Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
NEIGHBORHOOD FINANCE CORPORATION
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
1912 SIXTH AVENUE
 
Room/suite
City or town, state or country, and ZIP + 4
DES MOINES, IA50314
D Employer identification number

42-1353472
E Telephone number

G Gross receipts $ 3,524,658
F Name and address of principal officer:
HOLLY OLSON
1912 SIXTH AVENUE
DES MOINES,IA50314
I
Tax-exempt status: (   ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.NEIGHBORHOODFINANCE.ORG
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1990
M State of legal domicile: IA
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: LENDING PROGRAMS & SERVICES TO FACILITATE TARGETED NEIGHBORHOOD REVITALIZATION IN POLK COUNTY.
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 13
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 2
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 19
6 Total number of volunteers (estimate if necessary) .... 6 41
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 0
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b 0
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 2,470,768 1,441,204
9 Program service revenue (Part VIII, line 2g) ......... 1,700,604 2,049,201
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 178,631 34,253
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 0 0
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 4,350,003 3,524,658
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 1,263,735 1,560,708
14 Benefits paid to or for members (Part IX, column (A), line 4) .... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 962,516 907,167
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 997,665 643,385
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 3,223,916 3,111,260
19 Revenue less expenses. Subtract line 18 from line 12...... 1,126,087 413,398
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 35,708,412 35,846,548
21 Total liabilities (Part X, line 26)............ 6,168,140 5,892,878
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 29,540,272 29,953,670
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: NEIGHBORHOOD FINANCE CORPORATION PROVIDES UNIQUE LENDING PROGRAMS AND RELATED SERVICES TO FACILITATE TARGETED NEIGHBORHOOD REVITALIZATION IN POLK COUNTY, IOWA THROUGH PARTNERSHIPS WITH RESIDENTS, GOVERNMENTS, COMMUNITY-BASED ORGANIZATIONS AND THE BUSINESS COMMUNITY.
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 293,245 including grants of $   ) (Revenue $ 2,032,815 )
LOAN ORIGINATION: NEIGHBORHOOD REVITALIZATION IS ONE OF THE KEY MISSIONS OF NFC. THIS IS ACCOMPLISHED BY PROVIDING A LOAN FOR REPAYMENT AS WELL AS A FORGIVABLE LOAN FOR EACH QUALIFIED TRANSACTION. THESE TWO LOANS WORK LIKE A BICYCLE BUILT FOR TWO - THE LEAD RIDER IS THE FIRST MORTGAGE LOAN SECURED BY NFC FOR REPAYMENT AND THE SECOND RIDER IS THE SECOND MORTGAGE LOAN SECURED BY NFC TO BE FORGIVEN OVER A SPECIFIED PERIOD OF TIME (TYPICALLY 5 YEARS). ALL MORTGAGE LOAN APPLICATIONS ARE UNDERWRITTEN TO ADHERE TO CURRENT SECONDARY MARKET GUIDELINES.IN 2010, NFC CLOSED 204 LOANS. THIS IS THE NUMBER OF CLIENTS SERVED THROUGH OUR PURCHASE LOAN, REFINANCE AND HOME IMPROVEMENT PRODUCTS. THIS IS ALSO THE NUMBER OF PROPERTIES THAT WERE THE BENEFICIARY OF PROPERTY REVITALIZATION. THE TOTAL DOLLAR AMOUNT OF LOANS CLOSED IN 2010 WAS $13,874,140. PURCHASE LOAN, REFINANCE AND HOME IMPROVEMENT TRANSACTIONS WERE COMPLETED IN AREAS OF DES MOINES THAT ARE TARGETED FOR REVITALIZATION. HOME IMPROVEMENT TRANSACTIONS WERE COMPLETED IN SPECIFIC WEST DES MOINES NEIGHBORHOODS.THE NEIGHBORHOODS ARE TYPICALLY LOW INCOME CENSUS TRACTS. IN 2010, 174 LOANS CLOSED WERE MADE TO BORROWERS THAT WERE IN LOW TO MODERATE INCOME CENSUS TRACT AND/OR LOW TO MODERATE INCOME FOR POLK COUNTY, IOWA. OF THESE 174 LOANS, 132 LOANS WERE MADE TO BORROWERS THAT HAVE LOW INCOME IN LOW INCOME CENSUS TRACTS; 42 WERE MADE TO BORROWERS WITH LOW INCOME, BUT NOT IN A LOW INCOME CENSUS TRACT. THE OTHER 30 LOANS CLOSED IN 2010 WERE MADE TO NON-CRA ELIGIBLE BORROWERS IN NON-LOW INCOME CENSUS TRACTS. IN 2010, 85.29% OF LOANS CLOSED WERE COMMUNITY REINVESTMENT ACT (CRA) ELIGIBLE. IN 2010, 11.27% OF THE LOANS CLOSED WERE TO MINORITY BORROWERS. NEARLY ALL RESIDENTIAL MORTGAGE LOANS CLOSED THROUGH NFC ARE TO OWNER OCCUPANTS. THE NUMBER OF HOME PURCHASE LOANS CLOSED IN 2010 WAS 97. NFC CLOSED 54 HOME IMPROVEMENT LOANS AND 53 REFINANCE LOANS. ADDITIONALLY, IN 2010, 88% OF THE HOME PURCHASE LOANS CLOSED WERE TO FIRST TIME HOME BUYERS.IN 2010, NFC DISCONTINUED THE RESCUE AND REHAB REFINANCE (R3) LOAN PRODUCT DUE TO LACK OF USE.
4b (Code:   ) (Expenses $ 1,634,947 including grants of $ 1,560,708 ) (Revenue $   )
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 EACH BORROWER ON FORM 1099C EACH YEAR UNTIL THE ENTIRE AMOUNT IS FORGIVEN.IN 2010, NFC CLOSED $1,980,262 IN FORGIVABLE PROPERTY REHABILITATION LOANS. THE FORGIVABLE PROPERTY REHABILITATION LOANS WERE GRANTED IN 23 NEIGHBORHOODS AND OTHER LOW INCOME CENSUS TRACTS. MOST PROPERTIES WITH NFC FUNDING FOR HOME PURCHASE ARE INSPECTED BY A CITY OF DES MOINES INSPECTOR TO MAKE SURE ALL CODE VIOLATIONS AT THE PROPERTY ARE ADDRESSED THROUGH THE HOMEOWNER'S PROPERTY REHABILITATION PROJECTS. THE CITY OF DES MOINES INSPECTOR ALSO PROVIDES AUTHORIZATION FOR PAYOUT ONCE THE PROPERTY REHABILITATION PROJECT IS PROPERLY COMPLETED. THE CITY OF DES MOINES INSPECTOR NOTIFIES NFC WHEN THE PROJECT IS COMPLETED AND VERIFIES THAT IT WAS COMPLETED 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.
4c (Code:   ) (Expenses $ 331,440 including grants of $   ) (Revenue $   )
AT NFC PROPERTIES LLC, OUR GOAL IS TO PROVIDE SAFE, AFFORDABLE, QUALITY HOUSING TO PEOPLE IN LOWER INCOME BRACKETS. THAT IS ACCOMPLISHED BY REHABILITATING PROPERTIES THAT ARE IN BELOW NORMAL OR WORSE CONDITION, LOCATED IN DISTRESSED NEIGHBORHOODS. THE PROPERTIES ARE SOLD TO OWNER OCCUPANTS UPON COMPLETION. IN 2010 NFC PROPERTIES LLC ACQUIRED 12 PROPERTIES. OF THOSE 12 PROPERTIES 10 WERE FROM NFC'S REO INTAKE THROUGH BORROWER DEFAULT, AND 2 WERE PURCHASED AS REO'S FROM OTHER LENDERS. 11 OF THE UNITS WERE COMPLETELY REHABBED AND 7 OF THE UNITS WERE SOLD. ALL 7 HOMES WERE SOLD TO PEOPLE AT OR BELOW 80% OF MEDIAN INCOME. WE FOCUS ON ENERGY EFFICIENCY BY ADDING HIGH EFFICIENCY FURNACE AND A/C, VINYL LOW-E WINDOWS, AND BLOWN CELLULOSE INSULATION. THIS HELPS INSURE THAT THE HOME STAYS AFFORDABLE FOR THE FUTURE HOMEBUYER.
(Code:   ) (Expenses $ 129,574 including grants of $   ) (Revenue $ 11,511 )
NFC'S HOME OWNERSHIP CENTER OFFERS HOME BUYER EDUCATION AND A TOOL LENDING LIBRARY. EDUCATION PROGRAMS INCLUDE INTRODUCTION TO HOME OWNERSHIP, BANK CLOSING CLASSES, FINANCIAL/DEBT COUNSELING, FORECLOSURE PREVENTION AND ANTI-PREDATORY LENDING ISSUES. CLASSES ARE OFFERED INDIVIDUALLY OR IN GROUP SETTINGS. THERE IS NO CHARGE FOR NFC'S EDUCATIONAL PROGRAMS. THE NFC TOOL LENDING LIBRARY PROVIDES TOOLS TO ELIGIBLE INDIVIDUALS AND GROUPS WITH PROPERTY REPAIR AND MAINTENANCE NEEDS. FOR A MODEST ANNUAL FEE, MEMBERS CAN BORROW TOOLS AND RECEIVE TECHNICAL ASSISTANCE FOR A VARIETY OF PROJECTS.AS OF DECEMBER 31, 2010, 269 HOUSEHOLDS ARE ACTIVE MEMBERS OF THE TOOL LENDING LIBRARY AND 1,266 TOOLS WERE LOANED DURING 2010. 69% OF THE MEMBER HOUSEHOLDS WERE AT OR BELOW 80% MEDIAN INCOME AND 8% WERE MINORITY. NFC HAS ESTIMATED THAT THIS PROGRAM HAS SAVED TOOL LENDING LIBRARY MEMBERS APPROXIMATELY $144,000 IN TOOL RENTAL EXPENSE DURING 2010.
4d Other program services. (Describe in Schedule O.)
(Expenses $ 129,574 including grants of $   ) (Revenue $ 11,511 )
4e Total program service expensesMediumBullet$ 2,389,206
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule AClick to see attachment.....................
1
Yes
 
