Getting liquid assets to charities.

Letter to the Editor

Dear Editor:

I read with great interest "Liquid Assets" Paul Clolery's column (Nov. 1, 2008) about creating a short-term loan program for the nonprofit sector.

At FJC, in addition to our donor advised fund, we have operated a loan program to provide funds to credit worthy nonprofit organizations since our inception in 1995. The loans are made at market rates and capital comes from our donors who recommend some or all of their funds be invested in such loans. The interest earned on these mission-related loans is credited to the accounts of our donors.

Some nonprofit borrowers may not have the necessary credit worthiness to obtain an FJC Agency Loan. In these cases, FJC's donors may use assets in their donor advised funds to secure loans to nonprofit organizations about which they care and whose credit cannot stand by itself. Each of these loan arrangements is unique and agreed to separately.

"Liquid Assets" is certainly bold thinking and put on the table creative ideas to help nonprofits in this uncertain financial time. We have found that our program, while not on this scale, has served the community and the philanthropic goals of our donors well.

Leonard Glickman

Chief Executive Officer

FJC--A Foundation of Philanthropic

Funds, New York, N.Y.

Print Get the Mag Weekly Updates