Opportunity Finance Network

The Opportunity Finance Network (OFN) is a U.S. nonprofit organization that operates as the leading national network of Community Development Financial Institutions (CDFIs). With over 470 member institutions, OFN works to ensure that communities underserved by mainstream finance have access to affordable and responsible financial products and services.

History and Mission

Founded nearly 40 years ago, OFN's mission is to facilitate capital flow to underserved areas, including rural, urban, and Native communities. As a trusted intermediary, OFN bridges the gap between CDFIs and public and private sector partners, enabling investment to catalyze economic opportunities in these communities.

Activities and Impact

Through its network, OFN has cumulatively provided over $124 billion in financing across all 50 states, the District of Columbia, and Puerto Rico. OFN supports policy advocacy to further enable CDFIs to make a greater impact nationwide. The organization also offers investment opportunities for corporations and philanthropic entities, allowing them to invest in economic development projects that align with their social and financial goals.

Initiatives and Funds

OFN manages several initiatives and funds aimed at supporting CDFIs. One notable initiative is the Finance Justice Fund, which seeks to raise over $1 billion from corporate and philanthropic partners to support CDFIs serving the most disinvested communities. Additionally, OFN collaborates with major corporations like Google, which has provided substantial loans and grants to support small businesses through the CDFI network.

Membership and Partnerships

To become a member of OFN, organizations must apply and, if accepted, pay annual dues based on their size. Membership is not universal, but it is available to those who align with OFN's mission and goals. OFN also offers alliances with organizations that do not meet the full membership criteria.

Financial Intermediation

As a financial intermediary, OFN provides underwriting and portfolio management services, as well as impact reporting for its investors. This allows investors to track the social and economic impact of their investments while maintaining financial stability. With a historical portfolio loss of less than 0.001%, OFN demonstrates a high level of financial responsibility and reliability in managing investments.

Strategic Plan

OFN regularly updates its strategic plan to focus on key priorities, ensuring that its operations remain aligned with the evolving needs of underserved communities. The plan is pivotal in guiding OFN's efforts to support CDFIs and facilitate broader economic opportunities.

External Partnerships

OFN collaborates with government agencies, corporations, and foundations to amplify the reach and effectiveness of CDFIs. By bridging gaps between traditional financial systems and community needs, OFN plays a crucial role in promoting economic justice and equitable development.

[1] https://www.ofn.org/about-ofn/ [2] https://www.ofn.org [3] https://www.ofn.org/current-initiatives/ [4] https://www.ofn.org/why-partner-with-cdfis/invest-through-ofn/ [5] https://www.uschamber.com/co/run/business-financing/opportunity-finance-network