Need seen for nonprofit investment capital

Nonprofits have a long list of capital needs, but have trouble finding the investment capital to fund them, a new survey says.

The survey and report, “Investment Capital: The New Challenge for American Nonprofits,” was released by the Nonprofit Listening Post Project, an initiative of Johns Hopkins University in collaboration with several other nonprofit groups.

More than nine in 10 nonprofits surveyed say they need investment capital for technology, the survey says, yet fewer than four in 10 of those groups say they have been able to raise such funds.

Eight in 10 report needing investment for “program development,” but only one in four has successfully raised the capital they need.

Almost all nonprofits surveyed say they either don’t know how to raise capital from groups like insurance companies and pension funds, or cite difficulties in securing such investment.

Other sources of capital, including banks, governments, foundations and donors, are better known to nonprofits, but are difficult to access for capital investments, nonprofits surveyed say.

The survey results were similar for all types of nonprofits surveyed.

In response to the survey, the report suggests creation of a tax credit designed to encourage the flow of private capital to nonprofits and ease access to such funding.

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