Non-profit funds, no clear path - feeling lost

[Berna Geylani]

Dear Investor Community,

I'm reaching out in a moment of vulnerability. Following advice, I put $130K into a charity fund to start a 501(c)(3) non-profit. The goal was to buy property in California to help underprivileged groups like traveling nurses and women needing shelter.

We've created the non-profit, but I now regret not having a clearer path. California's housing prices are too high for our budget, and I'm at a loss.

I'm seeking your advice on alternative ways to use these funds for good. I'm looking for options that can generate cash to help our cause over many years. Any suggestions for impactful investments or initiatives that could provide sustainable support would be deeply appreciated.

Thank you for your wisdom and support during this challenging time.

P.S. If you have experience with non-profits or creative investing for social good, especially strategies that generate ongoing income, I'd be especially grateful for your insights.
Berna

[Kevin Sobilo]

@Berna Geylani, you have just learned how the government works or rather fails to work well. A chunk of money and no good plan for how to use it. It gets used ineffectively and the whole thing falls apart unless you can make MORE.

A few observations:

1. I have NEVER heard traveling nurses called an "underprivileged" group. I mean, they make a lot more money than the average person and they pick and choose their assignments/contracts. So, they shouldn't be stuck in a bad situation.

2. You wanted to buy property. As you know property is expensive and you don't have a business running that generates revenue. So, to get funding, you probably need some kind of asset based lending where the lending is focus on the value of the asset and the ability of the asset to generate income. 

With asset based lending you will have some advantages and some cons. The obvious advantage is property taxes. As a nonprofit, I believe in most places you will be exempt from paying them. So, that will help. On the negative side you will need to show how you will use the property to generate sufficient income. With high property prices that is not easy to do and also be able to offer housing to anyone at any great discount.

Keep in mind that landlords in expensive markets aren't making an profit (cash-flow) on rent. So, even if you could get a down payment and loan for a property, you would LOSE money even at high rental rates until you ran out and got foreclosed on and still not be giving anyone a break on rent prices.

4. A simpler but maybe less sexy option is to give the money away until its gone. Offer rental assistance to people facing eviction so they don't become homeless OR simply donate the money to organizations already doing that work.