2012-11-16T15:46:19-06:00 2011-12-31 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 100174057 990 2011-01-01 134052259 Media Development Loan Fund Inc % MARI BUDESA MEDI 2128071304 37 West 20th Street New York NY 10011 Harlan Mandel 2128071304 2012-11-16 true 2125990100 2011 2016-02-24 21:20:13Z Harlan Mandel CEO 37 West 20th Street New York NY 10011 6147983 false X www.mdlf.org X 1995 NY Media Development Loan Fund is a mission-driven investment fund for independent news outlets in countries with a history of media oppression. 8 5 0 0 0 2402143 3885870 3255707 1465921 459850 644331 113938 151861 6231638 6147983 674011 845443 0 0 2639467 2716913 0 0 0 2260008 2135286 5573486 5697642 658152 450341 52961235 52754044 15438333 16879237 37522902 35874807 X MEDIA DEVELOPMENT LOAN FUND, INC. (MDLF) WAS ESTABLISHED TO PLACE PROGRAM RELATED INVESTMENTS (PRIS), PRIMARILY LOW-INTEREST LOANS, TO INDEPENDENT NEWSPAPERS, MAGAZINES, NEWS AGENCIES, RADIO AND TELEVISION STATIONS, AND INTERNET-BASED MEDIA OUTLETS IN DIFFERENT COUNTRIES OF THE WORLD. MDLF OFFERS PRIS TO WORTHY INDEPENDENT MEDIA ORGANIZATIONS DEVOTED AND PERSISTENT IN PROMOTING AND EXERCISING THE PRINCIPLES OF FREE, INDEPENDENT AND RESPONSIBLE PRESS. PRIS ARE OFFERED TO SUPPORT PROJECTS THAT BROADEN AND STRENGTHEN OPERATIONS FOR WHICH THESE MEDIA ORGANIZATIONS CANNOT OBTAIN FUNDING FROM OTHER SOURCES ON ECONOMICALLY FEASIBLE TERMS. MANY OF THESE MEDIA ORGANIZATIONS ARE STARVED FOR CAPITAL BECAUSE THEY WORK IN ENVIRONMENTS CHARACTERIZED BY POORLY DEVELOPED BANKING SYSTEMS, ECONOMIES IN TRANSITION, LACK OF FRESH INVESTING CAPITAL, GOVERNMENTS THAT ARE VERY OFTEN SECRETLY OR OPENLY HOSTILE TO THE IDEA OF FREE AND INDEPENDENT PRESS, AND WHERE LENDING INSTITUTIONS CHARGE EXORBITANT, AND IN false false 4502770 845443 1465921 MDLF provides loan financing by way of "program related investments" (PRIs), that allow non-profits to make investments in firms whose work will further their charitable mission. MDLF maintains a segregated pool of funds from which it makes loans and other PRIs. Loan repayments are recycled through the pool and loaned out repeatedly. With every PRI, MDLF provides customized training and technical assistance to its BENEFICIARIES, from the first stage of developing a business plan through to the final discharge of the loan. In addition, MDLF trains its borrowers and other media organizations in the use and transfer of Internet-based technology and its impact on the future development of media business. In determining whether to make a loan or other program-related investment, the Fund faces both political and legal risk. The Fund makes loans and other program-related investments in countries where political stability may be of concern. This type of risk is assessed before the Fund starts operations in a certain country. The legal risk may arise as a result of making loans and other program-related investments in countries with differing legal systems than those of the United States of America. Those systems are sometimes characterized by uncertainty and lack of independent legal institutions, including judiciary. The Fund's model loan contract was drafted by U.S. attorneys and the Fund has all loans reviewed by attorneys in the country of each borrower. 4502770 true true false false false false false false false true true false true false false true false true false true true true false false false false false true false true false false false false false false false true false false false false true true false false false false true X 21 0 true 0 false true UK RS EZ PL FR false false false false false false false false X 8 5 false false false false false false false true true false false true true true true true true true true false NY X MARI BUDESA 2128071852 37 WEST 20TH STREET NEW YORK NY 10011 Sasa Vucinic thru 33111 40.0 X X 65889 0 0 Harlan Mandel 40.0 X X 215460 0 65545 Ying-Yuen Chan 2.0 X 0 0 0 Sheila Coronel 2.0 X 3000 0 0 Annette Laborey 2.0 X 0 0 0 Aryeh Neier 2.0 X 0 0 0 Alexander Papachristou 2.0 X 0 0 0 John Ryle 2.0 X 0 0 0 Gerald Nagler 2.0 X 0 0 0 BERNARD POULET 2.0 X X 4000 Elena Popovic 40.0 X 145383 0 27363 Mari Budesa 40.0 X 167679 0 35926 Joy Curtin 40.0 X 107114 0 28228 Jaroslaw Gora 40.0 X 136861 0 0 Anna