2016-11-15T20:18:12-06:00 2015-12-31 GRANT THORNTON LLP 757 THIRD AVE 3RD FLOOR NEW YORK NY 100172013 990 2015-01-01 134052259 Media Development Investment Fund Inc % MARI BUDESA MEDI 2128071304 37 West 20th Street Suite 801 New York NY 10011 MARI BUDESA CFO/ASSISt Treasurer 2128071304 2016-11-15 true Scott Thompsett P00741490 2125990100 2015 2017-02-10 21:41:12Z Harlan Mandel CEO 37 West 20th Street New York NY 10011 9595297 false X www.mdif.org X 1995 NY Media Development Investment Fund invests in independent media around in independent media around the world providing the news, information and debate that people need to build free, thriving societies. 8 7 4 0 0 0 2008481 8129313 1399190 1172188 362181 192753 30822 101043 3800674 9595297 80523 504212 0 0 3343971 2737950 0 0 0 2482948 2086355 5907442 5328517 -2106768 4266780 40824773 38881057 19146165 17867317 21678608 21013740 X MEDIA DEVELOPMENT INVESTMENT FUND, INC. (MDIF) WAS ESTABLISHED TO PLACE PROGRAM RELATED INVESTMENTS (PRIS), PRIMARILY LOW-INTEREST LOANS, TO INDEPENDENT NEWSPAPERS, MAGAZINES, NEWS AGENCIES, RADIO AND TELEVISION STATIONS, AND INTERNET-BASED MEDIA OUTLETS IN DIFFERENT COUNTRIES OF THE WORLD. MDIF OFFERS PRIS TO WORTHY INDEPENDENT MEDIA ORGANIZATIONS DEVOTED AND PERSISTENT IN PROMOTING AND EXERCISING THE PRINCIPLES OF FREE, INDEPENDENT AND RESPONSIBLE PRESS. PRIS ARE OFFERED TO SUPPORT PROJECTS THAT BROADEN AND STRENGTHEN OPERATIONS FOR WHICH THESE MEDIA ORGANIZATIONS CANNOT OBTAIN FUNDING FROM OTHER SOURCES ON ECONOMICALLY FEASIBLE TERMS. MANY OF THESE MEDIA ORGANIZATIONS ARE STARVED FOR CAPITAL BECAUSE THEY WORK IN ENVIRONMENTS CHARACTERIZED BY POORLY DEVELOPED BANKING SYSTEMS, ECONOMIES IN TRANSITION, LACK OF FRESH INVESTING CAPITAL, GOVERNMENTS THAT ARE VERY OFTEN SECRETLY OR OPENLY HOSTILE TO THE IDEA OF FREE AND INDEPENDENT PRESS, AND WHERE LENDING INSTITUTIONS CHARGE EXORBITANT, A false false 4155622 504212 0 MDIF provides loan financing by way of "program related investments" (PRIs), that allow non-profits to make investments in firms whose work will further their charitable mission. MDIF maintains a segregated pool of funds from which it makes loans and other PRIs. Loan repayments are recycled through the pool and loaned out repeatedly. With every PRI, MDIF provides customized training and technical assistance to its BENEFICIARIES, from the first stage of developing a business plan through to the final discharge of the loan. In addition, MDIF trains its borrowers and other media organizations in the use and transfer of Internet-based technology and its impact on the future development of media business. In determining whether to make a loan or other program-related investment, the Fund faces both political and legal risk. The Fund makes loans and other program-related investments in countries where political stability may be of concern. This type of risk is assessed before the Fund starts operations in a certain country. The legal risk may arise as a result of making loans and other program-related investments in countries with differing legal systems than those of the United States of America. Those systems are sometimes characterized by uncertainty and lack of independent legal institutions, including judiciary. The Fund's model loan contract was drafted by U.S. attorneys and the Fund has all loans reviewed by attorneys in the country of each borrower. 