Why Use Debt?

When planning a capital project, most nonprofits turn to a traditional capital campaign. However, using debt as part of your plan of finance should always be considered.

While many nonprofits find the prospect of debt daunting, tax-exempt financing can actually support your organization’s long-term growth and financial footing, as it:

  • Allows construction to start before all capital pledges are received
  • Spreads costs over project’s useful life
  • Conserves cash to cover unforeseen expenses
  • Allows contributions to fund an endowment, not construction

Whether you need to fund a new cultural or educational building or to refinance an existing loan, click here to learn more about our application process.

     
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