Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
SWOPE COMMUNITY ENTERPRISES
Employer identification number
54-2081401
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
No
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
No
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
No
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
(1)
SWOPE COMMUNITY BUILDERS
431583953
7
Yes
Yes
Yes
230,000
Total
230,000
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2010.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2009.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2009.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c
Add lines 7a and 7b..
8
Public Support (Subtract line 7c from line 6.)
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
9
Amounts from line 6...
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f))
.........
15
16
Public support percentage from 2009 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f))
......
17
18
Investment income percentage from 2009 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2010.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2009.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2010
Additional Data
Software ID:
Software Version:
-
TIN:
SCHEDULE O (Form 990 or 990-EZ)
Department of the Treasury Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
SWOPE COMMUNITY ENTERPRISES
Employer identification number
54-2081401
Identifier
Return Reference
Explanation
FORM 990, PART VI, SECTION B, LINE 11
THE ORGANIZATION PRESENTS AND DISCUSSES A DRAFT OF ITS FORM 990 WITH THE ORGANIZATION'S SENIOR MANAGEMENT, AS WELL AS THE FINANCE & AUDIT AND COMPENSATION COMMITTEES OF THE BOARD OF DIRECTORS. THE REMAINING BOARD MEMBERS ARE PROVIDED WITH A COPY FOR REVIEW AND COMMENT, AS WELL. COMMENTS AND QUESTIONS OF THE REVIEWING INDIVIDUALS ARE ADDRESSED BY THOSE RESPONSIBLE FOR PREPARING THE FORM 990, AND APPROPRIATE MODIFICATIONS ARE MADE TO THE DRAFT BEFORE IT IS FILED.
FORM 990, PART VI, SECTION B, LINE 12C
ALL DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE THE CONFLICT OF INTEREST DISCLOSURE FORM AND PROVIDE PERIODIC UPDATES TO THE FORM AS MAY BE NECESSARY. ALL COMPLETED FORMS AND PERIOD UPDATES ARE PROVIDED TO GENERAL COUNSEL FOR THE CORPORATION FOR REVIEW AND SUBMISSION TO MEMBERS OF THE BOARD OF DIRECTORS. CONFLICTS IDENTIFIED THROUGH THIS PROCESS WILL REQUIRE RECUSAL OF THE DIRECTOR, OFFICER, OR KEY EMPLOYEE WHERE APPROPRIATE.
FORM 990, PART VI, SECTION B, LINE 15
THE ORGANIZATION'S GOVERNANCE STRUCTURE INCLUDES A COMPENSATION COMMITTEE, WHICH IS A STANDING COMMITTEE OF THE BOARD OF DIRECTORS OF SWOPE COMMUNITY ENTERPRISES. IN 2010 THE COMPENSATION COMMITTEE CONSISTED OF SIX INDEPENDENT DIRECTORS. THIS COMMITTEE PERIODICALLY REVIEWS AND MAKES RECOMMENDATIONS TO THE FULL BOARD OF DIRECTORS REGARDING COMPENSATION OF THE GROUP OF EMPLOYEES WHICH INCLUDES THE CEO, PRESIDENT, AND OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION AND CERTAIN OF ITS MEMBERS/AFFILIATES. THE COMPENSATION COMMITTEE RETAINS INDEPENDENT LEGAL COUNSEL, AND ALSO ENGAGES AN INDEPENDENT COMPENSATION CONSULTANT TO ADVISE AND ASSESS THE REASONABLENESS OF THE COMPENSATION FOR THIS GROUP OF EMPLOYEES. IN 2010 THE COMPENSATION COMMITTEE MET FIVE TIMES AND CONSIDERED COMPARABILITY DATA RELATED TO THE BASE AND TOTAL COMPENSATION PAID TO SIMILARLY SITUATED EXECUTIVES AT SIMILAR ENTITIES, AS PRESENTED BY ITS INDEPENDENT COMPENSATION CONSULTANT, AND CONTEMPORANEOUSLY DOCUMENTED ITS DECISIONS AND DELIBERATIONS. NONE OF THE EMPLOYEES IN THE GROUP OF OFFICERS AND KEY EXECUTIVES WHOSE COMPENSATION WAS DISCUSSED PARTICIPATED IN THE COMMITTEE'S DELIBERATIONS PERTAINING TO HIS/HER OWN COMPENSATION.
