Philanthropic Loans: An Innovative Force for Positive Change
Avenue 360 provides critical, comprehensive health care services to Houston’s community members that are all too often underserved. Whether it’s pregnant moms, newborns, people living with HIV, or those struggling with depression, Avenue 360 provides in-clinic and virtual access to quality health care with compassion. With seven locations throughout Greater Houston, their clinics use a 360-degree approach to address medical needs and social and environmental challenges, like housing, faced by communities of color. Avenue 360 strongly believes that income should not determine the level of and access to healthcare, serving patients with and without insurance.
One day during this stressful season, Kenneth Bohan called Dr. Flash and immediately noticed she spoke to him with a heavy heart. After a brief discussion and niceties, Bohan cut straight to it, asking Dr. Flash what was weighing on her. Dr. Flash shared her difficult position with him, knowing he would have sage business advice as the former CEO and Founder of The Liberty Group and a longtime trusted supporter of Avenue 360.
After hearing about the situation that Avenue 360 was in, a nonprofit that Bohan fiercely supports, he asked her, “What if I give you a loan?” Dr. Flash was floored by his response and especially glad to have his vote of confidence in her and Avenue 360.
Bohan immediately called Greater Houston Community Foundation (Foundation) to discuss the process for a loan to Avenue 360 from his Donor Advised Fund. Bohan worked with the Foundation to set up a multi-year loan to Avenue 360 with very reasonable interest.
As of January 2023, the loan was established through Bohan’s Donor Advised Fund at the Foundation. As Avenue 360 pays back the loan, the payments go back to Bohan’s Donor Advised Fund.
Bohan and Dr. Flash are passionate about sharing their story of strategic philanthropy to inspire and create meaningful change with our donors and for our community. Bohan intentionally listened to Dr. Flash’s concerns and what Avenue 360 needed. In turn, Bohan became a strategic, vital partner to Avenue 360, creating philanthropic impact in a very innovative way. Many nonprofits throughout Houston and beyond are unaware that receiving a multi-year loan from a Donor Advised Fund is an option.
Continue reading: What is a donor advised fund?
“The advice and mentorship [from Bohan] is a powerful supplement to the dollars themselves and is of profound value. I believe the reward to be bidirectional and the legacy of service and support will provide robust impact,” stated Dr. Flash.
Conversely, many philanthropic Houstonians are unaware that they can engage in impact investing this way.
Bohan shared, “It can be a win-win situation. A win for the donor or a foundation and the charity or nonprofit. It also allows a certain degree of short- and long-term flexibility. This loan allowed me to support a charity I believe in, and it serves a specific purpose.”
The Foundation is no stranger to working with fundholders to establish a loan to a public charity from a Donor Advised Fund. The Foundation is pleased to share that, to date, there have been no defaults on loans made through a Donor Advised Fund at Greater Houston Community Foundation.
When you partner with the Foundation, you’re gaining a trusted ally in your philanthropic journey. Our team of knowledgeable philanthropic advisors provide personalized guidance and support, leveraging their extensive network and expertise to help you achieve your charitable goals.
Ready to start your journey? Reach out to learn more about how we can help you achieve your philanthropic vision.
More Helpful Articles by Greater Houston Community Foundation:
- What Are Qualified Charitable Distributions?
- What to Do with an Inheritance
- Philanthropy Without Compromise: Elevating Philanthropy for High-Net-Worth Individuals and Families
- Aunt E’s Radical Generosity
- Philanthropy Made Easy: 3 Do’s & Don’ts for Donor Advised Funds
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