Portland's Feed the Mass, is a Pioneer in Nonprofit Financing
How a Portland nonprofit meal provider overcame its financing dilemma and is looking to double its meal production capacity
NOTE TO READERS; I am not affiliated in any way with Feed the Mass or their web portal, SMBX. I am not paid by either party I provide this information as educational material only, there is no endorsement nor recommendation offered or implied.
The JOBS Act of 2012 usured in a new era in small business financing. It took several years for effective regulations to be implemented in March of 2021. As a result, this new funding opportunity is still in its infancy and ideas and applications still being uncovered. One trend is the increasing use of Reg CF, one of the new internet financing options, for companies to issue bonds instead of equity. It is increasingly popular option among business owners looking to finance their growth without selling off part of the company.
According to KingsCrowd, 34 Of the 97 new Reg CF filings with the SEC In April 2024 were debt offerings.
A New Option For Nonprofits Too
An interesting, and here-to-for, a very rare use of Reg CF, is for nonprofit organizations to issue debt. Here in Portland one such nonprofit company is doing just that, a true pioneer, Feed the Mass,
Obviously, nonprofit companies cannot use Reg CF to issue equity/stock but when Jacob Valentine, the founder and executive director of Feed the Mass consulted with SMBX, an internet funding portal specializing in bonds, he realized that issuing a bond through a Reg CF offering would be the ideal answer to his problem and a valuable opportunity for his community.
Jacob shared with me that he sees this financing concept as a potential game changer for other nonprofits as well.
Feed the Mass is a need driven nonprofit that serves other agencies feeding a wide range of people in need. New mothers, disabled, seniors, homeless and disadvantaged children as well are communities served by a variety of agencies, these agencies in turn contract with Feed the Mass to provide the fresh, healthy meals they need for their clients.
Bond Specialist Crowdfunding Portal
Working with the team at SMBX, an internet portal that specializes in debt offerings, Feed the Mass is in the process of raising as much as $124,000 to reach their goal of doubling the current production of 4000 meals a week to 8,000. To achieve this the management team at Feed the Mass has plans to add a second kitchen to streamline the production process and increase the number of employees from 11 to 15.
Before connecting with SMBX, Finding the financial resources to achieve this goal had seemed out of reach. But Jacob and SMBX put their heads together and with the communities help it soon will be in place.
With years of experience in funding the nonprofit through donations and grants Jacob sees this idea of offering the interest-bearing bonds as a win win. “People are getting tired of being asked for donations, sure they see a value in what we do for the community, but with the bonds, they get something back personally. It builds an even stronger connection with our supporters”
Each bond unit costs $10, so now instead of giving $10 or $50 or $200 dollars, supporters are investing that money, the expectation is they will receive monthly principal and interest payments. It builds a stronger community. You can find details on Feed The Mass offer here .
Investments Have Risk
It is an investment, and it has substantial risk. Unforeseen event could make the investment worthless, before you invest read and understand the Bond prospectus and SEC filings. Also, keep in mind there are investment limits for most investors as to how much you can invest in these types of investments. Before investing more than you would have otherwise donated, it is best to consult your investment advisor.