South Carolina Community Loan Fund

What it reported doing in 2024

Loan Program and Other Related Fees: Loan application fees are earned and recorded as revenue at a point in time when the loan application is completed by the applicant with all required documentation and accepted by the Organization. Loan origination fees are earned on loan closings and recorded as revenue at a point in time when the performance obligation is met, i.e., when the loan closes and funds are loaned to the customer.The Organization requires a signed promissory note with all borrowers which constitutes a contract between the Organization and the customer, states the loan terms, and lays out the obligations of the Organization and the borrower. Each individual loan receivable was analyzed separately and has its own specific terms. Under ASC 606, late fee income related to these loan receivables are recognized as revenue at a point in time when the loan payments are due and the customer has not paid these payments per the terms in the signed contract. As the due date passes for the loan payments and the amounts go unpaid, the Organization will recognize late fees for the loan funds at the respective terms per the individual loandocument. The Organization had a home buyer assistance (HBA) program for several years as discussed earlier. Under this program, the Organization was eligible for a portion of sales proceeds for a property that they have previously provided HBA funds on to assist the home buyer. At the time of the original advance of HBA funds, a signed contract was entered into with all customers that received funds from the Organization which stated the terms of repayment of a portion of the net sales proceeds if the property was sold before 20 years from the date of the funds, which constitutes a contract between the Organization and the customer. Under these contracts, the Organization is considered to meet its performance obligation at a point in time when the respective property is determined to be sold in less than 20 years from the advance of funds by the Organization and the sale of the property to a third party has been closed. Under ASC 606, the amount of the revenue is determined at the time of the sale per the closing statement and recognizesrevenue at that point in time.

Financial Efficiency

• Mission deployment rate: 40.1%; rating input score 40
• Program expense ratio: 68.6%; rating input score 69
• Fundraising efficiency: $40.9 raised per $1 spent on fundraising; rating input score 75; 75th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 2 of 6 controls in place; rating input score 33
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • 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: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 38.7%; rating input score 88; 88th percentile among comparable filings
• Total-asset coverage ratio: 11.7; rating input score 92; 92nd percentile among comparable filings
• Liabilities to assets ratio: 0.69; rating input score 14; 14th percentile among comparable filings
• Officer compensation ratio: 17%; rating input score 16; 16th percentile among comparable filings

Growth

• Program expense growth: 10.8% per year; rating input score 100; 67th percentile among comparable filings
• Revenue growth: 8.5% per year; rating input score 100; 62nd percentile among comparable filings
• Asset growth: 12.9% per year; rating input score 100; 68th percentile among comparable filings