TY 2014 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) ANDY CLARK........................................................................ NEIGHBORHOOD REPRESENTATIVE	0.50 .......................	X
(2) BRET VANDELUNE........................................................................ POLK COUNTY PUBLIC WORKS	0.50 .......................	X
(3) BRIAN BEVERLY-PAST PRESIDENT........................................................................ US BANK	1.00 .......................	X	X
(4) CADE LINDAMAN-SECRETARY........................................................................ COMMUNITY STATE BANK	1.00 .......................	X	X
(5) CHRIS JOHANSEN........................................................................ CITY OF DES MOINES	0.50 .......................	X
(6) CHRISTINE HENSLEY........................................................................ CITY OF DES MOINES	0.50 .......................	X
(7) CHRISTOPHER BATES........................................................................ PRINCIPAL BANK	0.50 .......................	X
(8) CHRISTOPHER DEAN........................................................................ BANKERS TRUST COMPANY	0.50 .......................	X
(9) CURT WAGNER........................................................................ NEIGHBORHOOD REPRESENTATIVE	0.50 .......................	X
(10) DAVE WILLIAMSON ALTERNATE........................................................................ POLK COUNTY REPRESENTATIVE	0.00 .......................	X
(11) DEB ANDERSON ALTERNATE........................................................................ POLK COUNTY BOARD OF SUPERVISORS	0.50 .......................	X
(12) FRANK OWENS........................................................................ NEIGHBORHOOD REPRESENTATIVE	0.50 .......................	X
(13) JAMEL CRAWFORD........................................................................ NEIGHBORHOOD REPRESENTATIVE	0.50 .......................	X
(14) JENNIFER COOPER........................................................................ BANKERS TRUST COMPANY	0.50 .......................	X
(15) NADINE HOGATE........................................................................ NEIGHBORHOOD REPRESENTATIVE	0.50 .......................	X
(16) ROBERT GROTE........................................................................ WELLS FARGO BANK	0.50 .......................	X
(17) STEPHANIE AVERY-PRESIDENT........................................................................ WEST BANK	1.00 .......................	X	X

(A) Name and business address	(B) Description of services	(C) Compensation
HUBBARD LAW FIRM PC 10605 JUSTIN DRIVE URBANDALE,IA50322	ATTORNEY	319,220
RM MADDEN CONTRUCTION 5909 GRAND AVENUE DES MOINES,IA50312	CONSTRUCTION	314,734
AIM CONSTRUCTION CO INC 2624 BEAVER AVENUE DES MOINES,IA50310	CONSTRUCTION	249,888
IOWA REALTY CO INC 3501 WESTOWN PARKWAY WEST DES MOINES,IA50266	HOME REALTOR	196,445
OAKWOOD HOMES LC 316 SW 5TH STREET SUITE 440 DES MOINES,IA50309	CONSTRUCTION	128,685
2 Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 of compensation from the organization 8

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 domestic organizations and domestic governments. See Part IV, line 21 ....
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....	2,061,786	2,061,786
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............
4	Benefits paid to or for members ....
5	Compensation of current officers, directors, trustees, and key employees ....	299,339	99,172	200,167
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 ....	510,326	369,497	140,829
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	18,532	9,450	9,082
9	Other employee benefits .......	57,590	45,242	12,348
10	Payroll taxes ...........	53,440	31,014	22,426
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	14,810	4,053	10,757
c	Accounting ...........	30,897		30,897
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	32,652		32,652
12	Advertising and promotion ....	33,063	28,193	4,870
13	Office expenses .......	55,039	10,453	44,586
14	Information technology ......	3,681		3,681
15	Royalties ..
16	Occupancy ...........	15,459	968	14,491
17	Travel ............	10,716	1,381	9,335
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	7,196	2,331	4,865
20	Interest ...........	139,500	139,500
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	66,030		66,030
23	Insurance ..............	57,456	35,089	22,367
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	REO	433,875	433,875
b	LOAN OPERATIONS	297,748	297,748
c	ALL OTHER EXPENSES	66,093	485	65,608
d	HOC OPERATIONS	12,250	12,250
e	All other expenses	6,662	1,732	4,930
25	Total functional expenses. Add lines 1 through 24e	4,284,140	3,584,219	699,921	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet Check if Schedule O contains a response or note to any line in this Part X ..............
	1	Cash–non-interest-bearing .............	9,064,985	1	10,428,642
2	Savings and temporary cash investments .........		2
3	Pledges and grants receivable, net ...........		3
4	Accounts receivable, net .............		4
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
			5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............	13,252,973	7	13,629,046
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	1,005,476
b	Less: accumulated depreciation .....	10b	671,154	387,764	10c	334,322
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 .....	17,888,299	13	16,970,402
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........	63,673	15	120,037
16	Total assets. Add lines 1 through 15 (must equal line 34)......	40,657,694	16	41,482,449
	17	Accounts payable and accrued expenses .........	96,958	17	117,400
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	Loans and other 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 (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	2,510,850	25	2,157,000
26	Total liabilities. Add lines 17 through 25.........	7,307,808	26	6,974,400
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	4,411,706	27	4,529,848
28	Temporarily restricted net assets ...........	27,668,180	28	28,360,701
29	Permanently restricted net assets ...........	1,270,000	29	1,617,500
	Organizations that do not follow SFAS 117 (ASC 958), check here 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 ...........	33,349,886	33	34,508,049
34	Total liabilities and net assets/fund balances ........	40,657,694	34	41,482,449

- TIN:

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.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

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.)

