Capital for communities : connecting community development loan funds to individual investors
Name
759123958-MIT.pdf
Description
Full printable version
Size
8.03 MB
Format
Adobe PDF
Checksum (MD5)
f36f7b38c00900c5c82b761eb6d6b2c2
Author(s)
Solomon, Ann DeMoss
Advisor(s)
Karl Seidman.
Alternative Title
Connecting community development loan funds to individual investors
Date Issued
2011
Publisher
Massachusetts Institute of Technology
Abstract
Community development loan funds (CDLFs) play a critical role in financing affordable housing, small businesses, and non-profit organizations in low-income communities throughout the US. Since the 2008 financial crisis disrupted CDLFs' primary sources of capital-banks and foundations-many CDLFs have been pursuing new sources. During these years of economic recession, individuals' confidence in the financial system declined while the Socially Responsible Investing and Impact Investing sectors experienced significant growth. With these concurrent trends as a starting point, this thesis explores the potential for socially-minded individuals to become a more substantial source of capital for CDLFs. Using case studies of two organizations with successful individual investor programs- Boston Community Capital (BCC) and Calvert Foundation-my research examines the costs and benefits of individuals as a source of capital. Specifically, I study BCC's local capital raising for its Boston Community Loan Fund and newer Stabilizing Urban Neighborhoods Initiative and Calvert Foundation's Community Investment Note, a retail product available to individuals nationwide. My research analyzes the advantages and shortcomings of these differing approaches, assesses the viability of replicating each model, and makes recommendations for scaling up individual investing in CDLFs.
Description
Thesis (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, June 2011.
"June 2011." Cataloged from PDF version of thesis.
Includes bibliographical references (p. 87-90).
Subjects
Urban Studies and Planning.
MIT Department
Massachusetts Institute of Technology. Department of Urban Studies and Planning
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