Iefile GRAPHIC print -- DO NOT PROCESS IAs Filed Data -- Form990 Department of the Treasury lntemal Revenue Seniice A For the 2012 calendar year, or tax year beginning 01-01-2012 Check if applicable Address change Name change Initial return Terminated Amended return Application pending Return of Organization Exempt From Income Tax 0 MB No 1545-0047 Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) 1 2 Open to Public I-The organization may have to use a copy ofthis return to satisfy state reporting requirements Inspection 2012, and ending 12-31-2012 Name of organization NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC Doing Business As Employer identification number 94-0707299 Number and street (or 0 box if mail is not delivered to street address) Room/suite 53 CENTURY BOULEVARD Suite 250 City or town, state or country, and ZIP 4 NASHVILLE, TN 372143682 Telephone number (615)872-5800 Gross receipts 112,225,672 Name and address of principal officer DONALDA DANNER 1201 ST NWSUITE 200 20004 H(a) Is this a group return for affiliates? H(b) Are all affiliates inc|uded7|_ YES N0 I Tax--exem pt status If"No," attach a list (see instructions) 501(c)(3) I7 501(c)(6) (insert no) 4947(a)(1) or I-- 527 Website: It FIB CO H(c) Group exemption number Ir Form of organization '7 Corporation Trust Association Other Year of formation 1949 State of legal domicile CA Summary 1 Briefly describe the organization's mission or most significant activities NATIONAL FEDERATION OF INDEPENDENT MISSION IS TO PROMOTE AND PROTECT THE RIGHTS OF ITS MEMBERS TO OWN, OPERATE AND GROWTHEIR BUSINESSES 2 Check this box ifthe organization discontinued its operations or disposed of more than 25% ofits net assets L5 3 Number ofvoting members ofthe governing body (Part VI, line 1a) 3 14 2 4 Number ofindependent voting members of the governing body (Part VI, line lb) 4 13 5 Total number ofindividuals employed in calendar year 2012 (Part V, line 2a) 5 1,132 6 Total number ofvolunteers (estimate if necessary) 6 0 7aTota| unrelated business revenue from Part column (C), line 12 7a 2,715,041 Net unrelated business taxableincome from Form 34 7b 509,833 Prior Year Current Year 8 Contributions and grants 1h) 7,328,212 8,996,525 9 Program service revenue (Part 2g) 82,926,006 86,461,001 10 Investmentincome (Part 3,4,and 7d 1,420,513 2,094,525 11 5,6d,8c,9c,10c,and11e) 3,675,324 5,493,445 12 Total revenue--add lines 8 through 11 (must equal Part column (A), line 12) 95,350,055 103,045,496 13 Grants and similar amounts paid (PartIX,co|umn 1-3) 1,069,644 1,168,807 14 Benefits paid to orfor members (Part IX, column (A), line 4) 0 0 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5.10) 62,453,472 69,843,369 16a Professionalfundraising fees (PartIX,co|umn lle) 1,625,150 1,636,720 Total fundraising expenses (Part column (D), line 25) F-0 17 25,401,093 27,698,695 18 Totalexpenses Add lines 13-17 (must 90,549,359 100,347,591 19 Revenue less expenses Subtract line 18 from line 12 4,800,696 2,697,905 3E Beginning of Current End of Year fig Year 33 20 Totalassets (PartX,|ine 16) 39,488,068 43,169,009 3'3 21 Totalliabilities (PartX,|ine 26) 90,094,178 90,943,940 22 Net assets orfund balances Subtract line 21 from line 20 -50,606,110 -47,774,931 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 |2013--05--13 Sign Signature of officer Date Here JEFF SMITH TREASURER Type or print name and title Print/Type preparer's name Preparer's signature Date Check If PTIN 2013'05'13 se|f--emp|oyed al Finn's name KPMG LLP Finn's EIN Preparer Use Firm's address Ii-401 Commerce Street Suite 1000 Phone no (615) 244-1602 Nashville, TN 37219 May the IRS discuss this return with the preparer shown above? (see instructions) For Paperwork Reduction Act Notice, see the separate instructions. I_Yes Cat No 11282Y Form 990(2012) Form 99o(2o12) Page2 Statement of Program Service Accomplishments CheckifSchedu|eO containsaresponse to any question in this . . . . . . . . . . . . . . 1 Briefly describe the organization's mission The purposes for which this corporation is organized are 1 To promote the economic, financial and political welfare ofits members, to elevate the prestige and standing of the independent small business men in his community, to organize the independent or small business men into an association to the end that his voice may be heard effectively in local, state, and national affairs affecting small business 2 To preserve, protect, promote and develop the American system of private enterprise by promoting and developing laws and regulations helpful and beneficial to, and for the preservation of, small business 3 To conduct polls among its members on matters ofimportance concerning and affecting small business and its problems, and to collect, compile and disseminate information over the air and through the press relating thereto to its members and the general public 4 To expose and resist corruption in government and to secure honesty, efficiency and economy in national, state, a 2 Did the organization undertake any significant program services during the year which were not listed on thepriorForm990or990-EZIf"Yes," describe these new services on Schedule 0 3 Did the organization cease conducting, or make significant changes in how it conducts, any program 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 ofgrants and allocations to others, the total expenses, and revenue, ifany, for each program service reported 4a (Code (Expenses including grants of 0 (Revenue 0 NFIB IS A NONPARTISAN ADVOCACY ORGANIZATION THAT REPRESENTS SEVERAL HUNDRED THOUSAND SMALL AND INDEPENDENT BUSINESSES IN ALL FIFTY STATES NFIB LOBBIES ON BEHALF OF SMALL AND INDEPENDENT BUSINESS AT THE FEDERAL LEVEL AND IN ALL FIFTY STATES THROUGH ITS COMMUNICATION ACTIVITIES, NFIB ALSO PROVIDES ITS MEMBERS, ELECTED OFFICIALS, NEWS MEDIA AND THE GENERAL POPULATION WITH INFORMATION REGARDING THE IMPORTANCE OF SMALL AND INDEPENDENT BUSINESS AND THE VALUE OF THE FREE ENTERPRISE SYSTEM 4b (Code (Expenses including grants of (Revenue 44; (Code (Expenses including grants of (Revenue 4d Other program services (Describe in Schedule 0 (Expenses including grants of$ (Revenue 4e Total program service expenses Ir Form 990 (20 12) Form 990 (201220a Part HIE Page 3 Part IV 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," No completeScheduleA 1 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? 2 Yes Did the organization engage in direct or indirect political campaign activities on behalf ofor in opposition to Yes candidates for public office? If "Yes,"complete Schedule C, Part Section 501(c)(3) organizations. Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year? If "Yes,"complete Schedule C, Part the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes,"complete Schedule C, Yes 5 Did the organization maintain any donor advised funds or any similarfunds or accounts for which donors have the right to provide advice on the distribution or investment ofamounts in such funds or accounts? If "Yes,"complete Schedule D, Part I 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 ofworks ofart, 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 provide credit counseling, debt management, credit repair, or debt negotiation services? If "Yes,"complete Schedule D, Part 9 0 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, 10 No permanent endowments, or quasi-endowments? If "Yes," complete Schedule D, Part Ifthe organization's answerto any ofthe following 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 10? If "Yes," complete Schedule D, Part VI 113 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 VIIE 11-5 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 11? 0 Did the organization report an amount for other assets in Part X, line 15 that is 5% or more ofits total assets reported in Part X, line 167 If "Yes,"complete Schedule D, Part IXE . . . . . . . 11d es Did the organization report an amount for other liabilities in Part X, line 25? If "Yes,"complete Schedule D, PartXE 11e Yes Did the organization's separate or consolidated financial statements for the tax year include a footnote that Yes addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes,"complete Schedule D, PartXE Did the organization obtain separate, independent audited financial statements for the tax year? If "Yes," complete Schedule D, Parts XI and XII 123 N0 Was the organization included in consolidated, independent audited financial statements for the tax year? If 12b Yes "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 ScheduleE 13 No Did the organization maintain an office, employees, or agents outside ofthe United States? 14a No Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, investment, and program service activities outside the United States, or aggregate foreign investments valued at $100,000 or more? If "Yes/complete Schedule F, Parts I and IV . 14b N0 Did the organization report on Part IX, column (A), line 3, more than $5,000 ofgrants or assistance to any organization or entity located outside the nited States? If "Yes," complete Schedulel-', Parts II and IV 15 0 Did the organization report on Part IX, column (A), line 3, more than $5,000 ofaggregate grants or assistance to individuals located outside the United States? If "Yes,"complete Schedulel-', Parts and IV . 15 0 Did the organization report a total of more than $15,000 ofexpenses for professional fundraising services on Part 17 Yes IX, column (A), lines 6 and 11e7 If "Yes," complete Schedule G, Part I (see instructions) Did the organization report more than $15,000 total offundraising event gross income and contributions on Part lines 1c and 8a? If "Yes/complete Schedule G, Part II 13 0 Did the organization report more than $15,000 ofgross income from gaming activities on Part line 9a? If 19 No "Yes, complete Schedule G, Part Did the organization operate one or more hospital facilities? If "Yes,"complete ScheduleH 20a No If"Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? 