RESEARCH IN ACTION

The Community Development Innovation Forum, a project of the Massachusetts Association of Community Development Corporations and Greater Boston Local Initiative Support Corporation released a new study by the Nonprofit Finance Fund that looked at the fiscal health of the CDC sector in Massachusetts.

The CDC Fiscal Health Study revealed that the 26 organizations represented in the study became more financially vulnerable from 2003 through 2008. This result indicates that the financial challenges facing community development corporations predate the 2008 recession.

The study also found that, unlike private real estate companies, CDC financial performance was not demonstrably better during the hot real estate market in the middle of the decade because program limits on rents and profits left  little cushion when the market collapsed in 2008.

Author: Bill Pinakiewicz

Contact:  Joe Kriesberg: joeK@macdc.org

Date: February, 2010

To read the report, click here.

Featuring MACDC a grantee of the Herman and Frieda Miller Foundation