2019-11-15T09:29:46-06:00 2018-12-31 GRANT THORNTON LLP 757 THIRD AVENUE 9TH FLOOR NEW YORK NY 100172013 990 2018-01-01 043478123 Root Capital Inc % BRYAN WOLINER ROOT 6176615792 130 Bishop Allen Drive 2nd Floor Cambridge MA 021393309 BRYAN WOLINER Interim CFO & Treas. 6176615792 2019-11-13 true SCOTT THOMPSETT P00741490 2125990100 65.229.27.130 04586620193195000007 2019-11-15 P AA918D8483008E32154F6CC583B06457B9AF9E42 03CBAE45BD8E2F188EB28F31E827C7F4869431D2 2018 2020-03-31 21:24:44Z William F Foote 130 Bishop Allen Drive 2nd Floor Cambridge MA 021393309 22506661 false X www.rootcapital.org X 1999 MA A non-profit organization that helps increase income and stability for rural farmers disconnected from the formal economy. 16 14 69 18 0 21751 11510919 14068743 9478238 7850854 112810 -5818 970491 361941 22072458 22275720 32732 549685 0 0 8143768 8569288 0 0 922406 12757743 13964504 20934243 23083477 1138215 -807757 105322211 90858790 89072080 75139983 16250131 15718807 X ROOT CAPITAL SEEKS TO INCREASE INCOMES AND STABILIZE EMPLOYMENT FOR FARMERS IN AFRICA, SOUTH-EAST ASIA, AND LATIN AMERICA. ROOT CAPITAL DOES THIS THROUGH A PROVEN CHANNEL: SUPPORT FOR AGRICULTURAL BUSINESSES THAT COLLECT AND MARKET THE CROPS OF THOUSANDS OF FARMERS. false false 14687155 0 8212795 ROOT CAPITAL PROVIDES AGRICULTURAL BUSINESSES WITH A UNIQUE COMBINATION OF CAPITAL, TRAINING AND ACCESS TO GLOBAL MARKETS TO HELP THEM GROW. THESE CORE ACTIVITIES COMPRISE A THREE-PRONG STRATEGY: FINANCE, ADVISE, CATALYZE. PLEASE REFER TO THE ORGANIZATION'S WEBSITE FOR FURTHER INFORMATION AND STATISTICS ON PROGRAM ACCOMPLISHMENTS. FINANCE: ROOT CAPITAL TYPICALLY PROVIDES LOANS RANGING FROM $50,000 TO $3 MILLION TO RURAL SMALL AND GROWING BUSINESSES, ESPECIALLY THOSE BUSINESSES NOT CURRENTLY REACHED BY COMMERCIAL LENDERS. 3488490 460082 0 ADVISE: ROOT CAPITAL'S ADVISORY SERVICES PROGRAM PROVIDES TARGETED FINANCIAL TRAINING TO CURRENT AND PROSPECTIVE CLIENTS SO THEY HAVE THE FINANCIAL MANAGEMENT SKILLS THEY NEED TO GROW AND SUSTAIN THEIR BUSINESSES. ROOT CAPITAL'S FINANCIAL ADVISORY SERVICES (FAS) ARE DESIGNED TO PREPARE BUSINESSES WITH GROWTH POTENTIAL TO QUALIFY FOR CREDIT, TO SHEPHERD MORE PROSPECTIVE CLIENTS INTO OUR PORTFOLIO, AND TO MITIGATE THE RISK OF LENDING TO THESE BUSINESSES. 1608710 89603 0 CATALYZE: ROOT CAPITAL, INC. SEEKS TO CATALYZE A THRIVING FINANCIAL MARKET TO SUPPORT HISTORICALLY UNDERSERVED RURAL SMALL AND GROWING BUSINESSES. THE PROGRAM'S STRATEGY IS TO: - INNOVATE - CONDUCT R&D, STUDY IMPACT AT THE HOUSEHOLD AND BUSINESS LEVELS, AND LOOK FOR WAYS TO INCREASE IMPACT. - ACCELERATE - SHARE LEARNING FROM WORK WITH LIKE-MINDED PEERS TO BUILD COMMON STANDARDS AND PRACTICES NECESSARY FOR THE INDUSTRY TO THRIVE AND SCALE. 