Form 990 for tax year 2022

The filer's explanations (Part III)

COMPENSATION OF MR. RUPERT SCOFIELD, PRESIDENT AND CEO (DECEASED NOV 2022):

SCHEDULE J, PART I, LINE 1A & 4B EXPLANATION: MR. SCOFIELD, THE FOUNDER AND CEO OF FINCA INTERNATIONAL, WAS EMPLOYED BY THE ORGANIZATION FOR MORE THAN 35 YEARS. AS HE APPROACHED RETIREMENT, FINCA AND MR. SCOFIELD AGREED ON A CONTINUING ROLE FOR MR. SCOFIELD ONCE HE STEPPED DOWN FROM HIS POSITION OF PRESIDENT & CEO THAT WOULD ALLOW THE ORGANIZATION TO CONTINUE TO BENEFIT FROM MR. SCOFIELD'S EXPERIENCE AND VISIBILITY AS A RECOGNIZED GLOBAL LEADER IN MICROFINANCE. FOLLOWING RETIREMENT, WHICH WAS SCHEDULED FOR DECEMBER 31, 2022, MR. SCOFIELD WOULD BECOME A CONSULTANT TO THE ORGANIZATION, ACTING AS AN AMBASSADOR FOR FINCA AND CONTINUING TO PROMOTE THE INTERESTS OF THE ORGANIZATION. IN EXCHANGE FOR THIS ONGOING ROLE OVER THE COMING YEARS, THE ORGANIZATION AGREED TO PAY MR. SCOFIELD THE EQUIVALENT OF ONE YEAR OF SALARY AT THIS CURRENT COMPENSATION LEVEL OF $375,000, WITH A RIGHT OF HIS BENEFICIARY TO RECEIVE ANY UNPAID AMOUNTS IN THE EVENT OF HIS DEATH. THE ORGANIZATION'S BOARD DETERMINED THAT THIS LEVEL OF COMPENSATION FOR MR. SCOFIELD WAS REASONABLE BY TAKING INTO ACCOUNT VARIOUS PUBLIC REFERENCES OF EXECUTIVE COMPENSATION FOR SIMILAR ORGANIZATIONS, INCLUDING THE EXCELLENCE IN GIVING NON-PROFIT CEO COMPENSATION STUDY 2020-21, WHICH FOUND THAT CEO'S FOR COMPARABLE NON-PROFITS WITH EXPENSES EXCEEDING $50 MILLION PER YEAR EARNED ON AVERAGE $402,366. THIS STUDY WAS BASED ON A SURVEY OF 31 NON-PROFITS IN THAT CATEGORY. IT WAS ALSO NOTED THAT THE ORGANIZATION "CANDID" (FORMERLY GUIDESTAR AND FOUNDATION CENTER) CONDUCTED A CEO SALARY SURVEY IN 2021 THAT FOUND WASHINGTON, D.C. TO BE THE HIGHEST MARKET NATIONALLY FOR NON-PROFIT CEO COMPENSATION (BASED ON MEDIAN EXECUTIVE COMPENSATION). THE BOARD FURTHER NOTED THAT MR. SCOFIELD'S COMPENSATION HAD NOT BEEN INCREASED SINCE 2015, A PERIOD OF SEVEN YEARS, AND WOULD REMAIN AT THAT 2015 LEVEL. AS PART OF THE COMPENSATION PACKAGE TO ENSURE MR. SCOFIELD'S CONTINUING SERVICES, THE ORGANIZATION ALSO AGREED TO INCREASE THE BENEFITS UNDER MR. SCOFIELD'S SEC. 457(F) PLAN FROM ITS CURRENT LEVEL OF $35,000/YEAR TO A LEVEL OF $100,000/YEAR. THE INCREASE WAS BASED ON THE BOARD'S RECOGNITION THAT MR. SCOFIELD'S CURRENT PLAN DATED BACK TO 2006 AND WAS NO LONGER IN LINE WITH NON-QUALIFIED PLAN BENEFITS PAID TO OTHER RETIRED SENIOR EXECUTIVES OF THE ORGANIZATION WHO HAD RETIRED BELOW THE LEVEL OF CEO, AND DID NOT RECOGNIZE MR. SCOFIELD'S ADDITIONAL SIXTEEN YEARS OF SERVICE SINCE 2006. TO ADDRESS THIS DISCREPANCY, THE BOARD AGREED TO THE INCREASE IN HIS NON-QUALIFIED PLAN AS WELL AS A TAX GROSS-UP. THE PRESENT VALUE OF THE RETIREMENT BENEFITS (WITH TAX GROSS-UP) OF $1,024,854 WAS INCLUDED IN MR. SCOFIELD'S 2022 W-2, AND IT IS INCLUDED IN COLUMN (D) OF PART VII OF FORM 990. BASED ON THE ANALYSIS AND MARKET-BASED CONSIDERATIONS ABOVE, THE BOARD OF FINCA INTERNATIONAL CONCLUDED THAT TOTAL 2022 COMPENSATION PAID TO MR. SCOFIELD (AND HIS ESTATE) WAS REASONABLE AND THEREFORE SHOULD NOT BE CONSIDERED AN "EXCESS BENEFIT TRANSACTION" UNDER SECTION 4958.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• FINCA PLUS LLC

