Worcester Business Journal

8 Worcester Business Journal | May 18, 2026 | wbjournal.com typically relies on fundraising, grants, and distributions from endowments, all of which can vary from year to year. By design, they don't have profits, so they don't necessarily have money to draw on if their cash flow were to dry up. "It is important to under- stand the business and how they get paid," said omas Galvani, executive vice president and chief retail banking officer at Fidelity Bank. "To help nonprofits, it is helpful to see them similarly to for-profit businesses." Cash flow and cash on hand are the big determin- ing factors when making loans, Galvani said. e best nonprofit clients will have a long history of fi- nancial stability, reliable sources of revenue, and perhaps large endowments to fall back on. "Being a mutual bank, we want to support nonprofits in our community as much as possible, so we will service them where we can," O'Connell said. If a nonprofit is newer or doesn't have a strong financial history to justify a loan, Fidelity will establish a relationship with it similarly to any new business. e nonprofit can open an operating account so it can have basic financial services and build a rapport with Fidelity's team. Clinton Savings Bank will partner with institu- BY BRAD KANE WBJ Editor F ounded in the basement of a Hopkinton home, the nonprofit Project Just Because moved locations five times in its first 24 years of existence as demand for its ser- vices grew and space became too tight. "I always wanted to buy a building, so our legacy would have staying power," said Founder and Presi- dent Cherylann Lambert Walsh. at staying power arrived in 2022 when Natick-based Middlesex Savings Bank provided a mortgage enabling Project Just Because to switch from renting facilities to buying three commercial condominiums for $2.1 million on South Street in Hopkinton, totaling more than 16,000 square feet. e nonprofit went from serving 40 families per week to 950 at the new facility, providing food, clothing, and household items to those in need, fulfilling Lambert Walsh's vision when she started the nonprofit with her young chil- dren in 1998. "e numbers have changed through the years. ere is more need than ever," she said. Because nonprofits have non- traditional financial structures, banks oen have to get creative to provide them with enhanced financial services. Yet, nonprofits can become excellent bank clients, especially those with established cash-flow history. With more than 40,000 nonprofits operating in Massachusetts, they can make up significant portions of banks' commer- cial loan portfolios. "Nonprofits in general are considered higher risk," said Sean O'Connell, president of Fidelity Bank in Leominster. "ey can be trickier, because so many considerations go into them." Overcoming financial risk When a for-profit business needs a commercial loan, a bank can assess its financial risk by evaluat- ing the company's revenue, cash flow, operational history, and profit-and-loss statements. Business owners oen will provide equity and a personal guarantee, putting up assets like their homes in case the business defaults on the loan. "It really is the cash flow and the collateral," said Mary Dean, president and CEO of Clinton Savings Bank. Nonprofits don't have owners, so no one can pro- vide a personal guarantee of collateral. eir revenue PHOTOS | BRAD KANE Thomas Galvani, chief retail banking officer at Fidelity Bank Banking nonprofits Community banks find ways to finance nonprofits despite their lending and revenue challenges Sean O'Connell, president of Fidelity Bank Mary Dean, CEO and president of Clinton Savings Bank Project Just Because Founder Cherylann Lambert Walsh (center) works in the nonprofit's warehouse with volunteers David Hayes (left) and Jim Woodman.

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