19784355 true true false false false false false false true false true false true false true true false true false true true true false false false false false false false true false false false true false false false false false false false false false true true false false false true 205 0 true 69 true true true true KE CS SG PE MX false false false false false false false false false false X 16 14 false false false false false false false true true false false true true true true true true true true false AL AK AR CA CO CT DC FL GA IL KS KY ME MD MA MI MN MS NV NH NJ NM NY NC ND OH OK OR PA RI SC TN UT VA WA WV WI X X BRYAN WOLINER 6172992424 130 BISHOP ALLEN DRIVE 2ND FLOOR Cambridge MA 021393309 X Jeremy Mindich Chair 1.0 0.0 X X 0 0 0 Philip Martin Brown Board Member 1.0 0.0 X 0 0 0 Peggy Clark Board Member 1.0 0.0 X 0 0 0 Franz Colloredo-Mansfeld Board Member 1.0 0.0 X 0 0 0 Daniel Crisafulli Board Member 1.0 0.0 X 0 0 0 Melissa Dann Board Member 1.0 0.0 X 0 0 0 Funke Oyewole Board Member (thru 3/2018) 1.0 0.0 X 0 0 0 Rick Peyser Board Member 1.0 0.0 X 0 0 0 Jack Taylor Board Member 1.0 0.0 X 0 0 0 Eugene Weil Board Member 1.0 0.0 X 0 0 0 Simon Winter Board Member 1.0 0.0 X 0 0 0 Ana Zacapa Board Member 1.0 0.0 X 0 0 0 Grant Gund Board Member 1.0 0.0 X 0 0 0 Jan-Maarten Mulder Board Member 1.0 0.0 X 0 0 0 Peter Bernard COO & Board Membr (6/18-10/18) 24.0 0.0 X X 57277 0 6102 James Benenson III Board Member (as of 2/2018) 1.0 0.0 X 0 0 0 Mary Barton Dock Board Member (as of 5/2018) 1.0 0.0 X 0 0 0 CD Glin Board Member (As of 5/2018) 1.0 0.0 X 0 0 0 William F Foote President & CEO 40.0 0.0 X 273194 0 24602 Jared Chase CFO/Treasurer & COO 40.0 0.0 X 197570 0 10577 Nancy Everett Gen. Counsel & Interim COO 40.0 0.0 X 162895 0 19802 Bryan Woliner VP Finance & IT, Interim CFO 40.0 0.0 X 141867 0 19758 Marli Porth Chief of Staff/Clerk 40.0 0.0 X 78053 0 5043 Brian Matthew Onie Milder EVP of Strategy 40.0 0.0 X 185870 0 21581 Darcy Salinger Chief Credit Officer 40.0 0.0 X 157081 0 6283 Jean Forrester Controller 40.0 0.0 X 148988 0 22427 Lubna Maria Elia Sr Dir, US HR & Corp Complianc 40.0 0.0 X 119263 0 42976 Michael McCreless Sr Director of Impact 40.0 0.0 X 109335 0 14742 Elicia Carmichael VP Strategy 40.0 0.0 X 117283 0 18278 1748676 0 212171 12 false true false Grant Thornton 75 State Street 13 BOSTON MA 02109 Audit and tax 149093 Open Capital Advisors NAUTICA CENTER ROYAL ROAD BLACK RIVER 0 MP Consulting 221100 Force Optimized LLC 2173 Salk Ave Suite 250 CARLSBAD CA 92008 Consulting 435970 3 1883985 12184758 14068743 LOAN INTEREST 522298 4257370 4257370 0 0 LOAN FEES 522298 1125390 1125390 0 0 LOAN GUARANTEES/RECOVERIES 522298 2167071 2167071 0 0 LOAN MANAGEMENT SERVICES 522298 301023 301023 0 0 7850854 225123 225123 0 0 0 0 0 230941 -230941 -230941 -230941 0 0 0 0 0 0 0 0 0 CONTRACTUAL