Riverside, CA – Non-profit organizations in the City of Riverside are now poised to benefit from a first of its kind resource, the Riverside Non-Profit Resilience Fund, which aims to mitigate the traditional challenges faced by non-profits in securing funding.
This initiative introduces a $2.8 million revolving loan program, a collaborative effort between the city and the Inland Empire Community Foundation (IECF), designed to bolster the financial foundations of the city’s non-profit entities.
As a show of support for the initiative, leaders from diverse local non-profit organizations publicly expressed that access to such financial support could help their organizations thrive.
The self-sustaining program will be funded with money from the federal America Rescue Plan Act, or ARPA. Local governments must encumber the federal funds by the end of this year and spend them by the end of 2026 or return the money to the federal government.
“The Riverside Non-Profit Resilience Fund can be a lifesaver for an organization that is doing great work,” Mayor Patricia Lock Dawson said. “The beauty of this approach is that, as the loans are repaid and the fund refreshed, even more organizations will be helped.”
“This is the kind of public-private partnership that will give our nonprofit sector a chance to innovate and grow. At IECF, we want to build a culture of philanthropy that gives the generous donors of the Inland Empire new ways to make impact. This fund will make that possible and we hope to expand impact investing for nonprofits across the Inland Empire, starting here in Riverside,” shared Michelle Decker, IECF CEO.
The initiative addresses a crucial gap in the current financial landscape for non-profits, often sidelined by traditional banking and financial institutions wary of the delayed funding cycles associated with governmental contracts.
“These funds will play a key role in supporting non-profit organizations as they serve and assist some of the most vulnerable members of our Riverside community,” Mayor Pro Tem Steve Hemenway said. “We look forward to the positive benefits this program will have for many years to come.”
Loan amounts under this program are anticipated to range between $150,000 and $200,000, with efforts underway to augment the fund through additional contributions.
The inaugural loans to be distributed towards the end of this year or the beginning of 2025.
“We are excited to use one-time ARPA funds for on-going growth and innovation with our nonprofit sector. Riverside’s City Council listened to around 30 organizations provide powerful testimony online and in-person sharing how beneficial this could be – we’re excited to build it with them and see how this idea could scale across the IE, starting with Riverside,” Decker said.