Banking on Your Nonprofit’s Future

• 2 min read

Image showing a non-profit food pantry with volunteers helping the community
Here’s how you can help guide your favorite nonprofit to a bankable future.

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Image showing a non-profit food pantry with volunteers helping the community

Banking is tough for many nonprofit institutions, especially those that don’t sell tickets, like museums, or offer products, like hospital services. But that doesn’t mean banks can’t help philanthropic organizations that are mainly donor supported or don’t have consistent and even revenues. Here’s how AMG helps: 

Deposit Services – Nonprofits can utilize treasury-management services just like those used by for-profit enterprises. These services can include Automated Clearing House (ACH) processing for electronic billing and payments; positive pay (a popular automated cash service) to limit fraud exposure; remote deposit of checks from a computer or mobile phone by authorized employees; sweep accounts to keep excess funds invested and earning interest; and debit or credit cards for paying and tracking organization expenses. Excess funds can be invested longer-term to achieve higher returns. 

Investment Management – As organizations grow and succeed, many have the opportunity to establish reserve funds and endowments to support intermediate- and long-term needs. Longer-term funds can often be invested. The nonprofit would need an investment policy to define suitable assets that conform to the organization’s tolerance for risk. This policy can also address donor-restricted funds and how grants and gifts will be used. 

Loan Services – A nonprofit can consider a line of credit to be drawn between fundraising events, or to bridge the gap when a disbursement must be made to meet contractual obligations before funds are available at their scheduled release date. Or a nonprofit may need a term loan to fund an exhibit or an expansion or to start up or acquire a complementary mission or to purchase equipment or vehicles. Ultimately, the organization may need a long-term loan to acquire the building from which it will operate. 

HOW AMG CAN HELP

Not a client? Find out more about AMG’s Personal Financial Management (PFM) or to book a free consultation call 303-486-1475 or email us the best day and time to reach you.

This information is for general information use only. It is not tailored to any specific situation, is not intended to be investment, tax, financial, legal, or other advice and should not be relied on as such. AMG’s opinions are subject to change without notice, and this report may not be updated to reflect changes in opinion. Forecasts, estimates, and certain other information contained herein are based on proprietary research and should not be considered investment advice or a recommendation to buy, sell or hold any particular security, strategy, or investment product.

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