Fund Sourcing: Capital for Compassion works directly with a select group of private financial institutions to access tax credit allocations and affordable housing grants. Capital for Compassion has earned the trust of these financial institutions and can therefore bring our clients’ needs directly to those who can fund them.
Project Communication: As we facilitate access to private money, managed by professional financial institutions, it is essential that project summaries and supporting documents be strong and clear. We articulate our clients’ story, needs, and financial information into the format required by the funding sources to evaluate feasibility and make investment decisions.
Funder Relationship: Securing technical funding requires three things: 1) a good story to tell, 2) telling it well, and 3) a receptive audience. For years, Capital for Compassion has established and actively maintained positive relationships with the personnel at each of its funding sources. We understand how they think, and what they find compelling when evaluating funding requests.
Expertise: Technical funding has a steep learning curve, obscure terminology, and unforgiving schedules. Our team has developed the ability to maximize awards and net more dollars to a project (even after our fees) than clients would if they pursued funds on their own. For example, the first grant that Capital for Compassion obtained in 2003 was for $482,000. However, we later learned that we could have received $702,000. At the time, we did not know what we now know. Today, after $800 million in real estate development and $209 million in awarded funding, we have the expertise that most organizations cannot develop internally.
Financing Structure: Our funding sources typically have unique requirements regarding debt structure. Existing debt may need to be restructured, particularly when the property has been previously collateralized. Projects also often require interim and/or permanent financing. All of this gets further complicated when capital campaign pledges are a major source of funding, which traditional banks struggle to loan against. Capital for Compassion works with local and national lenders to structure financing that is compatible with the funding sources and suitable for our customers.
Fully Managed Funding Source: In addition to securing funding, Capital for Compassion continues to administrate awards and assets beyond initial funding. This includes construction reporting, funds disbursement, project completion reporting, and compliance reporting.
Organizational Capacity: Since our funders are financial institutions, they look at funding requests with the same scrutiny that they would evaluate a loan application. Sometimes, improvements in leadership systems, financial controls, and board management are necessary before pursuing funding. Capital for Compassion offers useful suggestions in this area to enhance our customer’s funding prospects.