2017-11-14T12:26:08-07:00 2016-12-31 990 2016-01-01 133836581 SHARED INTEREST INC SHAR 2123378547 121 West 27th Street Suite 805 New York NY 100016207 Donna Katzin Executive Director 6464420182 2017-09-29 24.105.140.146 2016 2017-02-10 21:41:12Z Donna Katzin 121 West 27th Street Suite 805 New York NY 10001 1988757 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 5 11 0 0 1204127 1264716 256874 280027 66893 98900 0 0 1527894 1643643 450104 233564 0 0 441831 420373 61400 52500 170746 537466 1379926 1490801 2086363 37093 -442720 19324881 20448555 17031301 18378907 2293580 2069648 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 1855285 233564 279802 During the 2016 tax year, the organization had outstanding as many as 25 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. Twenty of this number supported enterprises in South Africa, our principal focus of activity; the others were in Mozambique and Swaziland, two countries bordering on South Africa. The aggregate exposure involved in the guarantees totaled approximately $11,985,575 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 did unlock 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 working through its local partner, the Thembani International Guarantee Fund. 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 South Africa other than traditional banks, such as quasi-governmental funding agencies and union pension funds, 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, derived from loans and donations by American individuals and institutions whose willingness to risk capital for a charitable purpose has worked significantly to mitigate the economic marginalization of a class people once dismissed as utterly unbankable. Cumulatively, since the inception of Shared Interest, more than 2,000,000 low-income persons have benefited from the Organization's guarantees. 0 0 0 1855285 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 93 0 1 5 1 0 0 0 0 0 1 1 0 0 0 1 1 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 0 X X 0 0 0 Ann Burroughs Vice Chair & Director 1 0 X X 0 0 0 Jehiel Oliver Treasurer & Director 1 0 X X 0 0 0 Matthew Patsky Secretary & Director 3 0 X X 0 0 0 Adrienne Bailey Director 2 0 X 0 0 0 Edward J Bergman Director 0.5 0 X 0 0 0 Iva E Carruthers Director 0.5 0 X 0 0 0 Jennifer Davis Director 3.50 0 X 0 0 0 Alonzo Fulgham Director 1 0 X 0 0 0 Alcinda Honwana Director 0.5 0 X 0 0 0 Brian Keegan Director 0.5 0 X 0 0 0 Sarah Leshner Director 2 0 X 0 0 0 Linnie McLean Director 3.50 0 X 0 0 0 Mandla Nkomo Director 1 0 X 0 0 0 Joshua Posner Director 0.5 0 X 0 0 0 Amelie Ratliff Director 2 0 X 0 0 0 Stieneke Samuel Director 4 0 X 0 0 0 Richard Tolliver Director 2 0 X 0 0 0 David Wildman Director 1 0 X 0 0 0 Aniket Shah Director 1 0 X 0 0 0 Ron Shiffman Director 2 0 X 0 0 0 Phindile Spies Director 50.50 0 X 0 0 0 Donna Katzin Executive Director & Officer 50.50 0 X X 63000 0 21994 63000 0 21994 0 0 0 0 0 0 0 228307 0 0 1036409 109708 1264716 Interest on Pgm Investments Returned to Investors 523000 279802 279802 0 0 Book Sales 511130 225 225 0 0 0 0 0 0 280027 90548 0 0 90548 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 251025 0 242673 0 8352 0 8352 0 0 8352 102441 228307 102441 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1643643 280027 0 98900 0 0 0 0 233564 233564 0 0 84994 68506 7851 8637 0 0 0 0 277998 224070 25680 28248 0 0 0 0 27278 21986 2520 2772 30103 24263 2781 3059 0 0 0 0 782 782 0 0 12500 6250 6250 0 0 0 0 0 52500 52500 2994 2994 0 0 37755 22285 1200 14270 38397 12708 0 25689 24576 19162 2196 3218 5902 4757 545 600 0 0 0 0 54164 43657 5003 5504 14440 10688 0 3752 0 0 0 0 10286 10286 0 0 279802 279802 0 0 0 0 0 0 3173 2558 293 322 2241 1806 207 228 Defaulted Loan Expense 780954 780954 0 0 Investment & Bank Facility Fees 62399 57130 5269 0 Printing & Publications 36937 15436 0 21501 Membership & Business Registration Fees 11967 11112 475 380 657 529 62 66 2086363 1855285 60332 170746 X 0 0 0 0 316 212 551661 535455 204206 199884 0 0 0 0 0 0 0 0 0 0 50837 20100 62597 59284 6486 3313 1297948 1265455 0 0 16984015 18198596 0 0 229412 225540 19324881 20448555 88769 595330 0 0 0 0 0 0 0 0 0 0 0 0 16874913 17714500 67619 69077 17031301 18378907 X 2129024 1951514 164556 118134 0 0 2293580 2069648 19324881 20448555 -442720 218788 0 0 0 0 X 0 1 X 1 0 X 1535141 1119455 1204535 1204127 1264716 6327974 0 0 0 0 0 0 0 0 0 0 0 0 1535141 1119455 1204535 1204127 1264716 6327974 1080595 5247379 55828 32574 42005 68459 90548 289414 0 0 0 0 0 0 0 0 0 0 0 0 6617388 1263897 0.79297 0.80059 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 7000 7000 0 0 55597 52284 3313 0 0 0 0 3313 Investments Held as Collateral 18198596 F 18198596 0 Accrued Interest Payable to Note Holders 69077 69077 X 1643014 218788 60385 0 0 279173 1363841 279802 0 279802 1643643 1866946 60385 0 0 0 60385 1806561 279802 0 279802 2086363 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 233564 Sub-Saharan Africa 0 0 Conducting Board Meetings 9886 Sub-Saharan Africa 0 0 Program Services Provision of guarantees supporting loans extended to businesses owned by previously-disadvantaged borrowers and reimbursement to lenders on loans which went into default. 780954 0 0 1024404 Sub-Saharan Africa General Support 233564 wire transfer 0 USD cash value 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 related 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 attend 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 331 Brickell Avenue Miami FL 33131 Organization of fundraising dinner and solicitation of attendees. 1 287248 52500 234748 287248 52500 234748 NY PA Fundraising Dinner 287248 225248 62000 0 0 0 62000 0 0 Field Trip 43500 3059 40441 0 0 0 0 0 40441 0 330748 228307 102441 0 0 0 62000 0 40441 102441 0 Schedule G, Part I, Line 2b Relative to custody of funds, the fundraising firm had custody of some of the funds, but not control over 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 made 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 offset or retention of monies the fundraiser received in fulfillment of pledges. As to the amount of the professional fee reported here, the fundraiser received no reimbursement for incidental expenses. The Organization did, however, reimburse the fundraising firm in the amount of $9,100 in connection with monies it advanced early in the process to a sub-contractor which invoiced for artwork and design services. X 2 109708 FMV (mean) 0 0 1 0 Schedule M, Part I, Line 9 The organization received gifts in 2016 from two individuals in the form of 2 separate blocks of publicly-traded equity securities. The total amount disclosed was determined by reference to the mean 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, with the exception of one who is also CEO of a related organization, 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 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.