Funding for Charities & Non-Profits
Financing Deferred Contributions of Investment Grade Assets: Charities, non-profit organizations, and other philanthropic enterprises frequently receive deferred contributions from their supporters.
Welcome though these contributions are, the charity must wait patiently until all payments are made by the donor.
We help charities and non-profits manage their cash flow by providing the present value of these deferred contributions in cash upfront, with the full discretion over the use of those funds for immediate needs.
This also enables the charity to solicit multi-year commitments from investment grade sources, confident in the knowledge that the organization will have access to funds immediately, even though donations will be made over time, regardless of subsequent events that may affect the donor’s ability to honor a commitment.
These financings are private placements with single large sources of institutional capital, and these transactions remain totally confidential and private.
- “Tax Exempt” loans for Not-for-profits and Social Service agencies
- We work on a case-by-case basis, because some Not for Profits have generous service providers who work on a pro-bono basis. For the typical Not for Profit, we customarily provide the following services:
- We will obtain the Inducement Resolution. We attempt to deal with the issuer that can act the quickest at the lowest cost. At some point, availability of volume cap may be an issue, and, if there are political difficulties, we have been able to avoid them;
- We will assemble the entire “team,” including Bond Counsel, Investment Banker, other counsel, etc. – the value of professionals who have already worked together cannot be overstated. This allows us to adhere to a strict time schedule, and, much more important to our client, keeps third party fees in line;
- When unforeseeable problems occur as they always seem to, it is our task to see that they are solved;
- At closing, we understand how to allocate costs so that the largest possible amount can be included in the tax-exempt loan; and
- If there are substantial “bad” costs or other items that cannot be included in the tax-exempt loan, we work to create a taxable “tail” and how to coordinate the amortizations.
- Since many borrowers cannot tell their story in “lender language,” we might be able to help highlight certain strong points.