2016-08-12T10:37:51-05:00 2015-12-31 271728945 PKF O'CONNOR DAVIES LLP 665 FIFTH AVENUE NEW YORK NY 10022 990 2015-01-01 134166228 ACUMEN FUND INC ACUM 2125668821 40 WORTH STREET NO 303 NEW YORK NY 10013 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 6467473687 2016-08-12 1 GARRETT M HIGGINS P00543209 2122862600 2016-08-09 2015 2016-12-15 16:53:06Z X JACQUELINE NOVOGRATZ 40 WORTH STREET NO 303 NEW YORK NY 10013 23670046 0 X WWW.ACUMEN.ORG X 2001 NY OUR MISSION IS TO CREATE A WORLD BEYOND POVERTY BY INVESTING IN COMPANIES, LEADERS, AND IDEAS.OUR VISION IS THAT ONE DAY EVERY HUMAN BEING WILL HAVE ACCESS TO THE CRITICAL GOODS AND SERVICES THEY NEED - INCLUDING AFFORDABLE HEALTH, WATER, HOUSING, ENERGY, EDUCATION, AND AGRICULTURAL INPUTS AND SERVICES - SO THEY CAN MAKE DECISIONS AND CHOICES FOR THEMSELVES AND UNLEASH THEIR FULL HUMAN POTENTIAL. THIS IS WHERE DIGNITY STARTS - NOT JUST FOR THE POOR BUT FOR EVERYONE ON EARTH. 16 15 71 17 0 0 18371359 22558173 743453 769446 -393477 290683 10595 10218 18731930 23628520 975304 1238724 0 0 7452108 8662728 0 0 2052248 8444137 7384046 16871549 17285498 1860381 6343022 96563935 102771968 1246537 1401512 95317398 101370456 X ACUMEN FUND IS WORKING TO CHANGE THE WAY THE WORLD TACKLES POVERTY BY INVESTING IN COMPANIES, LEADERS AND IDEAS. WE INVEST PATIENT CAPITAL IN BUSINESSES THAT DELIVER CRITICAL, AFFORDABLE GOODS AND SERVICES TO THE POOR, IMPROVING THE LIVES OF MILLIONS IN SOUTH ASIA, SUB-SAHARAN AFRICA AND LATIN AMERICA.SINCE 2001, ACUMEN FUND HAS INVESTED $97 MILLION IN 90 ENTERPRISES THAT PROVIDE EVERYTHING FROM AFFORDABLE MATERNAL HEALTHCARE SERVICES, TO ASSET-BACKED FINANCING FOR SMALLHOLDER FARMERS IN AFRICA, INDIA, PAKISTAN AND LATIN AMERICA. WE ARE BUILDING A GLOBAL COMMUNITY OF EMERGING LEADERS WHO BELIEVE IN CREATING A MORE INCLUSIVE WORLD THROUGH THE TOOLS OF BUSINESS AND PHILANTHROPY. WE ARE ALSO WORKING TO SHARE OUR LESSONS AND SPREAD INNOVATIVE IDEAS FOR POVERTY ALLEVIATION. 0 0 7914774 1213724 1008193 INVESTING AND PORTFOLIO MANAGEMENT:ACUMEN INVESTS PATIENT CAPITAL IN BUSINESS MODELS THAT DELIVER CRITICAL, AFFORDABLE GOODS AND SERVICES TO THE WORLD'S POOR, IMPROVING THE LIVES OF MILLIONS. SINCE 2001, ACUMEN HAS INVESTED IN BUSINESSES THAT PROVIDE ACCESS TO WATER, HEALTH, ENERGY, HOUSING, EDUCATION AND AGRICULTURAL SERVICES TO LOW-INCOME CUSTOMERS. IN ADDITION TO ACUMEN'S WORK IN INDIA, PAKISTAN, EAST AND WEST AFRICA, ACUMEN HAS MOST RECENTLY EXPANDED ITS WORK INTO LATIN AMERICA AND THE US. ACUMEN HAS CUMULATIVELY INVESTED $97 MILLION IN 90 BUSINESSES SERVING THE POOR. POST-INVESTMENT MANAGEMENT HAS CONTINUED TO BE A KEY PRIORITY FOR ACUMEN IN 2015. IN THE FIRST QUARTER OF THIS YEAR, OUR TEAM CONDUCTED ANNUAL REVIEWS FOR ALL PORTFOLIO COMPANIES TO MEASURE ACTUAL PERFORMANCE AGAINST SOCIAL AND FINANCIAL IMPACT TARGETS AND DEVELOP DETAILED POST-INVESTMENT ENGAGEMENT AND MANAGEMENT PLANS OUTLINING THE SUPPORT AND INVOLVEMENT REQUIRED BY ACUMEN TO HELP THE COMPANIES GROW.ACUMEN HAS ALSO EXPANDED ITS WORK WITH CORPORATIONS TO LEVERAGE THEIR SKILLS AND EXPERIENCE TO SUPPORT OUR INVESTEE COMPANIES WITH TECHNICAL ASSISTANCE. IN ADDITION, ACUMEN HOSTED ITS THIRD COLLABORATION SUMMIT IN NAIROBI IN PARTNERSHIP WITH DOW, COCA-COLA, SAFARICOM AND UNILEVER TO PROVIDE 13 GRANTS TO PROVIDE FINANCIAL AND TECHNICAL SUPPORT TO A NUMBER OF OUR INVESTEE COMPANIES. WE ALSO HOSTED A CEO SUMMIT IN INDIA IN PARTNERSHIP WITH GE TO FOSTER