20b Form 990 (2012) Form 990 (2012Part II IV Part I Page 4 Part IV Checklist of Required Schedules (continued) Did the organization report more than $5,000 ofgrants and other assistance to any government or organization in 21 Yes the United States on Part IX, column (A), line 1? If "Yes/'complete Schedule I, Parts I and II Did the organization report more than $5,000 ofgrants and other assistance to individuals in the United States 22 on Part IX, column (A), line 2? If "Yes/'complete Schedule I, Parts I and 0 Did the organization answer "Yes" to Part VII, Section A, line 3, 4, or 5 about compensation ofthe organization's current and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," 23 es complete Schedule] . Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as ofthe last day ofthe year, that was issued after December 31, 2002? If "Yes," answer lines 24b through 24d and complete Schedule K. If "No, go to line 25 . . . 24a 0 Did the organization invest any proceeds oftax-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" issuerfor bonds outstanding at any time during the year? 24d Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If "Yes," complete Schedule L, Part I 253 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 ofthe organization's prior Forms 990 or If 25h "Yes, complete Schedule L, Part I Was a loan to or by a current or former officer, director, trustee, key employee, highest compensated employee, or disqualified person outstanding as ofthe end ofthe organization's tax year? If "Yes/complete Schedule L, 25 No Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family 27 N0 member of any ofthese persons? If "Yes," complete Schedule L, Part Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions) A current or former officer, director, trustee, or key employee? If "Yes/complete Schedule L, Part 28a No A family member ofa current or former officer, director, trustee, or key employee? If "Yes," complete Schedule L, Part I . 23b 0 An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or direct or indirect owner? If "Yes," complete Schedule L, Part IV . 23C 0 Did the organization receive more than $25,000 in non-cash contributions? If "Yes,"complete ScheduleM . 29 No Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If "Yes/'complete ScheduleM 30 No Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes/complete Schedule N, No 31 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete Schedule N, Part II 32 0 Did the organization own 100% ofan entity disregarded as separate from the organization under Regulations sections 301 7701-2 and 301 7701-3? If "Yes,"complete Schedule R, PartI 33 0 Was the organization related to any tax-exempt or taxable entity? If "Yes,"complete Schedule R, Part II, or Il/, Yes and Part V, line 1 . . 34 Did the organization have a controlled entity within the meaning ofsection 512(b)(13)? 35a Yes If'Yes'to line 35a, did the organization receive any payment from or engage in any transaction with a controlled 35b entity within the meaning of section 5 12(b)(13)? If "Yes," complete Schedule R, Part l.'ne2 es 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 35 Did the organization conduct more than 5% of its activities through an entity that IS not a related organization ii II No and that is treated as a partnership for federal income tax purposes? If Yes, complete Schedule R, Part VI Did the organization complete Schedule 0 and provide 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 (2012) Form 990(2012) Page5 Statements Regarding Other IRS Filings and Tax Compliance Check IfSchedu|e contalns a response to any questlon In thIs Part . . . . . . . . . . . . . . Yes No 1a Enter the number reported In Box 3 of Form 1096 Enter -0- If not . . 1a 145 Enter the number of Forms W-2G Included In |Ine 1a Enter-0- If not 1b 0 the organlzatlon comply wIth backup wIthho|dIng rules for reportable payments to vendors and reportable . . . . . . . . . . . . . . . . . . 1C Yes 2a Enter the number ofemployees reported on Form W-3, ofWage and Tax Statements, fI|ed for the calendar year wIth or wIthIn the year covered 23 1.132 Ifat least one Is reported on |Ine 2a, dId the organlzatlon fI|e all requlred federal employment tax returns? Note. Ifthe sum of|Ines 1a and 2a Is greater than 250, you may be requlred to e-fI|e (see Instructlons) 2b Yes 3a the organlzatlon have unrelated buslness gross Income of$1,000 or more durlng the year? . . . 3a Yes If"Yes," has It fI|ed a Form 990-T forthIs year? If "No/provide an explanatIon In Schedule any tIme durIng the calendar year, dId the organlzatlon have an Interest In, or a slgnature or other authorlty over, a fInancIa| account In a forelgn country (such as a bank account, securItIes account, or otherfInancIa| account)? 43 N0 If"Yes," enter the name ofthe forelgn country Ir See Instructlons for fI|Ing requlrements for Form TD 90-22 1, Report of Forelgn Bank and FInancIa| Accounts 5a Was the organlzatlon a party to a prohIbIted tax shelter transactlon at any tIme durlng the tax year? . . 5a No any taxable party notIfy the organlzatlon that It was or Is a party to a prohIbIted tax shelter transactlon?' 5b No If"Yes," to |Ine 5a or 5b, dId the organIzatIon fI|e Form 5c 6a Does the organlzatlon have annual gross recelpts that are normally greater than $100,000, and dId the 6a Yes organlzatlon so|IcIt any contrIbutIons that were not tax as charltable contrIbutIons'-' If"Yes," dId the organlzatlon Include wIth every so|IcItatIon an express statement that such contrIbutIons or gIfts 6b Yes 7 Organizations that may receive deductible contributions under section 170(c). a the organIzatIon recelve a payment In excess of$75 made partly as a contrIbutIon and partly for goods and 7a servlces provlded to the payor? If"Yes," dId the organlzatlon notIfy the donor ofthe value ofthe goods or servlces provldedthe organlzatlon sell, exchange, or otherwlse dlspose personal property for whIch It was requlred to If"Yes," Indlcate the number of Forms 8282 fI|ed durlng the year . . . . I 7d I the organlzatlon recelve any funds, dlrectly or Indlrectly, to pay premlums on a personal benefit the organlzatlon, durlng the year, pay premlums, dlrectly or Indlrectly, on a personal benefit contract? . . 7f Ifthe organIzatIon recelved a contrIbutIon ofqua|IfIed Intellectual property, dId the organI2atIon file Form 8899 as Ifthe organIzatIon recelved a contrIbutIon ofcars, boats, alrplanes, or other vehlcles, dId the organIzatIon file a 7h 8 Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. the organlzatlon, or a donor advlsed fund maIntaIned by a sponsorlng organlzatlon, have excess buslness at any tIme durlng the yearSponsoring organizations maintaining donor advised fundsthe organlzatlon make a dIstrIbutIon to a donor, donor advlsor, or related personSection 501(c)(7) organizations. Enter InItIatIon fees and capIta| contrIbutIons Included on Part |Ine 12 . . . 10a Gross recelpts, Included on Form 990, Part |Ine 12, for pub|Ic use ofclub 10b facI|ItIes 11 Section 501(c)(12) organizations. Enter a Gross Income from members or shareholders . . . . . . . . . 11a Gross Income from other sources (Do not net amounts due or paId to other sources agalnst amounts due or recelved from them11b 12a Section 4947(a)(1) non-exempt charitable trusts. Is the organIzatIon fI|Ing Form 990 In |Ieu of Form 1041? 12a If"Yes," enter the amount of tax-exempt Interest recelved or accrued durlng the 12" 13 Section 501(c)(29) qualified nonprofit health insurance issuers. a Is the organlzatlon llcensed to Issue qua|IfIed health plans In more than one state? Note. See the Instructlons for addItIona| Informatlon the organIzatIon must report on Schedule 0 13a Enter the amount of reserves the organIzatIon Is requlred to maIntaIn by the states In whIch the organIzatIon IS llcensed to Issue qua|IfIed health plans 13'' Enterthe amount of reserves on hand . . . . . . . . . . . . 13? 14a the organlzatlon recelve any payments for servlces durlng the tax year"Yes," has It filed a Form 720 to report these payments? If "No,"provIde an explanation In Schedule 0 . . 14b Form 990 (2012) Form 990 (2012) Page 5 Governance, Management, and Disclosure For each "Yes" response to lines 2 through 7b below, and for a "No" response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule 0. See instructions. Check ifSchedu|e 0 contains a response to any question in this Part VI Section A. Governing Body and Management Yes No 1a Enter the number ofvoting members ofthe governing body at the end ofthe tax la 14 year Ifthere are material differences in voting rights among members ofthe governing body, or ifthe governing body delegated broad authority to an executive committee or similar committee, explain in Schedule 0 Enter the number ofvoting members included in line la, above, who are independent 1b 13 2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employeeDid the organization delegate control over management duties customarily performed by or under the direct 3 No supervision of officers, directors or trustees, or key employees to a management company or other person? 4 Did the organization make any significant changes to its governing documents since the prior Form 990 was filed? Yes 5 Did the organization become aware during the year ofa significant diversion of the organization's assets? . 5 No Did the organization have members or stockholders? No 7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one or more members ofthe governing body? 7a No Are any governance decisions ofthe organization reserved to (or subject to approval by) members, stockholders, 7b No or persons other than the governing body? 8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following a The governing body? 8a Yes Each committee with authority to act on behalfof the governing body? 8b Yes 9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization's mailing address? If "Yes/provide the names and addresses in Schedule Section B. Policies (This Section requests information about policies not required by the Internal Revenue Code.) Yes No 10a Did the organization have local chapters, branches, or affiliates? 10a No If"Yes," did the organization have written policies and procedures governing the activities ofsuch chapters, affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 10'' 11a Has the organization provided a complete copy ofthis Form 990 to all members ofits governing body before filing the form? 11a N0 Describe in Schedule 0 the process, ifany, used by the organization to review this Form 990 12a Did the organization have a written conflict of interest policy? If "No,"go to line 13 12a Yes Were officers, directors, or trustees, and key employees required to disclose annually interests that could give rise to conflicts? 