Hidden in Plain Sight: Understanding Nonprofit Capital Structure

Hidden in Plain Sight: Understanding Nonprofit Capital Structure

Healthy nonprofit organizations must strike a balance between pursuing a mission and preserving organizational and financial viability. While most nonprofit executives understand the importance of mission and organizational capacity, the third element of the triad — capital structure — is often overlooked. Clara Miller, president of the New York City-based Nonprofit Finance Fund, explains capital structure and why it deserves more attention in the latest issue of the Nonprofit Quarterly, a publication of nonprofit advocacy group Third Sector New England. In addition to examining differences in the financial issues facing nonprofits and for-profit companies , the article, Hidden in Plain Sight: Understanding Nonprofit Capital Structure (8 pages, HTML), discusses the importance of considering capitalization, how organizational growth and change affect capital structure, and capital-savvy principles for grantmakers.