2016-05-14T10:58:32-05:00 2015-12-31 560574444 CHERRY BEKAERT LLP 3 Bethesda Metro Ctr Ste 600 Bethesda MD 20814 990 2015-01-01 542058754 THE NATURAL CAPITAL INVESTMENT FUND C/O THE CONSERVATION FUND NATU 7035256300 1655 NFORT MYER DRIVE No 1300 ARLINGTON VA 222093199 DAVID PHILLIPS JR TREASURER 7035256300 2016-05-13 1 Scott Denlinger P00740770 3019513636 2015 2016-12-15 16:53:06Z DAVID K PHILLIPS 1655 N FORT MYER DR ARLINGTON VA 22209 3747118 0 X WWW.ncifund.ORG X 2001 MD SEE SCHEDULE O. 10 5 0 0 0 0 2981127 2818762 740935 923902 3158 4454 48006 0 3773226 3747118 0 0 0 0 0 0 0 0 2217 2164130 2203533 2164130 2203533 1609096 1543585 16974158 25631187 6697201 13810645 10276957 11820542 NCIF IS A CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION THAT PROVIDES FINANCIAL AND TECHNICAL ASSISTANCE TO SUPPORT DEVELOPMENT OF NATURAL RESOURCE-BASED BUSINESSES. 0 0 2138357 928356 PROVIDED SUPPORT FOR BUSINESS DEVELOPMENT TO NATURAL RESOURCE-BASED ENTERPRISES AND PARTNERED WITH GOVERNMENT ENTITIES TO PROVIDE LOANS TO BUSINESSES TO ENGAGE IN SOUND ENVIRONMENTAL PRACTICES. 2138357 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 32 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 10 5 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MD NC TN WV CT GA KY MI MN NY OH OR SC VA SC AL X X MICHAEL COX 7035256300 1655 N FORT MYER DRIVE SUITE 1300 ARLINGTON VA 222093199 X ANDREW SHOCK DIRECTOR 3.00 34.50 X 0 129611 35346 ARCHIE HART DIRECTOR 1.00 X 0 0 0 BECKY ANDERSON DIRECTOR 1.00 X 0 0 0 ERIK J MEYERS chairman 3.00 34.50 X X 0 198848 25127 EVAN SMITH diRECTOR 3.00 34.50 X 0 181854 41786 GAT CAPERTON Chairman 1.00 X 0 0 0 JOSEPH HANKINS ASSISTANT TREASURER 3.00 34.50 X X 0 186032 26727 MICHELE J SAGER VICE CHAIRMAN 3.00 34.50 X X 0 162484 37546 RUTH JOSECK DIRECTOR 1.00 X 0 0 0 WM ATONY HAYES DIRECTOR 1.00 X 0 0 0 RICK LARSON SENIOR VICE PRESIDENT 3.00 34.50 X X 0 146132 38485 ANNA TEFT SENIOR VICE PRESIDENT 3.00 34.50 X X 0 96237 16787 DAVID K PHILLIPS JR TREASURER 3.00 34.50 X 0 312232 44386 MARTEN JENKINS pRESIDENT & CEO 37.50 X 0 133905 35856 SCOTT TSUKUDA ASSISTANT TREASURER 3.00 34.50 X 0 98956 17177 0 1646291 319223 0 0 1 0 0 1998320 820442 2818762 INTEREST INC FROM NR 522299 644390 644390 PROG/CONTRACT FEES 541900 279512 279512 923902 4454 4454 3747118 923902 0 4454 X 1659 1659 1814 1814 26000 26000 1683162 1650521 30613 2028 3357 3263 88 6 44110 42958 1082 70 10084 9802 264 18 50167 48766 1314 87 10958 10958 227887 227887 LOAN LOSS RESERVE 105453 105453 LOAN ORIGINATION FEES 24395 24395 LOSS FROM NOTES REC. 9719 9719 EMPLOYEE TRAINING AND D 4768 4635 125 8 2203533 2138357 62959 2217 X 7806098 10807759 242949 1847370 94381 36380 8706991 12820357 123739 119321 16974158 25631187 50617 60834 22260 4771138 9994043 1875446 3733508 6697201 13810645 X 2762570 3206238 4187543 5287460 3326844 3326844 10276957 11820542 16974158 25631187 1543585 0 X 0 1 X 1 1 1 X X 1 THE CONSERV FUND 521388917 7 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 NOTES RECEIVABLE - FINANCING FOR NATURAL RESOURCE-BASED COMPANIES 12720362 C SC FUEL DEPOT 99995 C 12820357 FUNDS