06/04/2026
As the need for more place-based solutions grows due to current tensions in our capital markets. Community development financial institutions (CDFIs) hold key roles in local markets by stabilizing, bridging, funding, lobbying, advocating, and crafting reforms for local solutions, on top of their core focus of community-based lending for redevelopment.
This huge expansion of work for CDFIs, a financial structure that came to be in the late 1960s under the Fair Lending Laws, growing into a national structure in 1994 to create a democratized version of capital access in response to the risk-rating system created in the 1930s.
Philanthropy holds many tools to offer catalytic collaboration in this moment of social change. We are in a new economic transformation, almost 100 years later, and CDFIs are burdened with the community development needs for place-based regeneration. Philanthropy can be impactful by dropping “what financial tool is preferred” to a “problem first posture” based on local community needs.
How does philanthropy “invest deliberately in the intermediaries that make place-based change”?
Read the article to learn more about the shift in a philanthropic posture to build place-based solutions that matter:
The Kresge Foundation's Aaron Seybert on why the expanding role of CDFIs means philanhropy should change its approach to place-based investing.