Commitment to Community

Client: Deutsche Bank Americas Foundation
Faculty: Kate Collignon, Kei Hayashi
Team: Sapna Bhatt, Connie Lee, Matt Murphy, Rachel Wieder, Chunzi Junko Wu
Year: 2011
Executives at Deutsche Bank have devel­oped an interest in the social impact of loan programs and awards that they pro­vide for community development initia­tives. Community Reinvestment Act (CRA) regulations measure financial investments in neighborhoods, but do not measure the short­and long­term impacts of these investments. The Deutsche Bank Americas Foundation (DBAF) and the Community Development Finance Group have granted awards to NYC community based initia­tives over the past decade. The programs have provided pre­development funding for housing rehabilitation and develop­ment in New York City. In order to fully understand the social impacts associated with DBAF's investments, the Capstone team analyzed the financial impact of the awards on the developments, the social impact of the developments on the ten­ants, and the social impact of the project developments on the local communities. Utilizing community input, the team also provided suggestions on ways to enhance the award programs as well as how to include these findings in the due diligence process.