2024-11-13T07:40:33-06:00 2023-12-31 882730877 CHERRY BEKAERT ADVISORY LLC 1707 N RANDALL ROAD STE 200 ELGIN IL 60123 990 2023-01-01 300199985 CAPITALPLUS EXCHANGE CORPORATION CAPI 3125401580 8001 LINCOLN AVENUE 201 SKOKIE IL 60077 LYNN PIKHOLZ PRESIDENT & CEO 3125401580 2024-11-08 1 1 MELANIE MCPEAK P01346034 8478888600 2023 2024-10-15 13:58:12Z LYNN PIKHOLZ 8001 LINCOLN AVENUE 201 SKOKIE IL 60077 3830948 0 X CAPPLUS.ORG X 2003 DE CAPITALPLUS EXCHANGE CORPORATION ("CAPPLUS OR "THE ORGANIZATION") IS REGISTERED AS A NONPROFIT CORPORATION WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE ORGANIZATION OPERATES EXCLUSIVELY FOR CHARITABLE AND EDUCATIONAL PURPOSES, TO MAKE CAPACITY-BUILDING SERVICES AVAILABLE AT SUBSTANTIALLY BELOW COST TO FINANCIAL INSTITUTIONS IN DEVELOPING AND TRANSITIONAL MARKETS THAT SERVE SMALL BUSINESSES, MICRO ENTERPRISES, AND UNDERSERVED COMMUNITIES, TO PROMOTE ECONOMIC DEVELOPMENT, POVERTY REDUCTION AND OTHERWISE BENEFIT LOW-INCOME PERSONS. 8 8 3 8 0 0 2778449 3799514 42686 15277 887 15206 0 951 2822022 3830948 0 0 0 0 863931 822605 0 0 39375 2072249 2904311 2936180 3726916 -114158 104032 3193932 1297617 2519978 517840 673954 779777 X CAPITALPLUS EXCHANGE CORPORATION ("CAPPLUS OR "THE ORGANIZATION") IS REGISTERED AS A NONPROFIT CORPORATION WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE ORGANIZATION OPERATES EXCLUSIVELY FOR CHARITABLE AND EDUCATIONAL PURPOSES, TO MAKE CAPACITY-BUILDING SERVICES AVAILABLE AT SUBSTANTIALLY BELOW COST TO FINANCIAL INSTITUTIONS IN DEVELOPING AND TRANSITIONAL MARKETS THAT SERVE SMALL BUSINESSES, MICRO ENTERPRISES, AND UNDERSERVED COMMUNITIES, TO PROMOTE ECONOMIC DEVELOPMENT, POVERTY REDUCTION AND OTHERWISE BENEFIT LOW-INCOME PERSONS. 0 0 3074835 15277 CAPACITY BUILDING: THIS PROGRAM BUILDS FINANCIAL INSTITUTIONS' INTERNAL CAPABILITY TO EXPAND SERVICES TO UNDERSERVED POPULATIONS. CAPPLUS USES A TRANSPARENT AND CLIENT-DRIVEN PROCESS, ENSURING THAT CLIENTS' CAPACITY BUILDING NEEDS ARE MET AND THE NEW PRACTICES, POLICIES, AND PRODUCTS ARE EMBEDDED WITHIN THE ORGANIZATION. TYPICAL AREAS OF CAPACITY BUILDING INCLUDE: LENDING PRODUCT AND METHODOLOGY MANAGEMENT, RISK MANAGEMENT, HUMAN RESOURCE MANAGEMENT, NEW PRODUCT DEVELOPMENT AND INNOVATION, PIONEERING NEW PARTNERSHIPS FOR SERVICES' DELIVERY, AND IMPROVED OPERATIONS AND ENHANCED EFFICIENCIES, AS WELL AS STRENGTHENING THE FINANCIAL CAPABILITIES OF THEIR CLIENTS. SOME CLIENT FINANCIAL INSTITUTIONS ARE REQUIRED TO PAY FOR A SMALL PORTION OF THE COST. AT THIS TIME, CAPACITY BUILDING SERVICES ARE FOCUSED ON HELPING FINANCIAL INSTITUTIONS ADJUST TO ALL THE CHANGES IN THEIR BUSINESSES AS A RESULT OF COVID 19, IN ADDITION TO OUR ONGOING EFFORTS TO EXPAND SMALL BUSINESSES' ACCESS TO CREDIT. DURING 2023, CAPPLUS PROVIDED ONE-TO-ONE CAPACITY BUILDING TO 19 MICROFINANCE AND SMALL BUSINESS BANKS AND GROUP-BASED CAPACITY BUILDING TO 55 ADDITIONAL FINANCIAL INSTITUTIONS, PRIMARILY IN GHANA.. 