The Community Investment Tax Credit:

A Report on Impact in 2023

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 2023, CDCs raised over $23 million to support their activities through this unique program. CITC provides an avenue of fundraising for CDCs that allows for the growth and adaptation of programs across the state in response to the most pressing needs of their communities.

Every year CDCs commit themselves to gathering data and reporting 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, gathered via the GOALs survey administered by MACDC, provides a unique window on the multiple ways in which CDCs respond to the needs of their constituents.

In 2023, CDCs across Massachusetts:

• Engaged 1,610 community leaders
• Created or preserved 1,233 homes
• Created or preserved 4,566 job opportunities
• Provided technical or financial assistance to 2,064 entrepreneurs
• Assisted 75,937 families with housing, jobs, or other services
• Invested almost $1.29 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. In 2023, 83% of CDCs reported that they were able to expand their staffing. Because of the lack of restrictions on funding provided through CITC, CDCs are able to add staff in areas of highest need.

Expanding or Adding Programs:

CITC also allowed many CDCs to expand existing programs and, in some cases, add new programs. According to data collected for 2023, 78% of CDCs were able to either add 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 80% of CDCs 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 2023 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. Post-pandemic, the need for virtual counseling/coaching remains high, meaning that CDCs still need to be thinking about online security and related technical issues. In 2023, 41% 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, 38 CDCs expanded or added new community engagement activities in 2023, 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.