2015-08-17T11:20:45-05:00 2014-12-31 271728945 O'CONNOR DAVIES LLP 665 FIFTH AVENUE NEW YORK NY 10022 990 2014-01-01 134166228 ACUMEN FUND INC ACUM 2125668821 76 NINTH AVENUE NO 315 NEW YORK NY 10011 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 6467473687 2015-08-17 1 GARRETT M HIGGINS P00543209 2122862600 2015-08-17 2014 2016-04-25 22:37:26Z JACQUELINE NOVOGRATZ 76 NINTH AVENUE NO 315 NEW YORK NY 10011 19573555 0 X WWW.ACUMEN.ORG X 2001 NY OUR MISSION IS TO CREATE A WORLD BEYOND POVERTY BY INVESTING IN SOCIAL ENTERPRISES, EMERGING LEADERS,AND BREAKTHROUGH 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. 15 14 78 17 0 0 15276219 18371359 1321335 743453 67410 -393477 87421 10595 16752385 18731930 1006749 975304 0 0 6081615 7452108 0 0 1814519 8367258 8444137 15455622 16871549 1296763 1860381 94568107 96563935 761160 1246537 93806947 95317398 X ACUMEN FUND IS WORKING TO CREATE A WORLD BEYOND POVERTY BY INVESTING IN SOCIAL ENTERPRISES, EMERGING LEADERS AND BREAKTHROUGH 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 MORE THAN $88 MILLION IN ENTERPRISES THAT PROVIDE PRODUCTS AND SERVICES THAT INCLUDE AFFORDABLE MATERNAL HEALTHCARE SERVICES, ASSET-BACKED FINANCING FOR SMALLHOLDER FARMERS, AND SKILLS-TRAINING FOR EMPLOYMENT. WE ARE BUILDING A GLOBAL COMMUNITY OF EMERGING LEADERS THAT BELIEVE IN CREATING A MORE INCLUSIVE WORLD THROUGH THE TOOLS OF BOTH BUSINESS AND PHILANTHROPY. IN ADDITION, WE ARE SHARING OUR LESSONS AND SPREADING INNOVATIVE IDEAS TO CHANGE THE WAY THE WORLD TACKLES POVERTY. 0 0 9163936 863444 293970 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. ACUMEN HAS CUMULATIVELY INVESTED $88 MILLION IN 82 BUSINESSES SERVING THE POOR. POST-INVESTMENT MANAGEMENT HAS CONTINUED TO BE A KEY PRIORITY FOR ACUMEN IN 2014. 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. ACUMEN PARTNERED WITH UNILEVER AND THE CLINTON GIUSTRA ENTERPRISE PARTNERSHIP (CGEP) TO LAUNCH THE ENHANCING LIVELIHOODS INVESTMENT INITIATIVE, TO IMPROVE THE LIVELIHOODS OF AS MANY AS 300,000 SMALLHOLDER FARMERS AND THEIR COMMUNITIES IN AFRICA, AND SOUTH ASIA. IN ADDITION, ACUMEN HOSTED ITS SECOND TECHNICAL ASSISTANCE INITIATIVE SUMMIT IN NAIROBI IN PARTNERSHIP WITH DOW AND BARCLAYS TO PROVIDE FINANCIAL AND TECHNICAL SUPPORT TO HELP SCALE FIVE OF OUR INVESTEE COMPANIES. 2560608 111860 IMPACT AND COMMUNICATIONS: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 THE INSIGHTS FROM OUR PORTFOLIO TO STRENGTHEN APPROACHES THAT ADDRESS POVERTY THROUGH ENTREPRENEURIAL SOLUTIONS. ACUMEN'S IMPACT TEAM CONTINUES TO ADVANCE THE ORGANIZATION'S ROLE IN LEADING AND MEASURING IMPACT IN THE IMPACT-INVESTING INDUSTRY. IN 2014, THE IMPACT TEAM REFINED THE FRAMEWORK WE HAD DEVELOPED IN 2013 TO MEASURE AND ASSESS IMPACT AT ACUMEN. THE FRAMEWORK OUTLINES THREE ASPECTS OF OUR IMPACT RATIONALE INCLUDING: BREADTH, BROADLY SYNONYMOUS WITH SCALE - HOW MANY PEOPLE ARE OUR INVESTEES' PRODUCTS AND SERVICES REACHING? DEPTH: WHAT IS OUR THEORY OF CHANGE