REVENUE REIMBURSEMENTS 900099 305727 305727 0 0 MISCELLANEOUS REVENUE 900099 56214 56214 0 0 361941 22275720 8212795 0 -5818 X 0 0 549685 549685 0 1665590 867151 701481 96958 0 5345569 4344987 526484 474098 118293 92968 14341 10984 929339 516101 365783 47455 510497 442125 20039 48333 0 297047 84136 212911 175093 5129 169964 0 0 0 1973354 1498632 439900 34822 25786 8408 16561 817 123455 92259 31196 560492 60231 500261 0 1037354 809653 153682 74019 981556 903032 36587 41937 0 328327 327492 835 1759365 1759365 0 113549 113549 85906 1853 84053 ALLOWANCE FOR LOAN LOSS 6406250 6406250 0 0 OTHER DIRECT COSTS 22792 486 22306 0 MEMBERSHIP & PUBLICATIONS 74178 29216 44962 SHARED COST ALLOCATION 495736 -541241 45505 23083477 19784355 2376716 922406 38211338 14325029 2951425 25031999 2693118 3088061 2078737 3015673 0 0 0 0 191795 71923 0 0 498188 598299 1520531 379256 804067 1141275 210885 258862 0 0 56335906 42212773 0 0 1346752 1114896 105322211 90858790 1813190 2149089 0 0 109187 2483085 0 0 4470218 91345 175000 125000 0 0 82162749 70191661 341736 99803 89072080 75139983 X 10654322 11134002 5595809 4584805 0 0 16250131 15718807 105322211 90858790 X -807757 5249 271184 X false true X true true true X 7221264 6528783 8283243 11510919 14068743 47612952 0 0 7221264 6528783 8283243 11510919 14068743 47612952 6095088 41517864 152280 94009 108868 112649 225123 692929 0 37635 37635 48343516 55044957 0.85881 0.85171 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true X 82399 38476 43923 111508 103439 8069 1326624 237341 1089283 1141275 LOANS RECEIVABLE 42212773 F 42212773 0 DEFERRED RENT LIABILITY 95969 OTHER LIABILITIES 3834 99803 X 14530381 5249 143843 -7894431 -7745339 22275720 22275720 15061705 143843 143843 14917862 8165615 8165615 23083477 Escrow and Custodial Arrangements SCHEDULE D, PART IV, LINE 2B AT TIMES, ROOT CAPITAL CO-LENDS WITH OTHER ORGANIZATIONS AND ADMINISTERS THE ENTIRE LOAN. CREDIT COUNSELING AND DEBT MANAGEMENT SERVICES ARE PROVIDED BY THE CO-LENDER. IN MANY LOCATIONS, ROOT CAPITAL BEARS THE RESPONSIBILITY TO CREATE A TRIANGULATED PARTNERSHIP BETWEEN THE CO-LENDER, BORROWER, AND COMMERCIAL BUYER. THIS CREATES AN ADDED MEASURE OF SECURITY FOR ROOT CAPITAL'S CLIENTS BY ENSURING THAT THEIR PRODUCTS CAN BE SOLD AT A FAIR PRICE, AND HELPS BUYERS CONTRIBUTE TO THE LOCAL ECONOMIES. THE ESCROW FUNDS REPRESENT A TIMING DIFFERENCE BETWEEN REPAYMENTS FROM BORROWERS AND TRANSFER OF FUNDS DUE TO CO-LENDING PARTNERS. THE ESCROW ACCOUNT IS ALSO USED WHEN A BUYER PAYS ROOT CAPITAL THE FULL AMOUNT OF THE MONEY OWED TO A SUPPLIER/BORROWER. ROOT CAPITAL DEDUCTS THE PRINCIPAL AND INTEREST OWED ON ITS LOAN AND FORWARDS THE REMAINING BALANCE TO THE SUPPLIER/BORROWER. Liability for Uncertain Tax Position (ASC 740) SCHEDULE D, PART X, LINE 2 Root Capital follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the combined financial statements if the position is "more-likely-than-not" to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. Root Capital is exempt from federal income tax under IRC section 501(c)(3), though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code. Root Capital has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated business income; to determine its filing and tax obligations in jurisdictions for which it has nexus; and to identify and evaluate other matters that may be considered tax positions. Root Capital has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements. In addition, Root Capital has not recorded a provision for income taxes as it has no material tax liability from unrelated business income activities. Reconciliation of revenue SCHEDULE D, PART XI, LINE 2D PROVISION FOR LOAN LOSS: $(6,406,250) INTEREST EXPENSE: &(1,759,365) FOREIGN CURRENCY EXCHANGE GAIN (LOSS): 271,184 ------------------------------------------------------ TOTAL $(7,894,431) Reconciliation of expenses SCHEDULE D, PART XII, LINE 4B PROVISION FOR LOAN LOSS: $6,406,250 INTEREST EXPENSE: $1,759,365 ------------------------------------------------------ TOTAL $8,165,615 true Sub-Saharan Africa 2 24 Program Services Loan Disbursements 25821075 South America 1 13 Program Services Loan Disbursements 34339830 Central America and the Caribbean 1 18 Program Services Loan Disbursements 26953903 North America 1 7 Program Services Loan Disbursements 5078772 East Asia and the Pacific Program Services Loan Disbursements 4813680 Sub-Saharan Africa Program Services Lending/Advisory 3157822 South America Program Services Lending/Advisory 1861536 Central America and the Caribbean Program Services Lending/Advisory 1333383 North America Program Services Lending/Advisory 378404 South America Grantmaking Lending/Advisory 250000 Central America and the Caribbean Grantmaking Lending/Advisory 167685 North America Grantmaking Lending/Advisory 102000 East Asia and the Pacific Grantmaking Lending/Advisory 30000 5 62 5 62 104288090 104288090 Sub-Saharan Africa Agricultural 20000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 20000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 20000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire South America Agricultural 15000 wire Central America and the Caribbean Agricultural 15000 wire Central America and the Caribbean Agricultural 15000 wire South America Agricultural 15000 wire Sub-Saharan Africa Agricultural 20000 wire Sub-Saharan Africa Agricultural 20000 wire South America Agricultural 15000 wire North America Agricultural 15000 wire Sub-Saharan Africa Agricultural 20000 wire Sub-Saharan Africa Agricultural 7632 wire South America