Lending to Non-Profit Organizations
Lending to Non-Profit Organizations is designed for loan and credit officers who have little or no experience in the field of nonprofit lending. It provides the knowledge and skills needed to make informed lending decisions when considering an application from a nonprofit organization. This course introduces the various types of nonprofit organizations (NPOs) and teaches appropriate methods for analyzing and lending to nonprofit organizations. It covers accounting under Financial Accounting Standards Board (FASB) Statements of Financial Accounting Standards (SFAS) Nos. 116, “Accounting for Contributions Received and Contributions Made,” and 117, “Financial Statements of Not-for-Profit Organizations.”
Participants are expected to have a practical knowledge of financial accounting, financial statement analysis, and cash flow analysis.
Who Will Benefit?
Credit analysts, loan review personnel, and lenders as well as other commercial banking professionals who are involved in lending to non-profits, or who want to learn more about the basics.
Upon completion of this course, participants will be able to:
- Describe the key characteristics of effective nonprofit organizations and how those relate to your working relationships with NPOs.
- Recognize the key components of nonprofit accounting methodology.
- Utilize financial ratios as part of the evaluation of an NPO’s performance and financial condition.
- Identify the credit needs of nonprofit educational institutions, churches, and charities, and the elements of a sound credit decision across NPO segments.
Through a mix of small and large group activities, case studies, and active discussions, participants are better prepared to apply the content learned when they return to their jobs. The following case studies are described in Lending to Non-Profit Organizations:
- The Baxter and Moore College case is a loan request from a private college desiring to build a new dormitory on the college campus. The purpose of the case is to identify and analyze loan repayment risk, use ratio analysis and other financial analysis techniques as evaluation tools, and to make a loan decision.
- The Hanover Helping Hands case is a loan request from a nonprofit charity intending to buy a building for a new day care program. The purpose of the case is similar to Baxter and Moore, but within the context of a unique sector with unique repayment sources, including a proposed fundraiser.