lendonate inaugurated a hybrid online lending platform in June 2017 which simultaneously offers donations and loans to nonprofits 501©(3). LENDonate is an Oakland-based finance and tech company that enables nonprofits to seek loans from philanthropic organizations, financial institutions, accredited investors, and supporters, in an efficient and reliable way.
The founder and CEO of the company, Vivianne Hsu, started LENDonate to provide support to nonprofits in the form of donations and loans so they can kickstart their philanthropic mission and serve the underprivileged and needy communities and individuals. According to Hsu,
“We are trying to create a comprehensive ecosystem that supports both funders and nonprofits, so they can connect in a more efficient and relational way, rather than a transactional way.”
Nonprofit Lenders organizations occasionally require immediate cash inflows whether they are purchasing property or major equipment, hosting a large fundraiser, or awaiting a delayed grant. Getting funding from banks, foundations, or major donors can be a challenging, time-consuming, and expensive process as nonprofits sort through specialized funds, bank requirements, and mountains of paperwork.
To provide “quick funding of high-quality, low-cost loans,” LENDonate streamlines the funding process by providing an online marketplace where donors and funders can customize the form of their financial support through donations, loans, or a combination of both. Vivianne Hsu shares that,
“The traditional loan experience for Nonprofits Business Loans tends to be long and arduous, generally accompanied by high costs. LENDonate brings all parties together to simplify and speed funding of high-quality loans while empowering lenders to customize lending to meet their financial goals.”
The minimum amount of loan that LENDonate offers is $50,000 with no maximum. Hsu believes that the minimum amount is still doable for nonprofits, even if they’re small, can still be attained and used efficiently. Beyond that, the loans can get tricker and the process can stretch over time which may not be suitable in certain situations where nonprofits require urgent funding.
To know how LENDonate has helped an organization secure a faster and reliable loan, here is a statement from Lisa Steindler, executive artistic director of Z Space, which is a nonprofit multidisciplinary arts organization. She shares the organization’s experience with the hybrid platform:
“LENDonate helped us secure a loan with a 3.6% interest rate which was seven to ten percent less as compared to the bank credit that the organization previously attained. Receiving loans through bank credit lines can be a long and arduous process that can take as long as eight months to one year to finally secure a loan. What’s exciting about LENDonate is that loans can be converted to donations, which allows us to take more risks and think bigger. Having such a reliable and efficient funding option lets people know more about our organization and get more familiar with our mission.”