The Need for Capital Incubator

Nonprofit organizations find it increasingly difficult to secure and maintain stable and affordable, space. In boom periods, commercial real estate prices rise, inflating rents, reducing vacancy rates and pushing nonprofit organizations into the margins. In periods of downturn, funding that typically covers rent and infrastructure becomes scarce. Nonprofit organizations, particularly those that serve low-income communities, are faced with complex decisions as they confront both lack of space and diminishing resources, combined with an increased need for their services.

The leadership of most nonprofit organizations is relatively inexperienced in real estate and capital development. While funders offer grant support for capital planning and bricks and mortar, they don’t provide hands-on consulting services for the day-to-day decisions involved in planning, working with strategic partners, understanding real estate choices and researching financing and fundraising options.

While there are a number of consultants who do address aspects of facilities or capital development -- fundraising consultants, feasibility consultants, brokers, project managers, financial advisors -- few have an overall view of the predevelopment process. Capital Incubator’s services are informed by an integrated approach to addressing all the aspects of a project, and to determining readiness and the unique course of action required to successfully complete a facilities development project.

Strategies

The underlying premise of Capital Incubator’s work is that the internal capacity, programs and mission of nonprofit organizations are strengthened through the successful completion of facilities development projects.

Capital Incubator incorporates the following strategies into its work:

• Educate organizational leadership about facilities development and its potential impact on operations.
• Maximize the planning process to ensure that organizations are ready to take on and support growth.
• Consider all options for facilities development, including strategic partnerships and multi-tenant buildings.
• Leverage all aspects of a facilities development project to build organizational resources, infrastructure, fundraising capacity and financial literacy.

Staff

Andra Lichtenstein founded Capital Incubator in 2002. She has over thirty years of experience in the nonprofit sector as a development director, executive director, board member and financial advisor. She has worked collaboratively with foundations, financial institutions, intermediary organizations, affordable housing organizations and government agencies.

Prior to founding Capital Incubator, Andra was Assistant Vice President at Cain Brothers, a national investment banking firm where she coordinated the processing of tax-exempt bond financings for nonprofit capital projects ranging from $12 million to $66 million. She also worked with organizations to provide consultation in fundraising, development and operations; to provide project coordination for the predevelopment phase of construction, including land use and architectural design phases, and to combine tax-exempt bond financing with a capital campaign.

Andra previously worked for ten years as Planning and Development Director of LifeLong Medical Care, a community health center in Berkeley. At LifeLong she oversaw the development of a $7 million health care and supportive housing capital project for the Over 60 Health Center. As well as arranging and managing the tax-exempt bond financing for the project, she provided project management during both pre-development and construction phases, negotiated with government agencies and directed the capital campaign, raising substantial government, foundation, corporate, and individual donations. She also oversaw the conception and realization of a public tile installation at the building, and the purchase of original artworks.

Andra serves as an advisory member of the Real Estate Committee of Tides Shared Spaces, part of the Tides Family of Organizations.  She capitalized, built, opened and operated Saul’s Restaurant and Delicatessen in Berkeley.

Capital Incubator Staff includes independent consultants who are experts in the areas of capital campaigns, financing, organizational development and strategic planning for facilities development projects.

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