2014-10-21T16:16:41-05:00 2013-12-31 362938874 OSTROW REISIN BERK & ABRAMS LTD 455 N CITYFRONT PLAZA DRIVE SUITE 1500 CHICAGO IL 606115313 990 2013-01-01 367120987 NATIONAL COMMUNITY INVESTMENT FUND NATI 3128815826 135 S LASALLE STREET NO 2040 CHICAGO IL 60603 SAURABH NARAIN CHIEF EXECUTIVE 3128815826 2014-10-20 1 BRANDON W VAHL P01699001 3126707444 2013 2015-11-30 17:44:51Z SAURABH NARAIN 135 S LASALLE STREET NO 2040 CHICAGO IL 60603 4089551 0 X WWW.NCIF.ORG X 1995 IL THE NATIONAL COMMUNITY INVESTMENT FUND INVESTS CAPITAL IN INSTITUTIONS, PRIMARILY BANKS, THAT INCREASE ACCESS TO RESPONSIBLE FINANCIAL PRODUCTS AND SERVICES IN UNDERSERVED COMMUNITIES. NCIF CONTRIBUTES TO THEIR SUCCESS BY AGGREGATING CAPITAL AND KNOWLEDGE AND LEVERAGING OPPORTUNITIES. NCIF GENERATES REASONABLE FINANCIAL, SOCIAL AND ENVIRONMENTAL RETURNS FOR ITS INVESTORS AND FUNDERS. 7 4 0 0 0 0 1006814 546992 3138334 1793086 -17641 110920 2522560 63228 6650067 2514226 0 0 0 0 65000 98750 0 0 4174 1195279 1367640 1260279 1466390 5389788 1047836 21558851 22151313 11514765 11555130 10044086 10596183 X SEE SCHEDULE 0 0 994369 327790 SEE SCHEDULE O 88437 1360185 SEE SCHEDULE O 25010 105111 SEE SCHEDULE O 1107816 0 1 0 0 0 0 0 0 0 1 0 1 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 13 0 0 0 0 0 0 0 0 X 7 4 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X SAURABH NARAIN 3128815826 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 DAVID MCGRADY CHAIRMAN 1.50 X 25000 0 0 CARLTON JENKINS TRUSTEE 1.20 X 18750 0 0 MARY TINGERTHAL TRUSTEE 1.20 X 18750 0 0 CHARLES VAN LOAN TRUSTEE 1.20 X 18750 0 0 MARK WILLIS TRUSTEE 0.60 X 8750 0 0 ALFONSO LAU TRUSTEE 0.60 X 8750 0 0 SAURABH NARAIN TRUSTEE/CHIEF EXECUTIVE 40.00 X X 0 0 0 JOSEPH MROCZEK MANAGER OPERATIONS 40.00 X 0 0 0 98750 0 0 0 0 0 0 0 546992 546992 NMTC FEE INCOME 525990 1360185 1360185 INCOME FROM INVESTMENT 900099 277793 277793 CONFERENCE SPONSORSHIP 900099 105111 105111 INTEREST ON CDS 900099 42797 42797 INTEREST ON LOANS 522291 7200 7200 1793086 36070 36070 6000 0 6000 6000 6000 1650175 1575325 74850 74850 74850 OTHER INCOME 900099 57228 57228 57228 2514226 1793086 0 174148 X 98750 98750 27619 27619 28000 28000 190755 134755 56000 55891 41918 13973 71960 48538 23422 41260 41260 128180 128180 11100 11100 44226 8845 35381 PERSONNEL - PEO 688757 624428 60155 4174 MEMBERSHIP DUES AND FEE 40549 40549 39343 39343 1466390 1107816 354400 4174 3976603 2376413 555844 157388 45397 40805 178200 59400 47199 43510 83472 13991 16063 69481 1192251 1155485 15501323 18201431 45971 47400 21558851 22151313 304543 356742 11210222 11198388 11514765 11555130 X 8194793 9293697 1849293 1302486 10044086 10596183 21558851 22151313 X 1047836 132427 -628166 X 0 1 X 1 1 1 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 22789 5838 16951 60683 8153 52530 69481 EQUITY INVESTMENTS IN CDFIS 11234658 C INVESTMENT IN NCIF CAPITAL, LLC 16479 C CERTIFICATES OF DEPOSIT 6950294 C 18201431 X 2646653 132427 132427 2514226 0 2514226 2094556 628166 628166 1466390 0 1466390 PART X, LINE 2: NCIF IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE AND APPLICABLE STATE LAW. THE ACCOUNTING STANDARDS ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ADDRESS THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNDER THAT GUIDANCE, NCIF MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES BASED ON THE TECHNICAL MERITS OF THE POSITION. EXAMPLES OF TAX