AND HOW DEEPLY ARE OUR COMPANIES IMPACTING A HOUSEHOLD'S WELL-BEING? POVERTY FOCUS: WHAT IS THE PROFILE OF OUR INVESTEES' TYPICAL CUSTOMER? ARE THEY REACHING THOSE MOST IN NEED? WHAT IS THEIR AFFORDABILITY ASSESSMENT?IN ADDITION, THE IMPACT TEAM HAS ALSO BEEN WORKING TO PILOT NEW LEANER METHODS OF DATA COLLECTION FROM OUR COMPANIES CALLED THE "LEAN DATA INITIATIVE". THIS APPROACH USES THE GRAMEEN FOUNDATION'S PROGRESS OUT OF POVERTY INDEX, AN EASY-TO-ADMINISTER 10 QUESTION TOOL THAT DETERMINES POVERTY LIKELIHOODS TO ASSESS JUST HOW POOR CUSTOMERS OF ACUMEN'S INVESTEE COMPANIES ARE, WITHOUT ADDING THE ADMINISTRATIVE BURDEN TO OFTEN RESOURCE-CONSTRAINED SOCIAL ENTERPRISES. ACUMEN ALSO PUBLISHED A REPORT TITLED GROWING PROSPERITY IN THE LAST QUARTER OF 2014. GROWING PROSPERITY WAS WRITTEN IN PARTNERSHIP WITH BAIN & COMPANY AND PRODUCED WITH SUPPORT FROM THE BILL AND MELINDA GATES FOUNDATION. IT UNVEILS HOW SOCIAL ENTERPRISES CAN FIND NEW, EFFECTIVE WAYS TO PROFITABLY SERVE THESE HARD-TO-REACH CUSTOMERS AT SCALE, SPECIFICALLY FOCUSING ON CASE STUDIES FROM THE AGRICULTURE SECTOR. IN 2014 WE CONTINUED TO COMMUNICATE ACUMEN'S CORE IDEAS THROUGH MAINSTREAM MEDIA, PRESENTATIONS AT LEADING CONFERENCES, WIDELY DISSEMINATED ARTICLES AND WORKSHOPS HELD GLOBALLY COVERING ISSUES SUCH AS LEADERSHIP AND THE TYPES AND STAGES OF CAPITAL NEEDED TO BUILD SOCIAL ENTERPRISES THAT SERVE THE POOR. ACUMEN'S WORK WAS FEATURED IN TOP-TIER U.S. AND GLOBAL OUTLETS INCLUDING THE FINANCIAL TIMES, FORBES, THE NEW YORK TIMES, THE GUARDIAN, AND VARIOUS PUBLICATIONS IN PAKISTAN, AFRICA, INDIA AND EUROPE. 1238530 FELLOWS AND LEADERSHIP PROGRAMS: AT THE END OF Q4 2014, 183 FELLOWS WERE A PART OF ACUMEN'S GLOBAL AND REGIONAL FELLOWS PROGRAMS AND GROWTH CONTINUED WITH THE LAUNCH OF OUR PAKISTAN AND INDIA FELLOWS PROGRAM AS WELL AS THE RAPID EXPANSION OF THE +ACUMEN ONLINE LEADERSHIP WORK.ACUMEN RECEIVED MORE THAN 700 APPLICATIONS FROM 110 COUNTRIES FOR OUR NINTH CLASS OF 2015 GLOBAL FELLOWS. OUR CLASS OF 2015 HAS FIVE FELLOWS FROM NORTH AMERICA; ONE FROM SOUTH AMERICA, TWO FROM AFRICA, ASIA, AND EUROPE EACH; AND ONE FROM AUSTRALIA. THE CLASSES OF EAST AFRICAN, PAKISTANI AND INDIAN REGIONAL FELLOWS ARE EQUALLY DIVERSE AND INTERESTING, RANGING FROM A VARIETY OF DIFFERENT FIELDS - INCLUDING CORPORATIONS, SOCIAL ENTERPRISES, NGOS, AND GOVERNMENT. AS OF Q4 2014, THE +ACUMEN CHAPTER NETWORK HAS EXPANDED TO 25 CHAPTERS AND +ACUMEN'S ONLINE COURSES HAS GROWN TO MORE THAN 122,000 SIGN-UPS. THIS PAST YEAR, ACUMEN LAUNCHED SEVERAL NEW FREE ONLINE COURSES IN PARTNERSHIP WITH ORGANIZATIONS LIKE ACCION INTERNATIONAL, INDIVIDUALS LIKE ERIK SIMANIS AND BAIN & COMPANY TO HELP SOCIAL ENTREPRENEURS AND INDIVIDUALS INTERESTED IN THE SECTOR BUILD THEIR SKILLS AND KNOWLEDGE. 