Capital Structure: Getting It Right to Increase Sustainability

This paper focuses on the pursuit of equity capital, and its critical role in supporting an institution's scale-up and sustainability strategy. The case of Justin Petersen in St. Louis, U.S.A. demonstrates that an institution's sustainability is a balancing act, and depends on keeping mission, organizational capacity and capitalization in line. Justin Petersen works with low to moderate-income families and individuals. It focuses on:

• Increasing home ownership opportunities;
• Developing enterprise opportunities;
• Building credit and improving credit scores;
• Strengthening financial literacy and financial skills.

Justine Petersen's challenge will be to stick to its game plan through the current difficult economic context, knowing its work will produce pay-offs when the economy improves. To meet its goal of 100 percent self-sufficiency across its lending products, the organization needs more capital and a sophisticated sustainability strategy that focuses on:

• Increasing visibility in the community through a branding and repositioning campaign;
• Developing its board to take on a greater role in fund-raising;
• Developing a systematic development campaign focused on local philanthropy.