The Price of Nonprofit Debt | Nonprofit Quarterly: "Nonprofits have as many opportunities as anyone else to make fatal or at least seriously hobbling errors when it comes to the details of debt transactions and the projections on which they are based. The New York Times reported (for instance) that Cooper Union in New York City “borrowed $175 million for 30 years at a rate of 5.75 percent and then spent most of the proceeds on a lavish new building while continuing to run operating deficits. It also agreed to a prohibitively expensive prepayment penalty, making it financially impossible to extricate itself from the terms of the loan.”2"
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