12963074 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 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 30 0 78 1 0 1 GH IN KE PK CO CA 0 0 0 0 0 0 0 0 X 15 14 1 1 1 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 76 NINTH AVENUE SUITE 315 NEW YORK NY 10011 JACQUELINE NOVOGRATZ CEO & DIRECTOR 40.00 1.00 X X 302727 0 25186 ROBERT H NIEHAUS BOARD CHAIR 1.00 X X 0 0 0 ALI J SIDDIQUI DIRECTOR 1.00 X 0 0 0 ANDREA SOROS COLOMBEL DIRECTOR THROUGH JULY 2014 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 1.00 X 0 0 0 MICHAEL E NOVOGRATZ DIRECTOR 1.00 X 0 0 0 NAVEED RIAZ DIRECTOR 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 CARLYLE JONES CHIEF OPERATING OFFICER 40.00 1.00 X 236885 0 16689 ALEXANDER DICHTER CHIEF INNOVATION OFFICER 40.00 1.00 X 200643 0 29842 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 40.00 X 150388 0 4884 SACHINDRA RUDRA CHIEF INVESTMENT OFFICER 40.00 1.00 X 133517 0 7907 LYNN ROLAND GENERAL COUNSEL 40.00 1.00 X 175022 0 5623 MARIBETH CARROLL DIRECTOR OF TALENT 40.00 X 165138 0 12610 YASMINA ZAIDMAN DIRECTOR OF STRATEGIC PARTNERSHIPS 40.00 X 163246 0 5269 SHUAIB SIDDIQUI DIRECTOR OF PORTFOLIO 40.00 X 154797 0 12788 BATOOL HASSAN DIRECTOR OF FELLOWS 40.00 X 135892 0 13118 1818255 0 133916 13 0 1 0 CAMBRIDGE LEADERSHIP ASSOCIATES 259 WEST 30TH STREET 16TH FLOOR NEW YORK NY 10001 LEADERSHIP TRAINING 155677 O'CONNOR DAVIES LLP 665 FIFTH AVENUE NEW YORK NY 10022 AUDIT/TAX SERVICES 102400 2 18371359 1741950 18371359 PGM RELATED LOAN INC 900099 482257 482257 PORTFOLIO MGMT FEE 900099 261196 261196 743453 56006 56006 5513 5513 392142 841625 -449483 -449483 -449483 LOAN CLOSING FEES 900099 4739 4739 OTHER INCOME 900099 343 343 5082 18731930 293970 0 66601 X 124995 124995 850309 850309 1108666 680070 212968 215628 5118742 3092211 1075715 950816 81822 44309 24117 13396 689983 372706 238080 79197 452895 276127 89404 87364 127609 58624 68938 47 130286 68954 36146 25186 2808487 2640924 94983 72580 13360 7427 1762 4171 357553 230560 27680 99313 107444 27181 77394 2869 155093 116520 19373 19200 714637 539140 74916 100581 331944 167592 36000 128352 70082 41697 14195 14190 21964 19984 351 1629 PROV FOR PORTFOLIO LOSS 3596364 3596364 CORPORATE TAXES 7380 7380 FOREIGN CURRENCY LOSS 1934 1934 16871549 12963074 2093956 1814519 3394792 53572 41517716 41646098 13085600 16536895 698924 1263102 117325 105951 834513 718170 158842 116343 500959 500959 34702645 35872479 391304 468536 94568107 96563935 761160 1246537 761160 1246537 X 71068330 70062897 22738617 25254501 93806947 95317398 94568107 96563935 X 1860381 -360462 10532 X X 0 1 X 1 0 X 12948757 18154356 9171604 15276219 18371359 73922295 12948757 18154356 9171604 15276219 18371359 73922295 11873925 62048370 156721 194871 116788 75451 61519 605350 38230 27645 122124 79080 5082 272161 74799806 5729018 0.82950 0.87720 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2010 AMOUNT: $ 38,230. 2011 AMOUNT: $ 1,770. 2012 AMOUNT: $ 10,140. 2013 AMOUNT: $ 450. 2014 AMOUNT: $ 343. SPEAKER FEE - 2011 AMOUNT: $ 25,875. 2012 AMOUNT: $ 33,980. 2013 AMOUNT: $ 42,658. 