2017-05-10T11:11:40-05:00 2016-06-30 Grant Thornton LLP 1000 WILSON BLVD SUITE 1400 ARLINGTON VA 22209 990 2015-07-01 262108051 Grassroots Business Partners Inc % JAIME RAMIREZ GRAS 2025186865 1710 Rhode Island Ave NW Suite 1000 Washington DC 20036 JAIME RAMIREZ COO 2025186865 2017-05-10 true Mary Torretta P00847851 7038477500 2015 2021-01-29 14:40:06Z GRASSROOTS BUSINESS FUND (GBF) Harold Rosen 1710 Rhode Island Avenue NW Washington DC 20036 1762452 false X www.gbfund.org X 2007 DE To grow viable businesses that generate sustainable earnings or savings for people with low incomes in Africa, Asia, and Latin America. 7 6 14 6 0 0 1017136 4845 1472028 1474174 2524 4054 -62619 279379 2429069 1762452 103367 217883 0 0 2191476 1852836 0 0 345004 1897285 1302777 4192128 3373496 -1763059 -1611044 6227610 3141263 342818 318899 5884792 2822364 X GBP does business as GBF. GBF strives to create a world where economic opportunity reaches everyone. Our mission is to grow viable businesses that generate sustainable earnings or savings for people with low incomes in Africa, Asia, and Latin America. false false 1638857 1766084 HIGH IMPACT INVESTING - SEE SCHEDULE O. 319658 217883 CAPACITY BUILDING PROGRAM - SEE SCHEDULE O. 215589 EDUCATION/INFORMATION SHARING - SEE SCHEDULE O. 2174104 true false false false false false false false false false true false false false false true false true false true true true false false false false false true false true false false false false false false false false false false false false true true true true false false true X 12 0 true 14 true false true PE IN KE false false false false false false false false X 7 6 true false false false false false true true false false false true true true true true true true true false DC X JAIME RAMIREZ 2025186865 1710 RHODE ISLAND AVE NW SUITE 100 Washington DC 20036 Harold Rosen Chief Executive Officer 40.0 0.0 X X 224236 0 11058 Andrew Adelson Chairman of the Board 1.0 0.0 X 0 0 0 Stephen Brenninkmeijer Director 1.0 0.0 X 0 0 0 Mary Houghton Director 1.0 0.0 X 0 0 0 Mwaghazi Mwachofi Director 1.0 0.0 X 0 0 0 Holly Wise Director 1.0 0.0 X 0 0 0 Guillermo Ferreyros Director 1.0 0.0 X 0 0 0 Jaime Ramirez Chief Investment Officer 40.0 0.0 X 172414 0 8721 Rebekah Plotkin VP, Admin and Finance 40.0 0.0 X 93464 0 4708 Lilian Mramba Regional Director 40.0 0.0 X 86589 0 11606 Natalia Barantseva Regional Director 40.0 0.0 X 119899 0 3365 696602 0 39458 3 false true false Grant Thornton LLP 1000 Wilson Blvd Suite 1400 ARLINGTON VA 22209 ACCOUNTING SERVICES 164255 1 4845 4845 INTEREST-PROGRAM RELATED 900099 6787 6787 FEES FROM GBI 900099 1467387 1467387 1474174 4054 4054 0 0 0 0 0 0 0 0 0 FOREIGN REALIZED LOSS 900099 -12531 -12531 OTHER INCOME 900099 291910 291910 279379 1762452 1766084 -8477 20000 20000 0 197883 197883 0 354612 176475 36149 141988 0 1277886 947225 253221 77440 49739 35638 10504 3597 110947 52363 53039 5545 59652 45851 9127 4674 0 136546 102373 32373 1800 370703 83607 287096 0 0 0 180948 141604 21301 18043 0 21392 14519 4180 2693 54397 36920 10629 6848 0 177024 120149 34590 22285 180220 112691 32464 35065 0 23269 6649 8720 7900 0 0 20916 14196 4087 2633 41841 28398 8176 5267 REPRESENTATION EXPENSES 20743 10855 5479 4409 FEES AND PERMITS 15204 10319 2971 1914 STAFF TRAINING 5324 3614 1040 670 BANK SERVICE CHARGES 11442 553 10889 42808 12222 28353 2233 3373496 2174104 854388 345004 1105278 1020367 2349450 1399245 991644 496489 119947 10607 0 0 0 0 50556 76305 0 0 0 0 200649 150598 65983 50051 0 0 0 0 1451384 0 0 0 93368 88199 6227610 3141263 342818 318899 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 342818 318899 X 1915187 676318 3969605 2146046 0 0 5884792 2822364 6227610 3141263 -1611044 -1451384 X X false true X true false X 10230192 1027167 999387 1017136 4845 13278727 0 0 10230192 1027167 999387 1017136 4845 13278727 4708082 8570645 6171 1526 1696 2524 4054 15971 0 41553 81257 57533 -62619 291910 409634 13704332 7335209 0.62540 0.63280 X 0 16354 12921 3433 0 184295 137677 46618 50051 0 0 X Liability For Uncertain Tax Position (ASC 740) SCHEDULE D, PART X, LINE 2 GBP is exempt from federal income tax under Internal Revenue Code (the 'Code') Section 501(c)(3) and 170(b)(1)(A)(vi), though it is subject to tax on income unrelated to its exempt