ideas that makeeconomies work... foreveryone

2 0 0 0 A N N U A L R E P O R T

Corporation

For Enterprise

Development

ideas that makeeconomies work... foreveryone

cfed mission

The Corporation for Enterprise Development fosters

widely shared and sustainable economic well-being by

promoting asset-building and economic opportunity strategies—

primarily in low-income and distressed communities—that

bring together community practice, public policy, and private

markets in new and effective ways.

cfed vision

The Corporation for Enterprise Development envisions widely

shared, sustainable economic well-being in an inclusive,

productive economy where everyone is fully engaged and

appropriately rewarded.

cfed clusters

Individual Assets

Enterprise Development

Sustainable Economies

cfed services

Research & Demonstration

Field Services

Policy Analysis, Design, & Advocacy

Communications

The word that best captures the year 2000 for CFED is growth.

We have a larger staff, a bigger Board of Directors, and more square feet than at any time in our

21-year history. More importantly, though, our work is having greater impact, allowing us to

fulfill our mission in even more innovative ways than we had envisioned in the past.

Toward the end of 1999 every member of the organization participated in an intense, six-month

assessment to consider our performance and plan for how best to steward CFED through its

accelerating growth in staff, revenues, and visibility. The result was an ambitious three-year

strategic plan, which the Board approved at the beginning of 2000.

In our first year of implementing this plan, we made remarkable progress in achieving some of the

major goals we’d set. To sharpen the focus of our work and capture synergies among related

projects, CFED “clustered” its programmatic efforts into three broad areas—individual assets,

enterprise development, and sustainable economies—each with its own objectives,

leadership, and budget. We also invested heavily in essential infrastructure to support our

programmatic mission. We created or enhanced our communications, administration, technology,

finance, development, and human resources functions by assigning each a specific manager, work

plan, and budget.

Although it will take time for these investments to mature, we’ve already seen significant quality

improvements across the organization. A third component of the strategic plan calls for cross-

cluster competencies and coordination, which will be the next step in the evolution of CFED’s

management structure.

Any organization would find such dramatic reconfiguration a sizable challenge; CFED was no

exception. But 2000 had more change in store for us. CFED welcomed 18 new staff and said

farewell to five, so that by the end of the year we had 30 full-time employees. We expect even

dear friends...

more growth in 2001. To add to the general upheaval, our Washington, DC, office moved to a

larger space in the early fall—coinciding with activity on major Individual Development Account

(IDA) legislation on Capitol Hill.

CFED’s Board of Directors grew from eight to 15 members. We were delighted to welcome

David Dodson, president of MDC, Inc.; Fred Goldberg, partner at Skadden, Arps, Slate, Meacher,

Flom, LLP; Angela Glover Blackwell, president of PolicyLink; Maurice Lim Miller, executive director

of Asian Neighborhood Design, Inc.; Chris Page, program officer of Rockefeller Financial Services,

Inc.; Chuck Parrish, executive vice president of Phone.com, Inc.; and Hilary Pennington, president

of Jobs for the Future. Three new Board oversight committees began work on finance and

investments, development and endowment, and human resources and nominations.

Finally, CFED was awarded a gift of $2 million from the Charles Stewart Mott Foundation to

grow our endowment—the Investment in Innovations Fund—to more than $4 million. We are well

on our way to a three-year target of $15 million and are indebted to Benita Melton, Jack

Litzenberg, and Bill White for their support and guidance in securing this very generous grant.

This report can only share a few highlights of how CFED worked in the year 2000 to expand widely

shared and sustainable economic well-being—there is so much more. We are honored to lead an

organization with such dedicated staff, dynamic partners, and visionary funders. It is a tribute to

the character of those who comprise the CFED community that we have thrived through

such a rapid pace of change with our sense of humor intact and our vision still clearly

at the fore.

BRIAN DABSON, PRESIDENT BOB FRIEDMAN, CHAIR

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...Create incentives and systems that encourage and assist

all American individuals and families to acquire and hold assets.

...Identify, preserve, and build financial, human, social, and

environmental assets, especially in low-income communities

across the country.

...Advocate economic development policies and practices

that build a dynamic and inclusive economy.

cfed goals

building a strong financial future:growing cfed’s endowment

In late 2000, CFED received an extraordinary $2-million gift

from the Charles Stewart Mott Foundation to move the

organization closer toward self-sufficiency and its three-year,

$15-million endowment goal.

This gift was only the most recent installment in a tradition of financial

and intellectual support that spans more than 15 years. The Mott

Foundation has been a visionary funder and has partnered with CFED

in work that led to the Development Report Card for the States (DRC);

the Self-Employment Investment Demonstration; the Association for

Enterprise Opportunity; the Self-Employment Learning Project; the

Microenterprise Fund for Innovation, Effectiveness, Learning, and

Dissemination; the State Microenterprise Associations Initiative; the

Microenterprise Anti Poverty (MAP) Consortium; the American Dream

Demonstration (ADD); and so much more.

