Lending FAQs

Who can be a lender?

Currently, Lenders are a private group of accredited investors in California.

Do I have to make a donation in order to be a lender?

No. Pure lenders are equally welcome.

Will people find out how much I lend or donate, or to which organization?

No. Lender’s identity is not revealed on our site, nor disclosed to our borrowers. Lenders have a user ID to keep them anonymous during bidding.

What happens if I choose to convert all or part of my loan to donation, i.e. use the “convert to donation” option?

The nonprofit borrower will receive notification that a portion of their loan will no longer require repayment. LENDonate will provide you year-end statements to capture donations and interest income separately.

Is there a fee to convert loan to donation?

No. We do not charge you for that kind gesture, nor do we charge the nonprofit. Encouraging philanthropy is part of what we do!

If the borrower makes only a partial payment, which lender gets it first?

Unless otherwise noted, lenders have the same seniority on our loans, i.e. institutions and individuals receive their pro-rata portion at the same time.

What is “Priority Ranking” during bidding?

It is a single expression of the attractiveness of each bid. Generally speaking, donations are more attractive than loans, and lower interest rate offers are more attractive than higher ones. To get comfortable with Priority Ranking, before you submit any offers, vary your offer on the bidding page and watch the Priority Ranking dynamically change.

What happens if I get outbid during the campaign period?

If you are outbid, you will receive an email notification, and the hold on your funds will be released. To re-bid, follow the link in that email, or simply login, and go to “My Bids” from the short-cut menu. To re-bid, submit a new offer with a Priority Ranking that is higher than the lowest accepted bids. See “What is Priority Ranking” question above for more information.

How do I design an appropriate loan+donation package to be successful in the bidding process?

The appropriate split will vary for each user and will be driven by his or her overall investment goals and charitable giving targets. All else being equal, a funding package that has a higher donation-to-loan ratio will outrank a package with a lower ratio and will be more likely to be accepted in an oversubscribed situation. The higher the “priority ranking”, the more likely the bid will succeed.

Can I submit more than one bid per campaign?

Yes, you can submit multiple bids, each with its own terms. If a loan is oversubscribed, LENDonate’s process will evaluate the attractiveness of each bid separately and compared to the full array of bids submitted by all lenders in order to determine which bids are accepted.

What is the maximum interest rate I can require in my bid?

The maximum interest rate you can require is the ceiling interest rate assigned by LENDonate to each loan campaign based on the underwriting process.

Can I automate my bidding?

Not yet, but we are working on it. If you have automation suggestions, we’d love to hear it! Please email us at feedback@lendonate.com.