Krynska 40.0 X 137821 0 0 Patrice Schneider 40.0 X 144640 0 0 1127847 0 157062 7 false true true 0 209618 3676252 3885870 PROGRAM RELATED INVESTMENTS/INTEREST ON LOANS 900099 1465921 1465921 1465921 644331 644331 0 0 0 0 0 0 CONSULTING FEES 900099 70270 70270 MONITORING FEES 900099 44542 44542 MISCELLANEOUS 900099 37049 37049 151861 6147983 1580733 0 681380 11000 11000 0 834443 834443 0 730245 565695 164550 0 1547787 1195639 352148 60246 46539 13707 222423 171818 50605 156212 120671 35541 0 98268 89947 8321 79149 79149 0 0 97849 97849 201721 143852 57869 0 151309 110804 40505 212548 150121 62427 0 214839 162605 52234 525852 370124 155728 0 0 339867 339867 0 32500 22535 9965 16795 12196 4599 PROVISION FOR LOSS-PRI INT. 74790 74790 0 BANK FEES 44739 44739 0 OTHER EXPENSES 45060 35385 9675 0 5697642 4502770 1194872 0 2197518 1391011 2566777 2594214 860000 3144941 0 0 0 0 0 0 0 0 0 0 824891 1149415 1050423 782964 133493 267459 18484177 16294716 0 180356 27894379 27731932 0 0 0 0 52961235 52754044 1059037 598985 13524 190604 0 0 0 0 0 0 0 0 0 0 14365772 16089648 0 0 15438333 16879237 X 34790093 30676120 2732809 5198687 0 0 37522902 35874807 52961235 52754044 X 450341 -2098436 X false true true X false X 5585714 5070686 3434470 2402143 3885870 20378883 5585714 5070686 3434470 2402143 3885870 20378883 15738383 4640500 364477 666129 702674 444988 644331 2822599 101377 477510 0 2495 37049 618431 23819913 33518082 0.19482 0.27918 X Media Development Loan Fund (MDLF) is a mission-driven investment fund for independent news outlets in countries with a history of media oppression. MDLF provides low-cost capital and technical know-how to help journalists in challenging environments build sustainable businesses around professional, responsible, quality journalism. MDLF depends on the generosity of large private foundations, governmental entities and the public at large to continue its important work. In recent years, the United States economy has experienced an economic downturn that has impacted all segments of the corporate and not-for-profit world. Charitable giving has diminished across the not-for-profit sector; as a result, organizations like MDLF that depend upon public support to thrive are suffering greatly. This has impacted the organization's ability to raise funds, to solicit contributions and to generate revenues to undertake exempt programs. MDLF is fortunate to have secured the patronage of one significant contributor, Open Society Institute, that has enabled it to weather the difficult economic times, leaving it with enough funds to support those programs that further its charitable mission. MDLF understands the need to meet the public support test. To that end, it is continually attempting to generate new sources of fundraising, both through broad donor appeals, targeted solicitations, and website exhortations. Internal Revenue Code Regulation 1.170A-9T lists several criteria that indicate facts and circumstances supporting an organization's continued public charity status despite not meeting the 33 1/3 support test. Those criteria are as follows: 1. Attraction of public support - in the past few years, MDLF has sought to expand its fundraising capabilities to generate greater public support. The organization's website now directly appeals to net users to invest in press freedom. Specifically, the webpage notes: It's easy to invest in MDLF's work, providing independent news businesses with the financing they need to hold governments to account, expose corruption and fight for justice for all. There are three ways to invest, depending on the financial returns you seek, the amount you would like to invest and where you are in the world. We can also accommodate special options on a case-by-case basis, and will be pleased to discuss your giving plans with you - send us an email or telephone us direct on +1 (212) 807 1304. These activities target prospective donors who support MDLF's mission and programs. 2. Percentage of financial support - the Foundation's public support percentage exceeds 19%. The higher the percentage of support above the 10 percent requirement of paragraph (f)(3)(i) of 1.170A-9T, the lesser will be the burden of establishing the publicly supported nature of the organization through other factors described in paragraph (f)(3), while the lower the percentage, the greater will be the burden. MDLF's support percentage is low because it receives a large percentage of its contributions from a private foundation. 