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What’s Next for Community Development Finance?

NonProfit Quarterly

How the CDFI Sector Came to Be: A Legislative History Community development finance is arguably as old as finance itselfafter all, the purpose of finance writ large is supposed to be community reinvestment. According to Jacokes, who worked for the US Senate Finance Committee then, four major challenges stood in the way.

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From Microfinance to Mutual Aid—Moving Resources to People, Not Banks

NonProfit Quarterly

In the 1970s, economist Muhammad Yunus pioneered the concept of microloans through the Grameen Bank in Bangladesh, a revolutionary idea that aimed to lift people out of poverty by offering small loans to those excluded from traditional banking. Yunuss premise was simple: People know better.

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Small Firms Are Still a Big Missed Opportunity in Development Philanthropy

Stanford Social Innovation Review

The problem is not lack of potential impact; SMEs represent nine out of 10 firms, the biggest employers worldwide, and without helping these firms grow, we cannot create jobs, lift people from poverty, empower women, or innovate solutions for the climate crisis. There are 3.4 There are 3.4 Not philanthropy’s problem.

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Building an Economy with Purpose: The Transformative Potential of Baby Bonds

NonProfit Quarterly

According to the latest Survey of Consumer Finances , conducted by the Federal Reserve, as of 2022, the median White family held over $285,000 in wealth, while the median Black family wealth was around $44,900—just 15 percent as much. It enables people to plan their futures and live self-determined lives.

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How TIFs Impact Racial and Economic Justice at the Local Level

NonProfit Quarterly

Image credit: Sidral Mundet on Unsplash In Chicago, in 2023, there were 124 active tax increment financing (TIF) districts, which removed over $1.2 In fact, tax increment financing is one of the most common local economic development financing tools around. million people. Its not just Chicago.

Taxation 104
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How ‘Productizing’ Innovative Finance Hurts Development

Stanford Social Innovation Review

By Jonathan Ng & Rob Mills In recent years, the concept of innovative finance has become increasingly popular in the international development community, especially as a way to mobilize more funding to achieve the Sustainable Development Goals. Yet there is a limit to applying commercial finance thinking to the development sector.

Finance 111
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Policies for Housing With Heart

Stanford Social Innovation Review

Multigenerational households typically have more income earners than single families, and by combining the income of working family members and the social security or pensions of retired ones, Americans living in multigenerational households have lower levels of poverty. While 13 percent of U.S.