12b Yes Did 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 Did the organization have a written whistleblower policy? 13 Yes 14 Did the organization have a written document retention and destruction policy? 14 Yes 15 Did the process for determining compensation ofthe following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision? a The organization's CEO, Executive Director, or top management official 15a Yes Other officers or key employees of the organization 15b Yes If"Yes" to line 15a or 15b, describe the process in Schedule 0 (see instructions) 16a Did the organization invest in, contribute assets to, or participate in a Joint venture or similar arrangement with a taxable entity during the year? 16a No If"Yes," did the organization follow a written policy or procedure requiring the organization to evaluate its participation in Joint venture arrangements under applicable federal tax law, and take steps to safeguard the organization's exempt status with respect to such arrangements? 16b Section C. Disclosure 17 18 19 20 List the States with which a copy ofthis Form 990 IS required to be fi|edIrCA FL Section 6104 requires an organization to make its Form 1023 (or 1024 ifapplicable), 990, and 990-T (501(c) (3)s only) available for public inspection Indicate how you made these available Check all that apply Own website Another's website I7 Upon request I-- Other (explain in Schedule 0) Describe in Schedule 0 whether (and ifso, how), the organization made its governing documents, conflict of interest policy, and financial statements available to the public during the tax year State the name, physical address, and telephone number ofthe person who possesses the books and records of the organization FJEFF SMITH 53 CENTURY BLVD SUITE 250 NASHVILLE, TN (615) 872-5800 Form 990 (2012) Form 99o(2o12) Page7 Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors Check IfSchedu|e 0 contains a response to any question In this Part VII . . . . . . . . . . . . . . J7 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 I List all ofthe organIzatIon's current officers, directors, trustees (whether individuals or organizations), regardless ofamount ofcompensation Enter-O- In columns (D), (E), and (F) If no compensation was paid I List all ofthe organIzatIon's current key employees, Ifany See instructions for definition of "key employee I List the organization's five current highest compensated employees (other than an officer, director, trustee or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations I List all ofthe 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 I List all ofthe organIzatIon's former directors or trustees that received, in the capacity as a former director or trustee ofthe organization, more than $10,000 of reportable compensation from the organization and any related organizations List persons In the following order individual trustees or directors, institutional trustees, officers, key employees, highest compensated employees, and former such persons 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 Position (do not check Reportable Reportable Estimated hours per more than one box, unless compensation compensation amount of week (llst person IS both an officer from the from related other any hours and a director/trustee) organization organizations compensation for related I I _n (W- 2/1099- (W- 2/1099- from the organizations 3 3 .3 3.13 9 MISC) MISC) organization below .13. EE and related dotted llne) 1% i: 3 organizations 5' 2 ri(1) DAVID GUERNSEY 1 0 34,000 0 203 Chainnan 1 0 (2) TIM CLAYTON 1 0 17,200 0 203 Director 1 0 (3) RUTH LOPEZ NOVODOR 1 0 16,200 0 203 Director 1 0 (4) A JUNE LENNON 1 0 22,000 0 135 Director 1 0 (5) THOMAS MICHAEL NOBIS 1 0 22,000 0 203 Director 1 0 (6) MARIA COAKLEY DAVID 1 0 22,000 0 203 Director 1 0 (7) NEVIN GROCE 1 0 22,000 0 203 Director 1 0 (8) BETTY NEIGHBORS 1 0 17,751 0 203 Director 1 0 (9) KURT SUMMERS 1 0 22,297 0 203 Director 1 0 (10) JAMES HERR 1 0 17,200 0 203 Director 1 0 (11) BRUCE 1 0 17,200 0 203 Director 1 0 (12) STEVE SCHRAMM 1 0 17,200 0 203 Director 1 0 (13) JEFF READY 1 0 17,200 0 203 Director 1 0 (14) DONALD A DANNER 36 0 750,626 0 29,789 President/CEO 4 0 (15) MARY BLASINSKY 36 0 308,784 0 33,767 SVP/Secretary 4 0 (16) TAMMY BOEHMS 36 0 393,353 0 23,429 4 0 (17) JEFF SMITH 36 0 184,138 0 17,936 Treasurer 4 0 Form 990 (2012) Form 990 (2012) Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued) Page 8 (A) (B) (C) (D) (E) (F) Name and Title Average Position (do not check Reportable Reportable Estimated hours per more 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 C, 3 3 I MI _n (W- 2/1099- (W- 2/1099- organization organizations 3 9 3 3.1: 9 MISC) MISC) and related below 1&3 organizations dotted line(18) JOHN CASELLA 40 0 352,345 35,757 SVP Sales 0 0 (19) SUSAN ECKERLY 37 0 325,372 30,024 SVP Public Policy 3 0 (20) STEPHEN WOODS 40 0 337,564 33,013 SVP State Public Policy 0 0 (21) MARK GARZONE 40 0 353,940 39,155 SVP Marketing 0 0 (22) JEAN CARD 40 0 273,698 27,095 VP Media Communications 0 0 (23) MARK 40 0 268,115 21,236 Field Sales Rep 0 0 (24) BEVERLY SHEA 40 0 255,459 25,092 VP Development 0 0 (25) PAMELA CONNOR 40 0 255,015 37,530 VP Human Resources 0 0 Total from continuation sheets to Part VII, Section A . . . . Total (add lines 4.356.158 357,504 2 Total number of individuals (including but not limited to those listed above) who received more than $100,000 of reportable compensation from the organizationIr162 Yes No 3 Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line la? If "Yes/complete ScheduleJforsuch Individual . . . . . . . . . . . . . . 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/'comp/ete Schedu/eJforsuch Yes 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If ScheduleJforsuch person . . . . . . . . No Section B. Independent Contractors 1 Complete this table for yourfive 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 BRABENDERCOX LLC 1218 GRANDVIEW AVE PITTSBURGH PA 15211 ADVERTISING 1,637,723 IMAGINATION PUBLISHING LLC 600 FULTON ST STE 600 CHICAGO IL60661 PUBLISHING 1,620,814 NATIONAL CAPITAL TELESERVICES LLC 300 5TH STREET NE WASHINGTON DC 20002 TELEMARKETING 1,605,889 TARGET ENTERPRISES 15260 VENTURA BLVD STE 1240 SHERMAN OAKS CA91403 ADVERTISING 1,378,292 CHERNOFF NEWMAN 1411 GERVAIS ST 5TH FLOOR COLUMBIA SC 29201 898,502 2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 ofcompensation from the organization I-23 Form 990 (2012) Form 990(2012) Page9 Statement of Revenue Check ifSchedu|e 0 contains a response to any question in this Part . . . . . . I- (A) (B) (C) (D) Total revenue Related or Unrelated Revenue exempt business excluded from function revenue tax under revenue sections 512, 513, or 514 3 1a Federated campaigns . . 1a 3 Membership dues . . . . 1b i: Fundraising events . . . . 1c Related organizations . . . 1d 472.747 Government grants (contributions) 1e L: All other contributions, gifts, grants, and 1f 8,523,778 15' similar amounts not included above 3 Noncash contributions included in lines .3 1a--1f$ Total. Add lines la-1f 3.995.525 in hr Business Code 2a MEMBERSHIP DUES 541900 86,373,071 86,373,071 REGISTRATION FEE 541990 87,930 87,930 3 5 All other program service revenue Total. Add lines 2a--2f Ir 86,461,001 3 Investment income (including dividends, interest, 756 730 31 570 725 160 and othersimilar amounts) 5* Income from investment of tax--exempt bond proceeds It 0 Real (ii) Personal 6a Gross rents 378.366 [3 Less rental 104,441 expenses Rental income 273,925 0 or(|oss) Net rental income or (loss) 273.925 273.925 Securities (ii) Other 7a Gross amount from sales of 10,413,530 assets other than inventory [3 Less cost or other basis and 9,069,516 6,219 sales expenses Gain or(|oss) 1,344,014 --6,219 Net gain or (loss) 1.337.795 0 1.337.795 38 Gross income from fundraising events (not including 3 5 ofcontributions reported on line 1c) 3-. See PartIV,|ine 18 a II Less direct expenses . . . Net income or (loss) from fundraising events . . h- 0 93 Gross income from gaming activities See Part IV, line 19 a Less direct expenses . . . Net income or (loss) from gaming activities . . 0 10a Gross sales of inventory, less returns and allowances a Less cost ofgoods sold . . Net income or (loss) from sales ofinventory . . 0 Miscellaneous Revenue Business Code INCOME SPONSORSHIP INCOME 541300 233,023 233,023 PERIODICAL ADVERTISING 541000 904509 904509 INCOME All other revenue 222.730 24.936 197.744 Tota|.Add|ines 11a--11d Ir 2,946,480 12 Total revenue. See Instructions p. 103,045,496 86,724,010 2,715,041 4,609,920 Form 990 (2012) Form 990(2012) 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 ifSchedu|e 0 contains a response to any question in this Part not include amounts reported on lines 6b, (A) Prografiflsewlce and Funggaslng 7b! 8b! 9b! and 10b of Part Total expenses expenses general expenses expenses 1 Grants and other assistance to governments and organizations in the United States See Part IV, line 21 1,168,807 2 Grants and other assistance to individuals in the United States See PartIV,|ine 22 0 3 Grants and other assistance to governments, organizations, and individuals outside the United States See PartIV,|ines 15 and 16 0 Benefits paid to or for members 0 5 Compensation ofcurrent officers, directors, trustees, and key employees 3.135.217 6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) . 