2
Is the organization required to complete Schedule B, Schedule of Contributors? Click to see attachment........
2
Yes
 
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................
4
 
No
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
 
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
Yes
 
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
Yes
 
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
 
No
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
Yes
 
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
 
No
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
 
No
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
Yes
 
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II.. Click to see attachment
21
 
No
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III..... Click to see attachment
22
Yes
 
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................
23
 
No
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................
24a
 
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
 
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
 
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
 
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I...... Click to see attachment
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................ Click to see attachment
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II........................... Click to see attachment
26
Yes
 
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III............... Click to see attachment
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV ......................... Click to see attachment
28a
Yes
 
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV................... Click to see attachment
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV.. Click to see attachment
28c
Yes
 
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........ Click to see attachment
33
Yes
 
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1..................... Click to see attachment
34
 
No
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
 
No
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2... Click to see attachment
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2........... Click to see attachment
36
 
No
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VIClick to see attachment
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
1,064
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
Yes
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
19
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
Yes
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
 
No
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
 
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
No
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
No
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
No
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
No
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
13
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
2
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
 
No
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
 
No
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
MARK ALBERICO
1912 SIXTH AVENUE
DES MOINES,IA50314
(515) 246-0010
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) KATHY KAHOUN
CITY OF DES MOINES
 1.00 X           0 0 0
(2) BRIAN BEVERLY
US BANK
 1.00 X           0 0 0
(3) DEB ANDERSON ALTERNATE
POLK CTY BD SUPERVISORS
 1.00 X           0 0 0
(4) JOHN ROWEN
POLK COUNTY PUBLIC WORKS
 1.00 X           0 0 0
(5) ROBERT BROWNELL
POLK CTY BD SUPERVISORS
 1.00 X           0 0 0
(6) JEANNE MILLER
US BANK
 1.00 X           0 0 0
(7) JANICE CONEY
PRINCIPAL BANK
 1.00 X           0 0 0
(8) JENNIFER COOPER - VICE PRES
BANKERS TRUST COMPANY
 1.00 X   X       0 0 0
(9) LANNY BENISHEK
WELLS FARGO BANK
 1.00 X           0 0 0
(10) KEVIN KOPASKA- PRES
BANK OF AMERICA
 1.00 X   X       0 0 0
(11) CHRISTINE HENSLEY - SECR
CITY OF DES MOINES
 1.00 X   X       0 0 0
(12) PAM CARMICHAEL
NEIGHBORHOOD REPRESENTATIV
 1.00 X           0 0 0
(13) JEANNE JOHNSON
NEIGHBORHOOD REPRESENTATIV
 1.00 X           0 0 0
(14) CYNDI CHEN
NEIGHBORHOOD REPRESENTATIV
 1.00 X           0 0 0
(15) JOHN MORRISSEY
NEIGHBORHOOD REPRESENTATIV
 1.00 X           0 0 0
(16) FRANK OWENS
NEIGHBORHOOD REPRESENTATIV
 1.00 X           0 0 0
(17) CADE LINDAMAN
COMMUNITY STATE BANK
 1.00 X           0 0 0
Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(18) ROBERT GROTE
WELLS FARGO BANK
 1.00 X           0 0 0
(19) HOLLY OLSON
EXECUTIVE DIRECTOR
 40.00     X       105,432 0 18,382
(20) PATTY COOK
VP LOANS & ASST SECR
 40.00     X       71,684 0 16,900
(21) MARK ALBERICO
VP FINANCE & ADMIN/TREASUR
 40.00     X       82,440 0 23,022


















1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 259,556 0 58,304
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet1
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
 