A church, convention of churches, or association of churches described in section 170(b)(1)(A)(i).

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E.)

A hospital or a cooperative hospital service organization described in section 170(b)(1)(A)(iii).

A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name, city, and state:

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170(b)(1)(A)(iv). (Complete Part II.)

A federal, state, or local government or governmental unit described in section 170(b)(1)(A)(v).

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

A community trust described in section 170(b)(1)(A)(vi). (Complete Part II.)

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross

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.)

An organization organized and operated exclusively to test for public safety. See section 509(a)(4).

An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g.

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations .............................

Provide the following information about the supported organization(s).

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ.

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2014

Page 2

Part II

Support Schedule for Organizations Described in Sections 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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....	1,441,204	2,565,019	3,217,035	3,261,640	3,157,171	13,642,069
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	1,441,204	2,565,019	3,217,035	3,261,640	3,157,171	13,642,069
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.						13,642,069

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
7	Amounts from line 4..	1,441,204	2,565,019	3,217,035	3,261,640	3,157,171	13,642,069
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...	34,253	40,301	84,498	70,739	115,671	345,462
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.)..
11	Total support Add lines 7 through 10.						13,987,531

Gross receipts from related activities, etc. (see instructions) ..................

10,004,335

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization, check this box and stop here........................................ right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) .........

97.530 %

Public support percentage for 2013 Schedule A, Part II, line 14 ...............

96.940 %

16a

33 1/3% support test—2014. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

10%-facts-and-circumstances test—2014. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain
in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

Private foundation. If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see
instructions ..................................................... right arrow

Schedule A (Form 990 or 990-EZ) 2014

Page 3

Part III

Support Schedule for Organizations Described in Section 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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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 VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

First five years. If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization,
check this box and stop here............................................. right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2013 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2013 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2014. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

Private foundation. If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions .... right arrow

Schedule A (Form 990 or 990-EZ) 2014

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations....

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part II of Schedule L (Form 990).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Schedule A (Form 990 or 990-EZ) 2014

Page 5

Part IV

Supporting Organizations (continued)

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2014

Page 6

Part V – Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

1. Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6
7	Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2014

Page 7

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2014 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2014	(iii) Distributable Amount for 2014
1 Distributable amount for 2014 from Section C, line 6
2 Underdistributions, if any, for years prior to 2014 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2014:
a From 2009.......X
b From 2010.......X
c From 2011.......X
d From 2012.......X
e From 2013.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2014 distributable amount
i Carryover from 2009 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2014 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2014 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2015. Add lines 3j and 4c.
8 Breakdown of line 7:
a From 2010.......X
b From 2011.......X
c From 2012.......X
d From 2013.......
e From 2014.......

Schedule A (Form 990 or 990-EZ) (2014)

Schedule A (Form 990 or 990-EZ) 2014

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule B
(Form 990, 990-EZ,
or 990-PF)

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

Attach to Form 990, 990-EZ, or 990-PF.

Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Name of the organization

NEIGHBORHOOD FINANCE CORPORATION

Employer identification number

42-1353472

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

4947(a)(1) nonexempt charitable trust not treated as a private foundation

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

4947(a)(1) nonexempt charitable trust treated as a private foundation

501(c)(3) taxable private foundation

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

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I, II, and III.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc., contributions totaling $5,000 or more during the year ......... 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 on line H of its
Form 990-EZ or on its Form 990PF, Part I, line 2, 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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 2

Name of organization NEIGHBORHOOD FINANCE CORPORATION

Part I	Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	,	$RESTRICTED	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 3

Name of organization NEIGHBORHOOD FINANCE CORPORATION

Part II	Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
(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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 4

Name of organization
NEIGHBORHOOD FINANCE CORPORATION

Employer identification number

42-1353472

Part III

Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10)
that total more than $1,000 for the year from any one contributor. 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

$
Use duplicate copies of Part III if additional space is needed.

(a) No.
from
Part I

(b) Purpose 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

(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

(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

(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) (2014)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b.
SchDMd Bullet

Attach to Form 990.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

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 value of contributions to (during year)
3	Aggregate value of grants from (during year)
4	Aggregate value at end of year ........

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? ............

Yes No

Did the organization inform all grantees, donors, and donor advisors in writing that grant funds can 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? ...................................

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.

Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e.g., recreation or education) Preservation of an historically important land area

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

Complete lines 2a through 2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax 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, and not on a historic structure listed in the National Register ....................	2d

Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the tax year SchDMd Bullet

Number of states where property subject to conservation easement is located SchDMd Bullet

Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................

Yes No

Staff and volunteer hours devoted to monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year
SchDMd Bullet

Does each conservation easement reported on line 2(d) above satisfy the requirements of section 170(h)(4)(B)(i) and section 170(h)(4)(B)(ii)? .......................................

Yes No

In Part XIII, 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.

If the organization elected, as permitted under SFAS 116 (ASC 958), 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 XIII, the text of the footnote to its financial statements that describes these items.

