Lending to Non-Profit and Religious Organizations

Lending to Non-Profit and Religious Organizations

Friday, May 7, 2021
11:00 am – 1:00 pm Eastern

Non-Profit Organizations (“NPO”) generally comprise a smaller percentage of outstanding loans on the books of community banks however, they represent a risk that are quite unique. Bankers are not required to become an expert in this type of lending because the number of opportunities are few however, when you are approached with a request, you must know how to underwrite them. Most of these loans are extended to Non-Profit Organizations and Religious Organizations.

The skills required to understand and underwrite the credit risks involved in this type of lending is quite different from lending to For Profit Organizations. Unlike conventional loans, Non-Profit Organizations and Religious Organization loans have a higher risk level because they are typically un-guaranteed; the collateral is considered “Special Purpose” with limited resell value; the primary source of repayment is dependent upon contributions from donors and parishioners whose behavior is often volatile due to a disagreement of the organization’s direction or support is affected by a weak economy. Another risk factor includes financial statements that may not follow Generally Accepted Accounting Procedures.

This course will cover the major lending risks related to this type of financing and discusses how a bank can prudently manage these risks by exposing participants to the appropriate methods of analyzing and lending to Non-Profit Organizations and Religious Organizations.

This course will also review Statement of Financial Accounting Standards 117 (now Accounting Standards Codification 958) Required Financial Statements Presentation for NPOs). This Standard replaces Fund Accounting, which was used previously by NPOs for many years.

Topics Covered:

After completing this course the participant will be able to:

  • Identify and understand the primary differences between the accounting principles for NPOs and the accounting principles for FPOs.
  • Identify the basic information required to analyze Non-Profit and Religious Organizations
  • How to Analyze the financial statements and other information available from Non-Profit and Religious Organizations
  • Utilize key ratios used specifically for Non-Profit and Religious Organizations
  • Identify the risks of lending to Non-Profit and Religious Organizations
  • Structure loans to minimize the risks associated with lending to Non-Profit and Religious Organizations

Who Should Attend? 

Commercial Loan Officers, Consumer Loan Officers, Senior Credit Officers, Loan Review Officers, Compliance Officers, Branch Managers, Credit Analysts, Loan Support Personnel

Instructor

Jeffery Johnson

Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.

Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.

Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled "Lending to Service and Other Professional Organizations" for RMA in 2001.

Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.

Attendance verification for CE credits provided upon request.

Webinar Sponsored by OnCourse Learning (Total Training Solutions)

If you are having issues with registering online, please contact CBAO's Education, Training & Special Event Coordinator, Patti Webb, (614) 610-1877.

Registration Options (Member/Non-Member Pricing)

Live Plus Five ($265/$400) – Attend the live event and receive five business days of unlimited access to the OnDemand Playback and links to presenter materials and supplementary handouts.

Live Plus Five (Additional Hookup) ($175/$265) – Registering another banker from a different location for Live Plus Five.

OnDemand Recording ($295/$450) – Receive unlimited access to the OnDemand Playback for 6 months and links to presenter materials and supplementary handouts. This option does not include live session attendance.

CD-ROM ($345/$515) – Receive the webinar recording on a CD-ROM 7-10 business days after the Live event or your registration date (whichever is the latter). Receive unlimited access to the OnDemand Playback for 6 months and links to presenter materials and supplementary handouts. This option does not include live session attendance.

Live Plus Six ($365/$545) – Attend the live event and receive six months of unlimited access to the OnDemand Playback and links to presenter materials and supplementary handouts.

Premier Package ($395/$600) – Includes all three base options. Live attendance, OnDemand Playback for six months, and the CD-ROM.

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