New venture fund expands commitment to racial equity and financial inclusion with Inclusiv Social Impact Deposits
Inclusiv and New Venture Fund announced their partnership to increase racial equity and financial inclusion in low-income and communities of color. New Venture Fund is using Inclusiv’s Social Impact Deposits Platform to invest an initial $4 million into community development credit unions (CDCUs) and minority designated credit unions serving historically underinvested communities.
CDCUs advance financial inclusion by providing safe alternatives to predatory loans, capital for small businesses and home ownership, and supporting asset building and wealth creation opportunities for those excluded by the mainstream. Inclusiv is a national community development financial institution (CDFI) and represents a network of more than 450 CDCUs providing financial and development services to 18 million members of underserved communities. Investments through the Inclusiv Social Impact Deposits Platform distribute funding for CDCUs to expand support to their lending and financial inclusion initiatives.
As one of the first national CDFIs, Inclusiv has partnered with a diverse coalition of stakeholders and investors across philanthropy, corporations, banking, and social impact investors to deploy more than $300 million directly into under-resourced communities and communities of color.
“In 2020, New Venture Fund began to focus more intentionally on aligning all aspects of our business, including invested assets, with our values. As a charitable organization, we want to invest in opportunities that deliver meaningful impact in the areas of racial, social, and economic justice,” said Shannon Scott, NVF’s Chief Financial Officer. “Inclusiv offered a unique opportunity to support its network of community development credit unions that further support Black and brown communities and their infrastructure. Inclusiv’s approach, knowledge, expertise, and passion was key to us partnering to bring patient capital to these communities.”
“New Venture Fund is a model for organizations seeking how to transform commitments into impact in narrowing the opportunities and wealth gaps in underinvested communities,” said Cathi Kim, Director of Inclusiv/Capital. “Inclusiv is excited to partner with them and our growing circle of partners in aligning investments with their values.”
About New Venture Fund
New Venture Fund (NVF) was established in 2006 as a 501(c)(3) not-for-profit organization incorporated in Washington, DC. As a charitable organization and fiscal sponsor, NVF provides legal and operational expertise, back-office administrative support, and cash/investment management to more than 150 projects, enhancing opportunities for project staff and leadership to optimize their resources for greater impact and to drive change.
New Venture Fund’s commitment to race equity, equity, diversity, and inclusion (REDI) is inextricably tied to our mission to help change leaders accelerate positive impact. Through our work, we are ensuring fair treatment, access, opportunity, and advancement for the communities we serve, and by extension, the broader society. We think it is equally important to support our mission through informed and directed financial investments.