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        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X:</ReturnReference>
        <Explanation>COUNTERPART IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, COUNTERPART QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. THERE WAS NO TAX LIABILITY FOR UNRELATED BUSINESS INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2012. COUNTERPART HAS ADOPTED THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS POLICY, COUNTERPART MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WOULD BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. MANAGEMENT HAS EVALUATED COUNTERPART'S TAX POSITIONS AND HAS CONCLUDED THAT COUNTERPART HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH PROVISIONS OF THIS GUIDELINE. COUNTERPART WOULD BE LIABLE FOR INCOME TAXES IN THE U.S. FEDERAL JURISDICTION. GENERALLY, COUNTERPART IS NO LONGER SUBJECT TO U.S. FEDERAL, STATE AND LOCAL TAX EXAMINATIONS BY TAX AUTHORITIES BEFORE 2008.</Explanation>
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      <GrantsToOrgsOutsideUS>
        <Region>CENTRAL AMERICA AND CARIBBEAN</Region>
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      <GrantsToOrgsOutsideUS>
        <Region>CENTRAL AMERICA AND CARIBBEAN</Region>
        <PurposeOfGrant>INSTITUTIONAL SUPPORT AND CIVIC PARTICIPATION GRANT</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
        <Region>CENTRAL AMERICA AND CARIBBEAN</Region>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
        <Region>CENTRAL AMERICA AND CARIBBEAN</Region>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
        <Region>CENTRAL AMERICA AND CARIBBEAN</Region>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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        <PurposeOfGrant>CIVIL SOCIETY - RESPONSIVE GOVERNANCE PROGRAM</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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        <PurposeOfGrant>CIVIL SOCIETY - RESPONSIVE GOVERNANCE PROGRAM</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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        <PurposeOfGrant>CIVIL SOCIETY - RESPONSIVE GOVERNANCE PROGRAM</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
        <Region>MIDDLE EAST AND NORTH AFRICA</Region>
        <PurposeOfGrant>CIVIL SOCIETY - RESPONSIVE GOVERNANCE PROGRAM</PurposeOfGrant>
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        <MannerOfCashDisbursement>BANK PAYMENT</MannerOfCashDisbursement>
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      <GrantsToOrgsOutsideUS>
        <Region>MIDDLE EAST AND NORTH AFRICA</Region>
        <PurposeOfGrant>CIVIL SOCIETY - RESPONSIVE GOVERNANCE PROGRAM</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
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      <GrantsToOrgsOutsideUS>
        <Region>SUB-SAHARAN AFRICA</Region>
