Grassroots Business Partners Inc.

“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).”

“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.”

“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.”

“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.”

“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.”

“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.”

“Form 990, Part VI, Line 8b No committees can act on behalf of the governing board.”

“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.”

“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.”

“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.”

“Form 990, Part VI, Line 19 All are available upon request. Additionally, financial statements are published in the annual report as well.”

“Description:long-term consultants total fees:291272”

“Description:short-term consultants total fees:51671”

“Description:contractual / it support total fees:33558”

“Description:consultant (bas) total fees:416626”