If the organization elected, as permitted under SFAS 116 (ASC 958), 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)

Revenue included in Form 990, Part VIII, line 1 ........................ SchDMd Bullet

(ii)

Assets included in Form 990, Part X .............................. SchDMd Bullet

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 (ASC 958) relating to these items:

Revenue included in Form 990, Part VIII, line 1 .......................... SchDMd Bullet

Assets included in Form 990, Part X ............................... SchDMd Bullet

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 52283D

Schedule D (Form 990) 2014

Page 2

Part III

Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)

Using the organization’s acquisition, accession, and other records, check any of the following that are a significant use of its collection items (check all that apply):

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIII.

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?........

Yes No

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.

Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................

Yes No

If "Yes," explain the arrangement in Part XIII and complete the following table:


c	Beginning balance .................................	1c
d	Additions during the year ..............................	1d
e	Distributions during the year .............................	1e
f	Ending balance ...................................	1f

Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?

Yes No

If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII .......

Part V

Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....	28,938,180	27,997,113	26,642,922	26,016,148	26,313,667
b	Contributions ........	2,994,500	3,100,000	3,057,806	2,383,520	1,259,327
c	Net investment earnings, gains, and losses	114,821	68,906	81,451	33,751	28,989
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........	2,069,300	2,227,839	1,785,066	1,790,497	1,585,835
f	Administrative expenses ....
g	End of year balance ......	29,978,201	28,938,180	27,997,113	26,642,922	26,016,148

Provide the estimated percentage of the current year end balance (line 1g, column (a)) held as:

Board designated or quasi-endowment SchDMd Bullet

13.000 %

Permanent endowment SchDMd Bullet

5.000 %

Temporarily restricted endowment SchDMd Bullet

82.000 %

The percentages in lines 2a, 2b, and 2c should equal 100%.

Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes

(i) unrelated organizations ........................

3a(i)

(ii) related organizations ........................

3a(ii)

If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........

Describe in Part XIII the intended uses of the organization's endowment funds.

Part VI

Land, Buildings, and Equipment. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(a) Cost or other basis (investment)	(c) Accumulated depreciation	(d) Book value
1a	Land .................
b	Buildings ................	805,300	498,338	306,962
c	Leasehold improvements ............
d	Equipment ................	200,176	172,816	27,360
e	Other .................
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				334,322

Schedule D (Form 990) 2014

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. 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) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

(a) Description of investment	(b) Book value	(c) Method of valuation: Cost or end-of-year market value
(1) OTHER REAL ESTATE OWNED	622,246	F
(2) REAL ESTATE DEVELOPMENT PROPERTIES	267,003	F
(3) FORGIVABLE LOANS	6,841,699	C
(4) INVESTOR GUARANTEED CUSTODIAL DEPOSITS	7,380,654	F
(5) FANNIE MAE CUSTODIAL DEPOSITS	1,810,000	C
(6) FHLB DES MOINES	48,800	C



Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)	16,970,402

Part IX

Other Assets. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value









Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

Other Liabilities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability		(b) Book value
Federal income taxes
LOANS AND GRANTS IN PROCESS		1,956,336
INTEREST PAYABLE		50,664
EQUITY EQUIVALENT INVESTMENT		150,000






Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		2,157,000
2. Liability for uncertain tax positions. In Part XIII, 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 (ASC 740). Check here if the text of the footnote has been provided in Part XIII

Schedule D (Form 990) 2014

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......		1	5,442,303
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) on investments ....	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d .....................		2e	0
3	Subtract line 2e from line 1.....................		3	5,442,303
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 XIII.) ...........	4b
c	Add lines 4a and 4b.......................		4c	0
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......		5	5,442,303

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........		1	4,284,140
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 XIII.) ............	2d
e	Add lines 2a through 2d......................		2e	0
3	Subtract line 2e from line 1.....................		3	4,284,140
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 XIII.) ............	4b
c	Add lines 4a and 4b.......................		4c	0
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......		5	4,284,140

Part XIII

Supplemental Information

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, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

Return Reference	Explanation
PART X, LINE 2:	EXPLANATION: MANAGEMENT ASSESSES NFC'S INCOME TAX POSITIONS BASED UPON AN EVALUATION OF THE FACTS, CIRCUMSTANCES AND INFORMATION AVAILABLE AT THE REPORTING DATES. AFTER MARCH 15, 2015, NFC'S 2014, 2013 AND 2012 INCOME TAX RETURNS REMAIN OPEN FOR POSSIBLE EXAMINATION.
PART V, LINE 4:	EXPLANATION: 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 USE, UPON THE SALE OF THOSE PROPERTIES.

Return Reference

Explanation

PART X, LINE 2:

EXPLANATION: MANAGEMENT ASSESSES NFC'S INCOME TAX POSITIONS BASED UPON AN EVALUATION OF THE FACTS, CIRCUMSTANCES AND INFORMATION AVAILABLE AT THE REPORTING DATES. AFTER MARCH 15, 2015, NFC'S 2014, 2013 AND 2012 INCOME TAX RETURNS REMAIN OPEN FOR POSSIBLE EXAMINATION.

PART V, LINE 4:

EXPLANATION: 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 USE, UPON THE SALE OF THOSE PROPERTIES.

Schedule D (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

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.
lBullet

Information about Schedule I (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
NEIGHBORHOOD FINANCE CORPORATION

Employer identification number
42-1353472

Part I

General Information on Grants and Assistance

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? ....................................

Yes No

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 Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed.

