5 Reasons Why Nonprofits Should Consider More Than Interest Rates When Evaluating Loan Options

This blog post from IFF examines what nonprofit organizations should keep in mind as they ponder taking on debt:

“To be clear, if all other terms are equal, then a lower interest rate is almost certainly the way to go. But terms can vary widely and require a deeper analysis to understand. Simply choosing the loan option with the lowest interest rate may result in less obvious costs outweighing the benefits of the low rate.  Understanding what these costs are is essential to making the best borrowing decision.”

The 5 Key Elements

  1. Appraisals and Loan-to-Value Ratio
  2. Fees and Expenses
  3. Financial Covenants
  4. Amortization Schedule
  5. Loan Term

Read the post and get the full context.

On October 8, 2025, Join Us for a National Town Hall on the Financial State of the Nonprofit Sector

Nonprofit GPS is a new, action-based community designed to help nonprofits navigate today’s disrupted revenue landscape. Built in consultation with organizations nationwide, it focuses on the real financial challenges nonprofits face — business model risks, capital management, budgeting, governance, and more. Together, we’ll share practical strategies and highlight bright spots of practice that strengthen missions, even in the most disruptive times.

At this event you will hear: an analysis of the current economic landscape for nonprofits and the implications for practice; what array of critical new resources will be offered by Nonprofit GPS over the next three months and beyond; and how to become involved as a practice leader in this community.

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