POSITIONS INCLUDE THE TAX-EXEMPT STATUS OF NCIF AND VARIOUS POSITIONS RELATED TO POTENTIAL SOURCES OF UNRELATED BUSINESS TAXABLE INCOME. THE TAX BENEFITS RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM A TAX POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THERE WERE NO UNRECOGNIZED TAX BENEFITS IDENTIFIED OR RECORDED AS LIABILITIES AS OF DECMBER 31, 2013 AND 2012. NCIF FILES ITS FORM 990 WITH THE INTERNAL REVENUE SERVICE (IRS). NCIF IS GENERALLY NO LONGER SUBJECT TO EXAMINATION BY THE IRS FOR YEARS ENDED PRIOR TO DECEMBER 31, 2010. PART XII, LINE 2D - OTHER ADJUSTMENTS: INTEREST - AMORTIZATION OF DISCOUNT 628,166. DAVID MCGRADY BOARD CHAIRMAN NCIF INVESTMENT - NCIF MADE AN EQUITY INVESTMENT IN CFBANC CORPORATION DURING 1998. THE CHAIRMAN OF THE BOARD, DAVID MCGRADY, IS ALSO THE VICE CHAIRMAN AT CFBANC CORPORATION.DAVID RAISES CAPITAL AND OPERATING SUPPORT FORM FOUNDATIONS, BANKS AND OTHER INVESTORS FOR CDFIS AND NONPROFIT ORGANIZATIONS. THE CAPITAL AND OPERATING SUPPORT MAY BE RAISED FROM EXISTING OR POTENTIAL INVESTORS IN OR SUPPORTERS OF NCIF.DAVID MAY FROM TIME TO TIME PROVIDE CONSULTING SERVICES TO PARTIES WITH WHOM NCIF MAY HAVE A BUSINESS RELATIONSHIP; AND AN ACTIVE ADVISOR TO A NUMBER OF NEW MARKET TAX CREDIT INVESTORS, ALLOCATEES AND QALICBS. 0 ALFONSO LAU BOARD TRUSTEE NCIF INVESTMENT - NCIF HAS AN EQUITY INVESTMENT IN FAIB. ALFONSO LAU IS A DIRECTOR OF FAIB. THE EQUITY INVESTMENT WAS MADE PRIOR TO HIM JOINING THE BOARD. 0 CARLTON JENKINS BOARD TRUSTEE NCIF INVESTMENT - NCIF PURCHASED PREFERRED EQUITY IN ONEUNITED BANK DURING 2011. CARLTON JENKINS OWNS COMMON STOCK IN ONEUNITED BANK. 0 FORM 990, PART III, LINE 1, MISSION STATEMENT: NATIONAL COMMUNITY INVESTMENT FUND (NCIF) IS AN INDEPENDENT NON-PROFIT TRUST FUND WITH $22.5 MILLION IN TOTAL ASSETS AND $173 MILLION IN ALLOCATION OF NEW MARKETS TAX CREDITS FROM THE CDFI FUND. NCIF INVESTS THIS PRIVATE CAPITAL IN AND ENABLES KNOWLEDGE TRANSFER TO DOMESTIC DEPOSITORY INSTITUTIONS THAT INCREASE ACCESS TO FINANCIAL SERVICES IN UNDERSERVED COMMUNITIES. OVER THE PAST SEVERAL YEARS, NCIF HAS BECOME THE LARGEST PRIVATE EQUITY INVESTOR BY NUMBERS IN MISSION-ORIENTED BANKS AROUND THE COUNTRY. THESE INCLUDE CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS (CDFIS) AND MINORITY DEPOSITORY INSTITUTIONS (MDIS). NCIF PURSUES ITS MISSION WITH A COMPREHENSIVE THREE-PART BUSINESS STRATEGY TO SUPPORT THE MISSION-ORIENTED FINANCIAL INSTITUTIONS. 1. INVESTING: NCIF PROVIDES PATIENT CAPITAL INTO MISSION-ORIENTED BANKS AND ALSO INTENDS TO SUPPORT SMALL BUSINESSES; 2. DIRECT LENDING: NCIF HAS USED THE NMTC PROGRAM TO MAKE LOANS INTO UNDERSERVED MARKETS NATIONALLY IN COLLABORATION WITH LOCAL MISSION-ORIENTED BANKS. NCIF MAY CONSIDER BUILDING A SMALL BUSINESS LENDING FUND IN COLLABORATION WITH OUR NETWORK BANKS; 3. RESEARCH AND METRICS: NCIF PIONEERED ITS SOCIAL PERFORMANCE METRICS FOR BANKS TO ENABLE INVESTORS FIND THE HIGH IMPACT INSTITUTIONS AND ALSO FOR BANKS TO COMPARE THEMSELVES TO PEER GROUPS IN TERMS OF FINANCIAL AND SOCIAL IMPACT. RESEARCH CREATED ON THE SECTOR AND THE ANNNUAL CONFERENCE HELP IN INCREASING THE EFFICIENCY OF THE SECTOR IN BETTER SERVING THE UNDERSERVED COMMUNITIES. FORM 990, PART III, LINE 4A PROVIDER OF PATIENT CAPITAL - AS OF 12/31/2013, NCIF'S PORTFOLIO CONSISTS OF PROGRAM-RELATED INVESTMENTS OF $18.2 MILLION IN 25 CDBIS THROUGHOUT THE NATION. WITH THE SUPPORT OF NCIF'S