Beyond the Grant: What Funders Really Look For and How to Attract Flexible Capital

Grants aren't your only option.

If your organization is growing or scaling, you may need financing that gives you room to breathe—capital that moves with the flexibility needed to embark on your next chapter. That’s where patient loan products and innovative capital come in.

Funders Are Underwriters, Too

Let’s get something clear: nonprofit funders are acting as underwriters.

They may not ask you to explain every vague line item on your P&L to your face—but trust, they’re discussing it behind closed doors. They’re not just evaluating your mission. They’re quietly assessing your risk, your outcomes, your leadership, and your overall strategy.

Whether in philanthropy, banking, or insurance, an underwriter’s job is to determine whether an organization is a responsible, strategic steward of capital. That means looking at your financial health (cash flow, reserves, revenue mix), your track record of impact, your internal operations, and how you manage risk.

Unlike lenders, funders don’t take on financial risk—but they do take on reputation-al risk. They need evidence that you’re not only doing good work, but that you’re doing it well. Evaluation metrics help them:

• Track internal progress

• Justify continued investment in your work

• Advocate for funding similar organizations

Even if you don’t have to repay a grant, you still need to demonstrate that you’re a reliable investment. That means showing up with clarity, strategy, and measurable results.

What Is Patient Capital?

Patient loan products are flexible, mission-aligned financing tools designed to support nonprofits—not burden them.

They offer a different experience than traditional loans and may include:

• Lower interest rates

• Flexible or deferred repayment schedules

• Revenue-based repayment structures

• A focus on outcomes, not just financial return

These tools are especially helpful for nonprofits undergoing growth, launching new programs, or facing cash flow challenges. At Working Within, we believe patient capital can unlock potential in organizations that have historically been overlooked by traditional lenders.

Who’s Offering Patient Capital?

Many of these products come through partnerships with foundations, Community Development Financial Institutions (CDFIs), and impact investors. National players like LISC, Stearns Bank, and Nonprofit Finance Fund are already working to equip nonprofit leaders with capital designed for their realities.

Locally, two Denver-based resources stand out:

1. Metro Denver Nonprofit Loan FundThis fund—backed by The Denver Foundation, Community First Foundation, and Rose Community Foundation—offers zero-interest loans to nonprofits in the region. Designed to support organizations during transitions or financial disruptions, it’s administered by Nonprofit Finance Fund and serves as an important bridge to stability and growth.

2. Impact Development Fund (IDF)Based in Colorado, IDF offers flexible financing for nonprofits advancing affordable housing, health equity, and economic development. If your organization serves under-resourced communities, they’re a CDFI worth knowing.

We’re also energized by catalytic partners like Impact Charitable, who blend funding sources to design custom capital tools. As fiscal sponsor of the Dearfield Fund for Black Wealth, they’ve shown what’s possible when funding is structured to meet community needs.

But there's still a catch.

Lenders and funders alike want to know: Can we trust this organization to manage funds wisely? That’s where fundability comes in.

How to Increase Your Fundability

Even as a nonprofit leader, you're making investment decisions every day—just not for profit. Fundability is your organization’s ability to show it can responsibly steward capital. Here are six key areas to strengthen:

1. Make a Compelling Case for Capital: Clearly define your mission and vision. Support your work with community data and articulate the problem you're solving. Funders want to see that your programs are well-defined and based on a real, documented need.

2. Demonstrate Operational Readiness: Funders look for signs that your organization is structurally prepared to manage and grow capital. A full-time executive, an engaged board, and sound financial records (like 990s and clean bookkeeping) help build confidence.

3. Show Financial Clarity and Responsibility: Ensure your budget reflects your priorities. A program-centered budget, diverse revenue streams, and external financial oversight (through an accountant or bookkeeper) can go a long way in building funder trust.

4. Communicate Your Value Proposition: Be ready to explain why your organization is uniquely positioned to do this work. Highlight what differentiates you—whether it's innovation, your track record, or your deep ties to community.

5. Tell a Strategic Story: Your impact story matters. A Theory of Change, compelling visuals or pitch decks, and a recent impact report that combines data with human stories will help others see and believe in your mission.

6. Plan for the Road Ahead: Show that you’re not standing still. A thoughtful three-year strategic plan, clear internal development goals, and strong partner relationships communicate that you’re growing in the right direction.

Ready to Take the Next Step?

At Working Within, we offer a Fundability Assessment to help you identify strengths and gaps—so you can position your organization for capital that moves with you.

Whether you're preparing for patient capital, grants, or future fundraising campaigns, the time to prepare is now.

→ Access our Fundability Checklist 

→ Schedule a conversation with our team

You’re likely more fundable than you think!