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        <DescriptionOfNonCashAssistance>FOOD COMMODITY</DescriptionOfNonCashAssistance>
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      <GrantsToOrgsOutsideUS>
        <Region>SUB-SAHARAN AFRICA</Region>
        <PurposeOfGrant>FOOD SECURITY AND COMMODITY DISTRIBUTION</PurposeOfGrant>
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      <GrantsToOrgsOutsideUS>
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        <DescriptionOfNonCashAssistance>SLEEPING BAGS, TENTS, TARPS, BEDDING, MATTRESSES, SCHOOL FURNITURE, SCHOOL KITS, GENERATORS, HOUSEHOLD FURNITURE, MEDICAL SUPPLIES, HYGIENE SUPPLIES, NEWBORN KITS, AND WHEELCHAIRS.</DescriptionOfNonCashAssistance>
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        <Identifier>ORGANIZATION MISSION STATEMENT</Identifier>
        <ReturnReference>FORM 990, PART III, LINE 1</ReturnReference>
        <Explanation>FOR NEARLY 50 YEARS, COUNTERPART'S MISSION HAS FOCUSED ON WORKING WITH EFFECTIVE AND EMERGING LOCAL ORGANIZATIONS THAT DELIVER IMPORTANT SERVICES TO THEIR COMMUNITIES TO HELP THEM GROW THEIR CAPABILITIES IN WAYS THAT RESULT IN SIGNIFICANT EXPANSION OF THEIR PROGRAM REACH, IMPACT, AND SUSTAINABILITY. OUR MISSION STATEMENT READS: WE PARTNER WITH LOCAL ORGANIZATIONS - FORMAL AND INFORMAL - TO BUILD INCLUSIVE, SUSTAINABLE COMMUNITIES IN WHICH THEIR PEOPLE THRIVE. AROUND THE WORLD, WE ARE CURRENTLY PARTNERING WITH 2,600 LOCAL ORGANIZATIONS OF ALL TYPES THAT HAVE A SIMILAR VISION OF STRONG, VIBRANT COMMUNITIES. IN 2012, COUNTERPART'S PROGRAMS IN GOVERNMENT AND CIVIL SOCIETY STRENGTHENING; NUTRITION AND HEALTH; HUMANITARIAN ASSISTANCE; AND LIVELIHOOD, ENVIRONMENTAL SUSTAINABILITY AND ECONOMIC DEVELOPMENT REACHED NEARLY 3.4 MILLION BENEFICIARIES THROUGH 32 ACTIVE PROJECTS IN 23 COUNTRIES. PROGRAM ACCOMPLISHMENTS IN 2012 INCLUDE (1) GOVERNMENT AND CIVIL SOCIETY STRENGTHENING: DELIVERY OF FAIR AND EQUITABLE CITIZEN SERVICES REQUIRES BOTH GOVERNMENT RESPONSIVENESS AND ACCOUNTABILITY, AS WELL AS MOTIVATED CIVIL SOCIETY ORGANIZATIONS WITH THE KNOW-HOW TO MOBILIZE CITIZENS AND EFFECTIVELY ENGAGE WITH GOVERNMENT TO PROMOTE AND SUSTAIN PROGRESS. COUNTERPART'S WORK WITH YEMEN'S CIVIL SOCIETY ORGANIZATIONS, INCLUDING A WORKSHOP COMPRISED OF 100 OFFICIALS, ACTIVISTS AND JOURNALISTS, RESULTED IN THEIR ENDORSEMENT OF THE NEW RIGHT TO INFORMATION LAW. THE CENTRE FOR LAW AND DEMOCRACY GAVE THE NEW LAW THE HIGHEST SCORE OF ANY MIDDLE EASTERN COUNTRY AND TIED FOR 17TH PLACE IN THE WORLD. COUNTERPART BROUGHT TOGETHER 900 ACTIVISTS, CIVIC LEADERS AND HIGH RANKING OFFICIALS FOR THE NATIONAL WOMEN'S CONFERENCE TO ADVANCE A COHESIVE WOMEN'S PLATFORM DURING YEMEN'S TRANSITION. COUNTERPART ALSO TRAINED NEARLY 500 GOVERNMENT EMPLOYEES AND CIVIL SOCIETY REPRESENTATIVES ON ANTI-CORRUPTION, CIVIL SOCIETY ENGAGEMENT, AND FINANCIAL MANAGEMENT, NATIONAL POLICY FORMULATION AND ACCOUNTABILITY. COUNTERPART AWARDED MORE THAN $3.9M IN SMALL GRANTS TO 34 LOCAL PARTNERS IN AFGHANISTAN; ASSISTED LOCAL PARTNERS IN DEVELOPING AND SUBMITTING 31 AMENDMENTS TO AFGHANISTAN'S NGO LAW, 20 OF WHICH WERE ACCEPTED BY THE MINISTRY OF ECONOMY; AND ORGANIZED PARTNERS TO LEAD MORE THAN 160 COMMUNITY, REGIONAL AND NATIONAL DIALOGUES, THROUGH WHICH MORE THAN 16,000 PEOPLE GATHERED TO CALL FOR IMPROVED GOVERNMENT SERVICES. IN ARMENIA, COUNTERPART CONDUCTED TRAININGS FOR MORE THAN 700 MEMBERS OF 41 YOUTH AND COMMUNITY ACTION CENTERS ON CIVIL SOCIETY AND CIVIC ENGAGEMENT, VOLUNTEERISM AND THE ROLE OF YOUTH AS AGENTS OF CHANGE IN THEIR COMMUNITIES, AND LED THE LEGISLATIVE AGENDA ADVOCACY DAYS INITIATIVE, ENABLING 300 CIVIL SOCIETY PARTICIPANTS TO MAKE RECOMMENDATIONS ON THE PARLIAMENTARY AGENDA TO THE NATIONAL ASSEMBLY STANDING COMMITTEE. SUPPORT FROM COUNTERPART ALLOWED AN ARMENIAN INTER-COMMUNITY ORGANIZATION (ICO) THAT SERVES 31 COMMUNITIES TO CREATE AN INTERCOMMUNITY NETWORK AND RE-ENVISION THE WAY IT PROVIDED SERVICES. THE ASSISTANCE ALLOWED THE ICO TO BRING STAFF, COMMUNITY REPRESENTATIVES, AND OTHER ICOS TOGETHER FOR TRAINING ON STRATEGIC PLANNING, DONOR OUTREACH AND PUBLIC-PRIVATE PARTNERSHIPS, AND ENABLED THE LAUNCH OF A WEBSITE TO POST LEGISLATION, BUDGETS, STRATEGIC DEVELOPMENT PLANS AND OTHER CITY DOCUMENTS THAT KEEP RESIDENTS INFORMED AND ENGAGED IN THEIR COMMUNITY. IT ALSO ALLOWED RESIDENTS TO PAY THEIR TAXES WITHOUT LEAVING THEIR VILLAGE, SAVING THEM TIME AND BUILDING THEIR TRUST IN LOCAL GOVERNMENT. THE INNOVATIVE NEW SYSTEM LED TO A NOTICEABLE INCREASE IN TAX PAYMENTS. THE ICO IS SHARING BEST PRACTICES WITH TWO NEW ICOS THAT COUNTERPART HELPED ESTABLISH, AND ARMENIA'S DEPUTY PRIME MINISTER SUGGESTED REPLICATING THE MODEL ACROSS ARMENIA'S 915 MUNICIPALITIES. THROUGH LOCAL PARTNERS IN CAMEROON, COUNTERPART PRODUCED MEDIA MESSAGES THAT EDUCATED 7 MILLION PEOPLE ON CIVIC VOTER ISSUES AND THE NEW BIOMETRIC VOTING SYSTEM. COUNTERPART ALSO COACHED PARTNER ORGANIZATIONS THROUGH THE DEVELOPMENT OF 9-MONTH CAPACITY IMPROVEMENT ACTION PLANS, WHICH NEARLY DOUBLED THEIR ASSESSMENT SCORES FOR FINANCIAL MANAGEMENT AND SUSTAINABILITY. COUNTERPART EXPANDED LOCAL PARTNERS' ABILITY IN CHAD TO EDUCATE VOTERS, CIVIL SOCIETY AND GOVERNMENT OFFICIALS BY PRODUCING 80,200 BILINGUAL GUIDES ON SUBJECTS INCLUDING ELECTION MONITORING AND ELECTORAL DISPUTE RESOLUTION. COUNTERPART ALSO ASSISTED PARTNER ORGANIZATIONS IN PRODUCING VOTER AND CIVIC EDUCATION AND CONFLICT RESOLUTION MESSAGES THAT REACHED 750,450 PEOPLE. IN HONDURAS, COUNTERPART SUPPORTED THE LAUNCH AND OPERATION OF THE LEGAL ASSISTANCE AND ANTI-CORRUPTION COMPLAINT CENTER, WHICH ENABLED 210 CITIZENS TO FORMALLY REGISTER COMPLAINTS OF CORRUPTION. COUNTERPART ALSO LED 104 CIVIL SOCIETY ORGANIZATIONS IN ANTI-CORRUPTION ADVOCACY INTERVENTIONS SUCH AS DISSEMINATION OF INFORMATION ON TRANSPARENCY LAWS, TRAININGS ON ACCOUNTABILITY, PUBLIC CAMPAIGNS, AND SOCIAL AUDITS ON GOVERNMENT PERFORMANCE. WORKING