2016-04-19T17:08:07-05:00 2015-06-30 Grant Thornton LLP 2010 CORPORATE RIDGE SUITE 400 MCLEAN VA 22102 990 2014-07-01 262108051 GRASSROOTS BUSINESS PARTNERS INC % REBEKAH MCKNIGHT PLOTKIN GRAS 2025186865 1710 Rhode Island Avenue NW Washington DC 20036 Rebekah McKnight Plotkin VP-Finance and Admin 2025186865 2016-04-19 true Mary Torretta P00847851 7038477500 2014 2016-08-17 19:52:53Z GRASSROOTS BUSINESS FUND Harold Rosen 1710 Rhode Island Avenue NW Washington DC 20036 2429069 false X www.gbfund.org X 2007 DE To grow viable businesses that generate sustainable earnings or savings for people with low incomes in Africa, Asia, and Latin America. 6 5 13 5 0 999387 1017136 1896619 1472028 -164474 2524 57533 -62619 2789065 2429069 232033 103367 0 0 2051878 2191476 0 0 355822 2175538 1897285 4459449 4192128 -1670384 -1763059 12989555 6227610 509923 342818 12479632 5884792 X THE GRASSROOTS BUSINESS FUND STRIVES TO CREATE A WORLD WHERE ECONOMIC OPPORTUNITY REACHES EVERYONE. OUR MISSION IS TO GROW VIABLE BUSINESSES THAT GENERATE SUSTAINABLE EARNINGS OR SAVINGS FOR PEOPLE WITH LOW INCOMES IN AFRICA, ASIA, AND LATIN AMERICA. false false 1435925 1472028 HIGH IMPACT INVESTING - SEE SCHEDULE O. 1114986 103367 CAPACITY BUILDING PROGRAM - SEE SCHEDULE O. 215804 EDUCATION/INFORMATION SHARING - SEE SCHEDULE O. 2766715 true true false false false false false false false false true false true false false true false true false true true true false false false false false false false true false false false false false false false false false false false false true true true true false false true X 10 0 13 true false true PE IN KE false false false false false false false false X 6 5 true false false false false false true true false false false true true true true true true true true false DC X REBEKAH MCKNIGHT PLOTKIN 2025186865 1710 RHODE ISLAND AVE NW SUITE 100 Washington DC 20036 X Harold Rosen Chief Executive Officer 40.0 0.0 X X 265438 0 14686 Stephen Brenninkmeijer Director 1.0 0.0 X 0 0 0 Holly Wise Director 1.0 0.0 X 0 0 0 Andrew Adelson Chairman of the Board 1.0 0.0 X 0 0 0 Mwaghazi Mwachofi Director 1.0 0.0 X 0 0 0 Mary Houghton Director 1.0 0.0 X 0 0 0 Jaime Ramirez Chief Investment Officer 40.0 0.0 X 206299 0 10536 Rebekah Plotkin VP, Admin and Finance 40.0 0.0 X 111005 0 5635 Lilian Mramba Regional Director 40.0 0.0 X 112996 0 6988 Natalia Barantseva Regional Director 40.0 0.0 X 131943 0 4161 Alycia Kellman VP, Legal, Compl & HR 40.0 0.0 X 156975 0 8035 Eric Meissner Senior TA Coordinator 40.0 0.0 X 108196 0 5478 1092852 0 55519 7 false true false N Cheng Co 40 Exchange Place Suite 1206 NEW YORK NY 10005 Accounting Services 106903 Grant Thornton LLP 2010 Corporate Ridge Suite 400 MCLEAN VA 22102 Audit 139149 2 1017136 1017136 INTEREST-PROGRAM RELATED 900099 4641 4641 FEES FROM GBI 900099 1467387 1467387 1472028 2524 2524 0 0 0 0 0 0 0 0 0 FOREIGN EXCHANGE RATE FLUCTUATION 900099 -215393 -215393 OTHER INCOME 900099 152774 152774 -62619 2429069 1472028 -60095 0 0 0 103367 103367 0 472119 311599 108587 51933 0 1466653 967991 337330 161332 58693 38983 13172 6538 118431 78660 26579 13192 75580 50199 16962 8419 0 137518 97107 40411 287204 26693 257701 2810 0 0 0 314279 227726 79916 6637 6086 4042 1366 678 15631 10382 3508 1741 84543 56152 18974 9417 2174 1444 488 242 175046 116262 39285 19499 334472 229004 57674 47794 0 7456 1081 1121 5254 3686 2448 827 411 3461 3461 27198 18064 6104 3030 23064 15319 5176 2569 TECHNICAL ASSISTANCE CONSULTAN 331777 328638 3139 REPRESENTATION EXPENSES 31714 14085 14610 3019 FEES AND PERMITS 27019 17945 6064 3010 MISC 19299 12818 4331 2150 65658 36706 22805 6147 4192128 2766715 1069591 355822 2998364 1105278 1748875 2349450 