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
 
No
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
NATIONWIDE ADVANTAGE MORTGAGE COMPANY
1100 LOCUST STREET
DES MOINES,IA50391 		TAX, INSURANCE, CLOSING FEES 2,538,518
WELLMARK - BLUE CROSS BLUE SHIELD OF IOW
1331 GRAND AVENUE
DES MOINES,IA503069232 		EMPLOYEE HEALTH INSURANCE 145,855
IOWA REALTY COMPANY INC
3501 WESTOWN PARKWAY
WEST DES MOINES,IA50266 		COMMISSIONS 137,981
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet3
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d  
e Government grants (contributions)1e 1,166,667
f All other contributions, gifts, grants, and
similar amounts not included above1f 		274,537
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet 1,441,204
Program Service Revenue Business Code
2a LOAN FEES/SVC CHGS 531,390 1,446,180 1,441,305   4,875
b PROG SVC INTEREST 531,390 603,021 603,021    
c
d
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 2,049,201
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 34,253     34,253
4 Income from investment of tax-exempt bond proceeds..MediumBullet        
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents    
b Less: rental expenses    
c Rental income or (loss)    
d Net rental income or (loss).......MediumBullet        
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory    
b Less: cost or other basis and sales expenses    
c Gain or (loss)    
d Net gain or (loss)..........MediumBullet        
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet        
Miscellaneous Revenue Business Code
11a            
b            
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet  
12 Total revenue. See Instructions....MediumBullet 3,524,658 2,044,326 0 39,128
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21    
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22 1,560,708 1,560,708
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 317,860 88,584 229,276  
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....        
7 Other salaries and wages 446,626 351,418 95,208  
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) .... 19,677 15,085 4,592  
9 Other employee benefits ....... 72,364 51,632 20,732  
10 Payroll taxes ........... 50,640 30,984 19,656  
11 Fees for services (non-employees):        
a Management ......        
b Legal ......... 25,362 4,622 20,740  
c Accounting ........... 32,936   32,936  
d Lobbying ...........        
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ......        
g Other .......... 16,409 3,500 12,909  
12 Advertising and promotion .... 71,654 19,073 52,581  
13 Office expenses ....... 76,966 11,148 65,818  
14 Information technology ...... 30,587   30,587  
15 Royalties ..        
16 Occupancy ........... 14,149 741 13,408  
17 Travel ............ 8,047 3,615 4,432  
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings .... 9,755 4,019 5,736  
20 Interest ........... 140,060 140,060    
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization ..... 67,548 1,536 66,012  
23 Insurance .............. 47,622 15,555 32,067  
24 Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a REO 233,273 233,273    
b HOC OPERATIONS 10,098 10,098    
c DUES & SUBSCRIPTIONS 3,767 1,790 1,977  
d LOAN OPERATIONS -163,167 -163,167    
e
f All other expenses 18,319 4,932 13,387  
25 Total functional expenses. Add lines 1 through 24f 3,111,260 2,389,206 722,054 0
26 Joint costs. Check here MediumBullet if following
SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing ..........   1  
2 Savings and temporary cash investments ....... 8,593,095 2 10,863,670
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net .........   4  
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L .......... 565,063 5 81,991
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L ..........   6  
7 Notes and loans receivable, net ............. 11,152,759 7 8,234,840
8 Inventories for sale or use ..............   8  
9 Prepaid expenses and deferred charges ............   9  
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a 885,602
b Less: accumulated depreciation. ..... 10b 439,233 383,980 10c 446,369
11 Investments—publicly traded securities ..........   11  
12 Investments—other securities. See Part IV, line 11 ......   12  
13 Investments—program-related. See Part IV, line 11 .. 14,874,717 13 16,156,442
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 138,798 15 63,236
16 Total assets. Add lines 1 through 15 (must equal line 34)... 35,708,412 16 35,846,548
Liabilities 17 Accounts payable and accrued expenses . 165,893 17 90,045
18 Grants payable ..........   18  
19 Deferred revenue ..........   19  
20 Tax-exempt bond liabilities ..........   20  
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L.......... 3,700,000 22 3,700,000
23 Secured mortgages and notes payable to unrelated third parties ..   23  
24 Unsecured notes and loans payable to unrelated third parties .... 1,000,000 24 1,000,000
25 Other liabilities. Complete Part X of Schedule D..... 1,302,247 25 1,102,833
26 Total liabilities. Add lines 17 through 25..... 6,168,140 26 5,892,878
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 3,226,605 27 3,937,522
28 Temporarily restricted net assets ..... 25,848,667 28 25,476,148
29 Permanently restricted net assets ..... 465,000 29 540,000
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... 29,540,272 33 29,953,670
34 Total liabilities and net assets/fund balances ..... 35,708,412 34 35,846,548
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
3,524,658
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
3,111,260
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
413,398
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
29,540,272
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
0
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
29,953,670
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
Yes
 
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
Yes
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service
Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
right arrow Attach to Form 990 or Form 990-EZ. right arrow See separate instructions.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Part I
Reason for Public Charity Status (All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
f
g
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization? ................
11g(i)
 
 
(ii) a family member of a person described in (i) above? ......................
11g(ii)
 
 
(iii) a 35% controlled entity of a person described in (i) or (ii) above? ................
11g(iii)
 
 
h
(i)
Name of supported organization 		(ii)
EIN 		(iii)
Type of organization (described on lines 1- 9 above or IRC section (see instructions)) 		(iv)
Is the organization in col. (i) listed in your governing document? 		(v)
Did you notify the organization in col. (i) of your support? 		(vi)
Is the organization in col. (i) organized in the U.S.? 		(vii)
Amount of support?
Yes No Yes No Yes No
Total                  

For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .... 2,484,298 2,407,869 2,407,586 2,470,768 1,441,204 11,211,725
2 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......            
3 The value of services or facilities furnished by a governmental unit to the organization without charge..            
4 Total. Add lines 1 through 3.. 2,484,298 2,407,869 2,407,586 2,470,768 1,441,204 11,211,725
5 The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..            
6 Public Support. Subtract line 5 from line 4.           11,211,725
Section B. Total Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
7 Amounts from line 4.. 2,484,298 2,407,869 2,407,586 2,470,768 1,441,204 11,211,725
8 Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources.. 783,560 954,381 646,559 178,631 34,253 2,597,384
9 Net income from unrelated business activities, whether or not the business is regularly carried on..            
10 Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..            
11 Total support (Add lines 7 through 10).           13,809,109
12
12
7,444,129
13
Section C. Computation of Public Support Percentage
14
14
81.190 %
15
15
80.680 %
16a
b
17a
b
18
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
1 Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .            
2 Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......            
3 Gross receipts from activities that are not an unrelated trade or business under section 513..            
4 Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...            
5 The value of services or facilities furnished by a governmental unit to the organization without charge..            
6 Total. Add lines 1 through 5.            
7a Amounts included on lines 1, 2, and 3 received from disqualified persons...            
b Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.            
c Add lines 7a and 7b..            
8 Public Support (Subtract line 7c from line 6.)            
Section B. Total Support
Calendar year (or fiscal year beginning in) (a) 2006 (b) 2007 (c) 2008 (d) 2009 (e) 2010 (f) Total
9 Amounts from line 6...            
10a Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..            
b Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.            
c Add lines 10a and 10b.            
11 Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.            
12 Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)            
13 Total support (Add lines 9, 10c, 11 and 12.).            
14
Section C. Computation of Public Support Percentage
15
15
 
16
16
 
Section D. Computation of Investment Income Percentage
17
17
 
18
18
 
19a
b
20
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
 
Explanation
 
 
 
