FY 2009

---

990

Form

OMB No. 1545-0047

Return of Or ganization Exempt Fr om Income T ax

2008

Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) Department of the Treasury Internal Revenue Service

A

©

The organization may have to use a copy of this return to satisfy state reporting requirements.

For the 2008 calendar year, or tax year beginning

B Check if applicable: Address change Name change Initial return Termination Amended return

07/01 , 2008, and ending

Open to Public Inspection

06/30 , 20 09 D Employer identification number

Please C Name of organization HEIFER PROJECT INTERNATIONAL use IRS Doing Business As HEIFER INTERNATIONAL label or print or Number and street (or P.O. box if mail is not delivered to street address) Room/suite type. See 1 WORLD AVENUE Specific City or town, state or country, and ZIP + 4 Instructions. LITTLE ROCK, AR 72202-2863

35 E (

1019477

Telephone number

501

907-2600

)

G Gross receipts $

107,332,698

F Name and address of principal officer:

HEIFER PROJECT INTERNATIONALH(a) Is this a group return for affiliates? Yes ✔ No Application pending 1 WORLD AVENUE, LITTLE ROCK, AR 72202 H(b) Are all affiliates included? No Yes 4947(a)(1) or 527 I Tax-exempt status: ✔ 501(c) ( 3 )§ (insert no.) If “No,” attach a list. (see instructions) J Website: © WWW.HEIFER.ORG H(c) Group exemption number © K Type of organization: ✔ Corporation L Year of formation: Trust Association Other © 1953 M State of legal domicile: AR

Activities & Governance

Part I

Summary

1 Briefly describe the organization’s mission or most significant activities: SINCE 1944, HEIFER HAS HELPED 12 MILLION FAMILIES IN MORE THAN 125 COUNTRIES MOVE TOWARD GREATER SELF-RELIANCE THROUGH THE GIFTS OF LIVESTOCK, PLANTS AND TRAINING IN ENVIRONMENTALLY-SOUND AGRICULTURE. if the organization discontinued its operations or disposed of more than 25% of its assets. 2 Check this box © 3 3 Number of voting members of the governing body (Part VI, line 1a) 4 4 Number of independent voting members of the governing body (Part VI, line 1b) 5 5 Total number of employees (Part V, line 2a) 6 6 Total number of volunteers (estimate if necessary) 7a 7a Total gross unrelated business revenue from Part VIII, line 12, column (C) b Net unrelated business taxable income from Form 990-T, line 34 7b

19 19 430 1,000 930 930

Net Assets or Fund Balances

Expenses

Revenue

Prior Year

8 9 10 11 12

Contributions and grants (Part VIII, line 1h) Program service revenue (Part VIII, line 2g) Investment income (Part VIII, column (A), lines 3, 4, and 7d) Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12 )

13 Grants and similar amounts paid (Part IX, column (A), lines 1–3) 14 Benefits paid to or for members (Part IX, column (A), line 4) 15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 16a Professional fundraising fees (Part IX, column (A), line 11e) 22,281,400 b Total fundraising expenses (Part IX, column (D), line 25) © 17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f) 18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 19 Revenue less expenses. Subtract line 18 from line 12

Current Year

128,440,080 1,341,950 778,191 305,286 130,865,507 54,141,009 0 24,264,052 2,527,251

102,831,459 1,381,196 482,319 1,643,322 106,338,296 65,947,800 0 24,912,912 1,343,135

32,452,423 113,384,735 17,480,772

33,030,635 125,234,482 -18,896,186

Beginning of Year

Part II

End of Year

171,389,367 15,727,773 155,661,594

20 Total assets (Part X, line 16) 21 Total liabilities (Part X, line 26) 22 Net assets or fund balances. Subtract line 21 from line 20

157,516,203 27,730,792 129,785,411

Signature Block Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.

Sign Here

Paid Preparer’s Use Only

© ©

Signature of officer

Date

James Neal, EVP, CFO and Treasurer Type or print name and title

Preparer’s signature

©

Firm’s name (or yours if self-employed), address, and ZIP + 4

Date

©

Check if selfemployed

©

Preparer’s identifying number (see instructions)

EIN

©

Phone no.

© (

May the IRS discuss this return with the preparer shown above? (see instructions) For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.

)

Yes Cat. No. 11282Y

Form

990

No (2008)

Form 990 (2008)

Part III

Page

2

Statement of Program Service Accomplishments (see instructions)

1

Briefly describe the organization’s mission: THE ORGANIZATION'S MISSION IS TO WORK WITH COMMUNITIES TO END HUNGER AND POVERTY AND CARE FOR THE EARTH.

2

Did the organization undertake any significant program services during the year which were not listed on Yes ✔ No the prior Form 990 or 990-EZ? If “Yes,” describe these new services on Schedule O. Did the organization cease conducting, or make significant changes in how it conducts, any program services? Yes ✔ No If “Yes,” describe these changes on Schedule O. Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses. Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.

3

4

4a (Code: ) (Expenses $ See Statement 2

including grants of $

) (Revenue $

)

4b (Code:

) (Expenses $

including grants of $

) (Revenue $

)

4c (Code:

) (Expenses $

including grants of $

) (Revenue $

)

4d Other program services. (Describe in Schedule O.) 0 including grants of $ 0 ) (Revenue $ 0 ) (Expenses $ 4e Total program service expenses © $ 95,153,779 (Must equal Part IX, Line 25, column (B).) Form

990

(2008)

Form 990 (2008)

Part IV

Page

Yes

1 2 3 4 5 6

7 8 9

10 11

3

Checklist of Required Schedules

Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule A Is the organization required to complete Schedule B, Schedule of Contributors? Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C, Part II Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations. Is the organization subject to the section 6033(e) notice and reporting requirement and proxy tax? If “Yes,” complete Schedule C, Part III Did the organization maintain any donor advised funds or any accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete Schedule D, Part I Did the organization receive or hold a conservation easement, including easements to preserve open space, the environment, historic land areas, or historic structures? If “Yes,” complete Schedule D, Part II Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,” complete Schedule D, Part IV Did the organization hold assets in term, permanent, or quasi-endowments? If “Yes,” complete Schedule D, Part V Did the organization report an amount in Part X, lines 10, 12, 13, 15, or 25? If “Yes,” complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable

1 2

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3

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4

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5

6

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7

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8

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9 10

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11

12

Did the organization receive an audited financial statement for the year for which it is completing this return 12 that was prepared in accordance with GAAP? If “Yes,” complete Schedule D, Parts XI, XII, and XIII 13 13 Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E 14a 14a Did the organization maintain an office, employees, or agents outside of the U.S.? b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, 14b business, and program service activities outside the U.S.? If “Yes,” complete Schedule F, Part I 15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any 15 organization or entity located outside the United States? If “Yes,” complete Schedule F, Part II 16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance 16 to individuals located outside the United States? If “Yes,” complete Schedule F, Part III 17 17 Did the organization report more than $15,000 on Part IX, column (A), line 11e? If “Yes,” complete Schedule G, Part I 18 18 Did the organization report more than $15,000 total on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II 19 Did the organization report more than $15,000 on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III 19 20 20 Did the organization operate one or more hospitals? If “Yes,” complete Schedule H 21 Did the organization report more than $5,000 on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II 21 22 Did the organization report more than $5,000 on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III 22 23 Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5? If “Yes,” complete 23 Schedule J 24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to question 25 b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease any tax-exempt bonds? d Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year? 25a 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

No

24a 24b

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔

24c 24d

✔ ✔

25a

✔

b Did the organization become aware that it had engaged in an excess benefit transaction with a disqualified 25b person from a prior year? If “Yes,” complete Schedule L, Part I 26 Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or 26 disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L, Part II 27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, or substantial contributor, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III 27 Form

✔ ✔ ✔

990

(2008)

Form 990 (2008)

Part IV

Page

Yes

28

32 33 34 35 36 37

No

During the tax year, did any person who is a current or former officer, director, trustee, or key employee:

a Have a direct business relationship with the organization (other than as an officer, director, trustee, or employee), or an indirect business relationship through ownership of more than 35% in another entity (individually or collectively with other person(s) listed in Part VII, Section A)? If “Yes,” complete Schedule L, 28a Part IV b Have a family member who had a direct or indirect business relationship with the organization? If “Yes,” 28b complete Schedule L, Part IV c Serve as an officer, director, trustee, key employee, partner, or member of an entity (or a shareholder of a 28c professional corporation) doing business with the organization? If “Yes,” complete Schedule L, Part IV 29 Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M 29 30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified 30 conservation contributions? If “Yes,” complete Schedule M 31

4

Checklist of Required Schedules (continued)

Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N, Part I Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1 Is any related organization a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2 Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2 Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VI

✔ ✔ ✔ ✔ ✔

31

✔

32

✔

33

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34

✔

35

✔

36

✔

37

✔

Form

990

(2008)

Form 990 (2008)

Part V

Page

Yes

1a Enter the number reported in Box 3 of Form 1096, Annual Summary and Transmittal of 162 1a U.S. Information Returns. Enter -0- if not applicable 0 1b b Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable 1c gaming (gambling) winnings to prize winners? 2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax 430 Statements, filed for the calendar year ending with or within the year covered by this return 2a 2b b If at least one is reported on line 2a, did the organization file all required federal employment tax returns? Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file this return. (see instructions) 3a Did the organization have unrelated business gross income of $1,000 or more during the year covered by 3a this return? 3b b If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O 4a At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account, securities account, or other financial account)? b If “Yes,” enter the name of the foreign country: © See Statement 3 See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts. 5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction? c If “Yes,” to question 5a or 5b, did the organization file Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction? 6a Did the organization solicit any contributions that were not tax deductible? b If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? 7 Organizations that may receive deductible contributions under section 170(c). a Did the organization provide goods or services in exchange for any quid pro quo contribution of more than $75? b If “Yes,” did the organization notify the donor of the value of the goods or services provided? c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282? 7d d If “Yes,” indicate the number of Forms 8282 filed during the year e Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? g For all contributions of qualified intellectual property, did the organization file Form 8899 as required? h For contributions of cars, boats, airplanes, and other vehicles, did the organization file a Form 1098-C as required? 8

5

Statements Regarding Other IRS Filings and Tax Compliance

Section 501(c)(3) and other sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a fund maintained by a sponsoring organization, have excess business holdings at any time during the year? Section 501(c)(3) and other sponsoring organizations maintaining donor advised funds. Did the organization make any taxable distributions under section 4966? Did the organization make a distribution to a donor, donor advisor, or related person? Section 501(c)(7) organizations. Enter: 10a Initiation fees and capital contributions included on Part VIII, line 12 10b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities

9 a b 10 a b 11 Section 501(c)(12) organizations. Enter: 11a a Gross income from members or shareholders b Gross income from other sources (Do not net amounts due or paid to other sources against 11b amounts due or received from them.) 12a Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041? b If “Yes,” enter the amount of tax-exempt interest received or accrued during the year 12b

4a

No

✔

✔

✔ ✔

✔

5a 5b

✔ ✔

5c 6a

✔

6b

7a 7b

✔

7c

✔

7e 7f 7g

✔ ✔ ✔

7h

✔

8 9a 9b

12a Form

990

(2008)

Page 6 Governance, Management, and Disclosure (Sections A, B, and C request information about policies not required by the Internal Revenue Code.) Section A. Governing Body and Management

Form 990 (2008)

Part VI

Yes

1a b 2 3 4 5 6 7a b 8

For each “Yes” response to lines 2–7b below, and for a “No” response to lines 8 or 9b below, describe the circumstances, processes, or changes in Schedule O. See instructions. 19 1a Enter the number of voting members of the governing body 19 1b Enter the number of voting members that are independent Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? Did the organization make any significant changes to its organizational documents since the prior Form 990 was filed? Did the organization become aware during the year of a material diversion of the organization’s assets? Does the organization have members or stockholders? Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? Are any decisions of the governing body subject to approval by members, stockholders, or other persons? Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following: The governing body? Each committee with authority to act on behalf of the governing body? Does the organization have local chapters, branches, or affiliates?

a b 9a b If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? 10 11

Was a copy of the Form 990 provided to the organization’s governing body before it was filed? All organizations must describe in Schedule O the process, if any, the organization uses to review the Form 990 Is there any officer, director or trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O

No

2

✔

3 4 5 6

✔ ✔ ✔ ✔

7a 7b

✔ ✔

8a 8b 9a

✔ ✔ ✔

9b 10

✔

11

✔

Section B. Policies Yes

12a Does the organization have a written conflict of interest policy? If “No,” go to line 13 b Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? c Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done 13 Does the organization have a written whistleblower policy? 14 Does the organization have a written document retention and destruction policy? 15 Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision: a The organization’s CEO, Executive Director, or top management official? b Other officers or key employees of the organization? Describe the process in Schedule O. (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? b If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements?

