Philanthropy Impact

Inspiring philanthropy and social investment across borders, sectors and causes

Community development finance institution (CDFI)

Glossary item: Community development finance institution (CDFI) - Definition

CDFIs lend and invest in deprived areas and underserved markets that cannot access mainstream finance. They are independent organisations that provide financial services with two aims: to generate social and financial returns. Some CDFIs offer loans while others provide equity investment – a few offer both. They serve different types of customers including individuals, micro, small and social businesses (Community Development Finance Association definition). See community development finance and Community Investment Tax Relief


This glossary item is tagged under:

  • Social investment