By bringing the Investment in Innovations Fund to more than $4

million, the Mott Foundation contributed to CFED’s permanence by

providing an enduring stream of revenue for flexibility, informed risk

taking, and innovation.

incorporating a national financialinstitution to advance microenterprise

In November 2000, CFED incorporated its first independent

subsidiary, the National Fund for Enterprise Development (NFED), to

support work at the state and regional levels to expand, leverage, or

consolidate resources for low-income entrepreneurs.

Throughout the nation, there is growing momentum among diverse

stakeholders to come together to capture economies of scale, deploy

capital, share learning, influence public policy, raise funds, and provide

services for microenterprise development. NFED will foster the growth

and success of these efforts by providing an enduring national

platform for funding, training, and technical assistance for state

microenterprise intermediaries.

NFED was designed in conjunction with the Association for Enterprise

Opportunity, microenterprise practitioners, investors, and others and is

certified by the Community Development

Financial Institutions (CDFI) Fund

of the U.S. Department of the

Treasury.

highlights of the year 2000

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expanding the assetsfor independence act

Throughout 2000, CFED closely monitored and communicated

information to the field about amendments and appropriations for the

Assets for Independence Act (AFIA)—Public Law 105-285. Enacted in

1998, AFIA authorized the U.S. Department of Health and Human

Services to establish a five-year, $125-million federal IDA demonstration.

In 1998 and 1999, Congress earmarked only $10 million of the

possible $25 million per year allowed by the legislation. Even with

limited funding, the demonstration enabled 40 non-profit organizations

to establish IDAs for low-income families. The IDA field rallied to

educate Congress about the importance of providing maximum

support for AFIA, and a full $25 million was approved for fiscal year

2001. With this increase, it is estimated AFIA will fund as many as

33,000 new IDAs.

Further, Congress and President Clinton approved significant

amendments to AFIA. Sponsored by Senators Gregg (R-NH), Harkin

(D-IA), and Kennedy (D-MA) and passed in December 2000, the

legislation expanded eligibility for AFIA-funded IDAs and aligned the

law with current IDA practice.

reinventing the development report card for the states

In October 2000, CFED transformed the Development Report Card for

the States (DRC) into an entirely online publication. The 14th annual

DRC continued to challenge other leading economic reports by using

more than 70 indicators to benchmark states, thus presenting a wider

view of economic performance and equity. In addition to customized

pages for all 50 states and regional trend analysis, the online DRC

allowed users to download raw data and customize queries

with specific combinations of states or indicators.

Data from the DRC was cited in at least

108 news stories in 42 states, and 6,000

unique users visited the web site before the

year’s end. Released amidst a flurry of

election-year rhetoric, the report provided a

realistic context for evaluating economic

promises and programs of local, state, and

federal candidates. The publication

elevated the profile and quality of debate

surrounding community economic

development, state tax incentives, regional performance, and more.

