Community Development Finance
UKSIF's Community Development Finance programme aimed to promote enterprise, investment and wealth creation in under-invested communities. Community Development Finance became a central element of UKSIF's work due to the clear social benefits gained from investing in the sector.
The programme led to the launch of the Social Investment Task Force, which worked to stimulate community development finance to meet the needs of under-served markets.
The five recommendations made in the Social Investment Task Force report 'Enterprising Communities: Wealth Beyond Welfare' were:
- Community Investment Tax Relief (CITR) to encourage private investment in under-invested communities, via Community Development Finance Institutions (CDFI's).
- Community development venture funds, to offer entrepreneurs in under-invested communities the benefits of venture capital: long term equity investment, business support and the potential to grow rapidly.
- Increased disclosure by mainstream banks of their activities in under-invested communities.
- Greater latitude and encouragement for charitable trusts and foundations to invest in community development initiatives.
- A trade association to provide support for the sector and for CDFI's.
The five policy recommendations were accepted by the Chancellor of the Exchequer in October 2000 and since then the five recommendations have either progressed significantly or have been successfully implemented:
- CITR was introduced in the Finance Bill 2002 and passed law in July 2002. To download the regulations, visit the CITR pages on www.sbs.gov.uk.
- The first UK community development venture fund - Bridges was launched in May 2002. For further information, visit www.bridgesventures.com.
- Various mainstream banks and banking associations have disclosed or are planning to publish information on their activities in deprived areas.
- Guidance on Programme Related Investment (PRI) was published by the Charity Commission in May 2001.
- The Community Development Finance Association (CDFA), a trade association for CDFIs was launched in April 2002. For further information, visit www.cdfa.org.uk.
The CDFA has taken over the formal development of the community development finance sector, while UKSIF continues to facilitate the overall expansion of the SRI market, which will in turn promote the sector, social enterprise and venture capital.
For further information, please visit www.cdfa.org.uk.
Contact:
Sarah McGeehan, Information Director, Community Development Finance Association (CDFA)
Tel: 020 7357 7356