2523328 991644 103943 119947 0 0 0 0 131707 50556 0 0 0 54815 195665 129682 54932 65983 0 0 0 0 5340460 1451384 0 0 87946 38553 12989555 6227610 475639 342818 0 0 34284 0 0 0 0 0 0 0 0 0 0 0 0 0 509923 342818 X 7288468 1915187 5191164 3969605 0 0 12479632 5884792 12989555 6227610 X -1763059 1291439 -2384018 -3739202 X X false true X true false X 50371 10240642 1027167 999387 1017136 13334703 0 0 50371 10240642 1027167 999387 1017136 13334703 4717570 8617133 22206 6171 1526 1696 2524 34123 0 131025 41553 81257 57533 -62519 248849 13617675 5861035 0.63279 0.67820 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 16354 9467 6887 0 179311 120215 59096 65983 MISSION RELATED INVESTMENTS 1451384 F 1451384 0 0 X 891353 1291439 84086 -2913241 -1537716 2429069 2429069 5102174 84086 825960 910046 4192128 4192128 Liability For Uncertain Tax Position (ASC 740) SCHEDULE D, PART X, LINE 2 GBP IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. FURTHER, GBP HAS QUALIFIED AS A PUBLIC CHARITY UNDER SECTIONS 509(A)(1) AND 170(B)(1)(A)(VI) AND IS NOT A PRIVATE FOUNDATION. GBP IS EXEMPT FROM TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME. NO TAXABLE UNRELATED BUSINESS INCOME WAS GENERATED AND,ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN MADE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. GBP RECOGNIZES OR DERECOGNIZES TAX POSITIONS ON A "MORE LIKELY THAN NOT" THRESHOLD. THIS APPLIES TO POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. GBP CONSIDERED ITS INCOME TAX POSITIONS UNDER THE "MORE LIKELY THAN NOT" LEVEL OF CERTAINTY AND DETERMINED THERE IS NO REQUIREMENT TO ACCRUE ANY INCOME TAX LIABILITY. OTHER REVENUE NOT INCLUDED ON FORM 990 CHEDULE D, PART XI, LINE 2d Effective July 1, 2014, GBI-I, L.P., a related partnership to GBP, the filing organization, changed its accounting policy as it relates to allocation of income and losses between the General and Limited Partners. All such income and losses were previously allocated in accordance with committed capital. GBI-I, L.P has changed its policy with retrospective application whereby these are now allocated in accordance with the distribution provisions of the Agreement, whereby all losses are allocated to the General Partner. The change in accounting policy had the following impact on the GBP's Unrestricted Net Assets and Noncontrolling interest in GBI-I, L.P: -2,796,496 Unrealized Foreign Exchange Rate Fluctuation: -116,745 ---------------- Total: -2,913,241 OTHER EXPENSES NOT INCLUDED ON FORM 990 SCHEDULE D, PART XII, LINE 2d On December 14, 2015, GBP, the filing organization, received notification from a donor that their contribution would be allowed to expire. As a result, GBP recorded an allowance for bad debt loss for the uncollectable amount as of June 30, 2015: -825,960 true South America 1 8 Program Services Prog. Advisory Serv. 630975 East Asia and the Pacific 3 Program Services Prog. Advisory Serv. 195396 Sub-Saharan Africa 1 7 Program Services Prog. Advisory Serv. 784724 South Asia 1 11 Program Services Prog. Advisory Serv. 702166 Central America and the Caribbean Program Services Prog. Advisory Serv. 16719 South Asia Investments 366711 Sub-Saharan Africa Investments 335197 South America Investments 416193 Central America and the Caribbean Investments 6012914 3 29 3 29 9460995 9460995 Europe (Including Iceland and Greenland) Technical Assistance 44123 South Asia Technical Assistance 33295 South America Technical Assistance 13449 3 false true false false false Procedure For Monitoring Use Of Grant Funds Outside U.S. Schedule F, Part I, Line 2 Use of Funds reports are obtained quarterly and annually a copy of the audited financials of the recipient