2019-10-25T09:20:32-05:00 2018-12-31 420714325 RSM US LLP 100 INTERNATIONAL DRIVE SUITE 1400 BALTIMORE MD 21202 990 2018-01-01 542058754 THE NATURAL CAPITAL INVESTMENT FUND INC C/O THE CONSERVATION FUND NATU 3048762815 1098 TURNER ROAD SHEPHERDSTOWN WV 25443 MARTEN R JENKINS JR PRESIDENT 3048762815 2019-10-21 1 JULIA FLANNERY CPA P00928918 4102469301 66.98.98.130 2019-10-21 10:39:17 ED P 4EE6A31F760B3C5EA0809148B0E883CC4242B14C 4EE6A31F760B3C5EA0809148B0E883CC4242B14C 2018 2020-01-14 16:20:31Z X MARTEN R JENKINS JR 1098 TURNER ROAD SHEPHERDSTOWN WV 25443 4957008 0 X WWW.NCIFUND.ORG X 2001 MD THE NATURAL CAPITAL INVESTMENT FUND ("NCIFUND") IS A CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION THAT PROVIDES FINANCIAL AND TECHNICAL ASSISTANCE TO SUPPORT DEVELOPMENT OF NATURAL RESOURCE-BASED BUSINESSES. 9 5 0 16 0 0 1687771 2520810 1680930 2335511 36502 100687 0 0 3405203 4957008 0 0 0 0 0 0 0 0 57439 2468102 4326075 2468102 4326075 937101 630933 36082234 46291093 20433475 30011401 15648759 16279692 X FOCUSING ON ECONOMICALLY DISTRESSED AREAS, NCIFUND CATALYZES ENVIRONMENTALLY SUSTAINABLE DEVELOPMENT BY PROVIDING AFFORDABLE, FLEXIBLE CAPITAL AND ADVISORY SERVICES TO SMALL AND EMERGING BUSINESSES THAT CREATE EMPLOYMENT. THROUGH ITS BUSINESS SUPPORT, FIELD BUILDING AND POLICY ACTIVITIES, NCIFUND EMPLOYS A HOLISTIC APPROACH TO ADDRESS THE COMPLEX, INTERWOVEN ISSUES INHERENT IN POVERTY ALLEVIATION, RURAL DEVELOPMENT AND ENVIRONMENTAL SUSTAINABILITY. AS A PRACTITIONER OF SUSTAINABLE DEVELOPMENT, NCIFUND DEMONSTRATES METHODS THAT HELP BUSINESSES, INDIVIDUALS AND COMMUNITIES ACHIEVE TANGIBLE CHANGES THAT RESULT IN ENHANCED PERSONAL OR COMMUNITY ASSETS. 0 0 3230557 2194738 LENDING PROGRAM: NCIFUND IS A SPECIALIZED, NICHE LENDER FOR START-UP AND EARLY STAGE SMALL BUSINESSES IN UNDERSERVED MARKETS. THE PRIMARY GOAL OF ITS LOAN PROGRAMS IS TO CREATE OR RETAIN FULL-TIME PRIVATE SECTOR JOBS. NCIFUND PROVIDES MICROLOANS IN AMOUNTS FROM $1,000 TO $50,000 AND BUSINESS LOANS SIZED FROM $50,000 TO $750,000. NCIFUND IS APPROVED AS A UNITED STATES DEPARTMENT OF AGRICULTURE (USDA) BUSINESS & INDUSTRY (B & I) GUARANTEED LENDER, GIVING IT THE ABILITY TO PARTICIPATE IN TRANSACTIONS UP TO $2.5 MILLION.NCIFUND'S BUSINESS CLIENTS ARE PREDOMINANTLY LOCATED IN ECONOMICALLY DISTRESSED RURAL COMMUNITIES AND ARE UNABLE TO ACCESS CAPITAL FROM TRADITIONAL SOURCES. TARGET SECTORS INCLUDE, BUT ARE NOT LIMITED TO: ENVIRONMENTAL SERVICES, LOCAL FOOD SYSTEM INFRASTRUCTURE, HERITAGE AND RECREATION-BASED TOURISM, VALUE-ADDED AGRICULTURE, RENEWABLE ENERGY, ENERGY EFFICIENCY, RECYCLING, WATER