2017-11-14T10:00:20-06:00 2016-12-31 133842744 MBAF CPAS LLC 440 PARK AVE SOUTH NEW YORK NY 10016 990 2016-01-01 274620963 SOCIAL FINANCE INC SOCI 6179399900 10 MILK STREET NO 1010 BOSTON MA 02108 TRACY PALANDJIAN PRESIDENT & CEO 6179399900 2017-11-13 1 MARC TAUB CPA P00236664 2125761400 72.46.249.68 2017-11-13 21:11:18 US P 8B3A379C7FBA3A44279E6426DA85F69B423A6E25 35642B4FCEF3CDCF5C8D82F4199BD71F34BC315D 2016 2018-03-14 21:41:22Z TRACY PALANDJIAN 10 MILK STREET NO 1010 BOSTON MA 02108 4871173 0 X WWW.SOCIALFINANCE.ORG X 2011 MA SOCIAL FINANCE'S MISSION IS TO MOBILIZE CAPITAL TO DRIVE SOCIAL PROGRESS. WE BELIEVE THAT EVERYONE DESERVES THE OPPORTUNITY TO THRIVE, AND THAT IMPACT INVESTMENTS CAN CATALYZE THESE OPPORTUNITIES. CORE TO OUR WORK IS THE DEVELOPMENT OF PAY FOR SUCCESS (PFS) FINANCING (ALSO REFERRED TO AS SOCIAL IMPACT BONDS). AN INNOVATIVE FUNDING MODEL, PFS HELPS TO MEASURABLY IMPROVE THE LIVES OF PEOPLE IN NEED BY DRIVING GOVERNMENT RESOURCES TOWARD BETTER, MORE EFFECTIVE PROGRAMS. 9 8 44 10 0 0 2120948 3697220 2070596 1156310 8137 17643 0 0 4199681 4871173 381607 27359 0 0 2910416 3819688 0 0 145996 1160530 1178601 4452553 5025648 -252872 -154475 7008307 6783382 750327 679877 6257980 6103505 X SOCIAL FINANCE'S MISSION IS TO MOBILIZE CAPITAL TO DRIVE SOCIAL PROGRESS. WE BELIEVE THAT EVERYONE DESERVES THE OPPORTUNITY TO THRIVE, AND THAT IMPACT INVESTMENTS CAN CATALYZE THESE OPPORTUNITIES. CORE TO OUR WORK IS THE DEVELOPMENT OF PAY FOR SUCCESS (PFS) FINANCING (ALSO REFERRED TO AS SOCIAL IMPACT BONDS). AN INNOVATIVE FUNDING MODEL, PFS HELPS TO MEASURABLY IMPROVE THE LIVES OF PEOPLE IN NEED BY DRIVING GOVERNMENT RESOURCES TOWARD BETTER, MORE EFFECTIVE PROGRAMS. 0 0 3490715 27359 1156310 ADVISORY SERVICES AND SOCIAL INVESTMENT - THE ADVISORY SERVICES TEAM PARTNERS WITH GOVERNMENTS AND FOUNDATIONS TO ASSESS HIGH PERFORMING PROGRAMS THAT COULD BE SCALED WITH OUTCOMES-BASED FINANCING, IN ORDER TO ACHIEVE BETTER RESULTS FOR COMMUNITIES IN NEED. IN 2016, SOCIAL FINANCE COMPLETED ADVISORY PROJECTS FOR VARIOUS CLIENTS, INCLUDING 100 RESILIENT CITIES, THE AARP FOUNDATION, THE CALIFORNIA ENDOWMENT, COLLEGE FOR AMERICA, GREEN AND HEALTHY HOMES INITIATIVE, THE COUNTY AND CITY OF SACRAMENTO, AND THE STATE OF OHIO. THE SOCIAL INVESTMENT TEAM DEVELOPS PFS PROJECTS THAT IMPROVE SOCIAL OUTCOMES AND GENERATE FINANCIAL RETURNS; PUTS CAPITAL TO WORK IN SERVICE OF SOCIETY BY MOBILIZING FUNDING TO SUPPORT PFS PROJECTS; AND ENGAGES IN ACTIVE PERFORMANCE MANAGEMENT TO ENSURE PROJECTS STAY ON TRACK AND DRIVE POSITIVE RESULTS FOR COMMUNITIES IN NEED. IN 2016, SOCIAL FINANCE LAUNCHED A $30 MILLION PFS PROJECT IN SOUTH CAROLINA TO SUPPORT THE HEALTHY PREGNANCIES OF 3,200 FIRST-TIME, LOW-INCOME MOTHERS AND ENCOURAGE POSITIVE CHILD DEVELOPMENT. SOCIAL FINANCE ALSO LAUNCHED AN $11.2 MILLION PFS PROJECT IN CONNECTICUT TO PROMOTE FAMILY STABILITY AND REDUCE PARENTAL SUBSTANCE USE FOR 500 FAMILIES INVOLVED WITH THE STATE'S CHILD WELFARE SYSTEM. IN