2018-10-18T15:27:03-05:00 2017-12-31 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2017-01-01 043478123 Root Capital Inc % JARED CHASE ROOT 6176615792 130 Bishop Allen Drive 2nd Floor Cambridge MA 021393309 BRYAN WOLINER CFO & TREASURER 6176615792 2018-10-18 true Scott Thompsett P00741490 2125990100 209.220.136.124 04586620182915000004 2018-10-18 P E17E9E8E8EC8B19A45D5165D09B6AE6601980AF9 7D14034AF515942D2ABE7F7E27EA16D2649DB046 2017 2018-06-14 16:35:46Z William F Foote 130 Bishop Allen Drive 2nd Flo Cambridge MA 021393309 22106065 false X www.RootCapital.org X 1999 MA A NON-PROFIT ORGANIZATION THAT HELPS INCREASE INCOMES AND STABILITY FOR RURAL FARMERS DISCONNECTED FROM THE FORMAL ECONOMY. 14 11 66 11 0 0 8283243 11510919 10007540 9478238 108672 112810 1134697 970491 19534152 22072458 35001 32732 0 0 9752884 8143768 0 0 976740 19983850 12757743 29771735 20934243 -10237583 1138215 106238675 105322211 91263576 89072080 14975099 16250131 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 13517818 0 9478238 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 organizations 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. 2500967 0 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. 1579608 32732 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. 17598393 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 204 0 true 66 true false true KE CS SG PE MX false false false false false false false false X 14 11 true 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 X JARED CHASE 6172992424 130 BISHOP ALLEN DRIVE 2ND FLOOR Cambridge MA 021393309 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 Ryan Israel Board Member (THRU 3/17) 1.0 0.0 X 0 0 0 Paul Leander-Engstrom Board Member (THRU 2/17) 1.0 0.0 X 0 0 0 Elizabeth Luckett Board Member (THRU 8/17) 1.0 0.0 X 0 0 0 Funke Oyewole Board Member 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 (AS OF 10/17) 1.0 0.0 X 0 0 0 GRANT GUND BOARD MEMBER (AS OF 10/17) 1.0 0.0 X 0 0 0 JAN-MAARTAN MULDER BOARD MEMBER (AS OF 5/17) 1.0 0.0 X 0 0 0 William F Foote CEO & President 40.0 0.0 X 250257 0 23064 Jared Chase CFO & COO 40.0 0.0 X 182692 0 11956 Peter Bernard chief operating officer 40.0 0.0 X 144692 0 19195 Annie Brennan Clerk 40.0 0.0 X 13205 0 348 Catherine Gill SVP of Inv. Relations & Ops 40.0 0.0 X 168574 0 20163 Brian Matthew Onie Milder EVP of Strategy, Adv, & Innov 40.0 0.0 X 168574 0 7613 Darcy Salinger Chief Credit Officer 40.0 0.0 X 152474 0 6969 Lubna Maria Elia DIRECTOR OF HUMAN RESOURCES 40.0 0.0 X 123588 0 7923 NANCY EVERETT gen. counsel&chief talent off. 40.0 0.0 X 126981 0 9952 BRYAN WOLINER vp of finance and it 40.0 0.0 X 116134 0 8946 BENJAMIN SCHMERLER dir. of corporate partnerships 40.0 0.0 X 109627 0 4342 1556798 0 120471 12 false true false Stitching Progresso Foundation KEIZERSGRACHT 452 AMSTERDAM 0 NL 1016 GD AGRONOMIC COORD 247656 Grant Thornton 75 State Street 13 BOSTON MA 02109 Audit and Tax 139140 2 804462 10706457 11510919 LOAN INTEREST 522298 6346426 6346426 LOAN FEES 522298 1105997 1105997 LOAN GUARANTEES/RECOVERIES 522298 2025815 2025815 9478238 112649 112649 0 0 0 0 0 33768 33607 161 161 161 0 0 0 0 0 0 0 0 0 CONTRACTUAL REVENUE REIMBURSEMENTS 900099 514404 514404 LOAN MANAGEMENT SERVICES 900099 456087 456087 970491 22072458 10448729 112810 0 0 32732 32732 0 1356205 830655 465202 60348 0 5479695 4124076 832780 522839 142409 103252 27022 12135 601194 437439 113205 50550 564265 409113 107069 48083 0 139487 120345 13334 5808 181747 150410 21976 9361 0 0 0 1834602 1454627 266555 113420 15639 12691 2510 438 177051 145193 27951 3907 398755 210327 165288 23140 0 987581 737735 172740 77106 843472 739846 64911 38715 0 200318 199211 700 407 1974978 1974978 0 92068 61890 26582 3596 88503 57056 27869 3578 ALLOWANCE FOR LOAN LOSS 5733915 5733915 OTHER DIRECT COSTS 46170 34478 10215 1477 MEMBERSHIP & PUBLICATIONS 43457 28424 13201 1832 20934243 17598393 2359110 976740 23629481 38211338 3062473 2951425 2317589 2693118 995320 2078737 0 0 0 0 287692 191795 0 0 593936 498188 1480134 676067 504845 804067 205948 210885 0 0 73238811 56335906 0 0 1402580 1346752 106238675 105322211 2009008 1813190 0 0 70000 109187 0 0 549983 4470218 2205000 175000 0 0 86336600 82162749 92985 341736 91263576 89072080 X 10598615 10654322 4376484 5595809 0 0 14975099 16250131 