Lenders are accredited investors who invest in nonprofits vetted by LENDonate. Our Marketplace is uniquely designed to allow lenders to customize fixed income investments based on their goals and priorities.
Investment Diversification
Positive Social Outcomes
Borrower Transparency
Lenders are accredited investors who invest in nonprofits vetted by LENDonate. Many are self-directed investors while some are represented by their advisors. Some lenders are seeking a rate of return from market-rate investing while others prioritize positive social outcomes – focusing on how their investments enable social projects to become reality. Many lenders, however, want to achieve both, the double bottom line investor.
LENDonate’s Marketplace is uniquely designed for all lenders because each lender can customize their own investments.
As a lender with LENDonate, you can base your investment on a variety of categories such as risk rating, investment horizon, and/or social cause. Your investment can also include a donation.
By investing, you provide access to capital that helps nonprofits with strategic growth, real estate purchases and/or remodels, bridge financing, and much more. Our Success Stories tell you about the impact our lenders have made in the nonprofit community.
All it costs to be a lender is a $99 annual flat fee.
Our lenders are individual investors, institutional investors, and philanthropists.
We also work with wealth advisors, philanthropic consultants, and donor-advised funds to help their clients achieve double bottom-line returns.
We believe in transparency in this collaborative network and view the nonprofit borrowers as conscientious borrowers. To date, we have experienced no defaults. Of course, past performance is no guarantee of future results. To understand the credit quality of our investments, review the LENDonate Risk Definition Table below.
| Risk Rating | Definition |
|---|---|
|
Gold |
This loan rating denotes high credit quality. A Gold rating generally means the borrower either has excess demonstrable cash flow and liquidity to support the size of the loan, or the loan is fully secured by strong collateral, or both. LENDonate’s ceiling rate for loans in this category is no more than the U.S. Prime Rate plus 1.5%. |
|
Silver |
This loan rating denotes stable credit quality. A Silver rating generally means the borrower either has adequate demonstrable cash flow and liquidity to support the size of the loan, or the loan is secured by documented expected earned income, such as accounts receivable. The loan may also be partially secured by pledged assets. LENDonate’s ceiling rate for loans in this category is no more than the U.S. Prime Rate plus 4%. |
|
Bronze |
This loan rating denotes acceptable credit quality. A Bronze rating generally means the borrower either has acceptable but less dependable cash flow and liquidity to support the size of the loan, or has documented expected revenue, such as service contracts or grant receivables. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. The loan may also be partially secured by pledged assets. LENDonate’s ceiling rate in this category is no more than the U.S. Prime Rate plus 6%. |
|
Starfish |
This loan rating denotes a nonstandard credit quality that is not quantifiable by traditional credit models. The significance of this rating is that each loan is unique and requires careful review of underlying investment risk by the investor.
A Starfish rating generally means the borrower does not possess the requirements for the Gold, Silver or Bronze ratings, but has mitigating factors worthy of consideration. These factors may include the loan’s significant impact to the nonprofit or social cause, the operational success being dependent on program outcome, and/or the uncertainty of timing and size of expected cash inflows.
For details pertaining to a particular Starfish rated loan, please review the document “Starfish Commentary.pdf” under the Financials tab. |
Visit our FAQ page, email us at support@lendonate.com or call us at 650-530-0771.