0 7 Other salaries and wages 51,598,592 8 Pension plan accruals and contributions (include section 401(k) and contributions) 4.691.381 9 Other employee benefits 6,444,926 10 Payroll taxes 3,973,253 11 Fees for services (non-employees) a Management 0 Legal 258,124 Accounting 110,627 Lobbying 908,250 Professional fundraising services See Part IV, line 17 1,636,720 Investment management fees 240,826 Other (If|ine 11g amount exceeds 10% ofline 25, column (A) amount, list line 11g expenses on Schedule O) 6.486.083 12 Advertising and promotion 3,245,610 13 Office expenses 5,129,326 14 Information technology 2,035,577 15 Royalties 0 16 Occupancy 3,141,546 17 Travel 3,553,533 18 Payments oftravel or entertainment expenses for any federal, state, or local public officials 0 19 Conferences, conventions, and meetings 708,669 20 Interest 21,601 21 Payments to affiliates 0 22 Depreciation, depletion, and amortization 1,507,813 23 Insurance 144,778 24 Other expenses Itemize expenses not covered above (List miscellaneous expenses in line 24e Ifline 24e amount exceeds 10% ofline 25, column (A)amount, list line 24e expenses on Schedule a UNRELATED BUS INC TAXES 206,332 All other expenses 25 Total functional expenses. Add lines 1 through 24e 100,347,591 26 Joint costs. Complete this line only if the organization reported in column (B) Joint costs from a combined educational campaign and fundraising solicitation Check here Ir iffollowing SOP 98-2 (ASC 958-720) Form 990 (2012) Form 990 (2012) Balance Sheet Page 11 Check ifSchedu|e 0 contains a response to any question in this Part . . (A) (B) Beginning ofyear End ofyear 1 Cash--non-interest-bearing 4.111.245 1 3.905.736 2 Savings and temporary cash investments 0 2 0 3 Pledges and grants receivable, net 0 3 0 4 Accounts receivable, net 437.813 4 1.659.311 5 Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees Complete Part II of Schedule 0 5 0 6 Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations ofsection 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II ofSchedu|e 0 5 7 Notes and loans receivable, net 1.500.000 7 0 :7 8 Inventories for sale or use 101.628 8 97.998 Prepaid expenses and deferred charges 1.098.407 9 922.318 10a Land, buildings, and equipment cost or other basis Complete Part VI of Schedule 10a 16778204 Less accumulated depreciation 10b 10,473,797 7.201.169 10c 6.304.407 11 Investments--pub|ic|y traded securities 24.066.301 11 27.332.728 12 Investments--other securities See Part IV, line 11 10.889 12 3.940 13 Investments--program-related See Part IV, line 11 0 13 0 14 Intangible assets 0 14 0 15 Other assets See Part IV, line 11 960.616 15 2.942.571 16 Total assets. Add lines 1 through 15 (must equal line 34) 39,488,068 16 43,169,009 17 Accounts payable and accrued expenses 70.471.293 17 71.393.688 18 Grants payable 0 18 0 19 Deferred revenue 19.385.439 19 19.411.472 20 Tax-exempt bond liabilities 0 20 0 21 Escrow or custodial account liability Complete Part IV ofSchedu|e 0 21 0 22 Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons Complete Part II ofSchedu|e 22 23 Secured mortgages and notes payable to unrelated third parties 23 24 Unsecured notes and loans payable to unrelated third parties 0 24 25 Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24) Complete Part ofSchedu237.446 25 138.780 26 Total liabilities. Add lines 17 through 25 90.094.178 26 90.943.940 J, Organizations that follow SFAS 117 (ASC 958), check here Ir |7 and complete 3 lines 27 through 29, and lines 33 and 34. 27 Unrestricted net assets -51.616.406 27 -48.283.362 28 Temporarily restricted net assets 1.010.296 28 508.431 29 Permanently restricted net assets 0 29 0 If Organizations that do not follow SFAS 117 (ASC 958), check here Ir and :5 complete lines 30 through 34. 30 Capital stock or trust principal, or current funds 30 31 Paid-in or capital surp|us,or|and, building or equipment fund 31 32 Retained earnings, endowment, accumulated income, or otherfunds 32 33 Total net assets or fund balances -50.606.110 33 -47.774.931 34 Total liabilities and net assets/fund balances 39,488,068 34 43,169,009 Form 990 (2012) Form 990(2012) Page 12 Reconcilliation of Net Assets Check ifSchedu|e 0 contains a response to any question in this Part XI . I7 1 Total revenue (must equal Part column (A), line 12) 1 103,045,496 2 Total expenses (must equal Part IX, column (A), line 25) 2 100,347,591 3 Revenue less expenses Subtract line 2 from line 1 3 2,697,905 4 Net assets orfund balances at beginning ofyear (must equal Part X, line 33, column 4 -50,606,110 5 Net unrealized gains (losses) on investments 5 993,697 6 Donated services and use of facilities 6 7 Investment expenses 7 8 Prior period adjustments 8 9 Other changes in net assets orfund balances (explain in Schedule 0) 9 -860,423 10 Net assets orfund balances at end ofyear Combine lines 3 through 9 (must equal Part X, line 33, column 10 -47,774,931 Financial Statements and Reporting Check ifSchedu|e 0 contains a response to any question in this Part XII . I- Yes No 1 Accounting method used to prepare the Form 990 Cash I7 Accrual I-0 ther Ifthe organization changed its method ofaccounting from a prior year or checked "Other," explain in Schedule 0 2a Were the organization's financial statements compiled or reviewed by an independent accountant? 2a No If'Yes,'check a box below to indicate whether the financial statements for the year were compiled or reviewed on a separate basis, consolidated basis, or both I-- Separate basis Consolidated basis Both consolidated and separate basis 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 basis, consolidated basis, or both I-- Separate basis I7 Consolidated basis Both consolidated and separate basis If"Yes," to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation ofits financial statements and selection ofan independent accountant? 2C Yes Ifthe organization changed either its oversight process or selection process during the tax year, explain in Schedule 0 3a As a result ofa federal award, was the organization required to undergo an audit or audits as set forth in the Single AuditAct and OMB 33 N0 If"Yes," did the organization undergo the required audit or audits? Ifthe organization did not undergo the required 3b audit or audits, explain why in Schedule 0 and describe any steps taken to undergo such audits Form 990 (2012) Iefile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 93493133o37433| SCHEDULE Political Campaign and Lobbying Activities OMB 1545'??47 (Form 990 or 990-EZ) For Organizations Exempt From Income Tax Under section 501(c) and section 527 1 2 Department ofthe Treasury Ir Complete if the organization is described below. Ir Attach to Form 990 or Form 990-EZ. lmemal Revenue Semce See separate inst l'llCtIOnS. Ins - ectlon If the organization answered "Yes" to Form 990, Part IV, Line 3, or Form 990-IZ, Part V. line 46 (Political Campaign Activities), then II Section 501(c)(3) organizations Complete Parts l--A and Do not complete Part l--C II Section 501(0) (other than section 501(c)(3)) organizations Complete Parts l--A and below Do not complete Part I-B II Section 527 organizations Complete Part l--A only If the organization answered "Yes" to Form 990, Part IV, Line 4, or Form 99042, Part VI, line 47 (Lobbying Activities), then II Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part ll--A Do not complete Part ll--B II Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section Complete Part ll--B Do not complete Part ll--A If the organization answered "Yes" to Form 990, Part IV, Line 5 (Proxy Tax) or Form 99042, Part V, line 35c (Proxy Tax), then II Section 501(c)(4), (5), or (6) organizations Complete Part Name ofthe organization Employer identification number NATIONAL FEDERATION OF INDEPENDENT BUSINESSINC 94_0707299 Complete if the organization is exempt under section 501(c) or is a section 527 organization. 1 Provide a description of the organization's direct and indirect political campaign activities in Part IV 2 Political expenditures 65,000 3 Volunteer hours 0 Part I-B Complete if the organization is exempt under section 501(c)(3). 1 Enter the amount ofany excise tax incurred by the organization under section 4955 F- 2 Enter the amount ofany excise tax incurred by organization managers under section 4955 F- 3 Ifthe organization incurred a section 4955 tax, did it file Form 4720 forthis year? Yes No 4a Was a correction made? Yes No If"Yes," describe in Part IV Part I-C Complete if the organization is exempt under section 501(c), except section 501(c)(3). 1 Enter the amount directly expended by the filing organization for section 527 exempt function activities Ir 0 2 Enter the amount ofthe filing organization's funds contributed to other organizations for section 527 exempt function activities Ir 65,000 3 Total exempt function expenditures Add lines 1 and 2 Enter here and on Form 1120-PO L, line 17b 65,000 Did the filing organization file Form 1120-POL for this year? I7 Yes No 5 Enter the names, addresses and employer identification number (EIN)ofa|| section 527 political organizations to which the filing organization made payments For each organization listed, enter the amount paid from the filing organization's funds Also enter the amount of political contributions received that were and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC) Ifadditional space is needed, provide information in Part IV Name Address EIN Amount ofpolitical Amount from contributions received filing organization's and prompuy and funds If n?ne: enter directly delivered to a separate political organization If none, enter-0- (1) REPUBLICAN STATE 1800 DIAGONAL ROAD 05-0532524 10,000 LEADERSHIPCOMMITTEE ALEXANDRIAIVA 22314 (2) REPUBLICAN GOVERNORS 1747 AVE 11-3655877 10,000 ASSOCIATION NW STE 250 20006 (3) MICHIGAN REPUBLICAN 520 SEYMOUR STREET 38-1221182 2,000 PARTY LANSING MI 48933 (4) 1610 17TH AVESZND 62-1671775 10,000 CONVENTION 2012) FLO 37212 FOR PO BOX 15159 20-5456371 33,000 OHIOS FUTURE COLUMBUSIOH 432150159 For Paperwork Reduction Act Notice, see the instructions for Form 990 or 990-EZ. Cat No 500345 schedme (Form 999 or 990.52) 2912 Schedule (Form 990 or 990-EZ) 2012 Page 2 Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)). A Check I-- ifthe filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share ofexcess lobbying expenditures) Check I-- ifthe filing organization checked box A and ''limited contro|" provisions apply Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.) totals totals 1a Total lobbying expenditures to influence public opinion (grass roots lobbying) Total lobbying expenditures to influence a legislative body (direct lobbying) Total lobbying expenditures (add lines la and lb) Other exempt purpose expenditures Total exempt purpose expenditures (add lines 1c and 1d) Lobbying nontaxable amount Enter the amount from the following table in both columns If the amount on line 1e, column or is: The lobbying nontaxable amount is: Not over $500,000 20% of the amount on line 1e Over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $500,000 Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1,000,000 Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000 Over $17,000,000 $1,000,000 Grassroots nontaxable amount (enter 25% ofline 1f) Subtract line lg from line 1a Ifzero or less, enter-O- i Subtract line lffrom line 1c Ifzero or less, enter-O- i Ifthere is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax forthis year? |_Yes 4-Year Averaging Period Under Section 50 1(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.) Lobbying Expenditures During 4-Year Averaging Period Calendar year (or fiscal year beginning in) 2009 2010 (C) 2011 2012 Total 2a Lobbying nontaxable amount Lobbying ceiling amount (1500/o ofline 2a, Total lobbying expenditures Grassroots nontaxable amount Grassroots ceiling amount (1500/o ofline 2d, column Grassroots lobbying expenditures Schedule (Form 990 or 990-EZ) 2012 Schedu|eC (Form 990 or990-EZ)2012 Page3 Part II-B Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)). For each "Yes response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity. Yes No Amount 1 During the year, did the filing organization attempt to influence foreign, national, state or local 2a legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of Volunteers? Paid staff or management (include compensation in expenses reported on lines 1c through Media advertisements? Mailings to members, legislators, orthe public? Publications, or published or broadcast statements? Grants to other organizations for lobbying purposes? Direct contact with legislators, their staffs, government officials, or a legislative body? Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? Other activities? Total Add lines 1c through 1i Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? If "Yes," enter the amount ofany tax incurred under section 4912 If"Yes," enter the amount ofany tax incurred by organization managers under section 4912 Ifthe filing organization incurred a section 4912 tax, did it file Form 4720 for this year? Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6). 1 2 3 Were substantially all (90% or more) dues received nondeductible by members? Did the organization make only in-house lobbying expenditures of$2,000 or less? Did the organization agree to carry over lobbying and political expenditures from the prior yearPart Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either BOTH Part lines 1 and 2, are answered "No" OR Part line 3, is answered "Yes." 5 Dues, assessments and similar amounts from members Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political expenses for which the section 527(f) tax was paid). Current year Carryover from last year Total Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? Taxable amount oflobbying and political expenditures (see instructions) Part IV Supplemental Information Complete this part to provide the descriptions required for Part I-A, line 1, Part I-B, line 4, Part I-C, line 5, Part II-A (affiliated group list), Part II-A, line 2, and Part ll-B, line 1 Also, complete this part for any additional information 1 94,896,849 2a 44,304,271 2b 2c 44,304,271 3 49,982,852 4 5 -5,678,581 Identifier Return Reference Explanation Schedule Part I-A prior to voting on Election Day NFIB paid membership dues to several federal and state political organizations to help gain insight to be used to enhance our programs furthering NFIB's mission to its members NFIB also participated in a state wide ballot initiative, educating voters on the importance ofgaining all the facts on the issue Schedule (Form 990 or 990EZ) 2012 Iefile GRAPHIC print -- Do NOT PROCESS As Filed Data -- OMB No 1545-0047 99?' Supplemental Financial Statements 2 Complete if the organization answered "Yes," to Form 990, DeP3ilmenT0flhe Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b lniemal Revenue Service Name of the organization NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC Open to Public Inspection Employer identification number Attach to Form 990. See separate instruct ions. 94-0707299 Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990 Part IV, line 6. 1 2 3 4 5 Donor advised funds Funds and other accounts Total number at end of year Aggregate contributions to (during year) Aggregate grants from (during year) Aggregate value at end ofyear Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization's property, subject to the organization's exclusive legal control? Yes N0 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 ofthe donor or donor advisor, or for any other purpose conferring impermissible private benefit? Yes N0 Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7. 1 Purpose(s) ofconservation easements held by the organization (check all that apply) Preservation ofland for public use (e recreation or education) I-- Preservation ofan historically important land area Protection of natural habitat Preservation ofa certified historic structure Preservation ofopen space Complete lines 2a through 2d ifthe organization held a qualified conservation contribution in the form ofa conservation easement on the last day ofthe tax year Held at the End of the Year Total number ofconservation easements 2a Total acreage restricted by conservation easements 2b Number ofconservation easements on a certified historic structure included in 2c Number ofconservation easements included in acquired after 8/17/06, and not on a historic structure listed in the National Register 2d Number ofconservation easements modified, transferred, released, extinguished, or terminated by the organization during the tax year Ir Number ofstates where property subject to conservation easement IS located I- Does the organization have a written policy regarding the periodic monitoring, inspection, handling ofviolations, and enforcement ofthe conservation easements it holds? Yes N0 Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year Ir Amount ofexpenses incurred in monitoring, inspecting, and enforcing conservation easements during the year Does each conservation easement reported on line 2(d) above satisfy the requirements ofsection and section Yes N0 In Part describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, ifapplicable, 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. 1a For Paperwork Reduction Act Notice, see the Instructions for Form 990. Complete if the organization answered "Yes" to Form 990, Part IV, line 8. Ifthe organization elected, as permitted under SFAS 116 (ASC 958), not to report in its revenue statement and balance sheet works ofart, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part the text ofthe footnote to its financial statements that describes these items Ifthe organization elected, as permitted under SFAS 116 (ASC 958), to report in its revenue statement and balance sheet works ofart, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items Revenues included in Form 990, Part line 1 Ir (")Assets includedin Form 990,PartX Ifthe organization received or held works ofart, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 (ASC 958) relating to these items Revenues included in Form 990, Part line 1 Ir$ Assets includedin Form 990,PartX Cat No 52283D Schedule (Form 990) 2012 Schedule (Form 990) 2012 Page 2 anizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (Continued) 3 Using the organization's acquisition, accession, and other records, check any ofthe following that are a significant use of its collection items (check all that apply) a publlc Loan orexchange programs Scholarly research Other Preservation forfuture generations 4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part 5 During the year, did the organization solicit or receive donations ofart, historical treasures or other similar assets to be sold to raise funds ratherthan to be maintained as part ofthe organization's collection? Yes l_ No Part IV Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990, Part IV, line 9, or reported an amount on Form 990, Part X, line 21. 1a Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not included on Form 990,Part l_N0 If"Yes," explain the arrangement in Part and complete the following table Amount Beginning balance Additions during the year 9 Distributions during the year Ending balance 2a Did the organization include an amount on Form 990,Part X,|ine 217 I--Yes the arrangement in Part Check here ifthe explanation has been provided in Part . . . . . . . . Part Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10. (a)Current year (b)Prior year (c)Two years back (d)Three years back (e)Four years back 1a Beginning ofyear balance Contributions Net investment earnings, gains, and losses Grants or scholarships Other expenditures forfacilities and programs Administrative expenses End ofyear balance 2 Provide the estimated percentage ofthe current year end balance (line lg, column held as a Board designated or quasi-endowment II- |3 Permanent endowment F- Temporarily restricted endowment hr The percentages in lines 2a, 2b, and 2c should equal 100% 3a Are there endowment funds not in the possession ofthe organization that are held and administered for the organization by Yes No (i)unrelatedorganizations . . . . . . . . . . . . . . . . . . . . . . . . 3a(i) (ii) related organizations . . . . . . . . . . . . . . . . . . . . . . . . If"Yes" to 3a(ii), are the related organizations listed as required on Schedule . . . . . . . . . 3b 4 Describe in Part the intended uses ofthe organization's endowment funds Land, Buildings, and Equipment. See Form 990, Part X, line 10. Description of property Cost or other (b)Cost or other Accumulated Book value basis (investment) basis (other) depreciation 794,900 794,900 Buildings . . . . . . . . . . . . . . . . 4,536,591 2,411,301 2,125,290 Leasehold improvements . . . . . . . . . . . . 989,418 797,986 191,432 Equipment . . . . . . . . . . . . . . . . 7,724,719 4,953,058 2,771,661 Other . . . . . . . . . . . . . . . . . 