Tax Senior Manager Ariana Warren explained the benefits of debt-financed income for nonprofits, and how to calculate it, in an article for Bloomberg Tax.
By Ariana Warren, Senior, Tax & Business Services
This income stream requires little to no time and is measurable, reliable, and typically timely with minimal ongoing effort for evaluation. The surplus created is income apart from contributions that typically require solicitation, apart from program service revenue that requires active service in the field. And unlike grant income, it doesn’t require writers or maintenance of debt covenants.