 
Schedule A (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
Schedule B
(Form 990, 990-EZ,
or 990-PF)
Department of the Treasury
Internal Revenue Service
Schedule of Contributors
Arrow Bullet Attach to Form 990, 990-EZ, or 990-PF.
OMB No. 1545-0047
2010
Name of organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Organization type (check one):
Filers of:
Section:
Form 990 or 990-EZ





Form 990-PF




Check if your organization is covered by the General Rule or a Special Rule.  
Note. Only a section 501(c)(7), (8), or (10) organization can check boxes for both the General Rule and a Special Rule. See instructions.
General Rule—
Special Rules
......................... Arrow Bullet   $    
Caution. An Organization that is not covered by the General Rule and/or the Special Rules does not file Schedule B (Form 990,
990-EZ, or 990-PF), but it must answer “No” on Part IV, line 2 of its Form 990, or check the box in the heading of its
Form 990-EZ, or on line 2 of its Form 990-PF, to certify that it does not meet the filing requirements of Schedule B (Form 990,
990-EZ, or 990-PF).
For Paperwork Reduction Act Notice, see the Instructions
for Form 990, 990-EZ, or 990-PF.
Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part I
Name of organization
NEIGHBORHOOD FINANCE CORPORATION
  		Employer identification number

42-1353472
Part I
Contributors (see Instructions)
     
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
RESTRICTED
RESTRICTED
 

     
RESTRICTED
RESTRICTED  
RESTRICTED, RESTRICTED   RESTRICTED

$RESTRICTED




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
(a)
No.		 (b)
Name, address, and ZIP + 4		 (c)
Aggregate contributions		 (d)
Type of contribution
 
 
 

     
 
   

$  




(Complete Part II if there is
a noncash contribution.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part II
Name of organization
NEIGHBORHOOD FINANCE CORPORATION
  		Employer identification number

42-1353472
Part II
Noncash Property (see Instructions)
     
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
(a) No.
from
Part I		 (b)
Description of noncash property given		 (c)
FMV (or estimate)
(see instructions) 		(d)
Date received
 
$    
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Schedule B (Form 990, 990-EZ, or 990-PF) (2010)
Page 1 of 1 of Part III
Name of organization
NEIGHBORHOOD FINANCE CORPORATION
  		Employer identification number

42-1353472
Part III
Exclusively religious, charitable, etc., individual contributions to section 501(c)(7), (8), or (10) organizations
aggregating more than $1,000 for the year. (Complete columns (a) through (e) and the following line entry.)
For organizations completing Part III, enter the total of exclusively religious, charitable, etc.,
contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet $  
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
(a) No.
from
Part I		 (b)
Purpose of gift		 (c)
Use of gift		 (d)
Description of how gift is held
 
(e)
Transfer of gift
Transferee's name, address, and ZIP 4 Relationship of transferor to transferee
 
 
       
 
Schedule B (Form 990, 990-EZ, or 990-PF) (2010)

Additional Data


Software ID:  
Software Version:  
SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06 ........ 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance .... 26,313,667 25,307,082 25,172,910
b Contributions ........ 1,259,327 2,165,000 2,138,000
c Investment earnings or losses ... 28,989 125,199 636,938
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		1,585,835 1,283,614 2,640,766
f Administrative expenses ....      
g End of year balance ...... 26,016,148 26,313,667 25,307,082
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet13.000 %
b
Permanent endowment: SchDMd Bullet2.000 %
c
Term endowment: SchDMd Bullet85.000 %
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
No
(ii) related organizations ........................
3a(ii)
 
No
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................      
b Buildings ................ 708,039   330,250 377,789
c Leasehold improvements ............        
d Equipment ................ 177,563   108,983 68,580
e Other .................        
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 446,369
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
Other








Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)Small Bullet  
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value
(1) OTHER REAL ESTATE OWNED 774,109 F
(2) REAL ESTATE DEVELOPMENT PROPERTIES 310,540 F
(3) FORGIVABLE LOANS 6,128,808 C
(4) INVESTOR GUARANTEE CUSTODIAL DEPOSITS 7,664,160 F
(5) FANNIE MAE CUSTODIAL DEPOSITS 1,278,825 C




Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)Small Bullet 16,156,442
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet  
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
LOANS AND GRANTS IN PROCESS 919,083
INTEREST PAYABLE 33,750
EQUITY EQUIVALENT INVESTMENT 150,000






Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 1,102,833
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1 3,524,658
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 3,111,260
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 413,398
4 Net unrealized gains (losses) on investments .......................... 4  
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8  
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 0
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 413,398
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 3,524,658
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a  
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d ..................... 2e 0
3 Subtract line 2e from line 1..................... 3 3,524,658
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV): ........... 4b  
c Add lines 4a and 4b....................... 4c 0
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5 3,524,658
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 3,111,260
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d...................... 2e 0
3 Subtract line 2e from line 1..................... 3 3,111,260
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV): ............ 4b  
c Add lines 4a and 4b....................... 4c 0
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5 3,111,260
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: CONTRIBUTED PRIMARILY FROM THE CITY OF DES MOINES OR POLK COUNTY, THE ENDOWMENT FUNDS PROVIDE NFC WITH THE FINANCIAL ABILITY TO CONTINUE THE FORGIVABLE LOANS OFFERED BY NFC, WHICH ARE THE CORNERSTONE OF NFC'S LOAN PROGRAM. ALSO, THE ENDOWMENT FUNDS ALLOW NFC TO PROVIDE GUARANTEE FIRST LOSS RESERVE FUNDS, WHICH ARE ESSENTIAL TO ATTRACT INVESTOR CAPITAL TO NFC'S NONTRADITIONAL LOAN PRODUCTS. IN ADDITION, NEIGHBORWORKS AMERICA ENDOWMENT CONTRIBUTIONS ARE USED FOR REAL ESTATE DEVELOPMENT PROGRAM PROPERTY REHABILITATION AND ARE RETURNED TO THE PROGRAM, FOR FUTURE PROPERTY USE, UPON THE SALE OF THOSE PROPERTIES.
    FIN 48 FOOTNOTE: EFFECTIVE JANUARY 1, 2009, THE COMPANY ADOPTED THE PROVISIONS OF INTERPRETATION "ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES". THE INTERPRETATION CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS. THE INTERPRETATION PROVIDES GUIDANCE ON INCOME TAX MEASUREMENT OF A TAX POSITION TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, WHICH INCLUDES QUALIFYING AS A TAX-EXEMPT ORGANIZATION FOR INCOME TAX REPORTING PURPOSES. THE INTERPRETATION'S GUIDANCE DID NOT HAVE ANY EFFECT ON THE COMPANY'S CONSOLIDATED FINANCIAL STATEMENTS AT THE DATE OF ADOPTION.
Schedule D (Form 990) 2010

Additional Data


Software ID:  
Software Version:  




Schedule I
(Form 990)
Department of the Treasury
Internal Revenue Service
Grants and Other Assistance to Organizations,
Governments and Individuals in the United States
Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.
lBullet Attach to Form 990
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number
42-1353472
Part I
General Information on Grants and Assistance
1
Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, and
the selection criteria used to award the grants or assistance? ....................................
2
Describe in Part IV the organization's procedures for monitoring the use of grant funds in the United States.
Part II
Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21 for any recipient that received more than $5,000. Check this box if no one recipient received more than $5,000. Use
Part IV and Schedule I-1 (Form 990) if additional space is needed ......................... lBullet
(a) Name and address of organization
or government		 (b) EIN (c) IRC Code section
if applicable		 (d) Amount of cash grant (e) Amount of non-cash
assistance		 (f) Method of valuation
(book, FMV, appraisal,
other)		 (g) Description of
non-cash assistance		 (h) Purpose of grant
or assistance






