CONSERVATION AND TREATMENT, SECONDARY FOREST PRODUCTS, NATURAL MEDICINES, GREEN BUILDING, CRITICAL COMMUNITY SERVICES, AND TECHNOLOGIES THAT SUPPORT THE SUSTAINABLE USE OF NATURAL RESOURCES.NCIFUND PURSUES TRIPLE BOTTOM LINE (TBL) SMALL BUSINESS DEVELOPMENT AS A MEANS TO RESPONSIBLY CREATE WEALTH IN DISTRESSED COMMUNITIES. SMALL AND MID-SIZED BUSINESSES CAN DEMONSTRATE THE VIABILITY OF UTILIZING NATURAL ASSETS RESPONSIBLY, WHILE OFFERING OPPORTUNITIES IN LOW INCOME COMMUNITIES TO BUILD WEALTH THROUGH THE CREATION OF LIVING WAGE JOBS WITH BENEFITS AND SKILL BUILDING OPPORTUNITIES. WHILE NCIFUND SPECIALIZES IN FINANCING TBL COMPANIES, IT RECOGNIZES THAT ECONOMICALLY AND ENVIRONMENTALLY HEALTHY COMMUNITIES REQUIRE A DIVERSE RANGE OF BUSINESSES AND SERVICES, SO NCIFUND EXPANDED ITS WORK TO INCLUDE CRITICAL COMMUNITY INFRASTRUCTURE. 830004 140773 STRATEGIC INITIATIVES PROGRAM: NCIFUND'S STRATEGIC INITIATIVES USE TARGETED FUNDING AND PARTNERSHIPS WITH SMALL BUSINESS-RELATED OR SECTOR-SPECIFIC COMMUNITY PARTNERS TO DEVOTE ADDED RESOURCES TO PARTICULAR SECTORS OR CONSTITUENCIES WITHIN NCIFUND'S STATED MISSION. THESE INITIATIVES FREQUENTLY COMBINE NCIFUND'S LOAN CAPITAL WITH A) TARGETED BUSINESS ADVISORY SERVICES AND/OR B) GRANT FUNDING FROM PARTNERS IN ORDER TO ENSURE BORROWER SUCCESS AND "BUY DOWN" THE COST OF CRITICAL INFRASTRUCTURE OR SERVICES FOR THE CONSTITUENCIES NCIFUND SEEKS TO SERVE. 4060561 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 59 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 9 5 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 WV NC SC GA MD VA TN OH KY X X MARTEN R JENKINS JR 3048762815 1098 TURNER ROAD SHEPHERDSTOWN WV 25443 X GAT CAPERTON CHAIRMAN 3.00 X X 0 0 0 RUTH JOSECK VICE CHAIR 3.00 X X 0 0 0 JERRELL J DEAVER JR DIRECTOR 3.00 X 0 0 0 RANDALL RANDY GORE DIRECTOR 1.00 X 0 0 0 ARCHIE HART DIRECTOR 1.00 X 0 0 0 WM A TONY HAYES DIRECTOR AND TREASURER 3.00 X X 0 0 0 JENA THOMPSON MEREDITH DIRECTOR 1.00 36.50 X 0 160383 45039 ERIK MEYERS DIRECTOR 1.00 36.50 X 0 231895 31263 MIKKI SAGER DIRECTOR 3.00 34.50 X 0 196080 30071 EVAN SMITH DIRECTOR 1.00 36.50 X 0 234649 34145 MARTEN R JENKINS JR PRESIDENT 37.50 0.00 X 0 153908 44664 PAUL HURT SECRETARY 4.00 33.50 X 0 229430 48790 JOSEPH HANKINS ASSISTANT TREASURER 1.00 36.50 X 0 215890 30941 SCOTT TSUKUDA ASSISTANT TREASURER 3.00 34.50 X 0 115136 22192 CAROLYN KOLDOS ASSISTANT SECRETARY 1.00 36.50 X 0 51764 5969 RICHARD LARSON SENIOR VICE PRESIDENT 37.50 0.00 X 0 150481 33908 ANNA TEFFT SENIOR VICE PRESIDENT 37.50 0.00 X 0 129762 23532 ROSALIND BLACK SENIOR VICE PRESIDENT 37.50 0.00 X 