12a

✔

12b

✔

12c 13 14

✔ ✔ ✔

15a 15b

✔

No

✔

✔

16a

16b

Section C. Disclosure 17 18

19 20

List the states with which a copy of this Form 990 is required to be filed ©See Statement 4 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply. ✔ Own website Another’s website Upon request Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public. State the name, physical address, and telephone number of the person who possesses the books and records of the organization: © See Statement 5 Form

990

(2008)

Form 990 (2008)

Part VII

Page

7

Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees 1a Complete this table for all persons required to be listed. Use Schedule J-2 if additional space is needed. ● List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid. ● List the organization’s five current highest compensated employees (other than an officer, director, trustee, or key employee) who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any related organizations. ● List all of the organization’s former officers, key employees, and highest compensated employees who received more than $100,000 of reportable compensation from the organization and any related organizations. ● List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the organization, more than $10,000 of reportable compensation from the organization and any related organizations. List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest compensated employees; and former such persons. Check this box if the organization did not compensate any officer, director, trustee, or key employee.

Former

(F) Estimated amount of other compensation from the organization and related organizations

Key employee

(E) Reportable compensation from related organizations (W-2/1099-MISC)

Highest compensated employee

(D) Reportable compensation from the organization (W-2/1099-MISC)

Officer

(C) Position (check all that apply) Institutional trustee

(B) Average hours per week

Individual trustee or director

(A) Name and Title

See Statement 6

Form

990

(2008)

Form 990 (2008)

Part VII

Page

8

Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)

Former

(F) Estimated amount of other compensation from the organization and related organizations

Key employee

(E) Reportable compensation from related organizations (W-2/1099-MISC)

Highest compensated employee

(D) Reportable compensation from the organization (W-2/1099-MISC)

Officer

(C) Position (check all that apply) Institutional trustee

(B) Average hours per week

Individual trustee or director

(A) Name and title

© 2,031,040 0 330,044 1b Total 2 Total number of individuals (including those in 1a) who received more than $100,000 in reportable compensation from the organization © 11 Yes No

3

Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual

✔

3

4

For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such ✔ 4 individual 5 Did any person listed on line 1a receive or accrue compensation from any unrelated organization for services rendered to the organization? If “Yes,” complete Schedule J for such person 5 Section B. Independent Contractors 1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization. (A) Name and business address

(B) Description of services

✔

(C) Compensation

See Statement 7

2

Total number of independent contractors (including those in 1) who received more than $100,000 in compensation from the organization © 38 Form

990

(2008)

Form 990 (2008)

Part VIII

Page

Program Service Revenue

Contributions, gifts, grants and other similar amounts

(A) Total revenue

(B) Related or exempt function revenue

(C) Unrelated business revenue

(D) Revenue excluded from tax under sections 512, 513, or 514

704,487 0 32,672 0 313,468

1a Federated campaigns 1b Membership dues 1c Fundraising events 1d Related organizations Government grants (contributions) 1e All other contributions, gifts, grants, and similar amounts not included above 1f g Noncash contributions included in lines 1a-1f: $ h Total. Add lines 1a–1f

1a b c d e f

101,780,832

577,057 ©

102,831,459

Business Code

2a b c d e f g 3 4 5

Education Revenue Educational Study Tours Conference Center

900099 900099 900099

912,869 422,348 45,979

912,869 422,348 45,979

0 0 0

0 0 0

0 1,381,196

0

0

0

©

Investment income (including dividends, interest, and © other similar amounts) Income from investment of tax-exempt bond proceeds © © Royalties

468,177 7,853 3,400

0 0 0

0 0 0

468,177 7,853 3,400

242,882

0

930

241,952

6,289

0

0

6,289

-31,354

0

0

-31,354

0

0

0

0

260,048

0

0

260,048

1,088,126 63,862 16,358 0 1,168,346

1,088,126 63,862 16,358 0

0 0 0 0

0 0 0 0

106,338,296

2,549,542

930

956,365

All other program service revenue Total. Add lines 2a–2f

(i) Real

6a b c d

Gross Rents Less: rental expenses Rental income or (loss) Net rental income or (loss)

7a Gross amount from sales of assets other than inventory

(ii) Personal

0 0 0

243,402 520 242,882

©

(i) Securities

b Less: cost or other basis and sales expenses c Gain or (loss) d Net gain or (loss) Other Revenue

9

Statement of Revenue

(ii) Other

537,162

19,855

548,007 -10,845

2,721 17,134 ©

8a Gross income from fundraising 32,672 events (not including $ of contributions reported on line 1c). See Part IV, line 18 a b b Less: direct expenses c Net income or (loss) from fundraising events

65,159 96,513 ©

9a Gross income from gaming activities. See Part IV, line 19 a b Less: direct expenses b c Net income or (loss) from gaming activities 10a Gross sales of inventory, less a returns and allowances b b Less: cost of goods sold c Net income or (loss) from sales of inventory Miscellaneous Revenue

11a b c d e 12

0 0 ©

606,689 346,641 ©

Business Code

Miscellaneous International In-Country Revenue 900099 Livestock and Agricultural Revenue 110000 Miscellaneous 900099 All other revenue © Total. Add lines 11a–11d Total Revenue. Add lines 1h, 2g, 3, 4, 5, 6d, 7d, 8c, © 9c, 10c, and 11e

Form

990

(2008)

Form 990 (2008)

Part IX

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) but are not required to complete columns (B), (C), and (D). Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII. 1 2 3

4 5 6

7 8 9 10 11 a b c d e f g 12 13 14 15 16 17 18 19 20 21 22 23 24

Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21 Grants and other assistance to individuals in the U.S. See Part IV, line 22 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16 Benefits paid to or for members Compensation of current officers, directors, trustees, and key employees Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) Other salaries and wages Pension plan contributions (include section 401(k) and section 403(b) employer contributions) Other employee benefits Payroll taxes Fees for services (non-employees): Management Legal Accounting Lobbying Professional fundraising services. See Part IV, line 17 Investment management fees Other Advertising and promotion Office expenses Information technology Royalties Occupancy Travel Payments of travel or entertainment expenses for any federal, state, or local public officials Conferences, conventions, and meetings Interest Payments to affiliates Depreciation, depletion, and amortization Insurance Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.) Printing and other media expense Postage, shipping and freight Communications charges Equipment Volunteer

a b c d e f All other expenses 25 Total functional expenses. Add lines 1 through 24f 26 Joint Costs. Check here © ✔ if following SOP 98-2. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation

(A) Total expenses

(B) Program service expenses

(C) Management and general expenses

(D) Fundraising expenses

3,347,328

3,347,328

0

0

62,600,472 0

62,600,472 0

3,183,020

1,783,912

903,906

495,202

0 16,466,083

0 10,215,510

0 2,315,897

0 3,934,676

1,486,470 2,394,690 1,382,649

951,135 1,505,781 835,662

202,421 350,849 225,604

332,914 538,060 321,383

0 631,389 1,157,962 0 1,343,135 38,972 5,143,737 2,436,681 508,129 678,144 0 1,606,652 1,859,246

0 347,848 580,183 0

0 244,243 575,778 0

0 2,049,010 867,458 376,162 71,960 0 810,195 1,364,107

38,972 236,823 48,881 51,732 584,364 0 406,265 157,386

0 39,298 2,001 0 1,343,135 0 2,857,904 1,520,342 80,235 21,820 0 390,192 337,753

0 287,782 565,949 0 2,073,290 471,971

0 187,767 83,049 0 1,049,943 281,248

0 24,594 404,341 0 457,936 113,167

0 75,421 78,559 0 565,411 77,556

7,795,410 4,944,890 448,349 497,141 269,702 1,615,239 125,234,482

2,969,998 1,587,626 262,560 403,849 261,355 359,661 95,153,779

64,685 42,586 69,230 20,342 340 258,961 7,799,303

4,760,727 3,314,678 116,559 72,950 8,007 996,617 22,281,400

12,915,843

4,649,487

161,630

8,104,726 Form

990

(2008)

Form 990 (2008)

Part X

Page

(A) Beginning of year

1 2 3 4 5

11

Balance Sheet

Cash—non-interest-bearing Savings and temporary cash investments Pledges and grants receivable, net Accounts receivable, net Receivables from current and former officers, directors, trustees, key employees, or other related parties. Complete Part II of Schedule L

(B) End of year

13,780,770 33,234,219 1,956,230 3,317,715

1 2 3 4

19,708,348 29,169,243 614,235 2,306,183

0

5

0

0 0 525,169 2,808,044

6 7 8 9

0 0 811,074 1,098,106

Liabilities

Assets

6

Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of Schedule L Notes and loans receivable, net 7 8 Inventories for sale or use 9 Prepaid expenses and deferred charges 79,114,139 10a Land, buildings, and equipment: cost basis 10a b Less: accumulated depreciation. Complete 16,893,035 10b Part VI of Schedule D Investments—publicly traded securities 11 12 Investments—other securities. See Part IV, line 11 13 Investments—program-related. See Part IV, line 11 14 Intangible assets 15 Other assets. See Part IV, line 11 Total assets. Add lines 1 through 15 (must equal line 34) 16 17 18 19 20 21

Accounts payable and accrued expenses Grants payable Deferred revenue Tax-exempt bond liabilities Escrow account liability. Complete Part IV of Schedule D

22

Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part II of Schedule L Secured mortgages and notes payable to unrelated third parties Unsecured notes and loans payable Other liabilities. Complete Part X of Schedule D Total liabilities. Add lines 17 through 25

Net Assets or Fund Balances

23 24 25 26

Organizations that follow SFAS 117, check here complete lines 27 through 29, and lines 33 and 34. 27 28 29

30 31 32 33 34

Part XI

©

62,221,104 1,516,202 0

52,769,350 10c 12,516,668 11 0 12 13 14 50,481,202 15 171,389,367 16 8,124,480 17 0 18 0 19 0 20 21

0 40,071,708 157,516,203 8,015,347 0 0 19,300,000 0

0 22 7,603,293 23 24 0 25 15,727,773 26

0 0 0 415,445 27,730,792

88,334,856 27 18,037,242 28 49,289,496 29

61,649,799 16,453,338 51,682,274

30 31 32 155,661,594 33 171,389,367 34

129,785,411 157,516,203

✔ and

Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.

©

Capital stock or trust principal, or current funds Paid-in or capital surplus, or land, building, or equipment fund Retained earnings, endowment, accumulated income, or other funds Total net assets or fund balances Total liabilities and net assets/fund balances

Financial Statements and Reporting Yes

✔ Accrual Cash Other Accounting method used to prepare the Form 990: Were the organization’s financial statements compiled or reviewed by an independent accountant? Were the organization’s financial statements audited by an independent accountant? If “Yes” to lines 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant? 3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? b If “Yes,” did the organization undergo the required audit or audits?

1 2a b c

No

✔ ✔

2a 2b 2c

✔

3a 3b Form

990

(2008)

SCHEDULE A (Form 990 or 990-EZ)

OMB No. 1545-0047

Public Charity Status and Public Support

2008

To be completed by all section 501(c)(3) organizations and section 4947(a)(1) nonexempt charitable trusts. Department of the Treasury Internal Revenue Service

© Attach

to Form 990 or Form 990-EZ.

© See

Open to Public Inspection

separate instructions.

Name of the organization

Employer identification number

HEIFER PROJECT INTERNATIONAL

35

Part I

1019477

Reason for Public Charity Status (All organizations must complete this part.) (see instructions)

The organization is not a private foundation because it is: (Please check only one organization.) A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i). 1 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.) 2 A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii). (Attach Schedule H.) 3 4 A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital’s name, city, and state: An organization operated for the benefit of a college or university owned or operated by a governmental unit described in 5 section 170(b)(1)(A)(iv). (Complete Part II.) A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v). 6 7 ✔ An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.) A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.) 8 9 An organization that normally receives: (1) more than 331⁄ 3 % of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331⁄ 3 % of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.) 10 11

e

f g

h

An organization organized and operated exclusively to test for public safety. See section 509(a)(4). (see instructions) An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that describes the type of supporting organization and complete lines 11e through 11h. a b c d Type I Type II Type III–Functionally integrated Type III–Other By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). If the organization received a written determination from the IRS that it is a Type I, Type II, or Type organization, check this box Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons? (i) A person who directly or indirectly controls, either alone or together with persons described in (ii) and (iii) below, the governing body of the supported organization? (ii) A family member of a person described in (i) above? (iii) A 35% controlled entity of a person described in (i) or (ii) above? Provide the following information about the organizations the organization supports.

