The Illinois Facilities Fund (IFF) was created in 1988 by The Chicago Community Trust to enable nonprofit corporations to own real estate in response to the energy crisis of the late 70's and their inability to lease decent facilities. A Trust task force designed a loan fund to finance facilities for small and mid-sized nonprofits dependant on state funding. IFF pioneered long-term loans tailored to the financial structure of its borrowers, whose revenue is stable over time but does not support market rate financing. IFF loans allow nonprofits to build net assets. In 1990 IFF was contracted by the State of Illinois to design, finance and own subsidized child care centers. A Trust grant of $2 million facilitated $25 million of investment and the first tax-exempt bond issue for this purpose. This led to the creation of IFF's Real Estate Services division. Early on, IFF attracted significant foundation funding, and began borrowing low-interest capital from banks in 1991. IFF also borrows from foundations, religious investors and insurance companies. IFF employs New Markets Tax Credits and tax-exempt bond financing for the benefit of borrowers. Today IFF serves five states but the Chicago Metro area will always be its largest customer base. IFF has added the arts, housing and land trusts to its customer base, and in 2007 launched the first statewide housing lending and development program with a grant from the Trust. As of 6/30/10, IFF employees 44 staff in 4 offices.

IFF is a nonprofit community development financial institution whose mission is to strengthen nonprofits that provide critical services to low-income communities through lending and real estate planning. IFF finances real estate for nonprofit corporations, provides consulting for facilities planning and development, conducts research, and leads targeted public policy initiatives. IFF serves nonprofits in Illinois, Indiana, Iowa, Missouri and Wisconsin.

Loan Program: IFF's standard product is a long-term, fixed-rate, below-market loan for the acquisition, construction and/or rehabilitation of real estate. IFF also lends for leasehold improvements, major maintenance, vehicles and equipment, and working capital. Loan officers work closely with borrowers to provide guidance on financial decisions and feedback on real estate development budgets. Loan officers also connect nonprofits with a wide range of resources to help them improve financial management and raise funds. As of March 31, 2010, IFF has made 789 loans totaling $278 million, leveraging $808 million in community investment. In addition, IFF has provided $10.7 million in credit enhancement to leverage $148 million in charter school bond and other financings, and has supported $15.3 million in development costs through its Child Care Facility Development Program. As of 6/30/10, IFF employs 17 loan staff. Real Estate Services: IFF's Real Estate Services (RES) is a full-scale real estate business that provides consulting, project planning, and construction management services at below-market rates. IFF's customers are primarily nonprofits in the Chicago metropolitan area that cannot find, or afford, such assistance in the traditional consultancy market. Services include real estate development expertise, space needs assessments, analysis of current and projected financial position, and recommend long-term capacity plans, and community planning. RES includes 12 real estate professionals, six of whom are LEED accredited. As of March 31, 2010, RES has completed 332 projects for nonprofits resulting in 667,282 square feet of real estate renovated or development. Research: IFF's research has strengthened the nonprofit sector for over 20 years. IFF's understanding of how government funding works and how funders and investors allocate resources results in studies and reports that result in action. Over the last five years IFF has completed seven major studies that have brought about significant positive changes for nonprofits and low-income communities. Public Policy: The multiplying effect of community development finance, real estate development in low-income communities and research has supported an ongoing public policy agenda. The current priorities include structural issues related to the Community Reinvestment Act; federal funding for charter schools, primary health clinics and child care centers; real estate taxation on charity care hospitals; financial services reform related to banks and the GSEs; and the Illinois budget. IFF is providing information and support on these matters as well as direct lobbying in support of appropriations.