THE DEVELOPMENT OF OUR ENTREPRENEURS WORKING IN THE COUNTRY. WE ALSO PUBLISHED TWO PUBLICATIONS. THE FIRST, SOCIAL ENTERPRISES AND GLOBAL CORPORATIONS COLLABORATING FOR GROWTH WITH IMPACT, WHICH WAS DONE IN PARTNERSHIP WITH BUSINESS FIGHTS POVERTY, SPOTLIGHTS THE DIFFERENT WAYS COMPANIES AND SOCIAL ENTERPRISES ARE JOINING FORCES AND THE NEW OPPORTUNITIES ARISING TO HELP CREATE LASTING CHANGE TOGETHER. THE SECOND PUBLICATION-WOMEN AND SOCIAL ENTERPRISES: HOW GENDER INTEGRATION CAN BOOST ENTREPRENEURIAL SOLUTIONS TO POVERTY-WAS DONE IN PARTNERSHIP WITH THE INTERNATIONAL CENTER FOR RESEARCH ON WOMEN AND THE CARTIER CHARITABLE FOUNDATION. IT FOCUSES ON HOW SOCIAL ENTERPRISES ARE ENGAGING AND IMPACTING WOMEN AND SHOWS HOW GENDER CAN INFLUENCE BUSINESS. 3688249 25000 IDEAS:THE GOAL OF THE IMPACT AND COMMUNICATIONS TEAMS AT ACUMEN IS TO SUPPORT ITS MISSION OF CHANGING THE WAY THE WORLD TACKLES POVERTY BY SHARING WHAT WE ARE LEARNING FROM OUR PORTFOLIO TO SHARE THE INSIGHTS AND CARVE A NEW APPROACH THAT ADDRESSES POVERTY THROUGH ENTREPRENEURIAL SOLUTIONS. ACUMEN'S IMPACT TEAM CONTINUES TO ADVANCE THE ORGANIZATION'S ROLE IN UNDERSTANDING AND MEASURING SOCIAL PERFORMANCE IN THE IMPACT INVESTING INDUSTRY. BUILDING UPON THE FRAMEWORK WE ESTABLISHED IN 2014, OUR IMPACT TEAM LAUNCHED LEAN DATA MEASUREMENT SERVICES IN 2015. THE INITIATIVE AIMS TO CLOSE THE GAP BETWEEN SOCIAL ENTERPRISES AND THEIR CUSTOMERS BY LEVERAGING TODAY'S TECHNOLOGY REVOLUTION. TODAY, THE 2.5 BILLION PEOPLE LIVING IN POVERTY NOW HAVE ACCESS TO A CELLPHONE, ALLOWING US TO COMMUNICATE DIRECTLY WITH THE POOR AND QUICKLY AND AFFORDABLY GATHER MEANINGFUL DATA ON LOW-INCOME COMMUNITIES TO GENERATE QUALITY INSIGHTS THAT WILL DRIVE ENTREPRENEURS' DECISIONS AND ENSURE WE'RE CREATING THE KIND OF IMPACT WE SET OUT TO.USING OUR LEAN DATA METHOD, WE WERE ABLE TO SURVEY AND EXTRACT MEANINGFUL INSIGHTS FROM 5,000 CUSTOMERS OF 18 OF OUR INVESTMENTS ACROSS SEVEN COUNTRIES, ALL IN A MATTER OF SIX WEEKS. AS WE ROLLED OUT LEAN DATA MEASUREMENT TECHNIQUES, WE SHARED THE WORK IN A FEATURE IN THE STANFORD SOCIAL INNOVATION REVIEW IN THE FALL OF 2015. THE ARTICLE WAS MEANT TO DRIVE THE CONVERSATION ON IMPACT AND HOLD MORE INVESTORS ACCOUNTABLE SO WE, AS A COMMUNITY, CAN DO A BETTER JOB OF UNDERSTANDING OUR SOCIAL PERFORMANCE AND CREATING LONG-TERM IMPACT IN THE LIVES OF THE POOR. THROUGHOUT THE YEAR, WE CONTINUED TO COMMUNICATE ACUMEN'S WORK AND CORE IDEAS THROUGH THE LAUNCH OF ACUMEN IDEAS, OUR NEW STORYTELLING PLATFORM ON MEDIUM.COM, AS WELL AS THROUGH PRESENTATIONS AT LEADING CONFERENCES, WIDELY DISSEMINATED ARTICLES AND WORKSHOPS HELD GLOBALLY THAT COVERED ISSUES RANGING FROM IMPACT TO LEADERSHIP AND TO THE CAPITAL NEEDED TO BUILD SOCIAL ENTERPRISES THAT SERVE THE POOR. ACUMEN'S WORK AND INVESTMENTS WERE FEATURED IN TOP-TIER INTERNATIONAL MEDIA OUTLETS INCLUDING THE FINANCIAL TIMES, FORBES, THE ECONOMIST, THE GUARDIAN AND VARIOUS PUBLICATIONS IN PAKISTAN, AFRICA, INDIA AND LATIN AMERICA. WE WERE ALSO NAMED ONE OF FAST COMPANY'S 10 MOST INNOVATIVE COMPANIES IN NOT-FOR-PROFIT. 