2015-02-12T15:17:17-06:00 2014-06-30 Grant Thornton LLP 2010 CORPORATE RIDGE SUITE 400 MCLEAN VA 22102 990 2013-07-01 262108051 GRASSROOTS BUSINESS PARTNERS INC % REBEKAH MCKNIGHT PLOTKIN GRAS 2025186865 1710 Rhode Island Avenue NW Suite 1000 Washington DC 20036 Rebekah McKnight Plotkin VP Finance and Administration 2025186865 2015-02-06 true Mary Torretta P00847851 2025186865 2013 2016-02-25 16:41:14Z GRASSROOTS BUSINESS FUND Harold Rosen 1710 Rhode Island Avenue NW Washington DC 20036 2992047 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 17 14 0 0 1027167 999387 1506867 1896619 -230770 -164474 81257 57533 2384521 2789065 330731 232033 0 0 2361261 2051878 0 0 132555 1994554 2175538 4686546 4459449 -2302025 -1670384 16222344 12989555 2082296 509923 14140048 12479632 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 true 1014466 1896619 High Impact Investing - See Schedule O. 1729042 232033 Capacity Building Programs - See Schedule O. 652763 Education/Information Sharing - See Schedule O. 3396271 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 true false true false false false false false false false false false false false false true true true true false false true 10 0 17 true false true PE IN KE false false false false false false false false X 6 5 true false false false false false false 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 X X 235869 0 13021 Stephen Brenninkmeijer Director 1.0 X 0 0 0 Holly Wise Director 1.0 X 0 0 0 Andrew Adelson Chairman of the Board 10.0 X 0 0 0 Mwaghazi Mwachofi Director 1.0 X 0 0 0 Mary Houghton Director 1.0 X 0 0 0 Jaime Ramirez Chief Investment Officer 40.0 X 167826 0 21860 Alycia Kellman VP, Legal, Compl & HR 40.0 X 132836 0 12087 Robert Webster Former COO, SEE SCH. J PAGE 38 40.0 X 197456 0 22567 Lilian Mramba Africa Regional Manager 40.0 X 111609 0 12566 Natalia Barantseva LatAm Regional Manager 40.0 X 117618 0 11893 963214 0 93994 6 false true false Sasidhar Ravinuthala Consultancy 114460 N Cheng Co 40 Exchange Place Suite 1206 NEW YORK NY 10005 Accounting Services 113423 Ishani Chattopadhyay 3RD FLOOR 6 BASANT LOK VASANT VI NEW DELHI 0 IN Consultancy 113176 Grant Thornton LLP 2010 Corporate Ridge Suite 400 MCLEAN VA 22102 Accounting Services 102170 4 999387 999387 INTEREST-PROGRAM RELATED 900099 49681 49681 GBI-I MGMT & OPERATIONS FEE 900099 1846938 1846938 1896619 1696 1696 0 0 0 0 0 36812 202982 -166170 -166170 -166170 0 0 0 OTHER INCOME 900099 57533 57533 57533 2789065 1896619 -106941 X 54500 54500 0 177533 177533 0 694145 541433 124946 27766 0 1098828 857086 197789 43953 62560 48797 11261 2502 111963 87331 20153 4479 84382 65818 15189 3375 0 133771 110764 23007 337993 47384 287877 2732 0 0 0 793127 743419 48135 1573 684 531 122 31 47491 28794 17036 1661 95486 74137 17074 4275 0 163290 126781 29199 7310 408589 325158 56608 26823 0 7479 4904 2575 2155 2155 0 29939 23245 5354 1340 10891 8456 1947 488 BANK FEES AND SERVICE CHARGES 5282 37 5245 FOREIGN WITHHOLDING TAXES 7917 7917 DUES, MEMBERSHIPS, SUBSCRIPTIO 9647 7490 1725 432 FEES AND PERMITS 7628 5923 1364 341 114169 56750 53945 3474 4459449 3396271 930623 132555 3086666 2998364 2999159 1748875 2830261 2523328 1679938 103943 0 0 0 0 0 131707 0 0 0 0 157417 102485 83943 54932 0 0 0 0 5500293 5340460 0 0 42084 87946 16222344 12989555 509797 475639 0 0 0 34284 0 0 0 0 0 0 0 0 0 0 1572499 0 2082296 509923 X 7428030 7288468 6712018 5191164 0 0 14140048 12479632 16222344 12989555 -1670384 4518 5450 X false true X true false X 183026 50371 10240642 1027167 999387 12500593 0 0 183026 50371 10240642 1027167 999387 12500593 3754026 8746567 31893 22206 6171 1526 1696 63492 0 21195 131025 41553 81257 57533 332563 12896648 4389007 0.67820 0.00000 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 14782 5991 8791 142635 96494 46141 54932 INVESTMENTS - PROGRAM 5340460 F 5340460 0 0 X 2859173 4518 65590 70108 2789065 2789065 4525039 65590 65590 4459449 4459449 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. true South America 1 5 Program Services Prog. Advisory Serv. 938002 East Asia and the Pacific 2 Program Services Prog. Advisory Serv. 254163 Sub-Saharan Africa 1 8 Program Services Prog. Advisory Serv. 848892 South Asia 1 6 Program Services Prog. Advisory Serv. 649379 Central America and the Caribbean Program Services Prog. Advisory Serv. 5750 Sub-Saharan Africa Grantmaking Capacity Building Prog 133693 South America Grantmaking Capacity Building Prog 29610 East Asia and the Pacific Grantmaking Capacity Building Prog 8500 Europe (Including Iceland and Greenland) Grantmaking Capacity Building Prog 5730 South Asia Investments 208366 Sub-Saharan Africa Investments 296737 South America