Nonprofit · EIN 42-1353472
NEIGHBORHOOD FINANCE CORPORATION
Tax-exempt · DES MOINES, IA 50310
Financials
| Year ended | Form | Revenue | Expenses | Net income | Total assets | Liabilities | Net assets |
|---|---|---|---|---|---|---|---|
| December 31, 2024 | 990 | $11,435,858 | $7,188,936 | $4,246,922 | $114,231,342 | $48,882,839 | $65,348,503 |
| December 31, 2023 | 990 | $11,560,978 | $7,208,888 | $4,352,090 | $101,198,135 | $40,096,554 | $61,101,581 |
Financial details: 990 for the year ended December 31, 2024
Revenue
- Contributions, gifts and grants
- $8,257,875
- of which government grants
- $7,890,340
- Program service revenue
- $2,065,129
- Investment income
- $1,112,854
- Other revenue
- $0
Expenses
- Grants and similar amounts paid
- $2,535,663
- Compensation of officers, directors and key employees
- $524,160
- Other salaries and wages
- $1,585,769
- Salaries, compensation and benefits (total)
- $2,521,454
- Professional fundraising fees
- $0
- Legal fees
- $24,679
- Accounting fees
- $71,878
- Occupancy
- $12,375
- Travel
- $36,333
- Depreciation
- $107,869
- Program services (functional)
- $5,946,837
- Management and general (functional)
- $1,242,099
Balance sheet and other
- Total assets, start of year
- $101,198,135
- Total assets, end of year
- $114,231,342
- Total liabilities, end of year
- $48,882,839
- Net assets, end of year
- $65,348,503
- Land, buildings and equipment
- $1,957,288
- Net assets without donor restrictions
- $16,449,888
- Net assets with donor restrictions
- $48,898,615
- Gross receipts
- $11,435,858
- Employees
- 27
- Volunteers
- 37
- Year formed
- 1990
- State of legal domicile
- IA
From the e-filed returns the IRS publishes as XML (latest three processing years; amended returns replace the original). PDF copies at the IRS.
Officers, directors and key employees
As listed on the 990 for the year ended December 31, 2024, highest compensation first.
| Name | Title | Hours / week | Compensation | Other / benefits |
|---|---|---|---|---|
| Stephanie Murphy | Executive Director Officer | 40 | $184,097 | $29,388 |
| Mark Alberico | VP Finance & Admin/Treasurer Officer | 40 | $142,811 | $32,628 |
| Terry Gearhart | Vice President Lending Officer | 40 | $108,600 | $26,636 |
| Travis Simpson - President | Northwest Bank Trustee or director, Officer | 1 | $0 | $0 |
| Linda Westergaard - Vice | President City of Des Moines Trustee or director, Officer | 1 | $0 | $0 |
| Scott Overland - Secretary | City of Cedar Rapids Trustee or director, Officer | 0.5 | $0 | $0 |
| Marsha Kephart - Past President | Iowa State Bank Trustee or director, Officer | 1 | $0 | $0 |
| Almardi Abdalla | Neighborhood Representativ Trustee or director | 0.5 | $0 | $0 |
| Brenner Myers From 102224 | Neighborhood Representativ Trustee or director | 0.5 | $0 | $0 |
| Chris Johansen | City Of Des Moines Trustee or director | 0.5 | $0 | $0 |
| Cole McClelland | Bankers Trust Trustee or director | 0.5 | $0 | $0 |
| Danielle Rodriquez Until 080124 | Neighborhood Representativ Trustee or director | 0.5 | $0 | $0 |
| Dave Williamson | Polk County Public Works Trustee or director | 0.5 | $0 | $0 |