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contributions to the field

ACCESS Agency, Inc.Willimantic, CT

ACEnetAthens, OH

Acre Family Day CorporationLowell, MA

ADVOCAPOshkosh, WI

Alliance for Minnesota MicroenterpriseVirginia, MN

Alliance for MulticulturalCommunity ServicesHouston, TX

Allston Brighton CommunityDevelopment CorporationAllston, MA

Alternatives Federal Credit UnionIthaca, NY

Appalachian DevelopmentFederal Credit UnionThe Plains, OH

Assets for All AllianceSan Jose, CA

Bay Area IDA CollaborativeSan Francisco, CA

California Association forMicroenterprise OpportunityOakland, CA

California Capital, SmallBusiness Development CenterSacramento, CA

Caleb Community Development CorporationBaton Rouge, LA

Calvert Social Investment FoundationBethesda, MD

Capital Area Asset Building CorporationWashington, DC

Center for Community Self-HelpDurham, NC

Central Texas Mutual HousingAssociationAustin, TX

Central Vermont Community Action CouncilBarre, VT

Consumer Credit Counseling of DurhamDurham, NC

Community Action Program of EvansvilleEvansville, IN

Community Action Project of TulsaTulsa, OK

Community DevelopmentTechnologies CenterLos Angeles, CA

CTE, Inc.Stamford, CT

Detroit Non-Profit Housing CorporationDetroit, MI

East Bay Asian LocalDevelopment CorporationOakland, CA

Economic Opportunity Agencyof Washington CountyFayetteville, AR

Economic VenturesKnoxville, TN

Florida Association forMicroenterpriseOcean Ridge, FL

Foundation for Economic EducationWarsaw, Poland

Garfield Jubilee AssociationPittsburgh, PA

Georgia Microenterprise NetworkAtlanta, GA

Grand Rapids Opportunities for WomenGrand Rapids, MI

Greater Dwight Development CorporationNew Haven, CT

Hawaii IDA CollaborativeHonolulu, HI

Heart of America Family ServicesKansas City, MO

Housing AssistanceCorporationHyannis, MA

Human SolutionsPortland, OR

Institute for Market EconomicsSophia, Bulgaria

Institute for Responsible FatherhoodSan Diego, CA

International Center forEntrepreneurial StudiesBucharest, Romania

Jefferson EconomicDevelopment InstituteMount Shasta, CA

Juma VenturesSan Francisco, CA

Justine Peterson Housing and ReinvestmentSt. Louis, MO

Kansas MicroenterpriseOpportunity NetworkManhattan, KS

Kentucky Association ofMicroenterprise PractitionersLouisville, KY

Lenders for CommunityDevelopmentSan Jose, CA

Lexington Housing CommunityDevelopment CorporationLexington, NC

Maine Centers for Women,Work, and CommunityAugusta, ME

Martha O’Bryan CenterNashville, TN

Massachusetts Micro-Enterprise CoalitionBoston, MA

Michigan State UniversitySaginaw, MI

Microenterprise Council of MarylandBaltimore, MD

MicronetWiscasset, ME

MidAmerica LeadershipFoundationChicago, IL

Missouri Association for Social WelfareKansas City, MO

Montana CommunityDevelopment CorporationMissoula, MT

grants and investments made by cfed in 2000

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Mount Hope Housing CorporationBronx, NY

Mountain Association forCommunity EconomicDevelopmentBooneville, KY

North Carolina Department of LaborRaleigh, NC

Near Eastside IDA ProgramIndianapolis, IN

Nebraska EnterpriseOpportunity NetworkStanton, NE

Neighborhood EconomicDevelopment CorporationMesa, AZ

New Enterprises Fund, Inc.Christiansburg, VA

New Hampshire MicroBusinessResource PartnersConcord, NH

New Mexico CommunityDevelopment Loan FundAlbuquerque, NM

Northland InstituteMinneapolis, MN

Office of Economic OpportunityMurphy, NC

Oikos Community DevelopmentCorporationDayton, OH

Oregon Microenterprise NetworkEugene, OR

People Inc. of Southwest VirginiaAbingdon, VA

Rocky Mountain MutualHousing AssociationDenver, CO

Rural California Housing CorporationSacramento, CA

Shorebank CorporationChicago, IL

Shorebank Neighborhood InstituteChicago, IL

Statewide Emergency Network for Social andEconomic SecurityAlbany, NY

Steans Family FoundationChicago, IL

Tabor Community ServicesLancaster, PA

Technical Assistance Providers’ AssociationBarre, VT

Tennessee Network forCommunity and EconomicDevelopmentNashville, TN

Tulane-Xavier Campus AffiliatesNew Orleans, LA

United Way of AtlantaAtlanta, GA

Virginia Microenterprise NetworkRichmond, VA

Washington State Lenders NetworkTonasket, WA

West CompanyFort Bragg, CA

Westchester ResidentialOpportunities, Inc.White Plains, NY

Woodland CommunityDevelopment CorporationClarfield, TN

Women’s Self-Employment ProjectChicago, IL

Women’s Opportunity Resource CenterPhiladelphia, PA

YWCA of New Castle CountyWilmington, DE

cfed 2000 publications

IDAnetwork

Assets: A Quarterly Update for Innovators

The Development Report Card for the States

Pie in the Sky:

The Battle for Atmospheric Scarcity Rent

Common Assets:

Asserting Rights to Our Shared Inheritance

Curbing Business Subsidy Competition:

Does the European Union Have an Answer?

Accountability: The Newsletter of the

Business Incentives Reform Clearinghouse

Trade and Sustainable Development:

A Newsletter

Budgeting and Economic Development:

A Guide to Unified Development Budgets

A full listing and descriptions of CFED publications

is also available.

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individual assets

...to lay the

foundations for a

universal savings and

investment system

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guiding the americandream demonstration

Supported by 11 national foundations and

initiated by CFED in September 1997, the

American Dream Demonstration (ADD) is the

first large-scale test of IDAs as a social and

economic tool for low-income communities.

Although just beyond its midpoint, the five-

year ADD program has already yielded

significant results. It has influenced state and

federal IDA policy, refined effective practices

in IDA account and service delivery, and

generated a wealth of statistical data proving

that the poor can and will save to invest in

high-value assets like education, home

ownership and business start-up.

By mid-2000, 2,378 accountholders aged

13–72 were saving in ADD-supported IDAs.

Their average monthly net deposit was

$25.42; their cumulative savings total was

$838,443. Including matching funds, the total

asset accumulation was $2,482,951. As of

mid-2000, 13% of accountholders had already

made matched withdrawals. Among them,

approximately 24% purchased a home, 24%

invested in microenterprise, and 21% pursued

post-secondary education. The rest invested

in home repairs, retirement, or job training.

developing infrastructurein the IDA field

In 2000, CFED expanded its response to the

growing IDA field. Spurred in part by ADD

and supportive public policies but largely by

dynamic community leaders, IDA initiatives

grew from approximately four in 1996 to 250

in 2000. CFED expanded, improved, or

created a number of products or services,

including the following achievements:

...Substantially reworked IDAnetwork.org,

an online learning community

...Instituted a field-based, participatory

process for developing IDA program

certification standards

...Trained a cadre of 54 Americorps*VISTA

volunteers to build IDA programs nationwide

...Created a framework and partnerships to

develop a comprehensive financial literacy

curriculum

...Expanded the national IDA learning

conference to offer more than 30 workshops

to 550 participants

...Increased distribution of Assets, CFED’s

quarterly newsletter for IDA stakeholders,

and initiated more thematically based stories

designing a billion-dollarIDA marketplace

Working closely with federal policymakers,

IDA practitioners, academics, interest

groups, and others, CFED was instrumental

in recrafting legislation that would have

provided billions of dollars in tax credits to

support IDAs for low-income Americans.