1442394 FELLOWS AND LEADERSHIP PROGRAMS: AT THE END OF Q4 2015, WE REACHED A CUMULATIVE 322 FELLOWS, WHO TAKE PART IN ACUMEN'S GLOBAL AND REGIONAL LEADERSHIP PROGRAMS. WE RECEIVED MORE THAN 1,200 APPLICATIONS FROM 105 COUNTRIES FOR OUR 10TH CLASS OF GLOBAL FELLOWS AND WELCOMED PEOPLE FROM 10 NATIONS, RANGING FROM BELARUS TO NIGERIA TO AUSTRALIA, TO BECOME PART OF THE YEAR'S COHORT. WE ALSO SAW CONTINUED POPULARITY OF OUR PAKISTAN AND INDIA FELLOWS PROGRAMS. THE CLASSES OF OUR REGIONAL FELLOWS IN EAST AFRICA, INDIA AND PAKISTAN WERE HAILED FROM A VARIETY OF DIFFERENT FIELDS INCLUDING CORPORATIONS, SOCIAL ENTERPRISES, NGOS AND GOVERNMENT.WE ALSO SAW THE RAPID EXPANSION OF +ACUMEN, OUR ONLINE LEARNING PLATFORM FOR PEOPLE LOOKING TO CREATE SOCIAL CHANGE, WHICH HAS BECOME THE LARGEST MASSIVE OPEN ONLINE COURSE (MOOC) PROVIDER IN THE SOCIAL SECTOR. AS OF Q4 2015, THE +ACUMEN CHAPTER NETWORK HAS EXPANDED TO 26 CHAPTERS AND +ACUMEN'S ONLINE COURSES HAS GROWN TO MORE THAN 275,000 SIGN-UPS WITH COURSE-TAKERS COMING FROM 176 COUNTRIES. IN THE PAST YEAR, +ACUMEN LAUNCHED SEVERAL NEW FREE ONLINE COURSES IN PARTNERSHIP WITH CORPORATIONS AND ORGANIZATIONS LIKE AMERICAN EXPRESS, ACCION INTERNATIONAL, IDEO.ORG, GRAMEEN FOUNDATION AND FOSSIL FOUNDATION, ALL COMMITTED TO HELPING ADVANCE THE WORK AND EDUCATION OF SOCIAL ENTREPRENEURS AND INDIVIDUALS INTERESTED IN CREATING CHANGE DOMESTICALLY AND INTERNATIONALLY. 13045417 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 46 0 71 1 0 1 GH IN KE PK CO CA 0 0 0 0 0 0 0 0 X 16 15 1 1 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 CA NY MA DC IL FL X X X AMRITA BHANDARI CHIEF FINANCIAL OFFICER 6467473687 40 WORTH STREET NO 303 NEW YORK NY 10013 JACQUELINE NOVOGRATZ CEO & DIRECTOR 40.00 1.00 X X 321602 0 23735 ROBERT H NIEHAUS BOARD CHAIR 1.00 X X 0 0 0 ALI J SIDDIQUI DIRECTOR 1.00 X 0 0 0 BOB COLLYMORE DIRECTOR 1.00 X 0 0 0 C HUNTER BOLL DIRECTOR 1.00 X 0 0 0 DAVID HELLER DIRECTOR 1.00 X 0 0 0 GV PRASAD DIRECTOR 1.00 X 0 0 0 JOSEPH E STIGLITZ DIRECTOR 1.00 X 0 0 0 JULIUS GAUDIO DIRECTOR 1.00 X 0 0 0 KEN OFORI-ATTA DIRECTOR THROUGH MARCH 2015 1.00 X 0 0 0 MARGO ALEXANDER DIRECTOR 1.00 X 0 0 0 MICHAEL E NOVOGRATZ DIRECTOR 1.00 X 0 0 0 NAVEED RIAZ THROUGH APRIL 2015 1.00 X 0 0 0 PAT MITCHELL DIRECTOR 1.00 X 0 0 0 SHAIZA RIZAVI DIRECTOR 1.00 X 0 0 0 STUART DAVIDSON DIRECTOR 1.00 X 0 0 0 THULASIRAJ RAVILLA DIRECTOR 1.00 X 0 0 0 WILLIAM E MAYER DIRECTOR 1.00 X 0 0 0 SACHINDRA RUDRA CHIEF INVESTMENT OFFICER 40.00 1.00 X 251710 0 15302 CARLYLE JONES CHIEF OPERATING OFFICER 40.00 X 248351 0 21836 ALEXANDER DICHTER CHIEF INNOVATION OFFICER 40.00 1.00 X 229967 0 32888 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 40.00 X 182880 0 5858 LYNN ROLAND GENERAL COUNSEL 40.00 1.00 X 191500 0 6117 SABRINA N DUPRE GLOBAL HEAD OF BRAND STRATEGY & COMMUNICATIONS 40.00 X 191288 0 21396 YASMINA ZAIDMAN DIRECTOR OF STRATEGIC PART 40.00 X 171662 0 5522 SHUAIB SIDDIQUI DIRECTOR OF PORTFOLIO 40.00 X 169242 0 15421 CATHERINE NANDA DIRECTOR OF GLOBAL EXPANSION 40.00 X 168277 0 27426 2126479 0 175501 16 0 1 0 ADP TOTALSOURCE 5800 WINDWARD PARKWAY ALPHARETTA GA 30005 PROFESSIONAL EMPLOYER ORGANIZATION 154681 ENTERMEDIA LLC 408 - B EAST 43RD STREET AUSTIN TX 78751 WEB MEDIA & DESIGN SERVICES 140623 BRIDGE PARTNERS 1501 BROADWAY SUITE 2605 NEW YORK NY 10036 RECRUITING SERVICES 104387 3 22558173 480175 22558173 PROGRAMMATIC FEES 900099 416957 416957 PGM RELATED LOAN INC 900099 352489 352489 769446 51936 51936 8067 8067 280273 41526 238747 238747 238747 SPEAKER FEES 900099 2145 2145 OTHER INCOME 900099 6 6 2151 23628520 1008193 0 62154 X 1238724 1238724 1334129 855417 245556 233156 6279212 3895437 1160589 1223186 124459 81558 25880 17021 414496 275108 88837 50551 510432 297341 92485 120606 154681 94207 33686 26788 112305 