Glossary

Community development finance and ethical investment in the community sector are relatively new initiatives in  Australia, drawing upon the traditional finance industry, the community development movement and the strengthening market interest in ethical investment.

As an emergent field of work, this means that terms used may have different meanings to different people, with great potential for confusion and misunderstanding.  By providing a glossary, we aim to clearly define how we are using various terms and what we intend them to mean in this context.

We hope that this will assist in developing a commonly understood language that will be meaningful for everyone who is interested in participating in these innovative initiatives in Australia.

Listed alphabetically below are a number of key terms and definitions.

community development finance institution (CDFI)

CDFIs are a new type of financial organisation, focusing on social, economic and physical renewal in under-invested communities. They lend and invest in deprived areas and underserved markets that cannot access mainstream finance. They are sustainable, independent organisations that provide financial services with two aims: to generate social and financial returns.

CDFIs are a new type of organisation in Australia, however they are well established in the UK and similar organisations in the US are known as (  ).