With the credit markets tight and the variable rates jumping from 3 percent to 11 percent, nonprofits are in a financial squeeze.  The credit market is not acting rationally and has frozen just about every sector in some way.  An approach proposed was to allow a nonprofit to bid on its own bonds.  This effectively allows for manipulation by the seller of the bonds and the recent financial market problems should have taught all of us that there should not be more possible ways for manipulation allowed, regardless of the type of organization.  If a nonprofit has sufficient monies to bid on its own bonds then why create more debt.  Since most of the bonds are related to hospitals and schools the reason for the bonds is to pass on the debt to the consumer even if they raised the money already.    The cost is passed on to individuals in the form of higher medical costs and tuitions.

This entry was posted on Tuesday, March 11th, 2008 at 12:01 am and is filed under Fundraising, Corporate Giving, Program Development, Strategic Planning, Budget Development, Proposal Development. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.