Spurred to Action

What catalyzed the Nonprofit Roundtable Series.

Beginning in 2020, a small group of Atlanta funders started collaborating more deliberately around the financial pressures nonprofits face. During the COVID-19 crisis, several of those foundations coordinated funding and investment strategies. They seeded the Community Foundation for Greater Atlanta's Community Guarantee Pool, which helped unlock CDFI bridge lending to cover delayed government funding.

The group has closely watched pandemic-era funding streams taper off. That tapering left many nonprofits facing increased demand with fewer public resources. Several foundations co-funded a supplemental state-level analysis as part of the 2025 Nonprofit Finance Fund National Survey.

With years of "collective muscle building" behind them, this small group of funders sprang into action in early 2025. The flurry of executive orders and related funding freezes created immediate threats to nonprofits and the communities they serve. After some discussion, the funders agreed to host a small roundtable series that brings together philanthropic leaders, nonprofit executives, CDFIs, and commercial lenders.

Three Key Areas of Inquiry

Funders hoped stakeholder and audience-specific conversations would uncover three key areas.

Understanding the Nonprofit Perspective
Current cash flow challenges and credit needs.
Gauging the Current Lending Appetite
CDFI and banking interest in nonprofit lending.
Determining a Collaborative Path Forward
Models for unlocking credit for nonprofits.

Information-Gathering Steps

From April to September 2025, we took the following steps to inform the group's understanding and the recommended future ecosystem interventions.

  1. Two 2-hour working roundtables. Convened philanthropic leaders, nonprofit executives, CDFIs, and commercial lenders.
  2. Five nonprofit leader interviews. Conducted in-depth conversations to surface real-world cash flow and credit experiences.
  3. Literature review. Nonprofit financial indicators, sustainable business model features, bridge lending, and line-of-credit tools.
  4. National foundation interviews. The Denver Foundation and MacArthur Foundation, focused on their nonprofit bridge loan funds.
  5. Capacity builder interviews. REDF Impact Investment Fund, Nonprofit Finance Fund, and Propel Nonprofits, focused on capital absorption and readiness.
  6. Bi-weekly working group meetings. Atlanta foundation leaders shared updates, presented interim learnings, and made nimble design decisions.

Roundtable Learnings

What we heard during the roundtable sessions.

Roundtable Session 1. Field Context

Atlanta's nonprofit sector sits in the eye of a perfect storm. Delayed reimbursements, uncertainty around key federal funding programs, growing expenses, reserve draws, and escalating service demand all converge to strain operations.

Structural challenges with government reimbursements and funding are not new. They are not limited to federal dollars either. Cash-flow timing has long been built into the reimbursable model of government funding, what nonprofits often call the "float" between service delivery and payment receipt.

Even before recent federal budget uncertainties amplified delays, organizations routinely advanced payroll, rent, and program expenses while awaiting contract draws or grant reimbursements. Smaller agencies (without lines of credit or unrestricted reserves) sometimes waited 30 to 60 days for state or local payments, and reporting requirements could stretch that gap further.

The Nonprofit Finance Fund's 2022 State of the Nonprofit Sector Survey found that about 45% of U.S. nonprofits have less than three months (around 90 days) of cash on hand for operating expenses.

Common Cash Flow Challenges and Use Cases

USE CASE 1 Advancing or Bridging Reimbursable Funding

What we heard from nonprofits

A twenty-year-old homelessness-focused nonprofit has been routinely awarded federal grants through both the VA and HUD. Federal reimbursements routinely arrive 60 to 90 days after invoicing. Over the past year, the nonprofit has tapped its reserves and incurred expensive short-term credit to cover payroll and fixed costs. The ideal solution would be a multi-year, simple, renewable bridge loan or working LOC.

What the data says

A GrantStation survey highlights that organizations routinely tap lines of credit to cover payroll and core expenses when cash flow is low due to delayed reimbursements. NFF's 2022 Survey found that 55% of nonprofits needed external liquidity to manage timing gaps between service delivery and funding disbursements.

USE CASE 2 Refinancing High-Cost Debt

What we heard from nonprofits

A mental-health nonprofit holds a legacy line of credit at double-digit interest rates, originally secured to tide over pandemic-era revenue dips. With upcoming reductions in government funding and flat donor support, the organization wants to refinance into a lower-cost, longer-term facility. The ideal solution blends CDFI-subsidized pricing with a streamlined approval process that does not require additional collateral.

What the data says

Refinancing high-cost legacy debt is significant. In the wake of pandemic emergency borrowing, roughly 1 in 4 nonprofits carried lines of credit with double-digit interest rates well into 2023, according to Abrigo. These nonprofits, often mid-sized agencies with limited access to new collateral, are actively seeking lower-cost, longer-term facilities.

USE CASE 3 Smoothing Out Lumpy Seasonal Revenue

What we heard from nonprofits

A local community development organization receives nearly half of its annual contributions during the December giving surge but operates year-round on programmatic commitments. Previous attempts to secure a revolving credit line were declined due to limited collateral and uneven cash flow. This use case calls for a risk-tolerant credit facility that permits draws during lean months.

