Nonprofit Sector Fund
Additional Information
Guidelines and How to Apply
The Meyer Cash Flow Loan Program makes short-term (30 to 180 days) cash flow loans of up to $75,000 against fully approved government contracts and foundation or corporate grants. The loans are made on a first-come, first-served basis from a revolving fund of $1 million.Case Studies
Read examples of Meyer grantees who have used Meyer's Cash Flow Loan Program in the past.Primer for Nonprofit Organizations
In our experience, nonprofits excel at providing excellent programs that bring critical services to people in need. Because of the extraordinary demands on their time and energy, they don't always give their business practices and systems the attention they deserve. A significant number of nonprofits, for example, do not take advantage of a valuable tool that can help them better understand and manage their finances -- the cash flow forecast.Reporting and Evaluation
The Meyer Foundation requests and appreciates feedback from nonprofits that use the Cash Flow Loan Program. Download the reporting and self-evaluation form here.Cash Flow Loan Program
The Meyer Foundation Cash Flow Loan Program makes short-term (30- to 180-day) cash flow loans of up to $75,000 against delayed receivables from approved government, foundation, or corporate grants and contracts. Loans are made on a first-come, first-served basis from a revolving fund of $1 million. Loans enable the nonprofits to deliver services to clients, programs to audiences, and paychecks to employees without interruption on occasions when monies are promised but delayed.
Frequently Asked Questions
Q. Who is eligible to use the Cash Flow Loan Program?
A. Nonprofit organizations that have received a Meyer grant in the past four years are eligible.
Q. What are the loan terms?
A. Loans are interest-free, but carry a two (2) percent service charge deducted when the loan is made. If the loan is repaid in full within 90 days, one-half of the service charge is refunded. For loans paid within 30 days, three-quarters of the service charge is refunded.
Q. Why use the Cash Flow Loan Program?
A. The program provides a low-cost source of loan money to meet your organization's short-term cash flow needs. We can respond quickly, usually within a week. Cash flow loan staff will assist and counsel you, as needed, throughout the process. We can be creative in structuring lending terms that are flexible, workable, and reasonable.
Q. What is cash flow?
A. Cash flow is the movement or "flow" of cash (not promised contributions or grant applications that "look good" but actual cash money) into and out of an organization.
Q. Why is cash flow important to a nonprofit?
A. Nonprofits, like businesses or individuals, need enough cash on hand when needed to meet operating expenses. Since nonprofits usually have a high proportion of their expenses allocated to payroll, cash shortages can be particularly devastating.
Q. What are cash flow projections?
A. The cash flow projection is an internal management report -- and one of the most useful tools a nonprofit manager can have. The cash flow projection includes a detailed -- usually by month -- breakdown of the cash you expect to receive, the cash you expect to disburse, the difference between the two, and the resulting projected cash balance.
Q. Why are cash flow projections important to a nonprofit?
A. If prepared properly, the cash flow projection can provide a clear window into your nonprofit's actual operating financial situation over time. The cash flow projection can help you and your board identify potential negative cash flow situations, sometimes months in advance. This early warning may enable you to avert a crisis.
According to Keeping the Books: Developing Financial Capacity in Your Nonprofit Press by The Stevens Group, "the more advance warning you have of an impending negative cash flow situation, the more options you will likely have at your disposal. Such options might include: setting up a payment plan with your vendors; cutting back on some operating expenses; talking with a funder to see if a grant payment could be made sooner; or talking to a bank or cash flow loan program about the possibility of a cash flow (short-term, working capital) loan."
Q. How do I learn more about cash flow and projecting cash flow?
A. Read our cash flow primer here.