HELD FOR OTHERS 14957 LINE OF CREDIT, RELATED PARTY 2500000 ACCOUNTS PAYABLE, RELATED PARTY 1218551 3733508 X 3747118 0 3747118 0 3747118 2203533 0 2203533 0 2203533 Part X, Line 2: NCIF accounts for the effect of any uncertain tax positions based on a "more likely than not" threshold to the recognition of the tax positions being sustained based on the technical merits of the position under scrutiny by the applicable taxing authority. If a tax position or positions are deemed to result in uncertainties of those positions, the unrecognized tax benefit is estimated based on a "cumulative probability assessment" that aggregates the estimated tax liability for all uncertain tax positions. NCIF has identified its tax status as a tax-exempt entity as its only significant tax position; however, NCIF has determined that such tax position does not result in an uncertainty requiring recognition. NCIF is not currently under examination by any taxing jurisdiction. NCIF's federal and state tax returns are generally open for examination for three years following the filing date. SCHEDULE D, PART VIII: NCIF LENDS MONEY IN UNDERSERVED COMMUNITIES IN THE U.S. INCLUDING THE STATES OF WEST VIRGINIA, NORTH CAROLINA, VIRGINIA, OHIO, MARYLAND, MICHIGAN, CONNECTICUT, NEW YORK, MINNESOTA, OREGON, GEORGIA, SOUTH CAROLINA, TENNESSEE, AND KENTUCKY. THE TOTAL AMOUNT OF THE NOTES RECEIVABLE, NET OF ALLOWANCE FOR POSSIBLE LOSSES AT DECEMBER 31, 2015 IS $12,720,362. ALL LOANS REQUIRE BOARD APPROVAL. THE LOAN BALANCES RANGE FROM $2,500 TO 2,000,000. THE NOTES HAVE VARIOUS INTEREST RATES AND MATURITY DATES, WITH THE LATEST NOTE MATURING IN 2034. X X X X X 0 0 0 0 0 0 0 0 0 ANDREW SHOCK DIRECTOR 0 113300 0 15400 0 911 0 11330 0 24016 0 164957 0 0 ERIK J MEYERS chairman 0 169500 0 26300 0 3048 0 16950 0 8177 0 223975 0 0 EVAN SMITH diRECTOR 0 147114 0 34500 0 240 0 14770 0 27016 0 223640 0 0 JOSEPH HANKINS ASSISTANT TREASURER 0 161500 0 23500 0 1032 0 16150 0 10577 0 212759 0 0 MICHELE J SAGER VICE CHAIRMAN 0 141300 0 19600 0 1584 0 14130 0 23416 0 200030 0 0 RICK LARSON SENIOR VICE PRESIDENT 0 137700 0 7400 0 1032 0 13770 0 24715 0 184617 0 0 DAVID K PHILLIPS JR TREASURER 0 221700 0 89500 0 1032 0 22170 0 22216 0 356618 0 0 MARTEN JENKINS pRESIDENT & CEO 0 116400 0 17000 0 505 0 11640 0 24216 0 169761 0 0 FORM 990, PART I, LINE 1: NCIF IS A CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION THAT PROVIDES FINANCIAL AND TECHNICAL ASSISTANCE TO SUPPORT DEVELOPMENT OF NATURAL RESOURCE-BASED BUSINESSES. Form 990, Part VI, Section B, line 11 The independent auditing firm engaged to conduct an annual audit of the financial statements and position of The Natural Capital Investment Fund (NCIF) is engaged to assist in the preparation of the Form 990. The President, the Chief Financial Officer and staff of The Conservation Fund, NCIF's parent organization, directly participate in the preparation of the form, drafting responses to questions and reviewing the Form 990 in draft. A draft copy of the Form 990 is sent to the members of the Board of Directors, requesting comments and questions from