Aspen/EOP's work on scale and sustainability began with a strong focus on the community development finance industry and recognition that lessons learn from that research would be applicable to other nonprofits attempting to reach scale.

EOP's current scale and sustainability research is exploring: 

• New models for moving to scale.  
• A better understanding of the critical stages through which individual organizations and a field must move to reach scale, and the obstacles/challenges at each stage.
• A better understanding of interventions, intermediaries, systems and infrastructures that can facilitate and/or accelerate the process of moving to scale.
• A better understanding of the funding needed at each stage and who the broader universe of partners/participants/stakeholders might be.
• Descriptions of future research activities to fill gaps in knowledge and/or test critical hypotheses. 

In early 2009, Aspen/EOP began partnering with a group of organizations to develop AssetPlatform.org, a largely Internet-based set of tools, products and information that will be shared with other organizations to help ensure that their work achieves greater efficiency, cost effectiveness and impact. Living Cities, a collaborative involving some of the nation's largest foundations and financial institutions, has made a $500,000 grant to Aspen/EOP for the project. The initiative is premised on the idea that small, community-based organizations working with low-income people to improve their financial situation need practical tools, but lack the resources to search out, develop and/or purchase them. Aspen/EOP also believes that shared platforms can offer a new, sustainable and scalable model for capacity building in the nonprofit sector.

Aspen/EOP's earlier work in this area includes:

A paper on trends in CDFI sustainability: In October 2007, EOP was awarded a $100,000 grant from the CDFI Fund's Research Initiative to examine trends in CDFI sustainability. Past research into the issue of how community development financial institutions can scale up to reach underserved markets has found that it is closely related to another critical issue: sustainability. This research project attempted to look at sustainability within the context of increasing industry scale and the use of subsidy. Through quantitative analysis, a survey of industry practitioners, and a series of case studies, the state of sustainability in the field was examined, and findings were used to develop a framework for understanding sustainability.

Working together on the project were staff from EOP and the Federal Reserve Bank of Chicago, as well as Aspen/EOP Senior Fellows Greg Ratliff, William Myers and Fred Mendez, and independent consultant Alan Okagaki. Read paper.

A partnership with the Federal Reserve on conference series. EOP began a partnership in 2005 with the Federal Reserve System to co-host a series of conferences to explore issues surrounding scale and sustainability in the community development finance field. (See below for details.) In addition, the Federal Reserve Bank of Chicago has devoted two issues of its publication Profitwise News and Views to EOP's work in this area.

Current and Past Funders:  F.B. Heron Foundation, Fannie Mae Foundation, GE Money-Americas, Deutsche Bank, John D. and Catherine T. MacArthur Foundation, the CDFI Fund, Surdna Foundation, Living Cities and the Annie E. Casey Foundation.

Research produced to date:

“Approaches to CDFI Sustainability” 
July 2008
This paper, written under a grant from the CDFI Fund’s Research Initiative, examined sustainability of the CDFI field within the context of increasing industry scale and the use of subsidy. Authors used quantitative analysis, a survey of industry practitioners, and a series of case studies to explore the state of sustainability in the field. Collaborating on the project were staff from EOP and the Federal Reserve Bank of Chicago, as well as Aspen/EOP Senior Fellows Greg Ratliff, William Myers and Fred Mendez, and independent consultant Alan Okagaki.

“The Evolving Roles of Mission-Focused Financial Intermediaries and Mainstream Financial Institutions in Community Development Finance” Profitwise News and Views (Special Edition)
August 2007
This article provides insights into ways Community Development Financial Institutions (CDFIs) are collaborating and integrating with mainstream financial institutions today. The piece examines the characteristics of CDFIs that financial institutions value in forming relationships and describes some of the challenges faced by CDFIs concerning profitability and sustainability.

“Achieving Sustainability, Scale and Impact in Community Development Finance” Conference series co-hosted with the Federal Reserve System
Conference proceedings available through: www.aspenscale.org.

In 2005 EOP began partnering with the Federal Reserve System to co-host a series of conferences in various cities across the country that delve deeper into the question of how to reach scale and sustainability. The conference series is based on the EOP’s paper, “New Pathways to Scale for Community Development Finance,” which summarized 10 case studies drawn primarily from the profit sector that show successful attempts to broaden the impact and market research of an assortment of products, services and organizations.