organization are reviewed. GBF works closely with its high impact businesses abroad to create customized technical assistance programs based on the needs of the business. In addition to requiring each grantee to submit quarterly reports on use of funds, financial status, and achievements as a result of the grant, GBF meets regularly with the business to foster a working relationship which allows for constant updates and open communication about the grant use and future partnerships. X X X X false false true false true false false false false Harold Rosen Chief Executive Officer 196429 0 69009 0 0 0 13198 0 1488 0 280124 0 0 0 Jaime Ramirez Chief Investment Officer 151873 0 54426 0 0 0 10409 0 127 0 216835 0 0 0 Alycia Kellman VP, Legal, Compl & HR 117024 0 39951 0 0 0 7890 0 145 0 165010 0 0 0 EQUITY BASED DEFERRED COMPENSATION SCHEDULE J, PART I, LINE 4C and 5B IN EFFORT TO ATTRACT AND RETAIN HIGHLY-QUALIFIED STAFF AND INCENTIVIZE HIGH PERFORMANCE OF THE FUND, THE ORGANIZATION CREATED A STAFF INCENTIVE PLAN WHEREIN CERTAIN MEMBERS OF THE MANAGEMENT TEAM CAN RECEIVE A PERCENTAGE OF THE ORGANIZATION'S ALLOTTED DISTRIBUTION PAID FROM A RELATED PARTNERSHIP. THE PLAN IS STRUCTURED WITH A VESTING SCHEDULE AND THE PAYOUT IS CONTINGENT ON THE SUCCESS OF THE RELATED PARTNERSHIP'S FUTURE EARNINGS. THE AMOUNT PAYABLE TO THE MANAGEMENT TEAM IS NOT CURRENTLY FIXED AND DETERMINABLE, AND IS NOT REPORTED ON SCHEDULE J AS COMPENSATION TO THE RECIPIENT. ORGANIZATION STRUCTURE GRASSROOTS BUSINESS FUND (GBF), A BRAND OF ENTITIES, DELIVERS A DISTINCTIVE BLEND OF INVESTMENT CAPITAL AND BUSINESS ADVISORY SERVICES THROUGH TWO MAIN VEHICLES WORKING TOGETHER: A PRIVATE INVESTMENT FUND AND A NON-PROFIT ORGANIZATION. THROUGH THE FUND, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I), GBF MAKES EQUITY, MEZZANINE EQUITY, MEZZANINE DEBT, AND STRAIGHT DEBT INVESTMENTS. THESE CUSTOMIZED INVESTMENT STRUCTURES ENSURE THAT GBF'S INVESTMENT PERFORMANCE ALIGNS WITH THE BUSINESSES' PERFORMANCE. THE FUND DELIVERS A FORM OF CAPITAL SUITABLE FOR LONG-TERM INVESTMENT IN BUSINESSES SERVICING LOW INCOME COMMUNITIES. IN TANDEM, THE NON-PROFIT GRASSROOTS BUSINESS PARTNERS, INC. (GBP), PROVIDES BUSINESS ADVISORY SERVICES TO CLIENTS IN THE FUND. GBF'S STAFF, EXPERT CONSULTANTS, AND LOCAL SERVICE PROVIDERS FOCUS ON ENHANCING FINANCIAL AND STRATEGIC PLANNING, CORPORATE GOVERNANCE, HUMAN RESOURCE MANAGEMENT, MARKETING, SUPPLY CHAIN MANAGEMENT, AND MANAGEMENT INFORMATION SYSTEMS (MIS). ADDITIONALLY GBP, MANAGES THE INVESTMENT FUND, AND LOOKS FOR WAY TO FURTHER THE FIELD FOR IMPACT INVESTING THROUGH KNOWLEDGE SHARING AND PLATFORM DEVELOPMENT. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A GBF works with high impact businesses (HIBS) that are typically small or midsized by international standards, but economically engage large numbers of the poor. GBF's investment fund makes equity, quasi-equity, and debt investments. These let GBF share the businesses' risks and returns, while providing a form of capital suitable for long-term, wealth creating businesses. GBF's target investment size is currently between $750,000 and $2,500,000 and has an average investment horizon of 5-7 years. The current portfolio companies (19 companies) have directly created wealth for over 28,000 farmers; 51,000 artisans; and cost savings for 1.8 million people, and an additional 8 million family members. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4B GBF's capacity building programs are a combination of business advisory services (BAS) funded through grants and hands-on management support from GBF staff and its partners. These capacity building programs include improvements to governance, general management, reporting, management information systems (MIS), and business/financial planning. These programs are delivered by experienced external consultants, GBF staff, and through our partnerships with other local businesses. GBF's BAS falls into six main categories: financial management, operations, corporate governance and human capacity, strategy, legal and regulatory, and environmental and social. Over the past four years GBF has disbursed over $4.3 million in technical assistance to more then 75 companies who have supported more than 2 million people. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4C GBF is heavily involved in building the field around impact investing by working closely with partner organizations, piloting new initiatives, and contributing lessons learned to a broad audience. As part of partnership building, GBF is a member of numerous working groups including those around impact assessment, the development of impact funds, and careers in impact investing. As the organization grows a continued effort towards external dissemination of information on the successes and lessons learned relating to impact investing will be critical for our advancing of the field. Total number of individuals employed by the Organization Form 990, Part V, Line 2a During fiscal year 2014, GBF employed globally as either employees or near full time consultants 30 individuals across all 5 of its regional operations. Relationship between Board Members Form 990, Part VI, Line 2 THE FOLLOWING DIRECTORS OF THE ORGANIZATION ARE ALSO INVESTORS IN A RELATED PARTNERSHIP, GRASSROOTS BUSINESS INVESTORS I, LP: - ANDREW ADELSON - HAROLD ROSEN - STEPHEN BRENNINKMEIJER - MWAGHAZI MWACHOFI EACH OF THE ABOVE DIRECTORS CONTRIBUTED CAPITAL TO THE PARTNERSHIP AND RECEIVED A CORRESPONDING INVESTMENT INTEREST IN THE PARTNERSHIP. NONE OF THE INVESTORS SERVE ON THE BOARD NOR DO THEY RECEIVE COMPENSATION FROM GRASSROOTS BUSINESS INVESTORS I, LP. Decisions Subject To Approval Form 990, Part VI, Line 7b In addition to GBP's board, there is a Fund Advisory Committee (FAC) which governs the management of GBI-I's funds, the FAC is comprised of some large investors in the fund. Additionally, there is an investment committee which votes on which HIBs will receive funding. This committee must contain a member of GBP's Governing Board who has veto rights. Contemporaneous Documentation- Committees Form 990, Part VI, Line 8b No committees can act on behalf of the governing board. Form 990 Review Process Form 990, Part VI, Line 11b On an annual basis, the audited financial statements of the Grassroots Business Partners, Inc. and completed Form 990 are submitted to the Board of Directors for review and approval, prior to filing the Form 990 with the internal revenue service. At the request of the Board of Directors, a representative of the independent accounting firm may attend the Board of Directors' meeting to answer any questions related to the financial condition/position of the Organization. Conflict Of Interest Policy Monitoring & Enforcement Form 990, Part VI, Line 12c GBF currently has a Conflict of Interest Policy which covers all employees and the Board of Directors. GBF's conflict of interest policy was reviewed and approved by GBF's Board of Directors. GBF requires each board member to sign a conflict of interest disclosure form on an annual basis. The form requires that any current or potential conflicts of interest be disclosed. Should a potential new conflict be disclosed, it is reviewed at either the board or senior management level to determine whether it is an actual conflict. If it is deemed a conflict of interest, the employee or board member is