Community investing allows you to put your investment dollars into a specific community, often your own. Below is information about two types of financial institutions and one type of investment product, community investment notes, which allow you to support community development.
One option which can help to support your local community is banking with a credit union. Credit unions, unlike traditional banks and financial institutions, are non-profits, community focused, and member owned. You can locate a credit union in your community using the Credit Union Locator from the National Credit Union Administration. The credit unions may also offer you a credit card or certificate of deposit (CD) option which helps to support your local community.
Community development financial institutions
Community development financial institutions (CDFIs) are a second community banking option. The CDFI Certification designation is given by the CDFI Fund to specialized organizations that provide financial services in low-income communities and to people who lack access to financing. CDFIs include regulated institutions such as community development banks and credit unions. The CDFI Fund is an agency of the US Dept of Treasury and was created in 1994. Download a list of CDFIs in your area.
Community Investment Notes
Community investment notes are a fixed income investment vehicle which offer an opportunity to invest in a diversified portfolio of community investments. Available community investment notes include those offered by:
Sustainable Development Goals
The 17 UN Sustainable Development Goals (SDGs) provide an internationally recognized framework for sustainability. Community Development may contribute to a number of SDGs including:
- SDG 8: Decent work and economic growth
- SDG 10: Reduced inequalities
- SDG 11: Sustainable Cities and Communities
Photo by Perry Grone