Capitalizing Community: CDFIs and the Art of Equitable Finance

Managing a CDFI is both an art and a science, as CDFI leaders must consider, and find an equilibrium, amidst many different factors. One of the most important is striking the balance of being an effective community partner while being a financial institution. CDFIs have to manage their fiduciary responsibilities and build a sustainable business model so that they can be an enduring, stable community partner. At the same time, to be a trusted, effective community lender and partner, CDFIs must provide low-cost, flexible capital and services. When the market tightens, the friction between these two aspects of the CDFI business model increases. In our opening plenary, we’ll engage in a dialogue that explores how CDFIs are building capitalization strategies that center community — and what it takes to effectively raise capital that listens to community.

Opportunity Finance Network (OFN) hosted this session as part of its virtual CONNECT+ Forum on March 19, 2024.