2
Enter total number of section 501(c)(3) and government organizations ......................... Bullet Image
 
3
Enter total number of other organizations ................................ . Bullet Image
 
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50055P
Schedule I (Form 990) 2010

Schedule I (Form 990) 2010
Page 2
Part III
Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.
(a)Type of grant or assistance (b)Number of
recipients		 (c)Amount of
cash grant		 (d)Amount of
non-cash assistance		 (e)Method of valuation (book,
FMV, appraisal, other)		 (f)Description of non-cash assistance
(1) FORGIVENESS OF DEBT 856 1,560,708   BOOK  













Part IV
Supplemental Information. Complete this part to provide the information required in Part I, line 2, and any other additional information.
Identifier Return Reference Explanation
PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: FORGIVABLE LOANS: ELIGIBLE BORROWERS MAY BE AWARDED FORGIVABLE LOANS UP TO $22,500, DEPENDING ON THE PROGRAM. LOANS AWARDED ARE FORGIVEN 20% PER YEAR OVER THE FIVE YEAR LIFE OF THE LOAN. THE NFC MULTI-FAMILY DOWN SIZING PROGRAM LOANS ARE FORGIVEN 10% PER YEAR OVER THE TEN YEAR LIFE OF THE LOAN.
Schedule I (Form 990) 2010


Additional Data


Software ID:  
Software Version:  


Schedule L
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Transactions with Interested Persons
MediumBullet Complete if the organization answered
"Yes" on Form 990, Part IV, lines 25a, 25b, 26, 27, 28a, 28b, or 28c,
or Form 990-EZ, Part V lines 38a or 40b.
MediumBullet Attach to Form 990 or Form 990-EZ. MediumBulletSee separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Part I
Excess Benefit Transactions (section 501(c)(3) and section 501 (c)(4) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.
1(a) Name of disqualified person (b) Description of transaction (c) Corrected?
Yes No





2
Enter the amount of tax imposed on the organization managers or disqualified persons during the year under section 4958. ......................... Bullet Image$
 
3
Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ....... Bullet Image$
 

Part II
Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 26, or Form 990-EZ, Part V, line 38a.
(a) Name of interested person and purpose (b) Loan to or from the organization? (c)Original principal amount (d)Balance due (e) In default? (f) Approved by board or committee? (g)Written agreement?
To From Yes No Yes No Yes No
(1) LARRY JAMES JR FORMER NFC BOARD M
FORGIVABLE PORTION OF A MORTGAGE LOAN 		  X 21,500 4,300   No Yes   Yes  
(2) ARLINGTON HALLET LP (JODI BEAVERS FORMER NFC BOARD MEMBER)
 
RENOVATION OF LOW INCOME HOUSING TAX CREDIT UNITS 		  X 200,000 77,691   No Yes   Yes  
(3) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
 
SEE SCHEDULE 0 EXPLANATION 		X   1,000,000 1,000,000   No Yes   Yes  
(4) BANK OF THE WEST (FKA COMMERCIAL FEDERAL)(CHRISTINE HENSLEY BOARD MEMBER)
 
SEE SCHEDULE 0 EXPLANATION 		X   1,500,000 1,500,000   No Yes   Yes  
(5) PRINCIPAL BANK (JANICE CONEY BOARD MEMBER)
 
SEE SCHEDULE 0 EXPLANATION 		X   300,000 300,000   No Yes   Yes  
(6) WEST BANK (GEORGANN MEFFERD FORMER NFC BOARD MEMBER)
 
SEE SCHEDULE 0 EXPLANATION 		X   300,000 300,000   No Yes   Yes  
(7) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
 
SEE SCHEDULE 0 EXPLANATION 		X   350,000 350,000   No Yes   Yes  
(8) US BANK (JEANNE MILLER & BRIAN BEVERLY NFC BOARD MEMBERS)
 