INVESTMENTS, PORTFOLIO INSTITUTIONS REPORTED ORIGINATING OVER $490.1 MILLION IN DEVELOPMENT LOANS IN LOW INCOME COMMUNITIES OR TO LOW INCOME BORROWERS DURING THE MOST RECENT YEAR OF ANALYSIS (FY 2012). THESE INSTITUTIONS PROVIDE CREDIT PRODUCTS, DEVELOPMENT SERVICES AND RETAIL FINANCIAL SERVICES IN ECONOMICALLY VULNERABLE COMMUNITIES AND HELP IN PROVIDING ALTERNATIVES TO PAYDAY LENDERS, CHECK CASHERS AND SUBPRIME LENDERS. FORM 990, PART III, LINE 4B DIRECT LENDING USING THE NMTC PROGRAM NCIF NOT ONLY FACILIATES LENIDNG INTO UNDERSERVED MARKETS BUT ALSO ENABLES OUR NETWORK BANK PARTNERS BOOK HIGH QUALITY LOANS. ASSIST IN GENERATING EARNING ASSETS - EXPENSES RELATING TO THE ONGOING OPERATION OF NCIF'S NEW MARKETS TAX CREDITS (NMTC) PROGRAM. THE NMTC PROGRAM WAS CREATED TO CATALYZE MUCH NEEDED ECONOMIC DEVELOPMENT INVESTMENT INTO ECONOMICALLY DISTRESSED, LOW-INCOME COMMUNITIES. NCIF HAS BEEN AWARDED A TOTAL OF $206 MILLION IN NMTC ALLOCATIONS ACROSS THE 2003, 2008, 2009, 2012 AND 2013 PROGRAM YEARS. AS OF DECEMBER 31, 2013, NCIF HAS CLOSED 13 DEALS UTILIZING ALL PRIOR $128 MILLION OF ITS NMTC ALLOCATION. NCIF DOES NOT ALLOCATE HUMAN CAPITAL EXPENSES INTO NMTC AND OTHER BUSINESS LINES. APART FROM DIRECT EXPENSES, ALL OTHER EXPENSES ARE BOOKED IN 4(A). FORM 990, PART III, LINE 4C THE NCIF NETWORK - NCIF OPERATES THE NCIF NETWORK FOR PROVIDING BEST PRACTICES IN RISK MANAGEMENT, VALUATION, GOVERNANCE AND DEVELOPMENT IMPACT ANALYSIS. THE PREMIER EVENT OF THE NCIF NETWORK IS THE ANNUAL DEVELOPMENT BANKING CONFERENCE WHICH BRINGS TOGETHER CHIEF EXECUTIVES FROM CDBI BANKS, THRIFTS AND CREDIT UNIONS TO SHARE BEST PRACTICES AND FOR PEER TO PEER NETWORKING. THE 2013 CONFERENCE WAS ATTENDED BY OVER 150 INDIVIDUALS, INCLUDING CHIEF EXECUTIVE OFFICERS AND SENIOR STAFF MEMBERS FROM OVER 50 BANKS, THRIFTS AND CREDIT UNIONS. THE THEME OF THE 2013 EVENT WAS "CDFI BANK 2.0: INNOVATION FOR IMPACT" AND SESSIONS FOCUSED ON CAPITAL RAISING, SMALL BUSINESS LENDING, NEW MARKETS TAX CREDITS, NEW TECHNOLOGY INNOVATIONS AND IMPACT MEASURING. ON AN ANNUAL BASIS, NCIF PRODUCES SEVERAL RESEARCH REPORTS INCLUDING AN ANNUAL REPORT ON THE FINANCIAL AND SOCIAL PERFORMANCE OF CDFI BANKS AS WELL AS DASHBOARDS ON THE SOCIAL IMPACT OF THE SECTOR. ITS ONLINE TOOL BANKIMPACT.ORG HAS BECOME THAT HAS BECOME A DEFINITIVE SOURCE FOR INFORMATION ON THE SECTOR. FORM 990, PART V, LINE 2A AND PART VII: NCIF HAS DELEGATED THE SERVICES OF NCIF TO NCIF MANAGEMENT LLC. THE EMPLOYEES OF NCIF MANAGEMENT LLC ARE EMPLOYEES OF INSPERITY, A PROFESSIONAL EMPLOYER ORGANIZATION (PEO). THIS INCLUDES THE CHIEF EXECUTIVE AND THE CONTROLLER. FORM 990, PART VI, SECTION A, LINE 3 NCIF SIGNED A SERVICE AGREEMENT WITH NCIF MANAGEMENT LLC FOR THE PURPOSE OF PROVIDING INVESTMENT ADVISORY, ADMINISTRATIVE, AND MANAGEMENT SERVICES TO NCIF. NCIF MANAGEMENT LLC IS A 100% OWNED SUBSIDIARY OF NCIF. THE TRUSTEES CONTINUE TO HAVE FULL RESPONSIBILITY FOR MANAGING NCIF. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED IN DETAIL BY AT LEAST TWO EMPLOYEES OF THE NCIF MANAGEMENT LLC AND IS PRESENTED TO THE TRUSTEES FOR THEIR REVIEW BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE TRUSTEES AND OFFICERS OF THE NCIF MANAGEMENT LLC COMPLETE ANNUAL QUESTIONNAIRES DISCLOSING ANY CONFLICT OF INTEREST. THE DETERMINATION OF WHETHER A CONFLICT EXISTS IS ON A SELF-MONITORED BASIS BY EACH INDIVIDUAL. THE BOARD HAS ADOPTED A FORMAL POLICY FOR REVIEWING AND AFFIRMING ACTIONS WHEN THERE IS A CONFLICT OF INTEREST. WHERE A CONFLICT EXISTS THAT INDIVIDUAL WOULD BE EXCLUDED FROM PARTICIPATION IN VOTING AND DECISION MAKING. ON AN ONGOING BASIS, THESE INDIVIDUALS WOULD INFORM THE BOARD AND THE GOVERNANCE COMMITTEE OF POTENTIAL CONFLICTS AND RECUSE THEMSELVES FROM SUCH BUSINESS MATTERS. FORM 990, PART VI, SECTION B, LINE 15 DURING 2010, THE TRUSTEES ENGAGED A CONSULTING FIRM TO REVIEW AND DETERMINE COMPENSATION FOR THE CHIEF EXECUTIVE. STAFF COMPENSATION IS DETERMINED BY THE CHIEF EXECUTIVE, BASED ON COMPARABLES RECEIVED FROM INSPERITY, SIMILAR ORGANIZATIONS, AND PAST COMPENSATION STRUCTURE AT SHOREBANK. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE TO THE GENERAL PUBLIC. THE FINANCIAL STATEMENTS ARE PUBLICLY DISCLOSED ON THE ORGANIZATION'S WEBSITE. FORM 990, PART IX, LINE 11G PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 134,755. MANAGEMENT AND GENERAL EXPENSES 56,000. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 190,755. FORM 990, PART XI, LINE 9: INTEREST ON AMORTIZATION OF DISCOUNT -628,166. NCIF MANAGEMENT LLC 135 S LASALLE SUITE 2040 CHICAGO IL 60603 273629124 PROVIDE INVESTMENT ADVISORY, ADMINISTRATIVE AND MANAGEMENT SERVICES IL 7699 867099 NATIONAL COMMUNITY INVESTMENT FUND NCIF NEW MARKETS CAPITAL FUND I CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 043730582 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND II CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 043730590 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND III CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 043730551 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND IV CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 383791768 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND V CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 383791769 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND VI CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 383791770 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND VII CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 383791771 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND VIII CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 453342249 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND IX CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 453342421 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND X CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 453342611 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND XI CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 453342735 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND XII CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 453342803 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND XIII CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 462809718 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND XIV CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 462930012 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF NEW MARKETS CAPITAL FUND XV CDE LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 432937063 INVESTING IN LOW-INCOME COMMUNITIES DE N/A NCIF CAPITAL LLC 135 S LASALLE STREET SUITE 2040 CHICAGO IL 60603 161645178 MANAGE CDE'S IL NATIONAL COMMUNITY INVESTMENT FUND C 399 16903 1.00000 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 1 0 0 0