Introduced in both chambers of Congress in

February, the Savings for Working Families

Act of 2000 (SWFA) gained tremendous

momentum and support throughout the year.

Only last-moment politics surrounding a

larger legislative proposal prevented SWFA

from becoming law in 2000.

However, SWFA laid the ground work for firm

bipartisan consensus and a broad coalition

of advocates who will support future IDA

policy initiatives. CFED is poised to lead a

strong effort in 2001 to change the U.S. tax

code to provide a permanent structure to

promote asset building for the poor.

1991

Center for Social Developmentat Washington University inSt. Louis publishes Assetsand the Poor—MichaelSherraden’s seminal bookoutlining the conceptualframework for IDAs

U.S. House ofRepresentatives SelectCommittee on Hunger hostsfirst federal hearings on IDAs

1992 1993Community-basedorganizations implement firstIDA initiatives

Iowa enacts first state IDA law

1994

CFED distributes first editionof the newsletter Assets: A Quarterly Update forInnovators

1995CFED hosts first national IDAconference in Chicago, IL;150 participants attend

CFED publishes first editionof the IDA Program DesignHandbook

field services ............................................................ ..........................

research & communications ..... .................................................. ............................

policy ....................... ........................ ....................................................

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1996Four IDA initiatives inoperation throughout theUnited States

Federal welfare reform lawincludes IDAs as a permissibleuse for Temporary Assistancefor Needy Families (TANF) funds

1997CFED, the Center for SocialDevelopment, and 11national funding partnerslaunch national IDA policydemonstration: the AmericanDream Demonstration (ADD)

1998CFED hosts national IDAconference in Chicago, IL;attendance grows to 300

CFED launches the IDALearning Network—an onlinecommunity to foster informa-tion exchange on IDAs

CFED publishes BuildingAssets for Stronger Families,Better Neighborhoods, andRealizing the AmericanDream—a report on researchrelated to assets and asset-building policies

Assets for Independence Act(AFIA) becomes law,establishing a 5-year, $125-million federal IDAdemonstration

1999CFED hosts national IDAlearning conference inOakland, CA; 450participants attend

CFED trains and assigns 46Americorps*VISTA volunteersto build U.S. IDA initiatives

HHS Office of CommunityServices awards 40 grantsunder the AFIAdemonstration project

Clinton discusses IDA-likesavings accounts in State ofthe Union address

HHS Office of RefugeeResettlement makes fundsavailable to establish andmanage IDAs for refugees

2000CFED hosts national IDAlearning conference in Austin,TX; 550 participants attend

CFED trains and assigns 54Americorps*VISTA volunteersto build U.S. IDA initiatives

Approximately 250 U.S. IDAinitiatives in operation

CFED and stakeholders inthe field develop and refineframework for voluntarycertification of IDA initiatives

Center for Social Developmentpublishes Savings and AssetAccumulation in IndividualDevelopment Accounts, thefirst comprehensive report ondata generated by the ADD

CFED unveils IDAnetwork.org—an expanded and updatedversion of the online IDALearning Network

Congress considers Savingsfor Working Families Act—multibillion-dollar tax legis-lation to promote IDAs

Assets for Independence Act(AFIA) appropriation is $25million for Fiscal Year 2001

Gore and Bush both includeIDAs or IDA-like accounts incampaign messages

field services ...

research & communications.................................................. ............................

policy................ ...........................

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Looking forward...

While stewarding the Savings for Working

Families Act through Congress, CFED will

help financial institutions prepare to

implement the law and will provide

technical assistance, training, and tools to

further develop the infrastructure of the

IDA field.

enterprise development

...to develop enterprises

and human capital through

finance, education, and

policy development

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making microenterprise a priority

In 2000, CFED significantly expanded its

State Microenterprise Association Initiative,

doubling grant awards to $160,000—16

awards—and convening an intensive two-

day meeting of 40 associations and others to

examine management and public policy

advocacy issues.

Managed by CFED, the Microenterprise Anti

Poverty (MAP) Consortium is an ongoing

partnership among leading national

organizations to promote federal policies in

support of low-income entrepreneurs.

Throughout the year, MAP Consortium

partners educated policymakers about the

importance of the Program for Investment in

Microentrepreneurs (PRIME) Act—landmark

legislation that authorizes federal funds for

training and technical assistance for low-

income entrepreneurs. Partners in the MAP

Consortium successfully made the case for a

$15-million appropriation in fiscal year 2001.

CFED also launched its State TANF–

Microenterprise Initiative by making grants to

support state leaders who advocate

microenterprise as a path from welfare

dependence to economic self-sufficiency.

investing in innovation indevelopment finance

In April and October, CFED’s Local Capital

Markets Investment Fund made seven

investments averaging $75,000 in

community development financial

institutions (CDFIs) on the cutting edge of

policy and practice.

