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Innovative financial instruments are being used around the world to channel investment into disadvantaged communities. This approach to generating vibrant and wealthy neighbourhoods, where local enterprise provides increased incomes, jobs and services for local people, is termed community development finance. It is an approach that promotes social, economic and physical renewal.
Delivery is achieved through community development finance institutions (CDFIs). CDFIs are independent organisations committed to tackling financial exclusion in the long-term. They provide finance to individuals, businesses and social enterprises unable to access the services they need from mainstream finance providers.
nef has been working over a number of years to support the development of the community development finance sector in the UK, and thus increase access to finance for people with the greatest need for it. We continue to:
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Research and analyse CDFI activities
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Initiate and support policy measures to support the growth of community development finance - such as the Social Investment Task Force and the Community Investment Tax Relief
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Introduce and promote performance measurement, quality standards and good practice among CDFIs in partnership with the Community Development Finance Association.
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Innovate new CDFI models and financial products and services, such as the London Rebuilding Society and the Adventure Capital Fund.
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Increase awareness and understanding of community development finance among both the public and private sector with an aim of increasing the level of investment in CDFIs.
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