Introduction to Community Development Corporations (CDC)
What is a CDC?
A community development corporation (CDC) is a non-profit community-based organization that serves money-poor families and neighborhoods.
CDCs are formed by residents, small-business owners, congregations, and other local stakeholders. Some individuals work full-time jobs, then work at the CDC part-time. For others, the CDC is their full-time job.
What do CDC's do?
A CDC helps a community address poverty and its symptoms. It is a tool the community can use to decide what and how to improve living conditions.
For example, many CDCs build affordable housing and create jobs for area residents. Jobs are often created through small-business loans or commercial business projects. Some CDCs also create programs that: tutor children after school, care for senior citizens, organize neighborhood watches, mobilize residents to affect local, state, or national laws.
Much of a CDC's strength comes from its community-based focus. The term community-based means that people who do not live in the neighborhood will not control the work that occurs there. When used, this term is a commitment to justice and a promise to community residents.
A CDC is located in the community it serves, and staffed by residents. At least half of CDC Boards of Directors must be area residents. This model means that CDCs tailor projects and programs to the communities needs, not their own.
Why is a community-based model so important?
History proves that police, government, private, and non-profit forces monitor money-poor communities more than money-rich areas. In spite of good intentions, this surveillance is a form of control, and it can have devastating affects.
For example, studies from places like the Harvard Civil Rights Project show that illegal drug use in rich neighborhoods is equal and sometimes greater than it is in poor areas. But, due to un-equal search and seizure laws and policies, more poor people are arrested for possession of illegal drugs than rich. This means that it is not only drug use, but income that decides whether one person is free while another is in prison. Skin color is another factor that adds to this injustice in the United States, and cannot be ignored.
How are CDC's funded?
Like any non-profit agency, a CDC relies on grants, loans, and other forms of aid from government, private companies, foundations, or individuals to help fund their activities. Some CDCs have been successful at creating for-profit ventures that fund their non-profit, work.
Getting involved or starting a CDC
CDC's are always looking for help. Contacting the CDC of interest is the easiest way to get involved.
Thinking about starting a CDC, visit our CDC Start-Up Kit to learn how.
How does the SCACDC helps CDC's?
The SCACDC helps CDCs find money or other investments, known as "capital" by giving information on grants, advocating for CDCs in local, state, and national government, and giving staff support called "technical assistance." Technical assistance means that SCACDC staff answer questions, make referrals, and visit CDCs to help with projects. Grants are given to member CDC's when funds are available. SCACDC also helps CDCs to become more visible by listing them on the website and including them in publications published by the SCACDC.
The SCACDC also provides to CDC's:
- Onsite technical assistance
- Organizational Assessments (Board, Staff and financial capacity)
- Leadership Development
- Referrals to qualified consultants that have the ability to help CDCs get started or create and enhance the programs they offer
- Help forming and operating meetings with local community members
- Help forming and maintaining relationships with state lawmakers and national funders
- Help hosting meetings with local and state law-makers
- Regional networking opportunities
- Monthly E-Newsletter
- Visibility for CDC's on our website and other publications throughout the year