Prudential and Nonprofit Finance Fund Announce Major Newark Nonprofit Initiative
NEW YORK, November 30, 2016 — Today Prudential Financial and Nonprofit Finance Fund (NFF) announced a new initiative to help 15 nonprofits serving the people of Newark, NJ, advance their missions through a unique combination of financing and leadership capacity-building.
During the summer, the Newark Resilience Initiative (NRI) provided financial-skills building clinics to the leaders of 30 Newark-based nonprofits. Now 15 of those nonprofits, selected through a competitive application process, are beginning a yearlong journey of customized consulting to help their leaders plan and problem-solve for the future. They can also apply for flexible capital grants, from a $1.5 million pool provided by Prudential, to help enact their plans, drawing on what they’ve learned from the consulting work.
“This combination of flexible capital and increased know-how is key to helping nonprofit leaders advance otherwise unachievable goals,” said Antony Bugg-Levine, CEO of NFF. “Through NRI, we will also help to raise the voices of Newark nonprofit leaders to share their challenges, experiences, and learnings to benefit many across the national social sector.”
Community-based nonprofits bring crucial programs and services to people in need, applying generosity, innovation, and resources to tackle complex social problems. But the number of people and communities who need help, and their needs, keep growing, and nonprofits face many financial and systemic hurdles between commitment and impact. In NFF’s most recent State of the Sector Survey, more than three-quarters of US nonprofits reported increased demand for services, more than half said they couldn't meet demand, and more than 70 percent of that half said their clients’ needs go unmet when they can't provide services. Despite the US economic recovery, nonprofits still struggle to survive, grow, and innovate.
When NFF conducted a special survey among Newark nonprofits, an even starker version of the national picture emerged, with fragile financial foundations reported by organizations providing human services, education, workforce development, arts and culture, and other crucial programs. Almost two-thirds of Newark nonprofits said they ended 2015 at breakeven or with a deficit, and 62 percent said they had three months of cash or less.
In recognition of Newark’s 350th anniversary, Prudential partnered with NFF to address these pertinent needs of nonprofit organizations in Newark. As urban populations grow, cities like Newark are under greater pressure. Prudential works with government offices, nonprofits, and businesses to invest in initiatives that help cities transform their infrastructure, education, and employment, especially in the company’s hometown of Newark. Since 2000, Prudential has been a supporter of NFF providing more than $3.5 million to develop and implement key strategies like the Newark Resilience Initiative.
“Prudential has called Newark home for more than 140 years. When times were hard, we doubled down on our efforts to help revitalize the city and strengthen local organizations as they provide critical services to residents,” said Lata Reddy, vice president of corporate social responsibility and president of The Prudential Foundation. “By partnering with NFF on the Newark Resilience Initiative, Prudential is continuing our support of Newark organizations to build their capacity and resiliency so they can sustain their impact over the long term.”
The 15 NRI Phase 2 participating nonprofits are:
- ASPIRA, Inc. of New Jersey
- Boys & Girls Club of Newark
- BRICK Academy and South Ward Children's Alliance
- La Casa de Don Pedro
- Greater Newark Enterprises Corporation
- Leadership Newark
- Lincoln Park Coast Cultural District
- Newark Arts
- Newark Museum
- The Newark Public Library
- Newark Symphony Hall
- New Jersey Institute for Social Justice
- Unified Vailsburg Services Organization (UVSO)
- Urban League of Essex County
About Nonprofit Finance Fund
Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice, and accessible insights. Founded in 1980, NFF helps organizations connect money to mission effectively through established and innovative approaches to social sector finance. A leading community development financial institution with over $250 million in assets under management, NFF has provided $620 million in financing and access to additional capital in support of over $2.3 billion in projects for thousands of organizations nationwide. NFF is headquartered in New York City and serves clients from five offices across the country.
About The Prudential Foundation
The Prudential Foundation is a nonprofit corporation supported by The Prudential Insurance Company of America, an insurance subsidiary of Prudential Financial Inc. of the U.S. The Prudential Foundation advocates for systemic change focused on eliminating barriers to financial and social mobility in the areas of connecting people to quality jobs, building personal assets and transforming communities. As a strategic investor, the Foundation makes long-term commitments that yield tangible results through both grants and program-related investments.