Nonprofit Funding

Nonprofit Funding - Kendrick Daniel March 22, 2010 When...

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Kendrick Daniel March 22, 2010 When starting a nonprofit organization, the three general sources of funding for the organization are fundraising, government/foundation grants, and donations. These sources of funding encompass an array of different programs and services offered by the general public and private organizations. Two specific examples are tax- exempt financing and program related investments. Nonprofit organizations are exempt from taxes due to the fact that they relieve some burden that would otherwise fall to federal, state, and local government. Due to the fact that nonprofits are tax exempt, many opportunities exist to borrow at lower interest rates through bond issues, but a variety of restrictions apply to such financing. For instance, in order to borrow on a tax-exempt basis the nonprofit must involve a state or local government unit in the process. Although many restrictions exist, the use of tax-exempt financing is very valuable if done carefully with careful thought and analysis. Program-related investments (PRI) are another source of funding for a non-profit. A program-related
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This note was uploaded on 11/27/2011 for the course BUS 431 taught by Professor Roberts during the Spring '10 term at Emory.

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Nonprofit Funding - Kendrick Daniel March 22, 2010 When...

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