(a) Name and address of organization or government	(b) EIN	(c) IRC 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

Enter total number of section 501(c)(3) and government organizations listed in the line 1 table ................ Bullet Image

Enter total number of other organizations listed in the line 1 table ........................ . Bullet Image

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50055P

Schedule I (Form 990) 2014

Page 2

Part III

Grants and Other Assistance to Domestic Individuals. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Part III can be duplicated 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)
(1) FORGIVENESS OF DEBT	1743	2,061,786	0	BOOK

Part IV

Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.

Return Reference	Explanation
PART I, LINE 2:	EXPLANATION: 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) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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, line 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ.
MediumBullet

Information about Schedule L (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

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), section 501(c)(4), and 501(c)(29) 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	(c) Description of transaction	(d) Corrected?
1(a) Name of disqualified person	(c) Description of transaction	Yes	No

Enter the amount of tax incurred by organization managers or disqualified persons during the year under section 4958. ........................... Bullet Image

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-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22

(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	(d) Loan to or from the organization?		(e)Original principal amount	(f)Balance due	(g) In default?		(h) Approved by board or committee?		(i)Written agreement?
(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	To	From	(e)Original principal amount	(f)Balance due	Yes	No	Yes	No	Yes	No
(1) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)		SEE SCHEDULE L PART V EXPLANATION	X		1,000,000	1,000,000		No	Yes		Yes
(2) BANK OF THE WEST (CHRISTINE HENSLEY NFC BOARD MEMBER)		SEE SCHEDULE L PART V EXPLANATION	X		1,500,000	1,500,000		No	Yes		Yes
(3) PRINCIPAL BANK (CHRIS BATES NFC BODJANICE CONEY FMR NFC BOD)		SEE SCHEDULE L PART V EXPLANATION	X		300,000	300,000		No	Yes		Yes
(4) WEST BANK (STEPHANIE AVERY NFC BOARD MEMBER)		SEE SCHEDULE L PART V EXPLANATION	X		300,000	300,000		No	Yes		Yes
(5) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)		SEE SCHEDULE L PART V EXPLANATION	X		350,000	350,000		No	Yes		Yes
(6) US BANK (BRIAN BEVERLY NFC BOARD MEMBERJEANNE MILLER FMF NFC BOD)		SEE SCHEDULE L PART V EXPLANATION	X		250,000	250,000		No	Yes		Yes
Total ...... $						3,700,000

Part III

Grants or Assistance Benefiting 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 assistance	(d) Type of assistance	(e) Purpose of assistance

