Impact Finance

Nonprofit profile at a glance

EIN
274641831
IRS 990 coverage
2014–2020
Forms available
Form 990 2020
Location
Rochester, MN, USA
Phone
5072820203
Rating
61
Verdict
SUPPORTED
Rating confidence
Moderate

Reported finances

Revenue
$279,628
Expenses
$31,831
Assets
$0
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2020. Amounts in USD.

Leadership & pay

6 people listed

Executive titles in this filing

  • JENNIFER WOODFORD (EXECUTIVE DIRECTOR)

Highest reported compensation

  • JENNIFER WOODFORD (EXECUTIVE DIRECTOR): $139,470 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2020. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The primary mission of impact finance is to promote community development by providing activities directed towards improving the social or economic conditions of underserved people or residents of distressed communities.

What it reported doing in 2020

Impact finance, formerly known as rochester community finance (rcf), helps communities grow by providing down payment assistance lending so low-and moderate-income families can attain affordable housing. Impact finance helps people in seven local counties afford home ownership. Impact finance has a successful gap loan program that provides low-interest gap loans to underserved buyers through our lending product and in partnership with local banks to enable qualified buyers to achieve affordable homeownership. Individuals may be eligible for funds to pay for closing costs and/or down payment assistance to help reduce monthly mortgage payments. Impact finance provides up to $10,000 for qualified buyers at two options:2% interest gap loan amortized over 10 years.0% interest deferred gap loan amortized over 30 years when purchasing a first homes community land trust property.

Operating model

Revenue model
Investment-supported. 80% of the money available for current operations came from recurring investment income.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - The filed numbers largely add up and most voting board members are independent. A relatively small share of available resources goes toward mission work and program spending has declined or grown slowly.

Rating breakdown

  • Financial Efficiency: 26
  • Transparency & Controls: 92
  • Accountability: 95
  • Sustainability: 48
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 6.7%; rating input score 7
  • Program expense ratio: 65.1%; rating input score 65
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 7 of 8 controls in place; rating input score 88
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Pass
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Pass
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: 88.6%; rating input score 98; 98th percentile among comparable filings
  • Total-asset coverage ratio: 0; rating input score 1; 1st percentile among comparable filings
  • Liabilities to assets ratio: Limited
  • Officer compensation ratio: 30.9%; rating input score 13; 13th percentile among comparable filings

Growth

  • Program expense growth: -10.8% per year; rating input score 0; 17th percentile among comparable filings
  • Revenue growth: 1.4% per year; rating input score 100; 44th percentile among comparable filings
  • Asset growth: -13.3% per year; rating input score 0; 5th percentile among comparable filings

Details

  • Where the money goes: 6.7% of revenue deployed · 65.1% of spending went to programs
  • Governance: 5 of 5 board members independent · 7 of 8 filing controls reported
  • Programs: 1 filed program accomplishment · $21K in reported program spending
  • Leadership: top reported pay $139K · 6 people listed
  • Consistency: 21 of 21 current checks pass
  • Schedules: 5 filed schedules · includes major donors
  • Filing history: 6 filing years from 2014 to 2020
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 3 filed related-organization links
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • High — Financial Efficiency: Mission deployment rate scored 7/100.
  • High — Growth: Program expense growth scored 0/100.
  • High — Sustainability: Total-asset coverage ratio scored 1/100.
  • Review — Accountability: Governance controls: CEO compensation review process not reported.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 13/100.