NFF launches $3.7M Newark initiative for 10 community groups

Nonprofit Finance Fund, The Prudential Foundation and Victoria Foundation have launched a two-year, $3.7 million effort to strengthen 10 Newark community development corporations. The initiative is meant to improve cash flow, diversify funding and boost long-term neighborhood investment in the city.

Why it matters: - Newark’s community development corporations help shape affordable housing, education, food access, workforce development and neighborhood stability. - The new initiative is designed to make those organizations more financially resilient so they can expand local development and community wealth. - Stronger CDC balance sheets can improve how money flows into neighborhoods and how long projects can last.

What happened: - Nonprofit Finance Fund launched the Resiliency and Capital Access Initiative with support from The Prudential Foundation and Victoria Foundation. - The effort is a two-year, $3.7 million collaboration focused on Newark community development corporations. - The initial cohort includes 10 organizations: Clinton Hill Community Action, FOCUS Hispanic Center for Community Development, Ironbound Community Corporation, La Casa de Don Pedro, Lincoln Park Coast Cultural District, New Community Corporation, South Ward Promise Neighborhood (BRICK), Unified Vailsburg Service Organization, United Community Corporation and Urban League of Essex County. - Aisha Benson, NFF president and CEO, said the collaboration is a unique approach to systems change that builds the power of organizations committed to Newark.

The details: - The Prudential Foundation provided a $3.5 million grant for the initiative. - Victoria Foundation contributed a $175,000 grant. - NFF will work with the cohort to improve cash flow management. - The program also aims to help the organizations build adaptable business models. - Participants will be encouraged to strengthen strategic reserves and diversify funding sources. - The goal is to improve financial sustainability for CDCs so they can support economic security, community wealth and prosperity for Newark residents. - Shané Harris, vice president of Inclusive Solutions at Prudential Financial and president of The Prudential Foundation, said the foundation views the effort as part of its 20-year history with NFF. - Harris said the investment is intended to help organizations with deep community knowledge expand economic opportunity and address local needs. - Craig Drinkard, executive officer of Victoria Foundation, said the partnership is aimed at building a resilient network of CDCs that can handle capital market complexity and uncertainty. - NFF describes itself as a nonprofit lender, consultant and advocate that has helped organizations access money and resources since 1980.

Between the lines: - The collaboration signals a shift from short-term project funding toward strengthening the financial infrastructure of neighborhood groups. - The focus on reserves, cash flow and diversified revenue suggests the funders want CDCs to weather market swings and keep working through uncertainty. - The initiative also reflects a broader strategy of using local organizations as trusted channels for economic mobility in Newark.

What's next: - The 10 CDCs will work with NFF over the next two years to implement the financial improvements. - The initiative is expected to support more durable operations and better position the organizations for future capital access. - Victoria Foundation says the work is meant to help create a more robust and equitable local economy for Newark residents.

The bottom line: - The $3.7 million collaboration is less about one-time aid and more about building lasting financial strength for Newark’s neighborhood development network. - If it works, the model could help more community groups grow without losing stability.

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