Nonprofit Sector

Hidden in Plain Sight: Understanding Nonprofit Capital Structure

March 1, 2003

Capital structure is the distribution of an organization's asset, liabilities and net assets. Every organization has one, so ignoring it can be risky. This monograph highlights capital structure as a critical driver of mission and programs, as well as organizational capacity. It also illustrates how funders often inadvertently contribute to the undercapitalization of nonprofits and suggests ways of reversing poor funding practices.

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Author: Clara Miller, Founder, Nonprofit Finance Fund

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