2,732,576 2,311,452 421,124 Total. Add lines 1a through 1e (Column must equal Form 990, Part X, column (3), line . . . . . . . Ir 6,304,407 Schedule (Form 990) 2012 Schedule (Form 990)2012 Page3 Investments--0ther Securities. See Form 990 Part line 12. Description ofsecurity or category (b)Book value includin name ofsecuri Method ofvaluation Cost or end-of- ear market value (1 )Financial derivatives (2 losely-held equity interests Other I- Total. Column must lFon'n 990, PartX, col line 12 Investments--Pro ram Related. See Form 990 Part Description of investment type Book value line 13. Method ofvaluation Cost or end-of- ear market value Total. (Column must equal Form 990, Part)(, col (B) line 13) Other Assets. See Form 990 Part line 15. Description Book value (1) ACCRUED INTEREST 2 DUE FROM AFFILIATES 3 DEPOSITS 4 INVESTMENTIN AFFILIATE 5 LIFEINSURANCECSV 84,454 359 189 193 345 1 876 167 429416 Total. (Column must equal Form 990, Part X, col.(B) line 15.) Other Liabilities. See Form 990 Part 1 Description ofliability 2,942,571 line 25. Book value Federal income taxes DUE TO AFFILIATES EXECUTIVE LIFE INS ANNUITY 3 318 135 462 Total. (Column must equal Form 990, PartX, col (B) line 25(ASC 740) Footnote In Part provide the text ofthe footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740) Check here ifthe text ofthe footnote has been provided in Part |7 Schedule (Form 990) 2012 Schedule (Form 990) 2012 Page 4 Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Total revenue, gains, and other support per audited financial statements . . . . . . . 1 2 Amounts included on line 1 but not on Form 990, Part line 12 a Net unrealized gains on investments 2a Donated services and use offacilities 2b Recoveries of prior year grants 2c Other (Describe in Part 2d Add lines 2a through 2d 2e 3 Subtract line 2e from line 1 3 4 Amounts included on Form 990, Part line 12, but not on line 1 Investment expenses not included on Form 990, Part line 7b 4a Other (Describe in Part 4b Add|ines4aand 4b 4c 5 Total revenue Add lines 3and 4c. (This must equal Form 990, Part I, line 12E111 Reconciliation of Expenses per Audited Financial Statements With Expenses per Return Total expenses and losses per audited financial statements 1 2 Amounts included on line 1 but not on Form 990, Part IX, line 25 a Donated services and use offacilities 2a Prior year adjustments 2b Otherlosses 2c Other (Describe in Part 2d Add lines 2a through 2d 2e 3 Subtract line 2e from line 1 3 4 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part line 7b 4a Other (Describe in Part 4b Add|ines4aand 4b 4c 5 Totalexpenses Add lines 3and 4c. (This must equa|Form 990,PartI,|ine 18Supplemental Information Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9, Part lines 1a and 4, Part IV, lines lb and 2b, Part V, line 4, Part X, line 2, Part XI, lines 2d and 4b, and Part XII, lines 2d and 4b Also complete this part to provide any additional information Identifier Return Reference Explanation ASC TOPIC 740 FOOTNOTE SCHEDULE X, LINE2 The Federation is a tax-exempt organization as described in Section 501(c)(6) ofthe Internal Revenue Code (the Code), and is generally exempt from federal income taxes on related income pursuant to Section 501(a) ofthe Code The Federation is, however, subject to federal and state income tax on unrelated business income In addition to digital advertising revenue, during 2012 the Federation began generating income from advertising activities related to the NFIB My Business magazine Advertising income is subject to taxation under Section 512 ofthe Code and resulted in unrelated business income tax expense of$206,332 and $71,078 forthe years ended December 31, 2012 and 2011, respectively The Federation does not have any significant uncertain tax positions for the years ended December 31, 2012 and 2011 Schedule (Form 990) 2012 Iefile GRAPHIC print -- DO NOT PROCESS As Filed Data -- SCHEDULE (Form 990 or 990-EZ) Depailment of the Treasury lnlemal Revenue Seniice Supplemental Information Regarding Fundraising or Gaming Activities Complete ifthe organization answered "Yes" to Fom1 990, Pait IV, lines 17, 18, or 19, or ifthe organization entered n1ore than $15,000 on Form 990-EZ, line 6a. Form 990-EZ filers are not required to complete this part. h"Attach to Form 990 or Fom1 990-EZ. Fsee separate instructions. OMB No 1545-0047 2012 Open to Public Inspection Name of the organization NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC 94-0707299 Employer identification number Fundraising Activities. Complete if the organization answered "Yes" to Form 990, Part IV, line 17. 1 Indicate whether the organization raised funds through any ofthe following activities Check all that apply 0.0U'fll Mail solicitations I7 I7 Internet and email solicitations I7 Phone solicitations In-person solicitations Solicitation of non-government grants Solicitation ofgovernment grants Specialfundraising events 2a Did the organization have a written or oral agreement with any individual (including officers, directors, trustees or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? I7 Yes No If"Yes," list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization Name and address of (ii) Activity Did (iv) Gross receipts Amount paid to (vi) Amount paid to individual fundraiser have from activity (or retained by) (or retained by) or entity (fundraiser) custody or fundraiser listed in organization control of col contributions? Yes No NATIONAL CAPITAL TELEMARKET TELESERVICES LLC FUNDRAISING 300 5th StreetNE No 2,066,635 1,636,720 429,915 Washington, DC 20002 Total. 2,066,635 1,636,720 429,915 3 List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration or licensing For Paperwork Reduction Act Notice, see the Instructions for Form 990or 990-EZ. Cat No 50083H Schedule (Form 990 or 990-EZ) 2012 Schedule (Form 990 or 990-EZ) 2012 Fundraising Events. Complete if the organization answered "Yes" to Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990--EZ, lines 1 and 6b. List events with gross receipts greater than $5,000. Page 2 Event #1 Event #2 Other events Total events (add col through col (event type) (event type) (total number) Eli 1 Gross receipts 2 Less Contributions I: 3 Gross income (line 1 minus line 2) 4 Cash prizes 5 Noncash prizes in Illi- 6 Rent/facility costs EL Ii 7 Food and beverages 3 Entertainment 5; 9 Other direct expenses 10 Direct expense summary Add lines 4 through 9 in column It 11 Net income summary Combine line 3, column and line 10 It Gaming. Complete if the organization answered "Yes" to Form 990, Part IV, line 19, or reported more than $15,000 on Form 990--EZ, line 6a. CD Bingo Pull tabs/Instant Other gaming Total gaming (add 2 bingo/progressive bingo col through col .1 1 Gross revenue 2 Cash prizes -in 3 Non-cash prizes ent aci ity costs 5 4 /f I Ci 5 Other direct expenses Yes Yes Yes 6 Volunteerlabor No No No 7 Direct expense summary Add lines 2 through 5 in column . It 8 Net gaming income summary Combine lines 1 and 7 in column It 9 Enter the state(s) in which the organization operates gaming activities Is the organization licensed to operate gaming activities in each ofthese states? Yes NO If"No," explain 10a Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? . yes No If"Yes," explain Schedule (Form 990 or 990-EZ) 2012 Schedu|eG (Form 990 or990-EZ)2012 Page 311 Does the organization operate gaming activities with nonmembersthe organization a grantor, beneficiary or trustee ofa trust or a member ofa partnership or other entity formed to administer charitable gamingIndicate the percentage ofgaming activity operated in The organization's facility . . . . . . . . . . . . . . . . . . . . . . 13a An outside facility . . . . . . . . . . . . . . . . . . . . . . . . 13b 14 Enter the name and address ofthe person who prepares the organization's gaming/special events books and records NameI"' Address 15a Does the organization have a contract with a third party from whom the organization receives gaming revenue|_ye5|_No If "Yes," enter the amount ofgaming revenue received by the organization It and the amount ofgaming revenue retained by the third party If"Yes," enter name and address of the third party NameI* Address 16 Gaming managerinformation Namei" Gaming manager compensationI"'$ Description ofservices provided Director/officer Employee Independent contractor 17 Mandatory distributions a Is the organization required under state law to make charitable distributions from the gaming proceeds to retainthestategaminglicense|_yes Enter the amount ofdistributions required under state law distributed to other exempt organizations or spent in the organization's own exempt activities during the tax yeari" Part IV Supplemental Information. Complete this part to provide the explanations required by Part I, line 2b, columns and and Part lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also complete this part to provide any additional information (see instructions). Identifier Return Reference Explanation Schedule (Form 990 or 990-E2) 2012 Iefile GRAPHIC print - DO NOT PROCESS |As Filed Data - DLN: 93493133037433 Schedule! OMB No 1545-0047 (Form 990) Grants and Other Assistance to Organizations, 2 Governments and Individuals in the United States Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22. open to Public to Name of the organization Employer identification number NATIONAL FEDERATION OF INDEPENDENT BUSINESSINC 94'?7?7299 General Information on Grants and Assistance 1 Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and theselectioncriteria usedtoawardthegrants orassistance'l7YeS l_N0 2 Describe in Part IV the organization's procedures for monitoring the use ofgrant funds in the United States Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space IS needed. Name and address of EIN IRC Code section Amount ofcash Amount of non- Method of Description of Purpose ofgrant organization ifapplicable grant cash valuation non-cash assistance or assistance or government assistance (book, FMV, appraisal, other) 62-1557196 200,000 GENERALSUPPORT ENTREPRENEUR FOUNDATION 53 CENTURY BLVD STE 250 37214 YES ON 116 45-5490490 10,000 GENERAL SUPPORT PO BOX 13692 85284 HARLOW 52-1266620 10,000 GENERAL SUPPORT FOUNDATION PO BOX 75652 21275 62-0582571 7,350 GENERALSUPPORT INC 120 POWELL PLACE 37204 87-0741778 501(c)(4) 17,000 GENERALSUPPORT CONSERVATIVES OF PO BOX 717 NEW 17070 (6)NFIBTheVoice ofFree 27-3615830 890,280 GENERALSUPPORT Enterprise 53 Century Ste 250 37214 For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50055P