68988 43317 112980 68086 18349 26545 2674435 2507626 116695 50114 122592 105799 349 16444 384005 252062 67309 64634 238406 97383 82709 58314 168094 131119 17583 19392 741958 557904 95825 88229 269855 236156 18675 15024 132795 61094 41295 30406 80262 49109 19315 11838 PROV FOR PORTFOLIO LOSS 2159991 2159991 FOREIGN CURRENCY LOSS 19379 19379 CORPORATE TAXES 12308 12308 17285498 13045417 2187833 2052248 53572 3205098 41646098 28062176 16536895 20828308 1263102 2000974 105951 187124 1322999 835585 116343 487414 500959 500959 35872479 46829779 468536 670136 96563935 102771968 1246537 1401512 1246537 1401512 X 70062897 74601579 25254501 26768877 95317398 101370456 96563935 102771968 X 6343022 -255138 -34826 X X 0 1 X 1 0 X 18154356 9171604 15276219 18371359 22558173 83531711 18154356 9171604 15276219 18371359 22558173 83531711 13395377 70136334 194871 116788 75451 61519 60003 508632 27645 122124 79080 5082 2151 236082 84276425 5364099 0.83220 0.82950 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2011 AMOUNT: $ 1,770. 2012 AMOUNT: $ 10,140. 2013 AMOUNT: $ 450. 2014 AMOUNT: $ 343. 2015 AMOUNT: $ 6. SPEAKER FEE - 2011 AMOUNT: $ 25,875. 2012 AMOUNT: $ 33,980. 2013 AMOUNT: $ 42,658. 2015 AMOUNT: $ 2,145. FOREIGN CURRENCY GAIN/LOSS - 2012 AMOUNT: $ 78,004. 2013 AMOUNT: $ 35,972. LOAN CLOSING FEES - 2014 AMOUNT: $ 4,739. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 321880 236915 84965 1001119 598670 402449 487414 PROGRAM RELATED EQUITY INVESTMENTS - S.ASIA 21787640 C PROGRAM RELATED EQUITY INVESTMENTS - SUB-SAHARAN AFRICA 11138101 C PROGRAM RELATED EQUITY INVESTMENTS - USA 5034719 C PROGRAM RELATED DEBT INVESTMENTS - S.ASIA 1570827 C PROGRAM RELATED DEBT INVESTMENTS - SUB-SAHARAN AFRICA 4109607 C PROGRAM RELATED DEBT INVESTMENTS - USA 2913191 C PROGRAM RELATED DEBT INVESTMENTS - LATIN AMERICA 275694 C 46829779 X 25254024 3076682 -1432950 1643732 23610292 18228 18228 23628520 18782178 3331820 324851 3656671 15125507 2159991 2159991 17285498 PART X, LINE 2: ACUMEN RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY WHEN THEY ARE MORE THAN LIKELY THAN NOT OF BEING SUSTAINED. MANAGEMENT HAS DETERMINED THAT ACUMEN HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION. ACUMEN IS NO LONGER SUBJECT TO AUDITS BY THE UNITED STATES TAXING JURISDICTIONS FOR PERIODS PRIOR TO DECEMBER 31, 2012. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF CHARITABLE REMAINDER TRUST -16,598. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND INDIA 945,427. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND INDIA TRUST 133,461. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND PAKISTAN 1,432,547. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN CAPITAL MARKETS I LP -1,049. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND CANADA 195,129. ELIMINATING/CONSOLIDATING ENTRIES PER AUDIT -1,961,876. PROVISION FOR PORTFOLIO LOSSES RECLASSIFICATION -2,159,991. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF FIXED ASSETS 18,228. PART XII, LINE 2D - OTHER ADJUSTMENTS: RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND INDIA 997,634. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND INDIA TRUST 234,016. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND PAKISTAN 820,381. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN CAPITAL MARKETS I LP 91,800. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND CANADA 12. ELIMINATING/CONSOLIDATING ENTRIES PER AUDIT -1,924,789. RELATED PARTY FOREIGN EXCHANGE LOSS INCLUDED IN AUDIT 105,797. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR PORTFOLIO LOSSES RECLASSIFICATION 2,159,991. 1 SOUTH ASIA 2 24 PROGRAM SERVICE PORTFOLIO MANAGEMENT AND FELLOWS PROGRAM 913915 SUB-SAHARAN AFRICA 2 14 PROGRAM SERVICE PORTFOLIO MANAGEMENT AND FELLOWS PROGRAM 1822273 SOUTH AMERICA 2 4 PROGRAM SERVICE PORTFOLIO MANAGEMENT 358000 SOUTH ASIA GRANT MAKING 1022874 SUB-SAHARAN AFRICA GRANT MAKING 215850 SOUTH ASIA PROGRAM RELATED INVESTMENTS 23358467 SUB-SAHARAN AFRICA PROGRAM RELATED INVESTMENTS 15247708 SOUTH AMERICA PROGRAM RELATED INVESTMENTS 275694 EUROPE 1 7 PROGRAM SERVICES AND FUND RAISING - SALARY EXPENSE IMPACT, TALENT, & FUNDRAISING 1004490 6 42 1 7 7 49 43214781 1004490 44219271 SOUTH ASIA OPERATING SUPPORT TO PAKISTAN SUBSIDIARY ENTITY AND TECHNICAL ASSISTANCE GRANTS 1022874 WIRE TRANSFER SUB-SAHARAN AFRICA TECHNICAL ASSISTANCE GRANTS 215850 WIRE TRANSFER 4 6 1 0 1 0 0 0 PART I, LINE 2: PROGRAM-RELATED GRANTS: THE ORGANIZATION MAKES LARGE GRANTS TO ITS RELATED ENTITIES TO FUND THEIR OPERATIONS, THE ACTIVITIES OF WHICH ARE MANAGED BY THE ORGANIZATION. ACUMEN FUND, INC. MONITORS THE ACTIVITY OF ITS RELATED ENTITIES BY ANALYZING EXPENDITURES AND COMPARING ACTUAL PERFORMANCE TO BUDGETED AMOUNTS, AND BY MAINTAINING DIRECT OVERSIGHT OF THE ACTIVITIES CONDUCTED AND EXPENDITURES INCURRED. OUR AFFILIATES IN PAKISTAN AND INDIA HAVE INDEPENDENT AUDITS. IN ADDITION TO THE AUDIT, OUR CENTRAL OFFICE FINANCE DEPT IN NEW YORK HAS OVERSIGHT OF THE COUNTRY OFFICES' SPENDING. INVESTMENTS IN THIRD PARTIES ARE PRIMARILY DEBT OR EQUITY INVESTMENTS. RELATIVELY LITTLE IS AN OUTRIGHT GRANT FOR USE BY THE THIRD PARTY. FOR ANY PROGRAM RELATED INVESTMENTS, THE ORGANIZATION REQUIRES REGULAR SOCIAL IMPACT, FINANCIAL AND OPERATIONAL REPORTING, TYPICALLY MAINTAINS A BOARD SEAT ON THE INVESTEE COMPANY AND CONDUCTS AT LEAST ANNUAL REVIEWS OF THE PROGRESS OF THE PROGRAM. FOR ANY GRANTS TO THIRD PARTIES, A GRANT AGREEMENT IS DRAFTED OUTLINING THE SPECIFIC PURPOSE OF THE GRANT AND TERMS AND CONDITIONS FOR THE USE OF GRANT MONEY. GRANT FUNDS ARE DISBURSED ONLY AFTER THE GRANTEES SIGN THE GRANT AGREEMENT. DEPENDING UPON THE AMOUNT AND TERM OF GRANT, THE GRANTEES ARE REQUIRED TO MAINTAIN DETAILED RECORDS OF THE USE OF THE GRANT AND PROVIDE PERIODIC REPORTS TO ACUMEN FUND. THE PROGRAM STAFF WILL REVIEW THE GRANTEE REPORTS TO ENSURE COMPLIANCE. THE GRANTEES ARE REQUIRED TO RETAIN THE BOOKS AND RECORDS WITH RESPECT TO THE USE OF THE GRANT FUNDS FOR FOUR YEARS AFTER THE GRANT PERIOD OR SOME OTHER PERIOD AS REQUIRED BY THE GRANT AGREEMENT AND ACUMEN FUND RETAINS THE RIGHT TO REVIEW THEIR BOOKS AND RECORDS RELATING TO THE GRANT IF IT DEEMS NECESSARY. ACUMEN FUND PROGRAM STAFF DILIGENTLY SCREEN THE PROSPECTIVE GRANTEES' TRACK RECORD AND REPUTATION BEFORE AWARDING ANY GRANT. THROUGHOUT THE GRANT TERM, THE PROGRAM STAFF INTERACTS WITH THE GRANTEE ORGANIZATION TO UNDERSTAND THE PROGRESS THE ORGANIZATION IS MAKING BY USE OF THE GRANT FUNDS. THEY ALSO REVIEW ANY PERIODIC REPORTS SUBMITTED BY THE GRANTEE AS WELL AS THE ANNUAL REPORT OF THE ORGANIZATION (IF APPLICABLE) TO ENSURE PROPER UTILIZATION OF GRANT FUNDS BY THE GRANTEE. GRANT AGREEMENTS OFTEN REQUIRE THE RIGHT TO INSPECT AND AUDIT THE RECORDS OF THE GRANTEE REGARDING PROPER USE OF FUND. THE GRANT AGREEMENT SIGNED BY THE GRANTEE TYPICALLY STATES THAT ALL OR ANY PORTION OF GRANT FUNDS