Guided by its investment committee of

bankers and other development lenders,

the Fund made several targeted

investments in:

...A new financing entity to reinvest idle

funds held by revolving loan funds

...Financial assessment and planning

software

...Marketing materials and strategies to

attract new sources of private capital for

small businesses

...An integrated management information

system to assess the social and economic

impact of investments in small businesses

...A new equity investment product

designed for rural businesses

building an informationinfrastructure for CDFIs

In 2000, the groundbreaking CDFI Data

Project made significant progress toward its

goal of creating a sustainable data collection

and management system for the nation’s

community development financial Iinstitutions

(CDFIs).

The project convened nine national

organizations that collectively represent the

breadth of the CDFI field. In October, each

organization agreed to collect and share

fiscal year 2000 data from 450 CDFIs and

other development finance institutions.

Goals of the project include reducing the

reporting burden of development finance

institutions over time, as well as building

capacity in CDFIs and the trade associations

participating in the project. In 2001, the

project will produce a business plan that

outlines an information infrastructure over

three to five years.

This project will transform the way CDFI data

is collected and used in the development

finance field.

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1991The Association forEnterprise Opportunity, a national microenterprisetrade association, starts up

The Aspen Institutelaunches the Self-Employment LearningProject—a five-yearlongitudinal study of low-income entrepreneurs—based on CFED design

CFED hosts the FederalMicroenterprise PolicyInstitute, where practitionersand policymakers discussinitiatives and regulations tosupport microenterprise

CFED testifies beforeCongress on the efficacy ofmicroenterprise developmentas an antipoverty strategy

Microenterprisedevelopment becomes aneligible activity under theJob Training PartnershipAct, which launches a grantprogram for statemicroenterprise training andtechnical assistance

1992CFED launches State HumanInvestment PolicyDemonstration in Iowa, NorthCarolina and Oregon

1993

The federal CommunityDevelopment FinancialInstitutions Act passes,expanding access to credit,investment capital, andfinancial services forunderserved communities

1994 1995CFED hosts internationalconference on self-employment andunemployment insurance inpartnership with the U.S.Department of Labor and theOrganization for EconomicCooperation and Development

CFED testifies before theU.S. House of Representa-tives on alternative uses ofemployment compensation

Microenterprise developmentis included as an eligibleactivity in the federalPersonal Responsibility andWork Opportunity Act(known as welfare reform)

field services ........... ...................................................

research & communications...... ............................................................................

policy ...................... ........................ ..........................

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1996CFED begins work to createthe State MicroenterpriseAssociation Initiative topromote practitionernetworks

CFED publishes Realizing thePromise of Microenterprisefor Welfare Recipients—guidelines for states toharness welfare reform insupport of low-incomeentrepreneurs

Microenterprise developmentis included as an eligibleactivity in federal welfare-to-work legislation

1997Microenterprise Fund forInnovation, Effectiveness,Learning, and Disseminationforms to develop, document,and disseminate effectivepractices in employingmicroenterprise as anantipoverty strategy

CFED convenes Microenter-prise Anti Poverty (MAP)Consortium to advancepolicy innovation in supportof microenterprise

1998CFED releases findings fromthe National Revolving LoanFund Census and sevenstate revolving loan fundprofiles at the nationalCounting on Local CapitalInstitute

CFED hosts first annual StateMicroenterprise AssociationInitiative convening in Wash-ington, DC; 30 participantsattend

Program for Investment inMicroentrepreneurs Act(PRIME) becomes law,providing funds to supportlow-income entrepreneurs

The White House presentsfirst Presidential Awards forExcellence in Microenterprise

1999CFED collaborates withprominent nationalorganizations to create theCDFI Data Project

CFED launches the LocalCapital Markets InvestmentFund to spur innovation andthe creation of replicablemodels for the developmentfinance industry

CFED hosts annual StateMicroenterprise AssociationInitiative convening in Wash-ington, DC; 35 participantsattend

CFED receives PresidentialAward for Excellence inMicroenterprise Development

2000CFED launches State TANF-Microenterprise Initiative,awards initial grants in fivestates

CFED founds National Fundfor Enterprise Development–the first national intermediaryfor microenterprise

CFED hosts annual StateMicroenterprise AssociationInitiative convening in Wash-ington, DC; 40 participantsattend

Practitioners from across thecountry travel to Washington,DC, and successfullyadvocate for a $15-millionappropriation for the PRIMEAct

field services ...

research & communications ...........................

policy ..............

Looking forward...

In addition to nurturing NFED, CFED will

identify new sources of microenterprise

capital and will increase the number,

amount, and scope of investments in new

tools to strengthen development finance

institutions.

sustainable economies

...to promote economic

opportunity through

effective, accountable,

environmentally

compatible development

= clickable link for more information

balancing trade vs.sustainable development

In 2000, CFED and the Harrison Institute of

Public Law at Georgetown University launched

a multi-year project to strengthen the

governing capacity of state and local officials

in an increasingly global economy. An

ambitious work plan to better balance goals

of increased trade and sustainable economic

development has already resulted in the

following accomplishments:

... A study tour to Europe to explore

international solutions to subsidy competition

...Publication of Curbing Business Subsidy

Competition: Does the European Union Have

an Answer?