265698 PARTNERSHIPS: CAPPLUS WORKS CLOSELY WITH ORGANIZATIONS THAT SHARE ITS MISSION TO SERVE SMALL BUSINESSES, MICRO-ENTERPRISE, UNDERSERVED COMMUNITIES AND BUSINESSES THAT PROVIDE A SOCIAL GOOD IN DEVELOPING AND TRANSITIONAL MARKETS. CAPPLUS' PARTNERS INCLUDE FOUNDATIONS, RESEARCH INSTITUTIONS, EDUCATION INITIATIVES, NGOS, AND INVESTMENT FUNDS AMONG OTHERS. THESE PARTNERSHIPS ALLOW CAPPLUS TO EXPLORE NEW FRONTIERS IN SME, SOCIAL FINANCE AND LEVERAGE JOINED CAPABILITIES TO ACHIEVE MORE POWERFUL IMPACT WHERE OUR MISSIONS INTERSECT. 53376 DUE DILIGENCE AND DIAGNOSTICS: CAPPLUS CONDUCTS DUE DILIGENCE/DIAGNOSTICS ON PROSPECTIVE FINANCIAL INSTITUTIONS CLIENTS TO ASSESS AN INSTITUTION'S STRENGTHS AND WEAKNESSES AND ESTABLISH THE PRIORITIES TO BE ADDRESSED IN THE TECHNICAL ASSISTANCE PLAN. THEY ARE A DISTINCT PART OF THE CAPACITY BUILDING WORK UNDERTAKEN BY CAPPLUS. DURING 2023, ABOUT 19 DIAGNOSTICS WERE UNDERTAKEN. 8400 ORIGINAL SOCIAL ENTERPRISE FINANCE: EDUCATION MARKETS IMPACT INITIATIVE (EMII): STARTING IN 2015, CAPPLUS BEGAN EXPLORING AN ADDITIONAL STRATEGY TO ACHIEVE OUR OBJECTIVE OF INCREASING ECONOMIC OPPORTUNITY, EQUITY, JOBS AND INCOMES: EQUIPPING FINANCIAL INSTITUTIONS TO PROVIDE TAILORED SERVICES TO AFFORDABLE SMALL, PRIVATELY-OWNED BUSINESSES THAT PROVIDE A SOCIAL GOOD (LIKE HEALTH, EDUCATION, WATER AND SANITATION ETC), STARTING FIRST WITH LOW-FEE PRIVATE SCHOOLS. THESE SCHOOLS ARE EDUCATING MILLIONS OF LOW-INCOME CHILDREN IN AFRICA AND SOUTHEAST ASIA WHERE GOVERNMENT SCHOOLS CANNOT KEEP UP WITH DEMAND AND WHERE SCHOOLS GOVERNMENT AND PRIVATE MAY NOT BE PROVIDING A QUALITY EDUCATION. IN RESPONSE, CAPPLUS ESTABLISHED THE EDUCATION MARKETS IMPACT INITIATIVE (EMII) TO BUILD THE CAPACITY OF FINANCIAL INSTITUTIONS TO PROVIDE FINANCIAL SERVICES TO THE PRIVATE SCHOOLS IN A WAY THAT ALSO DRIVES IMPROVEMENTS IN EDUCATION OUTCOMES AND CATALYZES A MARKET TRANSFORMATION SO PRIVATE SCHOOLS WILL NO LONGER BE FINANCIALLY EXCLUDED. CAPPLUS HAS VERIFIED THAT THOUSANDS OF SCHOOLS SERVE LOW-INCOME FAMILIES, ARE SEVERELY UNDERBANKED AND REPRESENT A SIGNIFICANT MARKET OPPORTUNITY FOR BANKS, WHILST MEETING THE NEEDS OF AFFORDABLE SCHOOL PROPRIETORS AND THE PARENTS WHO SEND THEIR CHILDREN TO THESE SCHOOLS. IN ADDITION, CAPPLUS HAS MET WITH SCORES OF BANKERS, MANY OF WHOM STATED THAT THEY NEED NEW SOURCES OF PATIENT AND AFFORDABLE CAPITAL TO MAKE LOANS TO SCHOOLS ON TERMS THE SCHOOLS CAN AFFORD. FOR THIS REASON, CAPPLUS ESTABLISHED A FOR-PROFIT ENTITY TO RECEIVE FUNDING INCLUDING DEBT FROM IMPACT INVESTORS THAT WILL BE UTILIZED TO PROVIDE FINANCING TO FINANCIAL INSTITUTIONS (DIRECTLY OR INDIRECTLY) FOR THE PURPOSE OF PROVIDING CREDIT TO AFFORDABLE PRIVATE SCHOOLS AND RELATED EDUCATION MARKETS. THE FOR-PROFIT ENTITY'S SOLE PURPOSE IS ENTIRELY TO SERVE THE MISSION AND DEVELOPMENT IMPACT OBJECTIVES OF CAPPLUS WITH DEBT SIMPLY BEING