purpose, unless that income is otherwise exclude by the Code. GBP has two entities which are disregarded for U.S. income tax purposes, GBF GP I, LLC and GBP GP II, LLC. GBP has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated 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. The tax years ending June 30, 2015, 2014, 2013 and 2012 are still open to audit for both federal and state purposes. GBP has determined that there are no material uncertain tax positions that require recognition or disclosure in the consolidated financial statements. GBP 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 consolidated financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the 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 positions, without regard to the likelihood that the tax position may be challenged. true South America 1 7 Program Services Prog. Advisory Serv. 752250 East Asia and the Pacific Program Services Prog. Advisory Serv. 28596 Sub-Saharan Africa 1 9 Program Services Prog. Advisory Serv. 485538 South Asia 1 9 Program Services Prog. Advisory Serv. 512765 Central America and the Caribbean 1 Program Services Prog. Advisory Serv. 4089 South Asia Investments 60358 Sub-Saharan Africa Investments 31006 South America Investments 68970 South Asia Grantmaking 25358 Sub-Saharan Africa Grantmaking 38883 Europe (Including Iceland and Greenland) Grantmaking 124220 East Asia and the Pacific Grantmaking 9422 4 25 4 25 2141455 2141455 South Asia Technical Assistance 5734 Sub-Saharan Africa Technical Assistance 34641 Europe (Including Iceland and Greenland) Technical Assistance 124220 East Asia and the Pacific Technical Assistance 6860 South Asia Technical Assistance 19624 5 true false true false true false Procedure For Monitoring Use Of Grant Funds Outside U.S. Schedule F, Part I, Line 2 Use of Funds reports are obtained quarterly and annually a copy of the audited financials of the recipient organization are reviewed. GBF works closely with its high impact businesses abroad to create customized technical assistance programs based on the needs of the business. In addition to requiring each grantee to submit quarterly reports on use of funds, financial status, and achievements as a result of the grant, GBF meets regularly with the business to foster a working relationship which allows for constant updates and open communication about the grant use and future partnerships. Accounting Method Used Schedule F, Part I, Line 3, Column F The expenditures, per region, are presented on the accrual basis of accounting. true Novica Foundation 3250 Ocean Park Blvd Santa Monica CA 90405 263393242 501(c)(3) 20000 Technical Assistance 1 0 Procedure For Monitoring Use Of Grant Funds Inside U.S. Schedule I, Part I, Line 2 Use of Funds reports are obtained quarterly and annually a copy of the audited financials of the recipient organization are reviewed. GBF works closely with capacity building partners to create customized plans for its high impact businesses abroad. In addition to requiring quarterly reports on use of funds and achievements of the organization, GBF meets regularly with the organization to foster a working relationship which allows for constant updates and open communication about the grant use. X X X false false true false true false false false false Harold Rosen Chief Executive Officer 199673 0 24563 0 0 0 11058 0 0 0 235294 0 0 0 Jaime Ramirez Chief Investment Officer 153042 0 19372 0 0 0 8721 0 0 0 181135 0 0 0 EQUITY BASED DEFERRED COMPENSATION SCHEDULE J, PART I, LINE 4C and LINE 5B IN EFFORT TO ATTRACT AND RETAIN HIGHLY-QUALIFIED STAFF AND INCENTIVIZE HIGH PERFORMANCE OF THE FUND, THE ORGANIZATION CREATED A STAFF INCENTIVE PLAN WHEREIN CERTAIN MEMBERS OF THE MANAGEMENT TEAM CAN RECEIVE A PERCENTAGE OF THE ORGANIZATION'S ALLOTTED DISTRIBUTION PAID FROM A RELATED PARTNERSHIP. THE PLAN IS STRUCTURED WITH A VESTING SCHEDULE AND THE PAYOUT IS CONTINGENT ON THE SUCCESS OF THE RELATED PARTNERSHIP'S FUTURE EARNINGS. THE AMOUNT PAYABLE TO THE MANAGEMENT TEAM IS NOT CURRENTLY FIXED AND DETERMINABLE, AND IS NOT REPORTED ON SCHEDULE J AS COMPENSATION TO THE RECIPIENT. ORGANIZATION STRUCTURE GRASSROOTS BUSINESS FUND (GBF), A BRAND OF ENTITIES, DELIVERS A DISTINCTIVE BLEND OF INVESTMENT CAPITAL AND BUSINESS ADVISORY