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Community Development Financial Institutions (CDFIs)

Broad-Based Ownership Models as Tools for Job Creation and Community Development

Marjorie Kelly, Steve Dubb and Violeta Duncan

As cities wrestle with the growing challenge of wealth inequality, more and more leaders are looking to broad-based ownership models as tools to create jobs and build community wealth. These models are highly effective, with a positive impact for low- and moderate-income individuals and communities. This report looks at six such models—ESOPs, Worker Cooperatives, CDFIs, Social Enterprises, Municipal Ownership, and Emerging Hybrids—with examples of best practices, and explores how these models can be used in community economic development.

Exchanging Ideas for a Just Economy

Conference focuses on strategies to ensure fair and equal access to capital

Last week, the National Community Reinvestment Coalition (NCRC) hosted its annual conference in Washington DC. Entitled “A Just Economy: Ideas, Action, Impact,” the conference brought together nearly 800 community-based practitioners and policymakers to discuss responsible community investment and share strategies to ensure equal access to credit, capital, housing, jobs, and banking services. Read more about Exchanging Ideas for a Just Economy ...

Oberlin College Adopts Impact Investing Platform

Likely largest higher education commitment to social investing in nation to date
A few weeks ago, Oberlin College, with an endowment of nearly $700 million, adopted what is likely the largest impact-investing platform to date by a college or university in the United States. Although Oberlin is just one institution, the decision provides a hopeful sign of an accelerating institutional shift toward greater socially responsible investment practices. A tremendous opportunity exists. Higher education as a sector controls more than $400 billion in endowment assets.

The Rise of Community Wealth Building Institutions

More people are turning to economic alternatives in which new wealth is built collectively and from the bottom up

Crossposted from Policy Network, and later published on the London School of Economics website, this blog is part of a debate event hosted by Policy Network in London, UK, that was reviewed in OurKingdom by grassroots activist James Doran:    

Five years after the financial crisis economic inequality in the United States is spiraling to levels not seen since the Gilded Age. While most Americans are experiencing a recovery-less recovery, the top one per cent of earners last year claimed 19.3 per cent of household income, their largest share since 1928. Moreover, income distribution looks positively egalitarian when compared to wealth ownership.

Public Money for the Public Good

How public finances can be unlocked for local economic development
Public banks and credit unions weathered the last crisis much better than private banks, benefiting the communities they served as well. And many experts believe that it’s only a matter of time before the next financial crisis hits. To weather the next one well, we need to ensure that our individual and collective resources strengthen the types of financial institutions that are democratically accountable, economically stable, mission oriented, and that are actively helping build and keep wealth locally in our communities.

Done Right, Eliminating Food Deserts Result in Community Oases

Building community wealth every step of the way
Pogue’s Run Grocer Mural, an initiative of the Indy Food Co-op. © Indy Food Co-op
Building healthy, vibrant and sustainable communities requires more than “bottom up” solutions. The importance of community ownership to ensure that projects that start at the bottom result in lasting community wealth for the people involved is often missing from the discussion. The local foods movement provides examples that illustrate the importance of this ownership principle in practice.

Credit Unions on the Rise

Cooperative financial model pushes “people first” approach to grow opportunity and economy

In 2012, credit unions passed an important milestone: collectively, these cooperatively owned, one-member-one-vote financial institutions hold more than $1 trillion in assets. Taken together, they would equal the fifth largest U.S. bank, knocking Goldman Sachs out of the top five (keep in mind, this does not include other sectors of cooperative finance, which, if taken all together, would comprise one of the largest banks in the country). 

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