ADDITION, SOCIAL FINANCE PROVIDED ACTIVE PERFORMANCE MANAGEMENT SERVICES FOR A $13.5 MILLION PFS PROJECT IN NEW YORK STATE TO IMPROVE EMPLOYMENT AND REDUCE RECIDIVISM AMONG 2,000 FORMERLY INCARCERATED MEN. 503551 MARKET EDUCATION - THROUGH RESEARCH, ADVOCACY, AND PUBLICATIONS, SOCIAL FINANCE SUPPORTS THE DEVELOPMENT OF THE PFS MARKET AND THE BROADER IMPACT INVESTMENT MOVEMENT. IN 2016, SOCIAL FINANCE PUBLISHED A WHITE PAPER IN COLLABORATION WITH SOCIAL FINANCE U.K. AND SOCIAL FINANCE ISRAEL, ENTITLED "SOCIAL IMPACT BONDS: THE EARLY YEARS," THAT REFLECTS ON THE IMPACT AND REACH THAT SOCIAL IMPACT BONDS (SIBS) HAVE HAD ACROSS THE GLOBE AS WELL AS THE SHARED LESSONS FROM THE SOCIAL FINANCE GLOBAL NETWORK. ALONGSIDE THE PAPER, SOCIAL FINANCE LAUNCHED THE MOST COMPREHENSIVE ONLINE DATABASE OF SIBS WORLDWIDE. WITH THE W.K. KELLOGG FOUNDATION, SOCIAL FINANCE PUBLISHED, "NEW TOOLS TO AMPLIFY IMPACT: A PAY FOR SUCCESS GUIDE TO BUILDING NONPROFIT CAPACITY," DESCRIBING SOCIAL FINANCE'S WORK WITH FOUR OF THE FOUNDATION'S GRANTEES--INCLUDING HOW THEY USE DATA TO MEASURE AND ARTICULATE SOCIAL VALUE--AND PROVIDING A ROADMAP FOR ORGANIZATIONS WHO HOPE TO DO THE SAME. OVER THE COURSE OF THE YEAR, SOCIAL FINANCE ALSO PARTICIPATED IN KEY CONFERENCES, INCLUDING EVENTS HOSTED BY THE U.S. DEPARTMENT OF EDUCATION, MISSION INVESTORS EXCHANGE, AND LIVING CITIES. SOCIAL FINANCE'S EFFORT TO CONNECT THE SOCIAL SECTOR WITH THE CAPITAL MARKETS FOR THE BENEFIT OF PEOPLE IN NEED WAS COVERED BY LEADING MEDIA OUTLETS, SUCH AS THE WASHINGTON POST, GOVERNING, AND FORBES. 3994266 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 13 0 1 44 1 0 0 0 0 0 0 0 0 0 0 X 9 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MA NY X X MAZIE MCLEOD 6179399900 10 MILK STREET 1010 BOSTON MA 02108 BRACEBRIDGE H YOUNG JR CHAIRPERSON & DIRECTOR 2.00 X X 0 0 0 TRACY PALANDJIAN PRESIDENT & CEO 40.00 2.00 X X 195732 0 24358 SONAL SHAH VICE CHAIR & DIRECTOR THRU DEC 2016 2.00 X X 0 0 0 SIR RONALD MOURAD COHEN DIRECTOR 2.00 X 0 0 0 ALEX FRIEDMAN DIRECTOR THROUGH DEC 2016 2.00 X 0 0 0 NANCY ZIMMERMAN CLERK & DIRECTOR 2.00 X 0 0 0 SANDRA URIE DIRECTOR 2.00 X 0 0 0 LAURENE SPERLING DIRECTOR 2.00 X 0 0 0 PAMELA DIPPEL CHONEY TREASURER & DIRECTOR 2.00 X X 0 0 0 ED SHAPIRO VICE CHAIR & DIRECTOR 2.00 X X 0 0 0 IAN SIMMONS DIRECTOR 2.00 X 0 0 0 LARA METCALF MANAGING DIRECTOR 40.00 2.00 X 187740 0 5184 NAVJEET K BAL VP & GENERAL COUNSEL 40.00 X 162905 0 23122 JEFFREY SHUMWAY VICE PRESIDENT OF ADVISORY 40.00 X 176559 0 23762 CAITLIN REIMERS BRUMME PROGRAM DIRECTOR 40.00 X 127046 0 3588 NIRAV SHAH PROGRAM DIRECTOR 40.00 X 135698 0 7110 JOANNA VANDEN PROGRAM DIRECTOR 40.00 X 114057 0 9822 CASEY LITTLEFIELD PROGRAM DIRECTOR 40.00 2.00 X 123988 0 10117 RASHMI KHARE DIRECTOR 40.00 X 115023 0 9880 1338748 0 116943 11 0 1 0 JONES DAY 1755 EMBARCADERO ROAD PALO ALTO CA 94303 LEGAL 184225 1 79085 3618135 3697220 PROGRAM RELATED FEES 900099 1156310 1156310 1156310 17643 17643 4871173 1156310 0 17643 