Helping Community Development Financial Institutions Better Determine and Demonstrate Their Results
Long used to tracking outputs (e.g., charter school seats financed, small businesses capitalized, affordable housing units funded) community development financial institutions (CDFIs) face increasing demands to document the outcomes, or results, of their investments. CDFIs, a mix of nondepository and depository financial institutions, are embracing measurement for more than compliance and funder reporting and are using measurement as part of a learning agenda. But this work is challenging, requiring new investments, partnerships, and measurement strategies. This brief outlines recommendations to CDFIs to best measure their activities’ effectiveness and build a more robust internal measurement and learning function.