Nonprofits Assistance Fund
www.nonprofitsassistancefund.org
Background and Purpose
Nonprofits Assistance Fund (NAF) was incorporated as an independent nonprofit in 1998 to administer loan funds previously operated as programs of The Minneapolis Foundation. NAF's mission is to foster community development and vitality by building financially healthy nonprofit organizations. Underlying this mission is the belief that financially healthy nonprofit organizations play a vital role in stabilizing and anchoring the communities they serve.
Nonprofits Assistance Fund is the only organization in the state with the express purpose of improving nonprofit organizations' financial health. NAF supports nonprofits through transformational lending and by encouraging healthy financial practices and providing strategic financial guidance. They offer training workshops on topics such as Managing Cash Flow, Financial Management Fundamentals, and Understanding Nonprofit Financial Reports. The workshops are affordable, half-day sessions that walk participants through the material in everyday English, using real world examples, to develop and hone financial management skills.
In 2007, NAF hosted 51 workshops with total attendance of 1,173 nonprofit managers, staff and board members. NAF also offers specialized training programs to deliver customized, affordable, and relevant financial training to nonprofit boards of directors during on-site, one-hour sessions and provides technical assistance to client organizations to meet their specific needs. The most frequent need of nonprofits is assistance in understanding their financial situation and identifying key issues and financial priorities. NAF also hosts free monthly networking luncheons and discussions to encourage communication between nonprofits facing similar financial issues.
NAF manages a loan portfolio as one part of a strategic financial collaboration for the stabilization, growth and transformation of the nonprofit. The loan fund has $11 million in capital available for lending, comprised of grants and investment from Minnesota banks and foundations, as well as program related investments from local and national social investors. Loans are used for program and service growth, short-term cash flow needs, debt consolidation, capital improvements and working capital.
NAF serves nonprofit clients throughout the state with approximately 30% of their clients located in the East Metro. They have seven full-time and two part-time staff and are governed by a nine member board of directors.
Current Request
NAF is seeking support to increase their service activity in the East Metro area. The three-year strategic plan adopted in 2006 identified four goals, including expanding impact of lending and programmatic activities in a broader community. While services are available throughout the state, NAF has not had staff capacity to specifically increase their East Metro presence.