Financials

2013 Financials

Social Investment Fund Quarterly Digest

2014 Q2 SIF Digest

2014 Q1 SIF Digest

 

2013 Financials

RSF had a strong year of growth in 2013. We increased total assets by 7% to $163.3 million. In developing an increasing number of relationships with clients, we received a 13.5% increase in total investment funds, reaching over $100 million from 1522 investors. We also made $27 million in loans (12% over 2012) and $12 million in grants (50% over 2012) to social enterprises working across our focus areas of Food & Agriculture, Education & the Arts, and Ecological Stewardship.

As a leader in the field of social finance, we approached 2013 as a year in which to take advantage of the slightly improved economy and the ever-increasing interest in leveraging financial resources for social and environmental benefit. At the same time, we continued to wrestle with the residual effects of the great recession. We have been rethinking the social impact of risk management, as well as forging new links between our current lending and philanthropic programs to leverage our resources in impactful and innovative ways. The need for social finance is growing immeasurably, as more and more people call for change in the financial system. We hope that as you read through our financial highlights, you will see not only our steady growth, but will also gain a sense for the values-driven quality of our work.

In the current macroeconomic environment, as the Federal Reserve tries to stimulate the economy, interest rates are so low that unusual challenges have arisen. There is excess liquidity in the banking system and not enough qualified loan opportunities to fund. As a result, most lenders have been forced to become investment managers looking to invest excess cash. We have experienced this with our Social Investment Fund (SIF) and there is a cost to RSF to hold excess SIF funds in this unusual environment. Therefore, at the end of 2013 we determined that we needed to increase our base spread by 0.25% (to 4.25%) for the first time since 1991.  This increase has allowed us to maintain competitive rates to our borrowers and investors, and for RSF to remain financially sustainable.  We will continue to review our base spread on a quarterly basis, as part of our pricing meeting discussions.

In 2013, we continued on a trend of growth for RSF as an organization. For the four year period of 2011 to 2014, we determined that for RSF to be most effective and to meet the demand from our community, we needed to expand our capacities.  Over the past several years, we have funded additional personnel and rent costs from specific reserve funds and operating fund revenue.  As we wrap up this initial growth phase, we will begin to focus on operating leverage.  RSF operating revenue is generated from our lending and philanthropic services programs, and also from gifts received. Our existing cost structure will be stable going forward, subject to inflation increases, and we will leverage our improved capacity to generate additional revenue, primarily from lending activity.  We are focused on increasing our lending portfolio balance by retaining existing borrowers, adding new borrowers, and reducing volatility in the portfolio.

 

RSF Social Finance

Consolidated Statement of Activities & Changes in Net Assets
Revenue, gains and other support 2013 2012
Fee Income: 1,104,884 839,036
Net interest and investment income:
     Interest income – borrower funds 3,927,022 4,468,071
     Interest income, net 2,918,771 (678,576)
Grants and contributions 10,707,268 14,635,328
Total revenue:   $18,657,945 $19,263,859
Expenses
Program Services
   Grants made from programs 10,363,489 8,381,981
   Personnel 4,427,898 3,956,968
   Interest expense – investor funds and other 677,988 937,827
   Loan loss provision (recovery), net 541,889 1,042,830
   Other project and program expenses 485,486 488,077
Total Program Service Expense 16,496,750 14,807,683
Supporting services: 1,146,644 1,153,645
Total expenses: $17,643,394 $15,961,328
Change in net assets 1,014,551 3,302,531
Net assets at beginning of year 60,409,660 57,107,129
Net assets at end of year $61,424,211 $60,409,660
Consolidated Statement of Financial Position
Assets
Cash and cash equivalents 28,163,515 20,542,469
Restricted cash equivalents 366,752 429,899
Loans receivable – borrower funds, net 71,906,582 78,443,790
Investments, at fair value 61,411,635 51,811,590
Prepaid expenses and other assets 1,494,080 1,088,759
Total assets: $163,342,564 $151,316,507
Liabilities
Notes payable – investor funds 101,806,773 89,664,637
Advances due to related party 0 1,999,702
Other liabilities 111,580 242,508
Total liabilities: $101,918,353 $91,906,847
Net assets
Reserve funds 9,568,677 8,793,708
Philanthropic services funds 52,942,615 53,297,996
Mark to mark on swap contracts (205,585) (295,626)
Total net assets $61,424,211 $60,409,660
Total liabilities & net assets $163,342,564 $152,316,507

 

2013 Social Investment Fund Quarterly Digests

2013 Q4 SIF Digest
2013 Q3 SIF Digest 2013 Q2 SIF Digest 2013 Q1 SIF Digest

 

Audited Financial Statements 2010 – 2013

RSF Social Finance–Corporate Structure

RSF Social Finance [Rudolf Steiner Foundation, Inc.] is a New York State, not-for-profit corporation, and is federally tax-exempt under IRS Section 501(c)(3) of US tax code. RSF Social Finance is also parent corporation for several supporting organizations and wholly-owned subsidiaries. These additions to the corporate structure have been added in order to enable for-profit as well as non-profit financial activities all of which further RSF Social Finance’s charitable purposes. What follows are the audited financial statements: Report for RSF Social Finance; RSF Social Investment Fund, Inc. [SIF],  a tax-exempt, non-profit supporting entity registered to accept investment notes in 44 states in the US and to make loans to non-profit mission-aligned organizations; and, RSF Capital Management, PBC [CMI], a registered C-corporation and certified B-corporation which makes loans to for-profit mission-aligned social enterprises and manages the Mezzanine Fund.

RSF Social Finance Consolidated

2013

2012

2011

2010

RSF Social Investment Fund, Inc.

2013

2012

2011

2010

RSF Capital Management, PBC

2013

2012

2011

2010

Tax Returns

2011 Form 990

2010 Form 990

2009 Form 990

 

For more historical data please contact Gary Schick, Chief Financial Officer at 415.561.6176

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