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. Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
GRASSROOTS BUSINESS PARTNERS INC
Employer identification number
26-2108051
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 supported organization?
................
11g(i)
(ii)
A family member of a person described in (i) above?
......................
11g(ii)
(iii)
A 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
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 monetary support
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 2
Part II
Support Schedule for Organizations Described in Sections 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) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
183,026
50,371
10,240,642
1,027,167
999,387
12,500,593
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
0
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
0
4
Total. Add lines 1 through 3
183,026
50,371
10,240,642
1,027,167
999,387
12,500,593
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)..
3,754,026
6
Public support. Subtract line 5 from line 4.
8,746,567
Section B. Total Support
Calendar year
(or fiscal year beginning in)
(a) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(f) Total
7
Amounts from line 4..
183,026
50,371
10,240,642
1,027,167
999,387
12,500,593
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
31,893
22,206
6,171
1,526
1,696
63,492
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
0
10
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
21,195
131,025
41,553
81,257
57,533
332,563
11
Total support (Add lines 7 through 10).
12,896,648
12
Gross receipts from related activities, etc. (see instructions)
..................
12
4,389,007
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 2013 (line 6, column (f) divided by line 11, column (f))
.........
14
67.820 %
15
Public support percentage for 2012 Schedule A, Part II, line 14
...............
15
0 %
16a
33 1/3% support test—2013.
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—2012.
If the organization did not check a 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—2013.
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—2012.
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) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 3
Part III
Support Schedule for Organizations Described in Section 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) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(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) 2009
(b) 2010
(c) 2011
(d) 2012
(e) 2013
(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 2013 (line 8, column (f) divided by line 13, column (f))
.........
15
16
Public support percentage from 2012 Schedule A, Part III, line 15
...............
16
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2013 (line 10c, column (f) divided by line 13, column (f))
......
17
18
Investment income percentage from 2012 Schedule A, Part III, line 17
.............
18
19a
33 1/3% support tests—2013.
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—2012.
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) 2013
Schedule A (Form 990 or 990-EZ) 2013
Page 4
Part IV
Supplemental Information.
Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and 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) 2013
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.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2013
Open to Public Inspection
Name of the organization
GRASSROOTS BUSINESS PARTNERS INC
Employer identification number
26-2108051
Return Reference
Explanation
Organization Structure
GRASSROOTS BUSINESS FUND (GBF), a brand of entities, delivers a distinctive blend of investment capital and business advisory services through two main vehicles working together: a private investment fund and a non-profit organization. Through the fund, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I), GBF makes equity, mezzanine equity, mezzanine debt, and straight debt investments. These customized investment structures ensure that GBF's investment performance aligns with the businesses' performance. The fund delivers a form of capital suitable for long-term investment in businesses servicing low income communities. In tandem, the non-profit GRASSROOTS BUSINESS PARTNERS, INC. (GBP), provides business advisory services to clients in the fund. GBF's staff, expert consultants, and local service providers focus on enhancing financial and strategic planning, corporate governance, human resource management, marketing, supply chain management, and management information systems (MIS). Additionally GBP, manages the investment fund, and looks for way to further the field for impact investing through knowledge sharing and platform development. Significant Changes to Program Services Form 990, Part III, Line 3 GBP no longer directly makes investments in high impact businesses, instead these are done through the partner organization, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I).
Program Service Accomplishments
Form 990, Part III, Line 4A Through its partner organization, GRASSROOTS BUSINESS INVESTORS I, LP (GBI-I), GBI-I invests in high impact businesses that are typically small or midsized by international standards, but economically engage large numbers of the poor. GBI-I's investment fund makes equity, quasi-equity, and debt investments. These let GBI-I share the businesses' risks and returns, while providing a form of capital suitable for long-term, wealth creating businesses. The target investment size is currently between $750,000 and $2,500,000 and has an average investment horizon of 5-7 years. The current active portfolio ($29.9 million) annually supports 9.2 million people, by creating over $49.2 million in economic value through income and savings.
Program Service Accomplishments
Form 990, Part III, Line 4B GBF's capacity building programs are a combination of business advisory services (BAS) funded through grants and hands-on management support from GBF staff and its partners. These capacity building programs include improvements to governance, general management, reporting, management information systems (MIS), and business/financial planning. These programs are delivered by experienced external consultants, GBF staff, and through our partnerships with other local businesses. GBF's BAS falls into six main categories: financial management, operations, corporate governance and human capacity, strategy, legal and regulatory, and environmental and social. Over the past three GBF has disbursed over $2.5 million in technical assistance.