ANOTHER TOOL TO CATALYZE AND ACCELERATE IMPACT TO ACHIEVE CAPPLUS' MISSION: PROVIDING CAPITAL TO EXPAND CREDIT TO SMES, WHO IN TURN CREATE JOBS AND REDUCE POVERTY. IN THE CASE OF SCHOOLS, THE LINK BETWEEN EDUCATION AND INCREASED INCOMES IS WELL-ESTABLISHED: GLOBALLY, PEOPLE'S INCOMES INCREASE BY AN AVERAGE OF 10% FOR EACH YEAR OF COMPLETED EDUCATION, WITH HIGHER RATES OF RETURN FOR WOMEN AND IN LOW-INCOME COUNTRIES. ALSO, SCHOOLS CREATE JOBS FOR TEACHERS AND WORKERS, AS WELL AS MANY OTHER JOBS IN THE EDUCATION VALUE CHAIN, E.G. IN THE CONSTRUCTION INDUSTRY AS NEW SCHOOL CLASSROOMS ARE BEING BUILT. EDUCATION ALSO HELPS PREPARE CHILDREN TO BETTER JOBS AND OPPORTUNITIES IN THE WORKFORCE. THE PANDEMIC HAS CREATED SIGNIFICANT ECONOMIC CHALLENGES FOR SCHOOLS AND FINANCIAL INSTITUTIONS SO OUR ACTIVITIES DECLINED IN THIS AREA.PEER KNOWLEDGE EXCHANGE AND THOUGHT LEADERSHIP: PEER EXCHANGE PROMOTES QUICK DISSEMINATION AND ADOPTION OF INNOVATIONS AND GOOD PRACTICES THAT SUPPORT POVERTY REDUCTION IN DEVELOPING ECONOMIES THROUGH FINANCIAL INSTITUTIONS. KNOWLEDGE IS EXCHANGED PRIMARILY THROUGH WEBINARS, SESSIONS AT CONFERENCES OR MEETINGS, OR THROUGH THE PUBLICATION OF PAPERS, ARTICLES, AND RESEARCH SUMMARIES ("THOUGHT LEADERSHIP.") PERFORMANCE AND IMPACT MEASUREMENT: PERFORMANCE MEASUREMENT TRACKS CAPPLUS' IMPACT ON ITS CLIENTS, SUCH AS CLIENT'S LENDING TO SMALL BUSINESSES, WOMEN ENTREPRENEURS, IMPROVEMENTS IN DELINQUENCY RATES, AND OTHER INDICATORS. DONORS ARE RAISING THEIR EXPECTATIONS FOR IMPACT TRACKING AND NEW STANDARDS ARE EVOLVING IN THE INDUSTRY; THIS ACTIVITY WILL GROW CONSIDERABLY IN IMPORTANCE AND SCALE. IN 2023, CAPPLUS TRACKED THE IMPACT OF ITS CAPACITY BUILDING ON THE 19 FINANCIAL INSTITUTIONS IT ADVISED DIRECTLY, ESPECIALLY THE IMPACT ON SME FINANCE AND NONPERFORMING LOANS. IT ALSO TRACKED THE CHANGES TRIGGERED BY CAPPLUS' GROUP-BASED CAPACITY BUILDING WITHIN THE 755 OTHER FINANCIAL INSTITUTIONS WHOSE STAFF IT TRAINED. 8400 3402309 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 24 0 1 3 1 0 0 0 0 0 0 0 0 0 0 0 0 X 8 8 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X LYNN PIKHOLZ 3124046049 8001 LINCOLN AVENUE 201 SKOKIE IL 60077 ERIC FRIEDENWALD-FISHMAN CHAIRPERSON AND DIRECTOR 2.50 0.00 X X 0 0 0 JENNIFER HOFFMANN DIRECTOR 1.00 0.00 X 0 0 0 KARIM AHAMED DIRECTOR 1.00 0.00 X 0 0 0 CYRILLE ARNOULD DIRECTOR 1.00 0.00 X 0 0 0 NICHOLAS BURNETT DIRECTOR 1.00 0.00 X 0 0 0 NTHENYA MULE DIRECTOR 1.00 0.00 X 0 0 0 ISHMAEL MKHABELA DIRECTOR 1.00 0.00 X 0 0 0 VIMBAI TSOPOTSA DIRECTOR 1.00 0.00 X 0 0 0 LYNN PIKHOLZ CEO AND PRESIDENT 40.00 0.00 X 243638 0 18784 RULA DABABNEH TREASURER AND COO 40.00 0.00 X 192944 0 63280 LYNN RAILSBACK SECRETARY AND VICE PRESIDE 40.00 0.00 X 186837 0 0 623419 0 82064 3 0 1 0 OMTRIX INC ESCAZU CORPORATE CENTER 6TH FLOOR SAN JOSE CS CONSULTING SERVICES 247908 GHANA MICROFINANCE INSTITUTIONS NETWORK GHAMFIN HOUSE BOX