(i) Name of supported organization

(ii) EIN

(iii) Type of organization (described on lines 1–9 above or IRC section (see instructions))

(iv) Is the organization in col. (i) listed in your governing document?

Yes

No

(v) Did you notify the organization in col. (i) of your support?

Yes

No

(vi) Is the organization in col. (i) organized in the U.S.?

Yes

III supporting

Yes

No

11g(i) 11g(ii) 11g(iii) (vii) Amount of support

No

Total For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2008

Schedule A (Form 990 or 990-EZ) 2008

2

Page

Part II

Support Schedule for Organizations Described in Sections 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I.) Section A. Public Support Calendar year (or fiscal year beginning in) 1

2

3

4 5

6

©

Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.")

(a) 2004

(c) 2006

(d) 2007

(f) Total

(e) 2008

75,908,559

95,598,037

109,693,083

134,198,293

102,831,459

518,229,431

0

0

0

0

0

0

0 75,908,559

0 95,598,037

0

0

0

0

109,693,083

134,198,293

102,831,459

518,229,431

Tax revenues levied for the organization’s benefit and either paid to or expended on its behalf The value of services or facilities furnished by a governmental unit to the organization without charge Total. Add lines 1-3 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f) Public support. Subtract line 5 from line 4.

(b) 2005

6,730,061 511,499,370

Section B. Total Support Calendar year (or fiscal year beginning in) 7 8

9

10

11 12 13

©

Amounts from line 4 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources Net income from unrelated business activities, whether or not the business is regularly carried on

(a) 2004

(b) 2005

(c) 2006

(d) 2007

(e) 2008

(f) Total

75,908,559

95,598,037

109,693,083

134,198,293

102,831,459

518,229,431

364,854

1,124,862

2,103,993

782,771

467,591

4,844,071

0

0

1,111

-2,957

930

-916

Other income. Do not include gain or loss from the sale of capital assets 13,890 23,860 27,616 20,319 18,440 104,125 (Explain in Part IV.) 523,176,711 Total support. Add lines 7 through 10 13,957,004 12 Gross receipts from related activities, etc. (see instructions) First five years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) © organization, check this box and stop here

Section C. Computation of Public Support Percentage 14

Public support percentage for 2008 (line 6, column (f) divided by line 11, column (f))

14 15

97.77 % 98.83 %

15 Public support percentage from 2007 Schedule A, Part IV-A, line 26f 16a 331⁄ 3 % support test—2008. If the organization did not check the box on line 13, and line 14 is 331⁄ 3 % or more, check this box © ✔ and stop here. The organization qualifies as a publicly supported organization b 331⁄ 3 % support test—2007. If the organization did not check a box on line 13 or 16a, and line 15 is 331⁄ 3 % or more, check this © box and stop here. The organization qualifies as a publicly supported organization 17a 10%-facts-and-circumstances test—2008. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more, and if the organization meets the “facts-and-circumstances” test, check this box and stop here. Explain in Part IV how the © organization meets the “facts-and-circumstances” test. The organization qualifies as a publicly supported organization b 10%-facts-and-circumstances test—2007. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or more, and if the organization meets the “facts-and-circumstances” test, check this box and stop here. Explain in Part IV how the © organization meets the “facts-and-circumstances” test. The organization qualifies as a publicly supported organization 18 Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions © Schedule A (Form 990 or 990-EZ) 2008

Schedule A (Form 990 or 990-EZ) 2008

Page

3

Part III

Support Schedule for Organizations Described in Section 509(a)(2) (Complete only if you checked the box on line 9 of Part I.) Section A. Public Support Calendar year (or fiscal year beginning in) 1

2

©

(b) 2005

(c) 2006

(d) 2007

(e) 2008

(f) Total

(a) 2004

(b) 2005

(c) 2006

(d) 2007

(e) 2008

(f) Total

Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization’s tax-exempt purpose

3

Gross receipts from activities that are not an unrelated trade or business under section 513

4

Tax revenues levied for the organization’s benefit and either paid to or expended on its behalf

5

The value of services or facilities furnished by a governmental unit to the organization without charge Total. Add lines 1-5

6

(a) 2004

7a Amounts included on lines 1, 2, and 3 received from disqualified persons b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of 1% of the total of lines 9, 10c, 11, and 12 for the year or $5,000 c Add lines 7a and 7b 8 Public support (Subtract line 7c from line 6.)

Section B. Total Support Calendar year (or fiscal year beginning in)

©

9 Amounts from line 6 10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975 c Add lines 10a and 10b 11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on 12

Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)

13

Total support. (Add lines 9, 10c, 11, and 12.)

14

First five years. If the Form 990 is for the organization’s first, second, third, fourth, or fifth tax year as a section 501(c)(3) © organization, check this box and stop here

Section C. Computation of Public Support Percentage 15 16

Public support percentage for 2008 (line 8, column (f) divided by line 13, column (f)) Public support percentage from 2007 Schedule A, Part IV-A, line 27g

15 16

% %

Section D. Computation of Investment Income Percentage % 17 17 Investment income percentage for 2008 (line 10c, column (f) divided by line 13, column (f)) % 18 18 Investment income percentage from 2007 Schedule A, Part IV-A, line 27h 19a 331⁄ 3 % support tests—2008. If the organization did not check the box on line 14, and line 15 is more than 331⁄ 3 %, and line

17 is not more than 331⁄ 3 %, check this box and stop here. The organization qualifies as a publicly supported organization © b 331⁄ 3 % support tests—2007. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 331⁄ 3 %, and line 18 is not more than 331⁄ 3 %, check this box and stop here. The organization qualifies as a publicly supported organization © 20 Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions © Schedule A (Form 990 or 990-EZ) 2008

Schedule A (Form 990 or 990-EZ) 2008

Part IV

Page

4

Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Provide any other additional information. (see instructions)

Other income is miscellaneous.

Schedule A (Form 990 or 990-EZ) 2008

SCHEDULE D (Form 990) Department of the Treasury Internal Revenue Service

OMB No. 1545-0047

Supplemental Financial Statements

2008

©

Open to Public Inspection

Attach to Form 990. To be completed by organizations that answered “Yes,” to Form 990, Part IV, line 6, 7, 8, 9, 10, 11, or 12.

Name of the organization

Employer identification number

HEIFER PROJECT INTERNATIONAL

35

Part I

1019477

Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered “Yes” to Form 990, Part IV, line 6. (a) Donor advised funds

(b) Funds and other accounts

1 2 3 4 5

Total number at end of year Aggregate contributions to (during year) Aggregate grants from (during year) Aggregate value at end of year Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds are the organization’s property, subject to the organization’s exclusive legal control?

Yes

No

6

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be used only for charitable purposes and not for the benefit of the donor or donor advisor or other impermissible private benefit?

Yes

No

Part II 1

2

Conservation Easements. Complete if the organization answered “Yes” to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply). Preservation of an historically important land area Preservation of land for public use (e.g., recreation or pleasure) Preservation of certified historic structure Protection of natural habitat Preservation of open space Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year. Held at the End of the Year

a b c d 3 4 5 6 7 8 9

2a 2b 2c 2d

Total number of conservation easements Total acreage restricted by conservation easements Number of conservation easements on a certified historic structure included in (a) Number of conservation easements included in (c) acquired after 8/17/06

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during the taxable year © Number of states where property subject to conservation easement is located © Does the organization have a written policy regarding the periodic monitoring, inspection, violations, and enforcement of the conservation easements it holds? Yes No Staff or volunteer hours devoted to monitoring, inspecting, and enforcing easements during the year © Amount of expenses incurred in monitoring, inspecting, and enforcing easements during the year © $ Does each conservation easement reported on line 2(d) above satisfy the requirements of section Yes No 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes the organization’s accounting for conservation easements.

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets. Complete if the organization answered “Yes” to Form 990, Part IV, line 8.

1a If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of

art, historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIV, the text of the footnote to its financial statements that describes these items. b If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,

historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to these items: © $ (i) Revenues included in Form 990, Part VIII, line 1 © $ (ii) Assets included in Form 990, Part X If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the following amounts required to be reported under SFAS 116 relating to these items: © $ a Revenues included in Form 990, Part VIII, line 1 © $ b Assets included in Form 990, Part X

2

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 52283D

Schedule D (Form 990) 2008

Page 2 Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Schedule D (Form 990) 2008

Part III

Using the organization’s accession and other records, check any of the following that are a significant use of its collection items (check all that apply):

3

a Public exhibition d Loan or exchange programs e b Other Scholarly research c Preservation for future generations 4 Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in

Part XIV. During the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?

5

Part IV

Yes

No

Trust, Escrow and Custodial Arrangements. Complete if 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 X?

Yes

No

Yes

No

b If “Yes,” explain the arrangement in Part XIV and complete the following table: Amount c d e f 2a b

1c

Beginning balance Additions during the year Distributions during the year Ending balance Did the organization include an amount on Form 990, Part X, line 21? If “Yes,” explain the arrangement in Part XIV.

Part V

1d 1e 1f

Endowment Funds. Complete if 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

Beginning of year balance Contributions Investment earnings or losses Grants or scholarships Other expenditures for facilities and programs f Administrative expenses g End of year balance

1a b c d e

Provide the estimated percentage of the year end balance held as: % Board designated or quasi-endowment © Permanent endowment © % % Term endowment © 3a Are there endowment funds not in the possession of the organization that are held and administered for the organization by: (i) unrelated organizations (ii) related organizations b If “Yes” to 3a(ii), are the related organizations listed as required on Schedule R? 4 Describe in Part XIV the intended uses of the organization’s endowment funds. 2 a b c

Part VI

Yes

No

3a(i) 3a(ii) 3b

Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10. Description of investment

(a) Cost or other basis (investment)

(b) Cost or other basis (other)

0 12,444,154 1a Land 0 43,700,167 b Buildings 0 64,022 c Leasehold improvements 0 13,203,263 d Equipment 0 9,702,533 e Other Total. Add lines 1a–1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)

(c) Depreciation

(d) Book value

5,400,452 11,470 6,446,000 5,035,113 ©

12,444,154 38,299,715 52,552 6,757,263 4,667,420 62,221,104

Schedule D (Form 990) 2008

Schedule D (Form 990) 2008

Part VII

Page

(a) Description of security or category (including name of security)

(c) Method of valuation: Cost or end-of-year market value

(b) Book value

Financial derivatives and other financial products Closely-held equity interests Other

0 0

Total. (Column (b) should equal Form 990, Part X, col. (B) line 12.) ©

0

Part VIII

Investments—Program Related. See Form 990, Part X, line 13.

(a) Description of investment type

Total. (Column (b) should equal Form 990, Part X, col. (B) line 13.)

Part IX

(b) Book value

(c) Method of valuation: Cost or end-of-year market value

©

Other Assets. See Form 990, Part X, line 15. (a) Description

(b) Book value

Interest in Net Assets of Heifer International Foundation

$40,071,708

©

Total. (Column (b) should equal Form 990, Part X, col. (B) line 15.)

Part X

3

Investments—Other Securities. See Form 990, Part X, line 12.

40,071,708

Other Liabilities. See Form 990, Part X, line 25. (a) Description of liability

(b) Amount

Federal income taxes Refundable advances

Total. (Column (b) should equal Form 990, Part X, col. (B) line 25.)

$415,445

©

415,445 In Part XIV, provide the text of the footnote to the organization’s financial statements that reports the organization’s liability for uncertain tax positions under FIN 48. Schedule D (Form 990) 2008

Schedule D (Form 990) 2008

Part XI 1 2 3 4 5 6 7 8 9 10

Page

1 2 a b c d e 3 4

Reconciliation of Revenue per Audited Financial Statements With Revenue per Return

Total revenue, gains, and other support per audited financial statements Amounts included on line 1 but not on Form 990, Part VIII, line 12: 2a Net unrealized gains on investments 2b Donated services and use of facilities 2c Recoveries of prior year grants 2d Other (Describe in Part XIV) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part VIII, line 12, but not on line 1: 4a Investment expenses not included on Form 990, Part VIII, line 7b 4b Other (Describe in Part XIV) Add lines 4a and 4b

a b c 5 Total revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.)