Schedule I (Form 990) 2012 Schedule I (Form 990) 2012 Grants and Other Assistance to Individuals in the United States Part can be duplicated if additional space IS needed. (a)Type of grant or assistance (b)Number of recipients (c)Amount of cash grant (d)Amount of non-cash assistance (e)Method ofvaluation (book, FMV, appraisal, other) . Complete if the organization answered "Yes" to Form 990, Part IV, line 22. Page 2 (f)Description of non-cash assistance Part IV Supplemental Information. Complete this part to provide the information required in Part I, line 2, Part column and any other additional information Identifier Return Reference Explanation SCHEDULE I, PART 1, LINE 2 NFIB PROVIDED GRANTS TO ITS AFFILIATED ORGANIZATIONS TO HELP FURTHER THE EXEMPT PURPOSE OF THOSE ORGANIZATIONS NFIB ALSO MADE CONTRIBUTIONS TO CHARITABLE AND OTHER EXEMPT ORGANIZATIONS WHICH SHARE IN MISSION TO PROMOTE AND PROTECT THE RIGHTS OF SMALL BUSINESSES AND USE OFTHESE FUNDS IS MONITO RED ACCORDINGLY Schedule I (Form 990) 2012 Iefile GRAPHIC print -- DO NOT PROCESS IAs Filed Data -- scheduie Compensation Information 'Form 990) For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees Complete if the organization answered "Yes" to Form 990, Deparlmenloflhe Treasury part IV, question 23_ lntemal Revenue Service Name ofthe organization NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC OMB No 1545-0047 Attach to Form 990. See separate instruct ions. 94-0707299 Questions Regarding Compensation 1a 9 Open to Public Inspection Employer identification number Check the appropiate box(es) ifthe organization provided any ofthe following to or for a person listed in Form 990, Part VII, Section A, line la Complete Part to provide any relevant information regarding these items I7 First-class or charter travel I7 Housing allowance or residence for personal use I7 Travel for companions I7 Payments for business use of personal residence I7 Tax idemnification and gross-up payments I7 Health or social club dues or initiation fees I7 Discretionary spending account I7 Personal services (e maid, chauffeur, chef) Ifany of the boxes in line 1a are checked, did the organization followa written policy regarding payment or reimbursement or provision ofall ofthe expenses described above? If"No," complete Part to explain Did the organization require substantiation priorto reimbursing or allowing expenses incurred by all officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line la? Indicate which, ifany, ofthe following the filing organization used to establish the compensation ofthe organization's CEO/Executive Director Check all that apply Do not check any boxes for methods used by a related organization to establish compensation ofthe CEO/Executive Director, but explain in Part I7 Compensation committee I7 Written employment contract I7 Independent compensation consultant I7 Compensation survey or study I7 Form 990 of other organizations I7 Approval by the board or compensation committee During the year, did any person listed in Form 990, Part VII, Section A, line 1a with respect to the filing organization or a related organization Receive a severance payment or change-of-control payment? Participate in, or receive payment from, a supplemental nonqualified retirement plan? Participate in, or receive payment from, an equity-based compensation arrangement? If"Yes" to any oflines 4a-c, list the persons and provide the applicable amounts for each item in Part Only 501(c)(3) and 501(c)(4) organizations only must complete lines 5-9. For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue any compensation contingent on the revenues of The organization? Any related organization? If"Yes," to line 5a or 5b, describe in Part For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue any compensation contingent on the net earnings of The organization? Any related organization? If"Yes," to line 6a or 6b, describe in Part For persons listed in Form 990, Part VII, Section A, line la, did the organization provide any non-fixed payments not described in lines 5 and 6? If"Yes," describe in Part Were any amounts reported in 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 If"Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50053T Schedule (Form 990) 2012 Schedule (Form 990) 2012 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 in Schedule J, report compensation from the organization on row and from related organizations, described in the instructions, on row (ii) Do not list any individuals that are not listed on Form 990, Part VII Note. The sum ofcolumns for each listed individual must equal the total amount of Form 990, Part VII, Section A, line la, applicable column (D) and (E) amounts for that individual (A) Name and Title (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Retirement and (D) Nontaxable (E) Total of (F) Compensation Base (ii) Bonus other other deferred benefits columns reported as deferred Com ensatlon Incentive reportable compensation in prior Form 990 compensation compensation See Additional Data Table Schedule (Form 990) 2012 Schedu|eJ (Form 990)2012 Page3 Supplemental Information Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1aand for Part II Also complete this part for any additional information Identifier Return Referenoe Explanation TRAVEL FOR COMPANIONS SCHEDULE 1A UPON BOARD COMPANION TRAVELEXPENSES PAID BY NFIBAREINCLUDED IN THE BOARD FORM 1099 AS TAXABLE INCOME UPON COMPANION TRAVEL EXPENSES PAID OR REIMBURSED BY NFIB ARE INCLUDED IN THE TAXABLE WAGES AS A TAXABLE AND TREATED AS SALARY, SUBJECT TO WITHHOLDING, ON THE FORM W-2 TAXINDEMNIFICATION AND SCHEDULE 1A NFIB HASA NONQUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN PLAN PROVISIONS GROSS-UP PAYMENTS PROVIDE THAT ALL AFTER TAX BENEFITS BE GROSSED UP THIS PLAN WAS CLOSED TO NEW PARTICIPANTSIN 2008 DISCRETIONARY SPENDING SCHEDULE 1A AS APPROVED BY THE EXECUTIVE COMMITTEE OFTHE BOARD OF COMPENSATION ACCOUNT PACKAGE OFTHE PRESIDENT SHALL INCLUDE CERTAIN ADDITIONAL PAYMENTS SUCH AS AUTO ALLOWANCE AND CELLULAR SERVICE ALLOWANCE IN COMPLIANCE WITH IRS CODE SECTION 132 THESE FRINGE BENEFITS ARE TREATED AS TAXABLE SALARY, SUBJECT TO WITHHOLDING, ON THE FORM W-2 OFFICERS AND EXECUTIVE MANAGEMENT OFTHE COMPANY RECEIVE CELLULAR SERVICE ALLOWANCE IN COMPLIANCE WITH IRS CODE SECTION 132 THESE FRINGE BENEFITS ARE TREATED AS TAXABLE SALARY, SUBJECT TO WITHHOLDING, ON THE FORM W-2 SUPPLEMENTAL NONQUALIFIED SCHEDULE 4B NFIB PROVIDES SUPPLEMENTAL EXECUTIVE RETIREMENT THESE NONQUALIFIED PLANS RETIREMENT PLAN COVER CERTAIN KEY MANAGEMENT AND EXECUTIVE PERSONNEL PARTICIPATION IN ALL SERPS HAS BEEN FROZEN AND FUTURE BENEFIT ACCRUALS FORTHE PLANS HAVE CEASED NO PAYMENTS WERE MADE TO ANY SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN IN 2012 Schedule (Form 990) 2012 Additional Data Form 990, Schedule J, Part II - Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (A) Name Software ID: Software Version: EIN: 94--0707299 Name: BUSINESS INC (B) Breakdown ofW-2 and/or 1099-MISC compensation NATIONAL FEDERATION OF INDEPENDENT (C) Deferred (D) Nontaxable Return to Form (E) Total ofcolumns (F) Compensation reported in prior Form (D Base (imother compensation benefits 990 0rFOrm Compensation compensation compensation DONAI-OADANNER 180,250 46,498 11,575 18,214 780,415 MARY BI-ASINSKY (I) 219,106 75,740 13,938 14,900 18,867 342,551 TAMMY BOEHMS (I) 285,594 97,528 10,231 11,538 11,891 416,782 JEFF SMITH (I) 28,019 1,796 9,164 8,772 202,074 JOHN CASEI-I-A (I) 249,359 105,000 7,987 10,911 25,846 399,103 SUSAN ECKERI-Y (I) 240,015 82,915 3,942 11,332 18,692 356,896 STEPHEN WOODS (I) 24?-7642 86,398 8,524 13,494 19,519 370,577 MARK GARZONE (I) 259,506 90,125 4,309 12,718 26,447 393,105 JEAN CARD (I) 201,636 70,000 2,062 9,810 17,285 300,793 MARK MOEEITT (I) 144,948 112,006 11,161 8,750 12,486 289,351 BEVERLY SHEA (I) 41,322 4,750 13,131 11,961 291,551 PAMELA CONNOR 194,360 67,823 3,832 11,962 25,668 303,645 Iefile GRAPHIC print - Do NOT PROCESS IAs Filed Data - DLN: 93493133o37433| SCHEDULE 1545 0047 (Form 990 or990_EZ) upp ementa ormation to orm or - 2 Depanmen, Ofthe Treasury Complete to provide information for responses to specific questions on lmemal Revenue Semce Form 990 or to provide any additional Information. Open 120 Ir Attach to Form 990 or 990-EZ. a me of the rga nizatio Employer identification number NATIONAL FEDERATION OF INDEPENDENT BUSINESSINC 94_0707299 Identifier Return Explanation Reference CHANGE TO FORM 990, NFIB is the parent organization of NFIB, The Voice of Free Enterprise, Inc a Tennessee Nonprofit GOVERNING Part VI, LINE4 Corporation Membership in NFIB shall include and shall confer upon each member of NFIB non--voting, DOCUMENTS non--statutory membership in NFIB, The Voice of Free Enterprise, Inc so that a rriember of NFIB IS also a member of NFIB, The Voice of Free Enterprise, Inc and termination of membership in NFIB for any reason shall also constitute termination in NFIB, The Voice of Free Enterprise, Inc FORM 990 PART VI, FOLLOWING AN INDEPENDENT AUDIT OF ITS FINANCIAL STATEMENTS, A DRAI-T OF NATIONAL PROVIDED TO SECTION FEDERATION OF INDEPENDENT BUSINESS, INC FORM 990 IS PREPARED THIS FORM 990 IS GOVERNING BODY POLICIES, LINE REVIEWED INTERNALLY BY TAX ACCOUNTANT, AND 11 ANY QUESTIONS ARISING FROM THE INITIAL REVIEW ARE ADDRESSED TO ENSURE THE RETURN IS AND ACCURATE ANY NECESSARY ARE MADE ON THE FORM 990 AND THE RETURN AGAIN GOES THROUGH INTERNAL REVIEW PROCESS UPON APPROVAL OF THE THE FINAL RETURN IS FILED WITH THE INTERNAL REVENUE SERVICE THE FINAL RETURN IS MADE AVAILABLE TO THE BOARD OF DIRECTORS FOR REVIEW WRITTEN CONFLICT PART VI, EVERY BOARD MEMBER, OFFICER, AND KEY EMPLOYEE OF NFIB IS REQUIRED TO DISCLOSE ANY OF INTEREST SECTION ACTUAL OR POTENTIAL CONFLICTS OF INTEREST ON AN ANNUAL BASIS POLICY POLICIES, LINE 12 PROCESS OF PART VI, THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS IS RESPONSIBLE FOR DETERMINING DETERMINING SECTION COMPENSATION FOR THE CEO, CFO, SECRETARY, AND CERTAIN KEY EES OF THE COMPENSATION POLICIES, LINE ORGANIZATION THE COMPENSATION IS REVIEWED AND SET BY THE CEO IN FOR OFFICERS AND 15 NOVEMBER 2011, AN OUTSIDE COMPENSATION CONSULTING FIRM WAS ENGAGED TO PROVIDE OTHER KEY EXPERT ANALYSES REGARDING THE REASONABLENESS OF THE TOTAL