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Posters at the conference highlighted that the first OFN conference in 1985 attracted 21 communitydevelopment loan funds with a combined $27 million in assets under management. By contrast, according to the US SIF (Sustainable Investment Forum), the CDFI industry (including communitydevelopment banks and credit unions) had $457.9
Image credit: Getty Images on Unsplash Consider a food bank discovering that its operating reserves are in banks that finance industrial agriculture, the very system contributing to food insecurity and displacing small community farms. The answers lie in finances transformative potential to drive systemic change.
They connected into networks with leadership that can organize multiple groups around common purposes, such as local economic development. Mayors, citizens, funders, and practitioners end up doing their mutualist work in silos, without access to shared resources, knowledge, and coordinated financing. But they benefit from support.
The Launch of Limited Equity Cooperatives The LEC is a tool developed to extend access to homeownership to low- and moderate-income buyers. The movement gained momentum with the support of government programs like Mitchell-Lama , which aimed to provide affordable housing through a public-private partnership.
While many foundations screen their endowment investments based on environmental, social, and governance factors, only a few optimize their investment strategies for mission impact. While common in some sectors like housing finance, these guarantees have typically been issued by public entities, not by philanthropy.
But if the goal is to build a solidarity economy or foster a structural shift in the economy so that US business owners of color have the same ability to finance and develop thriving businesses as White business owners, then investor willingness to sacrifice some degree of financial return for social impact is required.
Members of a housing cooperative have joint control over the governance of common areas like green spaces and playgrounds, and in the US, owners of a share in a co-op are entitled to the same tax deductions as homeowners. Buying housing as a group presents many advantages.
Coproduced by Partners for Rural Transformation, a coalition of six regional communitydevelopment financial institutions, and NPQ , authors highlight efforts to address multi-generational poverty in Appalachia, the rural West, Indian Country, South Texas, and the Mississippi Delta.
Public banks, owned by state and local governments, are driven by a community-serving mission, Currently, financial systems favor White-owned firms and disfavor firms that are owned by people of color, limiting the wealth-building opportunities available to them. How did I come to adopt this position? percent of overall wealth.
When they do need financing, investors are denied mortgages at lower rates than individuals. Source: Reinvestment Fund Analysis of HMDA Data The net impact: Residents of Philadelphias majority Black and Latinx neighborhoods are highly disadvantaged in securing home mortgage financing compared to investor buyers.
Unfortunately for the nonprofit sector, higher overhead costs are correlated to an organization being irresponsible with its finances, ineffective, unable to carry out its mission, and even unethical. For many organizations, capacity building would fall into the “overhead” category. What can I do?
At a recent professional dinner, I struck up a fascinating conversation with a woman who has spent her legal career working in civil rights, housing, and communitydevelopment. I once heard a CDFI leader remark that when the borrowers we need in the community don’t exist, we as CDFIs need to go out there and create them.
And in so doing we are challenging the communitydevelopment field to do better—by creating new tools to support truly equitable food-oriented development. Many large communitydevelopment financial institutions , credit unions, and foundations present themselves as community-based food financing leaders.
However, this also means that residents contribute very little equity to reduce financing costs. As a result, financing costs can run as much as 110 percent of the purchase price. ROC USA can make this work because it can extend financing via its communitydevelopment financial institution (CDFI) subsidiary.
That vision is reflected in what is known today as the Detroit Food Commons , a two-story, 34,000-square foot building that holds a 15,000-square-foot food co-op, offices for DBCFSN, a banquet hall for community events, and four commercial kitchens that local food business owners can rent. We did a lot of community engagement sessions.”
To that end, the Nonprofit Finance Fund conducted its ninth national State of the Nonprofit Sector Survey in the first quarter of 2022 to ask nonprofits about how they were faring and their resource needs during this once-in-a-generation moment. Strong communities need strong nonprofits. Were they able to keep up with service demand?
Many times, government and nonprofit representatives had come to Starleen’s Summit Lake neighborhood and indicated that things were going to improve, but not much ever came of it. “My My first thought was, ‘Here we go. The Scars of History As in so many disinvested, majority Black neighborhoods, the scars of history run deep.
Building on their previous study , published in November 2023, Curt Lyon and Julie Menter from Transform Finance run the numbers in their latest report. Using the broadest possible definition, Transform Finance identified 53 investment funds that invest all or part of their capital in employee ownership. How much of that $8.4
A salient example is of organizations that are focused on communitydevelopment but invest in mass incarceration. Key IPS components may include scope and purpose, governance, investment asset classes, return and risk objectives, investment benchmarking, and risk management.
One driver of this ongoing inequality is the current federal system of financing, which largely depends on two government-sponsored enterprises (GSEs)— Fannie Mae and Freddie Mac. A CommunityFinance Solution While barriers to homeownership persist for households of color, these barriers are possible to overcome.
The conference brings together hundreds of community activists, government officials, and bank communitydevelopment officers. But not surprisingly, racist assumptions about risk made their way into red lines on maps, creating in the process de facto “do not lend” zones in low-income communities and communities of color.
Most practitioners working in communitydevelopment have accepted this as the reality of impact investing: The harder you drive for social impact in disadvantaged communities, the farther away you get from unbuffered full market return.
