to an line in this Part IX . . . . Do not include amounts reported on lines 6b, (A) Pro ra(rfi3)serVIce Mana ?rfibnt and (Part Total expenses Expenses general expenses Fundralsmgexpenses 1 Grants and other a55Istance to domestic organizations and 470,153 470,153 domestic governments See Part IV, line 21 2 Grants and other assistance to domestic IndIVIduals See Part 1,913 1,913 IV, line 22 3 Grants and other a55Istance to forEIgn organizations, foreign governments, and forEIgn IndiVIduals See Part IV, line 15 and 16 4 Benefits paid to or for members 5 Compensation of current officers, directors, trustees, and 743,637 620,932 70.594 52.111 key employees 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described In section 4958(c)(3)(B) . . 7 Other salaries and wages 13,069,281 10,910,698 1,243,782 914,801 8 PenSIon plan accruals and contributions (include section 401 and 403(b) employer contributions) 9 Other employee benefits 1,044,065 871,269 99,240 73,556 10 Payroll taxes 950,091 796,143 86,829 67,119 11 Fees for serVIces (non-employees) a Management Legal 28,750 16,043 12,707 57,091 1,907 51,109 4,075 Lobbying Professional fundraising serVIces See Part IV, line 17 Investment management fees 9 Other (If line 119 amount exceeds 10% of line 25, column 5,559,383 5,197,682 204.305 157,396 (A) amount, list line 119 expenses on Schedule 0) 12 and promotion 169,455 158,603 479 10,373 13 Of?ce expenses 887,784 623,441 34,906 229,437 14 Information technology 538,831 392,594 140,887 5,350 15 Royalties 16 Occupancy 1,038,395 976,888 34,676 26,831 17 Travel 1,554,151 1,526,214 25,715 2,222 18 Payments of travel or entertainment expenses for any federal, state, or local public officials 19 Conferences, conventions, and meetings 909,603 899,138 10.461 4 20 Interest 21 Payments to affiliates 22 DepreCIation, depletion, and amortization 397,721 344,375 30.074 23.271 23 Insurance 23,544 147 23,387 10 24 Other expenses Itemlze expenses not covered above (Llst miscellaneous expenses in line 24e If llne 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule a 107,456 102,273 5,056 127 List rental 15,767 5 15,762 Property taxes 15,116 13,089 1,143 884 All other expenses 25 Total functional expenses. Add lines 1 through 24e 27,582,187 23,923,508 2.052.543 1,596,036 26 Joint costs. Complete line only If the organization reported In column (B) Jomt costs from a combined educational campaign and fundraising so ICItation Check here l:l if followmg SOP 98-2 (ASC 958-720) Form 990 (2016) Form 990 (2016) Balance Sheet Page 11 Check If Schedule 0 contaIns a response or note to any lIne In thIs Part IX El (A) (B) BegInnIng of year End of year 1 Cash?non-Interest-bearlng 111709.155 1 10.629.935 2 Savmgs and temporary cash Investments 7,887,801 2 8,991,637 3 Pledges and grants recerable, net 0 3 900,000 4 Accounts recerable, net 230,528 4 134,288 5 Loans and other recerables from current and former of?cers, directors, trustees, key employees, and hIghest compensated employees Complete Part 5 II of Schedule 6 Loans and other recerables from other persons (as de?ned under sectIon 4958(f)(1)), persons descrIbed In sectIon 4958(c)(3)(B), and contrIbutIng employers and sponsorIng organIzatIons of sectIon 501(c)(9) 6 voluntary employees' benefICIary organIzatIons (see InstructIons) Complete an Part II of Schedule 7 Notes and loans recerable, net 7 a InventorIes for sale or use PrepaId expenses and deferred charges 198,676 9 306,400 10a Land, bUIldIngs, and eqUIpment cost or other has Complete Part VI of Schedule 103 31388-176 Less accumulated depreCIatIon 10b 2.724.423 785,033 10c 663,753 11 traded securItIes 1,162,054 11 1,201,533 12 Investments?other securItIes See Part IV, lIne 11 12 13 Investments?program-related See Part IV, lIne 11 13 14 IntangIble assets 14 15 Other assets See Part IV, lIne 11 15 16 Total assets.Add lInes 1 through 15 (must equal lIne 34) 21.973248 16 22.827.547 17 Accounts payable and accrued expenses 1.423.310 17 938.812 18 Grants payable 2,347,856 18 2,505,293 19 Deferred revenue 19 20 Tax-exempt bond IabI ItIes 20 v. 21 Escrow or custodIal account IabI Ity Complete Part IV of Schedule 21 '9 22 Loans and other payables to current and former offIcers, dIrectors, trustees, key employees, hIghest compensated employees, and 1" cc persons Complete Part II of Schedule 22 ?1 23 Secured mortgages and notes payable to unrelated thIrd partIes 23 24 Unsecured notes and loans payable to unrelated thIrd partIes 24 25 Other IabI ItIes (IncludIng federal Income tax, payables to related thIrd partIes, 1.129.092 25 312.338 and other IabI ItIes not Included on lInes 17-24) Complete Part of Schedule 26 Total Iiabilities.Add lInes 17 through 25 4,900,258 26 3,756,443 3 Organizations that follow SFAS 117 (ASC 958), check here and 2 complete lines 27 through 29, and lines 33 and 34. 27 UnrestrIcted net assets 16,752,684 27 18,773,690 8 28 Temporarlly net assets 320,306 28 297,414 29 Permanently net assets 29 ,2 Organizations that do not follow SFAS 117 (ASC 958), 5 check here l:l and complete lines 30 through 34. 30 CapItal stock or trust prInCIpal, or current funds . 30 a; 31 PaId-In or capItal surplus, or land, or eqUIpment fund 31 32 RetaIned earnIngs, endowment, accumulated Income, or other funds 32 33 Total net assets or fund balances 17,072,990 33 19,071,104 2 34 Total IabI ItIes and net assets/fund balances 21,973,248 34 22,827,547 Form 990 (2016) Form 990 (2016) Reconcilliation of Net Assets Page 12 Check If Schedule 0 contaIns a response or note to any lIne In thIs Part XI El 1 Total revenue (must equal Part column (A), lIne 12) 1 29,566,224 2 Total expenses (must equal Part IX, column (A), lIne 25) 2 27,582,187 3 Revenue less expenses Subtract Me 2 from lIne 1 3 1,984,037 4 Net assets or fund balances at begInnIng of year (must equal Part X, lIne 33, column 4 17,072,990 5 Net unrealized gaIns (losses) on Investments 5 14,077 6 Donated serVIces and use of faCIlItIes 6 7 Investment expenses 7 8 PrIor perIod adjustments 8 9 Other changes In net assets or fund balances (explaIn In Schedule 0) 9 0 10 Net assets or fund balances at end of year CombIne lInes 3 through 9 (must equal Part X, lIne 33, column 10 19,071,104 Financial Statements and Reporting Check If Schedule 0 contaIns a response or note to any lIne In thIs Part XII Yes No 1 AccountIng method used to prepare the Form 990 l:l Cash Accrual l:l Other If the organIzatIon changed Its method of accountmg from a prIor year or checked "Other," explaIn In Schedule 0 2a Were the organIzatIon?s fInanCIal statements comleed or reVIewed by an Independent accountant? 2a No If ?Yes,? check a box below to IndIcate whether the fInanCIal statements for the year were complied or reVIewed on a separate ba5Is, consolIdated ba5Is, or both l:l Separate ba5Is l:l ConsolIdated ba5Is l:l Both consolldated and separate ba5Is Were the organIzatIon?s fInanCIal statements audIted by an Independent accountant? 