Monday, January 4, 2010

Borrowing as a Temporary Solution

Happy New Year!

Often times non-profit organizations need to borrow money to meet operating expenses, like many for-profit businesses. A prudent manager will see borrowing as a temporary solution. I think it is OK for a non-profit to borrow as long as the spending is income-based, that is there is reasonable assurance that income is sufficient to repay the debt. What are your thoughts about non-profits borrowing?

Jerry M. Stai, NRS, Minot

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