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2014

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?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) CITY OF DES MOINES (KATHY KAHOUN CHRISTINE HENSLEY & CHRIS JOHANSEN)	FMR NFC BOD KAHOUN, HENSLEY & JOHANSEN NFC BOARD MEMBERS	1,000,000	28E AGREEMENT CONTRIBUTION		No
(2) POLK COUNTY (VAN OORT & VANDELUNE NFC BODROWEN & BROWNELL FMR BOD)	BROWNELL & VAN OORT ARE CNTY SUPERVISORS, ROWEN & VANDELUNE ARE PUBLIC WORK	800,000	28E AGREEMENT CONTRIBUTION		No
(3) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)	GROTE & BENISHEK ARE SR CR OFFICERS AT WELLS FARGO & NFC BD MBR/FMR BD MBR	29,918	INTEREST PAYMENT		No
(4) BANK OF THE WEST (CHRISTINE HENSLEY NFC BOARD MEMBER)	CHRISTINE HENSELY WAS A V.P. AT BANK OF THE WEST AND IS AN NFC BOARD MEMBER	45,000	INTEREST PAYMENT		No
(5) PRINCIPAL BANK (CHRIS BATES NFC BODJANICE CONEY FMR NFC BOD)	BATES V.P. PRINCIPAL BANK & NFC BOD, CONEY MANAGER AT PRINCIPAL & FMR BOD	9,000	INTEREST PAYMENT		No
(6) WEST BANK (STEPHANIE AVERY NFC BOARD MEMBER)	STEPHANIE AVERY IS A VICE PRESIDENT AT WEST BANK & A BOARD MEMBER OF NFC	9,000	INTEREST PAYMENT		No
(7) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)	GROTE & BENISHEK ARE SR CR OFFICERS AT WELLS FARGO & NFC BD MBR/FMR BD MBR	5,250	INTEREST PAYMENT		No
(8) US BANK (BRIAN BEVERLY NFC BOARD MEMBERJEANNE MILLER FMR NFC BOD)	BEVERLY & MILLER ARE VICE PRES AT US BANK AND NFC BOARD MEMBER/FMR BD MBR	5,000	INTEREST PAYMENT		No
(9) BANKERS TRUST (CHRISTOPHER DEAN NFC BOARD MBRJENNIFER COOPER NFC FMR BOD)	DEAN & COOPER ARE VICE PRES AT BANKERS TRUST AND A BOARD MEMBER & FMR BOD	1,299,074	NFC LOAN POOL PARTICIPATION		No
(10) PRINCIPAL BANK (CHRIS BATES NFC BODJANICE CONEY FMR NFC BOD)	BATES V.P. PRINCIPAL BANK & NFC BOD, CONEY MANAGER AT PRINCIPAL & FMR BOD	1,815,924	NFC LOAN POOL PARTICIPATION		No
(11) US BANK (BRIAN BEVERLY NFC BOARD MEMBERJEANNE MILLER FMR NFC BOD)	BEVERLY & MILLER ARE VICE PRES AT US BANK AND NFC BOARD MEMBER/FMR BD MBR	908,045	NFC LOAN POOL PARTICIPATION		No
(12) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)	GROTE & BENISHEK ARE SR CR OFFICERS AT WELLS FARGO & NFC BD MBR/FMR BD MBR	1,786,352	NFC LOAN POOL PARTICIPATION		No
(13) BANK OF THE WEST (CHRISTINE HENSLEY NFC BOARD MEMBER)	CHRISTINE HENSELY WAS A V.P. AT BANK OF THE WEST AND IS AN NFC BOARD MEMBER	415,758	NFC LOAN POOL PARTICIPATION		No
(14) WEST BANK (STEPHANIE AVERY NFC BOARD MEMBER)	STEPHANIE AVERY IS A VICE PRESIDENT AT WEST BANK & A BOARD MEMBER OF NFC	317,560	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	549,473	NFC LOAN POOL PARTICIPATION		No
(16) BANK OF AMERICA (KEVIN KOPASKA FORMER NFC BOARD MEMBER)	KOPASKA WAS A VICE PRES. AT BANK OF AMERICA & A FORMER BOARD MEMBER OF NFC	524,568	NFC LOAN POOL PARTICIPATION		No
(17) BANK OF THE WEST (CHRISTINE HENSLEY NFC BOARD MEMBER)	CHRISTINE HENSELY WAS A V.P. AT BANK OF THE WEST AND IS AN NFC BOARD MEMBER	810	ACCOUNT INTEREST		No
(18) BANK OF THE WEST (CHRISTINE HENSLEY NFC BOARD MEMBER)	CHRISTINE HENSELY WAS A V.P. AT BANK OF THE WEST AND IS AN NFC BOARD MEMBER	1,633	SERVICE FEES PAID		No
(19) BANKERS TRUST (CHRISTOPHER DEAN NFC BOARD MBRJENNIFER COOPER NFC FMR BOD)	DEAN & COOPER ARE VICE PRES AT BANKERS TRUST AND A BOARD MEMBER & FMR BOD	2,287	ACCOUNT INTEREST		No
(20) BANKERS TRUST (CHRISTOPHER DEAN NFC BOARD MBRJENNIFER COOPER NFC FMR BOD)	DEAN & COOPER ARE VICE PRES AT BANKERS TRUST AND A BOARD MEMBER & FMR BOD	19,756	SERVICE FEES PAID		No
(21) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)	GROTE & BENISHEK ARE SR CR OFFICERS AT WELLS FARGO & NFC BD MBR/FMR BD MBR	11	ACCOUNT INTEREST		No
(22) WELLS FARGO BANK (ROBERT GROTE NFC BOARD MEMBERLANNY BENISHEK FMR NFC BOD)	GROTE & BENISHEK ARE SR CR OFFICERS AT WELLS FARGO & NFC BD MBR/FMR BD MBR	42	SERVICE FEES PAID		No
(23) BANKERS TRUST (CHRISTOPHER DEAN NFC BOARD MBRJENNIFER COOPER NFC FMR BOD)	DEAN & COOPER ARE VICE PRES AT BANKERS TRUST AND A BOARD MEMBER & FMR BOD	13,783	TRUST ACCOUNT INTEREST		No

Part V

Supplemental Information
Provide additional information for responses to questions on Schedule L (see instructions).

Return Reference	Explanation
SCHEDULE L, PART II, 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.
SCHEDULE L, PART II, COLUMN C	LOANS FROM WELLS FARGO BANK, BANK OF THE WEST, PRICIPAL 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 PROPERTIES AND THE REDEVELOPMENT OF BLIGHTED COMMERCIAL PROPERTIES.
SCH 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 IN 2000.

Schedule L (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

- TIN:

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 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