2b Yes If ?Yes,? check a box below to IndIcate whether the fInanCIal statements for the year were audIted on a separate ba5Is, consolldated ba5Is, or both Separate ba5Is l:l ConsolIdated ba5Is l:l Both consolldated and separate ba5Is If "Yes," to lIne 2a or 2b, does the organIzatIon have a commIttee that assumes for overSIght of the audIt, reVIew, or compIIatIon of Its fInanCIal statements and selectIon of an Independent accountant? 2c Yes If the organIzatIon changed eIther Its overSIght process or selectIon process durIng the tax year, explaIn In Schedule 0 3a 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 3a No 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 0 and descrIbe any steps taken to undergo such audIts 3b Form 990 (2016) Additional Data Software ID: Software Version: EIN: 54-1436224 Name: Mercatus Center Inc Form 990 (2016) Form 990, Part Line 4a: Regulatory and Government Studles - Works WIthIn the unlverSIty setting to Improve the state of knowledge about regulatlons and thelr Impact on somety, and about the between transparent and accountable processes and outcomes Form 990, Part Line 4b: Student Programs Support Graduate Students at George Mason UnlverSIty, future scholars and deCISIon?makers to advance and apply a research agenda for understanding Institutions and change Form 990, Part Line 4c: Communications - Improves the effectIveness of Mercatus outreach efforts, raIses Its publIc pro?le, and promotes Its research and Ideas to medIa and opInIon shapers Form 990, Part - 4 Program Service Accomplishments (See the Instructions) (Code (Expenses 2,257,609 Including grants of (Revenue Outreach - Brings education In economIc Ideas to key dECISIon-makers In the pubIIc pollcy process (Code (Expenses 1,114,729 IncludIng grants of (Revenue PubIIc Affalrs - Seeks to Inform alumrII, faculty, and supporters about the efforts of the Center and communicatlon that develops a network of IndIVIduals Interested In IIberty Form 990, Part - 4 Program Service Accomplishments (See the Instructions) (Code (Expenses 282,424 Including grants of (Revenue UniverSIty Research 8L Teaching - Supports academic research and faculty actiwties at George Mason UniverSIty to advance and apply a research agenda For understanding Institutions and change Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 93493050004108I OMB No 1545-0047 SCHEDULE A Public Charity Status and Public Support (Form 990 01' Complete if the organization is a section 501(c)(3) organization or a section 2 0 1 6 990EZ) 4947(a)(1) nonexempt charitable trust. Attach to Form 990 or Form 990-EZ. ot?tlie Tremun Information about Schedule A (Form 990 or 990-EZ) and its instructions is at Open to Pp\ grub:- Kari In?: InSPECtlon Name of the organization Mercatus Center Inc Employer identification number 54-1436224 Reason for Public Charity Status (All organizations must complete this part.) See instructions. The organization is not a private foundation because it is (For lines 1 through 12, Check only one box 1 A church, convention of churches, or assooation of churches described in section A school described in section (Attach Schedule (Form 990 or 2 3 A hospital or a cooperative hospital serVIce organization described in section 4 A medical research organization operated in conjunction With a hospital described in section Enter the hospital's name, City, and state An organization operated for the benefit of a college or univerSIty owned or operated by a governmental unit described in section 170 (Complete Part II) A federal, state, or local government or governmental unit described in section An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section (Complete Part II A community trust described in section 170(b)(1)(A)(vi) (Complete Part II An agricultural research organization described in 170(b)(1)(A)(ix) operated in conjunction With a land-grant college or univerSIty or a non-land grant college of agriculture See instructions Enter the name, City, and state of the college or univerSIty 10 An organization that normally receives (1) more than 331/3% 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 331/3% of its support from gross investment income and unrelated busmess taxable income (less section 511 tax) from busmesses achIred by the organization after June 30, 1975 See section 509(a)(2). (Complete Part 11 An organization organized and operated excluswely to test for public safety See section 509(a)(4). 12 An organization organized and operated excluswely 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 in lines 12a through 12d that describes the type of supporting organization and complete lines 12e, 12f, and 129 Type I. A supporting organization operated, superVIsed, or controlled by its supported organization(s), typically by givmg the supported organization(s) the power to regularly appomt or elect a majority of the directors or trustees of the supporting organization You must complete Part IV, Sections A and B. Type II. A supporting organization superVIsed or controlled in connection With its supported organization(s), by havmg control or management of the supporting organization vested in the same persons that control or manage the supported organization(s) You must complete Part IV, Sections A and C. Type functionally integrated. A supporting organization operated in connection With, and functionally integrated With, its supported organization(s) (see instructions) You must complete Part IV, Sections A, D, and E. Type non-functionally integrated. A supporting organization operated in connection With its supported organization(s) that is not functionally integrated The organization generally must satisfy a distribution reqUIrement and an attentiveness reqUIrement (see instructions) You must complete Part IV, Sections A and D, and Part V. Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type functionally integrated, or Type non-functionally integrated supporting organization Enter the number of supported organizations 9 Prowde the followmg information about the supported organization(s) (i)Name of supported organization Type of (iv) (vi) organization Is the organization listed in Amount of Amount of other (described on lines your governing document? monetary support support (see 1- 10 above (see (see instructions) instructions) instructions)) Yes No Total For Paperwork Reduction Act Notice, see the Instructions for Cat No 11285F Schedule A (Form 990 or 990-EZ) 2016 Form 990 or 990-EZ. Schedule A (Form 990 or 990-EZ) 2016 In. Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, 8, or 9 of Part I or if the organization failed to qualify under Part If the organization fails to qualify under the tests listed below, please complete Part Section A. Public Support Page 2 Calendar year (or fiscal year beginning in) Gifts, grants, contributions, and membership fees received (Do not include any "unusual grant Tax revenues leVIed for the organization's benefit and either paid to or expended on its behalf The value of serVIces or faCIlities Furnished by a governmental unit to the organization Without charge Total. Add lines 1 through 3 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 Public support. Subtract line 5 from line 4 (a)2012 (b)2013 (c)2014 (d)2015 (e)2016 (f)Tota 16,259,316 20,389,569 23,735,983 27,425,836 29,211,150 117,021,854 16,259,316 20,389,569 23,735,983 27,425,836 29,211,150 117,021,854 49,337,731 67,684,123 Section B. Total Support 7 8 Calendar year (or fiscal year beginning in) Amounts from line 4 Gross income from interest, leldendS, payments received on securities loans, rents, royalties and income from Similar sources Net income from unrelated busmess actIVItieS, whether or hot the busmess is regularly carried on Other income Do not include gain or loss from the sale of capital assets (Explain in Part VI Total support. Add lines 7 through 10 (a)2012 (b)2013 (c)2014 (d)2015 (e)2016 (f)Tota 16,259,316 20,389,569 23,735,983 27,425,836 29,211,150 117,021,854 159,120 57,230 7,145 12,141 58,887 294,523 117,316,377 12 Gross receipts from related actIVIties, etc (see instructions) I 12 I 1,088,354 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, checkthisboxandstophere . . . . . . . . . . . . . .. Section C. Computation of Public Support Percentage 14 Public support percentage for 2016 (line 6, column diVided by line 11, column 14 15 Public support percentage for 2015 Schedule A, Part II, line 14 15 153 33 1/3% support test?2016. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box 57 690 0/0 59 320 0/o and stop here. The organization qualifies as a publicly supported organization I 33 1/30/0 support test?2015. 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?lo-facts-and-circumstances test?2016. 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 VI how the organization meets the "facts-and-CIrcumstances" test The organization qualifies as a publicly supported organization El 10%-facts-and-circumstances test?2015. 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 VI how the organization meets the "facts-and-CIrcumstances" test The organization qualifies as a publicly supported organization 13 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions I Schedule A (Form 990 or 990-EZ) 2016 Schedule A (Form 990 or 990-EZ) 2016 Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 10 of Part I or if the organization failed to qualify under Part II. If Page 3 the organization fails to qualify under the tests listed below, please complete Part II.) Section A. Public Support 7a 8 Calendar year (or fiscal year beginning in) Gifts, grants, contributions, and membership fees received (Do not Include any "unusual grants Gross receipts from admi55ioris, merchandise sold or serVIces performed, or faCIlities furnished in any actIVIty that is related to the organization's tax-exempt purpose Gross receipts from actIVIties that are not an unrelated trade or busmess under section 513 Tax revenues lewed for the organization's benefit and Either paid to or expended on Its behalf The value of serVIces or faCIlities furnished by a governmental unit to the organization Without charge Total. Add lines 1 through 5 Amounts included on lines 1, 2, and 3 received from disqualified persons Amounts included on lines 2 and 3 recewed from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year Add lines 7a and 7b Public support. (Subtract line 7c from line 6 (a)2012 (b)2013 (c)2014 (d)2015 (e)2016 (f)Tota Section B. Total Support 9 10a 12 13 14 Calendar year (or fiscal year beginning in) Amounts from line 6 Gross income from interest, diVidends, payments received on securities loans, rents, royalties and income from Similar sources Unrelated busmess taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 Add lines 10a and 10b Net income from unrelated busmess actIVIties not included in line 10b, whether or not the business is regularly carried on Other income Do not include gain or loss from the sale of capital assets (Explain in Part VI Total support. (Add lines 9, 10c, 11, and 12 (a)2012 (b)2013 (c)2014 (d)2015 (e)2016 (f)Tota 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 2016 (line 8, column diVided by line 13, column 15 15 Public support percentage from 2015 Schedule A, Part line 15 15 Section D. Computation of Investment Income Percentage 17 Investment income percentage for 2016 (line 10c, column lelded by line 13, column 17 13 Investment income percentage from 2015 Schedule A, Part line 17 13 19a 331/3?/o support tests?2016. If the organization did not check the box on line 14, and line 15 IS more than 33 and line 17 IS not more than 33 check this box and stop here. The organization qualifies as a publicly supported organization r-E] 33 1/3% support tests?2015. 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 20 not more than 33 check this box and stop here. The organization qualifies as a publicly supported organization Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions Schedule A (Form 990 or 990-EZ) 2016 Schedule A (Form 990 or 990-EZ) 2016 Supporting Organizations (Complete only if you checked a box on line 12 of Part I If you checked 12a of Part I, complete Sections A and If you checked 12b of Part I, complete Sections A and If you checked 12c of Part I, complete Sections A, D, and If you checked 12d of Part I, complete Page 4 Sections A and D, and complete Part V) Section A. All Supporting Organizations the organization's supported organizations listed by name in the organization's governing documents? If ?No, describe in Part VI how the supported organizations are deSIgnated If deSIgnated by class or purpose, describe the desrgnation If historic and continUing relationship, explain Did the organization have any supported organization that does not have an IRS determination of status under section 509 1) or If "Yes, explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2) Did the organization have a supported organization described in section 501(c)(4), (5), or If ?Yes," answer and below 3a Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)7 If ?Yes, describe in Part VI when and how the organization made the determination 3b Did the organization ensure that all support to such organizations was used excluswely for section 170(c)(2)(B) purposes? If ?Yes, explain in Part VI what controls the organization put in place to ensure such use 3c Was any supported organization not organized in the United States ("foreign supported organization")? If "Yes? and if you checked 12a or 12b in Part I, answer and below Did the organization have ultimate control and discretion in deCIding whether to make grants to the foreign supported organization? If "Yes,? describe in Part VI how the organization had such control and discretion despite being controlled or superwsed by or in connection With its supported organizations 4b Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)7 If "Yes,? explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used excluswely for section 1 purposes 4c Did the organization add, substitute, or remove any supported organizations during the tax year? If "Yes, answer and below (if applicable) Also, prowde detail in Part VI, including the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, the authority under the organization '5 organiZing document authorizmg such action, and (iv) how the action was accomplished (such as by 5a amendment to the organizmg document) Type I or Type 11 only. Was any added or substituted supported organization part of a class already deSIgnated in the organization?s organizmg document? 