0 85660 8495 HANNAH VARGASON ASSISTANT TREASURER 3.00 34.50 X 0 61711 17345 ERIKA MCGILLEY NCIFUND LENDER 37.50 0.00 X 0 103757 40482 0 2120506 416836 0 0 1 0 THE CONSERVATION FUND A NONPROFIT CORP 1655 N FORT MYER DR SUITE 1300 ARLINGTON VA 22209 MANAGEMENT SERVICES 1742727 1 1812434 708376 2520810 INTEREST INC FROM N/R 522299 1982469 1982469 FEE INCOME ON LOANS 541900 171630 171630 PROJECT INCOME 541900 147281 147281 OTHER FEES 541900 34131 34131 2335511 100687 100687 4957008 2335511 0 100687 1742727 1543559 148131 51037 11561 11561 7350 7350 391622 377478 14144 7814 6536 1049 229 37823 24039 12943 841 66940 55991 8989 1960 25951 21706 3485 760 69446 58086 9326 2034 19793 16557 2658 578 669459 669459 PROVISION FOR LOAN LOSS 1167348 1167348 LOAN ORIGINATION EXPENS 61900 61900 LOAN WORKOUT EXPENSE - 27826 27826 DEBT ACQUISITION COSTS 11276 11276 7239 7239 4326075 4060561 208075 57439 X 2316214 9234297 10170056 258554 315140 18435 217842 5654 26361356 33266187 209592 0 36082234 46291093 103794 157684 13855847 2834064 20263657 6473834 6755996 20433475 30011401 X 9951540 9990768 2201725 0 3495494 6288924 15648759 16279692 36082234 46291093 630933 0 X 0 1 X 1 1 1 X X 1 THE CONSERVATION FUND 521388917 7 1 4060561 0 1 4060561 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 NOTES RECEIVABLE - FINANCING FOR NATURAL RESOURCE-BASED COMPANIES 33166192 C SC FUEL DEPOT 99995 C 33266187 FUNDS HELD FOR OTHERS 13269 LINE OF CREDIT, RELATED PARTY 5000000 ACCOUNTS PAYABLE, RELATED PARTY 1742727 6755996 X 4957008 0 4957008 0 4957008 4326075 0 4326075 0 4326075 PART X, LINE 2: NCIFUND IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, NCIFUND QUALIFIES FOR CHARITABLE CONTRIBUTION DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. NCIFUND HAD NO NET UNRELATED BUSINESS INCOME TAX FOR THE YEAR ENDED DECEMBER 31, 2018. MANAGEMENT EVALUATED NCIFUND'S TAX POSITIONS AND CONCLUDED THAT NCIFUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. NCIFUND FILES INCOME TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. NCIFUND IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR THE YEARS BEFORE 2015. PART VIII: NCIFUND MAKES SMALL BUSINESS LOANS TO CUSTOMERS. THESE LOANS ARE MADE IN WEST VIRGINIA, NORTH CAROLINA AND THE APPALACHIAN AND RURAL AREAS OF MARYLAND, OHIO, KENTUCKY, TENNESSEE, VIRGINIA, SOUTH CAROLINA AND GEORGIA. THE TOTAL AMOUNT OF THE NOTES RECEIVABLE, NET OF ALLOWANCE FOR POSSIBLE LOSSES AT DECEMBER 31, 2018 IS $33,166,192. ALL LOANS REQUIRE BOARD APPROVAL. THE NOTES HAVE VARIOUS INTEREST RATES AND MATURITY DATES, WITH THE LATEST NOTE MATURING IN 2040. 