D.C. Non-profit Invests $4M in Community Development Credit Unions
Inclusiv will help distribute the funds to help minority and low-income communities.
A Washington, D.C.-based non-profit group announced Thursday it is investing $4 million to help minorities and low-income people through a network of community development credit unions.
The New Venture Fund will invest the money through the Social Impact Deposits Platform run by Inclusiv, a national Community Development Financial Institution (CDFI) that represents about 450 CDFI credit unions that provide financial and development services to 18 million members of underserved communities.
Inclusiv helped create the U.S. Treasury Department’s CDFI program in 1994. Over the years, Inclusiv has drawn more than $300 million from philanthropic and corporate donors and invested the funds into low-income and minority communities.
New Venture Fund was founded in 2006 to support the work of other groups committed to equity, diversity and inclusion. It has provided legal and operational expertise, back-office administrative support and cash/investment management to more than 150 projects.
Shannon Scott, CFO for New Venture Fund, said the charitable group began in 2020 to focus more intentionally on aligning all aspects of its work, including invested assets, with its values.
“We want to invest in opportunities that deliver meaningful impact in the areas of racial, social and economic justice,” Scott said. “Inclusiv offered a unique opportunity to support its network of community development credit unions that further support Black and brown communities and their infrastructure.”
“Inclusiv’s approach, knowledge, expertise and passion was key to us partnering to bring patient capital to these communities,” she said.
Cathi Kim, director of Inclusiv/Capital, is responsible for connecting community development credit unions with the capital needed to strengthen the organizations and help their communities.
“New Venture Fund is a model for organizations seeking how to transform commitments into impact in narrowing the opportunities and wealth gaps in underinvested communities,” Kim said.