3. Sources of Support - MDLF has historically received much of its support from governmental entities; due to tough economic times, the amounts of these donations has been significantly reduced. As the economy rebounds, the hope is that MDLF will see an increase in funding. 4. Representative Governing Body -MDLF has a governing body that is broadly represented by members of the community. Each of these factors are significant positive evidence of MDLF's publicly supported nature. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 18484177 5101200 122369 7134825 97849 16475072 17418792 4000000 724267 3582533 76349 18484177 8586800 7694440 1147886 10334 17418792 0 8578818 7982 8586800 1.00000 0 199323 188591 10732 317093 291650 25443 534007 302723 231284 267459 PRINT 29321901 C TELEVISION 6276430 C RADIO 2703920 C ONLINE 542072 C NEWS AGENCY 803155 C OTHER 148908 C UNREMITTED EQUITY IN NET -2120185 C EARNINGS OF EQUITY INVESTEES C 27731932 0 0 6147983 5697642 450341 -957414 -1141022 -2098436 -1648095 4687125 -957414 -503444 -1460858 6147983 6147983 6335220 637578 637578 5697642 5697642 Restricted Assets Schedule D, Part V, Line IV In March of 2008, the Board of Directors of the Media Development Loan Fund established the Client Subsidy Fund ("CSF"). The Board restricted the use of the assets and earning thereon to meet budgeted shortfall between the Fund's annual operating costs and its annual non-CSF income, with the purpose of supporting the below-market interest rates charged by the Fund on its program-related loans and leases. FIN 48 Schedule D, Part X, Line 2 MANAGEMENT EVALUATED THE TAX POSITIONS FOR MDLF AND EACH OF THE CONSOLIDATED ENTITIES AND CONCLUDED THAT THE FUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. WITH FEW EXCEPTIONS, THE FUND IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2008, WHICH IS THE STANDARD STATUTE OF LIMITATIONS LOOK-BACK PERIOD. Reconciliation of Net Assets Schedule D, Part XI, Line 8 EQUITY IN NET EARNINGS OF INVESTEES $(627,395) Adjustment for provision for doubtful program-related investments, net (637,578) Foreign Currency Translation Loss 123,951 ------------ TOTAL: (1,141,022) ============ Reconciliation of Revenue Schedule D, Part XII, Line 2d EQUITY IN NET EARNINGS OF INVESTEES $(627,395) Foreign Currency Translation Loss 123,951 ------------ TOTAL: (503,444) ============ Reconciliation of Expenses Schedule D, Party XIII, Line 2D Adjustment for provision for doubtful program-related investments, net (637,578) true East Asia and the Pacific 0 3 Program Services PROGRAM RELATED INV. 527131 Europe (Including Iceland and Greenland) 2 12 Program Services PROGRAM RELATED INV. 183710 South America 0 0 Program Services PROGRAM RELATED INV. 60000 Sub-Saharan Africa 0 0 Program Services PROGRAM RELATED INV. 17000 Russia and the Newly Independent States 1 4 Program Services PROGRAM RELATED INV. 33902 South Asia 0 0 Program Services PROGRAM RELATED INV. 12700 South America Investments 2201707 Europe (Including Iceland and Greenland) Investments 11028501 Russia and the Newly Independent States Investments 10365095 Central America and the Caribbean Investments 3410794 East Asia and the Pacific Investments 1879474 Sub-Saharan Africa Investments 9598005 South Asia Investments 1312000 3 19 3 19 40630019 40630019 Europe/Iceland/Greenland Tech/Leg aid 12000 Europe/Iceland/Greenland Tech/Leg aid 5222 Russia Tech/Leg aid 16580 Europe/Iceland/Greenland Tech/Leg aid 150000 Europe/Iceland/Greenland Tech/Leg aid 6488 East Asia/Pacific Tech/Leg aid 506214 Sub-Saharan Africa Tech/Leg aid 17000 South America Tech/Leg aid 60000 East Asia/Pacific Tech/Leg aid 16787 South Asia Tech/Leg aid 12700 Russia Tech/Leg aid 11209 Europe/Iceland/Greenland Tech/Leg aid 10000 12 false false false false false false Schedule F, Part I, Line 2 Applying for MDLF financing is a detailed process that usually takes several months. MDLF undertakes a rigorous process to fully understand a Beneficiary's business and the intended use of the funds to be granted or