In today’s evolving financial landscape, Community Development Financial Institution (CDFI) banks are constantly seeking innovative ways to expand their impact while maintaining financial sustainability.
Establishing a nonprofit affiliate can be a game changer—allowing your institution to access new funding sources, enhance community partnerships, and fully leverage the benefits of the ECIP divestiture rule.
In today’s evolving financial landscape, Community Development Financial Institution (CDFI) banks are constantly seeking innovative ways to expand their impact while maintaining financial sustainability.
A nonprofit affiliate can attract philanthropic funding, government grants, and program-related investments (PRIs) that are not available to for-profit banks.
A nonprofit can provide financial literacy programs, technical assistance, and other community-focused initiatives that align with your CDFI’s mission.
Nonprofits can offer expanded lending opportunities which banks may be unable to because of strict lending parameters and regulatory requirements.
Nonprofit affiliates can offer subordinate financing, allowing your bank to increase lending opportunities while managing risk.
Generate new funding sources beyond traditional banking, helping to sustain and grow community impact initiatives.
A nonprofit entity can facilitate deeper collaboration with local governments, foundations, and other mission-aligned organizations.
Activities conducted through a nonprofit affiliate can contribute to Community Reinvestment Act (CRA) compliance and improve assessment ratings.
As a 501(c)(3), the nonprofit can receive tax-deductible donations and reduce operating costs through tax-exempt status.
A nonprofit affiliate can pilot new financial products that serve underserved markets without the same regulatory constraints as a bank.
Leverage the flexibility of a nonprofit to fully utilize the new ECIP divestiture rule.
Establishing a nonprofit alongside your CDFI bank ensures long-term community impact, regardless of changes in banking regulations or leadership.
Nonprofits can attract mission-orientated individuals, accessing an untapped labor market, who may transition to your CDFI bank once exposed to mission-driven lending.
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A nonprofit partner allows your bank to access a much more comprehensive range of funding sources, expanding the number and types of loans your organizations can collectively make.
—CEO of Hub Institution
Save Time
We’ll significantly reduce your internal time commitment.
Stay on Track
We manage the timeline and move the process forward.
Avoid Costly Mistakes
Our experience prevents delays and missteps.
Create a Nonprofit That Works
Not just one that exists.
Strengthen Community Impact
Show measurable results with stakeholders.
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