| Dedric Doolin | Neighborhood Representativ Trustee or director | 0.5 | $0 | $0 |
| Lindsey Azizeh From 022024 | Neighborhood Representativ Trustee or director | 0.5 | $0 | $0 |
5 more people on this return
| Name | Title | Hours / week | Compensation |
|---|---|---|---|
| Josh Moore | Cedar Rapids Bank & Trust Trustee or director | 0.5 | $0 |
| Margaret Wright From 032624 | Neighborhood Representativ Trustee or director | 0.5 | $0 |
| Patrick Redding | First Interstate Bank Trustee or director | 0.5 | $0 |
| Steve Van Oort | Polk County Board Of Super Trustee or director | 0.5 | $0 |
| Will Thomson From 052824 | Two Rivers bank Trustee or director | 0.5 | $0 |
990 for the year ended December 31, 2023: 18 people
| Name | Title | Hours / week | Compensation | Other / benefits |
|---|---|---|---|---|
| Stephanie Murphy | Executive Director Officer | 40 | $158,626 | $31,291 |
| Mark Alberico | VP Finance & Admin/Treasurer Officer | 40 | $123,442 | $26,790 |
| Terry Gearhart | Vice President Lending Officer | 40 | $95,427 | $24,361 |
| Marsha Kephart - President | Iowa State Bank Trustee or director, Officer | 1 | $0 | $0 |
| Travis Simpson - Vice President | Northwest Bank Trustee or director, Officer | 1 | $0 | $0 |
| Linda Westergaard - Secretary | City of Des Moines Trustee or director, Officer | 1 | $0 | $0 |
| Steve Van Oort - Past President | Polk County Board Of Supervisors Trustee or director, Officer | 1 | $0 | $0 |
| Almardi Abdalla | Neighborhood Representative Trustee or director | 0.5 | $0 | $0 |
| Chris Johansen | City Of Des Moines Trustee or director | 0.5 | $0 | $0 |
| Cole McClelland From 102423 | Bankers Trust Trustee or director | 0.5 | $0 | $0 |
| Danielle Rodriquez From 9123 | Neighborhood Representative Trustee or director | 0.5 | $0 | $0 |
| Dave Williamson From 072723 | Polk County Public Works Trustee or director | 0.5 | $0 | $0 |
| Deb Anderson Alternate | Polk County Board Of Supervisors Trustee or director | 0.5 | $0 | $0 |
| Dedric Doolin From 090123 | Neighborhood Representative Trustee or director | 0.5 | $0 | $0 |
| Josh Moore From 090123 | Cedar Rapids Bank & Trust Trustee or director | 0.5 | $0 | $0 |
| Patrick Redding | First Interstate Bank Trustee or director | 0.5 | $0 | $0 |
| Scott Overland From 090123 | City of Cedar Rapids Trustee or director | 0.5 | $0 | $0 |
| Theron Hobbs | Neighborhood Representative Trustee or director | 0.5 | $0 | $0 |
Address and contacts
- Address (IRS master file)
- 4908 FRANKLIN AVE, DES MOINES, IA 50310-1901
- Principal officer (990 for 2024)
- Stephanie Murphy, 4908 Franklin Avenue, Des Moines, IA 50310
- Signed the 990
- Stephanie Murphy, Executive Director
- Phone
- (515) 246-0010
- Website
- www.neighborhoodfinance.org
- Return prepared by
- Eide Bailly LLP
Mission
Neighborhood Finance Corporation provides unique lending programs and related services to facilitate neighborhood revitalization in Polk and Linn Counties through partnerships with residents, governments, community-based organizations, financial institutions and the business community.
