May 1, 2025
Let’s transform how investors mobilize capital for the public good
Recent executive actions have created marked funding challenges for many nonprofits and unsettling volatility for investors. LENDonate’s unique position at the intersection of these two communities has enabled us to join numerous conversations with leaders across nonprofit, philanthropic, and investment organizations.
Our take: we see tremendous opportunity to harness private investment capital to drive impactful and lasting change in the nonprofit funding ecosystem while creating attractive and meaningful ROI for investors. Will you join us?
The funding environment is recalibrating
Cuts to federal grant programs have created funding challenges for many nonprofits, including some that work with LENDonate. The impact of these cuts has not fully played out: while some nonprofits are waiting on delayed reimbursements for work they have already completed, others have seen their grant revoked before work has been started.
With so much news around disruptions in the federal grant program, it is critical to remember that many strong nonprofits have revenue models that are less or not at all reliant on federal grants and that these organizations still require investment capital to:
* Bridge to secured funding (eg, bridge to bond, local/state government grant, private grant, or pledged donations)
* Purchase real estate or other capital equipment
* Catalyze growth
LENDonate’s High Impact Private Credit enables these nonprofits to secure loan financing and complete critical work in our communities.
Whether you are an individual investor, a financial advisor, or a foundation, there are opportunities for you to create impact with investment dollars and programs. Will you join us by investing in the world we want to live in?
How to be the solution
1. For accredited investors and advisors:
Consider investing in a nonprofit. Your dollars provide much needed capital that amplifies the work that changemakers do in our communities. Nonprofits featured on LENDonate’s marketplace with a LENDonate risk rating have passed our rigorous underwriting process. Since these executive actions, we have taken additional steps to evaluate any federal grants that may be at risk.
2. For foundations:
Many foundations are looking for innovative ways to fund new monies to their nonprofits. What if there was a way to amplify your foundation’s social ROI with investment in addition to grant dollars? Investing in LENDonate’s High Impact Private Credit enables your foundation to orient investment programs, whether it’s MRI or PRI, with existing grant/spending policies and amplify the impact you make to your nonprofits.
Some ways to partner your foundation’s investment program with LENDonate:
For Mission Related Investments (MRI): Provide market rate “patient capital.” Some nonprofits need flexibility in their repayment plans that traditional lenders are unable to offer. This may be due to delays in grant receivables or other factors beyond the nonprofit’s control. Patient capital allows LENDonate to extend the life of the loan when necessary so nonprofits can continue to provide critical services to their communities. Once the loan is repaid, proceeds can be upcycled into another nonprofit.
For Program Related Investments (PRI): Offer concessionary rate loans or provide loan guarantees. Concessionary rates bring the cost of borrowing down and make more affordable capital available to nonprofits. Loan guarantees make a loan more financially attractive to investors on LENDonate’s platform, increasing loan participation. Together, we can increase the availability of affordable capital to nonprofits.
Our vision at LENDonate is to transform how investors mobilize capital for the public good. While the current environment is challenging, it is a perfect opportunity to create lasting change that strengthens our communities. We believe we can work together to find innovative solutions that amplify the impact that changemakers – nonprofits, investors, foundations, and others – make in our community.
We are open to additional suggestions, solutions and strategies that can help nonprofit borrowers emerge this environment stronger. My virtual door remains open. Let’s innovate together and amplify your work.
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