loaned to the organization. Potential Beneficiaries need to understand the demands that MDLF will make on them should their application be successful, such as intended and actual use of funds loaned or granted. To be eligible to apply for MDLF financing, a media outlet must have been operating legally in its home country for at least a year, although the Board may waive the one-year requirement when the Mission so requires, have an established reputation for promoting democratic institutions and practices and exercising the principles of a free, independent and responsible press, devote a significant part of editorial content or programming to be fact-based news and documentaries, independent from the influence of the government or any other interest group, offer coverage of different political opinions and promote human rights, the rights of ethnic minorities and inter-ethnic co-existence, not be owned by the government, a state agency, a foreign legal entity, or an oligarch business interest that may interfere with editorial policy for its own interests, present a detailed project aimed at broadening and strengthening the outlet's operation, have strong prospects of being able to repay the loan and becoming self sustaining, ensure that funds will be used as stipulated, and provide MDLF with unrestricted access to accounting records. Schedule F, Part I, Line 3, Column F The amounts reported in Part I, Line 3, column (f) represent the program related investments MDLF has made in the form of loans, finance leases and equity investments to newspaper publishers, TV and radio stations, printing houses, news agencies and online publishers in various countries. The amounts listed represent the current year expenditures on the investments and should tie back to Part IX, Line 3. In addition, MDLF has listed the End-of-the-year value of its Program Related Investments in each Region in Part 1. These amounts, in contrast to the current year expenditures in those regions, have been reported as "Investments" in Part I. For the sake of clarity, it should be noted that these are PROGRAM RELATED INVESTMENTS. Schedule F, Part II, Line 1, Col D MDLF's primary exempt purpose is to support news outlets in countries with a history of oppression of the freedom of expression. Occasionally, MDLF will make grants to organizations in these countries to provide leading journalists with the support they need to create lasting institutions for change. true EURASIA FOUNDATION 1350 Connecticut Avenue NW WASHINGTON DC 20036 521780162 501(c)(3) 6000 Bill Maynes Grant 1 0 Schedule I, Part I, line 1 Media Development Loan Fund does not ordinarily make grants to organizations inside the United States; however, the organization received a request from the Eurasia Foundation to make a grant to the Bill Maynes Fund. The Bill Maynes Fund provides fellowships to exemplary leaders from the former Soviet Union. The fellowship will support early to mid-career professionals with a proven record of championing the values that the Eurasia Foundation and its network partners promote. It will provide Fellows with the opportunity to forge deep professional connections between experts and organizations in the US who specialize in the fellows' work. Media Development Loan Fund received an acknowledgement letter from the Eurasia Foundation notifying MDLF how the funds were expended. X X X false false false false false false false false false Joy Curtin 100389 0 0 0 6725 0 16207 0 12021 0 135342 0 0 0 Harlan Mandel 213750 0 0 0 1710 0 31770 0 33775 0 281005 0 0 0 Elena Popovic 144837 0 0 0 546 0 14954 0 12409 0 172746 0 0 0 Mari Budesa 153201 0 0 0 14478 0 22831 0 13095 0 203605 0 0 0 Annette Laborey OSI Officer SEE PART V 2420000 SEE PART V FOR COLUMNS C & D false Aryeh Neier OSI Board Member SEE PART V 2420000 SEE PART V FOR COLUMNS C & D false INTERESTED PERSONS SCHEDULE L, PART IV, COL B & D TWO MEDIA DEVELOPMENT LOAN FUND BOARD OF DIRECTOR MEMBERS, ARYEH NEIER AND ANNETTE LABOREY, HAVE A BUSINESS RELATIONSHIP WITH A SUBSTANTIAL CONTRIBUTOR, OPEN SOCIETY INSTITUTE. ARYEH NEIER IS the President OF THE OPEN SOCIETY INSTITUTE'S BOARD OF DIRECTORS, ANNETTE LABOREY IS AN OFFICER OF OPEN SOCIETY INSTITUTE. THE AMOUNT CONTRIBUTED IN 2011 WAS $2,420,000. In