Tips for Nonprofit Organizations Seeking Capital

Nonprofit organizations, just like their for-profit brethren, often find themselves in need of capital to further their missions. Museums, theaters and other arts organizations undergo capital campaigns in order to preserve and promote culture. Hospitals need funding to expand into larger, state-of-the-art facilities.

In some instances, organizations can tap into the resources available through wealthy board members who can help the organizations stay afloat. They can either make donations or offer loans. This can be tricky if the organization has conflict-of-interest policies that could be violated. If a loan is obtained, the terms must be spelled out, as with any other lender.

Nonprofits can also approach banks and non-bank lenders. Obtaining a loan can be a challenge, depending on the organization’s profile, history and financial standing