Program accomplishments
- Loan Origination: Neighborhood revitalization is the key mission of NFC. This is accomplished by providing a loan for repayment as well as a forgivable loan for each qualified transaction. The forgivable loan is at 0% interest with no payments and generally forgiven over 5 years. In addition, purchase and some refinance loans have a second mortgage at a 2% interest rate for 10 years instead of requiring private mortgage insurance for borrowers with less than 20% equity. NFC's loans work together to provide a mortgage that reduces the barriers of downpayment and equity while completing needed renovations of the property.In 2024, NFC closed 216 loans. Clients were served through our purchase, second mortgage, refinance and home improvement loan products as well as Polk County Large Renovation and Polk County Down Payment deferred loans. The total dollar amount of repayable loans closed in 2024 was $10,477,952. Purchase loan, second mortgage, refinance and home improvement transactions were completed in areas of Polk County and Cedar Rapids that are identified as areas for revitalization. In 2024 NFC launched a new commercial lending line of business to support the development of affordable homeownership and rental housing. There were 3 construction loans and 1 multi-family commercial loan in 2024 totaling $1,634,477.The neighborhoods are typically low to moderate (low-mod) income census tracts. In 2024, 215 primary loans (not including second mortgages, NFC Neighborhood Reinvest, NeighborhoodLIFT , Journey to Homeownership, Energy Advantage Deferred, Polk County Down Payment Assistance, or Polk County Large Renovation loans) were closed, while 152 closed were made to borrowers that were in low-mod income and/or NFC investment area census tract and/or low-mod income for Polk County, Iowa and Cedar Rapids, Iowa. Of these 215 loans, 61 loans were made to borrowers that have low-mod income and are in low-mod income and/or NFC investment area census tracts; 33 were made to borrowers with low-mod income, but not in low-mod income and/or NFC investment area census tracts; 58 loans were made to borrowers in low-mod income and/or NFC investment area census tracts, but do not have low-mod income; the other 63 loans closed were made to borrowers that are not low or moderate income or in a low-mod income and/or NFC investment area census tract. In 2024, 70.7% of repayable loans closed were to either low-mod borrowers, low-mod income and/or NFC investment area census tract or both. In 2024, 82.5% of home purchase loans closed were to first time home buyers.Though residential lending remains NFC's primary mission, residential mortgage loans closed through NFC are to owner occupants. The number of home purchase loans closed in 2024 was 40. NFC closed 21 second mortgages, 169 home improvement loans, 6 refinance loans, 38 Energy Advantage Deferred Loans, 60 Polk County Large Renovation loans (17 of 60 were NFC borrowers), and 69 down payment assistance deferred and forgivable loans (33 NFC down payment loans, 13 Journey to Homeownership (J2H) loans (6 of 13 were NFC borrowers), and 23 Polk County Down Payment Assistance loans (9 of 23 were NFC borrowers)).NFC launched a down payment program specifically for NFC borrowers in 2019. It is called Neighborhood Reinvest, and provides a $10,500 0% interest 30 year deferred loan to homebuyers earning below 100% of the area median income. Neighborhood Reinvest was created to overcome a primary barrier to homeownership for low and moderate income households. The deferred loan can be used towards down payment and closing costs assistance for eligible homebuyers who purchase a home utilizing NFC financing in NFC 's lending areas in Polk County, Iowa and Cedar Rapids, Iowa. The loan is structured as a 'soft second' mortgage loan that is deferred until there is a cash-out refinance or the home is sold or 30 years, whichever occurs first.In 2023, NFC launched the Polk County Down Payment Assistance Program. The Polk County DPA increases homeownership opportunities for households earning less than 80% of the areas median income. The goal is to create sustainable homeownership which results in wealth building, housing stability and stronger neighborhoods. NFC closed 23 Polk County DPA loans in 2024.In addition, in 2023, NFC launched the Polk County Large Renovation. Homeowners with household incomes below 80% of the Polk County area median income limit are eligible for a deferred loan to go towards repairs to their home. The goal is to create sustainable and safe living conditions for existing homeowners who may not otherwise qualify to make repairs on their own due to income or credit. In 2024, NFC closed 48 Polk County Large Renovation loans.Lastly, in 2023, NFC launched the Energy Advantage program, which offers a deferred loan to NFC borrowers who are adding or replacing energy efficient appliances and/or products in their home. Energy Advantage loans are offered in Cedar Rapids and Polk County, and funded by local governments. NFC closed 34 Energy Advantage loans in 2024.Expenses $1,790,079 · revenue $1,866,097