5b Substitutions only. Was the substitution the result of an event beyond the organization's control? 5c Did the organization prowde support (whether in the form of grants or the prowsion of serVIces or faCIlities) to anyone other than its supported organizations, (ii) that are part of the charitable class benefited by one or more of its supported organizations, or other supporting organizations that also support or benefit one or more of the filing organization?s supported organizations? If "Yes,?prowde detail in Part VI. Did the organization prowde a grant, loan, compensation, or other Similar payment to a substantial contributor (defined in section a family member of a substantial contributor, or a 35% controlled entity With regard to a substantial contributor? If ?Yes,? complete Part I of Schedule (Form 990 or 990-EZ) Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 77 If "Yes,? complete Part I of Schedule (Form 990 or 990-EZ) Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or If ?Yes,? prowde detail in Part VI. 9a Did one or more disqualified persons (as defined in line 9a) hold a controlling interest in any entity in which the supporting organization had an interest? If "Yes,?prowde detail in Part VI. 9b Did a disqualified person (as defined in line 9a) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If ?Yes, ?prowde detail in Part VI. 9c Was the organization subject to the excess bu5iness holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type non-functionally integrated supporting organizations)? If "Yes,? answer line 10b below 10a Did the organization have any excess busmess holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess busmess holdings) 10b Schedule A (Form 990 or 990-EZ) 2016 Schedule A (Form 990 or 990-EZ) 2016 Supporting Organizations (continued) Page 5 11 a Has the organization accepted a gift or contribution from any of the followmg persons? A person who directly or indirectly controls, either alone or together With persons described In and below, the governing body of a supported organization? A family member of a person described In above? A 35% controlled entity of a person described In or above? If "Yes? to a, b, or c, prowde detail In Part VI Yes 11a 11b 11c Section B. Type I Supporting Organizations Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appomt or elect at least a majority of the organization's directors or trustees at all times during the tax year? If "No, describe in Part VI how the supported organization(s) effectively operated, superwsed, or controlled the organization ?5 actiVities If the organization had more than one supported organization, describe how the powers to appomt and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, superVIsed, or controlled the supporting organization? If ?Yes, explain In Part VI how prowding such benefit carried out the purposes of the supported organization(s) that operated, superwsed or controlled the supporting organization Yes Section C. Type II Supporting Organizations 1 Were a majority of the organization's directors or trustees during the tax year also a majority of the directors or trustees of each of the organization?s supported organization(s)? If "No, describe in Part VI how control or management of the supporting organization was vested In the same persons that controlled or managed the supported organization(s) Yes Section D. All Type Supporting Organizations Did the organization prOVIde to each of its supported organizations, by the last day of the fifth month of the organization?s tax year, (I) a written notice describing the type and amount of support prowded during the prior tax year, (II) a copy of the Form 990 that was most recently filed as of the date of notification, and copies of the organization?s governing documents in effect on the date of notification, to the extent not preVIously prowded? Were any of the organization?s officers, directors, or trustees either appomted or elected by the supported organization (5) or (ii) serVIng on the governing body of a supported organization? If explain in Part VI how the organization maintained a close and continuous working relationship With the supported organization(s) By reason of the relationship described in (2), did the organization's supported organizations have a Significant v0ice In the organization?s Investment po ICIes and In directing the use of the organization?s Income or assets at all times during the tax year? If ?Yes, describe In Part VI the role the organization?s supported organizations played in this regard Yes 1 Section E. Type Functionally-Integrated Supporting Organizations Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions) a: 0' The organization satisfied the ActIVIties Test Complete line 2 below CI The organization is the parent of each of its supported organizations Complete line 3 below The organization supported a governmental entity Describe in Part VI how you supported a government entity (see Instructions) ActIVIties Test Answer and below. Yes Did substantially all of the organization?s actIVItIes during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responSIve7 If ?Yes," then in Part VI identify those supported organizations and explain how these actIVIties directly furthered their exempt purposes, how the organization was respon5ive to those supported organizations, and how the organization determined that these actiVities constituted substantially all of its actIVities Did the actIVItIes described In constitute actIVIties that, but for the organization's involvement, one or more of the organization?s supported organization(s) would have been engaged in? If ?Yes," explain in Part VI the reasons for the organization ?s pOSition that its supported organization(s) would have engaged in these actiwties but for the organization ?s involvement Parent of Supported Organizations Answer and below. Did the organization have the power to regularly appomt or elect a majority of the officers, directors, or trustees of each of the supported organizations? Prowde details in Part VI. Did the organization exerCIse a substantial degree of direction over the programs and actIVItIes of each of its supported organizations? If ?Yes, describe in Part VI. the role played by the organization in this regard 2a 2b 3a 3b Schedule A (Form 990 or 990-EZ) 2016 Schedule A (Form 990 or 990-EZ) 2016 Type Non-Functionally Integrated 509(a)(3) Supporting Organizations Page 6 1 Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov 20, 1970 See instructions. All other Type non-functionally Integrated supporting organizations must complete Sections A through mthNI-l \l Section A - Adjusted Net Income Net short-term capital gain Recoveries of prior-year distributions Other gross income (see instructions) Add lines 1 through 3 DepreCIation and