Financing Nonprofit Facilities
Nonprofits benefit America in ways that cannot easily be quantified: as tools for community building, fostering a civil society, hiring the underemployed and unemployed, and strengthening the social fabric of our communities.
Strong nonprofits are crucial to the economy and quality of life of any healthy community. They specialize in meeting social needs not being met by the public and for-profit sectors. By providing services that otherwise would require government action and expenditures, nonprofit organizations reduce the overall federal and state tax burdens. Nonprofits support cultural, environmental, healthcare, and educational activities, and they foster support to people in need through housing, food, healthcare, child care, and family services programs.
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Nonprofits view banks as depositories, not lenders; likewise, most banks view nonprofits as depositors, not borrowers. Community development financial institutions (CDFIs) are critical to filling the consequent funding gap because, as nonprofits themselves, they understand the nuances of nonprofit financing, and they know how to communicate with nonprofits in a way that garners trust. As public funding sources decrease and community needs increase, CDFIs have become critical collaborators and financing sources for affordable housing and community development projects.
By increasing the accessibility of financing, CDFis help nonprofits improve the efficiency and effectiveness of their services and stabilize their costs and risks.
This is an excerpt from The NEXT American Opportunity. The full text can be downloaded as an Adobe PDF Document.