SERVICES THROUGH TWO MAIN VEHICLES WORKING TOGETHER: A PRIVATE INVESTMENT FUND AND A NON-PROFIT ORGANIZATION. THROUGH THE FUND, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I), GBF MAKES EQUITY, MEZZANINE EQUITY, MEZZANINE DEBT, AND STRAIGHT DEBT INVESTMENTS. THESE CUSTOMIZED INVESTMENT STRUCTURES ENSURE THAT GBF'S INVESTMENT PERFORMANCE ALIGNS WITH THE BUSINESSES' PERFORMANCE. THE FUND DELIVERS A FORM OF CAPITAL SUITABLE FOR LONG-TERM INVESTMENT IN BUSINESSES SERVICING LOW INCOME COMMUNITIES. IN TANDEM, THE NON-PROFIT GRASSROOTS BUSINESS PARTNERS, INC. (GBP), PROVIDES BUSINESS ADVISORY SERVICES TO CLIENTS IN THE FUND. GBF'S STAFF, EXPERT CONSULTANTS, AND LOCAL SERVICE PROVIDERS FOCUS ON ENHANCING FINANCIAL AND STRATEGIC PLANNING, CORPORATE GOVERNANCE, HUMAN RESOURCE MANAGEMENT, MARKETING, SUPPLY CHAIN MANAGEMENT, AND MANAGEMENT INFORMATION SYSTEMS (MIS). ADDITIONALLY GBP, MANAGES THE INVESTMENT FUND, AND LOOKS FOR WAYS TO FURTHER THE FIELD FOR IMPACT INVESTING THROUGH KNOWLEDGE SHARING AND PLATFORM DEVELOPMENT. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A GBF works with high impact businesses (HIBS) that are typically small or midsized by international standards, but economically engage large numbers of the poor. GBP manages an investment fund, Grassroots Business Investors Fund I, LP (GBI-I). GBI-I makes equity, quasi-equity, and debt investments which allow it to share the businesses' risks and returns, while providing a form of capital suitable for long-term, wealth creating businesses. GBI-I target investment size is currently between $750,000 and $2,500,000 and has an average investment horizon of 5-7 years. The current portfolio companies (17 companies) have directly created wealth for over 38,000 farmers; 51,000 artisans; and cost savings for 2 million people, and an additional 8 million family members. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4B GBF's capacity building programs are a combination of business advisory services (BAS) funded through grants and hands-on management support from GBF staff and its partners. These capacity building programs include improvements to governance, general management, reporting, management information systems (MIS), and business/financial planning. These programs are delivered by experienced external consultants, GBF staff, and through our partnerships with other local businesses. GBF's BAS falls into six main categories: financial management, operations, corporate governance and human capacity, strategy, legal and regulatory, and environmental and social. Over the past seven years GBF has disbursed over $4.97 million in BAS to more then 79 companies who have supported more than 2 million people. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4C GBF is heavily involved in building the field around impact investing by working closely with partner organizations, piloting new initiatives, and contributing lessons learned to a broad audience. As part of partnership building, GBF is a member of numerous working groups including those around impact assessment, the development of impact funds, and careers in impact investing. As the organization grows a continued effort towards external dissemination of information on the successes and lessons learned relating to impact investing will be critical for our advancing of the field. TOTAL NUMBER OF INDIVIDUALS EMPLOYED BY THE ORGANIZATION Form 990, Part V, Line 2a DURING FISCAL YEAR 2015, GBF EMPLOYED GLOBALLY AS EITHER EMPLOYEES OR NEAR FULL TIME CONSULTANTS 29 INDIVIDUALS ACROSS ALL 5 OF ITS REGIONAL OPERATIONS. Relationship between Board Members Form 990, Part VI, Line 2 THE FOLLOWING DIRECTORS OF THE ORGANIZATION ARE ALSO INVESTORS IN A RELATED PARTNERSHIP, GRASSROOTS BUSINESS INVESTORS I, LP: - ANDREW ADELSON - HAROLD ROSEN - STEPHEN BRENNINKMEIJER - MWAGHAZI MWACHOFI EACH OF THE ABOVE DIRECTORS CONTRIBUTED CAPITAL TO THE PARTNERSHIP AND RECEIVED A CORRESPONDING INVESTMENT INTEREST IN THE PARTNERSHIP. NONE OF THE INVESTORS SERVE ON THE BOARD NOR DO THEY RECEIVE COMPENSATION FROM GRASSROOTS BUSINESS INVESTORS I, LP. Decisions Subject To Approval Form 990, Part VI, Line 7b In addition to GBP's board, there is a Fund Advisory Committee (FAC) which governs the management of GBI-I's funds, the FAC is