106238675 105322211 X 1138215 1476 135341 X false true X true true true X 16302985 7221264 6528783 8283243 11510919 49847194 0 0 16302985 7221264 6528783 8283243 11510919 49847194 6766890 43080304 228383 152280 94009 108868 112649 696189 0 37635 37635 50581018 54887471 0.85171 0.80056 X false true X 82399 26763 55636 124015 78431 45584 1273720 570873 702847 804067 LOANS RECEIVABLE 56335906 F 56335906 0 DEFERRED RENT LIABILITY 99229 OTHER LIABILITIES 242507 341736 X 14698609 1476 198226 -7573551 -7373849 22072458 22072458 13423576 198226 198226 13225350 7708893 7708893 20934243 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. SCHEDULE D, PART X, LINE 2 ROOT CAPITAL IS A TAX-EXEMPT ORGANIZATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS GENERALLY EXEMPT FROM INCOME TAXES PURSUANT TO SECTION 501(A). ACCDER, ROOT CAPITAL MEXICO A.C., AND ROOT CAPITAL GUATEMALA A.C. ARE ORGANIZED AND OPERATED UNDER THE REGULATIONS OF THEIR RESPECTIVE COUNTRIES, PERU, MEXICO AND GUATEMALA. ROOT CAPITAL MEXICO A.C. IS A REGISTERED CHARITABLE ORGANIZATION IN MEXICO. ROOT CAPITAL GUATEMALA A.C. IS A REGISTERED CHARITABLE ORGANIZATION IN GUATEMALA. THE INCOME TAX CONSEQUENCES, IF ANY, ARE REFLECTED IN THE FINANCIAL STATEMENTS AND DO NOT HAVE A MATERIAL EFFECT, INDIVIDUALLY OR IN THE AGGREGATE, UPON ROOT CAPITAL'S FINANCIAL STATEMENTS. ROOT CAPITAL BELIEVES IT HAS TAKEN NO UNCERTAIN TAX POSITIONS. SCHEDULE D, PART XI, LINE 2D OTHER REVENUES NOT REPORTED ON FORM 990 PROVISION FOR LOAN LOSS: ($5,733,915) INTEREST EXPENSE: ($1,974,977) FOREIGN CURRENCY EXCHANGE GAIN (LOSS): $135,341 ------------------------------------------------------ TOTAL ($7,573,551) SCHEDULE D, PART XII, LINE 4B OTHER EXPENSES NOT REPORTED ON FORM 990 PROVISION FOR LOAN LOSS: $5,733,915 INTEREST EXPENSE: $1,974,977 ROUNDING: $1 ------------------------------------------------------ TOTAL $7,708,893 true Sub-Saharan Africa 2 28 Program Services Loan Disbursements 34957855 South America 1 16 Program Services Loan Disbursements 33077239 Central America and the Caribbean 1 17 Program Services loan disbursements 39083113 North America 1 8 Program Services loan disbursements 3907388 East Asia and the Pacific Program Services loan disbursements 8755638 Sub-Saharan Africa Program Services lending/advisory 2206256 South America Program Services lending/advisory 1658667 Central America and the Caribbean Program Services lending/advisory 1430061 North America Program Services lending/advisory 347226 Sub-Saharan Africa Grantmaking 32732 5 69 5 69 125456175 125456175 Sub-Saharan Africa Agricultural Education 32732 wire FMV 0 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. X X X X X false false false false false false false false false William F Foote CEO & President 250257 0 0 0 0 0 10010 0 13054 0 273321 0 0 0 Jared Chase CFO & COO 182692 0 0 0 0 0 5086 0 6870 0 194648 0 0 0 Catherine Gill SVP of Inv. Relations & Ops 168574 0 0 0 0 0 6743 0 13420 0 188737 0 0 0 Brian Matthew Onie Milder EVP of Strategy, Adv, & Innov 168574 0 0 0 0 0 6743 0 870 0 176187 0 0 0 Darcy Salinger Chief Credit Officer 152474 0 0 0 0 0 6099 0 870 0 159443 0 0 0 Peter Bernard chief operating officer 144692 0 0 0 0 0 0 0 19195 0 163887 0 0 0 Rick Peyser BOARD MEMBER INVESTMENT X 25000 25000 false false true Jack Taylor BOARD MEMBER INVESTMENT X 100000 100000 false false true Franz Colloredo-Mansfield BOARD MEMBER INVESTMENT X 50000 50000 false false true 175000 LOANS TO ROOT CAPITAL, INC. SCHEDULE L, PART II Three 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. ADVISE 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. ROOT CAPITAL'S ADVISORY SERVICES PROGRAM HAS SUCCESSFULLY TRAINED 811 PRODUCER ORGANIZATIONS REPRESENTING THOUSANDS OF PEOPLE. 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. BUSINESS RELATIONSHIPS FORM 990, PART VI, LINE 2 BOARD MEMBERS ELIZABETH LUCKETT AND JEREMY MINDICH HAVE A BUSINESS RELATIONSHIP. 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 LOSS: $135,341 Root Capital MEXICO Ac Ma Adelina Flores No 20 Colonia C Chiapa San Cristobal de MX PRGM SUPPORT MX N/A N/A Root Capital true Asociacion Accder Av Camino Real 348 Terre El Pilar 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 89437 FMV Asociacion ACCDER p 1214124 FMV Root Capital AC - Guatemala p 80335 FMV