... A monthly electronic newsletter on trade

and local development (www.cfed.org)

... A symposium on global incentive reform

in Washington, DC

...Addresses to four state legislatures

...Research into potential trade law impacts

on a number of state laws

...New resources for the online Business In-

centives Reform Clearinghouse (www.cfed.org)

engaging an environmentalequity constituency

CFED and its partners jointly launched

Americans for Equitable Climate Solutions

(AECS), a nonprofit organization promoting

ways to cut carbon emissions but protect

some individuals, communities, and

industries that may be harmed by higher

energy prices. Although often seen as a

purely environmental debate, attempts to

stem global warming affect the interests of

labor, community development proponents,

antipoverty advocates, state and local

policymakers, and others. Through AECS,

CFED hopes to give those groups a stronger

voice in the debate.

CFED also helped organize an equity coali-

tion in association with the Sky Trust Initia-

tive. Sky Trust proposes to limit how much

carbon can be put into the atmosphere, allow

the market to set a price on emission rights,

collect revenue from those who purchase the

right, and return proceeds to the owners of

the sky—the public. CFED developed and

published briefing materials about the

economic equity components of the

environmental debate and the impact of

global warming on minority communities in

the United States.

fostering internationalexchange

As part of its Economic Development

Fellowship Program, CFED arranged six

international fellowship tours in 2000 to

share information and encourage innovation

in worldwide economic development policy

and practice. Small groups of development

professionals from Bulgaria, Germany,

Poland, and Romania met with their

American counterparts to learn about topics

such as taxation and business climate,

tourism development, regional development

strategies, workforce training, and

public–private partnerships.

A fellowship program also allowed a group

from the United States to travel to Europe to

study multilateral trade and investment

agreements. Trips typically lasted three

weeks and included a total 41 participants

from the five countries.

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1991CFED manages multi-sitecommunity capacity-buildingdemonstration in Mississippiand publishes lessons learnedto promote effective practices

Edison Electric Institutecommissions CFED todevelop a community-basedeconomic developmentworkbook and train morethan 100 development staffof investor-owned utilities

1992The Nature Conservancypartners with CFED tofacilitate a community-wide,environmentally compatibledevelopment plan withNorthampton County, VA

The AFL-CIO funds CFED toresearch and write WorkingCapitols, a major work onstate economic developmentpolices and practices

States and communitiesseek guidance about how to manage effectiveeconomic development inthe midst of recession;CFED presents Hard Times,Smart Choices

CFED trains activists andopinion leaders on theimportance of equity,accountability, and quality oflife in making economicdecisions

1993Rethinking RuralDevelopment reports CFED’swork with developmentpractitioners in sparselypopulated areas to testideas, tools, and policies topromote economicinvestment outside urbancenters

CFED develops, tests, andpromotes an economicanalysis tool to create abenchmarking system forregional development

1994

CFED publishes Bidding forBusiness, a critical analysisof how cities and states canerode quality of life when ledastray by tax-based businessincentive competition

CFED presents policyalternatives to tax-basedbusiness incentives

1995

Massachusetts and NorthCarolina seek assistance inexamining the practice oftax-based businessincentives and work to makepublic investments moreequitable and cost-effective

field services............ .....................................................

research &communications .............................. ......................... ...........................

policy................................................

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1996 1997Indiana Economic Develop-ment Council, the Environ-mental Defense Fund, andCFED collaborate to developthe Profits, Productivity, andPollution Prevention programto weave together environmen-tal concerns and economicperformance in mainstreambusiness practices

Environmentally compatibleeconomic development ispromoted through a resourcebook, Building HealthyCommunities

1998CFED launches the EconomicDevelopment Fellowship Pro-gram (EDFP) to promoteinternational exchangebetween economic develop-ment policymakers, practi-tioners, and opinion leadersin Europe and the UnitedStates

Business Incentive ReformClearinghouse, an interactiveweb site at cfed.org,provides local, state, andfederal policymakers with thebest ideas for holdingbusiness incentives to ahigher standard ofaccountability

CFED incubates the SkyTrust concept to seek aneconomically equitablesolution in global climatechange policy

1999More than 38 internationaleconomic developmentpolicymakers, practitioners,and opinion leaders engagein six independent U.S. studytours as part of CFED’s EDFP

CFED and the HarrisonInstitute of Georgetown LawCenter research threatsposed by global trade andinvestment agreements tostate and local economicdevelopment policies andprograms

The Center on Budget andPolicy Priorities joins CFED todevelop, propose, andpublish creative public andprivate sector strategies inCreating Jobs

2000CFED President, BrianDabson, becomes Chair ofthe international Forum onSocial Innovations to fostertransatlantic exchangebetween North America andOrganisation for EconomicCo-operation and Develop-ment (OECD) membernations

Nearly 50 internationaleconomic development policy-makers and practitionersengage in six independentU.S. study tours as part ofCFED’s EDFP

CFED elevates the profile ofappropriate economicdevelopment by retooling the14th annual DevelopmentReport Card for the States asan entirely online publication

Americans for EquitableClimate Solutions incorporatesto push for the Sky Trustagenda, which is furtherrefined by CFED’s Pie in theSky publication

field services..............................

research &communications ........................

policy ...................................................................

