NFF and Andrew W. Mellon Foundation Extend Partnership to Support Arts Organizations with Revolving Loan Fund
New York – October 13, 2015– The Andrew W. Mellon Foundation has extended its partnership with Nonprofit Finance Fund (NFF) on an innovative approach to providing arts and cultural heritage organizations with financial support. The Foundation's Revolving Loan Fund is a $1.1 million fund, administered by NFF, that provides zero-interest loans to the Foundation's small and mid-sized grantees, helping them to bridge gaps in funding, weather financial setbacks and implement new strategies. Repaid loans then fund loans to other groups in need.
"The Revolving Loan Fund is an invaluable resource to arts organizations that produce work on a project basis," said Jaynie Saunders Tiller, Managing Director of New Georges, a New York City-based company home to some of the most adventurous women theater artists working today. "The money provides crucial bridges between income gaps throughout the year, and the stewardship of Nonprofit Finance Fund is also an incredible resource."
The Fund is a program-related investment that uses investment dollars toward philanthropic aims. Since July 2009, the Fund has loaned more than $3.8 million to 27 arts grantees across the country. The new agreement extends the Fund through 2020.
"This is a powerful example of how financial innovation can extend the impact of philanthropic dollars," said Norah McVeigh, managing director of Nonprofit Finance Fund. "Grants aren't the only way that foundations can support nonprofits. There is tremendous need for flexible money that nonprofits use to invest in ways that promote both short- and long-term financial health."
Revolving Loan Fund awards have funded investments in new strategies and programming, financed upfront production costs, and have been used to cover expected gaps in revenue or delayed payments. Mellon Foundation grantees in its Arts and Cultural Heritage program with annual operating budgets of up to $15 million can contact NFF at [email protected] for additional information.