Community development corporations

Definition

Community development corporations (CDCs) are nonprofit organizations that focus on revitalizing and improving the economic, social, and physical conditions of specific neighborhoods or communities. They emerged in the 1960s as a response to urban poverty and the civil rights movement, aiming to empower local residents by providing access to resources, services, and opportunities for community engagement.

5 Must Know Facts For Your Next Test

1. CDCs gained prominence during the Black Power movement, as they sought to address systemic inequalities affecting African American communities through local empowerment initiatives.
2. These organizations typically engage in various activities, including affordable housing development, job training programs, and community health services, aiming to improve overall quality of life.
3. Many CDCs are founded and led by community members who understand the unique challenges their neighborhoods face, ensuring that solutions are tailored to local needs.
4. Funding for CDCs often comes from a combination of government grants, private donations, and partnerships with businesses, which allows them to carry out their missions effectively.
5. CDCs play a vital role in fostering community engagement and collaboration, helping residents build social networks that strengthen their collective voice in local governance.

Review Questions

• How did community development corporations emerge as a response to the challenges faced by African American communities during the Black Power movement?
  • Community development corporations emerged in the 1960s as part of a broader response to urban poverty and civil rights activism. The Black Power movement emphasized self-determination and local empowerment, leading community leaders to establish CDCs that aimed to address systemic inequalities directly within their neighborhoods. By focusing on economic revitalization and social services, these organizations sought to empower residents and create sustainable change.
• Analyze the impact of community development corporations on local governance and community engagement in African American neighborhoods.
  • Community development corporations have significantly impacted local governance by fostering greater community engagement among residents. By empowering individuals with resources and opportunities, CDCs enable them to become more active participants in decision-making processes affecting their neighborhoods. This increased involvement helps to amplify their voices and address issues such as housing, education, and public health more effectively.
• Evaluate the role of funding sources in the effectiveness of community development corporations in achieving their objectives.
  • Funding sources play a crucial role in determining the effectiveness of community development corporations. Access to diverse funding streams—such as government grants, private donations, and business partnerships—enables CDCs to implement programs that directly address community needs. However, reliance on specific funding sources can also create challenges, such as constraints on program flexibility or a misalignment between funder priorities and community interests. Evaluating these dynamics is essential for understanding how CDCs can adapt and thrive in changing economic landscapes.

Related terms

Economic empowerment: The process of enhancing the economic status and power of individuals and communities, often through access to jobs, education, and financial resources.

Grassroots activism: A movement driven by the community members themselves, focusing on local issues and often seeking change through direct action and engagement.

Social capital: The networks of relationships among people in a community that enable them to work together effectively to pursue shared goals.