Looking forward...

With an eye toward equity, economy, and

the environment, CFED will work

collaboratively across national borders to

address common threats such as growing

inequality, increasing globalization, and

climate change.

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cfed partners & investors

Anonymous

Bank of America

BP Amoco Foundation

Capital Area Asset Building Corporation

The Annie E. Casey Foundation

Chase Manhattan Bank

Citigroup Foundation

Richard Cohon

Corporation for National Service

The Energy Foundation

Fannie Mae Foundation

Ford Foundation

German Marshall Fund of the United States

Governors State University—South Metropolitan Regional Leadership Center

F.B. Heron Foundation

The Joyce Foundation

Ewing Marion Kauffman Foundation

W.K. Kellogg Foundation

Levi Strauss Foundation

The John D. & Catherine T. MacArthur Foundation

Microsoft Corporation

Charles Stewart Mott Foundation

Ms Foundation for Women

National Community Capital Association

The New York Community Trust

The Philanthropic Collaborative

Redefining Progress

San Francisco Foundation

South Dakota Rural Enterprise, Inc.

Surdna Foundation

Tides Foundation

Turner Foundation

W. Alton Jones Foundation

Wallace Global Fund

Winthrop Rockefeller Foundation

groups & individuals providing over $10,000 in 2000 revenues...

1990—$1,427,949

1991—$1,447,109

1992—$1,712,539

1993—$1,665,882

1994—$1,816,726

1995—$1,768,932

1996—$2,921,993

1997—$2,826,681

1998—$4,142,068

1999—$5,425,933

2000—$7,290,747

net assets...

1990—($11,222)

1991—($131,057)

1992—($127,899)

1993—($129,022)

1994—$58,715

1995—$43,497

1996—$1,005,127

1997—$4,087,821

1998—$4,551,409

1999—$8,697,517

2000—$9,377,991

Continued rapid growth and major investments in internal

capacity led to a mixed financial result for 2000.

On the one hand...

...Total assets increased by 16.2% from almost $9 million in 1999 to $10.4 million in 2000.

...Cash and cash equivalents increased by 21% from $6.4 million to $7.7 million.

...Earned revenues (services, communications, and net assets released from purpose

restrictions) rose by 40% from $5 million to $7 million.

On the other hand...

...Unrestricted assets decreased by $321,465 of which $101,092 was a loss on

investments.

...While total revenues increased by 34%, total expenses increased by 53%.

...The fund balance (unrestricted, undesignated reserves) decreased from $495,506 to

$186,722.

2000 financial highlights

1999 2000

statement of activitieschange in unrestricted net assetsrevenue, gains, and other support

Service revenue $ 906,746 $ 954,092Interest and dividends, including amounts earned on

designated reserve of $88,412 and $66,225, respectively 177,312 262,614General support — 113,700Communications revenue 32,690 14,848Other 38,847 12,596Contributions 108,000 3,000Net unrealized (losses) gains on investments 108,237 (101,092)

net assets released from restrictionsSatisfaction of program and time restrictions 4,054,101 6,030,989

———————————————————————— ————————————————————————

total revenue, gains, and other support . . . . . . . . . . . . . . . 5,425,933 . . . . . . . . . . . . . . 7,290,747

expensesprogram services

Services 4,580,922 6,985,081Communications 92,863 15,363

———————————————————————— ————————————————————————

Total program services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,673,785 . . . . . . . . . . . . . . 7,000,444

supporting servicesManagement and general 307,498 611,768

———————————————————————— ————————————————————————

total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,981,283 . . . . . . . . . . . . . . 7,612,212

change in unrestricted net assets . . . . . . . . . . . . . . . . . . . . . . . . . . 444,650 . . . . . . . . . . . . . . (321,465)Service revenue 7,145,559 7,032,928Contributions 610,000 —Net assets released from restrictions:

Satisfaction of program and time restrictions (4,054,101) (6,030,989)———————————————————————— ————————————————————————

change in temporarily restricted net assets. . . . . . . . . . . . . . . . . 3,701,458 . . . . . . . . . . . . . . 1,001,939———————————————————————— ————————————————————————

change in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,146,108 . . . . . . . . . . . . . . . . 680,474

net assets, beginning of year 4,551,409 8,697,517———————————————————————— ————————————————————————

net assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,697,517 . . . . . . . . . . . . . . $9,377,991

1999 2000

assetscurrent assets

Cash and cash equivalents $6,359,366 $7,693,616Contracts, contributions, and grants receivable 1,020,929 666,344Other receivables 89,425 4,549Prepaid expenses 34,414 100

———————————————————————— ————————————————————————

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,504,134 . . . . . . . . . . . . . 8,364,609

noncurrent assetsProperty and equipment, net of accumulated

depreciation of $254,916 and $222,122, respectively 47,430 107,667Investments 1,422,883 1,956,778Security deposit 2,242 2,242

