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Strong Nonprofits - Strong Communities
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The 2004 Nonprofit Leadership Conference -- sponsored by:
Alliance of Nonprofits for Insurance
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Agility: Leading Nimble Nonprofits The Tenth Annual Nonprofit Leadership Conference: April 1, 2004. Meydenbauer Center, Bellevue
Access to Capital Notes by Jennifer K. Rogers Panelists: Irene Fisher, Gottlieb, Fisher & Andrews; Dave Nicandri, Executive Director, Washington State Historical Society; Tia Peycheff, Washington State Housing Finance Commission Dave Nicandri -- http://www.wshs.org/ § Background on the Historical Society o Recognized as trustee agency o Nonprofit board but state agency o Expected to raise own capital § To be successful at raising capital (philosophical viewpoint) o Organizational differentiation – promotion, PR, branding, establishing identity o Indispensability – what is the true value of your organization to the community o Sustainability o Fidelity – do what you say you’re going to do o Gratitude – thanking people § Practical Side – focus on state government o 3 Major aggregations of capital § Transportation § Recreation (environment, outdoors) § Open Sector (arts, social services) Tia Peycheff -- http://www.wshfc.org/ § Nonprofit financing § Debt financing o Debt does not work for all nonprofits o When does it make the most sense to use debt? 1. If you wait cost goes up a. Capital campaign 2. Where do you want to put your money a. Reserves b. Endowments 3. Equity Issues – debt may help spread the cost out over the years – more people help pay for the facility. o Don’t use debt: § Don’t have a way to pay it back § Don’t have an income stream § Costs exceeds value of the facility (how does it meet your mission?) § Organizational changes -- funding future uncertain o Way to manage capital campaign/pledges – pay off debt pledges come in o If your campaign is close but not close enough, you can use debt to make it. But this should be part of the capital campaign from the beginning. o Get to know bankers early – not necessarily bankers on the board o Fees and charges negotiated with bank § 501(c)(3) o Tax exempt bond o Interest tax exempt to lender (because lending to a 501(c)(3) o Receive a lower interest o Save money, which you can put into operations, etc. Conclusion:
Irene Fischer Agile – being able to move when it is right Position your organization by looking at your credit financial picture, governance and 501(c)(3) status
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