Agricultural 15000 wire South America Agricultural 15000 wire Sub-Saharan Africa Agricultural 20000 wire Sub-Saharan Africa Agricultural 29900 wire Sub-Saharan Africa Agricultural 20000 wire North America Agricultural 87000 wire 28 false false true false false false PROCESS FOR MONITORING USE OF GRANTS Schedule F, Part I, line 2 ROOT CAPITAL IS RESPONSIBLE FOR THE ACTIONS OR INACTIONS OF ITS SUBRECIPIENTS AS STIPULATED UNDER THE AGREEMENTS. THE MONITORING OF SUBRECIPIENTS IS AN EXTREMELY IMPORTANT PART OF SUBPROJECT MANAGEMENT TO ENSURE THAT THE SUBGRANTEE IS PERFORMING IN ACCORDANCE WITH THE AGREEMENT, STANDARD OPERATING PROCEDURE AND IN FURTHERANCE OF THE PROJECT OBJECTIVES. A VARIETY OF TOOLS are UTILIZED TO MONITOR SUBGRANTEES. THESE INCLUDE: - TIMELY AND THOROUGH REVIEW OF FINANCIAL AND PROGRAMMATIC SUBGRANTEE REPORTS - PERIODIC AND ON-SITE VISITS - REGULAR AND ONGOING COMMUNICATION WITH SUBGRANTEE - INTERNAL AND/OR EXTERNAL AUDITS PATHFINDER CONDUCTS PRE-AWARD AND PERIODIC RISK ASSESSMENTS OF THE SUBRECIPIENTS. DEPENDING ON THE RESULTS, A MONITORING PLAN TOGETHER WITH AN APPROPRIATE MECHANISM FOR FUNDING, FINANCIAL AND PROGRAMATIC MANAGMENT AND MONITORING IS FORMULATED. Accounting Method Used Schedule F, Part I, Line 3, Column (f) THE EXPENDITURES, PER REGION, ARE PRESENTED ON THE ACCRUAL BASIS OF ACCOUNTING. X X X X X false false false false false false false true false William F Foote President & CEO 273194 0 0 0 0 0 11000 0 13602 0 297796 0 0 0 Jared Chase CFO/Treasurer & COO 197570 0 0 0 0 0 7454 0 3123 0 208147 0 0 0 Brian Matthew Onie Milder EVP of Strategy 173803 0 0 0 12067 0 7484 0 14097 0 207451 0 0 0 Nancy Everett Gen. Counsel & Interim COO 158203 0 4692 0 0 0 6880 0 12922 0 182697 0 0 0 Darcy Salinger Chief Credit Officer 157081 0 0 0 0 0 6283 0 0 0 163364 0 0 0 Jean Forrester Controller 148988 0 0 0 0 0 5479 0 16948 0 171415 0 0 0 Bryan Woliner VP Finance & IT, Interim CFO 134829 0 7038 0 0 0 5836 0 13922 0 161625 0 0 0 Lubna Maria Elia Sr Dir, US HR & Corp Complianc 119263 0 0 0 0 0 34206 0 8770 0 162239 0 0 0 NONFIXED PAYMENTS SCHEDULE J, PART I, LINE 7 THE FOLLOWING INDIVIDUALS RECEIVED NONFIXED PAYMENTS IN 2018: NANCY EVERETT $4,692 BRYAN WOLINER $7,038 NONFIXED PAYMENTS REPRESENT BONUSES IN RECOGNITION OF THE ADDITIONAL REPORTING REQUIREMENTS FOR BOTH THE INTERIM COO AND CFO. Rick Peyser BOARD MEMBER investment X 25000 25000 false false true Jack Taylor BOARD MEMBER investment X 100000 100000 false false true 125000 LOANS TO ROOT CAPITAL, INC. SCHEDULE L, PART II TWO BOARD MEMBERS EXTENDED LOANS TO ROOT CAPITAL, INC. THESE LOANS ARE DOCUMENTED IN A WRITTEN AGREEMENT BETWEEN THE ORGANIZATION AND THE BOARD MEMBERS AND THE TERMS ARE NEGOTIATED AT ARMS LENGTH, AND INDEPENDENTLY FROM THE INDIVIDUALS ROLE AT ROOT CAPITAL. THESE