NEIGHBORHOOD FINANCE CORPORATION

Employer identification number

42-1353472

Return Reference	Explanation
FORM 990, PART VI, SECTION B, LINE 11	NEIGHBORHOOD FINANCE CORPORATIONS'S OFFICERS, DIRECTORS AND FINANCE/AUDIT COMMITTEE RECEIVE THE FORM 990 BEFORE THE FINAL VERSION IS SUBMITTED TO THE IRS. NEIGHBORHOOD FINANCE CORPORATION'S MANAGEMENT KEPT THE OFFICERS, DIRECTORS AND FINANCE/AUDIT COMMITTEE INFORMED THROUGH OUT THE PROCESS BY HAVING OUR INDEPENDENT THIRD PARTY TAX ADVISORY FIRM UPDATE THE OFFICERS, DIRECTORS, FINANCE/AUDIT COMMITTEE, 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, OFFICER AND FINANCE/AUDIT COMMITTEE PRIOR TO THE JULY 23, 2015 BOARD OF DIRECTORS MEETING. THIS ALLOWED THE OFFICERS, DIRECTORS AND FINANCE/AUDIT COMMITTEE 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 FINANCE/AUDIT COMMITTEE MEET TO DISCUSS THE FORM 990. THE MINUTES TO THIS MEETING ARE INCLUDED IN THE JULY 23, 2015, BOARD OF DIRECTORS MEETING. THE RESULT OF THIS DISCUSSION WAS APPROVAL TO SUBMIT THE FORM 990 TO IRS. THIS DISCUSSION WAS DOCUMENTED IN THE MINUTES OF THE JULY 23, 2015, 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. ALL OF THESE STATEMENTS ARE RECEIVED BY AND MAINTAINED BY THE NEIGHBORHOOD FINANCE CORPORATION'S VICE PRESIDENT FINANCE AND ADMINISTRATION. 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 VERISIGHT, INC, AN INDEPENDENT THIRD PARTY FIRM, TO COMPLETE A KEY EXECUTIVE AND ALL NON-KEY EXECUTIVE COMPENSATION MARKET ANALYSIS IN JULY 2014. 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 THIS ANALYSIS WHILE THE EXECUTIVE COMMITTEE OF THE NEIGHBORHOOD FINANCE CORPORATION BOARD OF DIRECTORS WERE THE OVERSEERS OF THE PROCESS. VERISIGHT'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 2014 AUGUST EXECUTIVE COMMITTEE MEETING AND THE AUGUST BOARD OF DIRECTORS MEETING WITHOUT THE KEY EXECUTIVES PRESENT AT EITHER SESSION. THE REPORT WAS FINALIZED IN THE SEPTEMBER 2014 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. THE REASONABLENESS OF THE RATE INCREASES IS OBTAINED AFTER AN INFORMAL DISCUSSION WITH VERISIGHT, INC. 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. THE NEXT FORMAL STUDY IS SCHEDULED FOR 2017.
FORM 990, PART VI, SECTION C, LINE 19	NEIGHBORHOOD FINANCE CORPORATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS (AUDITED OR UNAUDITED) AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST AND AT THE DISCRETION OF NEIGHBORHOOD FINANCE CORPORATION.
FORM 990, PART I, LINE 6	DETERMINATION OF VOLUNTEER ESTIMATE: BOARD OF DIRECTORS=15; RESIDENTIAL LOAN COMMITTEE MEMBERS=5; COMMERCIAL LOAN COMMITTEE MEMBERS=2; REAL ESTATE DEVELOPMENT COMMITTEE MEMBERS=3. NOTE THAT CERTAIN VOLUNTEERS ARE ON MORE THAN ONE COMMITTEE. THESE VOLUNTEERS ARE ONLY COUNTED ONCE.
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 FORM 990.
FORM 990, PART X, LINE 2	SAVINGS AND TEMPORARY CASH INVESTMENTS: AS OF DECEMBER 31, 2014, APPROXIMATELY $1.5 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) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
MediumBullet

Attach to Form 990.
MediumBullet

Information about Schedule R (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

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 (if applicable) of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets
(1) NFC PROPERTIES LLC 1912 SIXTH AVE DES MOINES,IA50314 36-4626868	REHAB DISTRESSED PROPERTIES	IA	-358,317	1,164,983

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 entity?
(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	Yes	No

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2014

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	(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?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	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	(i) Section 512(b)(13) controlled entity?
(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	Yes	No

Schedule R (Form 990) 2014

Page 3

Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.

Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.

Yes

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, or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

b Gift, grant, or capital contribution to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

c Gift, grant, or capital contribution from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

d Loans or loan guarantees to or for related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

e Loans or loan guarantees by related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

g Sale of assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

h Purchase of assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

i Exchange of assets with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

j Lease of facilities, equipment, or other assets to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

k Lease of facilities, equipment, or other assets from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . .

l Performance of services or membership or fundraising solicitations for related organization(s) . . . . . . . . . . . . . . . . . . . .

m Performance of services or membership or fundraising solicitations by related organization(s) . . . . . . . . . . . . . . . . . . . .

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) . . . . . . . . . . . . . . . . . . . . .

o Sharing of paid employees with related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

p Reimbursement paid to related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

q Reimbursement paid by related organization(s) for expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

r Other transfer of cash or property to related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

s Other transfer of cash or property from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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 related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved

Schedule R (Form 990) 2014

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)	(e) Are all partners section 501(c)(3) organizations?		(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?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2014

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation

Schedule R (Form 990) 2014

Additional Data

Software ID:
Software Version:

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	3,261,640	3,157,171
9	Program service revenue (Part VIII, line 2g) .........	1,905,731	2,227,002
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	28,566	58,130
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)...................	5,195,937	5,442,303
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	1,878,210	2,061,786
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)	1,066,921	939,227
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	1,179,109	1,283,127
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	4,124,240	4,284,140
19	Revenue less expenses. Subtract line 18 from line 12.......	1,071,697	1,158,163
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	40,657,694	41,482,449
21	Total liabilities (Part X, line 26).............	7,307,808	6,974,400
22	Net assets or fund balances. Subtract line 21 from line 20.....	33,349,886	34,508,049

