LENDonate offers more than just nonprofit loans. We offer nonprofit financing solutions by listening to your needs and customizing loan requests that excite our Lenders, who are looking to invest in impactful projects that have been vetted by LENDonate.
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Loan Minimum: $50,000
Access to Philanthropic Capital
Customizable Terms
LENDonate enables you, the nonprofit borrower, to thrive by providing access to affordable capital. We bring together Lenders and philanthropists who want to help you prosper and advance your vision and mission. We facilitate and manage loans for nonprofit organizations by keeping your conversations focused on what matters most, your programs. Whether your nonprofit is looking to grow and expand, bridge a trouble spot, or create financial comfort by balancing funders and program expenses, we can help you find workable financial solutions. By telling your story, LENDonate broadens your reach to a vibrant audience of Lenders and donors.
There are various reasons for nonprofit organizations to consider taking out a loan. It could be for strategic growth, to supplement working capital during a unique period, or to finance real estate projects. LENDonate offers basic loan products, as well as various innovative solutions. The table highlights a few examples.
| Types of Financing | Purpose of Loan | Typical Term |
Historical Interest Rates* |
|---|---|---|---|
|
Real Estate Financing |
|
1 – 5 yrs |
3.25 - 10.00% |
|
Bridge Loans |
|
6 – 24 mo |
2.90 - 10.00% |
|
Working Capital Loans |
|
1 - 3 yrs |
3.00 – 10.00% |
|
Debt Refinancing |
|
1 - 5 yrs |
5.00 - 10.00% |
*Historical Interest rates represent loans between October 2016 and September 2023
Owning real estate not only can be a great investment for a nonprofit, but a way to keep your costs down as well. Whether you are looking to purchase or renovate an office, warehouse, single family house or a community facility, we can help you accomplish your goals. We can also help your organization refinance existing commercial real estate loans to lower your payments. If you are in the market for real estate financing, let our team of experts help you customize a comprehensive solution. Take our quick intake survey so we can learn about your capital project and respond to you with helpful information.
Is your organization burdened with an existing loan that puts it under undue cash flow duress? LENDonate can ease this burden by helping you restructure existing debt with more favorable interest rates. Stop throwing money away by letting us help you find the right financial solution to help you achieve your goals.
Nonprofit leaders are some of the most creative and resourceful people in the world. Not every nonprofit project fits neatly into a given category, and we are here to help your one-of-a-kind projects get started. If you have a major project in need of financing, perhaps involving multiple stakeholders over a phased timeline, we’d love to hear from you. If it involves real estate financing, take our quick intake survey to tell us about your project.
The LENDonate platform serves as an integration point between you, your current supporters and potential future supporters who learn about your organization for the first time through LENDonate.
We are here to facilitate and manage that process, keeping your conversations focused on what matters: your programs. By telling your story on LENDonate’s website, you can reach a larger pool of nonprofit-oriented donors and return-seeking Lenders. This typically leads to dramatically reduced funding costs and a growing base of support.
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Nonprofit borrower completes a loan application with funding request, program and impact summary and financial history.
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To qualify for a loan, your 501(c)(3) organization needs to have at least 3 years of operating history and be in good standing. We will evaluate your organization’s financial strength in supporting this loan based on financial information filed with the IRS and financial reports that you provide.
For all loan types, the loan minimum is $50,000. While there is not an absolute dollar maximum, each borrower’s loan maximum is based on the organization’s financial strength and collateral. See our Success Stories for a range of exciting projects we helped finance.
At LENDonate, our mission is to help nonprofits find the most favorable terms for the capital they need. To that end, we do not believe in loan factoring or other high-cost lending practices.
Qualified borrowers have received loans at a variety of interest rates ranging from 2.95% to 9.20% per annum. While the interest rate environment influences each loan’s fair market rate, our sweet spot has been between 7-8% interest. Based on your organization’s financial strength and collateral, we determine the ceiling interest rate. Our Lenders can offer to lend at this rate or below.
Our Marketplace also makes it easy for our Lenders to donate to you during the campaign and/or the repayment period. While our Lenders must be accredited investors, anyone can donate during your campaign period.
For each successfully funded loan, we charge a fee of 2% of the loan amount and donations received. Services covered by these fees include:
–> Loan Campaign Period: Creating your online loan campaign page; marketing your organization and your project to our Lenders through direct outreach (email newsletters, social media); crowdfunding donations made to your organization.
–> Repayment Period: Providing streamlined repayment process; managing conversions from loan to donation when initiated by a Lender. In some situations, third-party fees may apply and will be disclosed prior to engagement for borrower’s approval.
Watch this helpful video to preview the loan application process.
LOAN APPLICATION PREVIEW
Organization Name
EIN
Mission Statement
Program Summary
I have the authority to initiate this application as a Director (checkbox to confirm)
Director’s Email Address (use organization email address)
Director’s First Name, Last Name, Title, Phone Number, Years in Job
The director or partner who will sign the application is a US resident. (checkbox to confirm)
This is a 501(c)(3) organization in good standing. (checkbox to confirm)
Organization’s Address
Organization’s Telephone Number
Cause Category
Ruling Year (must have at least 3 years of history to qualify)
Number of employees?
How many board members are there?
Desired Loan amount ($50,000 minimum)
If this loan is a part of a larger fundraising effort, what is the total fund-raise amount?
When do you require the funding?
Repayment Term
Loan Project Title (Make it catchy!)
Describe specifically how funds will be used (e.g. Working Capital, Program Expansion, Debt Refinancing, Equipment purchase, Property purchase and/or renovation, etc.)
Describe how this loan will help your organization succeed and the impact. (Use this space to promote your projects.)
Please detail the source(s) of Repayment. (e.g. Pending grants, fundraising events etc…):
In the past 3 years list foundations that have given you major grants, if any.
Upload IRS Determination Letter, Latest Form 990, Latest financial statements
Please indicate any existing borrowings (provider, outstanding amount, monthly repayment)
Has this organization defaulted on any loans in the past 7 years?
Do you have any existing loan applications with any other finance providers?
Please upload any further information that could support the application e.g. Grant Letter
–>Click here to download a PDF version of the application.
LENDonate’s mission is to create a dynamic market that allows capital to flow more freely in the nonprofit sector. We harness the power of nonprofit networks – a desire to contribute to social good – onto one single platform. This platform facilitates desired philanthropic actions, from offering grants and donations to making market-rate capital accessible to qualified projects.
See Borrowers FAQ for more details.
