BBB Wise Giving Report for
Neighborhood Reinvestment Corporation

BBB Wise Giving Report issued November 2010
BBB Wise Giving Report expires November 2012


Does not meet one or more standards
This charity does not meet one or more of the 20 standards for Charity Accountability. Find out more...


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Charity Contact Information

Name: Neighborhood Reinvestment Corporation
Address: 1325 G Street NW
, Suite 800
  Washington, DC 20005
Phone: 202-220-2300
Web Address: www.nw.org
Also known as:NeighborWorks America
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BBB Wise Giving Alliance Comments

Year, State Incorporated: 1978, District of Columbia
Affiliates: Neighborhood Housing Services of America, Inc. (NHSA) , NeighborWorks Capital Corporation, and 1 chapter

Stated Purpose: "to create opportunities for people to live in affordable homes, improve their lives and strengthen their communities."

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Evaluation Conclusions

              

Neighborhood Reinvestment Corporation (NRC) does not meet the following 3 Standards for Charity Accountability.

Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.

NRC does not meet this Standard because:

  • The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.

Standard 7: Board Approval of Written Report on Effectiveness - Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

NRC does not meet this Standard because:

  • It has never completed an effectiveness assessment.

Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

NRC does not meet this standard because the most recent annual report did not include:

  • Total program expenses.
  • Total expenses for each program in the same categories that appear in the organization’s financial statements.
  • Total fund raising expenses.
Neighborhood Reinvestment Corporation (NRC) meets the remaining 17 Standards for Charity Accountability.
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Programs

              

NRC assists in expanding the capacity of network members by providing onsite technical assistance and funding. NRC also helps create and sustain affordable housing units, promote homeownership and further mixed-income affordable housing opportunities, as well as offer activities such as hazard abatement, energy conversation, post purchase counseling and foreclosure prevention. The organization focuses on equity capital in the form of corporate grants to local organizations, revolving loan funds which are used to support home repair, down-payment and closing cost assistance, energy conservation repairs, redevelopment costs, acquisition of properties and other initiatives. Through communications, publications, research and training functions, NRC collects and disseminates information through a variety of vehicles. The organization aims to bring low cost-private-sector capital and loan products to network members. Loan products help meet financing needs for housing rehabilitation, homeownership and real-estate development.

For the fiscal year ended September 30, 2009, NRC's program expenses were:

  
National Foreclosure Mitigation Counseling (NFMC) 203,431,952
Capacity building 63,086,297
Preserving affordable housing 34,234,104
Training and informing 23,322,188
Secondary market 8,250,000
Organizational assessment 3,898,586
Total Program Expenses: $336,223,127
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Governance

              

Chief Executive : Kenneth D. Wade, Chief Executive Officer
Compensation*:
$238,448

Chair of the Board: Thomas J. Curry, Board Chair
Chair's Profession / Business Affiliation: Director, Federal Deposit Insurance Corporation

Board Size: 6

Paid Staff Size: 270

*October 1, 2008- September 30, 2009 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances.
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Fund Raising

              

Method(s) Used:

Grant proposals, planned giving.
Fund raising costs were less than 1% of related contributions. (Related contributions, which totaled $346,879,342, are donations received as a result of fund raising activities.)
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Tax Status

              

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.
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Financial

              

The following information is based on NRC's audited financial statements for the fiscal year ended September 30, 2009.

Source of Funds  
Congressional appropriation 328,618,602
Contributions 18,260,740
Grants and contracts 8,023,758
Training registration fees 2,844,381
Other income 886,440
Investment income 853,856
Total Income $359,487,777


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Uses of Funds as a % of Total Expenses

Programs: 96%  Fund Raising: Less than 1%  Administrative: 4% 

Total income   $359,487,777
  Program expenses $336,223,127
  Fund raising expenses 244,873
  Administrative expenses 15,678,781
 
Total expenses   $352,146,781
Income in Excess of Expenses   7,340,996
Beginning net assets   17,451,506
Ending net assets   24,792,502
Total liabilities   174,413,817
Total assets   $199,206,319


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An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the BBB Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.

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