depletion Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions) Other expenses (see instructions) Adjusted Net Income (subtract lines 5, 6 and 7 from line 4) (A) Prior Year (B) Current Year (optional) \l Section - Minimum Asset Amount Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year) Average value of securities Average cash balances Fair market value of other non-exempt-use assets Total (add lines la, lb, and 1c) Discount claimed for blockage or other factors (explain in detail in Part VI) AchISItion indebtedness applicable to non-exempt use assets Subtract line 2 from line 1d Cash deemed held for exempt use Enter 1-1/2% of line 3 (for greater amount, see instructions) Net value of non-exempt-use assets (subtract line 4 from line 3) Multiply line 5 by 035 Recoveries of prior-year distributions Minimum Asset Amount (add line 7 to line 6) (A) Prior Year (B) Current Year (optional) 1a 1b 1c 1d acumen-h mW-hWNl-l \l Section - Distributable Amount Adjusted net income for prior year (from Section A, line 8, Column A) Enter 85% of line 1 Minimum asset amount for prior year (from Section B, line 8, Column A) Enter greater of line 2 or line 3 Income tax imposed in prior year Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions) Current Year Check here if the current year is the organization?s first as a non-functionally-integrated Type supporting organization (see instructions) Schedule A (Form 990 or 990-EZ) 2016 Schedule A (Form 990 or 990-EZ) 2016 Page 7 Type Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued) Section - Distributions Current Year 1 Amounts paid to supported organizations to accomplish exempt purposes 9 10 Amounts paid to perform actIVIty that directly furthers exempt purposes of supported organizations, in excess of income from actIVIty Administrative expenses paid to accomplish exempt purposes of supported organizations Amounts paid to achIre exempt-use assets Qualified set-a5ide amounts (prior IRS approval reqUIred) Other distributions (describe in Part VI) See instructions Total annual distributions. Add lines 1 through 6 Distributions to attentive supported organizations to which the organization is respon5ive (prowde details in Part VI) See instructions Distributable amount for 2016 from Section C, line 6 Line 8 amount diVided by Line 9 amount Section - Distribution Allocations (see DistribiBtable InStTUCtlons) Excess Pre-2016 Amount for 2016 1 Distributable amount for 2016 from Section C, line 6 2 Underdistributions, if any, for years prior to 2016 (reasonable cause reqUIred--see instructions) 3 Excess distributions carryover, if any, to 2016 From 2013. a From 2014. From 2015. Total of lines 3a through 9 Applied to underdistributions of prior years Applied to 2016 distributable amount Carryover from 2011 not applied (see instructions) Remainder Subtract lines 39, 3h, and 3i from 3f 4 Distributions for 2016 from Section D, line 7 a Applied to underdistributions of prior years Applied to 2016 distributable amount Remainder Subtract lines 4a and 4b from 4 5 Remaining underdistributions for years prior to 2016, if any Subtract lines 39 and 4a from line 2 (if amount greater than zero, see instructions) Remaining underdistributions for 2016 Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions) Excess distributions carryover to 2017. Add lines 3] and 4c Breakdown of line 7 Excess from 2013. 0 Excess from 2014. D. Excess from 2015. Excess from 2016. Schedule A (Form 990 or 990-EZ) (2016) Schedule A (Form 990 or 990-EZ) 2016 Supplemental Information. Prowde the explanations reqUIred by Part II, line 10; Part II, line 17a or 17b; Part line 12; Part IV, Section A, lines 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions). Page 8 Facts And Circumstances Test Crl-nnrluln A [Emu?m non nl? 101R Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - SCHEDULE (Form 990) Department of the Treasun Supplemental Financial Statements Complete if the organization answered "Yes," on Form 990, Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b. Attach to Form 990. OMB No 1545-0047 2016 Open to Public Internal Rexenue semce Information about Schedule (Form 990) and its instructions is at Inspection Name of the organization Mercatus Center Inc Employer identification number 54-1436224 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" on Form 990, Part IV, line 6. 1 Total number at end of year 2 Aggregate value of contributions to (during year) 3 Aggregate value of grants from (during year) Aggregate value at end of year a Donor adVised funds Funds and other accounts 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 excluswe 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 impermi55ible private benefitConservation Easements. Complete if the organization answered "Yes" on Form 990, Part IV, line 7. 1 Purpose(s) of conservation easements held by the organization (check all that apply) l:l Preservation of land for public use (e recreation or education) l:l Preservation of an historically important land area l:l Protection of natural habitat l:l Preservation of a certified historic structure l:l 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 Year a Total number of conservation easements 2a Total acreage restricted by conservation easements 2b Number of conservation easements on a certified historic structure included in 2c Number of conservation easements included in achIred after 8/17/06, and not on a historic 2d structure listed in the National Register 3 Number of conservation easements modified, transferred, released, 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? l:l Yes l:l No 6 Staff and volunteer hours devoted to monitoring, inspecting, handling of Violations, and enforcmg conservation easements during the year 7 Amount of expenses incurred in monitoring, inspecting, handling of Violations, and enforCIng conservation easements during the year 8 Does each conservation easement reported on line 2(d) above satisfy the reqUIrements of section and section l:l Yes l:l No 9 In Part 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 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered "Yes" on 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, pr0Vide, in Part the text of the footnote to its finanCIal statements that describes these items 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, prowde the followmg amounts relating to these items Revenue included on Form 990, Part line 1 (ii)Assets included in Form 990, Part 2 If the organization received or held works of art, historical treasures, or other Similar assets for finanCIal gain, prOVide the followmg amounts reqUIred to be reported under SFAS 116 (ASC 958) relating to these items a Revenue included on Form 990, Part line 1 Assets included in Form 990, Part For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 52283D Schedule (Form 990) 2016 Schedule (Form 990) 2016 Page 2 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued) 3 Usmg the organIzatIon's achISItion, accessmn, and other records, check any of the followmg that are a SignIfIcant use of Its collection Items (check all that apply) a l:l Public exhibitIon l:l Loan or exchange programs l:l Scholarly research Other l:l Preservation for future generations 4 a description of the organIzatiori's collections and explain how they further the organization?s exempt purpose In Part 5 During the year, dId the organization so ICIt or receive donations of art, historical treasures or other assets to be sold to raise funds rather than to be maintaIned as part of the organization?s collection? El Yes El No Escrow and Custodial Arrangements. Complete If the organization answered "Yes" on Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1a Is the organization an agent, trustee, custodian or other Intermediary for contributions or other assets riot Included on Form 990, Part El Yes El No If "Yes," explaIn the arrangement In Part and complete the followmg table Amount Beginning balance 1C AddItIons durIng the year 1d Distributions durIng the year 18 EndIng balance 1f 2a Did the organizatIon Include an amount on Form 990, Part X, line 21, for escrow or custodIal account lIability7 El Yes No If "Yes," explaIn the arrangement In Part Check here If the explanatIon has been prOVIded In Part . . . . . . . . l:l Endowment Funds. Complete If the organIzatIon answered "Yes" on Form 990, Part IV, Ine 10. (a)Current year (b)PrIor year (c)Two years back (d)Three years back (e)Four years back 1a BegInnIng of year balance ContrIbutIons Net Investment earnings, gains, and losses Grants or scholarships Other expendItures for faCIlitIes and programs AdmInistrative expenses 9 End of year balance 2 the estImated percentage of the current year end balance (line lg, column held as Board deSIgnated or quaSI-endowment Permanent endowment TemporarIIy restrIcted endowment The percentages on 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 unrelated organizations . . . . . . . . . . . . . . . . . 3a(i) (ii) related organizations . . . . . . . . . . . . . . . . . 3a(ii) If "Yes" on are the related organIzations Isted as reqUIred on Schedule . . . . . . . . . 3b 4 Describe In Part the Intended uses of the organIzation's endowment funds Land, Buildings, and Equipment. Complete If the or anIzatIon answered 'Yes' on Form 990, Part IV, line 11a. See Form 990, Part X, Me 10. Description of property Cost or other (b)Cost or other (other) (c)Accumulated depreCIatIon (d)Book value (Investment) 1a Land BUIldIngs Leasehold Improvements 20,218 10,820 9,398 (I Equ pment . . . 3,367,958 2,713,603 654,355 Other . Total. Add lines 1a through 1e (Column (cl) must equal Form 990, Part X, column (B), line 10(c)) . . 663,753 Schedule (Form 990) 2016 Schedule (Form 990) 2016 Page 3 Investments?Other Securities. Complete if the organization answered ?Yes' on Form 990, Part IV, line 11b. See Form 990, Part X, line 12. Description of security or category (b)Book (c)Method of valuation (Including name of security) value 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) Total. (Column must equal FONT) 990, Part X, col (B) line 12 Investments?Program Related. Complete if the organization answered ?Yes' on Form 990, Part IV, line 11c. See Form 990, Part X. line 13. Description of investment Book value Method of valuation Cost or end-of-year market value (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column must equal Falm 990, Part X, col (B) line 13) Other Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11d See Form 990, Part X, line 15 Description Book value (1) (2) (3) (4) (5) (6) (7) (8) (9) Total. (Column must equal Form 990, Part X, col (B) line 15Other Liabilities. Complete if the organization answered 'Yes' on Form 990, Part IV, line He or 11f. See Form 990, Part X, line 25. 1_ Description of liability Book value (1) Federal income taxes Gift annUIties 151,703 Due to affiliate 160,635 (3) (4) (5) (6) (7) (8) (9) Total. (Column must equal Form 990, Part X, col (B) line 25) I 312338 2. Liability for uncertain tax p05itions In Part prowde the text of the footnote to the organization's finanCIal statements that reports the organization's liability for uncertain tax p05itions under FIN 48 (ASC 740) Check here if the text of the footnote has been prowded in Part Schedule (Form 990) 2016 Schedule (Form 990) 2016 Page 4 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete If the organIzatIon answered 'Yes' on Form 990, Part IV, Ine 12a. 1 Total revenue, gaIns, and other support per audIted fInanCIal statements . . . . . . . 1 30,748,104 2 Amounts Included on Ine 1 but not on Form 990, Part Ine 12 a Net unrealized gaIns (losses) on Investments . . . . 2a 14,077 Donated serVIces and use 1,167,803 RecoverIes of prIor year grants . . . . . . . . . . . 2c Other (DescrIbe In Part . . . . . . . . . . . . 2d Add Ines 2a through 1,181,880 3 Subtract Ine 2e from Ine 29,566,224 Amounts Included on Form 990, Part Ine 12, but not on Ine 1 3 Investment expenses not Included on Form 990, Part Ine 7b . 4a Other (DescrIbe In Part . . . . . . . . . . . 4b Add Ines Total revenue Add Ines 3 and 4c. (ThIs must equal Form 990, Part I, Ine 29,566,224 Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete If the organIzatIon answered 'Yes' on Form 990, Part IV, Ine 12a. 1 Total expenses and losses per audIted FInanCIal statements . . . . . . . . . . . 1 28,749,990 2 Amounts Included on Ine 1 but not on Form 990, Part IX, Ine 25 a Donated serVIces and use 1,167,803 PrIor year adjustments . . . . . . . . . . . . 2b Other losses . . . . . . . . . . . . . . . . 2c Other (DescrIbe In Part . . . . . . . . . . . . 2d Add Ines 2a through 1,167,803 3 Subtract Ine 2e from Ine 27,582,187 Amounts Included on Form 990, Part IX, Ine 25, but not on Ine 1: 3 Investment expenses not Included on Form 990, Part Ine 7b . . 4a Other (DescrIbe In Part . . . . . . . . . . . . 4b Add Ines Total expenses Add Ines 3 and 4c. (ThIs must equal Form 990, Part I, Ine 27,582,187 Supplemental Information the descrIptIons reqUIred for Part II, Ines 3, 5, and 9, Part Ines 1a and 4, Part IV, Ines 1b and 2b, Part V, Ine 4, Part X, Ine 2, Part XI, Ines 2d and 4b, and Part XII, Ines 2d and 4b Also complete thIs part to prowde any addItIonal Informatlon Return Reference ExplanatIon See AddItIonal Data Table Schedule (Form 990) 2015 Schedule (Form 990) 2015 Page 5 Supplemental Information (continued) Return Reference Explanation Schedule (Form 990) 2016 Additional Data Software ID: Software Version: EIN: 54-1436224 Name: Mercatus Center Inc Supplemental Information Return Reference Explanatlon Part X, LIne 2 Management has evaluated the Center?s tax p05 tlons and concluded that the Center dId not have any uncertaln tax pOSItIons at August 31, 2017 and 2016 Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 934930500041081545-0047 Grants and Other A55istance to Organizations, Governments and Individuals in the United States 2016 Complete if the organization answered "Yes," on Form 990, Part IV, line 21 or 22. Open to Public Department of the Attach to Form_ 990. . Inspection Treasury Information about Schedule I (Form 990) and its instructions is at Internal Revenue SerVIce Name of the organization Employer identification number Mercatus Center Inc 54-1436224 General Information on Grants and Assistance 1 Does the organization maintain records to substantiate the amount of the grants or a55istance, the grantees' eligibility for the grants or a55istance, and the selection criteria used to award the grants or a55IstanceDescribe in Part IV the organization's procedures for monitoring the use of grant funds In the United States Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete If the organization answered "Yes" on Form 990, Part IV, line 21, for any moment that received more than $5,000 Part II can be duplicated If additional space Is needed Name and address of EIN IRC section Amount of cash Amount of non- Method of valuation (9) Description of Purpose of grant organization if applicable grant cash (book, FMV, appraisal, non-cash a55istance or a55istance or government aSSIstance other) 2 Enter total number of section 501(c)(3) and government organizations listed In the line 1 table . . 