4155622 true true false false false false false false false true true false true false false true false true false true true true false false false false false false false true false false false false false false false false false false false false true true true false false false true 31 0 true 4 true false true UK RS EZ SZ PL false false false false false false false false X 8 7 false false false false false false false true true false false true true true true true true true true false NY X MARI BUDESA 2128071852 37 WEST 20TH STREET NEW YORK NY 10011 Harlan Mandel CEO 40.0 0.0 X X 238089 0 71611 Ying-Yuen Chan Director 2.0 0.0 X 0 0 0 Sheila Coronel vice chair 2.0 0.0 X 0 0 0 Alexej fulmek director 2.0 0.0 X 0 0 0 Aryeh Neier Director (thru 04/2015) 2.0 X 0 0 0 Alexander Papachristou Treasurer 2.0 0.0 X X 0 0 0 John Ryle Director 2.0 0.0 X 0 0 0 BERNARD POULET CHAIRMAN 2.0 0.0 X X 0 0 0 mohamed nanabhay Director (thru 09/2015) 2.0 0.0 X 0 0 0 Judith brandsma Director 2.0 0.0 X 0 0 0 Mari Budesa CFO/Assistant Treasurer 40.0 0.0 X 177558 0 40289 ELENA POPOVIC SECRETARY AND GENERAL COUNSEL 40.0 0.0 X 154176 0 0 ANNA KRYNSKA CHIEF INVESTMENT OFFICER 40.0 0.0 X 118227 0 0 rashid Malik SENIOR financial analyst 40.0 0.0 X 112493 0 24188 PATRICE SCHNEIDER CHIEF STRATEGY OFFICER 40.0 0.0 X 145632 0 0 Ross Settles Sr advisor for digital media 40.0 0.0 X 136500 0 0 Jaroslav Gora Senior Investment Advisor 40.0 0.0 X 113611 0 0 1196286 0 136088 8 true true true 0 8129313 8129313 PROGRAM RELATED INVESTMENTS 900099 1172188 1172188 1172188 170191 170191 0 0 91440 91440 0 91440 91440 22562 0 22562 22562 22562 0 0 0 MISCELLANEOUS 900099 9603 9603 9603 9595297 1172188 293796 0 0 504212 504212 0 681724 524011 157713 0 1675338 1287759 387579 57465 44171 13294 158510 121840 36670 164913 126761 38152 0 154037 116552 37485 88776 58074 30702 0 0 42130 28789 13341 198741 163285 35456 0 58372 40169 18203 166557 108956 57601 0 393410 297802 95608 353441 279778 73663 0 0 330754 244516 86238 0 113863 78088 35775 60239 41099 19140 BANK FEES 25258 17943 7315 FOREIGN WITHHOLDING TAXES 19914 13612 6302 OTHER EXPENSES 80863 58205 22658 5328517 4155622 1172895 0 933946 1385266 118063 94225 2000000 6610146 0 0 0 0 0 0 0 0 0 0 1407430 869238 1513049 1049575 381395 463474 8030958 5975709 0 0 27952981 23482999 0 0 0 0 40824773 38881057 1002714 580290 0 0 0 0 0 0 0 0 0 0 0 0 18143451 17287027 0 0 19146165 17867317 X 20494722 13695930 1183886 7317810 0 0 21678608 21013740 40824773 38881057 X 4266780 -54649 -4876999 X false true X true false X 3885870 721483 2641927 2008481 8129313 17387074 0 0 3885870 721483 2641927 2008481 8129313 17387074 14217455 3169619 644331 591529 529171 362181 261631 2388843 0 37049 16929 20600 30822 9603 115003 19890920 7629373 0.15935 0.18290 X Schedule A, Part II, LIne 17 Media Development Investment Fund (MDIF) is a mission-driven investment fund for independent news outlets in countries with a history of media oppression. MDIF provides low-cost capital and technical know-how to help journalists in challenging environments build sustainable businesses around professional, responsible, quality journalism. MDIF depends on the generosity of large private foundations, governmental entities and the public at large to continue its important work. Charitable giving has diminished across the not-for-profit sector; as a result, organizations like MDIF that depend upon public support to thrive are suffering greatly. This has impacted the organization's ability to raise funds, to solicit contributions and to generate revenues to undertake exempt programs. MDIF is fortunate to have secured the patronage of one significant contributor, Open Society Foundations, that has enabled it to weather the difficult economic times, leaving it with enough funds to support those programs that further its charitable mission. MDIF understands the need to meet the public support test. To that end, it is continually attempting to generate new sources of fundraising, both through broad donor appeals, targeted solicitations, and website exhortations. Internal Revenue Code Regulation 1.170A-9T lists several criteria that indicate facts and circumstances supporting an organization's continued public charity status despite not meeting the 33 1/3 support test. Those criteria are as follows: 1. Attraction of public support - in the past few years, MDIF has sought to expand its fundraising capabilities to generate greater public support. The organization's website now directly appeals to net users to invest in press freedom. Specifically, the webpage notes: There are three ways to invest, depending on the financial returns you seek, the amount you would like to invest and where you are in the world. These activities target prospective donors who support MDIF's mission and programs. In 2015, MDIF expanded its donor base to include two new significant donors that should assist its public support percentage in the coming years. 