From surviving to thriving – realising the potential of community development finance
Sargon Nissan, Veronika Thiel
21 September 2008
To what extent is Community Development Finance Institution (CDFI) movement fulfilling its original purpose to provide affordable finance to disadvantaged communities?
By analysing the experience of four case study organisations, we consider this question in the context of the varying demands being placed on CDFIs by both policy-makers and funders.
We argue that the failure of the sector to realise its full potential lies in the conflicting demands placed upon CDFIs. The core functions of CDFIs – outreach and regeneration – cannot be easily reconciled with financial sustainability. The operating practices of CDFIs and the realities faced by the communities they serve mean that they are seeking to generate long-term social benefits, rather than financial profits.
In this study we address the following questions regarding the UK community finance sector:
The report concludes with a set of practical recommendations to enable CDFIs to achieve a step-change in both effectiveness and impact.
Banking & finance
The New Economics Foundation depends on its supporters’ generosity. If you value what we do, please consider making a donation.
Over a hundred experts have signed a letter calling for Andrew Bailey to use the Bank to tackle the climate crisis.
Frank van Lerven
04 March 2020
How central banks can address the financial risks and support a capital shift away from coal.
05 February 2020
The recession of a decade ago looms very large in our collective memory. But what actually causes a recession?
08 November 2019
We are campaigning for a fairer and more compassionate system
Unfair Debt Group
01 November 2019