Mission: Together with residents and partners, LISC forges resilient and inclusive communities of opportunity across America - great places to live, work, visit, do business  ... (More)

Local Initiatives Support Corporation is a 501(c)(3) organization, with an IRS ruling year of 1980, and donations are tax-deductible.

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Contact Information

  http://www.lisc.org/

  28 Liberty Street
Floor 34
New York NY 10005 

  212-455-9800


 Important note on the timeliness of ratings

The IRS is significantly delayed in processing nonprofits' annual tax filings (Forms 990). As a result, the Financial and Accountability & Transparency score for Local Initiatives Support Corporation is outdated and the overall rating may not be representative of its current operations. Please check with the charity directly for any questions you may have.

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Star Rating System by Charity Navigator


Charity Navigator evaluates a nonprofit organization’s financial health including measures of stability, efficiency and sustainability. We also track accountability and transparency policies to ensure the good governance and integrity of the organization.




Good

This charity's score is 88.77, earning it a 3-Star rating. Donors can "Give with Confidence" to this charity. 

This score is calculated from two sub-scores:

This score represents Form 990 data from 2019, the latest year published by the IRS. 

View this organization’s historical ratings.


Back to Overall

Star Rated Report

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Program Expense

Program Expense Ratio

78.8%


The Program Expense Ratio is determined by Program Expenses divided by Total Expense (average of most recent three 990s).


This measure reflects the percent of its total expenses a charity spends on the programs and services it exists to deliver. Dividing a charity's average program expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Administrative Expenses

16.0%


As reported by charities on their IRS Form 990, this measure reflects what percent of its total budget a charity spends on overhead, administrative staff and associated costs, and organizational meetings. Dividing a charity's average administrative expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Fundraising Expenses

5.0%


This measure reflects what a charity spends to raise money. Fundraising expenses can include campaign printing, publicity, mailing, and staffing and costs incurred in soliciting donations, memberships, and grants. Dividing a charity's average fundraising expenses by its average total functional expenses yields this percentage. We calculate the charity's average expenses over its three most recent fiscal years.


Source: IRS Form 990

Liabilities to Assets Ratio

59.1%


The Liabilities to Assets Ratio is determined by Total Liabilities divided by Total Assets (most recent 990).


Part of our goal in rating the financial performance of charities is to help donors assess the financial capacity and sustainability of a charity. As do organizations in other sectors, charities must be mindful of their management of total liabilites in relation to their total assets. This ratio is an indicator of an organization’s solvency and or long term sustainability. Dividing a charity's total liabilities by its total assets yields this percentage.


Source: IRS Form 990

Fundraising Efficiency

$0.06


The amount spent to raise $1 in charitable contributions. To calculate a charity's fundraising efficiency, we divide its average fundraising expenses by the average total contributions it receives. We calculate the charity's average expenses and average contributions over its three most recent fiscal years.


Source: IRS Form 990

Working Capital Ratio

2.40 years


Determines how long a charity could sustain its level of spending using its net available assets, or working capital, as reported on its most recently filed Form 990. We include in a charity's working capital unrestricted and temporarily restricted net assets, and exclude permanently restricted net assets. Dividing these net available assets in the most recent year by a charity's average total expenses, yields the working capital ratio. We calculate the charity's average total expenses over its three most recent fiscal years.


Source: IRS Form 990

Program Expense Growth

5.91%


We compute the average annual growth of program expenses using the following formula: [(Yn/Y0)(1/n)]-1, where Y0 is a charity's program expenses in the first year of the interval analyzed, Yn is the charity's program expenses in the most recent year, and n is the interval of years passed between Y0 and Yn.


Source: IRS Form 990

Governance


Charity Navigator looks to confirm on the Form 990 that the organization has these governance practices in place.


Sources Include: IRS Form 990

Governance:
Independent Voting Board Members  ... (More)
No Material Diversion of Assets ... (More)

A diversion of assets – any unauthorized conversion or use of the organization's assets other than for the organization's authorized purposes, including but not limited to embezzlement or theft – can seriously call into question a charity's financial integrity. We check the charity's last two Forms 990 to see if the charity has reported any diversion of assets. If the charity does report a diversion, then we check to see if it complied with the Form 990 instructions by describing what happened and its corrective action. This metric will be assigned to one of the following categories:

  • Full Credit: There has been no diversion of assets within the last two years.

