Debt: The Underappreciated Finance Tool

Debt: The Underappreciated Finance Tool

finance February 9, 2015 By: Ted Berry

Nonprofit associations don't have all the same options for raising capital available to them that for-profit organizations do. In some cases, debt tools such as loans and credit lines may be effective ways to meet the need for extra funds. Here are four scenarios in which debt could be a useful finance tool for a nonprofit.

Because of their tax status, most nonprofits do not consider debt as a funding resource. However, through our work with associations and other nonprofit organizations, we believe there may be circumstances where using debt makes sense. ...