AH/1392 ASHONGMAN BRIDGE ACCRA GH TRAINING SERVICES 132720 AYELE BINYAM TADESSE BOLE SUB CITY WOREDA 9 ADDIDIS ABABA ET CONSULTING SERVICES 119990 GOMASHIO LIMITED 14 CENTURY CLOSE CIRENCHESTER UK CONSULTING SERVICES 118243 4 128607 3670907 3799514 PROGRAM FEES 541610 15277 15277 15277 15206 15206 951 951 951 3830948 15277 0 16157 X 623419 484882 116024 22513 83636 57676 21647 4313 83537 57608 21622 4307 32013 22076 8286 1651 14689 13162 1143 384 45611 860 44751 2264905 2228230 36675 32053 25794 6215 44 23849 16951 5954 944 50402 35517 12364 2521 447430 444641 1125 1664 19912 13813 5065 1034 MEMBERSHIPS AND DUES 1194 1099 95 4266 4266 3726916 3402309 285232 39375 1666803 781570 1465296 445212 10766 10142 48611 59789 44039 43135 2456 904 3193932 1297617 480045 130826 2039933 387014 2519978 517840 X 673954 779777 673954 779777 3193932 1297617 104032 1791 0 X 0 1 X 1 0 X 399710 214122 939992 2778449 3799514 8131787 399710 214122 939992 2778449 3799514 8131787 61157 8070630 21381 17585 4376 887 15206 59435 951 951 8192173 408139 0.98520 0.47390 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 32014 32014 0 11525 10621 904 500 500 0 904 X 3832739 1791 1791 3830948 0 3830948 3726916 0 3726916 0 3726916 PART X, LINE 2: THE CORPORATION IS EXEMPT FROM FEDERAL INCOME TAXES AS A RESULT OF ITS STATUS AS A NOT-FOR-PROFIT ORGANIZATION AS DESCRIBED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE CORPORATION HAS EVALUATED ITS TAX POSITIONS TAKEN FOR ALL OPEN TAX YEARS. CURRENTLY, THE 2020, 2021 AND 2022 TAX YEARS ARE OPEN AND SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE; HOWEVER, THE CORPORATION IS NOT CURRENTLY UNDER AUDIT NOR HAS THE CORPORATION BEEN CONTACTED BY ANY OF THESE JURISDICTIONS. THE CORPORATION HAS ELECTED TO TREAT CAPPLUS IMPACT LLC AS A CORPORATION FOR U.S. INCOME TAX PURPOSES, RATHER THAN A DISREGARDED ENTITY. CONSEQUENTLY, AFTER IT IS OPERATIONAL, IT WILL BE SUBJECT TO CORPORATE INCOME TAXES. BASED ON AN EVALUATION OF THE CORPORATION'S TAX POSITIONS, MANAGEMENT BELIEVES ALL POSITIONS TAKEN WOULD BE UPHELD UNDER AN EXAMINATION; THEREFORE, NO PROVISION FOR THE EFFECTS OF UNCERTAIN TAX POSITIONS HAS BEEN RECORDED FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. THE CORPORATION DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. SUB-SAHARAN AFRICA 1 75 PROGRAM SERVICES CAPITALPLUS EXCHANGE PERFORMED NEEDS ASSESSMENTS AND ONSITE CAPACITY BUILDING WORK AT MICROFINANCE AND SMALL BUSINESS BANKING FINANCIAL INSTITUTIONS IN COUNTRIES INCLUDING KENYA, UGANDA, GHANA, COTE D'IVOIRE AND SENEGAL. 