While the “grant” is perhaps the most commonly-known form of nonprofit financing, there are many other vehicles – some more complex than others – for nonprofits to access capital and credit in order expand service and societal benefit. In this post, we describe a new partnership with one such vehicle, a community development financial institution.

While the “grant” is perhaps the most commonly-known form of nonprofit financing, there are many other vehicles – some more complex than others – for nonprofits to access capital and credit in order expand service and societal benefit. One such vehicle is the community development financial institution (CDFI), which is a class of financial institution certified by the Department of Treasury to provide credit and financial services to underserved markets and populations. CDFI’s differ from private financial institutions in that they have a primary mission of community development rather than financial return on investment.

Rasmuson Foundation has entered into a partnership with NCB Capital Impact, a CDFI, to increase the availability of credit at below-market rates to organizations planning or undergoing capital projects intended to serve the needs of low-income Alaskans. Rasmuson Foundation will provide a five-year, $750,000 program related investment to increase access to flexible capital financing and catalyze additional investments in Alaska nonprofits.

NCB Capital Impact, based in Arlington, VA, has a significant history in Alaska and an impressive track record of projects around the country. They have successfully deployed $1.4 billion in loans, investments and assistance to create community health centers, education facilities, affordable homes, assisted living units for seniors and persons with disabilities, and other community development enterprises.

An example of a project NCB helped to finance in our state is Alaska’s first Green House nursing facility which opened in Seward last September. The Green House model is an innovative approach to long term care for the elderly where small group homes featuring private bedrooms encircle a central shared kitchen and living area rather than a nursing station. The facilities provide a more-home based environment, that research shows is more beneficial to the well-being of elders than more medical institution-based environments.

The Foundation welcomes this partnership with NCB Capital Impact and the community financing expertise they bring.