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 223717 223717 0 610796 494453 116343 116343 PROGRAM RELATED EQUITY INVESTMENTS - S.ASIA 15925519 C PROGRAM RELATED EQUITY INVESTMENTS - SUB-SAHARAN AFRICA 9931667 C PROGRAM RELATED EQUITY INVESTMENTS - USA 1050000 C PROGRAM RELATED EQUITY INVESTMENTS - LATIN AMERICA 145012 C PROGRAM RELATED DEBT INVESTMENTS - S.ASIA 3510192 C PROGRAM RELATED DEBT INVESTMENTS - SUB-SAHARAN AFRICA 2782771 C PROGRAM RELATED DEBT INVESTMENTS - USA 1827318 C PROGRAM RELATED DEBT INVESTMENTS - LATIN AMERICA 700000 C 35872479 X 15609128 1455032 -4577834 -3122802 18731930 0 18731930 15563629 1815494 465586 2281080 13282549 3589000 3589000 16871549 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, 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF CHARITABLE REMAINDER TRUST 10,532. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND INDIA 1,342,151. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND PAKISTAN 651,573. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN CAPITAL MARKETS I LP -1,151,393. RELATED PARTY REVENUE INCLUDED PER AUDIT-ACUMEN FUND CANADA 32,739. ELIMINATING/CONSOLIDATING ENTRIES PER AUDIT -1,874,436. PROVISION FOR PORTFOLIO LOSSES RECLASSIFICATION -3,596,364. RECLASS OF FOREIGN TAXES PAID NETTED WITH PORTFOLIO INCOME 7,364. PART XII, LINE 2D - OTHER ADJUSTMENTS: RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND INDIA 1,334,371. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND PAKISTAN 759,941. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN CAPITAL MARKETS I LP 360,103. RELATED PARTY EXPENSES INCLUDED PER AUDIT - ACUMEN FUND CANADA 408. ELIMINATING/CONSOLIDATING ENTRIES PER AUDIT -2,063,618. RELATED PARTY FOREIGN EXCHANGE LOSS INCLUDED IN AUDIT 74,381. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR PORTFOLIO LOSSES RECLASSIFICATION 3,596,364. RECLASS OF FOREIGN TAXES PAID NETTED WITH PORTFOLIO INCOME -7,364. 1 SOUTH ASIA 2 25 PROGRAM SERVICE PORTFOLIO MANAGEMENT AND FELLOWS PROGRAM 1271172 SUB-SAHARAN AFRICA 2 11 PROGRAM SERVICE PORTFOLIO MANAGEMENT AND FELLOWS PROGRAM 1757316 SOUTH AMERICA 1 1 PROGRAM SERVICE PORTFOLIO MANAGEMENT 417042 SOUTH ASIA GRANT MAKING 612250 SOUTH ASIA PROGRAM RELATED INVESTMENTS 19435711 SUB-SAHARAN AFRICA PROGRAM RELATED INVESTMENTS 12714438 SOUTH AMERICA PROGRAM RELATED INVESTMENTS 845012 EUROPE 1 4 FUND RAISING SERVICES 423063 SUB-SAHARAN AFRICA GRANT MAKING 238059 6 41 0 0 6 41 37476004 238059 37714063 SOUTH ASIA OPERATING SUPPORT TO PAKISTAN SUBSIDIARY ENTITY AND TECHNICAL ASSISTANCE GRANT 612250 WIRE TRANSFER SUB-SAHARAN AFRICA TECHNICAL ASSISTANCE GRANT 238059 WIRE TRANSFER 10 2 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, 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 ATTEMPTS TO NURTURE 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. 