2012-08-14T19:59:01-07:00 2011-12-31 990 2011-01-01 133836581 SHARED INTEREST INC SHAR 2123378547 121 West 27th Street Suite 805 New York NY 100016207 Donna Katzin 6464420182 2012-08-14 2011 2016-02-24 21:20:13Z Donna Katzin 121 West 27th Street Suite 805 New York NY 10001 1839375 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. 20 19 6 8 0 0 1222319 1405844 268521 246943 47967 33236 0 0 1538807 1686023 240571 176667 0 0 334252 378057 45000 45000 188232 684807 646387 1304630 1246111 234177 439912 14442929 14134000 12761529 12232116 1681400 1901884 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 987090 176667 242488 During the 2011 tax year, the organization had outstanding as many as 7 agreements guaranteeing commercial loans to emerging small businesses and microfinance intermediary organizations in South Africa, plus one additional facility in neighboring Swaziland. The aggregate exposure involved in the guarantees totaled approximately $3,017,800 in the year, a year in which financial institutions in the region, but particularly in South Africa, retreated from lending into a sector which they perceive as high risk and returning margins too thin to significantly improve their bottom lines. 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 union pension funds and groups of private local investors, to put capital at risk in the sphere of small business finance and lending to economically-disenfranchised individuals. Collateralizing this activity, and the letters of credit, are 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 987090 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 0 1 121 0 1 6 1 0 0 0 0 0 1 1 0 0 0 0 X 20 19 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY PA X X Donna Katzin 2123378547 121 West 27th Street Suite 805 New York NY 100016207 X Linnie McLean 3 X X 0 0 0 Michael Bennett 1.00 X X 0 0 0 Lawrence Litvak 3 X X 0 0 0 Jean Cary Bond 1.50 X X 0 0 0 Adrienne Bailey 1 X 0 0 0 Edward J Bergman 1 X 0 0 0 Lauretta Bruno 1.5 X 0 0 0 Ann Burroughs 1 X 0 0 0 Iva E Carruthers 1 X 0 0 0 Price M Cobbs 0.5 X 0 0 0 Jennifer Davis 2 X 0 0 0 Darchelle Garner 1 X 0 0 0 Mark Halvorson 1 X 0 0 0 Marc Herson 0.5 X 0 0 0 Harold T Lewis 1.00 X 0 0 0 Ricardo Millett 1 X 0 0 0 Mangedwa Nyathi 1 X 0 0 0 Jehiel Oliver 1 X 0 0 0 Matthew Patsky 1.5 X 0 0 0 Joshua Posner 1 X 0 0 0 Ron Shiffman 1 X 0 0 0 Sheila Sisulu 0.5 X 0 0 0 Timothy Smith 3 X 0 0 0 David Wildman 0.5 X 0 0 0 Evans Maphenduka 51 X X 0 120000 0 Donna Katzin 55 X 80000 0 24597 80000 120000 24597 0 0 0 0 0 0 0 338034 34864 0 1032946 61093 1405844 Interest 523000 242488 242488 0 0 Publication Sales 511130 4455 4455 0 0 0 0 0 0 246943 36740 0 0 36740 0 0 0 0 0 0 0 0 0 0 93974 0 97478 0 -3504 0 -3504 0 0 -3504 55874 338034 55874 0 0 0 0 1686023 246943 0 33236 0 0 0 0 176667 176667 0 0 104597 77853 11236 15508 0 0 0 0 193609 144106 20798 28705 5906 4396 634 876 51002 37962 5479 7561 22943 17077 2465 3401 0 0 0 0 363 0 363 0 12000 6000 6000 0 0 0 0 0 45000 45000 12372 12372 0 0 43278 24362 8076 10840 42889 15051 0 27838 24362 14146 6474 3742 7146 5319 768 1059 0 0 0 0 57137 42528 6138 8471 8756 4512 0 4244 0 0 0 0 9296 9296 0 0 242488 242488 0 0 0 0 0 0 6077 4523 653 901 1061 790 114 157 Defaulted Loan Expense 92615 92615 0 0 Postage & Delivery 22785 10704 1545 10536 Printing & Publications 42190 26057 0 16133 Bank Facility Fees 9910 9910 0 0 11662 8356 46 3260 1246111 987090 70789 188232 0 0 207552 625988 213897 618340 0 0 0 0 0 0 0 0 0 0 93209 32303 55134 42121 18665 13013 965289 855856 0 0 12664276 11761002 0 280041 227498 14442929 14134000 87632 158388 0 0 0 0 0 0 0 0 0 0 0 0 12609759 12015627 64138 58101 12761529 12232116 X 1392353 1452592 289047 449292 0 0 1681400 1901884 14442929 14134000 X 439912 -219428 X 0 1 1 X 0 X 1108017 1079521 884957 1222318 1405844 5700657 0 0 0 0 0 0 0 0 0 0 0 0 1108017 1079521 884957 1222318 1405844 5700657 500953 5199704 160443 95918 40364 43315 36740 376780 0 0 0 0 0 0 0 0 0 0 0 6077437 1286268 0.85558 0.83391 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 7000 4783 2217 0 48134 37338 10796 0 0 0 0 13013 Collateral held in investments 11761002 F 11761002 0 Accrued interest payable to noteholders 58101 58101 1686023 1246111 439912 -219428 0 0 0 0 -219428 220484 1159339 -219428 25066 0 0 -194362 1353701 242488 89834 332322 1686023 938855 25066 0 0 0 25066 913789 242488 89834 332322 1246111 SchD_P12_S00_L04b Schedule D, Part XII, Line 4b All event expense, not just the direct benefit to donors, is netted on the financial statements against the associated revenue. SchD_P13_S00_L04b Schedule D, Part XIII, Line 4b All event expense, not just the direct benefit to donors, is netted on the audited financial statements against the associated revenue. 1 Sub-Saharan Africa 0 0 Grantmaking 176667 Sub-Saharan Africa 0 0 Program Services Loan loss payment 92615 Sub-Saharan Africa 0 0 Conducting Board Meetings Travel to South Africa 1941 0 0 271223 Sub-Saharan Africa General support 176667 Wire Transfer 0 USD Cash 1 0 0 0 0 0 0 0 SchF_P01_S00_L02 Schedule F, Part I, Line 2 The Organization requires quarterly and annual financial statements and periodic narrative reports of program accomplishments from grantees. Additionally, the Executive Director makes field visits at least once annually but more often twice a year. If an independent audit was conducted of any grantee, a copy is required to be furnished to us. 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 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. SchF_P01_S00_L03 Schedule F, Part I, Line 3 Grant payments were made in USD but a payment due to a South African bank resulting from its call on a Shared Interest guarantee was valued based on the exchange rate for the South African Rand published on December 31, 2011. Consequently, the Organization's share of a loss on a defaulted loan is shown as $92,615 when converted at the rate of $1 = 8.0980 Rand. X X X X X X 1 The JFM Group 629 Fifth Avenue Suite 106 Pelham NY 10803 Organization of fundraising dinner and solicitation of contributions from supporters 1 393908 45000 348908 393908 45000 348908 NY PA Fundraising Dinner 393908 338034 55874 0 0 0 50874 5000 0 0 0 393908 338034 55874 0 0 0 50874 5000 0 55874 0 SchG_P01_S00_L02b 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. SchG_P01_S00_L02bv Schedule G, Part I, Line 2b(v) The Organization paid all fees of the fundraiser directly from its own bank 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 $1,216.74 for certain categories of expenses pre-agreed in the contract. Expenses stipulated were telephone, overnight courier, and in-house printing and transportation costs. X 2 61093 FMV (mean) 0 0 1 0 SchM_P01_S00_L09 Schedule M, Part I, Line 9 During the 2011 fiscal year, the Organization received 2 different donations, aggregating $61,093, in the form of publicly-traded equity securities. The fair market value of each contribution was computed based on the mean price quoted for each stock on the date the securities were received in the organization's investment account. F990_P06_S0B_L11b 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 9 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. F990_P06_S0B_L12c 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. F990_P06_S0B_L15 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 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. F990_P06_S0C_L19 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. We have had inquiries about our Form 990. For those who find it more convenient, Shared Interest refers them to Guidestar or the website of NYS Attorney General, which also provides links to other websites where the Form 990 is available. Finally, now that we have the completed 990 in PDF format, we are happy to send it to anyone requesting an electronic copy. Shared Interest also makes its annual report, which contains its most recent audited financials, available on its own website (and also mails and emails copies to all supporters for whom it has either street or electronic addresses). F990_P07_S0A_L01a 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 also 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 (51) includes just one hour per week representing time expended on average in the governance of Shared Interest. F990_P11_S00_L05 Form 990, Part XI, Line 5 Shared Interest's audited financials include unrealized appreciation/depreciation on securities as an item of revenue. As Form 990 treats such income as among other changes in net assets, or fund balances, the 2011 net decline in the fair market value of Shared Interest's investments is a reconciling item totaling negative $219,428. Thembani International Guarantee Fund Burnett Street Hatfield Plaza Pretoria Gauteng SF Loan Guarantee evaluation SF 501(c)(3) Shared Interest Inc 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0