How It Works

Nonprofits and Lenders come together through LENDonate:

1. Nonprofit borrowers apply and share their stories.

Details: Borrowers must be 501(c)(3) organizations in good standing with a minimum of 3 years in operation. Organizations with at least $1m annual revenue or $1m net assets will have a better chance of qualifying for a loan.

2. LENDonate, assesses each borrower’s creditworthiness and assigns an appropriate interest rate (ceiling rate) to qualified loan requests on the Marketplace. Through a bidding process, the Marketplace prioritizes lender offers that are more favorable to the borrowers. Offers may include loan bids at the ceiling rate or at a lender-reduced rate, a pure donation, or loan+donation.

3. During the life of the loan, LENDonate services the loan by attributing monthly repayments back to each lender and by providing key metrics to each user on the user’s dashboard. LENDonate also facilities a lender-initiated loan-to-donation conversion at no cost, such that 100% of converted funds go to the nonprofit borrower.

4. With repayments back in Lenders accounts, they can recycle the funds to other worthy causes!

Result: Everybody comes out ahead. Nonprofits receive much-needed funding for critical campaigns from a wider community of supporters. Lenders select from a broader set of investment opportunities supporting worthy causes. LENDonate is the next generation impact investment.