Charity Bank issues a guide for charities on borrowing money

first_img AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis Tagged with: Finance Law / policy About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving. Charity Bank issues a guide for charities on borrowing money Howard Lake | 7 November 2013 | News When is a loan a good choice for a charity or social enterprise? While fear of debt, especially in the current financial climate, is sensible, the right kind of loan can help organisations thrive.Charity Bank has issued a Guide to Borrowing for Charity Trustees to help them decide if a loan could be right for their charity or one of its projects. It has been published in blog format by Charity Bank’s Head of Banking, Carolyn Sims. It appears on the National Council for Voluntary Organisations’ (NCVO) website and also on Charity Bank’s own site.Sims said: “Loans can help organisations become more sustainable – for example, by enabling them to acquire a property rather than paying rent. But charity loans are not right for all projects or all organisations, so trustees need to understand what loan finance can offer to determine if it is a suitable option for their charity.”The guide describes five main benefits of loans over grants:1. Fewer restrictions2. Non-competitive3. Money when you need it4. A relationship with financial experts5. Cash flowThe guide then describes what lenders look for in potential borrowers.As well as ensuring that an organisation can pay the loan back, Sims explains that lenders will look at the charity’s governance, including whether its trustees and staff have a suitable skill set that includes the key business areas of finance and law.She added: “Where social lenders, like Charity Bank, differ from commercial banks is the attention paid to social impact. If you can illustrate and provide tangible examples that your organisation is delivering social good, they will be much more willing to provide you with a loan”.Photo: IOU in a piggy bank by Brian A Jackson on Shutterstock.com  24 total views,  1 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThislast_img

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