Bridge Fund (Loan): Short-Term Cashflow Support for NGOs

Many nonprofits face situations where donor funding has been approved, but disbursements are delayed. These temporary cash flow gaps can impact programme delivery, staff salaries, and day-to-day operations, despite funds being committed.

The LMP Bridge Fund has been created to help nonprofits navigate these short-term funding delays. Through interest-free bridge loans, the fund enables eligible organisations to continue operating smoothly while awaiting donor disbursements.

The initiative is supported by #LivingMyPromise, a community of philanthropic Indians committed to strengthening the social sector and supporting organisations working towards meaningful social impact.

Fund Overview

• Loan Amount: Up to ₹10 lakh per organisation

• Loan Type: Interest-free bridge loan

• Geography: PAN India

• Sectors: Open to organisations across sectors

• Application Window: 25 May - 30 June

The final loan amount will be determined by the selection committee based on the project's requirements and funding gap.

Why Apply?

The Bridge Fund is designed to help nonprofits:

• Continue programme implementation without disruption

• Avoid delays in staff salaries and operational expenses

• Maintain beneficiary services during funding delays

• Bridge the gap between donor approval and fund disbursement

Who Should Apply?

This opportunity is suitable for nonprofits that:

• Have an annual expenditure of ₹5 crore or less

• Have a signed MoU or funding agreement with a donor

• Are experiencing a temporary delay in receiving committed donor funds

• Require a bridge loan of up to ₹10 lakh

• Are seeking support for a project valued at less than ₹2 crore

• Have a project duration of at least six months

Applications supported by a Living My Promise (LMP) signatory or SVP member will be given preference during the review process.

Eligibility Criteria

To be considered, organisations must:

• Submit a copy of a signed donor MoU or agreement

• Request a loan amount that does not exceed ₹10 lakh

• Ensure the requested loan does not exceed 50% of the first donor disbursement tranche outlined in the MoU

• Apply for only one project under the fund

• Provide all required compliance and financial documents

Application Process

1. Application Submission: Submit the application form along with all required documents.

2. Eligibility Screening: The LMP team will review applications for basic eligibility and completeness.

3. Committee Review: Eligible applications will be shared with the Bridge Fund Selection Committee for evaluation.

4. Review Discussion: Selected organisations may be invited for a discussion with the committee.

5. Final Decision: Successful applicants will be informed of the committee's decision and next steps.

Required Documents

Applicants should be prepared to submit:

• Signed donor agreement/MoU

• Board resolution or authorised signatory approval for availing the loan

• Audited financial statements for FY 2024–25 and FY 2025–26 (if available)

• Post-dated cheque for the approved loan amount

• Registration and compliance documents, including FCRA documentation where applicable

For any questions regarding the fund, please contact: Susai Antony Raj (Phone: 8892216510,
Email: susai.livingmypromise@gmail.com)

Please note: The Bridge Fund is managed by a volunteer-led team. All information and processes are subject to change based on emerging requirements.