Most nonprofits don't pay enough attention to the subject of capitalization, but it can silently undermine their effectiveness more consistently than factors given far more attention. Find out more about the concept of capitalization and its importance in this monograph from the Nonprofit Finance Fund.  Presents a framework termed the Iron Triangle about the need for balance and strength in 1 mission and program, 2 capital structures, 3 organizational capacity.

Work-in-progress monograph from the Nonprofit Finance Fund based on their ongoing research and development. It illustrates observations about the effect of capital structure on nonprofits and the relationship of capital structure to program and capacity-building. Understanding the impact of capitalization can assist nonprofit managers and their funders to better plan for growth and change.