LOANS ARE MADE WITHIN THE USUAL PARAMETERS OFFERED TO ALL INVESTORS. ORGANIZATION'S MISSION, CONTINUED FORM 990, PART III, LINE 1 THROUGH A UNIQUE COMBINATION OF CAPITAL, TRAINING, AND ACCESS TO GLOBAL MARKETS, ROOT CAPITAL HELPS AGRICULTURAL BUSINESSES INCREASE FARMER INCOMES, WHICH IN TURN IMPROVES FOOD SECURITY, EMPOWERS WOMEN, CONSERVES ECOSYSTEMS, AND ENCOURAGES THE NEXT GENERATION OF FARMERS. PROGRAM SERVICE ACCOMPLISHMENTS, CONTINUED FINANCE FORM 990, PART III, LINE 4A MOST ROOT CAPITAL LOANS CAN BE CATEGORIZED AS FOLLOWS: 1) LINES OF CREDIT, WHICH ARE USED BY BORROWERS TO COVER COSTS OF PURCHASING RAW PRODUCT FROM THEIR FARMER SUPPLIERS. THESE LINES OF CREDIT HAVE TERMS OF UP TO ONE YEAR AND ARE GENERALLY ORIENTED AROUND A HARVEST OR PRODUCTION CYCLE. 2) FIXED-ASSET LOANS WITH TERMS OF UP TO SEVEN YEARS FOR INVESTMENT IN EQUIPMENT AND INFRASTRUCTURE. 3) GENERAL WORKING CAPITAL LOANS WITH TERMS FROM ONE TO SEVEN YEARS. ROOT CAPITAL ASSESSES PROSPECTIVE CLIENTS AND EVALUATES THEM ON A SERIES OF FINANCIAL, SOCIAL, AND ENVIRONMENTAL CRITERIA. SOCIAL CRITERIA INCLUDE PRICES PAID TO SUPPLIERS, EMPLOYEE WAGES, AND WORKING CONDITIONS, AND COMPANY SUPPORT FOR SOCIAL PROGRAMS SUCH AS TRAINING AND MEDICAL CARE. ENVIRONMENTAL CRITERIA INCLUDE SOIL AND WATER MANAGEMENT, THE IMPACT OF THE BUSINESS ON THE SURROUNDING COMMUNITY, AND STANDARDS FOR PRODUCT HANDLING AND PROCESSING. ROOT CAPITAL'S LENDING SUPPORTS SUSTAINABLE ENVIRONMENTAL PRACTICES THAT PROTECT RURAL ECOSYSTEMS. CROPS PROCESSED AND MARKETED BY ROOT CAPITAL CLIENTS INCLUDE WILD-HARVESTED PRODUCTS SUCH AS NUTS AND NATIVE PLANTS FOR OILS, AGRO-FORESTRY CROPS SUCH AS SHADE-GROWN COFFEE AND COCOA, AND FARM-GROWN FRUITS AND VEGETABLES. LENDING OFFICERS STAY ENGAGED WITH CLIENTS THROUGHOUT THE TERM OF EACH LOAN, AND ROOT CAPITAL'S FINANCIAL ADVISORY SERVICES PROGRAM PROVIDES TRAINING AS NEEDED. Advisory Programs FORM 990, PART III, LINE 4B THOUGH FINANCIAL MANAGEMENT TRAINING IS THE CORE OFFERING OF THE ORGANIZATION'S ADVISORY PROGRAM, ROOT CAPITAL ALSO PROVIDES COMPLIMENTARY NON-FINANCIAL SERVICES, SUCH AS PARTNERSHIP-BASED TRAINING IN AGRONOMY. ROOT CAPITAL PROVIDES TRAINING TO OUR CLIENTS ON FINANCIAL MANAGEMENT, AGRONOMIC PLANNING AND MONITORING, LOAN APPLICATION SUPPORT, FINANCIAL INSTITUTION (FI) ADVISORY AND MOBILE TECHNOLOGY. CATALYZE FORM 990, PART III, LINE 4C THROUGH INDUSTRY ASSOCIATIONS SUCH AS THE ASPEN NETWORK OF DEVELOPMENT ENTREPRENEURS AND THE GLOBAL IMPACT INVESTMENT NETWORK, ROOT CAPITAL PLAYS A LEADERSHIP ROLE IN BUILDING THE ENABLING ENVIRONMENT FOR RURAL SMALL AND GROWING BUSINESS FINANCE. AS A NON-PROFIT COMMITTED TO ALLEVIATING RURAL POVERTY, ROOT CAPITAL SEEKS TO MAXIMIZE THE POSITIVE SOCIAL AND ENVIRONMENTAL IMPACT OF OUR WORK. ECONOMIC, COMMUNITY, AND ENVIRONMENTAL