FORM 990, PART VI, SECTION C, LINE 19
THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE MADE AVAILABLE UPON REQUEST. PORTIONS OF THE FORM 990 ARE INCLUDED IN ON THE COMPANY'S WEBSITE.
CHANGES IN NET ASSETS OR FUND BALANCES:
FORM 990, PART XI, LINE 5:
NET UNREALIZED GAINS ON INVESTMENTS: 5,631,027. REIMBURSEMENT FROM SWOPE HEALTH FOUNDATION FOR FUND DEVELOPMENT COSTS 355,158. PASSHTHROUGH LOSS FROM TVAX INVESTORS, LLC 155,720. TOTAL TO FORM 990, PART XI, LINE 5: 6,141,905.
AUDIT PROCESS
FORM 990, PART XII, LINE 2C
THE ORGANIZATION'S GOVERNANCE STRUCTURE INCLUDES A FINANCE & AUDIT COMMITTEE, WHICH IS A SEPARATE STANDING COMMITTEE OF THE BOARD OF DIRECTORS. THIS COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT PROCESS, INCLUDING SELECTION AND ENGAGEMENT OF THE INDEPENDENT ACCOUNTANT PERFORMING THE AUDIT, AND REVIEWING/DISCUSSING THE RESULTS OF THE ANNUAL AUDIT WITH THE INDEPENDENT ACCOUNTANT.
RECONCILIATION OF CHANGE IN NET ASSETS FROM FORM 990 TO FINANCIAL STATEMENT
FORM 990, PART I, LINE 22
THE ORGANIZATION HAD UNREALIZED LOSSES ON INVESTMENTS IN THE AMOUNT OF $5,631,027, ALTHOUGH NOT REFLECTED IN STAND ALONE GAAP FINANCIAL STATEMENTS, IT IS INCLUDED ON THE CONSOLIDATED GAAP FINANCIAL STATEMENTS.
FOREIGN FINANCIAL ACCOUNT
FORM 990, PART V, LINE 4B
SCE INVESTS IN A PROFESSIONALLY-MANAGED PORTFOLIO SUPERVISED BY AN INVESTMENT COMMITTEE APPROVED BY THE BOARD OF DIRECTORS. SCE'S FORMAL INVESTMENT POLICY STATEMENT CREATES THE FRAMEWORK FOR A WELL-DIVERSIFIED PORTFOLIO, DESIGNED TO GENERATE LONG TERM RETURNS WITH AN ACCEPTABLE LEVEL OF RISK. THE PORTFOLIO IS ALLOCATED ACROSS VARIOUS TYPES OF INVESTMENTS: EQUITIES, FIXED INCOME SECURITIES, AND ALTERNATIVE INVESTMENTS. AS OF 12/31/10, APPROXIMATELY 9% OF THE OVERALL PORTFOLIO WAS INVESTED IN ALTERNATIVE HEDGE FUND POOLS THAT ARE INCORPORATED IN IRELAND AND THE CAYMAN ISLANDS, IN ACCORDANCE WITH THE SCE'S INVESTMENT POLICY STATEMENT. THESE ARE THE ONLY SCE ASSETS CUSTODIED OUTSIDE OF THE UNITED STATES.
NOMINATION AND CORPORATE GOVERNANCE COMMITTEE
FORM 990, PART VI, SECTION A, LINE 8B
THE NOMINATION AND CORPORATE GOVERNANCE COMMITTEE IS RESPONSIBLE FOR RECOMMENDING, TO THE FULL BOARD FOR APPROVAL, CHANGES IN BYLAWS AND PROPER GOVERNANCE PROCEDURES FOR THE CORPORATION. THIS COMMITTEE ALSO CONDUCTS AN ANNUAL EVALUATION OF THE BOARD, ASSESSES PERFORMANCE OF THE BOARD, PROVIDES ONGOING EDUCATION FOR MEMBERS OF THE BOARD, AND IDENTIFIES/NOMINATES/RECOMMENDS MEMBERS TO THE BOARD.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.