FJC Philanthropic Capital Solutions

Nonprofits are businesses with unique needs. Sometimes grants are what’s necessary. Other times, it’s loan capital or equity-like investments.

We are nonprofit practitioners that recognize that the public problems nonprofits are addressing are complex. Resources are limited. We see finance as a tool to help philanthropic dollars stretch, recycle, go further, and have maximum impact.

FJC works with imaginative donors and foundations that want to braid their philanthropic capital with our expertise to advance the work of best-in-class nonprofits. We work at the intersection of nonprofits, philanthropy, financial services, applying the tools of private equity and private credit to the nonprofit context.

Products

FJC’s Agency Loan Fund

Nonprofit Loans (Market Rate)

Know a nonprofit that has a bridge financing need to manage cash flow or acquire a property? Our Agency Loan Fund has a ready source of capital to make bridge loans at a market rate of interest to nonprofits that credit qualify.

FJC has a fiduciary duty to donors that provide capital to the Agency Loan Fund pool, so we underwrite loans to rigorous credit standards, and our loans carry a market rate interest rate (Prime +3%). FJC typically does not charge closing fees or legal fees. There are no prepayment penalties.

Agency Loan Fund loans are nearly always secured by collateral, which could take the form of a property mortgage (if available),proceeds from public sector grants or contracts, or other assets. Depending on the quality of the collateral, FJC may request guarantees from affiliated entities or individuals (like Board Members).

Case Study: Acquisition loan helps a nonprofit put down roots in Brooklyn
Case Study: Loan helps a dance company take flight
Case Study: Bridge loan maintains legal defense of low-income New Yorkers

Brochure: FJC’s Agency Loan Fund

Our Collaboration with Imaginative Donors

Nonprofit Loans (Concessionary)

Does your favorite nonprofit need a loan that carries a below-market rate of interest? Would their collateral or financial situation qualify them as a higher-risk borrower? We may be able to help structure a solution if a supporter of the organization would fund it via a DAF. Ask about our donor-advised loans (“Customized Loans”).

FJC does not have a ready source of capital available to lend at below-market rates, but we can partner with donors that are willing to fund these loans via a DAF account. Typically these donors are motivated primarily by impact and willing to provide more risk-tolerant loans on more flexible terms and at lower interest rates.

FJC is the lender of record in these transactions. If a loan is written off or uncollectable, FJC will convert the loan to a grant and reduce the donor’s account by the principal amount that is written.

Case Study: Board Member helps a nonprofit theater manage cash flow
Case Study: Private foundation creates a line of credit for a youth services organization

Market Rate or Concessionary?

Not sure what kind of lending your favorite nonprofit will qualify for? See a side-by-side comparison of each loan type here.

A Use Case for Concessionary Loans

Refinancing debt

We have worked with imaginative donors that have used their DAF accounts to refinance and restructure a nonprofit’s debt.

Case Study: Donor refinances the mortgage of a storied museum

Supporting Entrepreneurial Nonprofits

Revolving funds

Nonprofits in certain sectors may encounter expenses that are recoverable when milestones are achieved, allowing the same philanthropic dollar to recycle multiple times. We have worked with imaginative donors to create revolving funds. Read an affordable housing case study. Read a case study about fee recovery in environmental litigation.

Equity-Like Nonprofit Investment

Restricted Grants & Term Endowments

Considering a major gift to a nonprofit? We have stewarded resources in partnership with nonprofits and donors to ensure that dollars can achieve their mission even as the nonprofit has changed, evolved, or gone out of business. Read a Case Study

Nonprofit & Philanthropy Expertise

Creative Structuring

What do you have in mind? FJC has applied its variety of philanthropic account types to all kinds of problems and uses cases. Contact us.

Services

You’ve got the funds. Our turnkey solutions will help you bring your ideas into reality. What are you trying to accomplish? We’ll help you get there.

FJC Philanthropic Capital Solutions

FJC Philanthropic Capital Solutions

Nonprofits are businesses with unique needs. Sometimes grants are what’s necessary. Other times, it’s loan capital or equity-like investments.