To build a strong future, it’s smart and responsible for Nebraska communities to reach for every opportunity they can. One key instrument for local betterment is the nonprofit community.
Across the state from Scottsbluff to Falls City, nonprofit organizations serve vital civic purposes.
Some nonprofits specialize in helping senior citizens, children or the disadvantaged. Others provide recreational opportunities. Still others offer cultural events and help celebrate local heritage.
Most states have strengthened their nonprofits by giving them the ability to use revenue bonds. This type of tax-exempt financing lowers the cost of borrowing and enables nonprofits to devote a greater share of their funds to providing services.
Nebraska already allows revenue bonds to be used for certain types of nonprofit organizations: for health care, public housing and private colleges.
On the May 11 ballot, Nebraskans will decide on Amendment 1, which would allow revenue-bond financing for capital improvements for other qualifying nonprofits -- the local YMCA, for example, or the county museum or the local Red Cross chapter.
Although a local government entity would issue the bonds, there would be no financial obligation for government or taxpayers. The debt payments would be borne solely by the nonprofit, with purchasers of the tax-free bonds bearing the risk.
A good example of such an approach is Goodwill Industries’ use of such financing for new construction in Council Bluffs. Iowa law permits this tax-free financing for nonprofits, and as a result Goodwill was able to shave several percentage points off its borrowing costs, with no obligation to local government.
We’ve written here many times about the need for Midlands communities to maximize their ability to strengthen their future. Amendment 1 would provide a practical additional tool for communities to help themselves.
Nebraskans would promote the public interest by voting FOR Amendment 1 on the statewide ballot.
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