3726916 1 75 0 0 1 75 3726916 0 3726916 0 0 0 0 0 0 X X X 0 0 0 0 0 0 0 0 0 LYNN PIKHOLZ CEO AND PRESIDENT 188012 0 25626 0 30000 0 12618 0 6166 0 262422 0 0 0 RULA DABABNEH TREASURER AND COO 144278 0 18666 0 30000 0 12065 0 51215 0 256224 0 0 0 LYNN RAILSBACK SECRETARY AND VICE PRESIDE 0 0 4000 0 182837 0 0 0 0 0 186837 0 0 0 FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION UPDATED ITS BYLAWS MAINLY TO UPDATE OLD INFORMATION THERE AND TO MAKE CHANGES INCLUDING CHANGES TO THE LENGTH OF EACH TERM OF THE DIRECTORS TO BE FIVE YEARS INSTEAD OF FOUR YEARS, ALLOWED DIRECTORS TO SERVE AGAIN ON THE BOARD AFTER THE MAXIMUM ALLOWED PERIOD ON THE BOARD AFTER A ONE YEAR ABSENCE, MODIFIED THE ACTIONS TAKEN WITHOUT MEETINGS VIA ELECTRONIC TRANSMISSION TO STATE THAT NO RESPONSE WITHIN 7 DAYS OF THE REQUEST IS CONSIDERED AN AFFIRMATIVE RESPONSE, AND ALLOWED THE DIRECTORS TO FORM ONE OR MORE COMMITTEES. FORM 990, PART VI, SECTION B, LINE 11B EACH MEMBER OF THE BOARD OF DIRECTORS RECEIVES A COPY OF THE FORM 990 PRIOR TO FILING. THE BOARD HAS DELEGATED THE RESPONSIBILITY OF REVIEWING THE DOCUMENT IN DEPTH TO THE AUDIT COMMITTEE. THIS COMMITTEE REVIEWS THE DOCUMENT AND PROVIDES COMMENTS, IF ANY, TO THE FULL BOARD. FORM 990, PART VI, SECTION B, LINE 12C CAPITALPLUS EXCHANGE HAS A CONFLICTS OF INTEREST POLICY AND A PROCUREMENT POLICY, WHICH THE BOARD'S ACTIVE AUDIT COMMITTEE OVERSEES. ALL EMPLOYEES OF CAPITALPLUS EXCHANGE AS WELL AS BOARD DIRECTORS ARE REQUIRED TO SIGN AN ANNUAL CONFLICTS OF INTEREST POLICY CERTIFICATION AND DISCLOSE ANY CONFLICTS OF INTEREST TO THE AUDIT COMMITTEE. SERVICE PROVIDERS ARE ALSO ASKED TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST TO THE CAPITALPLUS PRESIDENT AND THE AUDIT COMMITTEE. THE AUDIT COMMITTEE REVIEWS A MANAGEMENT PREPARED PROCUREMENT REPORT LISTING ALL CONTRACTS, CONTRACTORS AND AWARDED AMOUNTS AT LEAST TWO TIMES PER YEAR. IF A CONFLICT OF INTEREST IS SHOWN TO EXIST, THE BOARD OR AUDIT COMMITTEE WOULD DECIDE ON WHAT FURTHER ACTION WOULD NEED TO BE TAKEN. FORM 990, PART VI, SECTION B, LINE 15 RESEARCH WAS DONE USING PUBLICALLY AVAILABLE DATA FOR COMPARABLE POSITIONS IN THE PAST YEARS. IN ADDITION, SIMILAR ORGANIZATIONS WERE SELECTED AND THE COMPENSATION FOR THEIR CEO'S WAS EVALUATED, SINCE ALL WERE 501(C)(3)'S, THE INFORMATION WAS PUBLICALLY AVAILABLE ON THE WEB. THE RESEARCH WAS DONE IN HOUSE BY THE FINANCE, ADMINISTRATION, AND OPERATIONS TEAM, AND PRESENTED TO THE BOARD. THE BOARD REVIEWED, DISCUSSED AND NOTED THAT COMPENSATION AT CAPPLUS IS GENERALLY IN LINE WITH THE INDUSTRY. THE RESEARCH WAS DONE FOR ALL POSITIONS OF THE COMPANY, WITH PARTICULAR ATTENTION TO COO AND CEO POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 THE FORM 990 IS AVAILABLE ON GUIDESTAR'S WEBSITE AND BOTH THE FORM 990 AND FORM 1023 ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CONTRACTED PROFESSIONAL SERVICE FEES: PROGRAM SERVICE EXPENSES 2,228,230. MANAGEMENT AND GENERAL EXPENSES 36,675. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,264,905. CAPPLUS IMPACT LLC 8001 LINCOLN AVE STE 201 SKOKIE IL 60077 831096420 FINANCE, RECEIVE AND DEPLOY DEBT FINANCING DE CAPITALPLUS EXCHANGE CORPORATION C 1.00000 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0