2016-08-03T11:04:10-07:00 2015-12-31 990 2015-01-01 133836581 SHARED INTEREST INC SHAR 2123378547 121 West 27th Street Suite 805 New York NY 100016207 Donna Katzin Executive Director 6464420182 2016-08-03 2015 2016-12-15 16:53:06Z Donna Katzin 121 West 27th Street Suite 805 New York NY 10001 1991707 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. 22 21 6 11 0 0 1204535 1204127 245864 256874 59286 66893 0 0 1509685 1527894 238344 450104 0 0 397725 441831 51430 61400 185359 638206 537466 1325705 1490801 183980 37093 18167786 19324881 15561614 17031301 2606172 2293580 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 1246671 450104 256874 During the 2015 tax year, the organization had outstanding as many as 18 agreements guaranteeing commercial loans to emerging small businesses and microfinance intermediary organizations in South Africa and the neighboring countries of Mozambique and Swaziland. Fifteen of this number supported enterprises in South Africa, our principal focus of activity. The aggregate exposure involved in the guarantees totaled approximately $5,628,000 in the year, yet another year in which local lending institutions continued to exhibit a great reluctance to make credit available to people of color, the vast majority of the region's citizens, while maintaining (with some justification) the profit margins of such lending are too thin relative to the perceived risk. Nonetheless, the credit facilities arranged by Shared Interest in the US, because they were limited to no more than 75% of the exposure, 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 1246671 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 0 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 1 0 0 0 1 98 0 1 6 1 0 0 0 0 0 1 1 0 0 0 0 0 0 X 22 21 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 X Timothy Smith Chairman & Director 4.00 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 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 0.5 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 1 0 X 0 0 0 Sarah Leshner Director 1 0 X 0 0 0 Linnie McLean Director 3 0.5 X 0 0 0 Mandla Nkomo Director 0.5 3.00 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 0.5 4.00 X 0 0 0 Richard Tolliver Director 2.00 0 X 0 0 0 David Wildman Director 1 0 X 0 0 0 Joshua Woodard Director 1 0 X 0 0 0 Ron Shiffman Director 2 0 X 0 0 0 Phindile Spies Director & Officer 0.5 50 X X 0 85000 0 Donna Katzin Executive Director & Officer 50 0.50 X 80000 0 20736 80000 85000 20736 0 0 0 0 0 0 0 277185 0 0 926942 113648 1204127 Interest on Pgm Investments Returned to Lenders 523000 253926 253926 0 0 Book Sales 511130 2948 2948 0 0 0 0 0 0 256874 68459 0 0 68459 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 317460 79787 311487 87326 5973 -7539 -1566 0 0 -1566 65000 277185 65000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1527894 256874 0 66893 0 0 0 0 450104 450104 0 0 100737 80937 8649 11151 0 0 0 0 276861 222446 23768 30647 6809 5470 585 754 25184 20234 2162 2788 32240 25903 2768 3569 0 0 0 0 416 416 0 0 12500 6250 6250 0 0 0 0 61400 61400 5815 5815 0 0 42023 24648 900 16475 30639 11404 0 19235 26032 19802 2116 4114 8071 6485 693 893 0 0 0 0 52599 42261 4516 5822 13123 5856 0 7267 0 0 0 0 15767 15767 0 0 253926 253926 0 0 0 0 0 0 4119 3309 354 456 2148 1726 184 238 Printing & Publications 33231 15464 0 17767 Investment & Bank Facility Fees 25891 20075 5816 0 Membership & Business Registration Fees 10365 8292 0 2073 PFR Expense Reimbursements 700 0 0 700 101 81 10 10 1490801 1246671 58771 185359 X 0 0 0 0 85 316 628066 551661 394764 204206 0 0 0 0 0 0 0 0 0 0 101051 50837 62597 56111 9157 6486 1019042 1297948 0 0 15635065 16984015 0 380556 229412 18167786 19324881 78523 88769 0 0 0 0 0 0 0 0 0 0 0 0 15421913 16874913 61178 67619 15561614 17031301 X 2220209 2129024 385963 164556 0 0 2606172 2293580 18167786 19324881 37093 -349685 0 0 0 0 X 0 1 X 1 0 X 1405844 1535141 1119455 1204535 1204127 6469102 0 0 0 0 0 0 0 0 0 0 0 0 1405844 1535141 1119455 1204535 1204127 6469102 1101379 5367723 36740 55828 32574 42005 68459 235606 0 0 0 0 0 0 0 0 0 0 0 0 6704708 1230813 0.80059 0.84937 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 7000 7000 0 0 55597 49111 6486 0 0 0 0 6486 Investments Held as Collateral 16984015 F 16984015 0 Accrued interest payable to noteholders 67619 67619 946646 -349685 22363 0 0 -327322 1273968 253926 0 253926 1527894 1259238 22363 0 0 0 22363 1236875 253926 0 253926 1490801 1 Sub-Saharan Africa 0 0 Grantmaking 450104 0 0 450104 Sub-Saharan Africa Loan Guarantee Evaluation 450104 Wire Transfer 0 USD cash 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 25 SE 2nd Avenue Suite 338 Miami FL 33131 Organization of fundraising dinner and solicitation of attendees 1 342185 61400 280785 342185 61400 280785 NY PA Fundraising Dinner 342185 277185 65000 0 0 0 65000 0 0 0 0 342185 277185 65000 0 0 0 65000 0 0 65000 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. In addition to the professional fee reported here, the Organization reimbursed the fundraiser in the amount of $700.36 for office expenses and long distance travel. X 2 113648 FMV (mean) 0 0 1 0 Schedule M, Part I, Line 9 The organization received gifts in 2015 from two individuals in the form of 3 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 10 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 (What's New). 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 apply for compensation that could possibly be interpreted as presenting a conflict of interest, the Board refers to its written policy document and proceeds 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. Only disinterested members may vote on a conflict of interest issue. In the event the transaction or arrangement is deemed actually to present a conflict between the interest of one of its members and those of the Organization, the Chairperson of the Board or Committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising reasonable due diligence in this regard, the Board of Directors or any committee 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 committee 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. In conformity with the aforesaid determination, it shall make its decision as to whether to enter into the transaction or arrangement. 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. Form 990, Part VII, Section A, Line 1a Average Hours Per Week worked by Shared Interest board members and officers in the exercise of their duties are generally with respect to Shared Interest, and not to its related organization (which has its own South African board). This is true except in the cases of 3 Shared Interest Board and officer persons who also sit on the board of Thembani International Guarantee Fund. However, in the case of the CEO of Thembani, who is a full-time officer of that organization and a volunteer director of Shared Interest, the number of hours reported (50.5) includes just one half hour per week on average expended in the governance of Shared Interest. Thembani International Guarantee Fund 1237 Pretorius Street 1st Floor Harrowgate Park Pretoria (Hatfield) Gauteng SF Loan Guarantee evaluation SF 501(c)(3) Shared Interest Inc 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0