COMPENSATION PACKAGE EES FOR THE EXECUTIVES OF NFIB AND ITS AFFILIATED ORGANIZATIONS THE 2011-2012 RESULTS ALONG WITH AN IRC 4958 OPINION LEITER WERE PROVIDED TO THE CHAIRMAN OF THE BOARD FOR THE EXECUTIVE COMMITTEE AT THE FEBRUARY 2012 MEETING THE COMMITTEE RELIES ON THIS INDEPENDENT REVIEW TO ENSURE THAT REASONABLE COMPENSATION IS PAID TO THE CEO, CFO, SECRETARY, AND CERTAIN KEY EES THE COMMITTEES PI-IILOSOPHY IS TO ENSURE THAT THE COMPENSATION FOR THESE POSITIONS RELATIVE TO MARKET COMPARISONS IS COMPETITIVE IN ORDER TO ATTRACT, RETAIN AND MOTIVATE QUALIFIED EMPLOYEES WHILE NOT BEING AT THE TOP OF THE RANGE THE COMMITTEE SETS THE COMPENSATION FOR THE CEO, CFO, SECRETARY, AND CERTAIN KEY EES EACH YEAR DURING THEIR MEETING WHICH IS TYPICALLY HELD IN JANUARY OR FEBRUARY MINUTES FROM THESE ANNUAL MEETINGS ARE TAKEN BY THE CORPORATE SECRETARY DURING THE MEETING WHEN THE MINUTES ARE REVIEWED AND APPROVED, THEY ARE RETAINED WITH ALL OTHER CORPORATE RECORDS DOCUMENTS PART VI, IT IS POLICY TO MAKE AVAILABLE FOR PUBLIC INSPECTION, UPON REQUEST, EITHER WRITTEN AVAILABLE TO THE SECTION OR IN PERSON, ITS EXEMPTION APPLICATION, SUPPORTING DOCUMENTS AND ANY LEITER OR PUBLIC DISCLOSURE DOCUMENT ISSUED BY THE IRS CONCERNING THE NFIB ALSO MAKES AVAILABLE FOR LINE 19 PUBLIC INSPECTION AND COPYING, UPON REQUEST, EITHER WRITTEN OR IN PERSON, ITS FEDERAL FORM 990, RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX, AND ITS CONFLICT OF INTEREST POLICY FUND BALANCE FORM 990, EQUITY IN AFFILIATED ORGANIZATION 1,876,167 CHANGE IN MINIMUM PENSION LIABILITY (2,119,799) RECONCILIATION PART XI, LINE TRANSFER TO RELATED ORGANIZATION (616,791) OTHER CHANGES IN FUND BALANCE 9 (860,423) Iefile GRAPHIC print - DO NOT PROCESS |As Filed Data - DLN: 93493133037433 SCHEDULE Related Organizations and Unrelated Partnerships OMB 154M047 (Form 990) Complete if the organization answered "Yes" to Form 990, Part IV, line 33Attach to Form 990. See separate instructions. DeparlmeniofiheTreasury open to P_ub"c lniemal Revenue Service Inspecuon Name of the organization Employer identification number NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC Identification of Disregarded Entities (Complete if the organization answered "Yes" to Form 990, Part IV, line 33.) (C) Name, address, and EIN (if applicable) of disregarded entity Primary activity Legal domicile (state Total income End--of--year assets Direct controlling or foreign country) entity Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" to Form 990, Part IV, line 34 because it had one or more related tax--exempt organizations during the tax year.) (C) (9) Name, address, and EIN of related organization Primary activity Legal domicile (state Exempt Code section Public charity status Direct controlling Section 512(b) or foreign country) (if section 501(c)(3)) entity (13) controlled entity? Yes No (1) NFIB SMALL BUSINESS LEGAL CENTER PUB LAW FIRM TN SUP ORG I NFIB Yes 53 CENTURY BLVD SUITE 250 NASHVILLE, TN 37214 62--1570449 (2) NFIB RESEARCH FOUNDATION RESEARCH TN SUP ORG I NFIB Yes 53 CENTURY BLVD SUITE 250 NASHVILLE, TN 37214 04-3592337 (3) NFIB SAVE AMERICAS FREE ENTERPRISE TRUST PAC CA 527 NFIB Yes 53 CENTURY BLVD SUITE 250 NASHVILLE, TN 37214 94--2532364 (4) NFIB THE VOICE OF FREE ENTERPRISE SOC WELFARE TN NFIB Yes 53 CENTURY BLVD SUITE 250 NASHVILLE, TN 37214 27-3615830 (5) NFIB YOUNG ENTREPRENEUR FOUNDATION EDUCATION TN SUP ORG I NFIB Yes 53 CENTURY BLVD SUITE 250 NASHVILLE, TN 37214 62- 1557196 For Paperwork Reduction Act Notice, see the Instructions for Form 990Schedule (Form 990) 2012 Schedule (Form 990) 2012 Page 2 Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.) (9) Name, address, and EIN of Primary activity Direct Predominant Share of Share of Disproprtionate Code V--UBI General or Percentage related organization domicile controlling income(re|ated, total income end--of--year allocations? amount in box managing ownership (state or entity unrelated, assets 20 of partner? excluded from Schedule K-1 country) tax under (Form 1065) sections 512- 514) Yes No Yes No Part IV Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" to Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.) (C) 9 Name, address, and EIN of Primary activity Legal Direct controlling Type of entity Share of total Share of end--of-- Percentage Section 512 related organization domicile entity (C corp, corp, income year ownership (state or foreign or trust) assets controlled country) entity? Yes No (1) NFIB MEMBER SERVICES MEMBER BENEFITS NFIB 6,168,946 2,547,963 100 000 Yes CORPORATION 53 CENTURY BLVD SUITE 250 CA NASHVILLE, TN 372143682 94--2899404 Schedule (Form 990) 2012 Page3 Transactions With Related Organizations (Complete if the organization answered "Yes" to Form 990, Part IV, line 34, 35b, or 36.) Note. Complete line 1 ifany entity IS listed in Parts II, orIV of this schedule Yes N0 1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts a Receipt of interest (ii) annuities royalties or (iv) rent from a controlled entity 13 Yes Gift, grant, or capital contribution to related organization(s) 1b Yes Gift, grant, or capital contribution from related organization(s) 1C Yes Loans or loan guarantees to or for related organization(s) 1d N0 Loans or loan guarantees by related organization(s) 1e N0 Dividends from related organization(s) 1f N0 Sale ofassets to related organization(s) 19 NO Purchase ofassets from related organization(s) 1'1 N0 i Exchange ofassets with related organization(s) 1i N0 Lease offacilities, equipment, or other assets to related organization(s) 15 N0 Lease of facilities, equipment, or other assets from related organization(s) 1k N0 I Performance ofservices or membership or fundraising solicitations for related organization(s) 1' Yes Performance ofservices or membership orfundraising solicitations by related organization(s) N0 Sharing offacilities, equipment, mailing lists, or other assets with related organization(s) 1" Yes 0 Sharing of paid employees with related organization(s) 10 Yes Reimbursement paid to related organization(s) for expenses 1D Yes Reimbursement paid by related organization(s) for expenses Yes Othertransfer ofcash or property to related organization(s) 1r Yes Other transfer ofcash or property from related organization(s) 15 Yes 2 Ifthe answerto any ofthe above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds (C) Name of other organization Transaction Amount involved Method of determining amount involved type See Additional Data Table Schedule (Form 990) 2012 Schedule (Form 990) 2012 Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to Form 990, Part IV, line 37.) Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization See instructions regarding exclusion for certain investment partnerships Page 4 Name, address, and EIN of entity Primary activity (C) Legal domicile (state or foreign country) Predominant income (related, unrelated, excluded from tax under section 512- 514) Are all partners section 501(c)(3) organizations? Yes No Share of total income (9) Share of end yea assets Disproprtionate allocations? Yes No Code V--UBI amount in box 20 of Schedule K-1 (Fom'i 1065) General or managing partner? Percentage ownership Yes Schedule (Form 990) 2012 Schedule (Form 990) 2012 Page 5 Supplemental Information Complete this part to provide additional information for responses to questions on Schedule (see instructions) Identifier Ret urn Reference Explanation Additional Data Return to Form Software ID: Software Version: EIN: 94--0707299 Name: NATIONAL FEDERATION OF INDEPENDENT BUSINESS INC Form 990, Schedule R, Part - Transactions With Related Organizations (6) (C) Name of other organization Amount Involved Method amount involved NFIB Member Services Corporation LINE 31,570 FMV NFIB Young Entrepreneur Foundation LINE 200,000 FMV NFIBTHE VOICE OF FREE ENTERPRISE LINE 890,280 FMV NFIB SAVE FREE ENTERPRISE TRUST LINE 472,747 FMV NFIB Member Services Corporation LINE 1,320,942 FMV NFIBTHE VOICE OF FREE ENTERPRISE LINE 260,196 FMV NFIB Small Business Legal Center LINE 117,158 FMV NFIB Research Foundation LINE 117,158 FMV NFIB Member Services Corporation LINE 138,712 FMV NFIB Small Business Legal Center LINE 202,581 FMV NFIB Research Foundation LINE 264,984 FMV NFIBTHE VOICE OFFREE ENTERPRISE LINE 63,451 FMV NFIB Member Services Corporation LINE 449,589 FMV NFIB Young Entrepreneur Foundation LINE 250,000 FMV NFIBTHE VOICE OF FREE ENTERPRISE LINE 2,195,264 FMV NFIB Member Services Corporation LINE 487,159 FMV Form 990, Part Line 1, Organization's Mission The purposes for which this corporation is organized are 1 To promote the economic, financial and political welfare of its members, to elevate the prestige and standing ofthe independent small business men in his community, to organize the independent or small business men into an association to the end that his voice may be heard effectively in local, state, and national affairs affecting small business 2 To preserve, protect, promote and develop the American system of private enterprise by promoting and developing laws and regulations helpful and beneficial to, and for the preservation of, small business 3 To conduct polls among its members on matters of importance concerning and affecting small business and its problems, and to collect, compile and disseminate information over the air and through the press relating thereto to its members and the general public 4 To expose and resist corruption in government and to secure honesty, efficiency and economy in national, state, and local governments 5 To carry on an educational campaign among its members and the general public and in this connection, to publish a magazine forthe purpose of disseminating information and ideas to its members and to the public relating to problems vital and of interest to small business, with a view to lawfully influencing the passage of legislation beneficial to its members and the general public, and the defeat of legislation deemed to be inimical to small business and the general public, and from time to time to circulate its membership and to secure their subject matters of legislation affecting small business 6 To foster the promotion and advancement of civic, commercial, industrial and political welfare of its members in their respective communities