Sponsoring FAQs

What does it mean to be a sponsor?

Being a sponsor means you provide a higher level of support in the form of a guarantee/collateral to ensure the nonprofit qualifies for a loan at an affordable interest rate. A private individual (such as a Board member or nonprofit leadership), or foundation can be a sponsor in one of two ways by providing collateral to back the loans or personal guarantee.

The Solidarity Loan provides a new way to sponsor a loan: guarantors can lend to at least 50% of the loan amount as subordinate debtors.

What types of collateral can I post?

Cash or CD, as well as tradeable securities such as bonds, mutual funds, ETFs, etc.

When will the collateral be released?

When the nonprofit fully repays the loan at maturity, LENDonate will release its hold and the Sponsor may reclaim the collateral.

Where is my collateral held?

You do not need to transfer assets. LENDonate will provide the paperwork; assets will remain under the guarantor’s name.

Can anyone post collateral on a loan?

Only people with knowledge of the borrower’s financials may post collateral. This may include board members and the organization’s leadership team, such as Founder, CEO, CFO, Treasurer, or Executive Director.

Which nonprofits should get a sponsor?

Any organization that does not initially qualify for a loan, or want to dramatically improve borrowing rate may find that securing a sponsor is a great solution for their project.

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