them. Subsequent to the review and revision process of the Board and management, the Form 990 is finalized and filed with the IRS. Copies of the form are provided are then made available for public inspection. Form 990, Part VI, Section B, line 12c Conflict policy copies are provided to each Director and Officer at a regular Board meeting each year, typically at the first meeting of the year. Each such person must sign to indicate he/she has read the policy and understands his/her duties under it. Form 990, Part VI, Section B, line 15 Natural Capital Investment Fund does not have any direct employees. employees of The Conservation Fund perform the program and management duties. The Conservation Fund uses an outside third party compensation study to evaluate compensation levels for its President and key officials. The Conservation Fund's governance committee approves compensation amounts for the President and key officials. Form 990, Part VI, Section C, line 19 NCIF MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VII, SECTION A: THE NATURAL CAPITAL INVESTMENT FUND IS A SUPPORTING ORGANIZATION TO THE CONSERVATION FUND. ALL COMPENSATED OFFICERS AND DIRECTORS LISTED ARE FULL-TIME EMPLOYEES--37.5 HOURS PER WEEK--OF THE CONSERVATION FUND. HOURS NOT SPENT WORKING BY OFFICERS ON THE AFFAIRS OF NATURAL CAPITAL INVESTMENT FUND ARE SPENT WORKING FOR THE CONSERVATION FUND OR ANOTHER RELATED ORGANIZATION, SUSTAINABLE CONSERVATION, INC. COMPENSATION LISTED IN BOX E OF PART VII, SECTION A AND SCHEDULE J PART II IS PAID BY THE CONSERVATION FUND TO THESE INDIVIDUALS. THE NATURAL CAPITAL INVESTMENT FUND PAYS THE CONSERVATION FUND AN ANNUAL MANAGEMENT FEE WHICH INCLUDES PAYMENT FOR THE USE OF THESE EMPLOYEES. MR. JENKINS DEVOTES HIS TIME TO THE AFFAIRS OF THE NATURAL CAPITAL INVESTMENT FUND. Form 990, Part IX, line 11g CONTRACTUAL SERVICES- MANAGEMENT CONTRACT: Program service expenses 1,135,931. Management and general expenses 30,613. Fundraising expenses 2,028. Total expenses 1,168,572. contRACTUAL SERVICES- PROGRAM: Program service expenses 514,590. Management and general expenses 0. Fundraising expenses 0. Total expenses 514,590. FORM 990, PART X, LINE 29: RESOURCES ACCUMULATED THROUGH DONATIONS OR GRANTS THAT ARE SUBJECT TO A RESTRICTION THAT NEITHER EXPIRE BY PASSAGE OF TIME NOR CAN BE FULFILLED OR OTHERWISE REMOVED BY ACTIONS OF NCIF. DONOR CONTRIBUTIONS TO BE USED FOR LOAN CAPITAL ARE RECORDED BY NCIF IN ITS LOAN CAPITAL REVOLVING FUND AS PERMANENTLY RESTRICTED. THE FUNDS ARE USED TO PROVIDE FINANCING CAPITAL TO QUALIFYING BUSINESSES. THE LOAN CAPITAL REVOLVING FUND IS REPLENISED AS THE LOAN PRINCIPAL IS REPAID. IN THE EVENT THAT A NOTE RECEIVABLE FUNDED BY PERMANENTLY RESTRICTED CONTRIBUTIONS BECOMES UNCOLLECTIBLE, NCIF WRITES-OFF THE UNCOLLECTIBLE AMOUNT AGAINST THE PERMANENTLY RESTRICTED NET ASSETS VIA A TRANSFER TO UNRESTRICTED NET ASSETS. THE CONSERVATION FUND 1655 N FORT MYER DRIVE ARLINGTON VA 22209 521388917 CONSERVATION MD 501(c)(3) Line 7 N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 THE CONSERVATION FUND P 1218551 COST THE CONSERVATION FUND O 31882 COST