  • Partial Credit: There has been a diversion of assets within the last two years and the charity has used Schedule O on the Form 990 to explain: the nature of the diversion, the amount of money or property involved and the corrective action taken to address the matter. In this situation, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: There has been a diversion of assets within the last two years and the charity's explanation on Schedule O is either non-existent or not sufficient. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Audited Financials Prepared by Independent Accountant ... (More)

Audited financial statements provide important information about financial accountability and accuracy. They should be prepared by an independent accountant with oversight from an audit committee. (It is not necessary that the audit committee be a separate committee. Often at smaller charities, it falls within the responsibilities of the finance committee or the executive committee.) The committee provides an important oversight layer between the management of the organization, which is responsible for the financial information reported, and the independent accountant, who reviews the financials and issues an opinion based on its findings. We check the charity's Form 990 reporting to see if it meets this criteria.

  • Full Credit: The charity's audited financials were prepared by an independent accountant with an audit oversight committee.

  • Partial Credit: The charity's audited financials were prepared by an independent accountant, but it did not have an audit oversight committee. In this case, we deduct 7 points from the charity's Accountability and Transparency score.
  • No Credit: The charity did not have its audited financials prepared by an independent accountant. In this case, we deduct 15 points from the charity's Accountability and Transparency score.
(Less)
Does Not Provide Loan(s) to or Receive Loan(s) From Related Parties ... (More)
Documents Board Meeting Minutes ... (More)
Distributes 990 to Board Before Filing ... (More)
Compensates Board ... (More)

Policies


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization has these policies in place.


Sources Include: IRS Form 990 and organization's website

Policies:
Conflict of Interest  ... (More)
Whistleblower ... (More)
Records Retention and Destruction ... (More)
CEO Compensation Process ... (More)
Donor Privacy ... (More)

Donors can be reluctant to contribute to a charity when their name, address, or other basic information may become part of donor lists that are exchanged or sold, resulting in an influx of charitable solicitations from other organizations. Our analysts check the charity's website to see if the organization has a donor privacy policy in place and what it does and does not cover. Privacy policies are assigned to one of the following categories:

  • Yes: This charity has a written donor privacy policy published on its website, which states unambiguously that (1) it will not share or sell a donor's personal information with anyone else, nor send donor mailings on behalf of other organizations or (2) it will only share or sell personal information once the donor has given the charity specific permission to do so.

  • Opt-out: The charity has a written privacy policy published on its website which enables donors to tell the charity to remove their names and contact information from lists the charity shares or sells. How a donor can have themselves removed from a list differs from one charity to the next, but any and all opt-out policies require donors to take specific action to protect their privacy.
  • No: This charity either does not have a written donor privacy policy in place to protect their contributors' personal information, or the existing policy does not meet our criteria.

The privacy policy must be specific to donor information. A general website policy which references "visitor" or "user" personal information will not suffice. A policy that refers to donor information collected on the website is also not sufficient as the policy must be comprehensive and applicable to both online and offline donors. The existence of a privacy policy of any type does not prohibit the charity itself from contacting the donor for informational, educational, or solicitation purposes.

(Less)

Transparency


Charity Navigator looks to confirm on the Form 990, or for some metrics on the charity's website, that the organization makes this information easily accessible.


Sources Include: IRS Form 990 and organization's website

Transparency:
CEO Salary Listed on 990 ... (More)
Board of Directors Listed on Website ... (More)
Key Staff Listed on Website ... (More)
Audited Financial Statements on Website ... (More)
Form 990 Available on Website ... (More)

Additional Information

Unscored

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Total Revenue and Expenses

Total Revenue and Expenses

This chart displays the trend of revenue and expenses over the past several years for this organization, as reported on their IRS Form 990.

Salary of Key Persons

Presented here are this organizations key compensated staff members as identified by our analysts. This compensation data includes salary, cash bonuses and expense accounts and is displayed exactly how it is reported to the IRS. The amounts do not include nontaxable benefits, deferred compensation, or other amounts not reported on Form W-2. In some cases, these amounts may include compensation from related organizations. Read the IRS policies for compensation reporting



Maurice Jones, President & CEO

$629,150 (0.39% of Total Expenses)


Current CEO and Board Chair can be found in the Leadership & Adaptability report below.