USED IN A MANNER OR PURPOSE OTHER THAN THOSE DESCRIBED IN THE GRANT AGREEMENT MUST BE RETURNED TO ACUMEN FUND. PART I, LINE 3: PROGRAM-RELATED INVESTMENTS: THE ORGANIZATION HAS A COMPLEX FINANCIAL STRUCTURE THAT IS NOT EASILY SHOWN IN THE FORM 990. TO BETTER UNDERSTAND THE INFORMATION BEING PROVIDED, THE READER SHOULD APPROACH THE FINANCIAL STATEMENTS WITH TWO KEY PIECES OF INFORMATION IN MIND. FIRST, ACUMEN IS LIKE A TRADITIONAL NON-PROFIT IN THAT IT RECEIVES CONTRIBUTION REVENUE AND HAS ONGOING OPERATING EXPENSES FOR BOTH PROGRAM WORK AND ADMINISTRATIVE COSTS EACH YEAR. SECONDLY, AND UNLIKE ALMOST ALL OTHER CHARITIES, ACUMEN INVESTS A SUBSTANTIAL PORTION OF ITS ASSETS IN ENTREPRENEURIAL ORGANIZATIONS OPERATING IN DEVELOPING COUNTRIES. THIS WOULD INCLUDE SUPPORTING CONTRIBUTIONS TO RELATED ENTITIES AND PROGRAM-RELATED INVESTMENTS TO THIRD PARTIES AS PART OF ACUMEN FUND'S CHARITABLE WORK. IN SUM THESE ACTIVITIES ARE SHOWN IN PARTS I AND II OF SCHEDULE F. THEY ARE ALSO INCLUDED ON FORM 990 PART X LINE 13 WHICH SHOWS THE ORGANIZATION'S TOTAL CUMULATIVE OUTSTANDING BALANCE OF PROGRAM-RELATED INVESTMENTS. ACUMEN PUTS ITS RESOURCES INTO THESE INVESTEE ORGANIZATIONS AS PROGRAMMATIC INVESTMENTS AND NURTURES THEM UNTIL THEY THRIVE (OR FAIL), PROVIDING MULTIPLE SPIN-OFF BENEFITS TO CUSTOMERS SERVED - TYPICALLY THE POOREST POPULATIONS WHO LIVE ON LESS THAN A FEW DOLLARS PER DAY. THE ACCOUNTING METHOD USED TO ACCOUNT FOR EXPENDITURES IS THE ACCRUAL METHOD. X X X X 0 0 0 0 0 0 0 1 0 JACQUELINE NOVOGRATZ CEO & DIRECTOR 285264 0 36338 0 0 0 7950 0 15785 0 345337 0 0 0 SACHINDRA RUDRA CHIEF INVESTMENT OFFICER 223851 0 27859 0 0 0 7551 0 7751 0 267012 0 0 0 CARLYLE JONES CHIEF OPERATING OFFICER 220492 0 27859 0 0 0 7451 0 14385 0 270187 0 0 0 ALEXANDER DICHTER CHIEF INNOVATION OFFICER 203842 0 26125 0 0 0 6899 0 25989 0 262855 0 0 0 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 157800 0 25080 0 0 0 5486 0 372 0 188738 0 0 0 LYNN ROLAND GENERAL COUNSEL 170303 0 21197 0 0 0 5745 0 372 0 197617 0 0 0 SABRINA N DUPRE GLOBAL HEAD OF BRAND STRATEGY & COMM 173085 0 18203 0 0 0 5739 0 15657 0 212684 0 0 0 YASMINA ZAIDMAN DIRECTOR OF STRATEGIC PART 148121 0 23541 0 0 0 5150 0 372 0 177184 0 0 0 SHUAIB SIDDIQUI DIRECTOR OF PORTFOLIO 151562 0 17680 0 0 0 5077 0 10344 0 184663 0 0 0 CATHERINE NANDA DIRECTOR OF GLOBAL EXPANSION 146677 0 21600 0 0 0 5048 0 22378 0 195703 0 0 0 PART I, LINE 7 ACUMEN OFFERS A DISCRETIONARY PERFORMANCE-BASED BONUS FOR ITS EMPLOYEES WITH GUIDELINES SET BY THE MANAGEMENT COMMITTEE AND AGREED BY THE BOARD. BONUSES ARE REFLECTIVE OF ORGANIZATIONAL AND INDIVIDUAL PERFORMANCE WHICH PROVIDES COLLECTIVE ACCOUNTABILITY (INCREASING BY LEVEL), FOSTERS INCREASED COLLABORATION AND PROBLEM-SOLVING. THE ORGANIZATIONAL COMPONENT OF THE BONUS IS RECOMMENDED BY THE MANAGEMENT COMMITTEE TO THE COMPENSATION COMMITTEE, BASED ON ACHIEVEMENT OF ANNUAL GOALS, (WHICH ARE DETERMINED AT THE END OF THE PRIOR YEAR AND APPROVED BY THE BOARD), THEN REVIEWED BY THE COMPENSATION COMMITTEE AND ULTIMATELY APPROVED BY THE BOARD. EACH INDIVIDUAL'S SUPERVISOR DETERMINES THE INDIVIDUAL RATING BASED ON PERFORMANCE AGAINST INDIVIDUAL GOALS, AND THE DIRECTOR OF TALENT AND RESPECTIVE MANAGEMENT COMMITTEE MEMBER APPROVES THE RATINGS. BONUSES WERE TREATED AS TAXABLE COMPENSATION TO THE RECIPIENTS. X 9 480175 FMV 0 0 1 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTORS IN PART 1, COLUMN (B) OF