27359 27359 831138 715485 63682 51971 2469085 2017961 430957 20167 57737 42897 11833 3007 210456 158185 41333 10938 251272 194256 43260 13756 5453 3550 1886 17 240640 154743 83824 2073 118076 66560 21061 30455 5192 4382 745 65 66188 43953 17369 4866 103049 58835 43326 888 297994 229143 65253 3598 225362 201085 20915 3362 44869 43678 943 248 22068 10250 11644 174 49710 21944 27355 411 5025648 3994266 885386 145996 133327 49870 6150466 6003565 429253 528789 33323 71062 101966 48971 34554 52995 227384 77101 7008307 6783382 722202 541400 71667 28125 66810 750327 679877 X 6036320 5740395 221660 363110 6257980 6103505 7008307 6783382 -154475 0 X X 0 1 X 1 0 X 2677145 2236380 6636093 2120948 3697220 17367786 2677145 2236380 6636093 2120948 3697220 17367786 11180146 6187640 4896 6440 8916 8137 17643 46032 17413818 3548806 0.35530 0.35400 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 27197 7247 19950 74769 41724 33045 52995 DEFERRED RENT 66810 66810 X 5270914 438326 438326 4832588 38585 38585 4871173 9350518 438326 3886544 4324870 5025648 0 5025648 PART X, LINE 2: SFI IS RECOGNIZED AS AN ORGANIZATION EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, WHEREBY ONLY UNRELATED BUSINESS INCOME, AS DEFINED BY SECTION 512(A)(1) OF THE CODE, IS SUBJECT TO FEDERAL INCOME TAX. DC WYMAN MANAGER, NYS CEO MANAGER AND CT MANAGER WERE ESTABLISHED AS NONPROFIT CORPORATIONS. THE ORGANIZATION FOLLOWS THE ACCOUNTING STANDARD FOR UNCERTAINTY IN INCOME TAXES. THE STANDARD PRESCRIBES A MINIMUM RECOGNITION THRESHOLD AND MEASUREMENT METHODOLOGY THAT A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. IT ALSO PROVIDES GUIDANCE FOR DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES, DISCLOSURE, AND TRANSITION. SHOULD THERE BE INTEREST ON UNDERPAYMENT OF INCOME TAX, THE ORGANIZATION WOULD CLASSIFY IT AS INTEREST EXPENSE. THE ORGANIZATION WOULD CLASSIFY PENALTIES IN CONNECTION WITH UNDERPAYMENT OF INCOME TAX AS OTHER EXPENSE. THE ORGANIZATION IS SUBJECT TO AUDIT BY TAX AUTHORITIES. THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR THE POSITIONS TAKEN ON ITS TAX RETURNS. MANAGEMENT BELIEVES THAT ITS NONPROFIT STATUS WOULD BE SUSTAINED UPON EXAMINATION. WITH FEW EXCEPTIONS, THE ORGANIZATION IS NO LONGER SUBJECT TO FEDERAL, STATE, OR LOCAL INCOME TAX EXAMINATIONS FOR YEARS BEFORE 2013. PART XI, LINE 4B - OTHER ADJUSTMENTS: MGMT FEES REV FROM SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 LLC 50,000. IN-KIND PROFESSIONAL SERVICES FROM SOCIAL FINANCE CT FAMILY STABILITY LLC -160,988. OTHER INCOME FROM SOCIAL FINANCE CT MANAGER -427. MGMT FEES REV FROM SOCIAL FINANCE CT STABILITY 2016 LLC 150,000. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXP REPORTED BY SOC FIN NY STATE WORKFORCE RE-ENTRY 2013 LLC- 2015 FORM 1065 2,811,583. MGMT FEES REV FROM SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 LLC 1,274,961. ELIMINATING ENTRY -200,000. 