Wall Street without Walls Opens the Door to Capital Markets: In the Face of Cutbacks in Federal, State and Local Funding, Foundation Portfolio Shrinkage and Generally Tough Times Economically, Demand for Services from Community-Based Organizations Is Increasing

By Nelson, John | Partners in Community and Economic Development, Winter 2003 | Go to article overview

Wall Street without Walls Opens the Door to Capital Markets: In the Face of Cutbacks in Federal, State and Local Funding, Foundation Portfolio Shrinkage and Generally Tough Times Economically, Demand for Services from Community-Based Organizations Is Increasing


Nelson, John, Partners in Community and Economic Development


Facing challenging conditions in the disadvantaged urban and rural areas they serve, community development leaders have fewer available resources than ever to maintain essential services, build affordable housing, lend money to small businesses and revitalize impoverished areas.

Community development corporations (CDCs) and community development financial institutions (CDFIs) are all looking for innovative ways to finance their projects and programs, and the Wall Street Without Walls ([W.sup.3]) program is designed to help them.

At first glance, it might seem unlikely that Wall Street investment bankers would be a potential funding source for community development projects. But increasingly, nonprofits across the country are recognizing that their assets and projects can attract traditional, structured finance mechanisms. The challenge is how to overcome barriers to capital markets that impede capital flows to needy communities.

Identifying barriers to capital markets

Most CDCs and CDFIs capitalize their activities through traditional sources of public, private and philanthropic investments and contributions. "Unblocking Obstacles to Capital Markets for Community Development Lenders," a paper by Gregory Stanton, director of the Capital Markets Access Program and the Wall Street Without Walls Initiative, offers insight. He says the major hurdle facing community development practitioners nationwide is that grant and concessionary-rate capital from philanthropy and government sources is declining and likely to decline more, while the need for community and economic development (CED) projects, such as affordable housing, is increasing.

Finding a solution to this "capital gap" will require the collaborative efforts of practitioners, philanthropists, social investors and capital market financiers to create debt instruments that can attract institutional investors into the CED marketplace. Facilitating discussions about how to bridge the "capital gap" is part of the work being done by [W.sup.3]]

Connecting Wall Street with CBDOs

The objective of [W.sup.3] is to connect traditional institutions with community-based development organizations (CBDOs) in both and urban and rural low-and moderate-wealth communities, thus giving them access to the financial products of the capital markets. The program links finance professionals with local economic development organizations to offer expertise in addressing the concerns of disadvantaged small businesses, individuals and families.

By encouraging and facilitating volunteer investment banking, and ultimately capital markets services, Wall Street Without Walls aims to improve economic conditions in low-wealth communities by aiding the nonprofits that serve them. This crucial technical assistance harnesses Wall Street expertise in real estate finance as well as structured, public and nonprofit bond finance in order to make markets accessible. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Wall Street without Walls Opens the Door to Capital Markets: In the Face of Cutbacks in Federal, State and Local Funding, Foundation Portfolio Shrinkage and Generally Tough Times Economically, Demand for Services from Community-Based Organizations Is Increasing
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.