———————————————————————— ————————————————————————

Total noncurrent assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,472,555 . . . . . . . . . . . . . 2,066,687———————————————————————— ————————————————————————

total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,976,689 . . . . . . . . . . . . . 10,431,296

liabilities and net assetscurrent liabilities

Accounts payable and accrued expenses $252,207 $859,641Deferred revenue 26,965 185,669Deferred rent — 7,995

———————————————————————— ————————————————————————

Total current liabilities 279,172 1,053,305———————————————————————— ————————————————————————

total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,172 . . . . . . . . . . . . . 1,053,305

commitments & contingenciesnet assets

UnrestrictedUndesignated 495,506 186,722Designated reserve 1,422,883 1,410,202

———————————————————————— ————————————————————————

1,918,389 1,596,924

Temporarily restricted 6,779,128 7,781,067———————————————————————— ————————————————————————

total net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,697,517 . . . . . . . . . . . . . 9,377,991———————————————————————— ————————————————————————

total liabilities and net assets . . . . . . . . . . . . . . . . . . . . . . . . . 8,976,689 . . . . . . . . . . . . . 10,431,296

financial position

cfed staff

Shawnice Blakes (from 6/00)Administrative Assistant

Ray BosharaPolicy Director

Beverly Brandon-SimmsChief Financial Officer

René Bryce-LaporteSenior Program Manager

Cecilia Cuthbert (from 2/00)Office Manager

Brian DabsonPresident

Colleen DaileyProgram Manager

Mary-Elizabeth Davis (to 11/00)Senior Accountant

Tiffany Eng (to 8/00)Program Coordinator

Robert FriedmanChair

Peter Genuardi (from 9/00)Program Associate

Inger Giuffrida (from 6/00)Program Director

Brian Grossman (to 7/00)Program Director

Matt HullProgram Manager

Roberta Lamb Jackson (to 6/00)Program Coordinator

Martina James (to 8/00)Program Manager

LaShelle Jenkins (from 8/00)Office Manager

Lisa KawaharaAdministrative Manager

Linda KeeneyCommunications Manager

Patricia Kennedy (from 10/00)Program Manager

Andrea LevereVice President

Jennifer Malkin (from 10/00)Program Associate

Deborah ManleyEmployee Services Manager

Kent MarcouxProgram Director

Leslie Parrish (from 6/00)Program Manager

Danielle Passareti (from 4/00)Americorps*VISTA Leader

Kim Pate (from 9/00)Senior Program Manager

Carl RistProgram Director

Jenanne Rock (from 7/00)Americorps*VISTA Leader

Bruce Ruffin (from 6/00)Americorps*VISTA Leader

Heather SabrieSenior Communications Manager

William SchwekeSenior Program Director

Steve Shepelwich (from 3/00)Senior Program Manager

Javier Silva (from 9/00)Program Manager

Anna SmithAccounting Technician

Sandi Smith (from 2/00)Senior Program Manager

Sean StickleSenior Technology Manager

Helen Payne Watt (to 6/00)Senior Program Manager

Jennifer Willson (from 8/00)Communications Associate

Karen Wilson (from 2/00)Development Director

LISTS ARE CURRENT AS OF

DECEMBER 31, 2000

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board of directors

Rebecca AdamsonPresident, First NationsDevelopment InstituteFredericksburg, VA

William BynumPresident and CEO, EnterpriseCorporation of the DeltaJackson, MS

Brian DabsonPresident, Corporation forEnterprise DevelopmentWashington, DC

David DodsonPresident, MDC, Inc.Chapel Hill, NC

Robert FriedmanChair, Corporation for Enterprise DevelopmentSan Francisco, CA

Fred Goldberg, Jr.Partner, Skadden, Arps, Slate,Meacher, Flom, LLPWashington, DC

Angela Glover BlackwellPresident, PolicyLinkOakland, CA

Ronald GryzwinskiChairman, Shorebank CorporationChicago, IL

Maurice Lim MillerExecutive Director, Asian Neighborhood Design, Inc.San Francisco, CA

Chris PageProgram Officer, Rockefeller Financial Services, Inc.New York, NY

Chuck ParrishExecutive Vice President,Phone.com, Inc.Redwood City, CA

Hilary PenningtonPresident, Jobs for the FutureBoston, MA

Janet ThompsonVice President, Citibank N.A.New York, NY

Joan WillsDirector, Institute for Educational LeadershipWashington, DC

Grace YoungDirector, ConcurrentTechnologies CorporationCamden, SC

LISTS ARE CURRENT AS OF

DECEMBER 31, 2000

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national office southern office western office

777 N Capitol St NE 123 W Main St 353 Folsom St

Suite 800 Third Floor San Francisco, CA

Washington, DC Durham, NC 94105

20002 27701 415.495.2333

202.408.9788 919.688.6444 415.495.7025

202.408.9793 919.688.6580

To learn more about CFED, visit www.cfed.org

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Corporation

For Enterprise

Development

777 N Capitol St NE

Suite 800

Washington, DC

20002