WITH LOCAL PARTNERS, COUNTERPART TRAINED 503 COMMUNITY LEADERS IN COMMUNITY CRIME PREVENTION. COUNTERPART PARTNERED WITH THE MINISTRY OF CULTURE AND INFORMATION IN KAZAKHSTAN TO SELECT CIVIL SOCIETY LEADERS FOR A WORKING GROUP TO DEVELOP LEGISLATION REGULATING GOVERNMENT MECHANISMS OF NGO FINANCING. COUNTERPART PROVIDED POLICY ADVOCACY GRANTS TO NINE PARTNER ORGANIZATIONS, WHICH ENABLED THEM TO INCREASE CONSTRUCTIVE DIALOGUE BETWEEN NGOS AND THE GOVERNMENT ON KEY DEMOCRATIC ISSUES. COUNTERPART ALSO AWARDED SMALL GRANTS TO 12 LOCAL PARTNERS THAT ALLOWED THEM TO DEVELOP FINANCIAL SUSTAINABILITY ACTION PLANS AND INCREASE THEIR FINANCIAL AND ORGANIZATIONAL CAPACITY. IN TAJIKISTAN, COUNTERPART FACILITATED 10 WEEKS OF CIVIC EDUCATION COURSES FOR 315 TEENAGERS IN PARTNERSHIP WITH LOCAL ORGANIZATIONS FOCUSED ON INCREASING COMMUNITY ENGAGEMENT, LEADERSHIP AND VOLUNTEERISM. IN AZERBAIJAN, 3,185 WOMEN ENGAGED IN TRAININGS, WORKSHOPS, PUBLIC HEARINGS AND SEMINARS TO INCREASE THEIR KNOWLEDGE AND AWARENESS OF GENDER ISSUES. (2) NUTRITION AND HEALTH - TRANSFORMING COMMUNITIES INTO HEALTHY AND PRODUCTIVE FOOD-SECURE VILLAGES AND ENSURING RELIABLE AND CONSISTENT ACCESS TO SAFE, AFFORDABLE, ABUNDANT AND DIVERSE SUPPLIES OF NUTRITIOUS FOOD NOT ONLY REDUCES SUSCEPTIBILITY TO DISEASE AND OTHER HEALTH RISKS, PARTICULARLY IN CHILDREN, IT ALSO IMPROVES FAMILY INCOME AND NEAR- AND LONG-TERM ECONOMIC DEVELOPMENT. COUNTERPART WORKED WITH 160 COMMUNITIES IN MAURITANIA TO CREATE STRONG VILLAGE DEVELOPMENT COMMITTEES TO BOLSTER RESILIENCE AND FOOD SECURITY. ONE COMMITTEE BUILT A COMMUNAL WAREHOUSE AND AN INCOME-GENERATING GRAIN-GRINDING MILL. FACING THE 2012 DROUGHT, THIS COMMITTEE USED PART OF ITS COMMUNITY SAVINGS TO BUY SUBSIDIZED CEREALS FROM THE MAURITANIAN GOVERNMENT, WHICH WERE THEN MADE AVAILABLE TO ALL HOUSEHOLDS. THIS COMMUNITY'S MALNUTRITION RATE WAS LESS THAN 7% - ONE OF THE LOWEST IN THE REGION. THROUGHOUT MAURITANIA, COUNTERPART ENROLLED 15,935 CHILDREN IN ONGOING GROWTH MONITORING, WHICH INCLUDES REGULAR MALNUTRITION SCREENINGS BY COMMUNITY PARTNERS, AND SUPPORTED COMMUNITY HEALTH WORKERS IN 71 COMMUNITIES WITH AN INNOVATIVE MALARIA RAPID DIAGNOSTIC TEST AND TREATMENT. IN ETHIOPIA, COUNTERPART HELPED LOCAL PARTNERS REACH 29,941 PEOPLE WITH HIV PREVENTION AND BEHAVIOR-CHANGE MESSAGES. COUNTERPART ENABLED LOCAL PARTNERS IN GEORGIA TO RECONSTRUCT AN OUTPATIENT CLINIC, ENHANCING MEDICAL CARE FOR 1,700 RESIDENTS. IN KYRGYZSTAN, COUNTERPART ENABLED PARTNER ORGANIZATIONS TO RECONSTRUCT A TERRITORIAL HOSPITAL'S MATERNITY WARD, ENHANCING THE QUALITY OF MATERNAL HEALTH SERVICES FOR MORE THAN 12,000 MOTHERS. COUNTERPART MADE IT POSSIBLE FOR LOCAL HEALTH ORGANIZATIONS IN NIGER TO TREAT 9,907 CHILDREN AGES 6-59 MONTHS FOR MODERATE AND SEVERE ACUTE MALNUTRITION, AND PROVIDED HEALTH WORKERS WITH MATERIALS AND SUPPORT TO COMPLETE SUCCESSFUL VACCINATION CAMPAIGN THAT PROTECTED 5,818 INFANTS AGAINST POLIO, MENINGITIS, HEPATITIS