Most government housing funding is spent on subsidizing mortgages—primarily for the well-to-do. Now, most government housing funding is spent on subsidizing mortgages —primarily for the well-to-do—and residential land is zoned for single-family homes and suburban sprawl.
The ED is responsible for leading and managing all functional areas of the organization, including financial management, staff leadership, program oversight, community engagement and fundraising. Work closely with the Director of Finance to recommend an annual budget for Board approval.
Not only is it possible to access federal funds, but the same elements that are needed for frontline and underinvested, predominantly BIPOC communities to benefit from public funding are also the most promising approaches to address more broadly the impacts of climate change at the local level.
What if the tens of thousands of churches currently projected to close in the next few years put their assets into trusts deeply aligned with communitydevelopment, versus stranding those assets and real estate as they shutter?
The solar developer builds clean-energy projects that help communities acquire long-term wealth and energy assets through impact investing, technical support, and project financing. This model will allow UPROSE to earn revenue that can be directed to a community fund to help vulnerable individuals and families in Sunset Park.
Local government wins because properties are back in productive use, generating taxes. The community wins because there is now permanently affordable housing that can forestall gentrification. While these objectives differ, there is a clear overlap of priorities and opportunities to advance shared equitable communitydevelopment goals.
Aisha Benson , CEO of the Nonprofit Finance Fund , emphasized the long-term impact of redlining , a policy of legalized housing lending discrimination backed by the federal government from the 1930s until the passage of the Fair Housing Act of 1968. Hollenback argued there is a need to “take the same approach, but for community.”
Back in 2019, I published a study on what I called “cooperative cities” in which I wrote about how local governments in a dozen US cities create enabling environments for developing and sustaining worker cooperatives. Only a handful of municipal leaders at the time referred to this work as “community wealth building.”
Image Credit: Bruno Guerrero on unsplash.com This is the third article in NPQ ’s series titled Owning the Economy: Stories from Latinx Communities. Among the coalition participants is the organization I work for, the Latino Economic Development Corporation. Construction began in 2017.
Image credit: Drew Katz Black Bostonian communities citywide have more than just something to say for themselves: their economies are building institutions that prioritize asset-based communitydevelopment and are creating the foundations for a local solidarity economy. After raising $4.5
Image Credit: Getty Images for Unsplash In September, over 700 worker co-op members, co-op developers, supporters, and organizers from across the country came to Chicago to celebrate the 20th anniversary of the US Federation of Worker Cooperatives (USFWC), the national worker co-op federation.
The need to develop more childcare businesses is obvious, but how to build and sustain viable childcare businesses is not. the communitydevelopment financial institution where I work, lends to families and businesses throughout the state of Maine. All are coached through the licensing process and learn how to secure financing.
By Tiffany Manuel & Dana Bourland What if government, the philanthropic sector, and community advocates could pull a policy lever and advance housing, climate, and racial justice all at once? This strategy was not a panacea. Get high-bar proof points under our belts.
To transform our economy, we need to network, learn, ideate, iterate, and resource the work together as nonprofits, for-profits, community leaders and members, philanthropic institutions, governments, donors, and investors. Our organizations have started to map and build these networks in the Seattle area and Washington state.
Nelson Colón of the Puerto Rico Community Foundation, and Clara Miller, president emerita of the Heron Foundation—come from philanthropy. What would it take to fully fund the human capital, governance, and advocacy costs of nonprofits? The other five work for nonprofit intermediary organizations. If not, why not?
Often, these examples involved the creation of community facilities that are university financed but community-led spacesor what Cantor called third spaces. The culture and structure of a large university often clashes with the culture of the surrounding community.
Regardless of their original vision, ACCEL founders—like many who seek venture capital financing—changed their ideas (or pivoted) so that their ventures could reach a national, if not global, market in three to five years, following a typical venture capital timeframe.
These include supporting below-market loan financing, helping artists acquire affordable studio space and housing assistance, and assisting artists to form worker and producer cooperatives that can help them to achieve dignity at work and economic security. Artists are essential to any vision that calls the future into question.
Image Credit: Abe Camacho on unsplash.com This article introduces a new NPQ series, Owning the Economy: Stories from Latinx Communities. Community land ownership is one of the most vital tools for avoiding the displacement of long-term residents and businesses.
Image credit: Corey Agopian on unsplash.com This article concludes NPQ’s series Owning the Economy: Stories from Latinx Communities. It also laid out the building blocks to achieving three key goals: Establish the infrastructure and processes to drive inclusive equitable communitydevelopment. A falta de pan, casabe.
The journey since then has been an adventure, offering important lessons for us that I believe are valuable for the communitydevelopment field. Our project was catalyzed by Genesis LA, a CommunityDevelopment Financial Institution that was willing to bet on our idea. Traditional views of “risk.” Navigating bureaucracy.
After seven years of kitchen-table and Zoom organizing, a multi-stakeholder, cooperative, community-owned grocery store is taking shape in Louisville, KY. In October, the metro council of Louisville’s combined city-county government voted to allocate $3.5 million in grant funding for LCG to build a community-owned grocery.
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