| FORM 990, PART I, LINE I: |
MEDIA DEVELOPMENT INVESTMENT FUND, INC (MDIF) INVESTS IN INDEPENDENT MEDIA AROUND THE WORLD PROVIDING THE NEWS, INFORMATION AND DEBATE THAT PEOPLE NEED TO BUILD FREE, THRIVING SOCITIES. |
| FORM 990 PART III, LINE 1, DESCRIPTION OF MDIF'S MISSION CONTINUATION: |
WE INVEST IN MEDIA THAT PROVIDE THE NEWS, INFORMATION AND DEBATE THAT PEOPLE NEED TO BUILD FREE, THRIVING SOCIETIES. MDIF HAS INVESTED MORE THAN $236.2 MILLION IN 122 INDEPENDENT NEWS BUSINESSES IN 42 COUNTRIES SINCE 1996. WHY WE ARE HERE: TIMELY, ACCURATE, RELEVANT INFORMATION IS CRITICAL TO FREE SOCIETIES. IT ENABLES FULLER PARTICIPATION IN PUBLIC LIFE, HOLDS THE POWERFUL TO ACCOUNT AND PROTECTS THE RIGHTS OF THE INDIVIDUAL. HOW WE CHOOSE CLIENTS AND AREAS OF OPERATIONS: MDIF INVESTS IN INDEPENDENT MEDIA COMPANIES IN A RANGE OF COUNTRIES WHERE ACCESS TO FREE AND INDEPENDENT MEDIA IS UNDER THREAT. CLIENTS ARE SELECTED BASED ON THREE BROAD CRITERIA: MISSION IMPACT IN RELATION TO INVESTMENT; POTENTIAL FOR LONG-TERM VIABILITY; EDITORIAL INTEGRITY. HOW WE WORK: MDIF FINANCIAL INVESTMENTS INCLUDE AFFORDABLE LOANS, EQUITY INVESTMENTS, LOAN GUARANTEES AND TECHNICAL ASSISTANCE GRANTS. MDIF MOBILIZES OTHER INVESTORS TO MAXIMIZE THE IMPACT OF ITS FINANCING. MDIF SEEKS TO ESTABLISH LONG-TERM RELATIONSHIPS WITH ITS CLIENTS, WHICH MAY INVOLVE ADVICE AND ASSISTANCE IN BUSINESS PLANNING, MEDIA MANAGEMENT AND OTHER TECHNICAL SUPPORT. PROVIDING ACCESS TO CAPITAL: MDIF CLIENTS ARE STARVED OF CAPITAL BECAUSE THEY WORK IN ENVIRONMENTS WITH POORLY DEVELOPED BANKING SYSTEMS, DISTORTED MARKETS AND UNFAVORABLE INVESTMENT CLIMATES. OFTEN, THEY WORK IN TRANSITION ECONOMIES OR UNDER GOVERNMENTS THAT ARE HOSTILE TO THE IDEA OF FREE AND INDEPENDENT MEDIA. IN ALL CASES, A LACK OF FUNDS IS THE MAIN OBSTACLE TO THEIR GROWTH AND DEVELOPMENT AND SERIOUSLY HAMPERS THEIR ABILITY TO BE COMMERCIALLY VIABLE AND SELF-SUSTAINING. THE CHANGING LANDSCAPE OF MEDIA AND INVESTMENT IN THE LAST DECADE: A TECHNOLOGICAL REVOLUTION HAS TRANSFORMED THE MEDIA BUSINESS AND THE WAY PEOPLE ACCESS NEWS AND INFORMATION ACROSS THE WORLD. DIGITAL NEWS VENTURES (DNV), A SUBSIDIARY OF MDIF, INVESTS IN EXPERIMENTAL DIGITAL PRODUCTS AND BUSINESSES THAT CONTRIBUTE TO THE PROVISION OF INFORMATION IN THE PUBLIC INTEREST. |
| FORM 990, PART III, LINE 4A CONTINUATION: |
IN DETERMINING WHETHER TO MAKE A PRI, THE FUND FACES BOTH COUNTRY AND LEGAL RISK. THE FUND MAKES PRIS IN COUNTRIES WHERE POLITICAL AND ECONOMIC 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. |
| FORM 990, PART V, LINE 2A: |
THE ORGANIZATION USES A PROFESSIONAL EMPLOYMENT ORGANIZATION TO REPORT PAYROLL. THE W-2S ARE REPORTED UNDER TRINET INC., AND UNDER THEIR EIN # 48-1304650. |
| FORM 990, PART VI, SECTION A, LINE 3 |
THE ORGANIZATION USES THE SERVICES OF A CONTRACTED DEPUTY CEO, MOHAMED NANABHAY, AND PAID $234,061 FOR THESE SERVICES. |
| FORM 990, PART VI, SECTION B, LINE 11B |
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 AN INDEPENDENT ACCOUNTANT AND REVIEWED IN DETAIL BY THE FUND'S CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. |
| FORM 990, PART VI, SECTION B, LINE 12C |
EACH OFFICER, DIRECTOR, AND KEY EMPLOYEE OF MDIF IS REQUIRED TO ANNUALLY DISCLOSE ANY CONFLICTS OF INTEREST THAT ARISE BY VIRTUE OF THEIR EMPLOYMENT, BOARD SERVICE, OR POSITION WITH THE COLLEGE. MDIF 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, SECTION B, LINE 15 |
MEDIA DEVELOPMENT INVESTMENT FUND'S BOARD OF DIRECTORS HAS AUTHORIZED THE COMPENSATION COMMITTEE TO CONDUCT A REVIEW OF THE CHIEF EXECUTIVE OFFICER'S PERFORMANCE AND DETERMINE HIS COMPENSATION PACKAGE. THE COMMITTEE IS COMPRISED OF INDEPENDENT DIRECTORS (THE CHAIR, THE VICE-CHAIR, AND THE TREASURER) WHO ESTABLISH THE CEO'S COMPENSATION COMMENSURATE WITH THE SALARIES PAID BY SIMILAR ORGANIZATIONS IN BOTH THE NOT-FOR-PROFIT AND IMPACT INVESTING SECTORS. THE COMMITTEE THEN REPORTS ITS FINDINGS TO THE FULL BOARD OF DIRECTORS AND RECOMMENDS A SALARY OF COMPENSATION PACKAGE. THE FULL BOARD REVIEWS THE COMMITTEE'S RECOMMENDATIONS AND APPROVES THE FINAL COMPENSATION PACKAGE. FORM 990, PART VI, LINE 15B: THE BOARD OF DIRECTORS HAS FULLY DELEGATED THE AUTHORITY TO REVIEW PERFORMANCE AND SET THE COMPENSATION OF MDIF'S OTHER OFFICERS TO THE CHIEF EXECUTIVE OFFICER. IN MAKING HIS DETERMINATION, THE CEO EMPLOYS THE SAME COMPARABILITY METRICS AS THE COMPENSATION COMMITTEE UTILIZES (AS OUTLINED IN THE PART VI, SECTION B, LINE 15A NARRATIVE). |
| FORM 990, PART VI, SECTION C, 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. |
| FORM 990, PART XI, LINE 9: |
EQUITY IN NET LOSSES OF INVESTEES -268,149. |
| FORM 990, PART IX, LINE 9: |
THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. |
Attach to Form 990 or 990-EZ.