The Financial Health of Community-Based Development Organizations: Using Internal Revenue Service Tax Data to Assess Sector Health

Nonprofit community-based development organizations work in low-income communities and communities of color to implement development projects, such as affordable housing and community facilities, and provide programs and activities that meet community needs. They need financial resiliency and sustai...

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Bibliographic Details
Published in:Policy File 2022
Main Authors: Lo, Lydia, Scally, Corianne Payton, Lecy, Jesse, Kumari, Shubhangi
Format: Report
Language:English
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Activists
Urban Institute
Online Access:Request full text
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Summary:Nonprofit community-based development organizations work in low-income communities and communities of color to implement development projects, such as affordable housing and community facilities, and provide programs and activities that meet community needs. They need financial resiliency and sustainability to ensure they can continue to serve their missions in their communities. This study examines the financial health of the CBDO sector to assess vulnerabilities and risk. Despite overall sector financial growth and health, we find signs of distress, including income struggles, funding disruptions, cash shortages, highly leveraged assets, and insolvency for certain groups of CBDOs.