Capital Access of Nonprofit Organisations
- Australian National University
- Publication Type:
- Journal Article
- Agenda, 2007, 14 (2), pp. 99 - 110
- Issue Date:
The recent sales by the Salvation Armys Southern Territory and the St Vincent de Paul Society in NSW of their nursing homes point to a wider problem faced by many parts of Australias nonprofit sector. Faced with the need for considerable new capital investment to ensure their accommodation met new aged care standards to be introduced in 2008, and recognising the challenges that such capital raising would entail, these two leading nonprofit organisations chose to pass the problem to others that could handle it in the case of the Salvation Army a consortium containing Macquarie Bank and a large for-profit aged care provider (Macquarie Bank, 2005; Horin, 2006). Many other nonprofit organisations that over the past fifty years have built facilities such as hospitals, aged accommodation, child care and schools face similar needs to refurbish or reposition these assets and similar challenges in accessing the capital needed for the task. Capital is either difficult to raise or is inaccessible. Of greater importance perhaps, many successful nonprofits are constrained from expansion by difficulties in raising capital and many potentially important social innovations are strangled by their inability to raise start-up capital.
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