Many people don’t realize that non-profit organizations can run into financial trouble. Like for-profit businesses, nonprofits are up against serious obstacles when it comes to funding especially when with operating costs like making payroll. This can be a serious struggle when a nonprofit runs into financial trouble.
Nonprofits typically spend their money on noble causes which is something they can be proud of. Unfortunately, this may come at the expense of employees not getting paid and other expenses being overlooked (note: it is actually to delay paying your employees on time). When this happens, you need to be able to find funding to cover payroll and other basic operational expenses.
Fortunately, there are several options for nonprofits that have run into a financial brick wall. Here are some places you can go when donations and other emergency fundraising just won’t cut it.
Fast Emergency Grants
Some institutions offer financial assistance for struggling nonprofits in the form of emergency grants. These organizations understand that rainy-day funds aren’t always an option for nonprofits. Open Road Alliance is a great example. Their grant program for nonprofits has provided millions of dollars in funding since it started in 2012.
There are other emergencies nonprofit business grant or loan providers out there that typically offer rates lower than those in the general market. Emergency funding options for non-profits are also much safer than those offered to businesses. For example, none of Open Road Alliance’s partners have gone bankrupt so far in spite of the fact that some of them were close to bankruptcy before reaching out. In all, Open Road Alliance has provided over $13 million in emergency relief to various nonprofits around the world.
When looking for an emergency grant program, do your due diligence. If you’re dealing with a dedicated nonprofit emergency grants program, there shouldn’t be any strings attached. Open Road Alliance and United Way are large, reputable organizations where you can start looking. You can also search for other community-based organizations.
If your nonprofit is in a large city, there may be local agencies or organizations that can help. When these organizations are available, they are great resources for finding the right grant opportunities. The only issue is that it may be difficult to find an organization willing to work with a nonprofit that’s in serious financial trouble. Be honest about your nonprofit’s financial situation. Local agencies can only help you if they know where your nonprofit stands. There’s a great chance that they might find an emergency grant provider for you so seeking their help is worth the effort.
You can also reach out to other local, regional, or federal directories to see if you are eligible for other assistance programs. Not all of these directories are free to use, though even those that charge for their services can connect you to another directory if your nonprofit is truly in trouble. Once you’ve found the appropriate information, you can look for funders that match the urgency of your situation.
Nonprofit Credit Options
Credit options are typically only good for well-to-do individuals and businesses but nonprofits have options, too. In fact, there are providers that specifically offer credit options to nonprofits.
It may seem counterintuitive to look for credit options when you’re already in financial trouble, however, some organizations offer emergency credit to nonprofits very quickly, in as little as 24-48 hours. As is the case with nonprofit emergency grant providers, lenders serving nonprofits offer better terms. There are a few really good deals out there that not only solve your current problems but can also provide you with a financial cushion going forward.
The best example of this is Financing Solutions, a leading provider of business loans for nonprofits in the form of a 501c3/not-for-profit line of credit. They specialize in assisting nonprofit organizations and have provided many with emergency lines of credit put in place within 24-72 hours. This helps with immediate financial problems while also providing a backup credit option going forward. Because they specialize in serving nonprofits, Financing Solutions understands that cash emergencies are often just a blip on the screen.
The best part about Financing Solutions is that they send you a fast, free, no-obligation offer after you fill an online application. The application only takes a few minutes to complete. Then, if you decide to move forward, a relationship manager goes over the terms with you and makes sure everything is crystal clear.
Lastly, a Financing Solutions nonprofit line of credit costs nothing to set up and you pay nothing when it’s not being used. So, even if you are not in an emergency situation, it’s a good idea to get your line of credit in place now, just in case.
The Best Emergency Funding Comes From Preventative Action
Once you’ve gotten through your current financial difficulties, it’s important to be proactive for those in the future. The best way to do this is to have the credit you need already on hand. This makes a Financing Solutions line of credit even more useful.
Regardless of how your nonprofit’s finances look after coming out of a financial emergency, you should secure the credit you need in advance. Nonprofits that serve communities deserve better than having to panic and seek emergency funding. It’s always worth looking for a fair provider of emergency credit for when you need one in the future.