Source: IRS Form 990 (page 7), filing year 2019

Business Master File Data

Below are some key data points from the Exempt Organization IRS Business Master File (BMF) for this organization. Learn more about the BMF on the IRS website


Activities:

Gifts, grants, or loans to other organizations (BMF activity code: 602)

Non-financial services of facilities to other organizations (BMF activity code: 603)

Area development, redevelopment of renewal (BMF activity code: 400)


Foundation Status:

Organization which receives a substantial part of its support from a governmental unit or the general public   170(b)(1)(A)(vi) (BMF foundation code: 15)


Affiliation:

Independent - the organization is an independent organization or an independent auxiliary (i.e., not affiliated with a National, Regional, or Geographic grouping of organizations). (BMF affiliation code: 3)

Data Sources: IRS Forms 990

The Form 990 is a document that nonprofit organizations file with the IRS annually. We leverage finance and accountability data from it to form Encompass ratings. Click here to view this organization's Forms 990 on the IRS website (if any are available).

Pandemic Response

Due to the unprecedented nature of the pandemic, we give charities such as this one the opportunity to share the story of COVID's impact on them. Charities may submit their own pandemic responses through their nonprofit portal.


Local Initiatives Support Corporation reported being impacted by COVID-19 in the following ways:
  • Program Delivery

  • Fundraising Capacity

  • Revenue

  • Administrative Capacity

  • Grants Received

  • Grants Sent


How COVID-19 impacted the organization's operations financially:

The immediate and immense impact of COVID-19 on communities caused partners to turn to LISC as a means of deploying pandemic relief funding quickly and efficiently. While the majority of this funding went directly to programming in the forms of grants, loans, and technical assistance, the remainder enabled us to develop new processes and systems to meet the needs of our communities. This included adding staff to increase capacity and implementing a faster way of getting much-needed financial relief out the door.


How COVID-19 impacted the organization's delivery of programs:

COVID-19’s swift and decisively negative impact on the economy and small businesses caused LISC to rapidly build new resources for small business support, grants, and Paycheck Protection Program (PPP) loans. We created a large new national program for small business relief, with more than $80 million in grants helping small businesses keep their doors open. LISC’s lending efforts grew as well, not just on the strength of PPP loans, but also through a range of flexible, affordable financing that helped fuel childcare centers and schools, retail, small manufacturing, services firms and more—each of them serving low- and moderate-income communities, each creating jobs and supporting local incomes.


How this organization adapted to changing conditions caused by COVID-19:

LISC shifted organizational resources to establish a new infrastructure that would provide direct grants to small business owners. As with many businesses, we instituted a remote work policy and established new virtual connections to our partners and borrowers. For example, we adapted our processes for borrowers to allow them to pay via ACH rather than by check to speed up processing time. LISC also temporarily made our lending guidelines more flexible in recognition of pandemic-related challenges faced by many of our borrowers, which included loan extensions, waiving of late fees, and short-term bridge loans.


Innovations the organization intends to continue permanently after the pandemic:

We will continue to grow our support for small businesses with a national network of business development organizations (BDOs). LISC BDO partners link their on-the-ground networks and insight with LISC’s national scale, funding and expertise to support small businesses, in the midst of COVID, and for the future. During the pandemic, we worked to increase digital skills and access to technology for individuals served by Financial Opportunity Centers (FOCs), which we will continue to do. FOC services, along with schools and some government services, shifted to remote service provision for first time during the pandemic. Many families lack the digital skills and necessary hardware to participate in essential virtual services, and we will continue to focus on digital inclusion and access as part of our work.


Historical Ratings

Date PublishedForm 990 FYEOverall ScoreOverall Rating
Rating Version: 2.1
11/1/20212019 88.77
6/1/20212019 88.42

This organization received multiple star ratings within this fiscal year, due to an update to its Accountability and Transparency data and/or the receipt of an amended Form 990.

