2019-11-07T17:07:43-07:00 2018-12-31 990 2018-01-01 133836581 SHARED INTEREST INC SHAR 2123378547 121 West 27th Street Suite 805 New York NY 100016207 Donna Katzin Executive Director 6464420182 2019-11-07 24.105.140.146 2018 2020-03-31 21:24:44Z Donna Katzin 121 West 27th Street Suite 805 New York NY 10001 2916809 0 X www.sharedinterest.org X 1995 DE To promote the equitable development of post-Apartheid South Africa and neighboring countries by guaranteeing bank loans to low-income borrowers so that they may support their families, build or expand their dwellings or start businesses which in turn generate employment for others in their communities. 20 20 7 16 0 0 1758591 1336786 255875 232092 152018 170914 0 0 2166484 1739792 201840 206072 0 0 400832 521817 33500 61750 198304 1135812 506945 1771984 1296584 394500 443208 18318805 16934536 15803317 14258564 2515488 2675972 The Organization seeks to promote social reconstruction in South Africa and neighboring countries by facilitating access to credit for low-income borrowers through the provision of loan guarantees to mainstream banks and other financial institutions. As these lenders have historically been reluctant to extend credit to a sector of the population they consider un-bankable, the majority of Southern African citizens, absent the guarantees, would continue to be economically marginalized. 0 0 1042336 206072 232092 During the 2018 tax year, the organization had outstanding as many as 19 agreements guaranteeing commercial loans to small and growing businesses, agricultural enterprises and co-ops, microfinance institutions and low-cost housing organizations in the Southern Africa region. Sixteen of this number supported enterprises in South Africa, our principal focus of activity; the others were in Mozambique, Swaziland and Malawi, three other countries that are part of the Southern African Development Community. The aggregate exposure involved in the guarantees totaled approximately $5,316,313 in the year. Because the credit facilities arranged by Shared Interest were limited to no more than 75% of the loans they backed, the guarantees ultimately unlocked total lending of sums in excess of the stated amount by virtue of the risk-sharing agreed in the contracts between local institutions and the Organization. Additionally, the guarantee program, implemented by means of the proven trans-border mechanism of standby bank letters of credit, continued to give confidence to institutions in Southern Africa other than traditional banks, such as quasi-governmental funding agencies, to put capital at risk in the sphere of small business finance and lending to economically-disenfranchised individuals. Collateralizing the letters of credit, were the US-based investments of the Organization, funded by loans and donations by American individuals and institutional investors. In return for the loans, the Organization issues Promissory Notes typically paying lenders interest at below market rates. 0 0 0 1042336 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 97 0 1 7 1 0 0 0 0 0 1 1 0 0 0 1 1 0 0 0 X 20 20 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY PA X X X Donna Katzin 2123378547 121 West 27th Street Suite 805 New York NY 100016207 Timothy Smith Chairman & Director 4 X X 0 0 0 Ann Burroughs Vice Chair & Director 1 X X 0 0 0 Matthew Patsky Treasurer & Director 3 X X 0 0 0 Adrienne Bailey Secretary & Director 1 X X 0 0 0 Edward J Bergman Director 0.5 X 0 0 0 Jennifer Davis Director 1 X 0 0 0 Alonzo Fulgham Director 1 X 0 0 0 Sarah Leshner Director 1 X 0 0 0 Linnie McLean Director 2 X 0 0 0 Ricardo Michel Director 1 X 0 0 0 Mandla Nkomo Director 0.5 X 0 0 0 Jehiel Oliver Director 0.5 X 0 0 0 Joshua Posner Director 0.25 X 0 0 0 Amelie Ratliff Director 2 X 0 0 0 Stieneke Samuel Director 1 X 0 0 0 Aniket Shah Director 0.25 X 0 0 0 Ron Shiffman Director 2 X 0 0 0 Phindile Spies Director 1 X 0 0 0 Richard Tolliver Director 2 X 0 0 0 David Wildman Director 2 X 0 0 0 Donna Katzin Executive Director & Officer 55 0 X 63000 0 24388 63000 0 24388 0 0 0 0 0 0 0 182102 0 0 1154684 104004 1336786 Interest Income Returned to Investors 523000 231507 231507 0 0 Book Sales 511130 585 585 0 0 0 0 0 0 232092 169681 0 0 169681 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1106821 1921 1104528 2981 2293 -1060 1233 0 0 1233 69508 182102 69508 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1739792 232092 0 170914 0 0 0 0 206072 206072 