3 Enter total number of other organizations listed In the line 1 table . . For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50055P Schedule I (Form 990) 2016 Schedule I (Form 990) 2016 Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" on Form 990, Part IV, line 22 Part can be duplicated if additional space IS needed Page 2 Type of grant or a55istance Number of moments Amount of cash grant Amount of non-cash a55istance Method of valuation (book, FMV, appraisal, other) Description of non-cash a55istance Supplemental Information. Prowde the information reqUIred in Part I, line 2, Part column and any other additional information. Return Reference Explanation Part 1, Line 2 Faculty awards are given to those Center faculty members who are in good standing at the George Mason Univer5ity and who actively engage in original research Research are expected to result in scholarly Journal articles, book manuscripts, monographs, or other quality products Schedule I, Part 1, Line 1(h) Grants were given to the George Mason UniverSIty For the Followmg purposes to prowde general support for the mi55ion and actIVIties of the George Mason University Foundation, to prowde support For research by faculty members in economics, to support student tUItion in the Department of Economics, to support student stipends in the Department of Economics, and for summer support and course buyouts for faculty members in economics Schedule I (Form 990) 2016 Additional Data Software ID: Software Version: EIN: Name: 54-1436224 Mercatus Center Inc Form 990,Schedule I, Part II, Grants and Other Assistance to Domestic Organizations and Domestic Governments. Name and address of EIN IRC sectlon Amount of cash Amount of non- Method of valuatlon of Purpose of grant organlzatlon If grant cash (book, FMV, appraisal, non-cash aSSIstance or aSSIstance or government aSSIstance other) George Mason UnlverSIty 54-0836354 501(c)(3) 375,130 0 General support-See 4400 UnlverSIty Drlve Part IV Falrfax,VA 22030 George Mason UnlverSIty 54-1603842 501(c)(3) 80,000 0 General support-See Foundatlon Part IV 4400 UnlverSIty Drlve MSN 1A3 Falrfax,VA 220304444 Form 990,Schedule I, Part II, Grants and Other Assistance to Domestic Organizations and Domestic Governments. Name and address of EIN IRC sectlon Amount of cash Amount of non- Method of valuatlon of Purpose of grant organlzatlon If grant cash (book, FMV, appraisal, non-cash a55Istance or a55Istance or government a55Istance other) Atlas Network 94-2676384 501(c)(3) 10,000 0 Faculty and Student 1201 Street 2nd Floor DC 20005 Support Iefile GRAPHIC print - DO NOT PROCESS IAS Filed Data - DLN: 93493050004108I Schedule Compensation Information 0MB No 1545-0047 (Form 990) For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees Complete if the organization answered "Yes" on Form 990, Pait IV, line 23. Attach to Form 990. Department of the Information about Schedule (Form 990) and its instructions is at Open to PUbllC Treasury Ins-ection Internal Revenue SerVIce Name of the organization Employer identification number Mercatus CenterInc 54-1436224 Questions Regarding Compensation Yes No 1a Check the appropiate box(es) ifthe organization prowded any of the followmg to or for a person listed on Form 990, Part VII, Section A, line 1a Complete Part to prowde any relevant information regarding these items First-class or charter travel Housmg allowance or reSIdence for personal use l? Travel for companions l? Payments for busmess use of personal reSIdence Tax idemnification and gross?up payments Health or club dues or initiation fees l? Discretionary spending account l? Personal serVIces (e maid, chauffeur, chef) Ifany ofthe boxes in line la are checked, did the organization follow a written policy regarding payment or reimbursement or prOVI5ion ofall ofthe expenses described above? If"No," complete Part to explain 1b 2 Did the organization reqUIre substantiation prior to reimbursmg or allowmg expenses incurred by all directors, trustees, officers, including the CEO/Executive Director, regarding the items checked in line 1a? 2 3 Indicate which, if any, of the followmg 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, but explain in Part Compensation committee l? Written employment contract l? Independent compensation consultant Compensation survey or study Form 990 of other organizations Approval by the board or compensation committee 4 During the year, did any person listed on Form 990, Part VII, Section A, line la With respect to the filing organization or a related organization a Recewe a severance payment or change?of?control payment? 4a No PartICIpate in, or recewe payment from, a supplemental nonqualified retirement plan? 4b No PartICIpate in, or receive payment from, an eqUIty-based compensation arrangement? 4c No If"Yes" to any of lines 4a?c, list the persons and prowde the applicable amounts for each item in Part Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9. 5 For persons listed on Form 990, Part VII, Section A, line la, did the organization pay or accrue any compensation contingent on the revenues of a The organization? 5a No Any related organization? 5b No If"Yes," on line 5a or 5b, describe in Part 6 For persons listed on Form 990, Part VII, Section A, line la, did the organization pay or accrue any compensation contingent on the net earnings of a The organization? 6a No Any related organization? 