comprised of some large investors in the fund. Additionally, there is an investment committee which votes on which HIBs will receive funding. This committee must contain a member of GBP's Governing Board who has veto rights. Contemporaneous Documentation- Committees Form 990, Part VI, Line 8b No committees can act on behalf of the governing board. Form 990 Review Process Form 990, Part VI, Line 11b On an annual basis, the audited financial statements of the Grassroots Business Partners, Inc. and completed Form 990 are submitted to the Board of Directors for review and approval, prior to filing the Form 990 with the internal revenue service. At the request of the Board of Directors, a representative of the independent accounting firm may attend the Board of Directors' meeting to answer any questions related to the financial condition/position of the Organization. Conflict Of Interest Policy Monitoring & Enforcement Form 990, Part VI, Line 12c GBF currently has a Conflict of Interest Policy which covers all employees and the Board of Directors. GBF's conflict of interest policy was reviewed and approved by GBF's Board of Directors. GBF requires each board member to sign a conflict of interest disclosure form on an annual basis. The form requires that any current or potential conflicts of interest be disclosed. Should a potential new conflict be disclosed, it is reviewed at either the board or senior management level to determine whether it is an actual conflict. If it is deemed a conflict of interest, the employee or board member is excluded from any decision-making meetings and decisions relating to the transaction. Process For Determining Compensation Form 990, Part VI, Line 15A & 15B The Board of Directors reviews and approves the general structure of the organization's compensation as well as the specific compensation of the management team. The Board governs compensation and bonus administration. The Board decides the general level of compensation for all Staff. Staff is compensated based on industry averages and then compensation is approved by Management. Management's compensation is evaluated annually and approved by the Board. The most recent review of management compensation took place in June 2015, utilizing performance as well and comparable data to determine the final level of compensation for managers. All full time employees are eligible for a bonus equal to a maximum percentage of their gross annual base salary as determined in their written employment contract. The board reviews the overall allocation of bonuses and in detail determines and approves the bonuses for Management. How Documents Are Made Available To The Public Form 990, Part VI, Line 19 GBP made its governing documents, conflict of interest and financial statements available upon request. Additionally, financial statements are published in the annual report. Organization's Audit committee Form 990, Part XII, Line 2c The board established an audit committee which now undertakes the selection of the independent accountants and oversees the audit process. GBF GP I LLC 1209 Orange Street Wilmington DE 19801 453041117 holding comp DE -4116 0 GBP GBF GP II LLC 2711 Centreville Road Wilmington DE 19808 300847843 holding comp DE 0 0 GBP GBI Master Fund I LP 1710 Rhode Island Ave NW Washington DC 20009 352426727 Investment DE NA Investment 3865 0 false false 0.00836 Grassroots Business Investors Fund I LP 190 Elgin Avenue Grand Cayman CJ 453187922 Investment CJ GBF GP I LLC Investment -308 0 false true 1.00000 Grassroots Business Investors Fund II LP 190 Elgin Avenue Grand Cayman CJ Investment CJ GBF GP II LLC Investment 0 0 false true 1.00000 GBP Investment Advisors Private Ltd 3rd Floor 6 Basant Lok Vasant Vihar New Delhi IN 110057 Investment IN GBF GP I C Corp 69645 120906 1.00000 true GBP Inc Surcusal Peru Calle Paseo La Republica 6010 Lima PE 101 - Miraflo Investment PE GBF GP I C Corp 301641 84994 1.00000 true false false false false false false false false false false false false false true false false true true false GBI-I and GBI Master Fund N 568813 FMV GBF Investment Advisors Private Limited N 74426 CASH GBP Inc Surcusal Peru N 92202 Cash GBI-I Q 291910 Cash GBP Investment Advisors Private Ltd R 460501 Cash GBP Inc Surcusal Peru R 492629 Cash