B, MEASLES AND YELLOW FEVER. COUNTERPART COLLABORATED WITH SENEGALESE OFFICIALS, TEACHERS, AND COMMUNITIES TO DISTRIBUTE 111,821 HOT MEALS EVERY DAY TO SCHOOLCHILDREN AND BOOST SCHOOLS' ABILITY TO SUSTAINABLY FEED STUDENTS WITH HOMEGROWN PRODUCE. COUNTERPART ALSO FORMED MOTHER-TO-MOTHER GROUPS COMPRISING 57,847 WOMEN WHO LEARNED ABOUT HEALTH AND NUTRITION, AND THROUGH LOCAL ORGANIZATIONS, TRAINED 17,867 PEOPLE IN SANITATION AND HYGIENE TECHNIQUES. IN YEMEN, COUNTERPART FACILITATED THE 2-DAY NATIONAL WOMEN'S CONFERENCE THAT BROUGHT TOGETHER MORE THAN 900 ACTIVISTS TO DISCUSS ISSUES SUCH AS MATERNAL HEALTH, CHILDHOOD MARRIAGE AND DISCRIMINATORY PRACTICES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>MISSION STATEMENT CONTINUED (3) HUMANITARIAN ASSISTANCE - COUNTERPART MOBILIZES BOTH COMMUNITIES AND DIVERSE DONOR RESOURCES TO HELP THE WORLD'S MOST VULNERABLE POPULATIONS: CHILDREN, ORPHANS, THE POOR, THE ELDERLY, THE DISABLED, REFUGEES FROM WAR AND VICTIMS OF DISASTERS. BY WORKING WITH LOCAL ORGANIZATIONS, COUNTERPART PROVIDES AN IMPORTANT BRIDGE BETWEEN IMMEDIATE, BASIC NEEDS AND LONG-TERM DEVELOPMENT. IN AZERBAIJAN, COUNTERPART DISTRIBUTED NEW TOMS SHOES TO TENS OF THOUSANDS OF CHILDREN IN 14 PROVINCES, INCREASING SCHOOL ATTENDANCE AND MINIMIZING DISEASE TRANSMISSION. COUNTERPART COLLABORATED WITH LOCAL COMMUNITIES IN KYRGYZSTAN TO IDENTIFY THOSE MOST IN NEED AND DISTRIBUTE EMERGENCY AND MEDICAL SUPPLIES VALUED AT $2.6M. IN TAJIKISTAN, COUNTERPART DELIVERED URGENTLY-NEEDED MEDICAL AND SCHOOL SUPPLIES VALUED AT $2.2M TO CHILDREN AND COMMUNITY MEMBERS. IN UKRAINE, COUNTERPART TRAINED 15 UKRAINIAN, BELARUSIAN AND MOLDOVAN NGOS ON EMERGENCY RELIEF MANAGEMENT. COUNTERPART WORKED WITH LOCAL ORGANIZATIONS IN GEORGIA TO RENOVATE A VILLAGE KINDERGARTEN, INCREASING PRE-SCHOOL ENROLLMENT BY MORE THAN 40 PERCENT AND IMPROVING THE QUALITY OF EDUCATION FOR THE MORE THAN 1,500 RESIDENTS. (4) LIVELIHOOD, ENVIRONMENTAL SUSTAINABILITY AND ECONOMIC DEVELOPMENT - THE BARRIERS TO SUSTAINED ECONOMIC GROWTH ARE NUMEROUS AND COMPLEX. WOMEN, YOUTH, PEOPLE WITH DISABILITIES AND POPULATIONS DISPLACED BY NATURAL OR MAN-MADE DISASTERS ARE OFTEN THE MOST AFFECTED BY THESE BARRIERS AND THE LEAST ABLE TO ADDRESS THEM. COUNTERPART AIMS TO ENHANCE LIVELIHOODS, JOB CREATION, AND QUALITY OF LIFE THROUGH COMMUNITY-DRIVEN ECONOMIC DEVELOPMENT PLANNING, ENHANCED PRODUCTIVITY AND PROFITABILITY OF SMALL AND MEDIUM BUSINESSES, EXPANSION OF MARKETS AND ACCESS TO FINANCING, AND ENVIRONMENTAL CONSERVATION AND RESTORATION. IN DOMINICAN REPUBLIC, COUNTERPART WORKED WITH A NETWORK OF LOCAL ORGANIZATIONS TO REPLANT 1,200 NURSERY GROWN STAGHORN CORAL FRAGMENTS AT 15 SITES IN ONE OF THE LARGEST RESTORATION ATTEMPTS FOR THIS SPECIES IN THE CARIBBEAN. IN OTHER COASTAL COMMUNITIES WORK, COUNTERPART ENABLED A LOCAL PARTNER ORGANIZATION TO CONDUCT 15 THREE-DAY INTENSIVE IN-SITU TRAININGS ON RESPONSIBLE FISHING PRACTICES. COUNTERPART ALSO