Program Service Accomplishments
Form 990, Part III, Line 4C GBF is heavily involved in building the field around impact investing by working closely with partner organizations, piloting new initiatives, and contributing lessons learned to a broad audience. As part of partnership building, GBF is a member of numerous working groups including those focused on impact investment. As the organization grows a continued effort towards external dissemination of information on the successes and lessons learned relating to impact investing will be critical for our advancing of the field. Total number of individuals employed by the Organization Form 990, Part V, Line 2a During fiscal year 2014, GBF employed globally as either employees or near full time consultants 30 individuals across all 5 of its regional operations.
Relationship Between Board Members
Form 990, Part VI, Line 2 THE FOLLOWING DIRECTORS OF THE ORGANIZATION ARE ALSO INVESTORS IN A RELATED PARTNERSHIP, GRASSROOTS BUSINESS INVESTORS I, LP: - ANDREW ADELSON - HAROLD ROSEN - STEPHEN BRENNINKMEIJER - MWAGHAZI MWACHOFI EACH OF THE ABOVE DIRECTORS CONTRIBUTED CAPITAL TO THE PARTNERSHIP AND RECEIVED A CORRESPONDING INVESTMENT INTEREST IN THE PARTNERSHIP. NONE OF THE INVESTORS SERVE ON THE BOARD NOR DO THEY RECEIVE COMPENSATION FROM GRASSROOTS BUSINESS INVESTORS I, LP.
Decisions Subject to Approval
Form 990, Part VI, Line 7b In addition to GBP's board, there is a Fund Advisory Committee (FAC) which governs the management of GBI-I's funds, the FAC is comprised of some large investors in the fund. Additionally, there is an investment committee which votes on which high impact businesses will receive funding. This committee must contain a member of GBP's Governing Board who has veto rights.
Contemporaneous Documentation - Committees
Form 990, Part VI, Line 8b No committees can act on behalf of the governing board.
Form 990 Review Process
Form 990, Part VI, Line 11b On an annual basis, the audited financial statements of the Grassroots Business partners, inc. and completed Form 990 are submitted to the Board of Directors' Finance Committee for review and approval, prior to filing the Form 990 with the internal revenue service. At the request of the Board of Directors, a representative of the independent accounting firm may attend the Board of Directors' meeting to answer any questions related to the financial condition/position of the Grassroots Business Fund.
Conflict of Interest Policy Monitoring & Enforcement
Form 990, Part VI, Line 12c GBF currently has a Conflict of Interest Policy which covers all employees and the board of directors. GBF's conflict of interest policy was reviewed and approved by GBF's Board of Directors. GBF requires each board member and employee to sign a conflict of interest disclosure form on an annual basis. The form requires that any current or potential conflicts of interest be disclosed. Should a potential new conflict be disclosed, it is reviewed at either the board or senior management level to determined whether it is an actual conflict. If it is deemed a conflict of interest, the employee or board member is excluded from any decision-making meetings and decisions relating to the transaction.
Process for Determining Compensation
Form 990, Part VI, Lines 15a & 15B The Board of Directors reviews and approves the general structure of the organization's compensation as well as the specific compensation of the management team. The Board governs compensation and bonus administration. The Board decides the general level of compensation for all Staff. Staff is compensated based on industry averages and then compensation is approved by Management. Management's compensation is evaluated annually and approved by the Board. The most recent review of management compensation took place in June 2014, utilizing performance as well and comparable data to determine the final level of compensation for managers. All full time employees are eligible for a bonus equal to a maximum percentage of their gross annual base salary as determined in their written employment contract. The board reviews the overall allocation of bonuses and in detail determines and approves the bonuses for Management.
How Documents are Made Available to the Public
Form 990, Part VI, Line 19 All are available upon request. Additionally, financial statements are published in the annual report as well.
FORM 990 PART IX LINE 11G
DESCRIPTION:LONG-TERM CONSULTANTS TOTAL FEES:291272
FORM 990 PART IX LINE 11G
DESCRIPTION:SHORT-TERM CONSULTANTS TOTAL FEES:51671
FORM 990 PART IX LINE 11G
DESCRIPTION:CONTRACTUAL / IT SUPPORT TOTAL FEES:33558
FORM 990 PART IX LINE 11G
DESCRIPTION:CONSULTANT (BAS) TOTAL FEES:416626
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.