UK CDFIs – from surviving to thriving

Realising the potential of community development finance

This report examines the extent to which the community finance movement is fulfilling its original purpose to provide affordable finance to disadvantaged communities. The authors determine this by analysing the experience of four case study organisations. They also consider this question in the context of the varying demands being placed on CDFIs by both policy-makers and funders.

UK CDFIs: from surviving to thriving examines the extent to which the CDFI movement is fulfilling its original purpose to provide affordable finance to disadvantaged communities. We determine this by analysing the experience of four case study organisations. We consider this question in the context of the varying demands being placed on CDFIs by both policy-makers and funders.

We argue that the failure of the sector to realise its full potential lies in the conflicting demands placed upon CDFIs. The core functions of CDFIs – outreach and regeneration – cannot be easily reconciled with financial sustainability. The operating practices of CDFIs and the realities faced by the communities they serve mean that they are seeking to generate long-term social benefits, rather than financial profits