Earlier this week, I was catching up with a friend who serves on the board of a local non-profit. We got to talking about budgeting, fundraising, and the constant pressure to do more with limited resources.
One thing that stood out, like many organizations, they were holding a meaningful amount of cash in low-yield accounts. When I asked what that capital was earning, the answer was “not much.”
It’s a common situation, and it presents a real opportunity.
At Eppler Capital Funds, we work with organizations to generate consistent, fixed income through our promissory note fund, designed to provide dependable, contractual returns that can support long-term planning. We’re also having more of these conversations lately as non-profits look for ways to better utilize their reserves.
To put that into perspective:
A $250,000 investment at a 9% annual return would generate $22,500 in income each year, paid out as $1,875 per month.
For many non-profits, that’s meaningful, it could fund a program, support staffing, or reduce the pressure to raise additional dollars.
Why this matters for non-profits:
• Income generated is typically tax-free
• Predictable monthly income supports budgeting and planning
• Maximizes the impact of existing capital without additional fundraising
Accredited Investor Definition (Organizations):
A non-profit organization may qualify as an accredited investor if it has total assets exceeding $5 million and was not formed specifically for the purpose of making the investment.
Many established foundations, endowments, and non-profits already meet this threshold.
If you serve on the board of a non-profit, or know someone who does, I’d welcome a conversation. Even a brief discussion can help determine whether this type of income strategy could meaningfully support their mission.