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Assessing Public, Private, and Philanthropic Support for CDFIs

Carolina Small Business Development Fund Research Report and Brief



ABSTRACT

Community-based financial institutions play a large role in fostering sustainable economic development. Data show revolving loan funds and other community development financial institutions (CDFIs) support their programmatic operations from a variety of sources. Loan funds are able to serve large numbers of clients at relatively low staff costs. We offer a few recommendations for practitioners to improve organizational capacity, including an evidence-based exploration of the role of individual donors.


WHY THIS MATTERS

There are many ways to foster community economic development, and for decades CDFIs have operated as an affordable capital pathway to small and medium-sized firms. Compared to other types of development interventions, the data show that CDFIs offer a relatively efficient way to promote positive socioeconomic outcomes. But CDFIs also must diversify their revenue approaches to remain sustainable.



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SUGGESTED CITATION:

McCall, Jamie and Emily Stallings. 2019. “Assessing Public, Private, and Philanthropic Support for CDFIs: Data on Contributing Operating Revenues and Measures of Efficiency.” Carolina Small Business Development Fund. Raleigh, NC. https://doi.org/10.46712/cdfi.revenue.sources.



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