2011-10-06T13:09:31-04:00 2010-12-31 GRANT THORNTON LLP 666 THIRD AVENUE NEW YORK NY 100174011 990 2010-01-01 134052259 Media Development Loan Fund Inc MEDI 2128071304 37 West 20th Street New York NY 10011 Mari Budesa 2011-10-06 2125990100 2010 2016-03-07 17:11:31Z Sasa Vucinic 37 West 20th Street New York NY 10011 6231638 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. 9 7 0 0 0 0 3634716 2402143 12604263 3255707 702674 459850 -126817 113938 16814836 6231638 1017456 674011 0 0 2352898 2639467 0 0 0 1995714 2260008 5366068 5573486 11448768 658152 54082684 52961235 14405017 15438333 39677667 37522902 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 4280105 674011 3255707 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. 4280105 true true 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 10 0 true 0 false true UK RS RI EZ PL FR false false false false false false false false X 9 7 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 Ying-Yuen Chan 2.0 X 0 0 0 Sheila Coronel 2.0 X 0 0 0 Annette Laborey 2.0 X 0 0 0 Gerald Nagler 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 3000 0 0 Sasa Vucinic 40.0 X X 317080 0 0 BERNARD POULET 2.0 X X 0 0 0 Elena Popovic 40.0 X 137671 0 24285 Mari Budesa 40.0 X 152572 0 33404 Harlan Mandel 40.0 X 179710 0 56301 Jaroslaw Gora 40.0 X 120785 0 0 Anna Krynska 40.0 X 127234 0 0 Patrice Schneider 40.0 X 119100 0 0 1157152 0 113990 7 false true true 0 922143 1480000 2402143 PROGRAM RELATED INVESTMENTS/INTEREST ON LOANS 900099 1850212 1850212 SALE OF PROGRAM RELATED INVESTMENTS 900099 1405495 1405495 3255707 459850 459850 0 0 0 0 0 0 CONSULTING FEES 900099 69853 69853 MONITORING FEES 900099 41590 41590 MISCELLANEOUS 900099 2495 2495 113938 6231638 3255707 0 573788 11000 11000 0 663011 663011 0 901023 675604 225419 0 1355166 1016129 339037 48933 36691 12242 191155 143332 47823 143190 107367 35823 0 128345 119020 9325 69739 0 69739 0 0 76349 0 76349 224547 142785 81762 0 216114 152906 63208 155697 107521 48176 0 252403 179185 73218 421481 261072 160409 0 235228 235228 0 299413 299413 0 0 71808 49115 22693 16930 11645 5285 MEMBERSHIP FEES 28969 19926 9043 MAINTENANCE OF EQUIPMENT 28217 19409 8808 TRANSLATION SERVICES 12538 12538 0 STAFF TRAINING/DEVELOPMENT 10191 7641 2550 TAXES-OTHER 4199 4199 0 7840 5368 2472 5573486 4280105 1293381 0 2926569 2197518 12900145 2566777 428232 860000 525105 824891 938729 805236 115021 133493 10860731 18484177 26326881 27894379 54082684 52961235 232943 1059037 14499 13524 14157575 14365772 14405017 15438333 X 37113143 34790093 2564524 2732809 39677667 37522902 54082684 52961235 X 658152 -2812917 X false true true X false X 7979240 5585714 5070686 3434470 2402143 24472253 7979240 5585714 5070686 3434470 2402143 24472253 16723027 7749226 424092 364477 666129 702674 444988 2602360 100988 101377 477510 0 2495 682370 27756983 31973493 0.27918 0.28140 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 28%. 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 17418792 4000000 724267 3582533 76349 18484177 8586800 7694440 1147886 10334 17418792 8578818 7982 8586800 1.00000 199323 167866 31457 313561 290709 22852 425848 346664 79184 133493 PRINT 28746373 C TELEVISION 6611159 C RADIO 2079880 C ONLINE 1157986 C NEWS AGENCY 881757 C OTHER 192147 C UNREMITTED EQUITY IN NET -1558997 C EARNINGS OF EQUITY INVESTEES C 27894379 0 0 6231638 5573486 658152 295706 -3108623 -2812917 -2154765 3846056 295706 -2681288 -2385582 6231638 6231638 6000821 427335 427335 5573486 5573486 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 The Fund follows the 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 guidance, the Fund may recognize the tax benefit from an uncertain tax position only if it is more-likely-than-not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses derecognition, classification, interest and penalties on income taxes, and accounting in interim periods. Reconciliation of Net Assets Schedule D, Part XI, Line 8 EQUITY IN NET EARNINGS OF INVESTEES...... $(515,771) Foreign Currency Translation Loss........ (720,361) Adjustment for provision for doubtful program-related investments, net......... (427,335) Foreign Exchange Loss....................(1,445,156) ----------- TOTAL: (3,108,623) Reconciliation of Revenue Schedule D, Part XII, Line 2d EQUITY IN NET EARNINGS OF INVESTEES......$(515,771) Foreign Currency Translation Loss........ (720,361) Foreign Exchange Loss...................(1,445,156) ------------ Total: $(2,681,288) Reconciliation of Expenses Schedule D, Party XIII, Line 2D Adjustment for provision for doubtful program-related investments, net................(427,335) true Russia and the Newly Independent States 1 4 Program Services program related inv. 4258 Sub-Saharan Africa 0 0 Program Services program related inv. 48490 South Asia 0 2 Program Services program related inv. 368757 Europe (Including Iceland and Greenland) 2 12 Program Services program related inv. 234306 South America 0 0 Program Services program related inv. 4200 Central America and the Caribbean 0 0 Program Services program related inv. 3000 3 18 3 18 663011 663011 Europe/Iceland/Greenland T/A-LEGAL FEES 6196 Europe/Iceland/Greenland Travel Grant 86408 South Asia Travel Grant 19615 Europe/Iceland/Greenland LEGAL DEFENCE-PASS TROUGH 125000 South Asia T/A-OPERATIONS 336607 Sub-Saharan Africa TECHNICAL ASSISTANCE-MARKETING EXPENSES 30000 0 0 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 represents the current year expenditures on the investments and should tie back to Part IX, Line 3. 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 6000 Bill Maynes Grant 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 on December 16, 2009 notifying MDLF how the funds were expended. X X X false false false false false false false false false Annette Laborey 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Aryeh Neier 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sasa Vucinic 317080 0 0 0 0 0 0 0 0 0 317080 0 0 0 Harlan Mandel 161500 0 0 0 18210 0 26700 0 29601 0 236011 0 0 0 Elena Popovic 135205 0 0 0 2466 0 13767 0 10518 0 161956 0 0 0 Mari Budesa 123048 0 0 0 29524 0 22886 0 10518 0 185976 0 0 0 Annette Laborey OSI Officer SEE SCHEDULE O SEE SCHEDULE O FOR COL C & D true Aryeh Neier OSI Board Member SEE SCHEDULE O SEE SCHEDULE O FOR COL C & D true 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 2010, 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 (SASA VUCINIC) 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 Mr. Vucinic. 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 KEY EMPLOYEES' 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. 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 a member of the Open Society Institute's Board of Directors, Annette Laborey is an officer of Open Society Institute. The amount contributed in 2010 was $1,250,000. Schedule R, Part I MEDIA DEVELOPMENT LOAN FUND HAS A WHOLLY-OWNED SUBSIDIARY, MEDIA DEVELOPMENT EQUITY FUND 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". PART XI, LINE 5 EQUITY IN NET EARNINGS OF INVESTEES...... $(515,771) Foreign Currency Translation Loss........ (720,361) Adjustment for provision for doubtful program-related investments, net......... (427,335) unrealized gains on investments............1,138,531 ----------- TOTAL: (524,936) Media Development Equity Fund LLC 37 west 20th street new york NY 10011 PRI NY 0 0 NA MDLF Service Corp 37 west 20th street new york NY 10011 Agency Accoun DE NA C 0 0 1.00000 false false false false false false false false false false false false true true false false false false