An example of a cash advance nonprofit payday loans provider is the Grace Period, Inc, started by a church and serving customers in Pittsburgh.
According to their marketing material, Grace Period is a non-profit organization that has partnered with church to provide payday lending services, and originally started with donated funds.
As a non-profit, their main goal is not to make profit, but to educate their local community (Pittsburgh (Allegheny, Beaver & Butler)) about responsible payday lending, and to offer a responsible alternative to many of the less reliable cash advance operators.
However, they do offer loans very much in similar fashion to their for-profit counterparts, including having no credit checks, with fast approvals.
As a non-profit, benefits of using Grace Period include more flexible terms of repayment, and typically lower costs of borrowing.
Instead of treating the lenders as customers, they are considered members, with the intention of promoting the principles of personal savings, investment, thrift, and financial preparedness through the membership.
The way these payday loans work, according to the Grace Period website FAQ section, is that Grace Period operates as a nonprofit club, originating and guaranteeing loans made by a credit union for the benefit of its members.
Then, these loans are coupled with a mandatory savings program, which has been especially designed to end the members' future needs to use payday lending.
Through this program, the lenders can take payday advances up to $500, with the application form available online.
There are several requirements that Grace Period puts on the customers to be able to qualify for a loan, including (at the time of writing this) that you must have take home income of at least $1000 monthly ($450 bi-weekly), plus an active bank or credit union account.
In addition to lending services, Grace Period does consulting and education on their program, with the aim of spreading the non-profit business model across the country.
Cash advances should be used for short-term financial needs only, not as a long-term financial solution.
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