5/1/20202018 90.12
4/1/20192017 89.97
5/1/20182016 90.58
3/1/20172015 90.64
6/1/20162014 89.60
Rating Version: 2.0
7/1/20152013 92.94
3/1/20142012 85.45
5/1/20132011 93.33
4/1/20122010 85.39
9/20/20112009 81.19
Rating Version: 1.0
6/1/20112009 84.79
6/1/20102008 92.18
7/1/20092007 92.70
7/1/20082006 92.78
12/15/20062005 85.96
2/1/20062004 88.51
12/1/20042003 92.03
1/1/20042002 98.47
2/5/20032001 97.91
10/15/20022000 94.08

Previous: Finance & Accountability  / Next: Leadership & Adaptability

...   Impact & Results


This score estimates the actual impact a nonprofit has on the lives of those it serves, and determines whether it is making good use of donor resources to achieve that impact.


Impact & Results Score

Not Currently Scored

Local Initiatives Support Corporation cannot currently be evaluated by our Encompass Rating Impact & Results methodology because either (A) it is eligible, but we have not yet received data; (B) we have not yet developed an algorithm to estimate its programmatic impact; (C) its programs are not direct services; or (D) it is not heavily reliant on contributions from individual donors.

Note: The absence of a score does not indicate a positive or negative assessment, it only indicates that we have not yet evaluated the organization.

Learn more about Impact & Results.

Do you work at Local Initiatives Support Corporation? Join the waitlist for an updated Impact & Results score.


Back to Overall

Additional Information

Unscored

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Largest Programs

Largest Programs



Local Initiatives Support Corporation reported its three largest programs on its FY 2019 Form 990 as:


$59,286,170

Spent in most recent FY

46%

Percent of program expenses


Project Development


$48,405,409

Spent in most recent FY

38%

Percent of program expenses


Project Grants


$19,514,823

Spent in most recent FY

15%

Percent of program expenses


Lending


Previous: Impact & Results  / Next: Culture & Community

...   Leadership & Adaptability


This score provides an assessment of the organization's leadership capacity, strategic thinking and planning, and ability to innovate or respond to changes in constituent demand/need or other relevant social and economic conditions to achieve the organization's mission.


Leadership & Adaptability Score

100

out of 100

The score earned by Local Initiatives Support Corporation is a passing score. This score has no effect on the organization's Star Rating.

Encompass Rating V4 provides an evaluation of the organization's Leadership & Adaptability through the nonprofit organization submitting a survey response directly to Charity Navigator.


Back to Overall

Leadership & Adaptability Report

100

of 100 points

Mission

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s mission


Together with residents and partners, we forge resilient and inclusive communities of opportunity across America–great places to live, work, visit, do business and raise families.


Source: Nonprofit submitted responses

Vision

The nonprofit organization presents evidence of strategic thinking through articulating the organization’s vision.


LISC is one the country’s largest community development organizations, helping forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so that people and places can thrive. Since our founding, LISC has invested $24 billion to create more than 436,320 affordable homes and apartments and develop 74.4 million square feet of retail, community and educational space. For more, visit www.lisc.org.


Source: Nonprofit submitted responses

Strategic Goals

The nonprofit organization presents evidence of strategic thinking and goal setting through sharing their most important strategic goals.


Goal One: Support equitable recovery and rebuilding by investing in wealth building and resilience supports for individuals and communities that are Black, Indigenous and people of color

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Goal Two: Grow capital aggregation and deployment, establishing intentional impact parameters, while augmenting the implementation capacity of the community and economic development ecosystem.

Goal Type: Focus on core programs to achieve mission and scale back on programs not seen as core.


Goal Three: Continue attracting new partners and expand the diversity of community voices in the work.

Goal Type: Grow, expand, scale or increase access to the existing programs and services.


Source: Nonprofit submitted responses

Leadership Development

The nonprofit provides evidence of investment in leadership development


Describe an investment in leadership

LISC offers leadership opportunities through affinity groups, professional development funding, and a mentoring program. The mentor program is offered annually to staff through MentorcliQ, and emphasizes leadership and career development.

Source: Nonprofit submitted responses

Mobilizing for Mission

The nonprofit provides evidence of leadership through focusing externally and mobilizing resources for the mission.


This organization mobilizes for mission in the following ways:
  • Strategic Partnerships

  • Networks of Collective Impact Efforts

  • Thought Leadership

  • Raising Awareness

  • Community Building

  • Policy Advocacy

What are this organization’s external mobilizaton efforts?