- Forgivable Loan: As stated in loan origination description, each transaction that NFC provides to our borrowers includes a forgivable loan for property rehabilitation. The forgivable loan is a 0% interest rate loan for either 5 or 10 years. A 5 year forgivable loan is granted on all single family dwelling transactions. A 10 year forgivable loan is granted on all transactions that are downsizing a multi-family dwelling back to a single family dwelling. There is no repayment required on the forgivable loan as long as the borrower is residing in the home. The forgiven amount is reported to the borrower on Form 1099C each year until the entire amount is forgiven. Since inception, NFC has awarded forgivable loans totaling $61,377,391 through December 31, 2024.In 2024, NFC closed $1,637,810 in forgivable property rehabilitation loans and $78,000 in closing costs forgivable loans.All NFC loans for home purchase have a home inspection. In Polk County, this role is provided by a full-time renovation coordinator that is on the NFC staff. In Cedar Rapids, this is provided by a city employee. In both locations, the renovation coordinator makes sure all code violations at the property are addressed through the homeowner's property rehabilitation projects. The renovation coordinator reviews all bids for cost reasonableness and provides authorization for payout once the property rehabilitation project is properly completed and meets the borrower's satisfaction. The renovation coordinator notifies NFC when the project is completed and verifies that it was done in a workman-like manner.Additionally, these property rehabilitation projects improve the value of the homes in these neighborhoods. This can lead to increased values for other homes in these neighborhoods.Expenses $2,851,374 · grants $2,535,663
- At NFC Properties LLC, our goal is to provide safe, affordable, quality housing to owner occupants. In 2024 NFC Properties LLC acquired 11 properties. Of those 11 properties, 1 was an existing home and 10 were infill lots within the City of Des Moines for new construction in primarily low and moderate income census tracts. During 2024, 5 units in NFC Properties LLC housing inventory completed rehabilitation, and 8 of the inventory units were sold. NFC Properties LLC focuses on energy efficiency by adding high efficiency furnace and A/C, vinyl Low-E windows, and blown cellulose insulation. This helps ensure that the home stays affordable for the future homebuyer.Expenses $264,723 · revenue $199,032
- The Home Buyer Education services are offered in Polk and Linn counties through service agreements with local nonprofit HUD approved housing counseling agencies. These services are offered in an individual, classroom, and online format. NFC refers home buyers for home buyer education and existing homeowners for financial/debt management and budgeting. During 2024, NFC, through our partner organizations, provided home buyer education to 95% of home buyers, and budget and credit counseling and education to 8.6% of existing homeowners. In total, 18.6% of NFC borrowers received education and/or counseling through our partner agencies. Education was completed through HUD approved housing counseling agencies in Des Moines and Cedar Rapids, Iowa, or through HUD approved online platforms.NFC has agreements with the City of Des Moines (the city) and Polk County (the county), wherein the city and the county agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the city and county have totaled $33,537,687 and $32,285,687 respectively, through December 31, 2024. During 2022, the city and the county extended their agreement until June 2027. The city and the county will each contribute at least $1,000,000 annually through the year 2027. NFC Cedar Rapids LLC has an agreement with the City of Cedar Rapids, wherein the City of Cedar Rapids agreed to contribute money for the express purpose of funding neighborhood housing revitalization programs within the City of Cedar Rapids. Under the agreement, cumulative contributions by the City of Cedar Rapids have totaled $6,000,000 through December 31, 2024. The City of Cedar Rapids will contribute at least $500,000 annually through the year 2028. Except in fisal year 2024, NFC declined the payment due to city budget constraints and NFC having enough capital for forgivable loans and reserves.NFC has agreements with the City of West Des Moines, City of Urbandale, and City of Windsor Heights, wherein they each agreed to contribute money for the specific purpose of funding neighborhood housing revitalization programs. Under the agreements, cumulative contributions by the City of West Des Moines have totaled $1,600,000, cumulative contributions by the City of Urbandale have totaled $296,000, and cumulative contributions from the City of Windsor Heights have totaled $75,000.Expenses $1,040,661
What it must file and when
IRS records say it files Form 990 or 990-EZ. Based on its last return; a smaller organization may file the 990-N. Its accounting year ends in December, so each return is due on the 15th day of the 5th month after that.
