Clark Foundation Awards $2 Million to Nonprofit Finance Fund to Support Struggling New York City Nonprofits
Clark Foundation Awards $2 Million to Nonprofit Finance Fund to Support Struggling New York City Nonprofits
The Nonprofit Finance Fund has announced a $2 million program-related investment from the New York City-based Clark Foundation to establish a working capital loan fund for grantees of the foundation that are struggling financially.
Starting this summer, NFF will make an additional $4 million available to Clark Foundation grantees and administer the loans. The foundation expects to realize a modest return on its investment in the fund similar to other conservative investment strategies, while providing new access to needed capital for grantees delivering vital services to New York City communities.
The PRI is notable because it comes from the foundation's endowment rather than funds traditionally reserved for grantmaking. As the nonprofit sector continues to struggle amid economic uncertainty, leveraging foundation endowment funds could substantively increase the availability and impact of philanthropic dollars, said NFF president and CEO Clara Miller.
"The creation of this working capital loan fund can help alleviate the operational strain that many of our grantees are facing," added Clark Foundation executive director Doug Bauer. "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."
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