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The Giving Back
The Ideal Fundraising Strategy for Non-profit OrganizationsEquityBuild provides a remarkable tool for non-profit organizations seeking powerful but versatile fundraising strategies. Using the EquityBuild investment instrument, fundraisers can offer contributors a way to provide significant funds to their causes without putting out one penny of their own cash. Even better, in many circumstances, significant tax benefits accrue to the contributors, who need make no actual cash expenditures. How Does It Work? Almost by definition, major contributors to charitable and non-profit organization enjoy strong credit status. Rarely is this credit potential, the ability to secure bank loans at beneficial terms, fully utilized. This unused credit capacity offers the perfect solution for a whole range of non-profit funding needs. Using the EquityBuild charitable program to purchase homes, contributors use only their good credit to secure our positive cash flow investment properties. The income and equity from those properties is donated, however, to the non-profit organization. To eliminate unwanted liabilities and increase institutional and financial options, EquityBuild suggests the creation of a pool of income-producing properties. Utilizing this charitable portfolio strategy, non-profit organizations can offer donors the opportunity to provide enormous charitable resources without expenditures or the significant liabilities typically associated with investments. EquityBuild Charity Program Facilitates a Full Range of Financial Options Let's examine a scenario in which a non-profit organization has donors willing to use unutilized credit potential to secure only 40 homes for the benefit of that organization. This could be 40 individuals securing one home apiece. It could also be 20 individuals willing to secure two homes apiece, or any other combination. With these assets, an organization's cash flow options increase dramatically. Long-term Funding Strategies Assuming an average mortgage of $60 at 6 percent interest, we could devote all free cash to paying down one unit at a time and buying a new unit upon each payoff. Within 10 years, the portfolio should be expected to total 60 properties. This portfolio should be salable for approximately $6 million for use on a special program such as the construction of a facility. On the other hand, the units could be held to generate approximately $20,000 per month in net cash flow. If this process is continued for another five years, the portfolio will have grown to 78 units worth approximately $8 million gross, generating approximately $35,000 month cash. Short-term Funding Strategies If an organization has near term needs, there are applicable strategies as well. Starting with 40 units, an organization could apply all cash flow to paying off one home at a time. In only a year, that home could be sold for its full market value, typically between $80,000 and $100,000 per unit. Every year, an additional house would mature and be available for sale. EquityBuild's Tailored Fundraising Programs EquityBuild is able to tailor a fundraising strategy according to every organization's needs. These strategies can, in turn, be adjusted over time with the changing needs of the organization. We believe that the ability to provide significant resources to non-profits with no cash outlay, combined with extremely attractive tax benefits for donors, is an unbeatable combination. Throw in the fact that the instrument generating the wealth also provides much needed housing for worthy low-income individuals and you're looking at the perfect solution to all your fundraising needs. Administrators of non-profit organizations should contact EquityBuild directly for more information. State and local tax laws may vary so we always recommend consultation with qualified attorneys before establishing such a program. |
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