Part XIII 1 2 a b c d e 3 4 a b c 5

1

98,237,135

2e 3

-8,101,161 106,338,296

4c 5

0 106,338,296

2,406 0 0 -8,103,567

0 0

Reconciliation of Expenses per Audited Financial Statements With Expenses per Return

Total expenses and losses per audited financial statements Amounts included on line 1 but not on Form 990, Part IX, line 25: Donated services and use of facilities Prior year adjustments Losses reported on Form 990, Part IX, line 25 Other (Describe in Part XIV) Add lines 2a through 2d Subtract line 2e from line 1 Amounts included on Form 990, Part IX, line 25, but not on line 1: Investment expenses not included on Form 990, Part VIII, line 7b Other (Describe in Part XIV) Add lines 4a and 4b Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part

Part XIV

106,338,296 125,234,482 -18,896,186 2,406 0 0 2,857,081 -9,839,484 -6,979,997 -25,876,183

1 2 3 4 5 6 7 8 9 10

Total revenue (Form 990, Part VIII, column (A), line 12) Total expenses (Form 990, Part IX, column (A), line 25) Excess or (deficit) for the year. Subtract line 2 from line 1 Net unrealized gains (losses) on investments Donated services and use of facilities Investment expenses Prior period adjustments Other (Describe in Part XIV) Total adjustments (net). Add lines 4–8 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9

Part XII

4

Reconciliation of Change in Net Assets from Form 990 to Financial Statements

2a 2b 2c 2d

4a 4b I, line 18.)

1

125,234,482

2e 3

0 125,234,482

4c 5

0 125,234,482

0 0 0 0

0 0

Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part IV, lines 1b and 2b; Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Schedule D, Part X - EFFECTIVE JULY 1, 2009, THE ORGANIZATION WILL ADOPT THE PROVISIONS OF FIN 48, AS REQUIRED. THE ORGANIZATION IS CURRENTLY EVALUATING THE INTERPRETATION TO DETERMINE THE IMPACT THE INTERPRETATION WILL HAVE ON ITS FINANCIAL POSITION, RESULTS OF OPERATION, OR LIQUIDITY.

Schedule D, Part XI, Line 8 - CHANGE IN INTEREST IN NET ASSETS OF HEIFER INTERNATIONAL FOUNDATION ($8,103,567) FOREIGN CURRENCY TRANSLATION ADJUSTMENT ($1,735,917)

Schedule D, Part XII, Line 2d - CHANGE IN INTEREST IN NET ASSETS OF HEIFER INTERNATIONAL FOUNDATION

Schedule D (Form 990) 2008

Page

Schedule D (Form 990) 2008

5

Part XIV - Supplemental Information (Continued)

Schedule D (Form 990) 2008

Schedule F (Form 990)

Statement of Activities Outside the United States ©

Department of the Treasury Internal Revenue Service

2008 Open to Public Inspection

Attach to Form 990. Complete if the organization answered “Yes” to Form 990, Part IV, line 14b, line 15, or line 16.

Employer identification number

Name of the organization

HEIFER PROJECT INTERNATIONAL

Part I

OMB No. 1545-0047

35

1019477

General Information on Activities Outside the United States. Complete if the organization answered “Yes” to Form 990, Part IV, line 14b.

1

For grantmakers. Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees’ eligibility for the grants or assistance, and the selection criteria used to award ✔ Yes the grants or assistance?

2

For grantmakers. Describe in Part IV the organization’s procedures for monitoring the use of grant funds outside the United States.

3

Activities per Region. (Use Schedule F-1 (Form 990) if additional space is needed.) (a) Region

(b) Number of offices in the region

(c) Number of employees or agents in region

(d) Activities conducted in region (by type) (i.e., fundraising, program services, grants to recipients located in the region)

No

(e) If activity listed in (d) is a program service, describe specific type of service(s) in region

(f) Total expenditures in region

Cat. No. 50082W

Schedule F (Form 990) 2008

See Statement 8

Totals

©

66

1005

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

62,600,472

2 Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered “Yes” to Form 990, © Part IV, line 15, for any recipient who received more than $5,000. Check this box if no one recipient received more than $5,000 Use Schedule F-1 (Form 990) if additional space is needed.

Schedule F (Form 990) 2008

Part II

1

(a) Name of organization

Page

(b) IRS code section and EIN (if applicable)

(c) Region

(d) Purpose of grant

(e) Amount of cash grant

(f) Manner of cash disbursement

(g) Amount of non-cash assistance

(h) Description of non-cash assistance

(i) Method of valuation (book, FMV, appraisal, other)

See Statement 9

2 3

Enter total number of organizations that are recognized as charities by the foreign country or for which the grantee or counsel has © provided a section 501(c)(3) equivalency letter © Enter total number of other organizations or entities

5 0 Schedule F (Form 990) 2008

Page 3 Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered “Yes” to Form 990, Part IV, line 16. Use Schedule F-1 (Form 990) if additional space is needed.

Schedule F (Form 990) 2008

Part III

(a) Type of grant or assistance

(b) Region

(c) Number of recipients

(d) Amount of cash grant

(e) Manner of cash disbursement

(f) Amount of non-cash assistance

(g) Description (h) Method of of non-cash valuation assistance (book, FMV, appraisal, other)

Schedule F (Form 990) 2008

Schedule F (Form 990) 2008

Part IV

Page

4

Supplemental Information

Complete this part to provide the information required in Part I, line 2, and any other additional information. Schedule F, Part I, Line 2 - HEIFER PROJECT INTERNATIONAL ("HPI") MONITORS GRANTS IN ACCORDANCE WITH THE LETTER OF AGREEMENT BETWEEN HPI AND GRANTEE. THE GRANTEE IS REQUIRED TO SUBMIT FINANCIAL AND PROGRESS REPORTS EVERY YEAR ACCORDING TO A FORMAT PROVIDED BY HPI. THE GRANTEE SHALL MAINTAIN SEPARATE FINANCIAL STATEMENTS AND RECORDS FOR THE ACTIVITIES KEPT IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. WRITTEN RECEIPTS FOR ALL EXPENSES AND OTHER SUPPORTING DOCUMENTS ARE REQUIRED TO BE KEPT ON FILE FOR AT LEAST SIX YEARS AFTER THE END OF THE GRANT PERIOD.

Schedule F (Form 990) 2008

Supplemental Information Regarding Fundraising or Gaming Activities

SCHEDULE G (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service

©

OMB No. 1545-0047

Attach to Form 990 or Form 990-EZ. Must be completed by organizations that answer “Yes” to Form 990, Part IV, lines 17, 18, or 19, and by organizations that enter more than $15,000 on Form 990-EZ, line 6a.

2008 Open To Public Inspection

Name of the organization

Employer identification number

HEIFER PROJECT INTERNATIONAL

35

Part I 1 a b c d

1019477

Fundraising Activities. Complete if the organization answered “Yes” to Form 990, Part IV, line 17.

Indicate whether the organization raised funds through any of the following activities. Check all that apply. ✔ Mail solicitations e ✔ Solicitation of non-government grants ✔ Email solicitations f ✔ Solicitation of government grants ✔ Phone solicitations g ✔ Special fundraising events ✔ In-person solicitations

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? ✔ Yes

No

b If “Yes,” list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is to be compensated at least $5,000 by the organization. Form 990-EZ filers are not required to complete this table. (i) Name of individual or entity (fundraiser)

(ii) Activity

(iii) Did fundraiser have custody or control of contributions?

Yes

(iv) Gross receipts from activity

(v) Amount paid to (or retained by) fundraiser listed in col. (i)

(vi) Amount paid to (or retained by) organization

No

See Statement 10

Total

©

40,414,625

1,332,873

39,081,752

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. See Statement 11

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2008

Schedule G (Form 990 or 990-EZ) 2008

Part II

Page

(a) Event #1

(c) Other Events

(b) Event #2

Grazing on the Green Harvest Festival Revenue

(event type)

1

Gross receipts

2

Less: Charitable contributions Gross revenue (line 1 minus line 2)

Direct Expenses

3

Revenue

(d) Total Events (Add col. (a) through col. (c))

16

(event type)

(total number)

48,697

6,964

42,170

97,831

15,312

0

17,360

32,672

33,385

6,964

24,810

65,159

4

Cash prizes

0

0

0

0

5

Non-cash prizes

0

0

0

0

6

Rent/facility costs

0

0

0

0

7

Other direct expenses

35,252

0

61,261

96,513

8 9

Direct expense summary. Add lines 4 through 7 in column (d) Net income summary. Combine lines 3 and 8 in column (d)

Part III

Direct Expenses

2

Fundraising Events. Complete if the organization answered “Yes” to Form 990, Part IV, line 18, or reported more than $15,000 on Form 990-EZ, line 6a. List events with gross receipts greater than $5,000.

©

(

96,513 ) -31,354

©

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. (a) Bingo

1

Gross revenue

2

Cash prizes

3

Non-cash prizes

4

Rent/facility costs

5

Other direct expenses Yes No

(b) Pull tabs/Instant bingo/progressive bingo

%

Yes No

%

(c) Other gaming

Yes No

(d) Total gaming (Add col. (a) through col. (c))

%

6

Volunteer labor

7

Direct expense summary. Add lines 2 through 5 in column (d)

©

8

Net gaming income summary. Combine lines 1 and 7 in column (d)

©

(

)

Yes No 9 Enter the state(s) in which the organization operates gaming activities: a Is the organization licensed to operate gaming activities in each of these states? b If “No,” Explain:

9a

10a Were any of the organization’s gaming licenses revoked, suspended or terminated during the tax year? b If “Yes,” Explain:

11 12

Does the organization operate gaming activities with nonmembers? Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity formed to administer charitable gaming?

10a

11 12

Schedule G (Form 990 or 990-EZ) 2008

Schedule G (Form 990 or 990-EZ) 2008

Page

3

Yes No 13 a b 14

Indicate the percentage of gaming activity operated in: % 13a The organization’s facility % 13b An outside facility Provide the name and address of the person who prepares the organization’s gaming/special events books and records: Name

©

Address

©

15a Does the organization have a contract with a third party from whom the organization receives gaming revenue? b If “Yes,” enter the amount of gaming revenue received by the organization © $ and the . amount of gaming revenue retained by the third party © $ c If “Yes,” enter name and address: Name

©

Address 16

15a

©

Gaming manager information: Name

©

Gaming manager compensation

©

Description of services provided

©

Director/officer

$

Employee

Independent contractor

17 Mandatory distributions: a Is the organization required under state law to make charitable distributions from the gaming proceeds to retain the state gaming license? b Enter the amount of distributions required under state law distributed to other exempt organizations or spent in the organization’s own exempt activities during the tax year © $

17a

Schedule G (Form 990 or 990-EZ) 2008

Grants and Other Assistance to Organizations, Governments, and Individuals in the U.S.

SCHEDULE I (Form 990) ©

Department of the Treasury Internal Revenue Service Name of the organization

1 2

Open to Public Inspection Employer identification number

35

1019477

General Information on Grants and Assistance

Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees’ eligibility for the grants or assistance, and the selection criteria used to award the grants or assistance? ✔ Yes Describe in Part IV the organization’s procedures for monitoring the use of grant funds in the United States.

Part II

1

2008

Complete if the organization answered “Yes,” on Form 990, Part IV, lines 21 or 22. © Attach to Form 990.

HEIFER PROJECT INTERNATIONAL

Part I

OMB No. 1545-0047

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered “Yes” on Form 990, Part IV, line 21, for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use Part IV and Schedule I-1 (Form 990) if additional space is needed

(a) Name and address of organization or government

(b) EIN

(c) IRC section if applicable

(d) Amount of cash grant

(e) Amount of non-cash assistance

(f) Method of valuation (book, FMV, appraisal, other)

(g) Description of non-cash assistance

No

©

(h) Purpose of grant or assistance

See Statement 12

2 3

©

Enter total number of section 501(c)(3) and government organizations Enter total number of other organizations

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

©

Cat. No. 50055P

18 7 Schedule I (Form 990) 2008

Schedule I (Form 990) 2008

Part III

(a) Type of grant or assistance

Part IV

Page

2

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered “Yes” on Form 990, Part IV, line 22. Use Schedule I-1 (Form 990) if additional space is needed. (b) Number of recipients

(c) Amount of cash grant

(d) Amount of non-cash assistance

(e) Method of valuation (book, FMV, appraisal, other)

(f) Description of non-cash assistance

Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.

Schedule I, Part I, Line 2 - HEIFER PROJECT INTERNATIONAL ("HPI") MONITORS GRANTS IN ACCORDANCE WITH THE LETTER OF AGREEMENT BETWEEN HPI AND GRANTEE. THE GRANTEE IS REQUIRED TO SUBMIT FINANCIAL AND PROGRESS REPORTS EVERY YEAR ACCORDING TO A FORMAT PROVIDED BY HPI. THE GRANTEE SHALL MAINTAIN SEPARATE FINANCIAL STATEMENTS AND RECORDS FOR THE ACTIVITIES KEPT IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. WRITTEN RECEIPTS FOR ALL EXPENSES AND OTHER SUPPORTING DOCUMENTS ARE REQUIRED TO BE KEPT ON FILE FOR AT LEAST SIX YEARS AFTER THE END OF THE GRANT PERIOD.

