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Change In Unrestricted Net Assets

The difference in unrestricted net assets from one accounting period to the next. Formerly called net income.

Charitable Purpose

All section 501(c)(3) organizations must be organized and operated for one or more charitable purposes. The Internal Revenue Code defines charitable purposes as religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. In the PRI context, typical charitable purposes include providing relief to the poor and distressed, revitalization of distressed communities, conducting educational activities/promoting education, protecting and preserving the natural environment, supporting scientific research, promotion of health, and lessening the burdens of government. 


The culmination of a business transaction. Documents may be signed either before closing (in which case they contain conditions precedent to closing) or at the closing. In a loan, the closing is when the lender typically transfers at least some portion of funds to the borrower. In an equity transaction, it is when the investor pays over funds and becomes a shareholder or member in the entity.


Personal or real property that the borrower pledges to assure repayment of a loan.

Collective Impact

Collective impact is the commitment of a group of actors from different sectors to a common agenda for solving a complex social problem.

Commercial Investment

An investment in a business enterprise that buys and/or sells goods and/or services with the expectation of profit.

Commitment Letter

An agreement by the lender to make loans to the borrower on specified terms, subject to the satisfaction of stated conditions and the completion of satisfactory loan documentation.

Community Development Banking Institutions (CDBIs)

Banks and thrifts that have a mission of economic and community development. They have a substantial presence in low- and moderate- income communities and/or are focused on serving low- and moderate-income people. CDBIs provide both credit and non-credit financial products and services tailored to the needs of the communities they serve. CDBIs are federally insured depositories required to adhere to safe and sound banking practices. Types of CDBIs include banks certified by the Community Development Financial Institutions Fund of the U.S. Department of Treasury as Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs) working for underserved minority populations, and other banks that have a mission of serving underserved markets but that do not have any formal certification as a CDFI. See NCIF's 2010 CDBI Landscape Document for more.

Community Development Credit Unions (CDCUs)

Organizations specialized in serving populations generally considered the hardest to serve, including low-income wage earners, recent immigrants, and people with disabilities. CDCUs are nonprofit and tax-exempt (but not a charity), cooperatively owned and governed, and government-regulated, fully insured financial institutions.

Community Development Financial Institutions (CDFIs)

Financial institutions such as a community development corporation, bank, credit union, or loan or venture capital fund, that has as its primary mission to provide credit and financial services to underserved markets and economically disadvantaged populations.

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