MemberAugust 11, 2023 at 4:41 pm
That’s a hard path to take. The risk for this option depends a lot on how well developed the plan is to start to generate revenue, either through contributed or earned income, and whether there is enough capacity and commitment to implement that plan. If the organization would be starting from scratch to try to build up more revenue, there’s a lot of pressure on the new executive director to raise money to pay the loan rather than to achieve the organization’s goals. Propel Nonprofits has a loan fund for nonprofits and our team would have a lot of questions with a request like this. It would be more likely to have a loan later in the organization’s life cycle to grow programs or to add to a development team that had some traction.