Brief A New Era of Racial Equity in Community Development Finance
Subtitle
Leveraging Private and Philanthropic Commitments in the Post–George Floyd Period
Brett Theodos, Steven Brown, Michael Neal, Ellen Seidman, Shena Ashley
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Inspired by nationwide protests that followed George Floyd’s murder on May 25, 2020, the private and philanthropic sectors made unprecedented commitments to racial equity—at least $215 billion—signaling a promising new era in the pursuit of racial equity in the US. But sustaining these commitments will require moving beyond the “moment of crisis” and baking racial equity into community development finance systems. It will also require scaling to an even bigger, bolder racial equity commitment that could lead to lasting change. Our brief examines the surge of racial equity commitments made by the private and philanthropic sectors between May 2020 and June 2021, focusing particularly on community development finance. The report identifies 11 potential solutions for overcoming key challenges in capital deployment and shares four overarching strategies for reimagining the future of private and philanthropic commitments to racial equity.

Research Areas Economic mobility and inequality Wealth and financial well-being Nonprofits and philanthropy Neighborhoods, cities, and metros Social safety net Race and equity Taxes and budgets Community and economic development
Tags Asset and debts Racial and ethnic disparities Public and private investment Taxes and business Finance Racial barriers to accessing the safety net Racial inequities in economic mobility Racial inequities in neighborhoods and community development Community development finance and CDFIs Financial stability Race and equity in grantmaking
Policy Centers Metropolitan Housing and Communities Policy Center Office of Race and Equity Research