In 2017, FUND Community Institute conducted research on CDFI Advisory Boards to gain insight on the extent to which CDFIs integrate Advisory Boards as a component of their business models. CDFI Advisory Boards are a rich resource that are often underutilized. Future blogs will share information on why Advisory Boards were formed and what innovative practices are being employed that could help other CDFIs.
This second data installment presents information on what Advisory Boards do:
- The most important CDFI Advisory Board role indicated by survey respondents (almost 70%) is developing new products
- Many CDFIs run new products by the Advisory Board during the development phase for overall suggestions and input on features and technology
- Some Advisory Boards have specifically helped with developing innovative loan products
- Advisory Boards may also discusses community needs and develop loan product policies as well as vet new product opportunities such as Community Advantage
- More than half of respondents (56%) reported that their Advisory Boards develop partnerships
- Partnerships include other lenders, foundations, borrowers, hospital systems, local schools, non-profits, investors, developers, industry groups, and other community organizations
- 40% of respondents indicated their Advisory Board members source deals for the CDFI
- There was a wide range of Advisory Board member-sourced deals reported by respondents ($50,000 to over $8 million)
- Less than 20% of respondents reported that their Advisory Board members conduct fundraising
- For some these were amounts in the $5,000 – $10,000 range and for others in larger amounts up to $250,000
About the Research
An online survey was emailed to CDFIs in July 2017 and 216 CDFIs responded; of which 42% indicated they had Advisory Boards. Of survey respondents with Advisory Boards, 83% represented CDFI loan funds, 11% CDFI banks, 3% CDFI credit unions, and 3% CDFI venture capital funds.
FUND Community Institute (FUND CI)
FUND CI was founded in 2017 as part of the family of FUND Consulting organizations. In an effort to support the CDFI Industry, one of the main activities of the organization is to conduct and disseminate research on CDFIs and related topics. For more information, please contact firstname.lastname@example.org.