SEE SCHEDULE 0 EXPLANATION 		X   250,000 250,000   No Yes   Yes  
Total ...............Small Bullet $ 3,781,991
Part III
Grants or Assistance Benefitting Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 27.
(a) Name of interested person (b)Relationship between interested person and the organization (c)Amount of grant or type of assistance
For Privacy Act and Paperwork Reduction Act Notice, see the
Instructions for Form 990 or 990-EZ.
Cat. No. 50056A
Schedule L (Form 990 or 990-EZ) 2010
Schedule L (Form 990 or 990-EZ) 2010
Page 2
Part IV
Business Transactions Involving Interested Persons.
Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.
(a) Name of interested person (b) Relationship between interested person and the organization (c) Amount of transaction (d) Description of transaction (e) Sharing of organization's revenues?
Yes No
(1) HOME INC (PAM CARMICHEAL BOARD MEMBER)
  		PAM CARMICHAEL IS EXECUTIVE DIRECTOR OF HOME, INC AND A BOARD MEMBER OF NFC 346,008 CONSTRUCTION LOAN REPAYMENTS OF LOC ISSUED   No
(2) CITY OF DES MOINES (KATHY KAHOUN & CHRISTINE HENSELEY)
  		NFC BOD KATHY KAHOUN & CHRISTINE HENSLEY REPRESENT CITY OF DSM 1,166,667 28E AGREEMENT CONTRIBUTION   No
(3) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
  		BENISHEK & GROTE ARE SR CREDIT OFFICERS AT WELLS FARGO & NFC BOARD MEMBERS 45,288 INTEREST PAYMENT   No
(4) BANK OF THE WEST (CHRISTINE HENSLEY BOARD MEMBER)
  		CHRISTINE HENSLEY IS A V.P. AT BANK OF THE WEST AND A BOARD MEMBER OF NFC 45,000 INTEREST PAYMENT   No
(5) PRINCIPAL BANK (JANICE CONEY BOARD MEMBER)
  		JANICE CONEY IS A MANAGER AT PRINCIPAL BANK AND A BOARD MEMBER OF NFC 9,000 INTEREST PAYMENT   No
(6) WEST BANK (GEORGANN MEFFERD FORMER NFC BOARD MEMBER)
  		GEORGANN MEFFERD WAS A VICE PRES AT WEST BANK & A FORMER NFC BOARD MEMBER 9,000 INTEREST PAYMENT   No
(7) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
  		BENISHEK & GROTE ARE SR CREDIT OFFICERS AT WELLS FARGO & NFC BOARD MEMBERS 7,272 INTEREST PAYMENT   No
(8) US BANK (JEANNE MILLER & BRIAN BEVERLY NFC BOARD MEMBERS)
  		MILLER & BEVERLY ARE VICE PRESIDENTS AT US BANK AND NFC BOARD MEMBERS 5,000 INTEREST PAYMENT   No
(9) BANKERS TRUST (JENNIFER COOPER BOARD MEMBER)
  		JENNIFER COOPER IS A VICE PRES. AT BANKERS TRUST AND A BOARD MEMBER OF NFC 1,671,120 NFC LOAN POOL PARTICIPATION   No
(10) PRINCIPAL BANK (JANICE CONEY BOARD MEMBER)
  		JANICE CONEY IS A MANAGER AT PRINCIPAL BANK AND A BOARD MEMBER OF NFC 2,591,448 NFC LOAN POOL PARTICIPATION   No
(11) US BANK (JEANNE MILLER & BRIAN BEVERLY NFC BOARD MEMBERS)
  		MILLER & BEVERLY ARE VICE PRESIDENTS AT US BANK AND NFC BOARD MEMBERS 694,422 NFC LOAN POOL PARTICIPATION   No
(12) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
  		BENISHEK & GROTE ARE SR CREDIT OFFICERS AT WELLS FARGO & NFC BOARD MEMBERS 1,446,787 NFC LOAN POOL PARTICIPATION   No
(13) BANK OF THE WEST (CHRISTINE HENSLEY BOARD MEMBER)
  		CHRISTINE HENSLEY IS A V.P. AT BANK OF THE WEST AND A BOARD MEMBER OF NFC 650,041 NFC LOAN POOL PARTICIPATION   No
(14) WEST BANK (GEORGANN MEFFERD FORMER NFC BOARD MEMBER)
  		GEORGANN MEFFERD WAS A VICE PRES AT WEST BANK & A FORMER NFC BOARD MEMBER 424,557 NFC LOAN POOL PARTICIPATION   No
(15) COMMUNITY STATE BANK (CADE LINDAMAN BOARD MEMBER)
  		CADE LINDAMAN IS VICE PRES. AT COMMUNITY STATE BANK & A BOARD MEMBER OF NFC 671,618 NFC LOAN POOL PARTICIPATION   No
(16) BANK OF AMERICA (KEVIN KOPASKA NFC BOARD MEMBER)
  		KOPASKA IS A VICE PRES. AT BANK OF AMERICA & A FORMER BOARD MEMBER OF NFC 950,694 NFC LOAN POOL PARTICIPATION   No
(17) BANKERS TRUST (JENNIFER COOPER BOARD MEMBER)
  		JENNIFER COOPER IS A VICE PRES. AT BANKERS TRUST AND A BOARD MEMBER OF NFC 685,000 NEW TRUST ACCOUNTS OPENED   No
(18) US BANK (JEANNE MILLER & BRIAN BEVERLY NFC BOARD MEMBERS)
  		MILLER & BEVERLY ARE VICE PRESIDENTS AT US BANK AND NFC BOARD MEMBERS 1,716 FEES AND INTEREST   No
(19) WEST BANK (GEORGANN MEFFERD FORMER NFC BOARD MEMBER)
  		GEORGANN MEFFERD WAS A VICE PRES AT WEST BANK & A FORMER NFC BOARD MEMBER 1,500 FEES AND INTEREST   No
(20) BANK OF AMERICA (KEVIN KOPASKA NFC BOARD MEMBER)
  		KOPASKA IS A VICE PRES. AT BANK OF AMERICA & A FORMER BOARD MEMBER OF NFC 1,999 FEES AND INTEREST   No
(21) BANK OF THE WEST (CHRISTINE HENSLEY BOARD MEMBER)
  		CHRISTINE HENSLEY IS A V.P. AT BANK OF THE WEST AND A BOARD MEMBER OF NFC 1,247 FEES AND INTEREST   No
(22) BANKERS TRUST (JENNIFER COOPER BOARD MEMBER)
  		JENNIFER COOPER IS A VICE PRES. AT BANKERS TRUST AND A BOARD MEMBER OF NFC 1,659 ACCOUNT INTEREST   No
(23) BANKERS TRUST (JENNIFER COOPER BOARD MEMBER)
  		JENNIFER COOPER IS A VICE PRES. AT BANKERS TRUST AND A BOARD MEMBER OF NFC 13,728 SERVICE FEES PAID   No
(24) BANK OF THE WEST (CHRISTINE HENSLEY BOARD MEMBER)
  		CHRISTINE HENSLEY IS A V.P. AT BANK OF THE WEST AND A BOARD MEMBER OF NFC 268 ACCOUNT INTEREST   No
(25) BANK OF THE WEST (CHRISTINE HENSLEY BOARD MEMBER)
  		CHRISTINE HENSLEY IS A V.P. AT BANK OF THE WEST AND A BOARD MEMBER OF NFC 1,749 SERVICE FEES PAID   No
(26) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
  		BENISHEK & GROTE ARE SR CREDIT OFFICERS AT WELLS FARGO & NFC BOARD MEMBERS 46 FEES AND INTEREST   No
(27) WELLS FARGO BANK (LANNY BENISHEK & ROBERT GROTE NFC BOARD MEMBERS)
  		BENISHEK & GROTE ARE SR CREDIT OFFICERS AT WELLS FARGO & NFC BOARD MEMBERS 870 FEES AND INTEREST   No
(28) PRINCIPAL BANK (JANICE CONEY BOARD MEMBER)
  		JANICE CONEY IS A MANAGER AT PRINCIPAL BANK AND A BOARD MEMBER OF NFC 1,582 FEES AND INTEREST   No
(29) COMMUNITY STATE BANK (CADE LINDAMAN BOARD MEMBER)
  		CADE LINDAMAN IS VICE PRES. AT COMMUNITY STATE BANK & A BOARD MEMBER OF NFC 31,026 FEES AND INTEREST   No
(30) BANKERS TRUST (JENNIFER COOPER BOARD MEMBER)
  		JENNIFER COOPER IS A VICE PRES. AT BANKERS TRUST AND A BOARD MEMBER OF NFC 4,136 TRUST ACCOUNT INTEREST   No
(31) HOME INC (PAM CARMICHEAL BOARD MEMBER)
  		PAM CARMICHAEL IS EXECUTIVE DIRECTOR OF HOME, INC AND A BOARD MEMBER OF NFC 11,097 CONSTRUCTION LOAN INTEREST PAYMENTS   No
(32) ARLINGTON HALLET LP (JODI BEAVERS FORMER NFC BOARD MEMBER)
  		BEAVERS IS GP OF METRO PROP(THE GP OF ARLINGTON HALLET LP) & FORMER NFC BOD 2,922 PRINCIPAL AND INTEREST PAYMENTS   No
Part V
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule L (see instructions).
Identifier Return Reference Explanation
Schedule L (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Identifier Return Reference Explanation
