Nonprofit Finance Fund (NFF) and Trinity Church have partnered to launch a pilot program serving faith organizations as they pursue community development projects. The Faith in Our Communities Fund will allow NFF to provide flexible pre-development loans, backed by Trinity’s credit guarantee, to faith organizations often unable to access mainstream sources of capital.
“Faith-based organizations hold deep connections and commitments in our neighborhoods, and understand local needs and opportunities,” said Aisha Benson, president and CEO of NFF. “We can supply the capital and technical expertise to support these organizations and bolster community ownership of assets.”
The Faith in Our Communities Fund is offered through NFF’s Building Equitable Assets for Communities and Nonprofits (BEACoN) initiative and Trinity’s Mission Real Estate Development initiative. As faith-based nonprofits across the country consider how to manage their real estate to pursue mission-aligned work, the fund will provide financing for capital improvements that advance development planning, pre-development costs and expert counsel.
“This program will provide more runway to religious organizations to plan strategically for the use of their property without succumbing to the pressure to make short-term decisions with long-term assets,” said the Rev. James Clark III, managing director of mission real estate development at Trinity Church.
The concept of using credit-enhancement to unlock capital is not new. However, this method has seldom been used to support faith organizations. NFF and Trinity said they hope this pilot will attract additional partners interested in supporting faith-based community development and impact.
“We are meeting a gap in the market by providing anchor religious organizations with the capital they need to make innovative approaches to community development a reality,” Clark said. “These leaders already have trust, relationships and a mission focus that puts people first. They have proven to be excellent borrowers. We will offer access to financing that is often unavailable through mainstream banks.”
NFF and Trinity are prepared to move capital quickly to support housing, health and wellness, education, economic vitality, workforce development and other mission-aligned priorities identified by participating faith organizations. The two previously partnered on a Fund to shore up New York City nonprofits during the COVID-19 pandemic; NFF also provides financial coaching to Trinity’s grantees.
