Last month, I joined @Jennifer Hayes, @Leah Fremouw, @Lakota Vogel, and @Dafina Williams at the CONNECT+ Forum: Capitalization for a conversation on the power of CDFI coalitions in the current capital environment. We're seeing that collaboration at the state or regional level can amplify a common message for policymakers, position CDFIs to shape narratives about their own communities, and attract more public sector resources, particularly at the state-level.
The value of educating policymakers and stakeholders was a common thread throughout the conversation. This is even more critical-and challenging-when CDFIs aim to get into the weeds on their unique capital needs. A few insights from the panel:
- Leah shared that coalitions can and should brag on the CDFI sector at large, in ways that individual CDFIs may not be comfortable doing for their own organizations.
- In Michigan, Jenn described how the coalition utilized grants to collectively invest in a range of storytelling and educational assets, including a website, one-pagers, data-gathering from members to support impact reporting and storytelling, and compelling client stories across borrower types. This helped lead to the creation of the Michigan CDFI Fund, a $19 million program supporting CDFIs.
- The Mountain Plains Coalition, in the words of Lakota, aimed to create the impression for funders of an "exclusive party that everybody could be invited to," strategically engaging partners through quarterly calls and events. They also asked partners to tell their coalition's story for them, which created opportunities to reflect on their own narrative and identify and correct misunderstandings.
For anyone interested in continuing the conversation, you can access the session recording and slide deck, and:
- If you're involved in a state or regional coalition, consider joining the CDFI Coalition Network. This working group of peers currently meets quarterly. Reply to this post or reach out Leah Fremouw (lfremouw@bridgingvirginia.org) and Megan McGlinchey (mmcglinchey@ofn.org) for more information on getting involved.
- If you're looking for resources to help educate policymakers, "The Impact of the Current Banking Environment on CDFI Capitalization" gives a high-level overview of the effects of rising interest rates and the constrained capital environment on CDFIs' ability to meet their borrowers' needs. It can be downloaded in the community resource library.
- Reply below to share any outstanding questions or comments you have from the session with panelists.
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Chris Neary
Senior Vice President - Policy, Research and Advocacy
Cinnaire Lending Corporation
Wilmington DE
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