  SOLAR ENERGY PRODUCTS · DE · income $1,146,857 · assets $2,448,905

  Directly controlled by FINCA INTERNATIONAL INC

• FINCA CAPITAL FUND LLC

  DORMANT · DE · income $0 · assets $0

  Directly controlled by FINCA INTERNATIONAL INC

• FINCA LICENSING & SUPPORT LLC

  DORMANT · DE · income $0 · assets $0

  Directly controlled by FINCA INTERNATIONAL INC

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• FINCA MICROFINANCE HOLDING COMPANY LLC

  RELATED · HOLDING COMPANY · DC · 65.89% owned · share of income $7,901,049 · share of assets $115,419,063 · general or managing partner

  Directly controlled by FINCA INTERNATIONAL INC

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• FINCA UNIVERSAL CREDIT ORGANIZATION CJSC

  C · MICROFINANCE OPERATIONS · AM · 65.89% owned · share of income $8,015,068 · share of assets $38,415,109 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA AZERBAIJAN LLC

  C · MICROFINANCE OPERATIONS · AJ · 65.89% owned · share of income $4,672,104 · share of assets $19,477,719 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA DR CONGO SARL

  C · MICROFINANCE OPERATIONS · CG · 65.89% owned · share of income $27,236,789 · share of assets $68,864,545 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA TRANSFERT SARL

  C · MICROFINANCE OPERATIONS · CG · 61.69% owned · share of income $310,522 · share of assets $905,489 · controlled entity

  Directly controlled by FINCA DR CONGO SARL

• BANCO PARA LA ASISTENCIA COMUNITARIA FINCA SA

  C · MICROFINANCE OPERATIONS · EC · 65.89% owned · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCASERVICIOS - LATINOAMERICA SA

  C · DORMANT · GT · 65.89% owned · share of assets $2,255 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA MICROFINANZAS SA

  C · DORMANT · GT · 65.89% owned · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA HAITI SA

  C · MICROFINANCE OPERATIONS · HA · 65.89% owned · share of income $3,857,835 · share of assets $10,089,642 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINANCIERA FINCA HONDURAS SA

  C · MICROFINANCE OPERATIONS · HO · 65.89% owned · share of income $5,294,688 · share of assets $18,019,376 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• SPECIALIZED MICRO LOANS (PRIVATE SHAREHOLDING COMPANY)

  C · MICROFINANCE OPERATIONS · JO · 65.89% owned · share of income $6,030,634 · share of assets $24,022,122 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA KOSOVE SHA

  C · DORMANT · KV · 65.89% owned · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA MICRO-CREDIT COMPANY CJSC

  C · MICROFINANCE OPERATIONS · KG · 65.89% owned · share of income $23,712,469 · share of assets $103,875,476 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA LIMITED (MALAWI)

  C · MICROFINANCE OPERATIONS · MI · 65.89% owned · share of income $6,121,134 · share of assets $14,813,569 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA MICROFINANCE COOPERATIEF UA

  C · HOLDING COMPANY · NL · 65.89% owned · share of income $1,208,183 · share of assets $66,320,257 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA NETWORK SUPPORT BV

  C · IT SERVICES · NL · 65.89% owned · share of income $6,849,901 · share of assets $1,745,964 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINANCIERA FINCA NICARAGUA SA

  C · MICROFINANCE OPERATIONS · NU · 65.89% owned · share of income $368,092 · share of assets $670,568 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA MICROFINANCE BANK LIMITED

  C · MICROFINANCE OPERATIONS · NI · 65.89% owned · share of income $2,128,969 · share of assets $5,642,575 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA MICROFINANCE BANK LIMITED

  C · MICROFINANCE OPERATIONS · PK · 56.93% owned · share of income $15,649,446 · share of assets $78,660,431 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA MICRO-CREDIT DEPOSIT ORGANIZATION LLC

  C · MICROFINANCE OPERATIONS · TI · 65.89% owned · share of income $4,392,115 · share of assets $21,811,955 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA MICROFINANCE BANK LIMITED

  C · MICROFINANCE OPERATIONS · TZ · 65.89% owned · share of income $15,409,741 · share of assets $22,785,980 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA UGANDA LIMITED

  C · MICROFINANCE OPERATIONS · UG · 65.89% owned · share of income $10,322,563 · share of assets $36,546,784 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA ZAMBIA LIMITED

  C · MICROFINANCE OPERATIONS · ZA · 65.89% owned · share of income $3,330,331 · share of assets $6,458,852 · controlled entity

  Directly controlled by FINCA MICROFINANCE COOPERATIEF UA

• FINCA ZAMBIA HOLDING LIMITED

  C · DORMANT · ZA · 65.89% owned · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCASERVICES USA LLC

  C · DORMANT · VA · 65.89% owned · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• FINCA MICROFINANCE GLOBAL SERVICES LLC

  C · SUPPORT SERVICES · DC · 65.89% owned · share of income $9,568,963 · share of assets $6,505,235 · controlled entity

  Directly controlled by FINCA MICROFINANCE HOLDING COMPANY LLC

• MICRO-FINANCE SOLUTIONS INC

  C · DORMANT · CJ · 100% owned · controlled entity

  Directly controlled by FINCA INTERNATIONAL INC

• MFSI GUATEMALA SA

  C · DORMANT · GT · 100% owned · share of assets $53,301 · controlled entity

  Directly controlled by MICRO-FINANCE SOLUTIONS INC

• ASESORA DE MICROFINANZAS ASEMICROFIN SA

  C · MICROFINANCE OPERATIONS · EC · 100% owned · share of income -$60,098 · share of assets $318,887 · controlled entity

  Directly controlled by FUNDACION INTERNACIONAL PARA LA ASISTENCIA COMUNITARIA DE ECUADOR