What has changed about funding for community-based organizations?
The most interesting thing on the funding side is that a number of organizations have begun to take capital accumulation seriously as their long-term driver to success. By owning their own capital, managing it in a way that returns some funding for operation, we have seen a number of organizations move to virtual self-sufficiency. It’s been easier for some of the organizations that own multifamily property, but even some of the organizations that are purely lenders are getting close. If you’ve come from the traditional organizer or social service mindset, it’s a shift to say yes I want to accomplish those goals, but I want to use my capital in a way that returns, so I can actually still be here in the neighborhood, so the community still has an asset. And that means paying attention to balance sheet strategies, which I think is part of the new growth for community development leaders. It is very painful to raise money for 106 Main Street, then discover that someone else gave you money