Schedule I (Form 990) 2008

SCHEDULE J (Form 990) Department of the Treasury Internal Revenue Service

Compensation Information

OMB No. 1545-0047

2008

For certain Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees © Attach to Form 990. To be completed by organizations that answered “Yes” to Form 990, Part IV, line 23.

Open to Public Inspection

Name of the organization

Employer identification number

HEIFER PROJECT INTERNATIONAL

35

Part I

1019477

Questions Regarding Compensation Yes

No

1a Check the appropriate box(es) if the organization provided any of the following to or for a person listed in Form 990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items. First-class or charter travel Travel for companions Tax indemnification and gross-up payments Discretionary spending account

Housing allowance or residence for personal use Payments for business use of personal residence Health or social club dues or initiation fees Personal services (e.g., maid, chauffeur, chef)

b If line 1a is checked, did the organization follow a written policy regarding payment or reimbursement or provision of all of the expenses described above? If “No,” complete Part III to explain 2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all officers, directors, trustees, and the CEO/Executive Director, regarding the items checked in line 1a? 3

Indicate which, if any, of the following the organization uses to establish the compensation of the organization’s CEO/Executive Director. Check all that apply. ✔ Compensation committee Written employment contract ✔ Compensation survey or study ✔ Independent compensation consultant ✔ Approval by the board or compensation committee ✔ Form 990 of other organizations

4 a b c

During the year, did any person listed in Form 990, Part VII, Section A, line 1a: 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 of lines 4a–c, list the persons and provide the applicable amounts for each item in Part III.

5 a b 6 a b 7 8

Only 501(c)(3) and 501(c)(4) organizations must complete lines 5–8. For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the revenues of: The organization? Any related organization? If “Yes” to line 5a or 5b, describe in Part III. For persons listed in Form 990, Part VII, Section A, line 1a, did the organization pay or accrue any compensation contingent on the net earnings of: The organization? Any related organization? If “Yes” to line 6a or 6b, describe in Part III. For persons listed in Form 990, Part VII, Section A, line 1a, did the organization provide any non-fixed payments not described in lines 5 and 6? If “Yes,” describe in Part III Were any amounts reported in Form 990, Part VII, paid or accrued pursuant to a contract that was subject to the initial contract exception described in Regs. section 53.4958-4(a)(3)? If “Yes,” describe in Part III

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50053T

1b 2

4a 4b 4c

✔ ✔ ✔

5a 5b

✔ ✔

6a 6b

✔ ✔

7

8

✔

✔

Schedule J (Form 990) 2008

Schedule J (Form 990) 2008

Part II

Page

2

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use Schedule J-1 if additional space is needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII. Note. The sum of columns (B)(i)–(iii) must equal the applicable column (D) or column (E) amounts on Form 990, Part VII, line 1a. (B) Breakdown of W-2 and/or 1099-MISC compensation (i) Base compensation

(A) Name

See Statement 13

(ii) Bonus & incentive compensation

(iii) Other reportable compensation

(C) Deferred compensation

(D) Nontaxable benefits

(E) Total of columns (B)(i)–(D)

(F) Compensation reported in prior Form 990 or Form 990-EZ

(i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) (i) (ii) Schedule J (Form 990) 2008

Page 3 Supplemental Information Part III Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 4c, 5a, 5b, 6a, 6b, 7, and 8. Also complete this part for any additional information. Schedule J (Form 990) 2008

Schedule J, Part I, Line 7 - AS PART OF THE ANNUAL CEO PERFORMANCE REVIEW A BONUS MAY BE REWARDED. SEE SCHEDULE O, FORM 990, PART VI, SECTION B, LINE 15 FOR NARRATIVE ON HOW CEO PERFORMANCE REVIEW IS CONDUCTED.

Schedule J (Form 990) 2008

OMB No. 1545-0047

Supplemental Information on Tax-Exempt Bonds

SCHEDULE K (Form 990)

2008

©

Attach to Form 990. To be completed by organizations that answered “Yes” to Form 990, Part IV, line 24a. Provide descriptions, explanations, and any additional information on Schedule O (Form 990).

Department of the Treasury Internal Revenue Service

Open to Public Inspection Employer identification number

Name of the organization

HEIFER PROJECT INTERNATIONAL

Part I

35

1019477

Bond Issues (Required for 2008) (a) Issuer name

(c) CUSIP #

(b) Issuer EIN

(d) Date issued

(f) Description of purpose

(e) Issue price

(g) Defeased

(h) On behalf of issuer

Yes No Yes No

A See Statement 14 B C D E

Part II

Proceeds (Optional for 2008) B

A 1 2 3 4 5 6 7 8

Total proceeds of issue Gross proceeds in reserve funds Proceeds in refunding or defeasance escrows Other unspent proceeds Issuance costs from proceeds Working capital expenditures from proceeds Capital expenditures from proceeds Year of substantial completion

9

Were the bonds issued as part of a current refunding issue?

Yes

10 11 12

No

Yes

No

Yes

C

No

Yes

No

Yes

E

D

No

Yes

No

Yes

No

Yes

No

Yes

No

Were the bonds issued as part of an advance refunding issue? Has the final allocation of proceeds been made? Does the organization maintain adequate books and records to support the final allocation of proceeds?

Part III

Private Business Use (Optional for 2008) B

A 1

Was the organization a partner in a partnership, or a member of an LLC, which owned property financed by tax-exempt bonds?

2

Are there any lease arrangements with respect to the financed property which may result in private business use?

Yes

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

C

E

D

Cat. No. 50193E

No

Schedule K (Form 990) 2008

Schedule K (Form 990) 2008

Part III

Page

2

Private Business Use (Continued) B

A Yes

3a Are there any management or service contracts with respect to the financed property which may result in private business use?

No

Yes

C No

Yes

E

D No

Yes

No

Yes

No

b Are there any research agreements with respect to the financed property which may result in private business use? c Does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts or research agreements relating to the financed property? 4

5

Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government

©

Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section © 501(c)(3) organization, or a state or local government

6

Total of lines 4 and 5

7

Has the organization adopted management practices and procedures to ensure the post-issuance compliance of its tax-exempt bond liabilities?

Part IV

%

%

%

%

%

% %

% %

% %

% %

% %

Arbitrage (Optional for 2008) B

A 1

Has a Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate, been filed with respect to the bond issue?

2

Is the bond issue a variable rate issue?

Yes

No

Yes

C No

Yes

E

D No

Yes

No

Yes

No

3a Has the organization or the governmental issuer identified a hedge with respect to the bond issue on its books and records? b Name of provider c Term of hedge 4a Were gross proceeds invested in a GIC? b Name of provider c Term of GIC d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? 5

Were any gross proceeds invested beyond an available temporary period?

6

Did the bond issue qualify for an exception to rebate? Schedule K (Form 990) 2008

SCHEDULE L (Form 990 or 990-EZ) Department of the Treasury Internal Revenue Service

Transactions With Interested Persons ©

OMB No. 1545-0047

Name of the organization

1

Open To Public Inspection Employer identification number

35

HEIFER PROJECT INTERNATIONAL

Part I

2008

Attach to Form 990 or Form 990-EZ. To be completed by organizations that answered “Yes” on Form 990, Part IV, line 25a, 25b, 26, 27, 28a, 28b, or 28c, or Form 990-EZ, Part V, line 38a or 40b. ©

1019477

Excess Benefit Transactions (section 501(c)(3) and section 501(c)(4) organizations only). To be completed by organizations that answered “Yes” on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b. (a) Name of disqualified person

(c) Corrected?

(b) Description of transaction

Yes

No

2 Enter the amount of tax imposed on the organization managers or disqualified persons during the year © $ under section 4958 © $ 3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization

Part II

Loans to and/or From Interested Persons. To be completed by organizations that answered “Yes” on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.

(a) Name of interested person and purpose

(b) Loan to or from the organization?

To

(c) Original principal amount

(d) Balance due

(e) In default? (f) Approved by board or committee?

From

Yes

No

Yes

No

(g) Written agreement?

Yes

No

©

Total

Part III

$ Grants or Assistance Benefitting Interested Persons. To be completed by organizations that answered “Yes” on Form 990, Part IV, line 27. (a) Name of interested person

Part IV

(b) Relationship between interested person and the organization

(c) Amount of grant or type of assistance

Business Transactions Involving Interested Persons. To be completed by organizations that answered “Yes” on Form 990, Part IV, line 28a, 28b, or 28c.

(a) Name of interested person

(b) Relationship between interested person and the organization

(c) Amount of transaction

(d) Description of transaction

(e) Sharing of organization’s revenues? Yes

No

See Statement 15

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2008

OMB No. 1545-0047

NonCash Contributions

SCHEDULE M (Form 990) ©

Department of the Treasury Internal Revenue Service

2008

To be completed by organizations that answered “Yes” on Form 990, Part IV, lines 29 or 30. ©

Open To Public Inspection

Attach to Form 990.

Name of the organization

Employer identification number

HEIFER PROJECT INTERNATIONAL

Part I

35

(a) Check if applicable

1 2 3 4 5 6 7 8 9 10 11 12 13

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

1019477

Types of Property

Art—Works of art Art—Historical treasures Art—Fractional interests Books and publications Clothing and household goods Cars and other vehicles Boats and planes Intellectual property Securities—Publicly traded Securities—Closely held stock Securities—Partnership, LLC, or trust interests Securities—Miscellaneous Qualified conservation contribution (historic structures)

✔

(b) Number of contributions

187

(c) Revenues reported on Form 990, Part VIII, line 1g

548,007

(d) Method of determining revenues

Value at time of receipt

Qualified conservation contribution (other) Real estate—Residential Real estate—Commercial Real estate—Other Collectibles Food inventory Drugs and medical supplies Taxidermy Historical artifacts Scientific specimens Archeological artifacts ) Other © ( Stmt 16 ) Other © ( ) Other © ( ) Other © ( Number of Forms 8283 received by the organization during the tax year for contributions for which the organization completed Form 8283, Part IV, Donee Acknowledgement

0

29

Yes No 30a During the year, did the organization receive by contribution any property reported in Part I, lines 1–28 that it must hold for at least three years from the date of the initial contribution, and which is not required to be used for exempt purposes for the entire holding period? b If “Yes,” describe the arrangement in Part II. 31 Does the organization have a gift acceptance policy that requires the review of any non-standard contributions? 32a Does the organization hire or use third parties or related organizations to solicit, process, or sell noncash contributions? b If “Yes,” describe in Part II. 33 If the organization did not report revenues in column (c) for a type of property for which column (a) is checked, describe in Part II. For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 51227J

✔

30a

31 32a

✔ ✔

Schedule M (Form 990) 2008

Schedule M (Form 990) 2008

Part II

Page

2

Supplemental Information. Complete this part to provide the information required by Part I, lines 30b, 32b, and 33. Also complete this part for any additional information.

Schedule M (Form 990) 2008

SCHEDULE O (Form 990)

Supplemental Information to Form 990 ©

Department of the Treasury Internal Revenue Service

Attach to Form 990. To be completed by organizations to provide additional information for responses to specific questions for the Form 990 or to provide any additional information.

Name of the organization

OMB No. 1545-0047

2008 Open to Public Inspection

Employer identification number

HEIFER PROJECT INTERNATIONAL 35 1019477 Form 990, Part VI, Section A, Line 10 - THE FORM 990 IS PREPARED BY INTERNAL FINANCE STAFF AND PROVIDED TO THE CFO AND TO AN EXTERNAL TAX FIRM FOR REVIEW. ANY RECOMMENDED CHANGES ARE MADE PRIOR TO FILING.

Form 990, Part VI, Section B, Line 12c - HEIFER HAS HAD A CODE OF CONDUCT IN PLACE SINCE MARCH OF 2000 FOR ITS BOARD OF DIRECTORS, AND THE CODE OF CONDUCT CONTAINS A CONFLICT OF INTEREST SECTION. HEIFER HAS HAD A CONFLICT OF INTEREST POLICY IN PLACE FOR ITS EMPLOYEES SINCE DECEMBER OF 2001. BOARD MEMBERS ARE REQUIRED TO ANNUALLY DISCLOSE INTERESTS THAT COULD GIVE RISE TO CONFLICTS. EMPLOYEES ARE ENCOURAGED TO REPORT SUSPECTED CONFLICTS OF INTEREST TO THEIR SUPERVISORS OR TO HUMAN RESOURCES. IN ADDITION, HEIFER PROVIDES AN ANONYMOUS CONFIDENTIAL REPORTING OUTLET FOR USE IN REPORTING BEHAVIOR OR ACTIVITIES THAT APPEAR TO VIOLATE HEIFER POLICIES. BOTH THE BOARD AND SENIOR MANAGEMENT ADDRESS CONFLICTS OF INTEREST ON A CASE-BY-CASE BASIS AS THEY ARISE.