6b No If"Yes," on line 6a or 6b, describe in Part 7 For persons listed on Form 990, Part VII, Section A, line la, did the organization prowde any non-fixed payments not described in lines 5 and 6? If"Yes," describe in Part 7 No 8 Were any amounts reported on Form 990, Part VII, paid or accured pursuant to a contract that was subject to the initial contract exception described in Regulations section 53 If"Yes," describe in Part 8 No 9 If"Yes" on line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53 9 For Reduction Act Notice, see the Instructions for Form 990. at 50 5 3T Schedule (Form 990) 2015 ScheduleJ (Form 990) 2015 Page 2 Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed. For each indiVidual whose compensation must be reported on Schedule J, report compensation from the organization on row and from related organizations, described in the instructions, on row (ii) Do not list any ihdiViduals that are not listed on Form 990, Part VII Note.The sum ofcolumns 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 (A) Name and Title (B) Breakdown of and/or 1099-MISC compensation (C) Retirement and (D) Nontaxable (E) Total ofcolumns (F) Compensation in (H) (In) other deferred benefits column(B) reported (I) com Bonus 8i incentive Other reportable compensation as deferred on prior compensation compensation Form 990 1 Daniel 187,500 ExecutiveDirector I (iiJennifer Zambone 151,250 27,500 0 0 5,325 134,075 0 Secretary, VP of Operations (iiVeronique De Rugy 192,500 71,250 0 0 6,215 269,965 0 Senior Research Fellow (iiStorr 1581750 70,000 0 0 6,458 245,208 0 Senior Director of Academic and Stud (iiJason Fichtner 166,250 20,000 0 0 6,361 192,611 0 Senior Research Fellow (iiPatrick McLaughlin 182,500 5,000 0 0 5,293 192,793 0 Director of the Program for Economic (iiCharles Blahous 185,000 Fish and Lillian Smith I I Chaira (iiSchedule (Form 990) 2015 ScheduleJ(F0rm990)2015 Page3 Supplemental Information Prowde the Information, explanation, or descriptions reqLJIred for Part 1, lines 1aand for Part II Also complete this part for any additional information Return Reference Explanation Schedule (Form 990) 2015 Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - SCHEDULEM (Form 990) Department of the Treasun Internal Rex enue Sen ice Noncash Contributions >Complete if the organizations answered "Yes" on Form 990, Part IV, lines 29 or 30. Attach to Form 990. hInformation about Schedule (Form 990) and its instructions is at OMB No 1545-0047 2016 Open to Public Inspection Name of the organization Mercatus Center Inc Types of Property 30a During the year, did the organization receive by contribution any property reported in Part I, lines 1 through 28, that 31 32a 33 Employer identification number Art?Works of art Art?Historical treasures Art?Fractional interests Books and publications Clothing and household goods . . . . Cars and other vehicles Boats and planes . Intellectual property Securities?Publicly traded Securities?Closely held stock . Securities?Partnership, LLC, or trust interests . Securities?Miscellaneous . Qualified conservation contribution?Historic structures . Qualified conservation contribution?Other Real estate?ReSIdential Real estate?CommerCIal Real estate?Other Collectibles Food inventory Drugs and medical supplies TaXIdermy Historical artifacts SCIentific speCImens Archeological artifacts Otherh Otherh Otherr(?) Otherh 54-1436224 (C) Check if Number of contributions or Noncash contribution Method of determining applicable items contributed amounts reported on noncash contribution amounts Form 990, Part line 19 10 315,067 Fair market value Number of Forms 8283 recalved by the organization during the tax year for contributions for which the organization completed Form 8283, Part IV, Donee Acknowledgement it must hold for at least three years from the date of the initial contribution, and which is not reqUIred to be used for exempt purposes for the entire holding period? . If "Yes," describe the arrangement in Part II Does the organization have a gift acceptance policy that reqUIres the rewew of any non-standard contributions? Does the organization hire or use third contributions? If "Yes," describe in Part II If the organization did not report an amount in column for a type of property for which column is checked, describe in Part II 29 parties or related organizations to solidt, process, or sell noncash Yes For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 51227] Schedule (Form 990) (2016) Schedule Form 990) (2016) Page 2 Supplemental Information. Prowde the Information reqUIred by Part I, IInes 30b, 32b, and 33, and whether the organlzatIon IS In Part I, column the number of contrIbutIons, the number of Items recered, or a combInatIon of both. Also complete thIs part for any addItIonaI InformatIon. Return Reference ExplanatIon Schedule (Form 990} {2016) Iefile GRAPHIC print - DO NOT PROCESS As Filed Data - SCHEDULE 0 (Form 990 or 990- El) Department of the Trensun 1 . OMB No 1545-0047 Supplemental Information to Form 990 or 990-EZ Complete to provide information for responses to specific questions on 2 0 1 6 Form 990 or 990-EZ or to provide any additional information. Attach to Form 990 or 990-EZ. Information about Schedule 0 (Form 990 or 990-EZ) and its instructions is at Open ?30 PUbliC Inspection A Name of the organization Mercatus Center Inc 990 Schedule 0, Supplemental Information Employer identification number 54-1436224 Return Reference Explanation Part VI, Section A, line 2 Form 990, Charles Koch is Chairman and CEO of Koch Industries, Inc Brian Hooks is the PreSIdent of the Charles Koch Foundation 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, A draft of the Form 990 is prepared by the independent accountants and prOVIded to the Chairman of the Board for reVIew prior to Part VI, filing Section B, line 11b 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, Conflicts and potential conflicts of interest are described in the Center's Employee Manua Part VI, I, which is distributed to all employees Disclosure is reqUIred contemporaneously With an Section B, potential conflicts and employees are regularly reminded of the obligation line 120 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, Officer compensation Is set annually by a vote of the Executive Committee of the Board of Part VI, Directors De0i5ions are documented by the Executive Committee and provrded to the organiz Section B, ation The committee conSIders employee performance, their knowledge of non-profit practic line 15 es. and comparability data 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, The Organization's makes Its flnanCIaI statements and governing documents available upon Part VI, equest to those deemed to have a bona flde busmess purpose advances the exempt purp Section C, ose of the organization line 19 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, General Contract Servrces Program serVIce expenses 608,853 Management and general expens Part IX, IIne es 150,687 Fundralsmg expenses 72,453 Total expenses 831,993 Honorarla, Fellowships, 11g Awards Program serVIce expenses 3,366,094 Management and general expenses 23 Fundrarsr ng expenses 40,018 Total expenses 3,406,135 Photography, Production, Program ser Vlce expenses 546,047 Management and general expenses 2 Fundralsmg expenses 3,458 Tota expenses 549,507 Temporary help Program serVIce expenses 676,688 Management and gener al expenses 53,593 Fundralsmg expenses 41,467 Total expenses 771,748 990 Schedule 0, Supplemental Information Return Explanation Reference Form 990, The Center's Board of Directors assumes responSIbility for over5ight of the audit, includi Part XII, Line ng selection of independent accountants This process is con3istent With prior years 20