SCHEDULE M. FORM 990, PART VI, SECTION A, LINE 2 JACQUELINE NOVOGRATZ AND MICHAEL E. NOVOGRATZ HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 3 BEGINNING IN 2004, THE ORGANIZATION BEGAN USING ADP TOTALSOURCE, A PROFESSIONAL EMPLOYER ORGANIZATION ("PEO"). AS A PROFESSIONAL EMPLOYER ORGANIZATION, TOTALSOURCE PROVIDES PROFESSIONAL EMPLOYER SERVICES TO ACUMEN FUND, INC. (ACUMEN). IN THE PEO RELATIONSHIP TOTALSOURCE AND ACUMEN SHARE CERTAIN RESPONSIBILITIES AND ALLOCATE OTHER EMPLOYER RESPONSIBILITIES BETWEEN EACH OTHER. ACUMEN REMAINS AN EMPLOYER OF THE WORKSITE EMPLOYEES AND TOTALSOURCE IS A CO-EMPLOYER OF ACUMEN'S EMPLOYEES. ACUMEN HAS: DIRECTION AND CONTROL OVER EMPLOYEES AS IS NECESSARY TO CONDUCT ITS BUSINESS, DISCHARGE AND FIDUCIARY RESPONSIBILITY IT MAY HAVE, OR COMPLY WITH ANY APPLICABLE LICENSURE, REGULATORY OR STATUTORY REQUIREMENT OF ACUMEN. CONTROL OVER THE DAY TO DAY JOB DUTIES OF EMPLOYEES AND OVER THE JOB SITES AT WHICH, OR FROM WHICH EMPLOYEES PERFORM SERVICES TOTALSOURCE RESERVES A RIGHT OF DIRECTION AND CONTROL OVER EMPLOYEES AS IS NECESSARY TO FULFILL ITS OBLIGATIONS AND PROVIDE ITS SERVICES UNDER AN AGREEMENT BETWEEN ACUMEN AND TOTALSOURCE. TOTALSOURCE AND ACUMEN HAVE A RIGHT TO HIRE, DISCIPLINE, AND TERMINATE EMPLOYEES AS TO EACH ONE'S EMPLOYMENT RELATIONSHIP WITH EMPLOYEES. THE TOTAL AMOUNT OF SERVICE FEE PAID TO ADP TOTALSOURCE FOR THE TAX YEAR ENDING 12/31/15 IS $154,681. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S FINANCE STAFF MEMBERS PREPARE THE FORM 990 IN CONJUNCTION WITH THE ORGANIZATION'S EXTERNAL INDEPENDENT ACCOUNTANTS. SEVERAL SENIOR MANAGEMENT AND INTERNAL LEGAL STAFF MEMBERS REVIEW THE INFORMATION AND A DRAFT FORM 990 IS CIRCULATED ELECTRONICALLY BY E-MAIL TO THE FULL BOARD OF DIRECTORS. AFTER SOLICITING THE BOARD'S FEEDBACK AND COMMENTS THE FORM 990 IS E-FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY WHICH IS ANNUALLY MONITORED REQUIRING ALL OF THE ORGANIZATION'S OR ITS AFFILIATE'S BOARD MEMBERS, MEMBERS OF THE INVESTMENT COMMITTEE, OFFICERS, KEY EMPLOYEES, INDIVIDUALS IN THOSE ROLES IN THE PRIOR 5 YEARS AND EACH OF THEIR RESPECTIVE RELATIVES TO DISCLOSE ANY POSSIBLE CONFLICT OF INTEREST TO THE GENERAL COUNSEL, FOR REVIEW BY THE AUDIT & FINANCE COMMITTEE OF THE BOARD. THE ORGANIZATION REQUIRES THAT ALL SUCH INDIVIDUALS PROMPTLY AND FULLY DISCLOSE ALL MATERIAL FACTS OF ANY ACTUAL OR POTENTIAL CONFLICT OF INTEREST THAT MAY EXIST AT THE TIME OF HIRE OR APPOINTMENT, AS APPLICABLE, AND AS THEY MAY ARISE WHILE THE INDIVIDUAL IS SERVING OR EMPLOYED IN SUCH CAPACITY BY THE ORGANIZATION. SUCH DISCLOSURES INVOLVING A TRANSACTION OR ARRANGEMENT ARE REVIEWED BY THE GENERAL COUNSEL, WITH OVERSIGHT BY THE CHIEF OPERATING OFFICER, AND WHERE APPROPRIATE REFERRED TO THE AUDIT & FINANCE COMMITTEE TO DETERMINE APPROPRIATE ACTION TO BE TAKEN TO ADDRESS THE CONFLICT OF INTEREST WITH RESPECT TO THE TRANSACTION OR ARRANGEMENT. THE INDIVIDUAL WITH THE CONFLICT OF INTEREST IS REQUIRED TO DISCLOSE THE CONFLICT AND IN CERTAIN CIRCUMSTANCES RECUSE HIM/HERSELF FROM THE DISCUSSION AND NOT BE PRESENT DURING ANY DELIBERATION OR VOTE ON MATTERS WHERE HE/SHE HAS AN ACTUAL CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION ANNUALLY REVIEWS COMPARABLE COMPENSATION DATA FOR ITS NON-PROFIT PEER GROUP AND SIMILAR ORGANIZATIONS IN THE FOR-PROFIT PRIVATE SECTOR. IT SEEKS TO BENCHMARK AGAINST THESE COMPARATIVE FIGURES WHEN SETTING COMPENSATION FOR ITS