Investments 277659 Central America and the Caribbean Investments 5340460 3 21 3 21 8996941 8996941 East Asia and the Pacific Technical Assistance 8500 EFT Central America and the Caribbean Technical Assistance 14460 EFT Sub-Saharan Africa Technical Assistance 118472 EFT Europe (Including Iceland and Greenland) Technical Assistance 5730 EFT Central America and the Caribbean Technical Assistance 6650 EFT Sub-Saharan Africa Technical 6244 EFT Central America and the Caribbean Technical Assistance 8500 EFT 7 false 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. true BizCorps 888 16th St NW Washington DC 20006 455530893 17000 Technical Assistance Novica United 3250 Ocean Park Boulevard Suite 30 Santa Monica CA 90405 954714374 37500 Capacity 2 Procedure for Monitoring Use of Grant Funds Inside U.S. Schedule I, 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 capacity building partners to create customized plans for its high impact businesses abroad. In addition to requiring quarterly reports on use of funds and achievements of the organization, GBF meets regularly with the organization to foster a working relationship which allows for constant updates and open communication about the grant use. X X X X false false false false false false false false false Harold Rosen Chief Executive Officer 192102 0 42584 0 1183 0 11734 0 1287 0 248890 0 0 0 Jaime Ramirez Chief Investment Officer 138743 0 27842 0 1241 0 8329 0 13531 0 189686 0 0 0 Robert Webster Former COO, SEE SCH. J PAGE 38 153297 0 42722 0 1437 0 8932 0 13635 0 220023 0 0 0 Equity based deferred compensation Schedule J, Part I, Line 4c 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. Former Officer Schedule J, Part II Robert Webster served as Chief Operating Officer until June 2013. He remained on as investment advisor through calendar year 2014. 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. Significant Changes to Program Services Form 990, Part III, Line 3 GBP no longer directly makes investments in high impact businesses, instead these are done through the partner organization, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I). Program Service Accomplishments Form 990, Part III, Line 4A Through its partner organization, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I), GBI-I invests in high impact businesses that are typically small or midsized by international standards, but economically engage large numbers of the poor. GBI-I's investment fund makes equity, quasi-equity, and debt investments. These let GBI-I share the businesses' risks and returns, while providing a form of capital suitable for long-term, wealth creating businesses. The target investment size is currently between $750,000 and $2,500,000 and has an average investment horizon of 5-7 years. The current active portfolio ($29.9 million) annually supports 9.2 million people, by creating over $49.2 million in economic value through income and savings. 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 three GBF has disbursed over $2.5 million in technical assistance. 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 focused on impact investment. 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 high impact businesses 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' Finance Committee 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 Grassroots Business Fund. 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 and employee 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 determined 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, Lines 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 2014, 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 as well. FORM 990 PART IX LINE 11G DESCRIPTION:LONG-TERM CONSULTANTS TOTAL FEES:291272 FORM 990 PART IX LINE 11G DESCRIPTION:SHORT-TERM CONSULTANTS TOTAL FEES:51671 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACTUAL / IT SUPPORT TOTAL FEES:33558 FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTANT (BAS) TOTAL FEES:416626 GBF GP I LLC 1209 Orange Street Wilmington DE 19801 453041117 holding comp DE 0 0 GBP Grassroots Business Investors Fund I LP 190 Elgin Aveue Grand Cayman CJ 453187922 Investment CJ GBF GP I INVESTMENT -260681 7124697 false 0 false 0.28240 GBI Master Fund I LP 1710 Rhode Island Ave NW Washington DC 20009 352426727 Investment DE NA INVESTMENT -675 10692 false 0 false 0.00075 false false false false false false false false false false false false false true true false true false false Grassroots Business Investors Fund I LP N 440949 FMV Grassroots Business Investors Fund I LP O 683997 FMV Grassroots Business Investors Fund I LP Q 323124 Cash