0 0 87389 70045 5442 11902 0 0 0 0 361911 290085 22536 49290 5771 4626 359 786 29034 23272 1808 3954 37712 30228 2348 5136 0 0 0 0 5410 5410 0 0 13000 6500 6500 0 0 0 0 0 61750 61750 0 0 0 0 29370 25113 2025 2232 35953 11995 0 23958 25412 19037 1479 4896 8121 6509 506 1106 0 0 0 0 56476 45267 3517 7692 25378 21798 0 3580 0 0 0 0 1509 1509 0 0 231507 231507 0 0 0 0 0 0 952 763 59 130 2638 2115 164 359 Investment, Facility Fees & Bank Charges 20209 14920 5289 0 Printing & Publications 34189 13167 0 21022 Membership & Business Registration Fees 16330 12005 3881 444 Miscellaneous 491 393 31 67 0 0 0 0 1296584 1042336 55944 198304 X 0 0 0 0 113 269 895066 500222 617783 148704 0 0 0 0 0 0 0 0 0 0 52039 70924 64957 62295 1255 2662 1338309 2237864 0 0 15165242 13745684 0 0 248998 228207 18318805 16934536 77189 104042 0 0 0 0 0 0 0 0 0 0 0 0 15670500 14102500 55628 52022 15803317 14258564 X 2334671 2605083 180817 70889 0 0 2515488 2675972 18318805 16934536 443208 -282724 0 0 0 0 X 0 1 X 1 0 X 1204535 1204127 1264716 1758591 1336786 6768755 0 0 0 0 0 0 0 0 0 0 0 0 1204535 1204127 1264716 1758591 1336786 6768755 1137543 5631212 42005 68459 90548 144383 169681 515076 0 0 0 0 0 0 0 0 0 0 0 0 7283831 1270732 0.77311 0.81195 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 7791 7066 725 0 57166 55229 1937 0 0 0 0 2662 Debt Securities Posed As Collateral 13745684 F 13745684 0 Accrued Interest Payable to Note Holders 52022 52022 X 1284952 -282724 59391 0 0 -223333 1508285 231507 0 231507 1739792 1124468 59391 0 0 0 59391 1065077 231507 0 231507 1296584 Schedule D, Part X, Line 2 The organization has concluded there are no uncertain tax positions requiring recognition in the financial statements. 1 Sub-Saharan Africa 0 0 Grantmaking 206072 Sub-Saharan Africa 0 0 Program Services Local Consulting services retained for purposes of due diligence and legal fees incurred in the course of managing the Organization's relationship with a South African collaborating partner. 13123 Sub-Saharan Africa 0 0 Program Services Travel to and from the region in order to perform guarantee due diligence in South Africa, Zambia and Malawi and to conduct Board meetings in South Africa specifically. 13384 0 0 232579 Sub-Saharan Africa General Support 206072 Wire Transfer 0 Face Value of USD 1 0 0 0 0 0 0 0 Schedule F, Part I, Line 2 The Organization requires quarterly and annual financial statements and periodic narrative reports of program accomplishments from grantees. If an independent audit was conducted of any grantee, a copy is required to be furnished to us. Additionally, the Executive Director makes field visits at least once annually, but more often twice a year. In the case of the Thembani International Guarantee Fund, a collaborating entity organized under South African law as an "association not for gain," the Organization has seats on its board of directors and these US members participate in the TIGF annual meeting in their capacities as Directors. Other contact is regular and sustained and conducted by mail, telephone and email, most notably by members of the Credit Committee of the filing organization's Board of Directors, the members of which regularly carry out due diligence in terms of beneficiaries proposed for loan guarantees and exercise their power to approve or disapprove support for credit applications of emerging businesses and microfinance intermediaries lodged with mainstream lending institutions in the Southern African region. X X X X X X X 1 Compass Events LLC 444 Brickell Avenue Suite 51-347 Miami FL 33131 Organized fund-raising dinner and solicited donations, on a flat fee basis, from most of the invitees. 1 251610 61750 189860 251610 61750 189860 NY PA Dinner Event 251610 182102 69508 0 0 0 69508 0 0 0 0 251610 182102 69508 0 0 0 69508 0 0 69508 0 Schedule G, Part I, Line 2b Relative to the custody of funds, the fundraising firm had custody of some of the funds, but not control of the use thereof. For purposes of tracking pledge fulfillment only, the firm received some of the dinner-related payments in the form of check at the firm's address. All checks, however, were payable to Shared Interest and forwarded to the Organization by overnight courier at least weekly. At no time, did the fundraiser have authority to make deposits or otherwise cash the funds. Schedule G, Part I, Line 2b(v) The Organization paid all fees of the fundraiser directly from its own bank account. There was