When Nonprofits Run Aground

By: Marv Pearlstein
– GlobeSt.com

Special considerations come into play when nonprofit organizations want or need to engage in real estate transactions. With very few exceptions, nonprofits have a focus on something entirely unrelated to real property. Whether their mission is educational in nature, is health related, is directed to social issues, or addresses other needs, the typical nonprofit's real estate dealings are ancillary to its purpose. Thus, in such dealings, the nonprofit staff members are usually on unfamiliar terrain. While this is also true of many for-profit enterprises, the nonprofit's tolerance for risk and appetite for creative or alternative deal structures may be set much lower than would be the case for a business whose core mission is generating profits.

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