excluded from any decision-making meetings and decisions relating to the transaction. Process For Determining Compensation Form 990, Part VI, Line 15A & 15B The Board of Directors reviews and approves the general structure of the organization's compensation as well as the specific compensation of the management team. The Board governs compensation and bonus administration. The Board decides the general level of compensation for all Staff. Staff is compensated based on industry averages and then compensation is approved by Management. Management's compensation is evaluated annually and approved by the Board. The most recent review of management compensation took place in June 2015, utilizing performance as well and comparable data to determine the final level of compensation for managers. All full time employees are eligible for a bonus equal to a maximum percentage of their gross annual base salary as determined in their written employment contract. The board reviews the overall allocation of bonuses and in detail determines and approves the bonuses for Management. How Documents Are Made Available To The Public Form 990, Part VI, Line 19 All are available upon request. Additionally, financial statements are published in the annual report. Organization's Audit committee Form 990, Part XII, Line 2c The board established an audit committee which now undertakes the selection of the independent accountants and oversees the audit process. other changes in net assets Form 990, part XI, line 9 Effective July 1, 2014, GBI-I, L.P., a related partnership to GBP, the filing organization, changed its accounting policy as it relates to allocation of income and losses between the General and Limited Partners. All such income and losses were previously allocated in accordance with committed capital. GBI-I, L.P has changed its policy with retrospective application whereby these are now allocated in accordance with the distribution provisions of the Agreement, whereby all losses are allocated to the General Partner. The change in accounting policy had the following impact on the GBP's Unrestricted Net Assets and Noncontrolling interest in GBI-I, L.P: -2,796,496 On December 14, 2015, GBP, the filing organization, received notification from a donor that their contribution would be allowed to expire. As a result, GBP recorded an allowance for bad debt loss for the uncollectable amount as of June 30, 2015: -825,960 Unrealized Foreign Exchange Rate Fluctuation: -$116,745 Rounding: - 1 -------------------- Total other change in Net Assets: -3,739,202 GBF GP I LLC 1209 Orange Street Wilmington DE 19801 453041117 holding comp DE 0 0 GBP GBF GP II LLC 2711 Centreville Road Wilmington DE 19808 300847843 holding comp DE 0 0 GBP GBI Master Fund I LP 1710 Rhode Island Ave NW Washington DC 20009 352426767 Investment DE NA Investment -17815 83216 false false 0.00732 GBI-I LP 190 Elgin Avenue Grand Cayman CJ Investment CJ GBF GP I LLC Investment -23171 1922216 false false 0.06960 GBI-II LP 190 Elgin Avenue Grand Cayman CJ Investment GBF GP II LLC false false 1.00000 GBP Investment Advisors Private Ltd 3rd Floor 6 Basant Lok Vasant Vihar New Delhi IN 110 057 INVESTMENT IN GBF GP I C Corp 4320285 7447994 0.99990 true GBP Inc Surcusal Peru Calle Paseo la Republica 6010 Lima Oficina 101 - Mir PE INVESTMENT PE GBF GP I C Corp -206765 36059 1.00000 true false false false false false false false false false false false false false true true false true false false GBI-I and GBI Master Fund N 561607 FMV GBI-I and GBI Master Fund O 492308 FMV Grassroots Business Investors I LP Q 234023 Cash GBP Investment Advisors Private Limited N,O 253516 Cash GBP Inc Surcusal Peru N,O 273957 Cash