never any retention or offset of funds received by the fundraiser in fulfillment of pledges. As to the amount of the professional fee reported here, the fundraiser received an additional $750.00 as reimbursement for expenses incurred out of pocket for production of an in-house mailing to invitees. X 2 104004 FMV 0 0 1 0 Schedule M, Part I, Line 9 The Organization received gifts in 2018 from 2 individuals in the form of 2 separate blocks of publicly-traded equity securities. The total amount reported was determined by reference to the mean fair market value of the stocks as reported by the exchanges on which they traded on the day the securities were received in the organization's accounts. Form 990, Part VI, Section B, Line 11b Once a tentative Form 990 is prepared, the Organization forwards an electronic copy to each of the 9 members of the Executive Committee of the Board of Directors. Accompanying the draft form is a narrative which includes highlights of any changes in the Form from the prior year version. Convening by conference call, the Executive Committee reviews the draft paying particular attention to governance issues and financial issues to the extent they have bearing on the preservation of the Organization's tax exempt status. Once the Committee is satisfied their input is reflected in the draft Form, a copy of the 990, and all of its schedules, is forwarded to each member of the full Board with instructions that, should they have comments, they need respond as soon as possible so that the final document is filed timely. Form 990, Part VI, Section B, Line 12c Every year, before its November annual meeting, Shared Interest distributes a conflict of interest form to each member of the Board and requires that each Board member complete and return it prior to the conclusion of the meeting. The form seeks disclosure of any conflict of interest in the context of IRS guidance to the form 990 and its Glossary defining key terms Form 990, Part VI, Section B, Line 15 Shared Interest's Board members serve voluntarily and receive no compensation save for reasonable reimbursement of expenses related to their work as Board members. Every two years, the Board's Personnel Committee reviews existing salary ranges for ALL of Shared Interest's employees, including the Executive Director, and sets those ranges anew based on comparability studies and data from like organizations in the New York City area. After determining the ranges, the Committee makes recommendations for adoption by the full Board and sees to it that salaries of all hires fall within policy parameters. Should a Board member, on a one-off basis, apply for compensation that could possibly be interpreted as presenting a conflict of interest, the Board will refer to its written policy document and proceed to address the issue in the manner prescribed. After disclosure of the financial interest and all material facts, and after any discussion with the interested party, s/he must leave the Board of Directors' or Committee meeting while the determination of a conflict of interest is discussed and voted upon by disinterested members. In their deliberations, the Board of Directors or committee members shall determine whether the Organization can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict. If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the Board or any committee shall determine by majority vote of disinterested directors whether the transaction or arrangement is in the Organization's best interest, for its own benefit, and whether it is fair and reasonable and at arm's length. Only then will the applicant and the Organization sign an agreement resulting in compensation to the Board member applicant. Form 990, Part VI, Section C, Line 19 All of Shared Interest's governing documents, the conflict of interest policy and financial documents are available to the public at no charge for photocopying or printing. While we have not yet had anyone ask to inspect our documents in the office, we would be pleased to make these available on our premises at a mutually convenient time. While interested parties generally find our Form 990 either on our own website or that of the NYS Attorney General, Shared Interest also makes its annual report, which contains its most recent audited financials, available on its own site (and also mails and emails copies to all supporters for whom it has either street or electronic addresses).