2. Percentage of financial support - the Foundation's public support percentage exceeds 16%. The higher the percentage of support above the 10 percent requirement of paragraph (f)(3)(i) of 1.170A-9T, the lesser will be the burden of establishing the publicly supported nature of the organization through other factors described in paragraph (f)(3), while the lower the percentage, the greater will be the burden. MDIF's support percentage is low because it receives a large percentage of its contributions from a private foundation. 3. Sources of Support - MDIF has historically received much of its support from governmental entities; due to tough economic times, the amounts of these donations has been significantly reduced. As the economy rebounds, the hope is that MDIF will see an increase in funding. 4. Representative Governing Body -MDIF has a governing body that is broadly represented by members of the community. Each of these factors are significant positive evidence of MDIF's publicly supported nature. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8030958 2000 -212706 1800000 44543 5975709 13559675 -363066 5100000 65651 8030958 22409477 1303396 10050000 103198 13559675 16475072 5275652 1880225 1129357 92115 22409477 18484177 5101200 122369 7134825 97849 16475072 1.00000 0.00000 0.00000 false false 373000 257434 115566 398414 313913 84501 741635 478228 263407 463474 PRINT 25581265 C TELEVISION 5438113 C RADIO 2154751 C ONLINE 4414432 C NEWS AGENCY 605922 C UNREMITTED EQUITY IN NET -3795787 C EARNINGS OF EQUITY INVESTEES C ALLOWANCE FOR DOUBTFUL PRIS -10915697 C 23482999 0 0 X 8409309 -54649 116936 -1248275 -1185988 9595297 9595297 9074177 116936 3628724 3745660 5328517 5328517 Schedule D, Part V, Line IV In March of 2008, the Board of Directors of Media Development Investment Fund established the Client Subsidy Fund ("CSF"). The Board restricted the use of the assets and earning thereon to meet budgeted shortfall between the Fund's annual operating costs and its annual non-CSF income, with the purpose of supporting the below-market interest rates charged by the Fund on its program-related loans and leases. Schedule D, Part X, Line 2 MANAGEMENT EVALUATED THE TAX POSITIONS FOR MDIF AND EACH OF THE CONSOLIDATED ENTITIES AND CONCLUDED THAT THE FUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT OR DISCLOSURE TO THESE CONSOLIDATED FINANCIAL STATEMENTS. Schedule D, Part XI, Line 2D EQUITY IN NET EARNINGS OF INVESTEES $(517,751) Foreign Currency Translation loss $(249,270) Loss due to currency exchange rate $(481,254) -------------------------------------------------------- Total $(1,248,275) Schedule D, Part XII, Line 2D Adjustment for provision for doubtful program-related investments, net $3,628,724 true East Asia and the Pacific 1 Grantmaking 3779 Europe (Including Iceland and Greenland) 1 12 Grantmaking 16169 Russia and the Newly Independent States Grantmaking 226311 South America Grantmaking 3947 South Asia Grantmaking 28436 Sub-Saharan Africa 1 Grantmaking 225570 North America Program Services Program Related Inv. 199998 East Asia and the Pacific Program Services Program Related Inv. 383000 Europe (Including Iceland and Greenland) Program Services Program Related Inv. 202110 Russia and the Newly Independent States Program Services Program Related Inv. 259990 South America Program Services Program Related Inv. 1029496 South Asia Program Services Program Related Inv. 381065 Sub-Saharan Africa Program Services Program Related Inv. 408508 1 14 1 14 3368379 3368379 Europe (Including Iceland and Greenland) General support 7305 