Nonprofit Finance Fund

What it reported doing in 2024

Nff is a nonprofit lender, consultant, and advocate. For 45 years, we've helped organizations access the money and resources they need to realize their communities' aspirations. Alongside others, we're working to build community wealth and well-being and put affordable housing, essential services, quality jobs, and excellent education within reach of more people. As a community development financial institution (cdfi) nff manages a portfolio of over $351 million. Since 1980, we have provided over $1.2 billion in financing and access to additional capital in support of over $4.1 billion in projects for nearly a thousand organizations nationwide. Nff works toward a more just and vibrant society through: financing for nonprofits and social enterprises that are working hard to realize the highest aspirations of their communities.consulting that helps nonprofit leaders and their funders make decisions that strengthen the connection between money and mission success.partnering with service providers, funders, and investors to advance community-led solutions and identify and advocate for practices that ensure organizations are positioned to achieve their goals, whether that is opening up access to capital or reinforcing the importance of covering the full costs of delivering programs.learning and sharing cutting-edge data, insights, and resources to support social change and community-led solutions .in 2024, nff staff continued to primarily work remotely in the geographic regions of New York, philadelphia, boston, los angeles, and oakland. Offices in these regions have reopened for staff access. A selection of nff's services include: access to capitalloans: nff typically makes loans up to $8 million and provides financing independently and in partnership with other lenders, to nonprofits and social enterprises. The financing is used for a variety of purposes including facility-related needs such as property acquisition, new construction, renovation, and leasehold improvements. Nff also provides loans for working capital and operating needs including equipment loans and lines of credit. New markets tax credits ("nmtc"): since 2007 nff has been awarded a total of $436 million in nmtc from the us department of the treasury, which nff uses to provide flexible financing to organizations and projects that increase access to human services, healthcare, education, arts and culture, youth and workforce development, and much more in communities across the us. Nff is one of a few organizations using these credits exclusively to help finance projects benefiting small and mid-sized nonprofits. Supporting program related investments and other impact investments: nff supports efforts of foundations and others considering the addition of program-related and other impact investments to its philanthropic activity and those seeking assistance with an existing program.other capital access and related activities: nff works in partnership with funders and other providers of capital to explore thoughtful, practical applications of cutting-edge ideas and more equitable funding practices such as covering full costs, offering change capital, and providing the flexible operating dollars that nonprofits need to sustain and adapt their community work. Nff's loans and other financing products evolve with the changing needs of the sector and us communities. In 2024, nff originated over $90 million in total new lending to 36 organizations. Advice and training consultation and analysis: nff is a leading financial consulting practice providing solutions-based advice and partnership to help nonprofits and their funders address change, challenge, or opportunity. Whether through financial coaching, in-depth consulting services, group clinics, or long-term partnerships, nff consultants work with community-centered nonprofit organizations, networks, organizers, funders, and financing partners to support community-led solutions, and engage and facilitate funding that promo

Financial Efficiency

• Mission deployment rate: 65.3%; rating input score 65
• Program expense ratio: 73.8%; rating input score 74
• Fundraising efficiency: $12.46 raised per $1 spent on fundraising; rating input score 44; 44th percentile among comparable filings

Transparency & Controls

• Consistency checks: 93.8%; rating input score 94; 17th percentile among comparable filings
• Pay-setting controls: 5 of 6 controls in place; rating input score 83
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Pass
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: 100%; rating input score 100; 72nd percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Limited

Accountability

• Independent voting board: 93.8%; rating input score 94; 27th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 12.9%; rating input score 73; 73rd percentile among comparable filings
• Total-asset coverage ratio: 9.38; rating input score 91; 91st percentile among comparable filings
• Liabilities to assets ratio: 0.68; rating input score 19; 19th percentile among comparable filings
• Officer compensation ratio: 9.7%; rating input score 22; 22nd percentile among comparable filings

Growth

• Program expense growth: -4% per year; rating input score 0; 4th percentile among comparable filings
• Revenue growth: -1.1% per year; rating input score 0; 6th percentile among comparable filings
• Asset growth: 10.5% per year; rating input score 100; 67th percentile among comparable filings