Tax-Exempt Financing

Non-Profits

Access to capital is often the greatest hindrance to growth for non-profits.  If your non-profit is looking to finance a facility or equipment, you may have access to the low-interest rates found with tax-exempt bonds.

You can use tax-exempt bond proceeds to fund the cost of acquiring or constructing capital assets, interest during construction, and other costs of issuance.

Eligible Projects

  • Educational Institutions including Charter Schools
  • Community Centers
  • Senior Living Facilities
  • Healthcare Facilities
  • Any Facility used for activities related to the 501(c)(3) organization’s exempt purpose
Examples of Past Projects

Criteria for a 501(c)(3) non-profit to use tax-exempt bonds

  • 100% of the project financed must be owned by IRC Section 501(c)(3) organization or the government.
  • The bond proceeds must be used for activities related to a 501(c)(3) organization’s exempt purpose.
  • No more than 5% of the net proceeds may be used for private trade or business.
  • No prohibitied facilities (skybox, retail liquor, gambling, etc.)
  • Read more about the general rules of non-profit eligibility
Maricopa County IDA

Marc Freestone Day Activity and Senior Center $6,900,000

Non-Profits

Marc Community Resources used tax-exempt bonds to expand their ability to provide services to children and adults with developmental and, physical disabilities and behavioral health challenges.

See more details