What the data says

Federal Reserve surveys of institutional lenders note that seasonal credit products are in high demand among any organization whose cash inflows cluster in particular months. CDFIs report fielding frequent inquiries from arts organizations, food banks, and other groups that need a revolving facility to tide them over until their next fundraising push.

Roundtable Session 2. Lender Perspective

Most of Atlanta's mission-driven lenders engage with nonprofits to some degree. Those relationships reflect each institution's broader strategic focus more than a singular commitment to the nonprofit sector. Commercial banks commonly serve nonprofits as depositors, providing checking, payroll, and cash-management services. Real estate-oriented CDFIs (those targeting affordable housing) routinely underwrite loans to nonprofit developers. Entrepreneurship-focused CDFIs concentrate on small businesses, and nonprofit partners often appear only in niches like childcare.

Atlanta's ecosystem lacks a lender whose primary mission and client base are exclusively nonprofits. No local CDFI exists today whose core charter is to underwrite working capital, bridge financing, or programmatic loans solely on behalf of mission-driven organizations.

Factors Limiting Greater In-Market Lending to Nonprofits

Collateral-First Underwriting
Non-depository lenders typically extend bridge and working-capital facilities only when secured by real estate or tangible collateral, maintaining conservative loss-reserve ratios.
Limited Operating Capital Interest
CDFIs noted limited interest in providing operating capital for routine cash flow issues. Instances do exist when key foundation or local partner involvement helps de-risk the facility.
Pledged Deposit Models
Depositories can channel impact investor dollars into pledged (controlled) deposit accounts as guarantee backstops, raising their equity base and unlocking high-impact lending.
CDFI Sector Headwinds
CDFIs are also navigating uncertain waters due to federal funding threats, cuts, and departmental downsizing, all of which directly affect their weighted average cost of capital and loan pricing.

Roundtable Summary

Key Question Early Learnings
Understand the Nonprofit Perspective How and why do nonprofits experience cash flow challenges. What have they experienced applying for capital. Is there growing interest.
  • Three common use cases. Current LOC refinancing, bridging government funding, and working capital for long fundraising cycles.
  • Varied readiness to pursue investment capital.
  • Banking relationships are of limited value in terms of additional financial tools and capital access.
Gauge the Current Lending Appetite What is the current CDFI and banking appetite. What prevents more activity. What conditions or tools would incentivize interest.
  • Limited current exposure to the nonprofit sector. Greatest exposure is to affordable housing-focused nonprofits.
  • Federal funding landscape is creating uncertainty for the CDFI sector and may impact risk tolerance and lending priorities.
  • Few current ecosystem partners are set up to administer LOCs. Admin and back-office inefficiency limits creative lending.
Determine a Collaborative Path Forward Is there meaningful interest among funders, lenders, and nonprofits. What scale of resources might be mobilized. Which roles will partners play.
  • At the most zoomed-out level, stakeholders are aligned that nonprofits need more predictable sources of blended capital.
  • Although few of Atlanta's foundations are active impact investors, nonprofit bridge lending and guarantees are compelling enough to bring new stakeholders to the table.
  • CFGA has been informally thrust into an ecosystem organizing role. Perhaps CFGA's most valuable role is as a blended capital aggregator that brings grant funding for nonprofit TA and education, grants and impact investments for credit enhancements and guarantees, and debt to recapitalize CDFIs that will offer nonprofits capital.

Ecosystem Transformation

Five layered ecosystem interventions to bring about a healthier, navigable nonprofit capital system.

Systems change requires layered solutions. Local foundations expressed the view that Atlanta's nonprofit lending environment has persistent gaps that prevent a healthy, navigable system for nonprofits to access capital. To bring about a different system, foundations must simultaneously identify core "quarterbacking" partners and mechanisms and invest in layered solutions and approaches.

Click any gap below to view the full intervention.

Georgia's Data Reality

Data from NFF's 2025 State of the Nonprofit Sector Survey on the financial pressures Georgia nonprofits face, and why this ecosystem transformation is urgent.

NFF's 2025 survey reached 323 Georgia nonprofits across the state and across budget sizes and subsectors. The data paints a clear picture. Nonprofits are essential infrastructure for Georgia communities, and they are operating under severe financial strain.

Key Financial Health Indicators

38%
Operating Deficits
Over one-third of Georgia nonprofits ended 2024 with expenses exceeding revenue, slightly higher than the 36% national rate.
21%
One Month or Less of Cash
One in five organizations could survive just 30 days if all revenue stopped, leaving no cushion for emergencies.
56%
Three Months or Less of Cash
More than half lack the standard 3-6 month reserve recommended by financial experts.
15%
Have 6+ Months Cash Reserves
Only 15% of Georgia nonprofits, compared with 21% nationally, have adequate reserves to weather storms and invest strategically.
80%
Struggle with Full-Cost Funding
Four in five report raising funds that cover full costs is a challenge, and 48% call it a major challenge.
35%
Can Pay Living Wage to All Staff
Only one-third can pay all full-time staff a living wage, compared with 43% nationally, contributing to burnout and turnover.

Regional Variations Across Georgia

Financial health challenges vary significantly across Georgia's regions.

North Georgia
33%
Operating Deficit Rate
24%
≤1 Month Cash
24%
Pay Living Wage
Middle Georgia
40%
Operating Deficit Rate
30%
≤1 Month Cash
33%
Pay Living Wage
Metro Atlanta
39%
Operating Deficit Rate
20%
≤1 Month Cash
36%
Pay Living Wage
South Georgia
28%
Operating Deficit Rate
14%
≤1 Month Cash
38%
Pay Living Wage

Service Demand and Capacity Crisis

85%
Increasing Service Demand
Demand increased in 2024 and is expected to increase again in 2025.
57%
Cannot Meet Demand
More than half do not expect to meet service demand in 2025 due to resource constraints.
67%
Serve Lower-Income Communities
Two-thirds exclusively or primarily serve people with lower incomes.

Funding Challenges

Government Funding Issues
  • 71% rely on government funding (federal, state, or local)
  • Only 40% receive government payments on time
  • 15% receive payments more than 90 days late
  • 78% can only charge indirect rates of 10% or less
  • 33% are limited to indirect rates of 0-5%
  • 81% expect government funding to decrease post-2024 elections
Foundation Funding Trends
  • 79% receive foundation funding
  • Only 30% report funders being less restrictive since 2022
  • Only 16% see more multi-year grants (vs. 27% nationally)
  • Only 10% report grants getting larger
  • Georgia nonprofits less likely to experience supportive practices than national peers

Workforce Challenges

74%
Major Management Challenge
Employing enough staff (40%) and staff burnout (69%) top the list.
60%
Offer Health Insurance
Lower than the 68% national rate, making recruitment harder in a competitive market.
48%
Offer Retirement Benefits
Less than half can offer retirement contributions, compared with 55% nationally.
What this data tells us. Georgia nonprofits are not failing. They are being failed by a funding system that does not cover true costs, pays late, and restricts how funds can be used. The ecosystem we are building addresses these systemic issues through patient capital, flexible funding, and coordinated support that meets nonprofits where they are.

Nonprofit Financial Sustainability Spectrum

A diagnostic framework for funders, CDFIs, and capacity builders to assess where nonprofits sit on the financial stability spectrum and to design targeted interventions that move the needle.

Every nonprofit falls somewhere on the continuum from crisis to sustainability. Understanding these stages, and what support works at each level, lets you deploy technical assistance and capital effectively. Use it to meet organizations where they are with what they actually need.

Understanding Your Financial Position

Three quick diagnostics every nonprofit (and their funders) should know.

Days Cash on Hand Calculator
(Unrestricted Cash + Short-term Investments) ÷ (Annual Operating Expenses ÷ 365)
Georgia Benchmarks
  • 21% have ≤30 days (crisis)
  • 35% have 31-90 days (vulnerable)
  • 29% have 91-180 days (building)
  • 15% have 180+ days (resilient)
Working Capital Health
Current Assets minus Current Liabilities. Your cushion for cash flow gaps.
Warning Signs
  • Negative working capital
  • Cannot cover payroll without new grants
  • Vendor payments consistently late
  • Using restricted funds for operations
Revenue Concentration Risk
What percentage comes from your largest funder. High concentration equals high risk.
Healthy Targets
  • No single source over 40%
  • Government funding under 60%
  • 4+ diverse revenue streams
  • Some unrestricted revenue

The Financial Health Spectrum at a Glance

Based on NFF 2025 data, Georgia nonprofits cluster into three distinct stages. Click a stage below to see the deep dive.

How Size Influences but Doesn't Determine Financial Health

A $300K grassroots org can be more stable than a $10M institution. Context matters.

Under $1M Budget

Strengths. Low overhead, volunteer power, community trust.
Challenges. No finance staff, founder dependency, limited systems.
Where to focus. Basic financial literacy, simple templates, emergency reserves.
Success metric. 60 days cash on hand is a huge win.

$1M to $10M Budget

Strengths. Growing professionalization, program evidence, fundraising momentum.
Challenges. Systems lagging growth, middle management gaps.
Where to focus. Infrastructure investment, staff development, capital readiness.
Success metric. Positive working capital and growing reserves.

Over $10M Budget

Strengths. Professional staff, complex funding, market position.
Challenges. High fixed costs, bureaucracy, innovation resistance.
Where to focus. Sophisticated capital structures, merger opportunities, systems change.
Success metric. Efficiency ratios and impact per dollar.
This is a diagnostic tool, not a judgment. Organizations end up financially vulnerable for systemic reasons. Decades of starvation funding, restricted grants that do not cover true costs, and funders' unwillingness to invest in infrastructure. The goal is to help each one build the financial resilience that fits their mission, model, and community.

Self-Assessment Tool

Answer 10 quick questions to understand your organization's current financial health stage and get targeted recommendations for building resilience. Takes about 3 minutes.

Question 1 of 10
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