ESTABLISHED RELATIONSHIPS WITH TWO SUPERMARKET CHAINS, TWO FISH AND SEAFOOD EXPORT/IMPORT COMPANIES AND A LOCAL HOTEL AND RESTAURANT TO DEVELOP A SEAFOOD VALUE CHAIN THAT REWARDS SUSTAINABILITY AND BOOSTS INCOME FOR FISHER ASSOCIATIONS. WITH SUPPORT FROM COUNTERPART, A LOCAL NGO, AGROFRONTERA, CONVINCED FARMERS AND FISHERMEN NEAR MONTE CRISTI NATIONAL PARK TO USE ENVIRONMENTALLY SUSTAINABLE METHODS THAT ALSO INCREASED THEIR INCOMES. IN ADDITION, LAB ANALYSES OF SOIL SAMPLES REVEALED THAT THEY HELD MORE CARBON THAN A TROPICAL RAINFOREST. IN FACT, THE MANGROVES OF MONTE CRISTI MAY BE ONE OF THE RICHEST CARBON SINKS ON THE PLANET-A DISTINCTION THAT WITH MORE SCIENTIFIC RESEARCH AND SUPPORT COULD ALLOW COASTAL COMMUNITIES TO DERIVE ECONOMIC BENEFIT FROM ENVIRONMENTAL PROTECTION. COUNTERPART COACHED PARTNER ORGANIZATIONS IN CAMEROON THROUGH THE DEVELOPMENT OF 9-MONTH CAPACITY IMPROVEMENT ACTION PLANS, WHICH NEARLY DOUBLED THEIR ASSESSMENT SCORES FOR FINANCIAL MANAGEMENT AND SUSTAINABILITY. COUNTERPART TRAINED NINE ARTISAN GROUPS IN ETHIOPIA IN PRODUCT DESIGN, MARKETING AND BUSINESS SKILLS AND LINKED THEM WITH NEW NICHE MARKETS, INCREASING THEIR HANDCRAFT SALES BY ALMOST 31 PERCENT. COUNTERPART ALSO LAUNCHED THE NATIONAL GEOGRAPHIC MAPGUIDE THAT HIGHLIGHTS TOURISM DESTINATIONS IN THE CENTRAL AND SOUTHERN RIFT VALLEYS. IN GUATEMALA, COUNTERPART WORKED WITH LOCAL AND NATIONAL ORGANIZATIONS TO OPEN 11 NEW TOURISM ROUTES AND LAUNCH THE GUATEMALA 2012 WEBSITE IN PREPARATION FOR THE DEC. 21, 2012, "END OF THE WORLD EVENTS". COUNTERPART ALSO BOLSTERED RURAL TOURISM AND ARTISAN ENTREPRENEURS IN ATITLAN WITH 270 LOANS TOTALING $376,069. COUNTERPART GENERATED ALMOST $1 MILLION IN SALES FOR ARTISANS BY ORGANIZING THEIR INCLUSION IN THE NEW WORLD CRAFTS SHOW, WHICH CREATED ACCESS TO 120 INTERNATIONAL BUYERS AND 110 EXPORTERS. IN MAURITANIA, COUNTERPART ORGANIZED VILLAGE COMMITTEES IN 160 COMMUNITIES THAT ENABLED THEM TO BUILD RESILIENCE AND LOCAL LEADERSHIP AND CREATE DEMAND-DRIVEN DEVELOPMENT, AND AWARDED 1,111 WOMEN LOANS TO START OR IMPROVE SMALL BUSINESS VENTURES SUCH AS GRAIN MILLS, MARKET GARDENING AND COMMUNITY SHOPS. IN NIGER, COUNTERPART WORKED WITH COMMUNITY PARTNERS TO TRAIN 700 WOMEN IN ANIMAL CARE AND MILK PRODUCTION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 1</ReturnReference>
        <Explanation>THE EXECUTIVE COMMITTEE SHALL BE A STANDING COMMITTEE COMPOSED OF ALL COMMITTEE CHAIRS OF THE BOARD OF DIRECTORS OF COUNTERPART INTERNATIONAL, AND THE CHAIR OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL BE RESPONSIBLE FOR: (I) EXERCISING THE POWERS AND AUTHORITY OF THE BOARD OF DIRECTORS DURING THE INTERVALS BETWEEN MEETINGS OF THE BOARD, WHEN, BASED ON THE BUSINESS NEEDS OF THE COMPANY, IT IS DESIRABLE FOR THE BOARD TO MEET BUT THE CONVENING OF A SPECIAL BOARD MEETING IS NOT WARRANTED AS DETERMINED BY THE CHAIR OF THE BOARD. THE AUTHORITY OF THE COMMITTEE IS LIMITED BY RESOLUTION OF THE BOARD OF DIRECTORS, THE BY-LAWS OF THE COMPANY AND THE BUSINESS CORPORATION LAWS OF THE STATE OF NEW YORK. THE EXECUTIVE COMMITTEE MAY NOT (A) AMEND THE COMPANY'S ARTICLES OF INCORPORATION; (B) AMEND OR REPEAL THE BY-LAWS OF THE COMPANY; (C) ADOPT AN AGREEMENT OF MERGER OR CONSOLIDATION; (D) APPROVE THE SALE, LEASE OR EXCHANGE OF ANY ALL OF THE CORPORATE PROPERTY AND ASSETS; (E) DISSOLVE THE CORPORATION; (F) AMEND OR RESCIND PREVIOUS RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE 990 INFORMATION IS COMPILED BY AN INDEPENDENT CPA FIRM AND REVIEWED BY THE CHIEF FINANCIAL OFFICER (CFO) FOR ACCURACY. ONCE A DRAFT OF THE 990 HAS BEEN SENT TO COUNTERPART, IT IS REVIEWED BY THE VICE PRESIDENT, FINANCE &amp; RISK MANAGEMENT, AND THE CHAIR OF THE AUDIT COMMITTEE. ANY QUESTIONS/CHANGES ARE COMMUNICATED BY THE VICE PRESIDENT, FINANCE &amp; RISK MANAGEMENT TO THE CFO AND THE CPA FIRM. THE FINAL DRAFT OF THE 990 IS REVIEWED AND SIGNED BY THE CFO.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO SIGN AN ANNUAL SELF-DISCLOSURE OF CONFLICTS OF INTEREST STATEMENT. FURTHERMORE, OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE REQUIRED TO NOTIFY THE CEO WITHIN 30 DAYS OF THE DISCOVERY OR POTENTIAL OF ANY CONFLICT OF INTEREST. SUCH CONFLICTS OF INTEREST MAY INCLUDE PROCUREMENT, HIRING, OR ANY OTHER AREA OF ORGANIZATIONAL INTEREST. THE CEO (AND CHAIRMAN OF THE BOARD IN CASES OF DIRECTOR CONFLICTS OF INTEREST) WILL DETERMINE THE APPROPRIATE ACTION FOR THOSE OFFICERS, DIRECTORS OR KEY EMPLOYEES WITH A CONFLICT OF INTEREST. THIS WILL AT MINIMUM INCLUDE RECUSAL FROM PARTICIPATION IN THE CONSIDERATION OF THE PROPOSED TRANSACTION. IN SOME CASES, CONFLICT OF INTEREST MAY BE DEEMED SO SEVERE TO REQUIRE THAT THE INDIVIDUALS IN QUESTION RESIGN FROM THEIR ROLE WITH COUNTERPART INTERNATIONAL.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15A</ReturnReference>
        <Explanation>THE CEO'S SALARY IS DETERMINED BY THE BOARD. FORM 990, PART VI, LINE 15B: THE SENIOR OFFICERS' SALARY IS DETERMINED BY THE CEO WHO IN TURN BASES HIS/HER DECISION UPON EXTERNAL THIRD PARTY SURVEYS AND ASSESSMENTS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>NET UNREALIZED GAINS ON INVESTMENTS: 5,462. PRIOR PERIOD ADJUSTMENTS: 944,284. FOREIGN CURRENCY LOSSES -95,574. TOTAL TO FORM 990, PART XI, LINE 5: 854,172.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>AUDIT OVERSIGHT</Identifier>
        <ReturnReference>FORM 990, PART XII, LINE 2C:</ReturnReference>
        <Explanation>THE OVERSIGHT PROCESS AS WELL AS SELECTION PROCESS FOR THE AUDIT OF THE ORGANIZATION'S FINANCIAL STATEMENTS DURING THE TAX YEAR HAS REMAINED CONSISTENT WITH PRIOR YEARS.</Explanation>
      </GeneralExplanation>
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          <AddressLine1>2345 CRYSTAL DRIVE STE 301</AddressLine1>
          <City>ARLINGTON</City>
          <State>VA</State>
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