NCNE Advisory Letter: How Should Our Nonprofit Organization Fund Its Capital Needs?

By |2020-12-31T20:10:44+00:00December 10th, 2020|Categories: Advisory Newsletters|Tags: , , , , |

Traditionally, nonprofit organizations have focused their annual budgets and fundraising on programs and necessary operating expenses. Few have budgeted set amounts for future major capital expenses or to replace depreciated assets. When it came time for a major capital expense, especially a new building, nonprofits would often seek major grants from foundations. In the past, foundations generally served as the main source of capitalization in the nonprofit sector. Since the 2008 recession, however, more and more foundations have shifted their grants towards funding operating expenses, new program initiatives and organizational sustainability.

How Much Debt and Borrowing is Healthy for a Nonprofit Organization

By |2020-12-31T20:25:14+00:00February 13th, 2020|Categories: Finance & Economics, Videos|Tags: , , , |

Businesses that wish to expand or invest in certain assets (such as real estate) might raise capital from investors, might borrow money from a bank, or use some combination of both…Nonprofits also require financing for the same reasons …Unlike for-profit businesses, however, nonprofits face different financing choices.

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