Nonprofit Borrowing

| December 29, 2017

article image
In response to examples in the news and client inquiries, we have prepared this paper to address the topic of nonprofit borrowing. For sake of clarity, we will start by identifying the two most common approaches: borrowing from an endowment and borrowing against an endowment. As a preface, it is important to note that many endowments, especially those with restricted funds, will not easily be able to engage in either method; furthermore, the charter, investment policy statement, or other policies may also prevent borrowing in any form. We are not able to give legal advice as to the feasibility of borrowing, and suggest an organization consult with its legal services provider before taking any action.

Spotlight

Association for Healthcare Philanthropy

The Association for Healthcare Philanthropy (AHP) is an international professional organization dedicated exclusively to developing the people who encourage charity in North America's health care systems. Established in 1967, AHP is the source for education, networking, information, and research opportunities in health care philanthropy. AHP reaches out to development professionals in all sectors of health care including community and private hospitals, foundations, medical centers, children's hospitals, academic Institutions, long-term care facilities, hospices, health care systems, advocacy groups, specialty hospitals.

OTHER ARTICLES
FUNDRAISING

The Money Redirect That’s Coming for Donor Wallets

Article | August 10, 2021

I speak to countless people in the nonprofit sector during the year, including many wealthy major gift donors. Throughout my time working with nonprofits, I often get asked and tell others what I see on the horizon. Recently, I wrote about a nonprofit crash that’s on the way. What's next? I see a big governmental money redirect. It’s no secret that zombie philanthropy took root in the sector. According to the National Philanthropic Trust’s "2020 Donor-Advised Fund Report," these funds, also known as DAFs, have approximately $140 billion under management by money managers at institutions such as Fidelity Charitable Trust, Schwab Charitable and Vanguard Charitable. Because these organizations are set up as 501(c)(3) organizations, donors receive immediate tax deductions.

Read More
NONPROFIT MANAGEMENT

Ladder of Engagement: Nonprofit Fundraising Strategies

Article | June 2, 2021

Have you ever heard of the "Ladder of Engagement"? It's definitely not a new strategy, but as the world increasingly relies on keeping audiences engaged and connected, it's an increasingly important tool for all nonprofits. The nonprofit ladder of engagement is a powerful tool to hook your "casual follower" and move them toward being your most loyal donor and everything in between. If you don't already have a strategic ladder of engagement for your nonprofit, now's a great time to develop one. And for organizations that have one in place, it's good practice to evaluate and make adjustments from time to time--and summer is an excellent time of year to do just that! This blog will help you develop or update your nonprofit's ladder of engagement.

Read More
NONPROFIT MANAGEMENT

Proactive Asset Maintenance for Nonprofits

Article | May 28, 2021

For small nonprofits struggling to keep pace with day-to-day work, planning ahead can seem like a luxury. Especially when it comes to IT asset maintenance: If everything is functioning well right now, why mess with it? But a little work now can save a lot of work in the future. It can also prevent downtime, security incidents, and other issues that can hurt your organization.

Read More
NONPROFIT MANAGEMENT

Nonprofit Communications Plan: How-To Identify an Audience and Create an Avatar

Article | May 25, 2021

Any experienced marketer would tell you that understanding one’s audience is key to success in communication. When creating a strategic communications plan, it is important to identify your goals for each particular communications effort. After you identify the goals and objectives of your communication efforts, you can identify an audience. Brainstorm different groups of people you hope to reach that can help you accomplish your organization’s objectives. Each goal may have several different audiences in which you want to communicate to. When you identify your audience, it will help you decide how to tailor your message to make it relatable to them. Your audience should feel as though your content was written directly to them, which is where constructing an avatar – or ideal customer – comes into play. We will talk more about avatars in just a moment.

Read More

Spotlight

Association for Healthcare Philanthropy

The Association for Healthcare Philanthropy (AHP) is an international professional organization dedicated exclusively to developing the people who encourage charity in North America's health care systems. Established in 1967, AHP is the source for education, networking, information, and research opportunities in health care philanthropy. AHP reaches out to development professionals in all sectors of health care including community and private hospitals, foundations, medical centers, children's hospitals, academic Institutions, long-term care facilities, hospices, health care systems, advocacy groups, specialty hospitals.

Events