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 768,638 including grants of $ ) (Revenue $ 2,152,050 )
	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 LOANS ARE QUALIFIED MORTGAGES UNDERWRITTEN TO SECONDARY MARKET GUIDELINES.IN 2014, NFC CLOSED 364 LOANS. THIS IS THE NUMBER OF CLIENTS SERVED THROUGH OUR PURCHASE LOAN, SECOND MORTGAGE, 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 2014 WAS $16,361,652. PURCHASE LOAN, SECOND MORTGAGE, 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 AND WINDSOR HEIGHT NEIGHBORHOODS.THE NEIGHBORHOODS ARE TYPICALLY LOW INCOME CENSUS TRACTS. IN 2014, 216 LOANS CLOSED WERE MADE TO BORROWERS THAT WERE IN LOW TO MODERATE INCOME CENSUS TRACTS AND/OR LOW TO MODERATE INCOME FOR POLK COUNTY, IOWA. OF THESE 216 LOANS, 69 LOANS WERE MADE TO BORROWERS THAT HAVE LOW INCOME IN LOW INCOME CENSUS TRACTS; 37 WERE MADE TO BORROWERS WITH LOW INCOME, BUT NOT IN A LOW INCOME CENSUS TRACT. THE OTHER 110 LOANS CLOSED IN 2014 WERE MADE TO NON-CRA ELIGIBLE BORROWERS IN NON-LOW INCOME CENSUS TRACTS. IN 2014, 49.07% OF LOANS CLOSED WERE COMMUNITY REINVESTMENT ACT (CRA) ELIGIBLE. IN 2014, 7.87% 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 2014 WAS 92. NFC CLOSED 95 SECOND MORTGAGES, 129 HOME IMPROVEMENT LOANS AND 49 REFINANCE LOANS. ADDITIONALLY, IN 2014, 61% OF THE HOME PURCHASE LOANS CLOSED WERE TO FIRST TIME HOME BUYERS.NFC IS PROUD TO PARTNER WITH POLK COUNTY, IOWA AND THE WINDSOR HEIGHTS-URBANDALE SANITARY SEWER DISTRICT TO PROVIDE A FINANCING OPTION FOR WINDSOR HEIGHTS, IOWA RESIDENTS WHO NEED TO REPLACE OR REPAIR THEIR SEWER LINE AS PART OF THE SAVE OUR SEWER (S.O.S.) PROGRAM. WINDSOR HEIGHTS HAS AN AGING SANITARY SEWER INFRASTRUCTURE SINCE THE SEWER LINES ARE OLD, THESE SEWER LINES CAN CRACK AND ALLOW GROUNDWATER TO INFILTRATE THEM. IN ADDITION, THERE ARE RESIDENTIAL PROPERTIES THAT HAVE FOUNDATION DRAINS OR SUMP PUMPS DIRECTLY TIED INTO THE SANITARY SEWER SYSTEM. THIS RESULTS IN STORM WATER AND GROUNDWATER BEING DIRECTLY INTRODUCED INTO THE SEWER SYSTEM. THESE ARE REFERRED TO AS INFLOW AND INFILTRATION ISSUES THAT WILL BE ADDRESSED THROUGH THE S.O.S. PROGRAM.

4b	(Code: ) (Expenses $ 2,256,378 including grants of $ 2,061,786 ) (Revenue $ )
	FORGIVABLE LOAN: AS STATED IN LOAN ORIGINATION DESCRIPTION, EACH TRANSACTION THAT NFC PROVIDES TO OUR BORROWERS INCLUDES A FORGIVABLE LOAN FOR PROPERTY REHABILATATION. 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 LAON 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 THE BORROWER ON FORM 1099C EACH YEAR UNTIL THE ENTIRE AMOUNT IS FORGIVEN. SINCE INCEPTION, NFC HAS AWARDED FORGIVEABLE LOANS TOTALING $34,447,500 THROUGH DECEMBER 31, 2014.IN 2014, NFC CLOSED $2,271,856 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 AND MEETS THE BORROWER'S SATISFACTION. 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 $ 537,223 including grants of $ ) (Revenue $ 74,952 )
	AT NFC PROPERTIES LLC, OUR GOAL IS TO PROVIDE SAFE, AFFORDABLE, QUALITY HOUSING TO OWNER OCCUPANTS. IN 2014 NFC PROPERTIES LLC ACQUIRED 10 PROPERTIES. OF THOSE 10 PROPERTIES, 9 WERE FROM NFC'S REAL ESTATE OWNED (REO) INTAKE THROUGH BORROWER DEFAULT, AND 1 WAS PURCHASED AS REO'S FROM OTHER LENDERS. DURING 2014, 14 UNITS IN NFC PROPERTIES LLC HOUSING INVENTORY COMPLETED REHABILITATION, AND 16 OF THE UNITS WERE SOLD. NFC PROPERTIES LLC FOCUSES ON ENERGY EFFICIENCY BY ADDING HIGH EFFICIENCY FURNACE AND A/C, VINYL LOW-E WINDOWS, AND BLOWN CELLULOSE INSULATION. THIS HELPS ENSURE THAT THE HOME STAYS AFFORDABLE FOR THE FUTURE HOMEBUYER.