Form 990, Part VI, Section B, Line 15 - IN ACCORDANCE WITH GOVERNANCE POLICIES AND PROCEDURES, THE PRESIDENT AND CEO'S PERFORMANCE IS REVIEWED ANNUALLY. MERIT INCREASES, BASE SALARY ADJUSTMENTS AND OR BONUSES ARE CONSIDERED AS PART OF THAT REVIEW AND MONITORING PROCESS. THE HEIFER BOARD OF DIRECTORS UTILIZES AN INDEPENDENT ANALYSIS CONDUCTED BY AN OUTSIDE CONSULTING FIRM TO ASSIST IN THE ANALYSIS AND SUBSEQUENT RECOMMENDATIONS FOR COMPENSATION ADJUSTMENTS. THE APPROACH USED BY THE CONSULTING FIRM UTILIZES MARKET DATA OBTAINED FROM TWO HIGHLY REGARDED NATIONAL COMPENSATION SURVEYS OF NOT FOR PROFIT ORGANIZATIONS AND DATA ON TOTAL CASH COMPENSATION FOR CEOS OF NINE ORGANIZATIONS WITH COMPARABLE MISSION, SCOPE AND OPERATING BUDGET BASED ON INFORMATION OBTAINED FROM IRS FORM 990S. EACH MEMBER OF THE HEIFER BOARD OF DIRECTORS HAS THE OPPORTUNITY TO COMPLETE AND SUBMIT A PERFORMANCE EVALUATION FORM FOR THE CEO. THE RESULTS ARE COMPILED AND REVIEWED WITH THE CEO BY THE EXECUTIVE COMMITTEE OF THE BOARD DURING THEIR SPRING MEETING. THE EXECUTIVE COMMITTEE THEN PRESENTS, FOR APPROVAL, ITS FINDINGS AND RECOMMENDATIONS TO THE FULL BOARD OF DIRECTORS DURING THE BOARD'S SPRING MEETING. THESE FINDINGS AND RECOMMENDATIONS INCLUDE ADJUSTMENTS TO COMPENSATION IF WARRANTED AND SUPPORTED BY ORGANIZATIONAL FUNDING AVAILABILITY AND INDEPENDENT MARKET ANALYSIS. THIS PROCESS WAS LAST UNDERTAKEN FOR THE CEO IN FISCAL 2009.

Form 990, Part VI, Section C, Line 19 - AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. OTHER SELECT DOCUMENTS ARE MADE AVAILABLE FOR INSPECTION AT THE HEIFER PROJECT INTERNATIONAL HEADQUARTERS IN LITTLE ROCK, ARKANSAS.

Form 990, Part XI, Line 2b - THE ORGANIZTION'S FINANCIAL STATEMENTS WERE AUDITED BY AN INDEPENDENT ACCOUNTANT AND ARE INCLUDED IN THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF HEIFER PROJECT INTERNATIONAL. HEIFER PROJECT INTERNATIONAL'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT.

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 51056K

Schedule O (Form 990) 2008

Page

Schedule O (Form 990) 2008

2

Supplemental Information (Continued)

Schedule O (Form 990) 2008

SCHEDULE R (Form 990) ©

©

Open to Public Inspection

See separate instructions.

Employer identification number

Name of the organization

HEIFER PROJECT INTERNATIONAL

35

1019477

Identification of Disregarded Entities (A) Name, address, and EIN of disregarded entity

Part II

2008

Attach to Form 990. To be completed by organizations that answered “Yes” to Form 990, Part IV, line 33, 34, 35, 36, or 37.

Department of the Treasury Internal Revenue Service

Part I

OMB No. 1545-0047

Related Organizations and Unrelated Partnerships

(B) Primary activity

(C) Legal domicile (state or foreign country)

(D) Total income

(E) End-of-year assets

(F) Direct controlling entity

(B) Primary activity

(C) Legal domicile (state or foreign country)

(D) Exempt Code section

(E) Public charity status (if section 501(c)(3))

(F) Direct controlling entity

Identification of Related Tax–Exempt Organizations (A) Name, address, and EIN of related organization

See Statement 17

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2008

Schedule R (Form 990) 2008

Part III

Page

Identification of Related Organizations Taxable as a Partnership

(A) Name, address, and EIN of related organization

(B) Primary activity

(C) Legal domicile (state or foreign country)

(D) Direct controlling entity

(E) Predominant income (related, investment, unrelated)

(F) Share of total income

(G) Share of end-of-year assets

(H) Disproportionate allocations?

(I) Code V—UBI amount in box 20 of Schedule K-1 (Form 1065)

Yes No

Part IV

2

(J) General or managing partner?

Yes No

Identification of Related Organizations Taxable as a Corporation or Trust (A) Name, address, and EIN of related organization

(B) Primary activity

(C) Legal domicile (state or foreign country)

(D) Direct controlling entity

(E) Type of entity (C corp, S corp, or trust)

(F) Share of total income

(G) Share of end-of-year assets

(H) Percentage ownership

Schedule R (Form 990) 2008

Schedule R (Form 990) 2008

Part V

Page

3

Transactions With Related Organizations

Note. Complete line 1 if any entity is listed in Parts II, III, or IV. 1 During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts II–IV? a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity b Gift, grant, or capital contribution to other organization(s) c Gift, grant, or capital contribution from other organization(s) d Loans or loan guarantees to or for other organization(s) e Loans or loan guarantees by other organization(s)

Yes

No

1a 1b 1c 1d 1e

✔ ✔ ✔ ✔ ✔ ✔ ✔

f g h i

Sale of assets to other organization(s) Purchase of assets from other organization(s) Exchange of assets Lease of facilities, equipment, or other assets to other organization(s)

1f 1g 1h 1i

j k l m n

Lease of facilities, equipment, or other assets from other organization(s) Performance of services or membership or fundraising solicitations for other organization(s) Performance of services or membership or fundraising solicitations by other organization(s) Sharing of facilities, equipment, mailing lists, or other assets Sharing of paid employees

1j 1k 1l 1m 1n

✔ ✔ ✔ ✔ ✔

1o 1p

✔ ✔

o Reimbursement paid to other organization for expenses p Reimbursement paid by other organization for expenses

✔ ✔

✔ 1q q Other transfer of cash or property to other organization(s) ✔ r Other transfer of cash or property from other organization(s) 1r 2 If the answer to any of the above is “Yes,” see the instructions for information on who must complete this line, including covered relationships and transaction thresholds. (B) Transaction type (a–r)

(A) Name of other organization(s)

(C) Amount involved

Heifer International Foundation (1)

h

$1,712,016

(2) (3) (4) (5) (6) Schedule R (Form 990) 2008

Schedule R (Form 990) 2008

Part VI

Page

4

Unrelated Organizations Taxable as a Partnership

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. (A) Name, address, and EIN of entity

(B) Primary activity

(C) Legal domicile (state or foreign country)

(D) Are all partners section 501(c)(3) organizations?

Yes

No

(E) Share of end-of-year assets

(F) Disproportionate allocations?

Yes No

(G) Code V—UBI amount in box 20 of Schedule K-1 (Form 1065)

(H) General or managing partner?

Yes

No

Schedule R (Form 990) 2008

Statement 1 : Reasonable Cause Explanations Statement 2 : Program Service Accomplishments Statement 3 : Name Of Foreign Country Statement 4 : States Where Copy Of Return Is Filed Statement 5 : The Books Are In Care Of Statement 6 : Form990 PartVII SectionA Statement 7 : Contractor Compensation Statement 8 : Accounts and Activities Outside the United States Statement 9 : Grants To Organization Outside US Statement 10 : Fundraiser Activity Information Statement 11 : Licensed States Statement 12 : Description of Grants and Other Assistance to Governments and Organizations in the United States Statement 13 : Description of Individuals' Compensation Statement 14 : Bond Issues Statement 15 : Description of Business Transactions Involving Interested Persons Statement 16 : Description of Other Types of Property Statement 17 : Description of Identification of Related Tax-Exempt Organizations

Page: 1

Statement 1 Form: 990 Page: 1 Line Number:

HEIFER PROJECT INTERNATIONAL 35-1019477

Reasonable Cause Explanations _

Explanation _

REQUEST FOR FILING EXTENSION HAS BEEN FILED AND APPROVED BY IRS UNTIL MAY 15, 2010 _

Page: 2

Statement 2 Form: 990 Page: 2 Line Number: Part III Line 4a

HEIFER PROJECT INTERNATIONAL 35-1019477

Program Service Accomplishments _

Activity Code

Description

Expense

Grants

Revenue

International Development Programs: Sustainability: Heifer provides gifts of food- and income-producing livestock, as well as education and information about their care and feeding, to families and communities in need so that they may become self-reliant and establish sustainable livelihoods with enhanced access to food and income. Heifer works in partnership with local organizations and each family is expected to Pass on their Gift of livestock and knowledgethrough the gift of the first female offspring and training-to another family in need, multiplying the gift and thus benefiting entire communities.

$77,603,238

$2,590,124

$0

International Development Programs: Agroecology: Heifer provides gifts of seeds, grains and trees and teaches farmers and families geographically appropriate and resource-sound agricultural practices that enhance and increase crop productivity and are good for the environment. Heifer works with local organizations to increase farmers' access to markets to improve economic benefit and increase personal gain from what they grow. This allows farmers to enhance food security and sovereignty, increase local food options and availability and provide safe and affordable locally grown foods. Heifer's work is guided in its approach by its 12 Cornerstones, including Passing on the Gift, accountability, sharing and caring, gender and family focus, genuine need and justice and full participation. All contribute to Heifer's values-based and holistic approach to giving people a hand up, not a hand out to a better, richer life.

$1,705,175

$0

$0

International Development Programs: Education: Heifer works to educate people of all ages-in the United States and elsewhere around the world-about the root causes, the contributors to and the challenges of global hunger and poverty, and to teach them how to become a part of the solution. Heifer learning centers empower people to experience, through learning, what it feels like to be poor and hungry, and provides programs and lessons that inspire them to take some action toward ending hunger and poverty.

$15,845,366

$0

$1,381,196

$95,153,779

$2,590,124

$1,381,196

_

_

_

_

Total:

Page: 3

Statement 3 Form: 990 Page: 5 Line Number: Part V Line 4b

HEIFER PROJECT INTERNATIONAL 35-1019477

Name Of Foreign Country _

Name _

Albania Armenia Bolivia Brazil Canada Cambodia China Cameroon Ecuador Georgia Ghana Guatemala Haiti Honduras Indonesia India Kenya Lithuania Slovakia Mexico Mozambique Nepal Nicaragua Peru Poland Romania Philippines Russia Rwanda Thailand Tanzania Uganda Ukraine Vietnam Zambia Zimbabwe

Page: 4

Statement 4 Form: 990 Page: 6 Line Number: Part VI Section C Line 17

HEIFER PROJECT INTERNATIONAL 35-1019477

States Where Copy Of Return Is Filed _

States _

AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY

Page: 5

Statement 5 Form: 990 Page: 6 Line Number: Part VI Section C Line 20

HEIFER PROJECT INTERNATIONAL 35-1019477

The Books Are In Care Of _

Name and address:

Telephone Number

_

Heifer Project International 1 World Avenue Little Rock, AR 72202 _

Page: 6

(501)907-2600

Statement 6 Form: 990 Page: 7 Line Number: Part VII Section A

HEIFER PROJECT INTERNATIONAL 35-1019477

Form990 PartVII SectionA _

Name

Title

Hours C1

C2

C3

C4

C5

C6

Reportable Comp From Organization

Reportable Comp Other Compensation From RelatedOrgs

_

Steve Mondora Chair

1

Yes

Yes

$0

$0

$0

Vice Chair

1

Yes

Yes

$0

$0

$0

Charles Stewart Past Chair

1

Yes

$0

$0

$0

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Ladislav Hetenyi Board Member Phd

1

Yes

$0

$0

$0

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Gary Tabasinske Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Susan Sanders Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

Board Member

1

Yes

$0

$0

$0

President/CEO

50

Yes

$265,360

$0

$31,275

Chief Operating 50 Officer and Secretary

Yes

$80,400

$0

$5,938

Executive V.P., 50 CFO and Treasurer

Yes

$159,617

$0

$21,349

Executive V.P. and Assistant Secretary

50

Yes

$157,867

$0

$29,311

James DeVries Executive V.P.

