The Central New York Community Foundation’s local impact investing program has closed on a $450,000 deal to secure a low interest line of credit for the Dunbar Association. The funding will be used toward the installation of a new boiler, roof and HVAC system until funding from local and state grants are received. This project is receiving funding from a Certificate of Deposit (CD) the Community Foundation has established in partnership with Pathfinder Bank.
The Dunbar Association is a Syracuse-based community center that offers family, youth and senior services and is host to various gatherings such as dances, meetings, youth groups and community convenings. The new agreement will allow the organization to replace the building’s boiler, HVAC system and roof for the comfort and safety of clients and staff while awaiting reimbursement from the city, county and Dormitory Authority of the State of New York (DASNY).
According to Executive Director Andre Harper, “The support of the Central New York Community Foundation in helping Dunbar to establish affordable bridge funding with Pathfinder Bank enabled us to move forward with desperately needed building systems, including the replacement of an ancient and temperamental boiler before winter. Our senior, family, and youth programs are robust and growing and we are tremendously grateful for the consistent support of Dunbar’s mission by the Community Foundation.”
Through its impact investing program, the Community Foundation forms similar agreements for the benefit of nonprofit organizations and unincorporated organizations working with a 501(c)(3) fiscal sponsor that seek larger amounts of support than its nonprofit bridge loan program can provide. The Community Foundation is responsible for intake and preliminary due diligence review. Applications that meet the Community Foundation’s internal standards could be eligible to receive a lower interest rate from a local bank over the duration of a CD term.
The bridge loan and CD line of credit programs are designed to help nonprofit organizations continue essential community services while awaiting the receipt of approved grant funding. It is common for government agencies and other funders to require awardees to draw down funds on a reimbursement basis, often taking several months to process reimbursements. A Community Foundation survey of more than 50 local nonprofit organizations found that 58% have experienced funding delays from New York State grant contracts.
This investment marks a total of more than $4.8 million now advancing housing, business development and lending through the Community Foundation’s local impact investing program. Impact investing allows the organization to use its financial resources to make investments that generate both financial returns and positive social outcomes. In 2023, the foundation’s board of directors approved a policy that allows the use of up to 5% of its main investment pool for the purpose of impact investment.
“It is not uncommon for Central New York nonprofits to wait several months to receive grant payments, forcing them to alter services or find other stop-gap measures,” said Frank Ridzi, vice president of community investment at the Community Foundation. “The vital work of local community organizations is our top priority, so by providing flexible support through this loan fund, we hope to help ensure their services continue.”
The Community Foundation’s local impact investing program is designed to tackle a wide range of community needs with an emphasis on helping Central New York residents build wealth, equipping residents with the opportunity to contribute to the economic performance of the region and providing under-resourced communities and nonprofit organizations access to capital. Learn more at cnycf.org/impactinvesting.