FORM 990, PART VI, SECTION B, LINE 11   NEIGHBORHOOD FINANCE CORPORATION'S OFFICERS AND DIRECTORS RECEIVE THE FORM 990 BEFORE THE FINAL VERSION IS SUBMITTED TO THE IRS. NEIGHBORHOOD FINANCE CORPORATION'S MANAGEMENT KEPT THE OFFICERS AND DIRECTORS INFORMED THROUGHOUT THE PROCESS BY HAVING OUR INDEPENDENT THIRD PARTY TAX ADVISORY FIRM UPDATE THE OFFICERS, DIRECTORS, AND/OR MANAGEMENT OF THE CHANGES TO THE FORM 990 AS THEY BECAME FINAL. THIS ALLOWED ALL THOSE INVOLVED IN THE REVIEW PROCESS TIME TO UNDERSTAND THE EXPECTATIONS THE FORM 990 WOULD REQUIRE OF THEM. AFTER MANAGEMENT WORKED WITH OUR INDEPENDENT THIRD PARTY TAX ADVISORY FIRM TO COMPLETE THE FINAL DRAFT OF THE FORM 990, THE FINAL DRAFT WAS MAILED TO EACH DIRECTOR AND OFFICER PRIOR TO THE JULY 28, 2011 BOARD OF DIRECTORS MEETING. THIS ALLOWED THE OFFICERS AND DIRECTORS ADEQUATE TIME TO READ THROUGH THE DRAFT AND COME TO THE BOARD OF DIRECTORS MEETING WITH AN UNDERSTANDING OF WHAT IS BEING FILED. THE INDEPENDENT THIRD PARTY TAX ADVISORY FIRM AND MANAGEMENT ATTENDED THE JULY 28, 2011, BOARD OF DIRECTORS MEETING TO DISCUSS THE FORM 990 AND ANSWER QUESTIONS. THE RESULT OF THIS DISCUSSION WAS APPROVAL TO SUBMIT THE FORM 990 TO IRS. THIS DISCUSSION WAS DOCUMENTED IN THE MINUTES OF THE JULY 28, 2011, BOARD OF DIRECTORS MEETING.
  FORM 990, PART VI, SECTION B, LINE 12C NEIGHBORHOOD FINANCE CORPORATION OFFICERS, DIRECTORS, OR TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE OUR CONFLICT OF INTEREST STATEMENT ANNUALLY. THESE STATEMENTS ARE GIVEN OUT EACH JANUARY. ALL OF THESE STATEMENTS ARE RECEIVED BY AND MAINTAINED BY THE NEIGHBORHOOD FINANCE CORPORATION'S EXECUTIVE DIRECTOR. THE EXECUTIVE DIRECTOR IS USUALLY MADE AWARE OF THE BOARD OF DIRECTORS MEMBERS' AFFILIATIONS AND POTENTIAL CONFLICTS. MOREOVER, AS ISSUES ARE DISCUSSED THROUGHOUT THE YEAR, OUR BOARD OF DIRECTORS MEMBERS VOLUNTARILY RECUSE THEMSELVES FROM VOTING ON ISSUES THAT MAY POSE A CONFLICT OF INTEREST.
  FORM 990, PART VI, SECTION B, LINE 15 NEIGHBORHOOD FINANCE CORPORATION ENGAGED RSM MCGLADREY, AN INDEPENDENT THIRD PARTY FIRM, TO COMPLETE A KEY EXECUTIVE COMPENSATION MARKET ANALYSIS IN NOVEMBER 2007. THE KEY EXECUTIVES IN THIS STUDY WERE THE NEIGHBORHOOD FINANCE CORPORATION'S EXECUTIVE DIRECTOR, VICE PRESIDENT LOANS, AND VICE PRESIDENT FINANCE & ADMINISTRATION. NEIGHBORHOOD FINANCE CORPORATION PROVIDED THE REQUESTED INFORMATION FOR THE ANALYSIS WHILE THE EXECUTIVE COMMITTEE OF THE NEIGHBORHOOD FINANCE CORPORATION BOARD OF DIRECTORS WERE THE OVERSEERS OF THE PROCESS. RSM MCGLADREY'S POINT OF CONTACT FOR THIS STUDY WAS THE NEIGHBORHOOD FINANCE CORPORATION EXECUTIVE COMMITTEE. THE COMPLETED MARKET ANALYSIS WAS REVIEWED AND APPROVED BY THE EXECUTIVE COMMITTEE AS REASONABLE, ACCURATE AND COMPLETE. THE REPORT OUTCOMES WERE DISCUSSED IN A CLOSED SESSION OF THE 2008 MAY EXECUTIVE COMMITTEE MEETING AND THE MAY BOARD OF DIRECTORS MEETING WITHOUT THE KEY EXECUTIVES PRESENT AT EITHER SESSION. THE REPORT WAS FINALIZED IN THE JUNE BOARD OF DIRECTORS MEETING. THIS REPORT IS NOW USED AS THE KEY EXECUTIVE COMPENSATION BENCHMARK FOR COMPARISON WITH FUTURE KEY EXECUTIVE COMPENSATION CHANGES. NOTE EACH YEAR THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS IS RESPONSIBLE FOR APPROVING ALL MANAGEMENT COMPENSATION LEVELS, INCLUDING THE KEY EXECUTIVES. NO CHANGE TO MANAGEMENT COMPENSATION IS MADE WITHOUT EXECUTIVE COMMITTEE APPROVAL. THE LEVEL OF INCREASE FOR EMPLOYEE PAY RATES IS DETERMINED BY THE NFC BUDGET, WHICH IS APPROVED BY THE BOARD. ACTUAL INCREASES ARE PERFORMANCE BASED WITHIN THE BUDGETED AMOUNT. ALL EXCEPTIONS ARE APPROVED BY THE BOARD. DOCUMENTATION OF THIS PROCESS IS MAINTAINED IN THE EXECUTIVE COMMITTEE MEETING MINUTES. NOTE, NFC HAS ONCE AGAIN ENGAGED RSM MCGLADREY TO COMPLETE A COMPENSATION STUDY IN 2011. THE STUDY HAS BEEN EXPANDED TO INCLUDE ALL NFC EMPLOYEES. THE ENGAGEMENT WILL BE FINALIZED BY NOVEMBER, 2011.
  FORM 990, PART VI, SECTION C, LINE 19 NEIGHBORHOOD FINANCE CORPORATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS (WHETHER OR NOT AUDITED) AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST AND AT THE DISCRETION OF NEIGHBORHOOD FINANCE CORPORATION.
  FORM 990, PART XII, QUESTION 2C THE EXECUTIVE COMMITTEE SERVES THE ROLE OF THE AUDIT COMMITTEE. THERE WAS NO CHANGE IN THE PROCESS DURING THE YEAR.
PURPOSE OF LOAN SCHEDULE L, PART II COLUMN A LOANS FROM WELLS FARGO BANK, BANK OF THE WEST, PRINCIPAL BANK, WEST BANK, AND US BANK DISCLOSED ON SCHEDULE L, PART II ARE EQUITY EQUIVALENT INVESTMENTS (EQ2) WITH THE PURPOSE OF EXPANDING NFC'S LENDING CAPACITY FOR LOW INCOME HOME OWNERSHIP, THE RENOVATION OF VACANT AND DISTRESSED MULTI-FAMILY RENTAL PROPERITES AND THE REDEVELOPMENT OF BLIGHTED COMMERCIAL PROPERTIES.
DESCRIPTION OF TRANSACTION: INTEREST PAYMENT SCHEDULE L, PART IV COLUMN A THE TRANSACTIONS DESCRIBED AS "INTEREST PAYMENT" ON SCHEDULE L, PART IV TO WELLS FARGO BANK, BANK OF THE WEST, PRINCIPAL BANK, WEST BANK, AND US BANK, REPRESENT INTEREST PAYMENTS ON EQUITY EQUIVALENT INVESTMENTS (EQ2). THE PURPOSE OF EQ2 IS TO EXPAND NFC'S LENDING CAPACITY FOR LOW INCOME HOME OWNERSHIP, THE RENOVATION OF VACANT DISTRESSED MULTI-FAMILY RENTAL PROPERTIES AND THE REDEVELOPMENT OF BLIGHTED COMMERCIAL PROPERTIES. THE STATED INTEREST RATE IS FROM THE EQ2 OFFERING THAT WAS MADE AVAILABLE TO NUMEROUS INVESTORS IN OCTOBER 2000.
DESCRIPTION OF TRANSACTION: NFC LOAN POOL PARTICIPATION SCHEDULE L, PART IV COLUMN A NFC LOAN POOL PARTICIPATION REFLECTS THE FLOW OF FUNDS TO NFC FOR BANKS TO FUND NFC'S ORIGINATED AND CLOSED LOANS ON A POOL PARTICIPATION BASIS. FUNDING TERMS ARE AVAILABLE FOR UP TO TWELVE INVESTORS AND ARE DETAILED IN THE OFFERING DOCUMENTS. THESE OFFERINGS ARE SEC PRIVATE PLACEMENT OFFERINGS.
DETERMINATION OF VOLUNTEER ESTIMATE: FORM 990, PART I, LINE 6 BOARD OF DIRECTORS=15;RESIDENTIAL LOAN COMMITTEE MEMBERS=6;COMMERCIAL LOAN COMMITTEE MEMBERS=6; REAL ESTATE DEVELOPMENT COMMITTEE MEMBERS=5
CONSOLIDATED FINANCIAL STATEMENT DISCLOSURE: FORM 990, PART IV, LINE 12 THE ORGANIZATION RECEIVES AUDITED GAAP FINANCIAL STATEMENTS ON AN ANNUAL BASIS FROM INDEPENDENT AUDITORS. THE FINANCIAL STATEMENT INCLUDES NFC PROPERTIES LLC WHICH IS A DISREGARDED ENTITY FOR TAX PURPOSES AND IS INCLUDED IN THE 990.
SAVINGS AND TEMPORARY CASH INVESTMENTS FORM 990, PART X, LINE 2 AS OF DECEMBER 31, 2010, APPROXIMATELY $6.4 MILLION OF THE INVESTMENTS HAD BEEN COMMITTED, THROUGH NFC BOARD VOTING ACTIONS, TO FUND FORGIVABLE LOANS AND LOAN LOSS RESERVES RELATED TO SPECIFIC LOAN PARTICIPATION OFFERINGS SUBSEQUENT TO YEAR END. THE MAJORITY OF THE REMAINING FUNDS ARE RESTRICTED FOR SIMILAR PURPOSES PER AN EXTERNAL AGREEMENT THAT NEIGHBORHOOD FINANCE CORPORATION HAS WITH THE CITY OF DES MOINES AND POLK COUNTY.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version:  
SCHEDULE R
(Form 990)
Department of the Treasury
Internal Revenue Service
Related Organizations and Unrelated Partnerships
MediumBulletComplete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.
MediumBulletAttach to Form 990. MediumBullet See separate instructions.

OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
NEIGHBORHOOD FINANCE CORPORATION
 
Employer identification number

42-1353472
Part I
Identification of Disregarded Entities (Complete if the organization answered "Yes" on Form 990, Part IV, line 33.)
(a)
Name, address, and EIN of disregarded entity


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Total income
(e)
End-of-year assets


 		(f)
Direct controlling
entity







(1) NFC PROPERTIES LLC
1912 SIXTH AVE
DES MOINES,IA50314
36-4626868 		REHAB DISTRESSED PROPERTIES IA -255,202 1,395,834  










Part II
Identification of Related Tax-Exempt Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.)
(a)
Name, address, and EIN of related organization


(b)
Primary activity


 		(c)
Legal domicile (state
or foreign country)

 		(d)
Exempt Code section
(e)
Public charity status
(if section 501(c)(3))

 		(f)
Direct controlling
entity

 		(g)
Section 512(b)(13) controlled organization
Yes No












For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 50135Y
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 2
Part III
Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.)
(a)
Name, address, and EIN of
related organization



 		(b)
Primary activity




 		(c)
Legal
domicile
(state or foreign
country)


 		(d)
Direct controlling
entity



 		(e)
Predominant income(related, unrelated, excluded from tax under sections 512-514)

(f)
Share of total income




 		(g)
Share of end-of-year
assets



 		(h)
Disproprtionate allocations?




 		(i)
Code V—UBI
amount in box 20 of
Schedule K-1
(Form 1065)
 		(j)
General or
managing
partner?



 		(k)
Percentage
ownership
Yes No Yes No












Part IV
Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.)
(a)
Name, address, and EIN of related organization



 		(b)
Primary activity



 		(c)
Legal domicile
(state or
foreign
country)
 		(d)
Direct controlling
entity


 		(e)
Type of entity
(C corp, S corp,
or trust)

 		(f)
Share of total income



 		(g)
Share of
end-of-year
assets

 		(h)
Percentage
ownership












Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 3
Part V
Transactions With Related Organizations (Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35, 35A, or 36.)
Note. Complete line 1 if any entity is listed in Parts II, III or IV.
Yes
No
1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?
a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .
1a
 
 
b Gift, grant, or capital contribution to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1b
 
 
c Gift, grant, or capital contribution from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1c
 
 
d Loans or loan guarantees to or for other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1d
 
 
e Loans or loan guarantees by other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1e
 
 
f Sale of assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1f
 
 
g Purchase of assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1g
 
 
h Exchange of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1h
 
 
i Lease of facilities, equipment, or other assets to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1i
 
 
j Lease of facilities, equipment, or other assets from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .
1j
 
 
k Performance of services or membership or fundraising solicitations for other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1k
 
 
l Performance of services or membership or fundraising solicitations by other organization(s) . . . . . . . . . . . . . . . . . . . . . .
1l
 
 
m Sharing of facilities, equipment, mailing lists, or other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1m
 
 
n Sharing of paid employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1n
 
 
o Reimbursement paid to other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1o
 
 
p Reimbursement paid by other organization for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1p
 
 
q Other transfer of cash or property to other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1q
 
 
r Other transfer of cash or property from other organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1r
 
 
2
If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.
(a)
Name of other organization 		(b)
Transaction
type(a-r) 		(c)
Amount involved 		(d)
Method of determining amount involved
(1)
(2)
(3)
(4)
(5)
(6)
Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 4
Part VI
Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" on Form 990, Part IV, line 37.)
Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.
(a)
Name, address, and EIN of entity 		(b)
Primary activity 		(c)
Legal domicile
(state or foreign
country) 		(d)
Are all
partners
section
501(c)(3)
organizations? 		(e)
Share of
end-of-year
assets 		(f)
Disproprtionate allocations? 		(g)
Code V—UBI
amount in box
20 of Schedule K-1
(Form 1065) 		(h)
General or
managing
partner?
Yes No Yes No Yes No






























Schedule R (Form 990) 2010
Schedule R (Form 990) 2010
Page 5
Part VII
Supplemental Information
Complete this part to provide additional information for responses to questions on Schedule R (see instructions).
Identifier Return Reference Explanation
Additional Data


Software ID:  
Software Version: