![A woman with long red hair is pictured next to text about federal cuts threatening CDFIs and the role community foundations can play in filling the gap. Text includes her name, Kathleen O'Shea.](https://socialfinance.org/wp-content/uploads/2026/03/11-Kathleen-1000x673.png")
Impact Investments
Key Takeaway
In this op-ed for Next City, Kathleen O’Shea argues that as federal support for community development financial institutions (CDFIs) becomes increasingly uncertain, community foundations can play a critical role by redirecting a portion of their invested assets into CDFIs to sustain lending in low‑income communities.
In this op-ed, Kathleen O’Shea highlights how federal cuts and staffing turmoil at the CDFI Fund threaten a vital source of capital for more than 1,400 mission‑driven lenders. She argues that community foundations—holding over $150 billion in assets—are well‑positioned to fill this gap by investing directly in CDFIs, which offer strong track records, low risk, and the potential to recycle capital for greater local impact.
Related Insight
![Presentation slide titled "Debunking the Myths of Impact Investing from DAFs" with a photo of a person labeled Mike Silvestri.](https://socialfinance.org/wp-content/uploads/2025/02/Leah-6-e1739299503297-1000x583.png")