In response to the COVID-19 crisis, LENDonate is introducing a new loan program for impacted nonprofits.
These $25,000 to $100,000 6-month interest-only loans will be made available to nonprofits that are at risk of deep and permanent cuts to program services if capital is not received immediately.
These loans are targeted specifically to established nonprofits who might not otherwise qualify for loans with affordable interest rates. This Program enhances the creditworthiness of those organizations by asking its lead supporters to sponsor the loan.
LENDonate’s mission is to create a new market that allows capital to flow more freely in the non-profit sector. Through an extensive network of investors and non-profit organizations, LENDonate seeks to develop a dynamic, expressive marketplace that connects affordable capital with impactful projects in the non-profit sector.
LENDonate’s vision is to harness the power of nonprofit networks — a desire to contribute to social good — onto one single platform. This platform facilitates their desired philanthropic actions, from offering grants and donations to making market-rate capital accessible to qualified projects.
The integral role that LENDonate plays is:
Encourage collaboration to improve funding efficiency
Facilitate information disclosures through the underwriting process such that investors may assess each investment’s quality to select its desired financial and social ROI
Service all financial transactions and communication, including any debt collections, such that LENDonate becomes a trusted clearinghouse for all nonprofit financial transactions
I saw a need in the nonprofit sector for innovative ways to meet funding needs. I also saw growing interest among financially-minded colleagues to make socially conscious investments of their funds.
Here is how it works – Nonprofits and Lenders come together through LENDonate:
Nonprofit borrowers apply and share their stories.
Details: Borrowers must be 501(c)(3) organizations in good standing with a minimum of 3 years in operation. Organizations with at least $1m annual revenue or $1m net assets will have a better chance of qualifying for a loan.
LENDonate, assesses each borrower’s creditworthiness and assigns an appropriate interest rate (ceiling rate) to qualified loan requests on the Marketplace. Through a bidding process, the Marketplace prioritizes lender offers that are more favorable to the borrowers. Offers may include loan bids at the ceiling rate or at a lender-reduced rate, a pure donation, or loan+donation.
During the life of the loan, LENDonate services the loan by attributing monthly repayments back to each lender and by providing key metrics to each user on the user’s dashboard. LENDonate also facilities a lender-initiated loan-to-donation conversion at no cost, such that 100% of converted funds go to the nonprofit borrower.
With repayments back in Lenders accounts, they can recycle the funds to other worthy causes!
Result: Everybody comes out ahead. Nonprofits receive much-needed funding for critical campaigns from a wider community of supporters. Lenders select from a broader set of investment opportunities supporting worthy causes. LENDonate is the next generation impact investment.
Inspired by the famous Starfish Story, adapted from the original by Loren Eiseley, our logo symbolizes our collective desire to do better where each effort matters.
One day a man was walking along the beach, when he noticed a boy hurriedly picking up and gently throwing things into the ocean. Approaching the boy, he asked, “Young man, what are you doing?” The boy replied, “Throwing starfish back into the ocean. The surf is up and the tide is going out. If I don’t throw them back, they’ll die.” The man laughed to himself and said, “Don’t you realize there are miles and miles of beach and hundreds of starfish? You can’t make any difference!” After listening politely, the boy bent down, picked up another starfish, and threw it into the surf. He smiled and said, “I made a difference to that one.
Whether we are volunteers or nonprofit program staff, a donor or social lender, we can make a difference. We can, and we are.