1 CENTRAL CALIFORNIA ASTHMA COLLABORATIVE 4991 E MCKINLEY AVE STE 109 FRESNO CA 93727 453599201 501(C)(3) 27359 SOCIAL IMPACT BOND DEMONSTRATION PROJECT 1 PART I, LINE 2: GRANTEES ARE REQUIRED TO SUBMIT ACTUAL EXPENSES ON A MONTHLY BASIS AND TO SUBMIT A FINAL WRITTEN REPORT THAT DESCRIBES IN DETAIL THE USE OF THE GRANTED FUNDS, COMPLIANCE WITH THE TERMS OF THE GRANT, AND THE PROGRESS MADE BY THE GRANTEE TOWARD ACHIEVING THE PURPOSES FOR WHICH THE GRANT WAS MADE DURING THE PERIOD COVERED BY THE REPORT. X X X 0 0 0 0 0 0 0 0 0 TRACY PALANDJIAN PRESIDENT & CEO 182732 0 13000 0 0 0 5482 0 18876 0 220090 0 0 0 LARA METCALF MANAGING DIRECTOR 174740 0 13000 0 0 0 5184 0 0 0 192924 0 0 0 NAVJEET K BAL VP & GENERAL COUNSEL 157905 0 5000 0 0 0 4246 0 18876 0 186027 0 0 0 JEFFREY SHUMWAY VICE PRESIDENT OF ADVISORY 162559 0 14000 0 0 0 4886 0 18876 0 200321 0 0 0 SOCIAL FINANCE CT FAMILY STABILITY 2016 LLC BUSINESS RELATIONSHIP 150000 PROVIDE MANAGEMENT SERVICES TO SOCIAL FINANCE CT FAMILY STABILITY 2016 LLC 0 SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 LLC BUSINESS RELATIONSHIP 50000 PROVIDE MANAGEMENT SERVICES TO SOCIAL FINANCE NYS WORKFORCE REENTRY 2013 LLC 0 FORM 990, PART VI, SECTION B, LINE 11B THE FORM IS REVIEWED BY SENIOR MANAGEMENT THEN PROVIDED TO THE BOARD BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C AN ANNUAL CONFLICT OF INTEREST POLICY STATEMENT IS DISTRIBUTED TO OFFICERS, DIRECTORS, AND MEMBERS OF ANY COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS FOR COMPLETION. ANY CONFLICT WILL BE DISCUSSED WITH THE INTERESTED PERSON AND THE GOVERNING BOARD BEFORE A DECISION IS MADE AS TO THE EXISTENCE OF A CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 ALL OFFICERS AND DIRECTORS COMPENSATION WILL BE APPROVED BY A DISINTERESTED BOARD OF DIRECTORS AFTER RESEARCH IS PERFORMED REGARDING SALARIES PAID FOR COMPARABLE WORK IN SIMILARLY SITUATED ORGANIZATIONS AND OTHER APPROPRIATE SALARY SURVEY INFORMATION IS CONSIDERED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED SINCE THE PRIOR YEAR. SOCIAL FINANCE CT FAMILY STABILITY 2016 MANAGER INC 10 MILK STREET 1010 BOSTON MA 02108 364829457 PROMOTE FAMILY STABILITY AND REDUCE OUT OF HOME PLACEMENTS FOR FAMILIES DE 501(C)(3) LINE 7 SOCIAL FINANCE INC 1 SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 LLC 10 MILK STREET 1010 BOSTON MA 02108 463851533 INCREASE EMPLOYMENT OF THE FORMERLY INCARCERATED DE SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 MANAGER INC 0 0 SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 MANAGER INC 10 MILK STREET 1010 BOSTON MA 02108 371742609 INCREASE EMPLOYMENT OF THE FORMERLY INCARCERATED DE SOCIAL FINANCE INC C 1 SOCIAL FINANCE DC TEEN PREGNANCY PREVENTION & EDUCATION ATTAINMENT 2014 MGR 10 MILK STREET 1010 BOSTON MA 02108 472268563 PREVENT TEEN PREGNANCY AND INCREASE EDUCATIONAL ATTAINMENT DE SOCIAL FINANCE INC C 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 SOCIAL FINANCE CT FAMILY STABILITY 2016 LLC L 150000 FMV SOCIAL FINANCE NY STATE WORKFORCE RE-ENTRY 2013 LLC L 50000 FMV