Smfb Nmtc Support Corp

Nonprofit profile at a glance

EIN
931873208
IRS 990 coverage
2023–2024
Forms available
Form 990 2024
Location
Phoenix, AZ, USA
Phone
6022423663
Rating
68
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Single Organization Support

Reported finances

Revenue
$343,000
Expenses
$257,291
Assets
$24,809,688
Liabilities
$0

Source: IRS Form 990. Selected filing: tax year 2024. Amounts in USD.

Leadership & pay

7 people listed

Executive titles in this filing

  • MARC ISAACS (PRESIDENT)
  • MILTON LIU (VICE PRESIDENT)

Highest reported compensation

  • MILTON LIU (VICE PRESIDENT): $547,105 total reported compensation
  • SARAH STUCKEY (CFO (THRU FEB 2024)): $239,812 total reported compensation
  • TINA LYONS (SENIOR VP OF FINANCE): $183,003 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2024. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

The purpose is to exclusively support and benefit, financially and/or operationally, the st. Mary's food bank alliance.

What it reported doing in 2024

Smfb nmtc support corp was formed to benefit st. Mary's food bank alliance ("st. Mary's"), an Arizona nonprofit corporation, and to facilitate the new markets tax credit ("nmtc") program. The nmtc program is an alternative financing complement to conventional capital sources and is patterned after the federal new markets tax credit program. The purpose of the program is to encourage capital investment in low-income communities and to create new jobs. The nmtc program permits investors/note holders to claim a credit against federal income taxes for qualified equity investments ("qeis") in designated community development entities ("cdes"). These designated cdes must use substantially all (85%) of the proceeds to make qualified low-income community investments ("qlicls"). The investor is provided with a tax credit, which is claimed over a seven-year period. Under the nmtc program, a "lender" into the program cannot be the ultimate beneficiary of the tax credit; therefore, the smfb nmtc support corp was created to be the lender, with the alliance being the ultimate beneficiary of the tax credits.during fiscal year 2024, the support corp provided a leveraged loan to an investment fund entity, which subsequently made a qualified equity investment (qei) in a qualified community development entity (cde) (each as defined in i.r.c. Subsection 45d). The funds generated through the nmtc program are ultimately made available to st. Mary's through a loan with a below market interest rate and was used by st. Mary's to fund the renovation and expansion of its food distribution campus.

Operating model

Revenue model
Investment-supported. 100% of the money available for current operations came from recurring investment income.
Distribution model
Grant intermediary. The nonprofit sent 100% of its reported program spending out as grants.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Few specific pay-setting methods are documented in the filing; unanswered boxes are not proof of absence and some filing-based governance responses are negative or unanswered.

Rating breakdown

  • Financial Efficiency: 75
  • Transparency & Controls: 68
  • Accountability: 63
  • Sustainability: 76
  • Growth: 20

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 74.6%; rating input score 75
  • Program expense ratio: 99.5%; rating input score 99
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 64th percentile among comparable filings
  • Pay-setting controls: 0 of 6 controls in place; rating input score 0
    • Compensation committee: Missing
    • Independent consultant: Missing
    • Other Form 990s reviewed: Missing
    • Written employment contract: Missing
    • Compensation survey or study: Missing
    • Board or committee approval: Missing
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 80th percentile among comparable filings
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 60%; rating input score 60; 17th percentile among comparable filings
  • Governance controls: 6 of 9 controls in place; rating input score 67
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: Fail
    • 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: 25%; rating input score 78; 78th percentile among comparable filings
  • Total-asset coverage ratio: 96.43; rating input score 99; 99th percentile among comparable filings
  • Liabilities to assets ratio: 0; rating input score 80; 80th percentile among comparable filings
  • Officer compensation ratio: 39.2%; rating input score 7; 7th percentile among comparable filings

Growth

  • Program expense growth: -20.2% per year; rating input score 0; 6th percentile among comparable filings
  • Revenue growth: -194.6% per year; rating input score 0; 0th percentile among comparable filings
  • Asset growth: 0.3% per year; rating input score 100; 26th percentile among comparable filings

Details

  • Where the money goes: 74.6% of revenue deployed · 99.5% of spending went to programs
  • Governance: 3 of 5 board members independent · 6 of 9 filing controls reported
  • Programs: 1 filed program accomplishment · $256K in reported program spending
  • Leadership: top reported pay $547K · 7 people listed · 0 of 6 pay-setting controls reported
  • Consistency: 14 of 14 current checks pass
  • Schedules: 6 filed schedules · includes grants and executive pay
  • Filing history: 2 filing years from 2023 to 2024
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Related organizations: 2 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 — Transparency & Controls: Pay-setting controls scored 0/100.
  • Review — Accountability: Governance controls: 3 of 9 not reported.
  • High — Growth: Program expense growth scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Sustainability: Officer compensation ratio scored 7/100.