LISC receives funding from banks, corporations, foundations and government agencies. We, in turn, use that funding to provide financing (loans, grants and equity) and technical and management assistance to local partners and developers. Through our 38 local offices, a rural program that reaches more than 2,400 counties in 49 states, and LISC-founded affiliates and entities, we work with a vast network of community-based partners to make investments in housing, businesses, jobs, education, safety and health. We amplify these efforts through social media, podcasts, press releases, conference presentations, earned media, and more. The LISC Policy Team meets with officials on Capitol Hill and in the White House, advocating for programs that are critical for economic growth and opportunity. LISC offices work with state and local officials and engage their federal delegations as needed.

Source: Nonprofit submitted responses

Story of Adaptability

The nonprofit has an opportunity to tell the story of how the organization adapted to tremendous external changes in the last year.


In light of the COVID-19 pandemic and the renewed focus on racial justice nationwide, LISC increased our focus on supporting equitable recovery and rebuilding. We do this through our new initiative launched in late 2020, Project 10X, a 10-year, $1 billion strategy to bridge racial gaps in health, wealth and opportunity for individuals and communities that are Black, Indigenous and people of color. During 2020, LISC made more than $2 billion in community investments – a new record for the organization. This included increased affordable housing support, new funding for small businesses, and deep engagement with partners around health, education, safety and jobs. It spanned some $1.5 billion in equity investments, $290 million in community development loans and $240 million in grants—more than four times the level of grantmaking in the prior year. Over the next three years, LISC will work to institutionalize and embed explicit equity metrics into our organizational culture, language, policies, investments, practices and programs. Programmatically, we will implement mechanisms to track and report on such metrics as the share of LISC investments that go to BIPOC-led nonprofits, the share of LISC-supported real estate projects that employ diverse enterprises, and the share of LISC investments that go to minority-owned business enterprises.

Source: Nonprofit submitted responses

Additional Information

Unscored

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Organization Leadership

Organization Leadership


Lisa L. Glover

President & CEO

Robert E. Rubin

Chair

Previous: Leadership & Adaptability

...   Culture & Community


This score provides an assessment of the organization's culture and connectedness to the community it serves. Learn more about how and why we rate Culture & Community.


Culture & Community Score

100

out of 100

Local Initiatives Support Corporation has earned a passing score. This score has no effect on the organization's Star Rating. The organization provided data about its Diversity, Equity, & Inclusion (DEI) practices (see report below).

The Culture & Community Beacon is comprised of the following metrics:

  • Constituent Feedback: Not Scored

  • Diversity, Equity, & Inclusion: 100/100 (100% of beacon score)


Back to Overall

Culture & Community Report

100

of 100 points

This beta feature is currently viewable only on desktop or tablet screens. Check back later for updates.

Constituent Feedback

Diversity, Equity, & Inclusion

100/100 points

100% of beacon score


This organization's score of 100 is a passing score. The organization reported that it is implementing 11 diversity, equity and inclusion (DEI) practices. Charity Navigator believes nonprofit organizations implementing effective DEI policies and practices can enhance a nonprofit's decision-making, staff motivation, innovation, and effectiveness.


View this organization's DEI Strategies


Methodology


We are utilizing data collected by Candid to document and assess the DEI practices implemented by the organization. Nonprofit organizations are encouraged to fill out the Equity Strategies section of their Candid profiles to receive a rating.


Learn more about the methodology.

Constituent Feedback

Not Scored


This organization reported that it is collecting feedback from the constituents and/or communities it serves. However, it did not respond to one or more survey questions, and therefore is not eligible for a score on this metric. (View our beacon methodology.) Charity Navigator believes nonprofit organizations that engage in inclusive practices, such as collecting feedback from the people and communities they serve, may be more effective.


View this organization's Constituent Feedback Practices




Methodology


We've partnered with Candid to survey organizations about their feedback practices. Nonprofit organizations can fill out the How We Listen section of their Candid profile to receive a rating.


Learn more about the methodology.

Analysis and Research


Like the overall Encompass Rating System, the Culture & Community Beacon is designed to evolve as metrics are developed and ready for integration. Below you can find more information about the metrics we currently evaluate in this beacon and their relevance to nonprofit performance.


Constituent Feedback


Diversity, Equity, and Inclusion

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