Nonprofit Facilities Program

Related Pages

Non-Profit Facilities

Tax-Exempt Bond Financing Methods

The Commission's Nonprofit Facilities Program is a smart way to save money and maximize your capital campaign. Often, a capital campaign is not enough to cover the total cost of a project-particularly costs related to construction and capital improvements. A bond-backed loan may help you reach your goals sooner and more efficiently. Contact us (info at bottom of this page) and explore your options.
Download and Share Our Program Brochure (PDF)

How Does It Work?

You choose your own bank and negotiate your own terms. The lender buys the tax-exempt bond from us and passes the tax savings on to you in the form of a lower interest rate on your loan. No state taxpayer dollars are used. The Commission works with you and your lender every step of the way.

What Size Loans Are Financed?

The only limit is the amount your organization can afford to repay. We're here to help make your project possible with a cost-effective solution tailored to your organization's needs.

Typical Benefits

  • Borrow at a lower interest rate
  • More funds available for operations or endowment
  • Earlier construction
  • Less dependence on grants and other financing
  • Efficient use of donor gifts
  • Cash management flexibility
  • Begin construction sooner-avoid climbing construction costs
  • Keep more cash for operations or endowment

For smaller projects using STEP, savings are typically one to two percentage points below market rates. The interest rates are set by lenders and will vary among lending institutions. For larger projects, when borrowing typically exceeds $5-7 million, investment banks market the bonds to retail and institutional investors. In these cases interest rates are lower than for smaller projects, but the financing process is more complex and associated fees are larger. The borrower can still realize significant savings.

Eligibility

You can use bonds to purchase a building, land or equipment; build or renovate facilities; or even refinance existing debt-as long as the project furthers your nonprofit's mission. The Commission's Nonprofit Facilities Programs help 501(c)(3) organizations across Washington state buy, build, renovate, and refinance their community facilities. Learn more about eligibility.

Nonprofits That Have Been Served Include:

  • YMCA (20 statewide)
  • Northwest Railway Museum, Snoqualmie
  • Eastside Catholic School, Sammamish
  • Perry Technical Institute, Yakima
  • Spokane Valley Community Center
  • Seattle Art Museum Sculpture Park
  • Lutheran Community Services, SeaTac
  • Seattle Country Day School
  • Multi-Service Center, Federal Way
  • Goodwill Industries, Spokane
  • PAWS, Lynnwood
  • Pacific Science Center IMAX
  • NW Washington Pipe Trades Training Center, Burlington
  • St. Vincent de Paul of Snohomish County
  • Richland Health Sciences Center
  • TVW Media Center, Olympia

Nonprofit Facilities Financing Program - Client List (PDF)

Contact Us

To obtain the most benefit from this program, it helps to contact us as early as possible in the financing planning process. We often start working with nonprofits during the preliminary capital campaign planning stage. Many decisions made early on will affect your fundraising and financing flexibility.

Additional Resources

Nonprofit Association of Washington A state association of nonprofits whose mission is to build a strong, collaborative network of nonprofits serving Washington communities through advocacy, education and capacity building.