0 0 0 0 0 0 0 0 0 JENA THOMPSON MEREDITH DIRECTOR 0 122323 0 26500 0 11560 0 14450 0 30589 0 205422 0 0 ERIK MEYERS DIRECTOR 0 191320 0 37400 0 3175 0 19255 0 12008 0 263158 0 0 MIKKI SAGER DIRECTOR 0 166405 0 26500 0 3175 0 16850 0 13221 0 226151 0 0 EVAN SMITH DIRECTOR 0 189774 0 44500 0 375 0 19260 0 14885 0 268794 0 0 MARTEN R JENKINS JR PRESIDENT 0 129133 0 24200 0 575 0 14100 0 30564 0 198572 0 0 PAUL HURT SECRETARY 0 181455 0 44800 0 3175 0 19240 0 29550 0 278220 0 0 JOSEPH HANKINS ASSISTANT TREASURER 0 180306 0 34000 0 1584 0 18460 0 12481 0 246831 0 0 RICHARD LARSON SENIOR VICE PRESIDENT 0 142831 0 6000 0 1650 0 15050 0 18858 0 184389 0 0 ANNA TEFFT SENIOR VICE PRESIDENT 0 113845 0 15400 0 517 0 11550 0 11982 0 153294 0 0 PART I, LINE 3 THE COMPENSATION OF THE ORGANIZATION'S CEO IS DETERMINED BY A RELATED ORGANIZATION, THE CONSERVATION FUND. TCF USES A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION A, LINE 3 A RELATED ORGANIZATION, THE CONSERVATION FUND, A NONPROFIT CORPORATION ("TCF"), PROVIDES MANAGEMENT SERVICES TO THE NCIFUND. THOSE SERVICES INCLUDE TECHNICAL, MANAGEMENT, AND ADMINISTRATIVE SUPPORT BY PROVIDING EMPLOYEES FOR FULL-TIME SUPPORT. OTHER SUPPORT PROVIDED BY TCF TO NCIFUND MAY INCLUDE LEGAL, ACCOUNTING AND FINANCIAL, FUNDRAISING AND DEVELOPMENT, MARKETING AND COMMUNICATION, AND OTHER ADMINISTRATIVE SERVICES AS NECESSARY FOR THE NCIFUND TO COMPLETE ITS CHARITABLE MISSION. COMPENSATION PAID BY THE MANAGEMENT COMPANY TO OFFICERS, DIRECTORS, AND KEY EMPLOYEES OF THE NCIFUND IS INCLUDED IN FORM 990, PART VII COLUMNS E AND F. FORM 990, PART VI, SECTION B, LINE 11B THE INDEPENDENT AUDITING FIRM ENGAGED TO CONDUCT AN ANNUAL AUDIT OF THE FINANCIAL STATEMENTS OF NCIFUND IS ENGAGED TO ASSIST IN THE PREPARATION OF THE FORM 990. THE NCIFUND PRESIDENT AND SVP, DIRECTOR OF FINANCE ALONG WITH THE CONTROLLER OF THE CONSERVATION FUND, NCIFUND'S PARENT ORGANIZATION, DIRECTLY PARTICIPATE IN THE PREPARATION OF THE FORM, DRAFTING RESPONSES TO QUESTIONS AND REVIEWING THE FORM 990 IN DRAFT FORM. A DRAFT COPY OF THE FORM 990 IS SENT TO THE MEMBERS OF THE NCIFUND BOARD OF DIRECTORS, REQUESTING COMMENTS AND QUESTIONS FROM THEM. SUBSEQUENT TO THE REVIEW AND REVISION PROCESS OF THE NCIFUND BOARD AND MANAGEMENT, THE FORM 990 IS FINALIZED AND FILED WITH THE IRS. COPIES OF THE FORM ARE THEN MADE AVAILABLE FOR PUBLIC INSPECTION. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS PROVIDED TO EACH DIRECTOR, OFFICER, OR MEMBER OF A COMMITTEE AT A REGULAR BOARD MEETING EACH YEAR. EACH INTERESTED PERSON SHALL ANNUALLY SIGN A STATEMENT THAT AFFIRMS THAT SUCH PERSON (A) HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, (B) HAS READ AND UNDERSTANDS THE POLICY, (C) HAS AGREED TO COMPLY WITH THE POLICY, AND (D) UNDERSTANDS THAT THE CORPORATION IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES THAT ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. IF THERE IS A DISCLOSURE OF A FINANCIAL INTEREST, THE INTERESTED PERSON SHALL LEAVE THE BOARD OR COMMITTEE MEETING WHILE THE FINANCIAL INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING DIRECTORS OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. FORM 990, PART VI, SECTION B, LINE 15 NCIFUND DOES NOT HAVE ANY DIRECT EMPLOYEES. EMPLOYEES OF THE CONSERVATION FUND PERFORM THE PROGRAM AND MANAGEMENT DUTIES. THE CONSERVATION FUND USES AN OUTSIDE THIRD PARTY COMPENSATION STUDY TO EVALUATE COMPENSATION LEVELS FOR ITS PRESIDENT AND KEY OFFICIALS. THE CONSERVATION FUND'S GOVERNANCE COMMITTEE APPROVES COMPENSATION AMOUNTS FOR THE PRESIDENT AND KEY OFFICIALS. FORM 990, PART VI, SECTION C, LINE 19 NCIFUND MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART VII, SECTION A: NCIFUND IS A SUPPORTING ORGANIZATION TO THE CONSERVATION FUND. ALL DIRECTORS AND OFFICERS WHO ARE COMPENSATED ARE FULL-TIME EMPLOYEES, 37.5 HOURS PER WEEK, OF THE CONSERVATION FUND. HOURS NOT SPENT WORKING BY OFFICERS ON THE AFFAIRS OF NCIFUND ARE SPENT WORKING FOR THE CONSERVATION FUND OR ANOTHER RELATED ORGANIZATION, SUSTAINABLE CONSERVATION, INC. COMPENSATION LISTED IN COLUMN E OF PART VII, SECTION A AND SCHEDULE J PART II IS PAID BY THE CONSERVATION FUND TO THESE INDIVIDUALS. NCIFUND PAYS THE CONSERVATION FUND AN ANNUAL MANAGEMENT FEE WHICH INCLUDES PAYMENT FOR THE USE OF THESE EMPLOYEES. MR. JENKINS DEVOTES HIS TIME TO THE AFFAIRS OF NCIFUND. FORM 990, PART X, LINE 29: SOME DONOR CONTRIBUTIONS TO BE USED FOR LOAN CAPITAL ARE RECORDED BY NCIFUND IN ITS LOAN CAPITAL REVOLVING FUND AS PERPETUAL IN NATURE. THE FUNDS ARE USED TO PROVIDE FINANCING CAPITAL TO QUALIFYING BUSINESSES. THE LOAN CAPITAL REVOLVING FUND IS REPLENISHED AS THE LOAN PRINCIPAL IS REPAID. IN THE EVENT THAT A NOTE RECEIVABLE FUNDED BY CONTRIBUTIONS THAT ARE PERPETUAL IN NATURE, BECOMES UNCOLLECTIBLE, NCIFUND WRITES OFF THE UNCOLLECTIBLE AMOUNT (LOSS) AGAINST THE NET ASSETS. THE CONSERVATION FUND 1655 N FORT MYER DR SUITE 1300 ARLINGTON VA 22209 521388917 CONSERVATION MD 501(C)(3) LINE 7 N/A 0 SUSTAINABLE CONSERVATION INC 1655 N FORT MYER DR SUITE 1300 ARLINGTON VA 22209 621586798 CONSERVATION REAL ESTATE OWNERSHIP MD 501(C)(3) LINE 12A, I THE CONSERVATION FUND 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 0 0 0