News & Event
The Community Foundation of the Holland/Zeeland Area’s (CFHZ’s) Line of Credit (LOC) Guarantee Program allows nonprofit organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code, are serving a charitable purpose in the greater Holland/Zeeland area, and had a 2019 operating budget in excess of $500,000 to apply to have a CFHZ guaranteed line of credit established through West Michigan Community Bank.
CFHZ’s Line of Credit Guarantee Program has a total cap of $2 million, so we anticipate being able to partner with 10-15 nonprofits through this program. Please note – as with CFHZ’s competitive grantmaking program, religious organizations that advocate specific religious doctrines through their programs, or do not serve the broader community, are not eligible.
Those nonprofit organizations accepted into this program by CFHZ will then be connected to West Michigan Community Bank (WMCB) to establish their line of credit account. Since CFHZ is guaranteeing this line of credit, the nonprofit will not have to put forward any collateral, nor will the nonprofit go through a traditional underwriting process.
In addition to guaranteeing the LOC, CFHZ will provide reimbursement to the nonprofit for all interest that the nonprofit has paid on the LOC during the first 2 years, up to 4% per year. During the third year that the LOC is open (third year is open for repayment only), CFHZ will not be reimbursing interest costs paid by the nonprofit. Here are some additional details on how the interest reimbursement will work:
CFHZ has been listening to our partners as they describe the significant cash flow challenges being experienced so suddenly due to loss of revenue and increased demand for services during this pandemic crisis. We have heard that significant decisions need to be made quickly, and without a lot of clarity as to what the next 3-12 months are going to look like.
In response, we are launching this new program as a way to further leverage our Community’s Endowment assets to support some of our mid-to-large nonprofit partners and preserve critical community capacity in this time of extraordinary need.
Here is what we hope the program will accomplish:
We understand that this is likely not going to prevent nonprofits from having to make tough choices down the road, as this isn’t grant money, but it will hopefully provide nonprofits the gift of time to make those choices and the option of choosing to spread the difficult decisions out over a multi-year period.
We also acknowledge that by only allowing nonprofit organizations with budgets over $500,000 to apply for this program that this tool is for a limited portion of our nonprofit sector. We recognize that many of our smaller nonprofit organizations are doing very important and critical work as well and want to be clear that this particular program is only one tool in our toolbox.
In addition to this LOC guarantee program, we are utilizing the Emergency Human Needs Fund to deploy capital over a six-week period to organizations providing emergency basic needs services, and we will be re-working our competitive grantmaking strategy for the remainder of 2020. We anticipate our new competitive grantmaking framework and process to be announced in June when we have a better sense of how the federal stimulus funds have supported our community members in need and our nonprofit partners.
Please note – participating in this Line of Credit Guarantee program does not preclude an organization from receiving a grant from CFHZ. This is an entirely different process and tool.
Applications will be reviewed by a joint taskforce of CFHZ Distribution Committee and Program Related Investment (PRI) Committee members with support from CFHZ staff. The review committee will be choosing organizations based on the following priorities:
Step 1: Submit your CFHZ line of credit guarantee program application via the following link by April 24, 2020:
You can use this PDF as a worksheet to view all questions in preparation for submitting the application form online.
The PDF worksheet shows you the “word count” limits for each question, but you do not need to use all the words, and lists are fine. In addition to the PDF worksheet that shows the “open ended” questions in the application, you will also be asked to submit attachments as follows:
LOC GUARANTEE PROGRAM APPLICATION
Step 2: CFHZ will reach out to the contact listed for your organization as close to May 4 as possible with our final decision as to whether your nonprofit has been accepted into the program. We may reach out to you ahead of this date if additional information is needed alongside your application.
Step 3: If your nonprofit is approved to be included in this program, CFHZ will provide your organization it’s Line of Credit dollar approval limit, and will connect you to West Michigan Community Bank in order to establish your line of credit account via a separate application (which will NOT involve collateral or underwriting).
Step 4: At that point, any ongoing communication and reporting requirements will be between the nonprofit organization and their assigned contact at West Michigan Community Bank, with CFHZ being involved only in reimbursing interest every 12 months for the first two years.
Unlike our competitive grant program, you do not need to contact CFHZ prior to completing this Line of Credit Guarantee application. However, if you do have additional questions about the program or application, please contact Mike Goorhouse at firstname.lastname@example.org or 616-994-8855.
The Community Foundation of the Holland/Zeeland Area is pleased to announce the awarding of 17 grants totaling $568,604 from the Community’s Endowment in 2019.
