Funds to Strengthen Financial Health of Local Community Organizations
Nonprofit Finance Fund (NFF) has been awarded $1 million from Trinity Health in Novi, Michigan, to improve the access to capital for Michigan nonprofits. NFF will use this investment to provide loans to nonprofit organizations in southeast Michigan, the home of seven of Trinity's 47 hospitals. The funds will be used to finance community facilities projects and organizations working in low-wealth communities, providing working capital for construction of buildings, facilities improvements, and equipment purchases.
The Michigan Nonprofit Association has reported that nonprofit organizations generate more than $108 billion each year in overall economic activity. More than $60 billion of it is in direct expenditures, which creates indirect economic effects of an additional $48 billion. Despite these economic benefits, many of the state's 47,000 nonprofit organizations struggle to meet their own working capital needs, which in turn enable them to effectively serve their communities.
"Gaining access to capital has always been challenging for nonprofits, but the situation has worsened significantly as a result of the economy, and the tightening credit markets," said Kevin Sweeney, Site Director for NFF's Detroit office. "Trinity Health's investment in our Michigan loan fund will strengthen our ability to support local nonprofits as they seek out lending as a strategic financing option."
As a not-for-profit health system, Trinity Health reinvests its profits back into the community through programs to serve the poor and uninsured, health education and promotion initiatives, and outreach for the elderly. Recognizing gaps in the health, economic, and educational development of communities, Trinity has partnered with community development financial institutions (CDFIs), including NFF, to invest in these communities through grants and lending.
"Trinity Health is dedicated to the well being of the whole person - body, mind, and spirit," said Daniel Hale, Executive Vice President, Trinity Institute for Health and Community Benefits. "We recognize the positive impact that healthy nonprofits have on our patients and the communities in which we operate, and believe that supporting their efforts will greatly enhance the quality of life for Michigan residents. A healthy and vibrant nonprofit sector is critical to Michigan's future."