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Nonprofits frequently face the same primary challenge: raising
enough money to fund their programs as well as their operating expenses.
As programs and operational requirements evolve over time, opportunities
such as launching a new campaign or moving into a larger facility
can often generate an unanticipated array of expenses, putting additional
pressure on funding resources.
Enter the Nonprofit Finance Fund (NFF), an organization dedicated
to helping other nonprofits achieve financial strength and sustainability.
Founded in 1980, NFF provides financial and advisory services, including
loans and business analysis, to nonprofit organizations focusing
on social services, community development, education, arts and culture,
and more. NFF's New England branch has recently helped a number
of organizations and projects that have a social-services component.
Anita Feiger, program director at NFF, elaborates, "We frequently
provide funds for a wide range of social services, including after-school
film projects for at-risk children, addiction treatment facilities,
and transitional housing for the homeless."
"NFF gets involved with larger facilities that provide transitional
or interim housing and services designed to help get people in need
back on their feet," Ms. Feiger explains. An example of such
a project is the St. Luke's facility in Stamford, Connecticut, which
provides transitional housing for the homeless and people suffering
from HIV/AIDS.
Nonprofits are regularly referred to NFF by banks. "In cases
where there's not a lot of security, a bank will often send the
organization to NFF," says Ms. Feiger. "We are more flexible
regarding security. In fact, half of our loans are unsecured."
NFF can provide bridge loans to nonprofits awaiting funds already
committed through government contracts or donor pledges. The organization
may also be called in when a specific loan within a larger project
is too small for the lending bank.
NFF is often enlisted to provide strategic financial analysis to
nonprofits that are entering a transitional period. "We have
situations where a nonprofit might be going through a major shift
in funding sources, a significant change in management, or they
might be considering taking on a facility project or launching a
new capital campaign," says Ms. Feiger. "In these instances,
an umbrella foundation would enlist NFF to make an independent assessment
of the financial capitalization of the organization."
As part of the process, NFF analyzes the organization's financial
health in the same way it would if it were vetting a potential loan
to the organization. This rigorous review helps the organization
approach growth opportunities with a clear financial strategy that
provides increased stability over time.
For more information about NFF, please visit www.nonprofitfinancefund.org.
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