The Clark Foundation has allocated $2 million from its endowment to the Nonprofit Finance Fund (NFF) to establish a working capital loan fund for its grantee partners.
The Foundation has partnered with NFF, through a program-related investment (PRI), to establish this new working capital loan fund.The Clark Foundation supports nonprofit organizations that help people out of poverty and lead independent lives in New York City. The Foundation also supports an array of educational, medical and cultural programs and organizations in and around Cooperstown, NY.
This program-related investment is notable because it comes from the Foundation’s endowment, not funds traditionally reserved for grantmaking. As the nonprofit sector continues to struggle amid economic uncertainty, leveraging foundations’ dollars from their endowments could substantively increase the availability and impact of philanthropic dollars.
According to Jane Forbes Clark, President of The Clark Foundation, “The Directors of the Foundation wanted to respond to an issue that is seriously affecting nonprofits during these uncertain economic times.”
Doug Bauer, Executive Director of the Foundation, explained that there is an increased need for working capital due to the long gaps between when a nonprofit provider delivers services and when it gets reimbursed, mostly from government contracts.
“The creation of this working capital loan fund can help alleviate the operational strain that many of our grantees are facing. They are attempting to meet an increased demand for their services while watching cash flow slow to a trickle due to delayed payments. Providing a loan from our endowment makes sense, as it allows us to make an immediate positive impact on our grantees while preserving our core assets for continued philanthropic use,” Mr. Bauer said.
NFF will begin making loans to The Clark Foundation’s grantees during summer 2010.
For further information, please visit www.nonprofitfinancefund.org