The Initiative Lexicon Capacity Building – the institutionalization of a nonprofit community economic development corporation’s ability to achieve their mission by providing the resources and technical assistance needed to increase productivity and to strengthen organizational infrastructure and administrative abilities enabling the organization to meet its mission.
Center of Excellence (COE) - a CDC that has attained the mastery of a specific area of Community Economic Development to the extent that this area becomes income generating and the expertise gained in attaining this mastery can be provided for a fee to other entities (both for and non-profit).
Community Based Business Enterprise (CBBE) – a. Community Based Business Enterprise—a enterprise that is owed, directed or managed by a individual, organization or company that is located in the community or neighborhood where the enterprise is housed
Consolidated Accounting System – an accounting service offered by the Initiative that will provide bookkeeping and accounting services from a centralized location utilizing remote Internet access to organizations.
Core Operating Investment – an operating grant made directly to an organization, is designed to insure that the CDC has the minimum financial resources necessary to support their basic core operating, administrative and staffing needs.
High-Performing CDC - a CDC that consistently exceeds established benchmarks and goals for Community Economic Development Productivity, Resource Development, Fiscal Management, Organizational Development and Governance.
Portfolio – a grouping of organizations receiving direct programmatic investments and technical assistance services.
Return On Investment – a direct line between a human or financial investment and an output or outcome.
Social Enterprise - a venture that seeks to achieve a “double-bottom line”. It is mission driven, but, is it is revenue-oriented at the same time. Is purpose is to generate financial resources that will support the work of a socially motivated organization.
Strategic Issue Management – a comprehensive custom-designed form of place-based, technical assistance that provides organizational capacity building expertise to organizations with issues related to organizational development, governance, administrative and or fiscal management and/or with a project’s design, implementation and or final execution.
Sustainability Strategy – a process that moves organizations in the Core Operating Investment Fund portfolio along a decreasing Initiative funding curve. Its purpose is to reduce an organization’s dependency on Initiative funding, while increasing their ability to attract and leverage resources from other sources and/or generate capital through their individual organizational expertise and performance.
a. Center of Excellence mission to profit
b. Community Based Business Enterprise profit to mission
Targeted Investment Fund (TIF) – an investment awarded to organizations that do not meet the core operating investment fund guidelines, or to organizations working to impact public policy effecting asset and wealth building strategies, or to organizations whose work is replicable, and/or is a benefit to the community economic development industry. Examples of a TIF are turn-around investments, human capital investments and core investment.
Turn-Around Investment – an 18 to 24 months investment available only to current Initiative grantees that have “lost their competitive edge” and/or are on the verge of organizational implosion. The maximum grant is $50,000 and must be matched 1:1 by a local source i.e. foundation, local unit of government, etc. The CDC must work in an atmosphere of total full disclosure with the Initiative staff, correct any administrative or programmatic issues and develop a strategic plan/vision designed to provide realistic direction to the organization in the future.
Working Capital Investment – a financial investment (in the form of grants, loans or equity investments), that enables an organization to use financial resources in ways that will induce and produce more revenue to the CDC’s bottom line. Working Capital investments have less restrictive criteria guidelines. Unlike core operating investments, working capital investments are based on specific need for: specialized equipment, enhanced technology, human capital or equity to help pay for their participation and ownership in a project.