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Busting the Overhead Myth

NonProfit Leadership Alliance

How can nonprofits convince stakeholders to invest in capacity building? Capacity building is whatever is needed to bring a nonprofit to the next level of operational, programmatic, financial, or organizational maturity, so it may more effectively and efficiently advance its mission into the future. What is the Overhead Myth?

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How Nonprofits Can Leverage Their Financial Relationships to Advance Justice

NonProfit Quarterly

Image credit: Getty Images on Unsplash Consider a food bank discovering that its operating reserves are in banks that finance industrial agriculture, the very system contributing to food insecurity and displacing small community farms. How can nonprofits and movement groups convert community desires into meaningful financial action?

Finance 107
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How to Align Assets with Mission: Small Steps That Nonprofits Can Take

NonProfit Quarterly

Many in the nonprofit sector look at their income statements (also known as the “profit and loss” report), but unless you’re a chief financial officer or perform a similar role, you may spend far less time looking at your organization’s overall financial position. These assets help nonprofits deliver on their missions by generating income.

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How Limited Equity Co-ops Can Sustain Affordable Homeownership

NonProfit Quarterly

One tool that is available to nonprofit housing developers to address this situation is the limited equity cooperative (LEC). The Launch of Limited Equity Cooperatives The LEC is a tool developed to extend access to homeownership to low- and moderate-income buyers. By contrast, in market-rate co-ops, the sale price is uncapped.

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A Social Movement Requires Momentum

Stanford Social Innovation Review

By Lisa Nutter & Tim Freudlich The simple physics equation, momentum = mass x velocity, tells us that momentum is a value we can control. This could extend to investment in earlier-stage private companies and funds, as well as loans to nonprofit small businesses and affordable housing development.

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Impact Investing Can’t Deliver by Chasing Market Returns

Stanford Social Innovation Review

Most practitioners working in community development have accepted this as the reality of impact investing: The harder you drive for social impact in disadvantaged communities, the farther away you get from unbuffered full market return.

Marketing 121
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Industry Founders Challenge CDFIs to Embrace a More Expansive Vision

NonProfit Quarterly

Image credit: Drew Beamer on Unsplash For community development financial institutions (CDFIs), these are extraordinary times. One was the rise of nonprofits within the CDFI sector. An overwhelming majority of CDFIs today, however, are nonprofits. And it would include a large technical assistance component. That’s true.