CRF in the news
June 29, 2010
By Frank Altman
The current recession has caught many non-profit organizations between a rock and a hard place: need for their services is rising, while their reserves, funding and financing are drying up.
A 2009 survey found that 75 percent of these mission-driven organizations expect an increase in demand for their services. At the same time, 62 expect a decrease in foundation revenue while 43 percent expect cuts in government revenue. Only 12 percent expect to operate above break-even.
Without financing in both good and especially during bad times, these community-centric organizations simply can't keep their doors open and continue serving their constituents.
Non-profits face one additional hurdle. They can't get financing from the Small Business Administration because the SBA only finances for-profit companies. CRF has provided funding for various nonprofits and community facilities since our inception.
For example, we helped out when Plymouth Christian Youth Center (PCYC) needed a loan, but was turned down by their bank and couldn't qualify for a SBA loan.
A non-profit organization dedicated to enriching the skills, prospects, and spirit of N. Minneapolis area youth and adults, PCYC has been a cornerstone of safety and support in a community with a 37 percent poverty rate and an unemployment rate that's nearly three times higher than the national average.
Working together with the Twin Cities Community Capital Fund, CRF provided a $1.5 million loan that gave PCYC the short-term working capital it needed to continue serving its community. In short, this financing helped PCYC to "be there" for more than 6,000 young people who are learning, growing and overcoming significant barriers in life, thanks to PCYC's caring staff and volunteers.
*Survey included 1,100 non-profits, conducted by the Nonprofit Finance Fund
Posted by: CRFUSA