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Negative Payouts

The base amount repaid from a PRI that has previously been counted toward a private foundation's 5% payout requirement. The amount recovered is added to the foundation's payout requirement during the period received, unless renewed or recycled to another investee during the period determined by the IRS.

Net Assets

The difference between an organization's total assets and total liabilities. Formerly called fund balance or net worth.

Net Assets Released From Restrictions

Those assets that were restricted for either a period of time or for a particular purpose for which donor-imposed conditions have been met, thus allowing the assets to become available for use.

Net Interest Margin

Sometimes referred to as "Margin," this term refers to the difference between the interest earned on loans and investments and the interest paid on borrowings and/or deposits (or cost of funds), divided by average earning assets. For example, if in a year a CDFI earns $6,000 on loans, pays out $3,000 in interest to investors, and has average loans outstanding of $100,000, the calculation would be: ($6,000 - $3,000)/$100,000, or 3% net interest margin.

Net Worth

The total assets of a CDFI minus its total liabilities. The terms net worth, net assets, net capital, total equity and shareholders equity are often used interchangeably. Net worth generally comprises capital that accumulates from earnings or from grants, but may also include secondary capital or EQ2.

New Markets Tax Credit (NMTC)

A program administered by the U.S. Treasury's CDFI Fund designed to incentivize equity investments in low-income communities. Investments in designated Community Development Entities (CDE), including certified CDFIs, receive a 39% federal tax credit over seven years. The CDE must in turn deploy the investment in qualified low-income communities for such purposes as loans or equity investments in small businesses, mortgages, or real estate development.


A financial security that generally has a longer term than a bill, but a shorter term than a bond. However, the duration of a note can vary significantly, and may not always fall neatly into this categorization. Notes are similar to bonds in that they are sold at, above or below face (par) value, make regular interest payments and have a specified term until maturity.

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