1 D LIGHT DESIGN 650 5TH STREET SAN FRANCISCO CA 94107 392055997 74995 TECHNICAL ASSISTANCE GRANT ROOT CAPITAL 955 MASSACHUSETTS AVENUE CAMBRIDGE MA 02139 043478123 501(C)(3) 50000 LEAN DATA INITATIVE GRANT 1 1 PART I, LINE 2: THE ORGANIZATION MAKES VERY FEW GRANTS. THOSE GRANTS MADE ARE OCCASIONALLY PASS-THROUGH GRANTS FROM OTHER FUNDING ORGANIZATIONS. IN ALL CASES, THE ORGANIZATION HAS A THOROUGH UNDERSTANDING OF THE WORK BEING UNDERTAKEN AND A COMPLETE FAMILIARIZATION WITH THE GRANTEE UNDERTAKING WORK ON ITS BEHALF. FOLLOW UP MONITORING IS PERFORMED BY VERBAL CHECK-INS, PERIODIC PROGRESS REPORTS AND FINAL WRITTEN GRANT PERFORMANCE REPORTS AT THE CONCLUSION OF THE GRANT PERIOD. X X X X 0 0 0 0 0 0 0 1 0 JACQUELINE NOVOGRATZ CEO & DIRECTOR 290927 0 11800 0 0 0 7800 0 17386 0 327913 0 0 0 CARLYLE JONES CHIEF OPERATING OFFICER 227040 0 9845 0 0 0 7107 0 9582 0 253574 0 0 0 ALEXANDER DICHTER CHIEF INNOVATION OFFICER 192640 0 8003 0 0 0 6019 0 23823 0 230485 0 0 0 AMRITA BHANDARI CHIEF FINANCIAL OFFICER 147200 0 3188 0 0 0 4512 0 372 0 155272 0 0 0 LYNN ROLAND GENERAL COUNSEL 165000 0 10022 0 0 0 5251 0 372 0 180645 0 0 0 MARIBETH CARROLL DIRECTOR OF TALENT 156723 0 8415 0 0 0 4954 0 7656 0 177748 0 0 0 YASMINA ZAIDMAN DIRECTOR OF STRATEGIC PARTNERSHIPS 155000 0 8246 0 0 0 4897 0 372 0 168515 0 0 0 SHUAIB SIDDIQUI DIRECTOR OF PORTFOLIO 148234 0 6563 0 0 0 4644 0 8144 0 167585 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 5 1739950 FMV X USED PHONE 1 2000 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. FORM 990, PART VI, SECTION A, LINE 4 THE AMENDED BY-LAWS WERE ADOPTED BY THE BOARD OF TRUSTEES IN SEPTEMBER 2014. CHANGES MADE TO THE AMENDED BY-LAWS, INCLUDED THE FOLLOWING PRINCIPAL REVISIONS, IN ADDITION TO OTHER SMALLER CHANGES: 1) CLARIFY VOTING, INCLUDING ITEMS FOR ENHANCED VOTING, AND STAGGERED BOARD TERMS 2) ENUMERATE PROCESSES AROUND RESIGNATION, NOTICE AND VOTING, INCLUDING ELECTRONIC ACTIVITY 3) MEMORIALIZE ACTIVITIES AROUND IMPLEMENTATION OF POLICIES, RECORDKEEPING, REPORTING, AND INVESTMENT AND LENDING MATTERS 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 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 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 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 IN 2014. THE CEO, IN CONSULTATION WITH THE DIRECTOR OF TALENT, 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 STATMENTS 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 1,235,488. MANAGEMENT AND GENERAL EXPENSES 87,334. FUNDRAISING EXPENSES 67,983. TOTAL EXPENSES 1,390,805. WEB MEDIA & DESIGN CONSULTANTS: PROGRAM SERVICE EXPENSES 107,296. MANAGEMENT AND GENERAL EXPENSES 6,112. FUNDRAISING EXPENSES 3,674. TOTAL EXPENSES 117,082. VIDEO PROD & EDITING SVCS: PROGRAM SERVICE EXPENSES 26,968. MANAGEMENT AND GENERAL EXPENSES 1,537. FUNDRAISING EXPENSES 923. TOTAL EXPENSES 29,428. INDIA PROGRAM SERVICE FEE: PROGRAM SERVICE EXPENSES 1,271,172. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,271,172. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF CHARITABLE REMAINDER TRUST 10,532. 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 THE PRIOR YEAR. 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