10.17.2007

Revolving Credit for Non-Profits

This article is now over two weeks old, which gives you an indication
of how far behind I am in my reading and blogging, so bear with me.
But it is still worth chiming in on, well after the fact. A college
professor of mine is the mastermind behind an ingenuous mechanism to
provide non-profits with the same sort of revolving credit access for
capital expenditures that large corporations routinely use to manage
their cash:

http://www.philly.com/philly/business/homepage/20071002_PIDC_to_offer_low-cost_loans_to_nonprofits.html

Better yet, participating non-profits benefit in two ways by borrowing
through this vehicle. First, they get the tax-exempt rate PIDC has
access to. Second, they get an even better rate because the bond
issue that generates this money is backed by Citizens Bank and its AAA
credit rating. Good work by my old college prof, and good news for
local non-profits in their cash management.

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