DC nonprofit invests $4 million in credit unions for community development

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A Washington, DC-based nonprofit group announced Thursday that 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 deposit platform operated by Inclusiv, a national community development financial institution (CDFI) that represents approximately 450 CDFI credit unions that provide financial and development 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 attracted more than $300 million from philanthropic and corporate donors and has invested the funds in low-income communities and minority.

New Venture Fund was founded in 2006 to support the work of other groups committed to equity, diversity and inclusion. He has provided legal and operational expertise, back-office administrative support and cash/investment management to over 150 projects.

Shannon Scott Shannon Scott

Shannon Scott, chief financial officer of New Venture Fund, said the charity 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 have a meaningful impact in the areas of racial, social and economic justice,” Scott said. “Inclusiv has 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 have been essential to our partnership in bringing patient capital to these communities,” she said.

Catherine Kim Catherine Kim

Cathi Kim, Director of Inclusiv/Capital, is responsible for connecting community development credit unions with the capital needed to strengthen organizations and help their communities.

“The New Venture Fund is a model for organizations seeking to turn commitments into impact by reducing opportunity and wealth gaps in under-invested communities,” Kim said.

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