The Community Investment Tax Credit:
A Report on Impact in 2022
Since its inception in 2014, the Massachusetts Community Investment Tax Credit (CITC) program has been an integral and reliable source of funding for Community Development Corporations (CDCs) across the state. In 2022, CDCs raised over $16 million to support their activities through this program. The CITC program provides an avenue of fundraising for CDCs that allowed for the growth and adaptation of programs across the state in response to the most pressing needs of their communities. Below are a few of the most noteworthy ways in which CITC made a difference in 2022.
Every year CDCs commit themselves to gather data and report on the six main aspects of their work: community leader engagement; families supported; homes built or preserved, job opportunities created or preserved; small business entrepreneurs assisted; and funds invested by CDCs in local communities. This invaluable data provides a unique window on the multiple in which CDCs respond to the most pressing needs of their constituents.
In Calendar Year 2022 CDCs:
- Engaged 1,640 community leaders
- Created or preserved 1,476 homes
- Created or protected 6,100 jobs
- Provided technical or financial assistance to 1,846 entrepreneurs
- Provided some form of support to 84,265 families
- Invested more than $1.6 billion in the communities they serve
CDCs also measure their impact by tracking increases in their capacity in three main areas: staff growth; program expansion; and investment in infrastructure improvements. CITC has contributed to increased CDC impact by making possible impressive growth in each of these areas.
Expanding Staff Capacity:
The ever-growing demand for CDC services stretches the capacity of CDC staff teams. New investments made possible by CITC have allowed many CDCs to expand staff capacity in response to expanded demand from community residents. In 2022 89% of CDCs reported that they were able to expand their staffing. Because of the lack of restrictions on resources provided through CITC, CDCs are able to add staff in areas of highest need. The agility provided by CITC was particularly important during the difficult times of the pandemic, and it remains a key contribution of the program as agencies slowly resume traditional patterns of programming.
Expanding or Adding Programs:
CITC also allowed many CDCs to expand existing programs and, in some cases, add new programs in response to community needs. According to data collected for 2022, 70% of CDCs were able to either add additional programs to their repertoire or expand upon their existing programs in the face of growing needs in their communities. During the same period, more than two-thirds of CDC’s provided affordable housing in one manner or another, speaking to the ever-growing housing affordability crisis across the state.
Improving Technological, Physical, and Human Infrastructure:
In 2022 CDC's were able to make critical improvements in their technological, physical, and human infrastructure. It is this infrastructure that allows agencies to meet the needs of their community members. Although the pandemic has been declared over, the need for virtual counseling/coaching remains high, meaning that CDCs still need to be thinking about online security and related technical issues. In 2022, almost 40% of CDCs were able to invest in communications system upgrades to better serve their clients and community members. These upgrades have also supported the continuing professional development of their teams by allowing staff to take advantage of a wide range of training opportunities.
In addition, 31 CDCs expanded or added new community engagement activities in 2022, ranging from increased Board of Directors engagement and diversity to increased volunteerism and community outreach. When the legislation creating CITC was adopted in 2012, CDCs across the state knew that this program would open new opportunities to them and those they serve. The actual results of this unique initiative have, however, exceeded even their most optimistic expectations. As a program leveraging public and private support to address critical community needs, CITC strengthens a set of dynamic bedrock institutions whose collective mission is to ensure that all Massachusetts residents have an opportunity to thrive.