We are pleased to announce the first and second round of grant distributions from the Community Stabilization Fund. Our efforts are designed to act swiftly, be flexible as new information emerges, and take into account the range of other supports that have come into our community from both public and private sources. The Community Stabilization Fund targets three priority areas that were identified in conversations with local nonprofit partners: financial stability, health, and education. To date, $950,000 has been committed to the fund! This includes a $200,000 investment from the Community’s Endowment combined with generous gifts from local donors.
The first round of grant distributions, made in June, focused on the priority area of financial stability. A total of $115,000 was invested to launch the Greater Holland/Zeeland Area Direct Cash Assistance Program. This effort provides $500 emergency unrestricted cash relief to eligible local individuals who have lost their jobs or are experiencing significantly reduced hours of paid work due to the COVID-19 crisis.
Since the start of the pandemic, various federal stimulus bills have transferred funds to people who have lost their jobs, and to lower/middle income families in general; but there are individuals and families in our community who haven't yet received those funds, or may not be eligible to receive them. These friends and neighbors are struggling to meet their basic day-to-day needs.
CFHZ and some of our generous donors, alongside key community organizations who serve these populations, explored a variety of options to assist those who are falling through the cracks of our existing support systems. Collectively, we identified a direct-cash assistance program, partnering with a national organization called Family Independence Initiative (FII), as a key strategy to serve our vulnerable community members. We granted $100,000 to FII to establish the program, and an additional $5,000 each to our core partner agencies for administrative support to implement the program. We're delighted to share that generous local donors contributed an additional $500,000 for a total cash assistance funding pool of $600,000!
We have partnered with three local organizations who will identify those individuals who quality for the program: Community Action House, Good Samaritan Ministries, and Movement West Michigan. Each of these partners has further engaged their network of partner churches, grassroots organizations, and neighborhood community organizations to extend their reach to as many families as possible.
To be eligible for the Greater Holland/Zeeland Area Direct Cash Assistance Program, individuals must:
To date, the Direct Cash Assistance Program has directly impacted 600 individuals. We're deeply thankful to the generous local donors who have contributed towards these efforts.
Good Samaritan Ministries recently received funds from the Michigan State Housing Development Authority (MSHDA) to launch a six-month Eviction Diversion Program which will use a collaborative court process model, bringing together the courts, Legal Aid, mediation, tenants and landlords to provide lump sum payments to landlords in exchange for allowing tenants to remain in their homes. The Community Stabilization Fund grant will support GSM’s efforts to scale up capacity and ensure robust program delivery and services to divert hundreds of families from potential homelessness and provide a path back towards thriving in our community.
This grant will support ODC Network’s partnership with the Ottawa Area Intermediate School District and Holland/Zeeland area districts to provide schools and teachers with support, resources, and training on activating outdoor spaces and utilizing outdoor learning as a means to lower school building population density and increase social distancing while providing safe, meaningful, and engaging learning experiences for students. This effort will increase the chances of more children being able to safely attend school in person, which is beneficial for all children’s learning, but especially for those children who were already struggling in school and who likely experienced even greater learning loss due to the remote learning transition last spring followed by summer break.
Ready for School, in partnership with area schools, rapidly adapted their highly successful kindergarten readiness program to offer the four-week experience in a modified format this summer. Given the unique challenges facing this year’s incoming kindergartners and their families, this grant will support continuing the program into the fall to complement and enhance whatever format in which schools are able to provide kindergarten. How well this critical first year of school goes for these students will have a long-lasting impact on the trajectory of their learning and this investment will help ensure they have the strongest kindergarten experience possible in an inherently difficult environment.
CASA provides elementary school students who are struggling academically with a structured educational support program to achieve their learning goals. CASA pivoted quickly this summer to continue providing students robust learning opportunities in an effective and meaningful way despite new constraints. This grant will invest in the follow-up effort to re-imagine what Fall CASA programming looks like, particularly as the organization works to incorporate Hope College Education Department students who typically serve as one-on-one tutors during the school year in a new format.
This grant will allow Family Hope Foundation to expand their therapy scholarship program for Holland/Zeeland area children with special needs and learning disabilities to help them regain progress and milestones lost due to recent interruptions to schooling and support services. The program works collaboratively with a broad network of providers to find customized supports that will best serve each individual student’s needs.
Outdoor Discovery Center - ecoSystem Education Network
Macatawa Area Coordinating Council - Creating a Green Infrastructure Vision for the Macatawa Watershed
Ladder Homes - Housing Capacity Expansion
Goodwill Industries of West Michigan - Holland/Zeeland Career Training Center
Beacon of Hope - Building Campaign
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Join us to hear from President/CEO Mike Goorhouse and Vice President of Community Impact Elizabeth Kidd. This event features highlights of our recent grant impact and other community improvement efforts happening in the local nonprofit sector.
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