SUSTAINABILITY ARE ALL PART OF OUR CORE VALUES. ECONOMIC SUSTAINABILITY - ROOT CAPITAL CLIENTS LINK SMALL-SCALE FARMERS TO MARKETS THAT CAN OFFER HIGHER AND MORE STABLE PRICES THAN THEY HAVE HISTORICALLY RECEIVED. ROOT CAPITAL CLIENTS ALSO GENERATE EMPLOYMENT INCLUDING MANAGERS, ACCOUNTANTS, AGRICULTURAL EXTENSION STAFF, DRIVERS, AND WORKERS AT PROCESSING PLANTS. ROOT CAPITAL WORKS WITH UNIQUE BUYERS OF AGRICULTURAL AND OTHER SUSTAINABLE PRODUCTS WORLDWIDE INCLUDING COMPANIES SUCH AS COOPERATIVE COFFEES, ANDEAN NATURALS, GEPA, STARBUCKS, KEURIG GREEN MOUNTAIN, AND EQUAL EXCHANGE. COMMUNITY SUSTAINABILITY - FARMER ASSOCIATIONS ENCOURAGE PARTICIPATORY DECISION-MAKING AND ARE A SOURCE OF COMMUNITY OWNERSHIP AND PRIDE. THEY ALSO STEM MIGRATION TO URBAN AREAS BY MAKING TRADITIONAL AGRICULTURAL ACTIVITIES MORE VIABLE. SOCIAL IMPACT INCLUDES STABILIZING INCOMES IN RURAL COMMUNITIES AND CREATING NEW ECONOMIC OPPORTUNITIES FOR WOMEN, INDIGENOUS PEOPLES AND OTHER MARGINALIZED GROUPS. ENVIRONMENTAL SUSTAINABILITY - ROOT CAPITAL CLIENTS TYPICALLY PROVIDE FARMERS WITH TRAINING IN SUSTAINABLE PRODUCTION TO AVOID DEFORESTATION, REDUCE CHEMICAL USE, IMPROVE WATER AND SOIL MANAGEMENT, AND OTHERWISE PROTECT THE HEALTH OF RURAL ECOSYSTEMS. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11B THE FORM 990 WAS PREPARED BY AN INDEPENDENT PUBLIC ACCOUNTING FIRM WITH INFORMATION PROVIDED BY MANAGEMENT. THE FORM 990 IS REVIEWED BY THE CONTROLLER, CHIEF FINANCIAL OFFICER AND PRESIDENT. PRIOR TO FILING, THE COMPLETE FORM 990 IS PROVIDED TO ALL VOTING MEMBERS OF THE BOARD OF DIRECTORS WITH OPPORTUNITY FOR QUESTIONS, COMMENTS, OR EDITS. THE BOARD OF DIRECTORS IS GIVEN 10 DAYS TO REVIEW AND COMMENT ON THE FORM 990. ANY CHANGES ARE INCORPORATED IN THE FINAL FORM 990 WHICH IS FILED WITH THE IRS. CONFLICT OF INTEREST POLICY FORM 990, PART VI, LINE 12C ALL ROOT CAPITAL BOARD MEMBERS AND EMPLOYEES PARTICIPATE IN AN ANNUAL TRAINING ON ROOT CAPITAL'S CODE OF ETHICS, WHICH INCLUDES A CONFLICT OF INTEREST POLICY. DIRECTORS AND OFFICERS COMPLETE A CONFLICT OF INTEREST DISCLOSURE FORM EACH YEAR, WHICH IS REVIEWED BY ROOT CAPITAL'S GOVERNANCE, RISK MANAGEMENT & COMPLIANCE (GRC) TEAM, AND VETTED WITH LEGAL COUNSEL IF NEEDED. IF IT IS NECESSARY TO REVIEW OR CLEAR A CONFLICT RELATED TO THE CURRENT WORK OR ACTIVITY OF ROOT CAPITAL, THAT CONFLICT IS BROUGHT BEFORE THE GOVERNANCE COMMITTEE OF THE BOARD. IF THE DIRECTOR WITH THE CONFLICT SERVES ON THE GOVERNANCE COMMITTEE, S/HE IS RECUSED FROM THE CONVERSATION. THE GOVERNANCE COMMITTEE ENSURES THAT ANY BUSINESS DECISION THAT COULD BE AFFECTED BY THE PARTICULAR CONFLICT IS CONSIDERED OBJECTIVELY BY THE ROOT CAPITAL TEAM AND IS IN THE BEST INTEREST OF THE ORGANIZATION. THE GOVERNANCE COMMITTEE'S CONVERSATION AND DECISION WITH RESPECT