	(Code: ) (Expenses $ 21,980 including grants of $ ) (Revenue $ )
	NFC'S HOME BUYER EDUCATION DEPARTMENT WAS DISCONTINUED DURING 2012. THE SERVICES ARE STILL BEING OFFERED IN THE CITY OF DES MOINES SINCE NFC HAS ENTERED INTO A SERVICE AGREEMENT WITH TWO OTHER LOCAL NON PROFIT ORGANIZATIONS TO OFFER THE PROGRAMS PREVIOUSLY OFFERED BY NFC. THESE PROGRAMS ARE OFFERED IN AN INDIVIDUAL AND CLASSROOM SETTING. EDCUATION PROGRAMS INCLUDE INTRODUCTION TO HOME OWNERSHIP, FINANCIAL/DEBT MANAGEMENT, FORECLOSURE PREVENTION AND ANTI-PREDATORY LENDING ISSUES.DURING 2014, NFC PROVIDED EDUCATIONAL SERVICES TO 114 HOUSEHOLDS IN DES MOINES, IOWA THROUGH AN AGREEMENT WITH ANOTHER NON-PROFIT IN DES MOINES, THAT FOCUSES ON CREATING OPPORTUNITIES FOR LOW AND MODERATE INCOME IOWANS TO BUILD THEIR ASSETS AND ACHIEVE FINANCIAL STABILITY.NFC HAS AGREEMENTS WITH THE CITY OF DES MOINES (THE CITY) AND POLK COUNTY (THE COUNTY), WHEREIN THE CITY AND THE COUNTY AGREED TO CONTRIBUTE MONEY FOR THE EXPRESS PURPOSE OF FUNDING NEIGHBORHOOD HOUSING REVITALIZATION PROGRAMS. UNDER THE AGREEMENTS, CUMULATIVE CONTRIBUTIONS BY THE CITY AND COUNTY HAVE TOTALED $23,537,687 AND $23,575,000 RESPECTIVELY, THROUGH DECEMBER 31, 2014. IN MARCH 2012, THE CITY EXTENDED ITS AGREEMENT UNTIL JUNE 2017. THE CITY WILL CONTRIBUTE AT LEAST $1,000,000 ANNUALLY THROUGH THE YEAR 2017. IN SEPTEMBER 2013, THE COUNTY RENEWED ITS AGREEMENT UNTIL JUNE 2017. THE COUNTY WILL CONTRIBUTE AT LEAST $800,000 ANNUALLY THROUGH THE YEAR 2017.NFC ALSO HAS AGREEMENTS WITH THE CITY OF WEST DES MOINES AND CITY OF WINDSOR HEIGHTS, WHEREIN THEY EACH AGREED TO CONTRIBUTE MONEY FOR THE EXPRESS PURPOSE OF FUNDING NEIGHBORHOOD HOUSING REVITALIZATION PROGRAMS. UNDER THE AGREEMENTS, CUMULATIVE CONTRIBUTIONS BY THE CITY OF WEST DES MOINES HAVE TOTALED $200,000, AND CUMULATIVE CONTRIBUTIONS FROM THE CITY OF WINDSOR HEIGHTS HAVE TOTALED $75,000.DURING 2014, NFC RECEIVED A $847,000 FINANCIAL ASSISTANCE AWARD FROM THE CDFI FUND. THE PURPOSE OF THIS FINANCIAL ASSISTANCE AWARD IS TO ASSIST NFC IN FUNDING SECOND MORTGAGE LOANS THAT WILL BE HELD FOR INVESTMENT. IN 2014, NFC USED ALL THESE FUNDS IN ORIGINATING SECOND MORTGAGE LOANS.

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 21,980 including grants of $ ) (Revenue $ )
4e	Total program service expenses3,584,219

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)		(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
(A) Name and Title
(18) STEVE VAN OORT - VICE PRESIDENT........................................................................ POLK COUNTY BOARD OF SUPERVISORS	1.00 .......................	X	X	0	0	0
(19) STEPHANIE PREUSCH........................................................................ EXECUTIVE DIRECTOR	40.00 .......................		X	66,946	0	12,125
(20) PATTY GRESSMEN........................................................................ VP LOANS & ASST SECR	40.00 .......................		X	83,972	0	15,200
(21) MARK ALBERICO........................................................................ VP FINANCE & ADMIN/TREAS	40.00 .......................		X	96,185	0	24,911

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	247,103	0	52,236

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
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	5
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	11
6	Total number of volunteers (estimate if necessary) .............	6	30
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

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512-514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e		2,647,000

f	All other contributions, gifts, grants, and similar amounts not included above1f		510,171

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			3,157,171
			Business Code
2a	LOAN FEES/SVC CHGS		531390	1,535,831	1,535,831
b	PROG SVC INTEREST		531390	616,219	616,219
c	REAL ESTATE DEVELOPMEN		531390	74,952	74,952
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			2,227,002
3	Investment income (including dividends, interest, and other similar amounts).......			58,130			58,130
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(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)..........
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..
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...
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..
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......
12	Total revenue. See Instructions......			5,442,303	2,227,002	0	58,130


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			9,064,985	1	10,428,642
2	Savings and temporary cash investments .........				2
3	Pledges and grants receivable, net ...........				3
4	Accounts receivable, net .............				4
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
					5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............			13,252,973	7	13,629,046
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	1,005,476
b	Less: accumulated depreciation .....	10b	671,154	387,764	10c	334,322
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 .....			17,888,299	13	16,970,402
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			63,673	15	120,037
16	Total assets. Add lines 1 through 15 (must equal line 34)......			40,657,694	16	41,482,449
17	Accounts payable and accrued expenses .........			96,958	17	117,400
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	Loans and other 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 (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			2,510,850	25	2,157,000
26	Total liabilities. Add lines 17 through 25.........			7,307,808	26	6,974,400
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			4,411,706	27	4,529,848
28	Temporarily restricted net assets ...........			27,668,180	28	28,360,701
29	Permanently restricted net assets ...........			1,270,000	29	1,617,500
	Organizations that do not follow SFAS 117 (ASC 958), check here 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 ...........			33,349,886	33	34,508,049
34	Total liabilities and net assets/fund balances ........			40,657,694	34	41,482,449