the interests of clarity, it should also be noted that Open Society Institute pays the salaries of all of the Media Development Loan Fund's compensated United States employees (See Schedule O). Form 990, Part V, line 2a THE INDIVIDUALS PERFORMING SERVICES FOR THE MEDIA DEVELOPMENT LOAN FUND, INC (MDLF) ARE LEASED EMPLOYEES FROM AN UNRELATED ORGANIZATION, OPEN SOCIETY INSTITUTE, INC (OSI). MDLF PAYS OSI A MANGAGEMENT AND ADMINISTRATIVE FEE TO COVER EMPLOYEE COSTS, INCLUDING SALARY, BENEFITS AND OTHER ANCILLARY COSTS. ALL EMPLOYEES PROVIDING SERVICES TO MDLF RECEIVE THEIR W-2 FROM OSI, THEREFORE, FOR PURPOSES OF PART V, LINE 2A, MDLF HAS NO EMPLOYEES TO REPORT ON A W-3 TO BE FILED WITH THE IRS. IN 2011, MDLF LEASED 12 EMPLOYEES FROM OSI. FORM 990, PART VI, LINE 11 THE FORM 990 HAS BEEN PROVIDED TO THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO FILING. ONCE APPROVED, A COPY OF THE FORM 990 WAS PROVIDED TO THE FULL BOARD. THE FORM 990 WAS PREPARED BY A NATIONALLY RENOWNED ACCOUNTING FIRM AND REVIEWED IN DETAIL BY THE FUND'S MANAGING DIRECTOR AND ASSISTANT TREASURER. FORM 990, PART VI, LINE 12C Each officer, director, trustee and key employee of MDLF is required to annually disclose any conflicts of interest that arise by virtue of their employment, board service, or position with the College. MDLF monitors compliance with its conflict of interest policy through an annual questionnaire/disclosure statement that is distributed to these individuals. Potential conflicts are investigated immediately. FORM 990, PART VI, LINE 15A THE TOP MANAGEMENT OFFICAL'S SALARY IS DETERMINED BY THE MDLF BOARD OF DIRECTORS. MDLF UNDERTAKES A LENGTHY PROCESS TO ENSURE THAT THE COMPENSATION IT PAYS IS REASONABLE. IN RELEVANT PART, THE BOARD OF DIRECTORS utilizes A COMPENSATION COMMITTEE COMPRISED OF Independent PERSONS THAT HAVE NO PERSONAL interest IN THE PROPOSED COMPENSATION ARRANGEMENT. The compensation committee may use an independent compensation consultant to advise on the appropriate compensation levels for the top management official. The compensation consultant uses benchmarking data that documents the compensation of persons holding similar positions in similar organizations. Once the compensation consultant has made its recommendations, the MDLF compensation committee approves the compensation. This final determination is then documented in committee minutes. Form 990, Part VI, Line 15B MDLF undertakes the same exact procedure for its officers and key employees as it does for its top management official. The only difference in the process is that the Managing Director will make the final determination about the officers' salaries. Form 990, Part VI, line 19 The taxpayer makes its Form 990 and Form 1023 available to the public by retaining a copy of each at the addresses listed on Page 1 of this return. Any individual requesting a copy of these documents is provided that copy on the same business day. The Organization's Form 990 is also available for public inspection on www.guidestar.org. The Organization's governing documents, conflict of interest policy, and financial statements are available at the public request and at management's discretion. PART XI, LINE 5 EQUITY IN NET EARNINGS OF INVESTEES $(627,395) Foreign Currency Translation Loss 123,951 Adjustment for provision for doubtful program-related investments, net (637,578) unrealized gains on investments (957,414) ------------ TOTAL: (2,098,436) ============ Digital News Ventures LLC 37 west 20th street new york NY 10011 134052259 PRI NY 0 0 NA MDLF Service Corp 37 west 20th street new york NY 10011 Agency Accoun DE NA C 1580 1.00000 false false false false false false false false false false false false true true false false false false DISREGARDED ENTITY SCHEDULE R, PART I MEDIA DEVELOPMENT LOAN FUND HAS A WHOLLY-OWNED SUBSIDIARY, Digital News Ventures, LLC (WHICH IS TREATED AS A DISREGARDED ENTITY FOR US TAX PURPOSES). THIS ORGANIZATION'S PRINCIPAL ACTIVITY IS THE HOLDING OF A FOREIGN INVESTMENT. THE AMOUNT REPORTED ON SCHEDULE R, COLUMN D REPRESENTS THE FUND'S PRO RATA SHARE OF THE INVESTEE'S NET PROFITS OR LOSSES. THIS INVESTMENT HAS BEEN REPORTED IN THE ORGANIZATION'S FINANCIAL STATEMENTS AS "EQUITY IN NET EARNINGS OR LOSSES OF INVESTEES".