Russia and the Newly Independent States General Support 148757 Sub-Saharan Africa General Support 6356 Sub-Saharan Africa General Support 20095 Europe (Including Iceland and Greenland) General Support 8865 Russia and the Newly Independent States general support 13498 Sub-Saharan Africa general support 225570 7 true false true false false false Schedule F, Part I, Line 2 Applying for MDIF financing is a detailed process that usually takes several months. MDIF undertakes a rigorous process to fully understand a Beneficiary's business and the intended use of the funds to be granted or loaned to the organization. Potential Beneficiaries need to understand the demands that MDIF will make on them should their application be successful, such as intended and actual use of funds loaned or granted. To be eligible to apply for MDIF financing, a media outlet must have been operating legally in its home country for at least a year, although the Board may waive the one-year requirement when the Mission so requires, have an established reputation for promoting democratic institutions and practices and exercising the principles of a free, independent and responsible press, devote a significant part of editorial content or programming to be fact-based news and documentaries, independent from the influence of the government or any other interest group, offer coverage of different political opinions and promote human rights, the rights of ethnic minorities and inter-ethnic co-existence, not be owned by the government, a state agency, a foreign legal entity, or an oligarch business interest that may interfere with editorial policy for its own interests, present a detailed project aimed at broadening and strengthening the outlet's operation, have strong prospects of being able to repay the loan and becoming self sustaining, ensure that funds will be used as stipulated, and provide MDIF with unrestricted access to accounting records. Schedule F, Part I, Line 3, Column F MDIF has reported two different types of transactions on Schedule F: 1. Grants made to foreign organizations. These are detailed in Part of Schedule F and the sum reported in Part I ties back to Form 990, Part IX, Line 3. 2. Loan and equity disbursements made to foreign organizations during the current year The amounts reported in Part I, Line 3, column (f) represent the program related investments MDIF disbursed in the form of loans, finance leases and equity investments to newspaper publishers, TV and radio stations, printing houses, news agencies and online publishers in various countries. The amounts listed represent the current year expenditures. Schedule F, Part II, Line 1, Col D MDIF's primary exempt purpose is to support news outlets in countries with a history of oppression of the freedom of expression. Occasionally, MDIF will make grants to organizations in these countries to provide leading journalists with the support they need to create lasting institutions for change. Schedule F, Part IV Media Development Investment Fund, Inc. holds several program related investments outside the United States. To the extent that its ownership of these investments exceeds the thresholds for requiring a Form 926 or Form 5471, those filings have been attached to the organization's Form 990-T as required. X X true false false false false false false false false Harlan Mandel CEO 238089 0 0 0 0 0 35713 0 35898 0 309700 0 0 0 Mari Budesa CFO/Assistant Treasurer 177558 0 0 0 0 0 26634 0 13655 0 217847 0 0 0 ELENA POPOVIC SECRETARY AND GENERAL COUNSEL 154176 0 0 0 0 0 0 0 0 0 154176 0 0 0 Jaroslav Gora Senior Investment Advisor 113611 113611 113611 Schedule J, Line 4a Former employee, Jarolsaw Gora, received a severance payment of $113,611 in calendar year 2015; this payment has been reflected in Schedule J, Part II, Column (b)(iii) and Column (F). The severance was accrued in 2014 (and reported on the prior year Form 990), but actually paid in 2015. Form 990, Part V, Line 2A THE