Financing the development, acquisition, expansion, or renovation of a building or community facility can be a complex and daunting project. Most real estate projects require multiple sources of funding – usually a combination of equity (organization cash and grants) and debt (loan funds).
Often the capital campaign strategy is the first financing option identified and naturally the prospect of raising the needed funds from individual, corporate and foundation donations is an attractive strategy. The reality, however, is that in many instances capital campaigns cannot produce all the funds needed and in the time frame required for a project to proceed.
Below you will find a variety of additional resources available to Colorado nonprofit organizations. Each source has particular eligibility requirements and application processes.
Colorado Housing and Finance Authority (CHFA)
CHFA provides a long term, fixed interest rate combined with a low down payment requirement, creating the opportunity for nonprofits to acquire real estate. Eligible 501(c)3 entities may also qualify for tax exempt financing at below market fixed rates.
Colorado Education and Cultural Faculties Authority (CECFA)
CECFA provides bond financing for educational institutions and cultural entities. A broad range of facilities can be financed and bond proceeds may be used to acquire, construct, reconstruct, repair, alter, improve, extend, own, lease, and dispose of properties and to refinance outstanding obligations.
USDA Rural Development
Loans, loan guarantees, and grants to nonprofit organizations; tribes, and public entities for community facilities in unincorporated rural areas, cities, and towns with populations less than 20,000. Grants and loans can be used to build facilities and purchase equipment for projects such as health clinics, shelters, public buildings, museums, community centers, transportation facilities, animal shelters, etc.
U.S. Department of Housing and Urban Development
Community Development Block Grants are one of a variety of programs that provide assistance to local communities either by entitlement to local governments or through the State Department of Local Affairs to smaller communities. Programs funded develop viable community by providing decent housing and a suitable living environment, and by expanding economic opportunities principally for low to moderate income persons.
State Historical Fund
Funds distributed competitively for restoration and preservation of building to be used for public benefit.
Foundations
Various local, regional and national foundations make grants for nonprofit facilities projects. The 2007-08 Colorado Grants Guide is a comprehensive resource guide that contains more than 400 profiles of local foundations and trusts, corporations, national funders, government agencies and religious organizations. The Guide is a good starting point to identify eligibility criteria and funding preferences of these sources.
Gates Family Foundation - Facility Expansion and Renovation Guide
A recently updated version of the original Gates Family Foundation web-based guide that provides nonprofits with a step-by-step approach to planning for facility expansion and capital campaigns.
Illinois Facilities Fund
Site offers a helpful template for real estate development projects
Chicago Artists Resource
A comprehensive source of information for nonprofit and for-profit arts organizations including business and development topics.
www.chicagoartistsresource.org
Architectural Heritage Center
A nonprofit resource center and showcase for historic preservation that offers a wide range of programs to help people and organizations restore vintage properties.
Rural Assistance Center
A product of the U.S. Department of Health and Human Services’ Rural Initiative, the Rural Assistance Center (RAC) was established in December 2002 as a rural health and human services "information portal." RAC helps rural communities and other rural stakeholders access the full range of available programs, funding, and research that can enable them to provide quality health and human services to rural residents.