CHIEF EXECUTIVE OFFICER. THE ORGANIZATION WILL ALSO CONSIDER JOB PERFORMANCE AND ALTERNATIVE EMPLOYMENT OFFERS WHEN EVALUATING CEO COMPENSATION. THE COMPENSATION COMMITTEE RECOMMENDS AND THEN THE BOARD OF DIRECTORS DISCUSSES AND APPROVES, IN EXECUTIVE SESSION, THE COMPENSATION INFORMATION AND DETERMINES THE CHIEF EXECUTIVE OFFICER'S SALARY. THE COMPENSATION COMMITTEE IS COMPRISED SOLELY OF BOARD MEMBERS WHO DO NOT HAVE A CONFLICT OF INTEREST IN DETERMINING THE SALARY OF THE CEO. ANY BOARD MEMBERS WHO ARE CONFLICTED IN DETERMINING THE CEO'S COMPENSATION ARE RECUSED FROM THE PORTION OF THE MEETING WHERE COMPENSATION IS DISCUSSED AND DETERMINED. MINUTES DOCUMENTING BOTH THE ACTIVITIES AND ACTIONS OF THE COMPENSATION COMMITTEE AND THE BOARD OF DIRECTORS, INCLUDING THE MATERIALS THEY USED IN EVALUATING COMPENSATION, ARE TAKEN AND RETAINED CONTEMPORANEOUSLY. THIS PROCESS WAS LAST UNDERTAKEN FOR 2015 BONUS. THE CEO, IN CONSULTATION WITH THE PRESIDENT AND GLOBAL TALENT MANAGER, DETERMINES SALARIES OF THE OTHER MEMBERS OF SENIOR MANAGEMENT OF THE ORGANIZATION USING THE SAME PROCESSES AS DESCRIBED ABOVE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION POSTS ITS FORM 990 AND AUDITED FINANCIAL STATEMENTS ON ITS PUBLICLY ACCESSIBLE WEBSITE WWW.ACUMEN.ORG. CURRENT YEAR INFORMATION IS POSTED AS IT BECOMES AVAILABLE AND TWO PRIOR YEAR'S RESULTS ARE MAINTAINED ONLINE. THE ORGANIZATION ALSO PROVIDES ITS INFORMATION TO CHARITY NAVIGATOR AND GUIDESTAR.ORG. PUBLIC INFORMATION ABOUT ACUMEN FUND IS AVAILABLE ON CHARITY BUREAU SECTION OF THE NEW YORK STATE'S ATTORNEY GENERAL'S WEBSITE, AS WELL AS UPON REQUEST. THE FORM 1023 IS MADE AVAILABLE UPON REQUEST. THE GOVERNING DOCUMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC UNLESS SPECIFICALLY REQUESTED AND A SUMMARY OF THE CONFLICT OF INTEREST POLICY IS AVAILABLE ON THE FORM 990. FORM 990, PART IX, LINE 11G PROGRAM CONSULTANTS: PROGRAM SERVICE EXPENSES 973,585. MANAGEMENT AND GENERAL EXPENSES 36,523. FUNDRAISING EXPENSES 16,921. TOTAL EXPENSES 1,027,029. WEB MEDIA & DESIGN CONSULTANTS: PROGRAM SERVICE EXPENSES 299,254. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 843. TOTAL EXPENSES 300,097. INDIA PROGRAM SERVICE FEE: PROGRAM SERVICE EXPENSES 913,915. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 913,915. CONFERENCE AND MEMBERSHIP FEES: PROGRAM SERVICE EXPENSES 136,407. MANAGEMENT AND GENERAL EXPENSES 957. FUNDRAISING EXPENSES 13,914. TOTAL EXPENSES 151,278. RECRUITING FEES: PROGRAM SERVICE EXPENSES 55,541. MANAGEMENT AND GENERAL EXPENSES 39,913. FUNDRAISING EXPENSES 12,836. TOTAL EXPENSES 108,290. TRAINING FEES: PROGRAM SERVICE EXPENSES 128,924. MANAGEMENT AND GENERAL EXPENSES 39,302. FUNDRAISING EXPENSES 5,600. TOTAL EXPENSES 173,826. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF CHARITABLE REMAINDER TRUST -16,598. LOSS ON DISPOSAL OF FIXED ASSETS -18,228. FORM 990, PART XII, LINE 2C: ACUMEN FUND, INC. HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THIS PROCESS DID NOT CHANGE FROM 2014. IN 2014, THE AUDIT AND FINANCE COMMITTEE AMENDED ITS CHARTER TO PROVIDE FOR A MORE RESTRICTED DEFINITION OF INDEPENDENT DIRECTOR AND THAT ONLY INDEPENDENT DIRECTORS CAN PARTICIPATE IN AND VOTE ON COMMITTEE MATTERS (CAN THE COO AND CFO MAY NOT BE PRESENT DURING CERTAIN DELIBERATIONS), CONSISTENT WITH REQUIREMENT OF THE NEW YORK NONPROFIT REVITALIZATION ACTION OF 2013. 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