INDIVIDUALS PERFORMING SERVICES FOR MEDIA DEVELOPMENT Investment FUND, INC (MDIF) ARE LEASED EMPLOYEES FROM AN UNRELATED ORGANIZATION, OPEN SOCIETY FOUNDATIONS, INC (OSF). MDIF PAYS OSF A MANGAGEMENT AND ADMINISTRATIVE FEE TO COVER EMPLOYEE COSTS, INCLUDING SALARY, BENEFITS AND OTHER ANCILLARY COSTS. TEN EMPLOYEES PROVIDING SERVICES TO MDIF RECEIVE THEIR W-2 FROM OSF. These individuals are not included on PART V, LINE 2A. FORM 990, Part VI, Line 11 THE FORM 990 HAS BEEN PROVIDED TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO FILING. ONCE APPROVED, A COPY OF THE FORM 990 WAS PROVIDED TO THE FULL BOARD. THE FORM 990 WAS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM AND REVIEWED IN DETAIL BY THE FUND'S MANAGING DIRECTOR AND ASSISTANT TREASURER. FORM 990, Part VI, Line 12C Each officer, director, trustee and key employee of MDIF is required to annually disclose any conflicts of interest that arise by virtue of their employment, board service, or position with the College. MDIF monitors compliance with its conflict of interest policy through an annual questionnaire/disclosure statement that is distributed to these individuals. Potential conflicts are investigated immediately. FORM 990, Part VI, Line 15A THE TOP MANAGEMENT OFFICAL'S SALARY IS DETERMINED BY THE MDIF BOARD OF DIRECTORS. MDIF UNDERTAKES A LENGTHY PROCESS TO ENSURE THAT THE COMPENSATION IT PAYS IS REASONABLE. IN RELEVANT PART, THE BOARD OF DIRECTORS utilizes A COMPENSATION COMMITTEE COMPRISED OF Independent PERSONS THAT HAVE NO PERSONAL interest IN THE PROPOSED COMPENSATION ARRANGEMENT. The compensation committee may use an independent compensation consultant to advise on the appropriate compensation levels for the top management official. The compensation consultant uses benchmarking data that documents the compensation of persons holding similar positions in similar organizations. Once the compensation consultant has made its recommendations, the MDIF compensation committee approves the compensation. This final determination is then documented in committee minutes. Form 990, Part VI, Line 15B MDIF undertakes the same exact procedure for its officers and key employees as it does for its top management official. The only difference in the process is that the CEO will make the final determination about the officers' salaries. Form 990, Part VI, Line 19 The taxpayer makes its Form 990 and Form 1023 available to the public by retaining a copy of each at the addresses listed on Page 1 of this return. Any individual requesting a copy of these documents is provided that copy on the same business day. The Organization's Form 990 is also available for public inspection on www.guidestar.org. The Organization's governing documents, conflict of interest policy, and financial statements are available at the public request and at management's discretion. PART XI, Line 9 EQUITY IN NET EARNINGS OF INVESTEES $(517,751) Foreign Currency Translation loss $(249,270) Adjustment for provision for doubtful program-related investments, net $(3,628,724) Loss due to currency exchange rate $(481,254) -------------------------------------------------------- TOTAL: ($4,876,999) Digital News Ventures LLC 37 west 20th street new york NY 10011 134052259 PRI NY 0 3278607 MDIF MDIF Equities LLC 37 West 20th Street New York NY 10011 INACTIVE NY 0 0 MDIF MDLF Service Corp 37 west 20th street new york NY 10011 Agency Accoun DE NA C 0 1208 1.00000 true false false false false false false false false false false false false false true true false false false false Schedule R, Part I MEDIA DEVELOPMENT Investment FUND HAS A WHOLLY-OWNED SUBSIDIARY, Digital News Ventures, LLC (WHICH IS TREATED AS A DISREGARDED ENTITY FOR US TAX PURPOSES). THIS ORGANIZATION'S PRINCIPAL ACTIVITY IS to make seed investments in news and information start-ups. Digital News Ventures invests in experimental digital products and businesses that contribute to the provision of information in the public interest.