> Nonprofits in California are allowed to take out loans to acquire capital.
Just as point of clarification, California non-profit corporation law wouldn't apply to Public Interest Registry. It is formed and domiciled in Pennsylvania. That said, Pennsylvania law appears to permit non-profit corporations to take on debt in the same way that any other corporation formed under PA law can do (subject to rules found in the organization's bylaws or formation documents, which I've not read for PIR). Title 15 of Pennsylvania's consolidated statutes, section 5502(6) reads that a non-profit corporation has the authority "[t]o borrow money, issue or incur its obligations and secure any of its obligations by mortgage on or pledge of or security interest in all or any part of its property and assets, wherever situated, franchises or income, or any interest therein."
I can't think of a reason why PIR, with a surplus of annual income, would have any trouble receiving a loan from any number of financial institutions. In fact, the vast majority of credit unions would be tripping over themselves to make such a loan, based on what I've seen of PIR's financials. Taking out a loan against surplus income to make cash-intensive improvements to the non-profit in furtherance of its mission is basically the whole point of running a surplus that isn't distributed back to members.
Just as point of clarification, California non-profit corporation law wouldn't apply to Public Interest Registry. It is formed and domiciled in Pennsylvania. That said, Pennsylvania law appears to permit non-profit corporations to take on debt in the same way that any other corporation formed under PA law can do (subject to rules found in the organization's bylaws or formation documents, which I've not read for PIR). Title 15 of Pennsylvania's consolidated statutes, section 5502(6) reads that a non-profit corporation has the authority "[t]o borrow money, issue or incur its obligations and secure any of its obligations by mortgage on or pledge of or security interest in all or any part of its property and assets, wherever situated, franchises or income, or any interest therein."
I can't think of a reason why PIR, with a surplus of annual income, would have any trouble receiving a loan from any number of financial institutions. In fact, the vast majority of credit unions would be tripping over themselves to make such a loan, based on what I've seen of PIR's financials. Taking out a loan against surplus income to make cash-intensive improvements to the non-profit in furtherance of its mission is basically the whole point of running a surplus that isn't distributed back to members.