Community Investment Funds (CIFs)

A complementary approach to LINs, Community Investment Funds are organizations that use pooled assets from community members to invest locally. As such, they have organizational structure with significantly greater start up and operational expenses than LINs. Advantages include the ability for smaller investors to participate, to make larger investments, and to place the onus of risk on the organization rather than the individual investor. A disadvantage is that relationships are not developed between the investor and recipient. They have been successful in many communities – large and small.

The National Coalition for Community Capital (NC3) is a leading source for information and guidance on starting CIFs. Their website includes educational materials as well as a Starter Workbook, Handbook, and Toolkit. NC3 also advocates for CIFs at the Federal and State Level.