| Tax year | Year ended | Due | IRS public records |
|---|---|---|---|
| 2025 | December 31, 2025 | May 15, 2026 | Not on file |
| 2024 | December 31, 2024 | May 15, 2025 | 990 on file |
| 2023 | December 31, 2023 | May 15, 2024 | 990 on file |
IRS record
- EIN
- 42-1353472
- Tax-exempt status
- 501(c)(3): Charitable, religious, educational or scientific organization
- Foundation status
- Publicly supported organization (170(b)(1)(A)(vi))
- Donations deductible (Pub 78)
- Public charity, 50% deduction limit
- Exempt since
- 1990
- Accounting year ends
- December
- Files
- Form 990 or 990-EZ
- Category (NTEE)
- Housing and shelter (L22Z)
- Assets (IRS master file)
- $114,231,342
- Income (IRS master file)
- $11,435,858
Filing history
| Form | Year ended | Revenue | Expenses | Assets | Return |
|---|---|---|---|---|---|
| 990 | December 2024 | $11,435,858 | $7,188,936 | $114,231,342 | IRS |
| 990 | December 2023 | $11,560,978 | $7,208,888 | $101,198,135 | XML |
| 990 | December 2022 | $6,795,518 | $6,636,986 | $94,727,126 | IRS |
| 990 | December 2021 | – | – | – | IRS |
| 990 | December 2020 | – | – | – | IRS |
| 990 | December 2018 | – | – | – | IRS |
990-N: the IRS bulk file holds only the latest e-Postcard per organization; earlier years come from archived copies of that file since 2020 and can have gaps (the IRS e-Postcard search lists every one). 990, 990-EZ, 990-PF, 990-T: every e-filed return in the IRS e-file index since 2019; XML for the latest three processing years, amounts from the IRS Statistics of Income extracts before that. PDF copies and determination letters at the IRS (search EIN 42-1353472).
Questions about NEIGHBORHOOD FINANCE CORPORATION
- What is the EIN of NEIGHBORHOOD FINANCE CORPORATION?
- The employer identification number (EIN) of NEIGHBORHOOD FINANCE CORPORATION is 42-1353472.
- Is NEIGHBORHOOD FINANCE CORPORATION tax-exempt?
- Yes. The IRS lists it as tax-exempt under section 501(c)(3) since 1990.
- Are donations to NEIGHBORHOOD FINANCE CORPORATION tax-deductible?
- Yes. It is listed in IRS Publication 78 (Public charity, 50% deduction limit).
- Which annual return does NEIGHBORHOOD FINANCE CORPORATION file?
- Form 990 or 990-EZ. Based on its last return; a smaller organization may file the 990-N.
- When is the next return of NEIGHBORHOOD FINANCE CORPORATION due?
- The return for tax year 2025 (the year ending December 31, 2025) is due May 15, 2026. Form 8868 extends it by six months; the 990-N cannot be extended.
- When did NEIGHBORHOOD FINANCE CORPORATION last file with the IRS?
- The latest return in the IRS public files is the 990 for the year ended December 2024.
- Who is the principal officer of NEIGHBORHOOD FINANCE CORPORATION?
- The 990 for the year ended December 31, 2024 names Stephanie Murphy.
- Who are the officers and directors of NEIGHBORHOOD FINANCE CORPORATION?
- The 990 for the year ended December 31, 2024 lists 20 people; 3 received compensation from the organization, the highest $184,097 (Stephanie Murphy, Executive Director).
- How much revenue does NEIGHBORHOOD FINANCE CORPORATION have?
- On its 990 for the year ended December 31, 2024 it reported revenue of $11,435,858, expenses of $7,188,936 and total assets of $114,231,342 at year end.
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