To date, six conferences have taken place. A detailed synthesis of each conference, along with background documents, complete text and images, can be viewed on-line at www.aspenscale.org. Past meetings topics:

• October 2006, Dallas, Texas – Achieving Sustainability, Scale and Impact in Community Development Finance: Strategic Collaborations for Success.
• May 2006, New York, N.Y. – Achieving Sustainability, Scale, and Impact in Community Development Finance: Innovative Collaborative Models for Increasing Operational Effectiveness and Raising New Capital. 
• March 2006, Chicago, Ill. – Achieving Sustainability, Scale and Impact in Community Development Finance: EITC and Tax Preparation Organizational Design
• January 2006, San Francisco, Calif. – Achieving Sustainability, Scale and Impact in Community Development Finance: Business Model Charettes (Four industry sectors were featured: child care, charter schools, CDFIs and IDAs.)
• November 2005, Boston, Mass. – Achieving Sustainability, Scale and Impact in Community Development Finance: Social Responsible Investing & Community Investing
• April 2005, Chicago, Ill. – An Informed Discussion: Achieving Sustainability, Scale and Impact in Community Development Finance

“An Informed Discussion: Achieving Sustainability, Scale, and Impact in Community Development Finance, A Conference Summary” Profitwise News and Views
December 2005
This issue of the Federal Reserve Bank of Chicago is devoted to an April 2005 conference co-hosted by the Bank and EOP that highlighted business models and industry structures that have led to successful products, organizations and industries both within and outside the community development finance field, and issues faced by Community Development Financial Institutions (CDFIs) and the community development industry in trying to achieve greater impact. 

“Achieving Sustainability, Scale and Impact in Community Development Finance”
April 2005
This 26-frame PowerPoint presentation examines the issue of achieving scale within the context of the financial services field, yet it has application for other industries and organizations. Content covers: what the term “scale” means, why pursuing scale is important, case comparisons drawn from a range of organizations that have undertaken important financial and other innovations, lessons learned from those cases and a set of observations relevant to Community Development Financial Institutions (CDFIs).

“An Informed Discussion: Achieving Sustainability, Scale and Impact in Community Development Finance” Conference Proceedings
April 2005
EOP co-sponsored a conference in Chicago with the Federal Reserve System that focused on the future of community development and community development finance. These conference proceedings include documentation of presentations, a synthesis of team reports and group discussions, photographs and PowerPoint images. The conference was the first in a series of seven to be held at various reserve banks and the Federal Reserve Board of Governors over the next two years. The conference series is based on the Access to Capital and Credit’s recent paper, “New pathways to Scale for Community Development Finance,” which was published in the December 2004 issue of the Chicago Fed publication, Profitwise News and Views. That paper summarizes 10 case studies drawn primarily from the profit sector that show successful attempts to broaden the impact and market reach of an assortment of products, services and organizations.

New Pathways to Scale for Community Development Finance
Paper published in: Profitwise News and Views
December 2004
This paper, published in the Federal Reserve Bank of Chicago publication Profitwise, was based on in-depth research on 10 organizations or initiatives that are generally viewed as achieving scale.  The research resulted in a set of 10 case studies (see 10 Scale Case Studies below) which were examined to identify similarities in how these organizations or initiatives grew.  EOP used these case studies to help conceptualize and model a framework for the community development finance industry to strategically think about scale at three levels: the product, organization and industry levels. Also explored was the relationship – and frequent confusion – among the concepts of size, scale, sustainability and impact. The difficulty of accessing appropriate funding was highlighted. Discussed are the advantages and disadvantages of pursuing scale and the tensions that can exist between the pursuit of scale and the pursuit of sustainability and impact. Finally, tactical and strategic recommendations for the field are outlined.

10 Scale Case Studies and additional diagrams
To better understand the dynamics inherent in reaching scale, a series of 10 case studies were developed. The organizations were chosen among many, mostly private sector, businesses that can be viewed as having successfully grown to scale. In developing the case studies EOP sought to understand how different organizations achieved scale, highlight critical lessons along the growth path and identify particular issues/lessons for the development finance industry. The following cases and models were selected: 7-Eleven, Inc. V-Com, ACCION International/ACCION USA, ACE Cash Express, Allied Capital and BLX, Banknorth Group, Inc., Center for Community Self-Help, Dell, The Reinvestment Fund, Unified Western Grocers, and VISA Credit Card.

Scan of Community Development Reforms
May 2004
This report reviews the full range of documents that consider different strategies to bring the community development finance industry to scale in an efficient way. Many of the documents reviewed call for very different types of interventions to address various shortcomings of the industry. This report categorizes the identified reforms into a usable framework that starts with a static picture of the community development finance industry today and looks forward to a more rational system. 

Preliminary Findings on New Pathways to Scale
June 2003
This 21-frame PowerPoint presentation examines the issue of achieving scale within the context of the financial services field, yet it has application for other industries and organizations. Content covers: what the term “scale” means, why pursuing scale is important, case comparisons drawn from a range of organizations that have undertaken important financial and other innovations, lessons learned from those cases and a set of observations relevant to Community Development Financial Institutions (CDFIs).