50

Yes

$149,632

$0

$24,963

Executive V.P.

50

Yes

$61,525

$0

$8,930

Vice President

50

Yes

$101,595

$0

$19,801

Vice President

50

Yes

$103,072

$0

$23,291

_

Douglas Smith _

_

Susan B Fulton Board Member _

Efrain Diaz Arrivillaga _

_

Julia Hall Wilson Board Member DVM _

Andrew Kang Bartlett _

_

Dr Donald Hammond _

Kathleen Campanella _

James Howell _

Arlene Withers _

Fu Changxiu _

Franklin Ishida _

Dr Johnson Nkuuhe _

_

Ron McLean _

Alejandra Caballero _

Jo Luck _

Steve Denne

_

James Neal

_

Tanya Wright

_

_

Steve Stirling _

Oscar Castaneda _

Mahendra Lohani _

Page: 7

Statement 6 Sahr Lebbie

HEIFER PROJECT INTERNATIONAL $0 $23,793

Vice President

50

Yes

$107,897

Vice President

50

Yes

$104,305

$0

$19,830

50

Yes

$93,538

$0

$11,315

50

Yes

$95,008

$0

$14,606

Senior V.P.

50

Yes

$136,891

$0

$27,126

Vice President

50

Yes

$71,420

$0

$10,765

Vice President

50

Yes

$98,089

$0

$18,413

Vice President

50

Yes

$103,641

$0

$15,505

Senior V.P.

50

Yes

$141,183

$0

$23,833

$2,031,040

$0

$330,044

_

Rafal Laski _

Leesa Ferguson VP of Human Resource _

Hilary Haddigan Vice President _

Thomas Peterson _

Sue Bertrand _

Phyllis Parrish _

Anne Harper _

Donna Jared _

Total: C1 = Individual Trustee Or Director C2 = Institutional Trustee C3 = Officer C4 = Key Employee C5 = Highest Compensated Employee C6 = Former

Page: 8

Statement 7 Form: 990 Page: 8 Line Number: Part VII Section B

HEIFER PROJECT INTERNATIONAL 35-1019477

Contractor Compensation _

Name and address:

Description Of Services

Compensation

_

Craver Mathews Smith Co 4121 Wilson Blvd Arlington, VA 22203

Fundraising Consultant

$786,147

Fundraising software consulting

$697,096

Call Center

$409,574

Internet consulting

$403,270

Marketing Data

$376,422

_

Blackbaud 2000 Daniel Island Drive Charleston, SC 29492 _

Fineline Solutions 290 Garry Street Winnipeg, Manitoba R3C 1H3 Canada _

Beaconfire Consulting Inc 2300 Clarendon Blvd Suite 1100 Arlington, VA 22201 _

Cognitive Data 500 President Clinton Avenue Little Rock, AR 72201 _

Total:

Page: 9

$2,672,509

Statement 8 Form: Schedule F Page: 1 Line Number: Part I Line 3

HEIFER PROJECT INTERNATIONAL 35-1019477

Accounts and Activities Outside the United States _

Offices

Employees

Total

_

Region Activities Services

Sub-Saharan Africa 12 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

227

$22,267,298

East Asia and the Pacific 6 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

136

$10,816,910

South America 4 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

57

$7,232,855

Russia and the newly independent States 3 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

35

$4,040,483

Central America and the Caribbean 3 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

28

$3,897,350

Europe (including Iceland and Greenland) 8 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

52

$2,976,488

South Asia 2 Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

41

$3,044,058

North America (including Canada and 2 Mexico, but not the United States) Program Services Heifer provides gifts of food- and incomeproducing livestock, as well as education and information about their care and feeding.

14

$1,388,180

Sub-Saharan Africa Grantmaking

227

$4,482,834

_

Region Activities Services

_

Region Activities Services

_

Region Activities Services

_

Region Activities Services

_

Region Activities Services

_

Region Activities Services

_

Region Activities Services

_

Region Activities

Page: 10

12

Statement 8 Services

HEIFER PROJECT INTERNATIONAL INSTITUIONAL STRENGTHENING GRANTS AND GRANTS FOR EAST AFRICA DAIRY DEVELOPMENT SUBCONTRACTORS.

_

Region Activities Services

Europe (including Iceland and Greenland) 8 Grantmaking INSTITUTIONAL STRENGTHENING GRANT $1,136,669 MICRO ENTERPRISE LENDING $500,000

52

East Asia and the Pacific Grantmaking Institutional Strengthening Grant

6

136

Total:

66

1005

$1,636,669

_

Region Activities Services

$817,347

_

Page: 11

$62,600,472

Statement 9 Form: Schedule F Page: 2 Line Number: Part II Line 1

HEIFER PROJECT INTERNATIONAL 35-1019477

Grants To Organization Outside US _

Cash Grant _

Region Grant Cash Disbursement Non-Cash Assistance Valuation

Europe (including Iceland and Greenland) General support for institutional strengthening of Heifer partner organization. Wire transfer

$411,438

Fair Market Value

_

Region Grant Cash Disbursement Non-Cash Assistance Valuation

Europe (including Iceland and Greenland) General support for institutional strengthening of Heifer partner organization Wire transfer

$100,000

Fair market value

_

Region Grant Cash Disbursement Non-Cash Assistance Valuation

Sub-Saharan Africa General support for institutional strengthening of Heifer partner organization Wire Transfer

$636,108

Fair market value

_

Region Grant Cash Disbursement Non-Cash Assistance Valuation

East Asia and the Pacific General support for institutional strengthening of Heifer partner organization. Wire transfer

$817,347

Fair market value

_

Region Grant Cash Disbursement Non-Cash Assistance Valuation _

Page: 12

Europe (including Iceland and Greenland) General support for institutional strengthening of Heifer partner organization. Wire transfer Fair market value

$625,231

Non-Cash Assistance

Statement 10 Form: Schedule G Page: 1 Line Number: Part I Line 2b

HEIFER PROJECT INTERNATIONAL 35-1019477

Fundraiser Activity Information _

Name

Activity

C1

Gross Receipts

Amount Or Retained By Contractor

Net To Organization

CONSULTS WITH HEIFER INTERNATIONAL IN-HOUSE MARKETING STAFF ON DIRECT RESPONSE MARKETING STRATEGIES

No

$24,449,429

$525,820

$23,923,609

CONSULTS ON INTERNET STRATEGY AND DESIGN.

No

$14,751,028

$385,539

$14,365,489

CONSULTS ON TELEMARKETING.

No

$767,750

$326,350

$441,400

CONSULTS ON INTEGRATED No CORPORATE MARKETING STRATEGIES AND INFRASTRUCTURE DEVELOPMENT.

$440,986

$62,152

$378,834

No

$5,432

$25,012

($19,580)

CONSULTS ON STRATEGIES No FOR NEW MARKETING PROGRAMS.

$0

$8,000

($8,000)

$40,414,625

$1,332,873

$39,081,752

_

Craver Mathews Smith & Co

_

Beaconfire Consulting _

Direct Advantage marketing _

McCarty Partners

_

Hawthorne Direct Inc

CONSULTS ON TELEVISION DIRECT RESPONSE ADVERTISING.

_

Kristine Thompson

_

Total: C1 = Fundraiser control of funds?

Page: 13

Statement 11 Form: Schedule G Page: 1 Line Number: Part I Line 3

HEIFER PROJECT INTERNATIONAL 35-1019477

Licensed States _

States _

AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT NC ND NE NH NJ NM NV NY OH OK OR PA PR RI SC SD TN TX UT VA VT WA WI WV WY

Page: 14

Statement 12 Form: Schedule I Page: 1 Line Number: Part II

HEIFER PROJECT INTERNATIONAL 35-1019477

Description of Grants and Other Assistance to Governments and Organizations in the United States _

Amount of cash grant Amount of non-cash assistance _

Name and address

ANGELIC ORGANICS LEARNING CENTER 6400 S KIMBARK CHICAGO, IL 60637 EIN 36-4288904 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant BUILD CAPACITIES OF LIMITED-RESOURCE INDIVIDUALS AND COMMUNITY-BASED ORGANIZATIONS IN ROCKFORD AND CHICAGO TO DEVELOP SUSTAINABLE PROJECTS THAT INCREASE SELF-RELIANCE, IMPROVE QUALITY OF LIFE AND SHAPE A HEALTHY AND JUST LOCAL FOOD SYSTEM

$153,529

$0

$48,025

$0

CEDAR GROVE UNITED METHODIST CHURCH PO BOX 138 CEDAR GROVE, NC 27231 56-2007642

$43,855

$0

SOUTHERN RURAL DEVELOPMENT INITIATIVE 128 E HARGETT STREET SUITE 202 RALEIGH, NC 27601 EIN 56-1900120 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance

$5,650

$0

_

Name and address

RURAL COALITION 1012 14TH STREET NW SUITE 1100 WASHINGTON, DC 20005 EIN 52-1203899 IRC code section 501(C)(3) Method of valuation FMV Description of noncash assistance Purpose of grant ENABLE THE NATIONAL IMMIGRANT FARMING INITIATIVE TO BECOME A FARMER-CENTERED ORGANIZATION THAT STRENGTHENS THE CAPACITY OF IMMIGRANTS, REFUGEES, AND FARM WORKERS TO FARM SUCCESSFULLY, ADVANCE SUSTAINABLE FARMING AND FOOD SYSTEMS, AND PROMOTE INCLUSION FOR THEMSELVES IN US AGRICULTURAL AND FOOD SYSTEMS _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant FUNDS SOCIALLY-DISADVANTAGED YOUTH IN A COMMUNITY SUPPORTED AGRICULTURE GARDENING PROGRAM _

Name and address

Page: 15

Statement 12 Purpose of grant

HEIFER PROJECT INTERNATIONAL SUPPORT RURAL GRASSROOTS ORGANIZATION TO PLAN AND IMPLEMENT FOOD SYSTEM PROJECTS

_

Name and address

CAWACO RESOURCE CONSERVATION AND DEVELOPMENT 1731 1ST AVENUE NORTH SUITE 200 BIRMINGHAM, AL 35203 EIN 63-1027283 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant SUPPORT RURAL GRASSROOTS ORGANIZATION TO PLAN AND IMPLEMENT FOOD SYSTEMS PROJECTS

$48,426

$0

$49,676

$0

$37,550

$0

$7,516

$0

$6,386

$0

_

Name and address

RURAL RESOURCES 2870 HOLLY CREEK ROAD GREENEVILLE, TN 37745 EIN 62-1546161 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant EDUCATING LOCAL YOUTH IN THE PRESERVATION AND IMPROVEMENT OF AGRICULTURAL LAND, THE PRESERVATION OF RURAL HERITAGE, AND DEVELOPING A LOCALLY SUSTAINABLE SYSTEM OF PRODUCING AND MARKETING AGRICULTURAL PRODUCTS _

Name and address

RED BIRD MISSION 70 QUEENDALE CENTER BEVERLY, KY 40913 EIN 61-0674373 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant PROVIDE IMPOVERISHED FAMILIES IN THE APPALACHIAN REGION OF SOUTHEASTERN KENTUCKY WITH LIVESTOCK, EDUCATION, OPPORTUNITIES, AND TRAINING FOR LIVESTOCK ENTERPRISES _

Name and address

GEORGIA ORGANICS PO BOX 8924 ATLANTA, GA 31106 EIN 58-2345310 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant HELP FARMERS INITIATE OR MAKE TRANSITION TO ORGANIC PRODUCTION WHILE PROVIDING ORGANIC FOOD TO FOOD-INSECURE FAMILIES _

Name and address

Page: 16

NORTHEAST ORGANIC FARMING ASSOCIATION OF NEW YORK INC PO BOX 880

Statement 12

HEIFER PROJECT INTERNATIONAL

COBLESKILL, NY 12043 EIN 03-0259137 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant HELP FARMERS INITIATE OR MAKE THE TRANSITION TO ORGANIC PRODUCTION WHILE PROVIDING ORGANIC FOOD TO FOODINSECURE FAMILIES _

Name and address

WIREGRASS FARMERS COOPERATIVE 6742 GOAT HILL ROAD SAMSON, AL 36340 11-3707241

$35,790

$0

$58,515

$0

$30,295

$0

$84,862

$0

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant CONNECT YOUTH TO COMMUNITY, LAND, GOOD FOOD, AND OPPORTUNITIES THROUGH FARMING _

Name and address

MCINTOSH COUNTY SUSTAINABLE ENVIRONMENT AND ECONOMIC DEVELOPMENT PO BOX 2355 DARIEN, GA 31305 EIN 58-2556194 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant CULTIVATE THE ASSETS OF YOUTH AND LOCAL GROWERS AS CENTRAL DETERMINERS IN THE EXPLORATION, PLANNING AND ECONOMIC VIABILITY OF LOCAL FOOD SYSTEMS TOWARD MOVING PEOPLE OUT OF POVERTY _

Name and address

DESIRE STREET MINISTRIES 3852 EAST BROOKSTOWN DRIVE BATON ROUGE, LA 70805 EIN 72-1218825 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant USE GARDENING AND OTHER AGRICULTURAL EXPERIENCES TO PROVIDE ACADEMIC, LEADERSHIP AND LIFE SKILLS TO INNER CITY YOUTH _

Name and address

TRI COUNTY COMMUNITY COALITION 500 SOUTH IDAHO STREET PINE BLUFF, AR 71601 EIN 65-1298702 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant EDUCATE FAMILIES IN GARDENING AND MARKETING THROUGH FARMER'S MARKETS,

Page: 17

Statement 12

HEIFER PROJECT INTERNATIONAL LOCAL GROCERS, SCHOOLS AND SHARING PRODUCE WITH OTHERS. PARTICIPANTS WILL BE TRAINED IN FOOD PREPARATION, NUTRITION, BASIC HORTICULTURE PRACTICES AND ANIMAL HUSBANDRY, TO PROMOTE ENTREPRENEURSHIP IN AGRO-BUSINESS ENTERPRISE AND TO TEACH LEADERSHIP SKILLS

_

Name and address

MID-SOUTH PROGRESSIVE AG GROUP 656 GIPSON DRIVE LAMAR, MS 38642 39-2062091

$50,000

$0

DELTA SPROUTS PO BOX 603 LAKE VILLAGE, AR 71653 01-0911382

$50,000

$0

NUESTRAS RAICES 329 MAIN STREET HOLIOAK, MA 01040 EIN 04-3182556 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant HELP NEW LATINO FARMERS START VIABLE FARM BUSINESSES ON LAND MANAGED BY NUESTRAS RAICES THROUGH GIFTS OF LIVESTOCK AND TRAINING IN LIVESTOCK HEALTH

$21,900

$0

$43,200

$0

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant INCREASE COMMUNITY-BASED JUST FOOD SYSTEMS IN THE AREA BY DIVERSIFYING THEIR FARM OPERATIONS WITH HOOP-HOUSE VEGETABLE PRODUCTION AND PASTURED POULTRY PRODUCTION _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant INVESTING IN LIVESTOCK, LEARNING CENTERS AND FARMERS MARKETS IN THREE COUNTIES IN SOUTHEAST ARKANSAS WHICH STRUGGLE WITH HIGH POVERTY, POOR NUTRITION, UNEMPLOYMENT, DECREASED POPULATION FROM ECONOMIC FLIGHT, AND LIMITED JOBS DUE TO LACK OF EDUCATION _

Name and address

_

Name and address

THIRD SECTOR NEW ENGLAND INC 89 SOUTH STREET SUITE 700 BOSTON, MA 02111 EIN 04-2261109 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance

Page: 18

Statement 12 Purpose of grant

HEIFER PROJECT INTERNATIONAL ENCOURAGE , EDUCATE AND EMPOWER NEW LONDON'S RESIDENTS TO PARTICIPATE IN THE TRANSFORMATION OF THEIR FOOD SYSTEMS TO BE HEALTHFUL, UNIVERSALLY ACCESSIBLE, SUSTAINABLE

_

Name and address

THRESHOULD FOUNDATION INC 20 EAST JAMES STREET LANCASTER, PA 17602 EIN 23-2801110 IRC code section 501(C)(3) Method of valuation FMV Description of noncash assistance Purpose of grant HELP DEVELOP A SELF-RELIANT AND SUSTAINABLE FOOD SYSTEM AND LOCAL ECONOMY THROUGH COMMUNITY-BASED AND YOUTH-FOCUSED SOCIAL ENTERPRISES, URBAN AGRICULTURE AND COMMUNITY EDUCATION

$74,914

$0

$37,350

$0

RIO BRAVO LIVESTOCK ASSOCIATION PO BOX 1418 PRESIDO, TX 79485 00-0000000

$27,060

$0

LOGAN LIVESTOCK ASSOCIATION 8609 OLD TAFT ROAD MUSKOGEE, OK 74401 00-0000000

$23,110

$0

_

Name and address

UNIVERSITY OF MASSACHUSETTS 70 BUTTERFIELD TERRACE AMHERST, MA 01003 EIN 54-2084125 IRC code section 501(c)(3) Method of valuation FMV Description of noncash assistance Purpose of grant ASSIST IMMIGRANT FARMERS TO CREATE AND SUSTAIN SUCCESSFUL FARMING ENTERPRISES _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant ENABLE SMALL AND LIMITED-RESOURCE IMMIGRANT FARMERS AND LOW INCOME YOUTH TO PROVIDE A COMPLETE LIVELIHOOD FOR THEIR FAMILIES BY INTEGRATING LIVESTOCK AND VEGETABLES TO THEIR SMALLFARM OPERATION _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant HELP FAMILIES IMPLEMENT AGROECOLOGICAL LIVESTOCK PRODUCTION ON THEIR RANCHES, IMPROVE FAMILY NUTRITION THROUGH GRASS FINISHED BEEF PRODUCTION AND INCREASE INCOME BY MARKETING EXCESS MEET AND CALVES AS PART OF A COMMUNITY-BASED FOOD SYSTEM IN ORDER TO BECOME A SELF-

Page: 19

Statement 12

HEIFER PROJECT INTERNATIONAL RELIANT, SUSTAINABLE RANCHING GROUP

_

Name and address

FAMILIAS PRODUCTORES DEL VALLE 1223 S TOWER ROAD ALAMO, TX 78516 00-0000000

$7,264

$0

4 MILE BRANCH ASSOCIATION 120 QUANAL FT GIBSON, OK 74434 00-0000000

$30,848

$0

BOYNTON FARMERS ASSOCIATION PO BOX 161 BOYNTON, OK 74422 00-0000000

$33,347

$0

SANGRE DE CRISTO LIVESTOCK GROWERS PO BOX 51 MORA, NM 87732 00-0000000

$32,600

$0

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant HELP LOW-INCOME IMMIGRANT FAMILIES DEVELOP MICRO-ENTERPRISES BASED ON SUSTAINABLE LAND STEWARDSHIP AND COOPERATION IN HIDALGO COUNTY IN THE LOWER RIO GRANDE VALLEY OF TEXAS _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant INCREASE LOCAL FOOD SECURITY AND INCOME BY TRAINING FAMILIES ABOUT RAISING SUSTAINABLE LIVESTOCK, FORAGE, FRUIT AND VEGETABLES AND PROVIDING THE LIVESTOCK AND SEEDS _

Name and address

EIN IRC code section Method of valuation FMV Description of noncash assistance Purpose of grant SUPPORTING FAMILIES IMPROVING THE HEALTH AND PRODUCTIVITY OF THEIR LAND AND ANIMALS, INCREASING INCOME AND IMPROVING THE NUTRITION OF THE COMMUNITY WHILE ENCOURAGING YOUTH INVOLVEMENT AND GENDER EQUITY _

Page: 20

Statement 13 Form: Schedule J Page: 2 Line Number: Part II

HEIFER PROJECT INTERNATIONAL 35-1019477

Description of Individuals' Compensation _

Base Bonus and Other Deferred compensation incentive compensation compensation ($) compensation ($) ($) ($)

Nontaxable benefits ($)

Total Comp reported prior 990

_

Jo Luck From org. From related orgs

$240,360 $0

$25,000 $0

$0 $0

$0 $0

$31,275 $0

$296,635 $0

$119,540 $0

$157,867 $0

$0 $0

$0 $0

$0 $0

$29,311 $0

$187,178 $0

$81,906 $0

$159,617 $0

$0 $0

$0 $0

$0 $0

$21,349 $0

$180,966 $0

$80,862 $0

$149,632 $0

$0 $0

$0 $0

$0 $0

$24,963 $0

$174,595 $0

$74,675

$141,183 $0

$0 $0

$0 $0

$0 $0

$23,833 $0

$165,016 $0

$70,752

$136,897 $0

$0 $0

$0 $0

$0 $0

$27,126 $0

$164,023 $0

$70,050

_

Tanya Wright From org. From related orgs _

James Neal From org. From related orgs _

James DeVries From org. From related orgs _

Donna Jared From org. From related orgs _

Thomas Peterson From org. From related orgs _

Page: 21

Statement 14 Form: Schedule K Page: 1 Line Number: Part I Column (a)

HEIFER PROJECT INTERNATIONAL 35-1019477

Bond Issues _

Issue Price _

Issuer Name

Issuer EIN CUSIP # Date Issued Description Of Purpose Defeased On Behalf Of Issuer

City of Little Rock Arkansas (Heifer Project International) Public Facilities Board 80-0311736

$5,700,000

12/05/2008 For the purpose of financing and refinancing capital improvements No No

_

Issuer Name

Issuer EIN CUSIP # Date Issued Description Of Purpose Defeased On Behalf Of Issuer

City of Little Rock Arkansas (Heifer Project International) Public Facilities Board 80-0311736

$4,300,000

12/05/2008 For the purpose of financing and refinancing capital improvements No No

_

Issuer Name

Issuer EIN CUSIP # Date Issued Description Of Purpose Defeased On Behalf Of Issuer _

Page: 22

City of Little Rock Arkansas (Heifer Project International) Public Facilities Board 80-0311736 02/02/2009 For the purpose of financing and refinancing capital improvements. No No

$9,300,000

Statement 15 Form: Schedule L Page: 1 Line Number: Part IV

HEIFER PROJECT INTERNATIONAL 35-1019477

Description of Business Transactions Involving Interested Persons _

Amount of transaction _

Name Relationship with organization Description of transaction Sharing Of Revenues

ECLOF INTERNATIONAL HEIFER OFFICER JAMES NEAL IS DIRECTOR OF ECLOF INTERNATIONAL FUNDING MICRO-LENDING AND GUARNATEE LOAN FUND PROJECT, PHASE II No

$500,000

PROYECTO HEIFER EN BOLIVIA HEIFER OFFICER OSCAR CASTANEDA IS A DIRECTOR OF PROYECTO HEIFER EN BOLIVIA PROVIDE FUNDING FOR OFFICE AND PROJECTS ACCORDING TO CONTRACT WITH LEGALLY SEPARATE ENTITY No

$1,400,641

INTERNATIONAL CHARITABLE FOUNDATION UKRAINE HEIFER OFFICER RAFAL LASKI IS A DIRECTOR OF INTERNATIONAL CHARITABLE FOUNDATION UKRAINE PROVIDE OFFICE AND PROJECT FUNDING ACCORDING TO CONTRACT WITH LEGALLY SEPARATE ENTITY No

$1,659,770

_

Name Relationship with organization Description of transaction

Sharing Of Revenues _

Name Relationship with organization Description of transaction Sharing Of Revenues _

Name Relationship with organization Description of transaction

Sharing Of Revenues _

Page: 23

BALTIJOS LABDAROS FONDAS LITHUANIA HEIFER OFFICER RAFAL LASKI IS A DIRECTOR OF BALTIJOS LABDOROS FONDAS LITHUANIA PROVIDE FUNDING FOR OFFICE AND PROJECTS ACCORDING TO CONTRACT WITH LEGALLY SEPARATE ENTITY No

$617,138

Statement 16 Form: Schedule M Page: 1 Line Number: Part I Line 25-28

HEIFER PROJECT INTERNATIONAL 35-1019477

Description of Other Types of Property _

lines on Part I

Contributions

Livestock and Feed Fair Market Value

Yes

2

Miscellaneous Fair Market Value

Yes

16

Revenues

_

Description Method of determining revenues

$960

_

Description Method of determining revenues _

Page: 24

$24,490

Statement 17 Form: Schedule R Page: 1 Line Number: Part II

HEIFER PROJECT INTERNATIONAL 35-1019477

Description of Identification of Related Tax-Exempt Organizations _ _

Name, address and EIN

Primary activities State or foreign country Exempt code section Public charity status Direct controlling entity _

Page: 25

Heifer International Foundation PO Box 727 Little Rock, AR 72203 710699939 Primary purpose is to support the efforts of Heifer Project International. AR 501(c) (3) 170(b)(1)(A)(vi) N/A