Non-Profits

Access to capital is often the greatest hindrance to growth for non-profits.  If your non-profit is looking to finance a facility or equipment, you may have access to the low-interest rates found with tax-exempt bonds.

You can use tax-exempt bond proceeds to fund the cost of acquiring or constructing capital assets, interest during construction, and other costs of issuance.

Eligible Projects

• Educational Institutions including Charter Schools
• Community Centers
• Senior Living Facilities
• Healthcare Facilities
• Any Facility used for activities related to the 501(c)(3) organization’s exempt purpose

Criteria for a 501(c)(3) non-profit to use tax-exempt bonds

• 100% of the project financed must be owned by IRC Section 501(c)(3) organization or the government.
• The bond proceeds must be used for activities related to a 501(c)(3) organization’s exempt purpose.
• No more than 5% of the net proceeds may be used for private trade or business.
• No prohibitied facilities (skybox, retail liquor, gambling, etc.)
• Read more about the general rules of non-profit eligibility