TO THE CONFLICT IS RECORDED IN THE MINUTES OF THE MEETING AND SHARED WITH THE WHOLE BOARD IN THE SUBSEQUENT QUARTERLY BOARD BOOK. ALL ROOT CAPITAL PERSONNEL ARE TRAINED ON THE CONFLICT OF INTEREST POLICY IN THE COURSE OF ITS ANNUAL CODE OF ETHICS WORKSHOPS. BEFORE THESE WORKSHOPS, ROOT CAPITAL'S CONFLICT OF INTEREST POLICY IS SHARED WITH THE PARTICIPANTS AND, AFTER THE TRAINING, PARTICIPANTS ARE ASKED TO SIGN AN ACKNOWLEDGEMENT FORM ATTESTING THAT THEY HAVE READ THE POLICIES AND COMPLETED THE TRAINING. COMPENSATION REVIEW PROCESS FORM 990, PART VI, LINE 15 PER DELEGATION OF THE FULL BOARD OF DIRECTORS EACH YEAR, THE ROOT CAPITAL BOARD OF DIRECTORS' GOVERNANCE COMMITTEE REVIEWS THE CEO'S PERFORMANCE AND COMPENSATION ANNUALLY AND RECOMMENDS A SALARY FOR APPROVAL BY THE EXECUTIVE COMMITTEE OF THE BOARD. THIS POWER IS DELEGATED TO THE EXECUTIVE COMMITTEE BY THE BOARD SINCE THE FIRST QUARTER BOARD MEETING OCCURS PRIOR TO SALARY ADJUSTMENTS EACH YEAR. THE CEO'S SALARY RECOMMENDATION IS SUPPORTED BY A COMPENSATION STUDY PERFORMED BY AN OUTSIDE COMPENSATION EXPERT EVERY TWO YEARS. DOCUMENTATION OF THE DELIBERATION AND DECISION IS FILED IN THE CEO'S PERSONNEL FOLDER. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS DETERMINED BY THE CEO OF THE ORGANIZATION USING THE RESULTS OF A COMPENSATION SURVEY CONDUCTED ON AN ANNUAL BASIS. PUBLIC DISCLOSURE FORM 990, PART VI, LINE 19 Root capital makes its form 990 available to the public by retaining a copy at its place of business AND ON ITS WEBSITE, WWW.ROOTCAPITAL.ORG. The form 990 is likewise published on the internet at www.guidestar.org. The organization financial statements are made available in its annual report. The organization's governing documents and conflict of interest policy are not ordinarily made available to the public, but, if requested, will be provided at management's discretion. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 FOREIGN CURRENCY EXCHANGE Gain/(Loss): $271,184 Root Capital Mexico AC Ma Adelina Flores No 20 Colo Chiapa MX Prgm Support MX N/A N/A Root Capital true Asociacion Accder Av Camino Real 348 Terra El P Lima PE Prgm Support PE N/A N/A Root Capital true Root Capital Guatemala AC 22 Avenida 3-87 Zona 3 Edific Quetzaltenago GT Prgm Support GT N/A N/A Root Capital true false false false false false false false false false false false false false false false true false false false Root Capital AC - Mexico p 89891 FMV Asociacion ACCDER p 1344713 FMV Root Capital AC - Guatemala p 25631 FMV Foreign Controlled Subsidiaries The Root Capital Form 990 presents the consolidated information of its foreign controlled subsidiaries (as disclosed in Schedule R, Part II) thereby reporting the organizations worldwide activities consistently with its audited financial statements.