What Qualifies for CRA Credit?

Community Reinvestment Act (CRA) credit is awarded to financial institutions for qualified activities that contribute to the affordable housing or community supportive services for low- and moderate-income individuals, economic development for small business and small farms, and revitalization of low- and moderate-income (LMI) communities or other targeted CRA geographies. One of the ways banks can fulfill these requirements is through employee volunteer programs. Employees can get involved in various initiatives that qualify for CRA credit, making a meaningful impact in their communities. Here are some examples of such volunteer opportunities: 

Workforce Development

Workforce development programs focus on permanent job creation or retention or job skills development for LMI individuals. These programs might offer job training, educational scholarships, and career counseling services. Volunteers can play a crucial role by leading free job training courses in high-demand fields, thereby improving employment rates for LMI individuals in the community. By sharing their financial or unique job expertise and time, employees can help bridge the gap between job seekers and employment opportunities, which benefits both the individuals and local businesses looking for skilled workers. 

Financial Education Programs 

Access to financial education enhances the quality of life for LMI individuals and families. Banks can develop financial education for LMI consumers private label financial education programs or sponsor K-12 financial education. Employees can volunteer by providing credit counseling services, teaching budgeting workshops, or mentoring LMI individuals on financial management. These efforts help individuals make informed financial decisions, leading to greater financial stability and independence. 

Affordable Housing

Affordable housing projects involve the construction, preservation, or rehabilitation of housing units to ensure they are accessible to LMI individuals. These projects often receive funding and support from financial institutions seeking CRA credit. By increasing the availability of affordable housing, these projects help to reduce homelessness and housing insecurity. Volunteers can provide financial expertise to assist organizations that are facilitating affordable housing projects or provide services and financial literacy to residents of affordable housing developments. Their hands-on involvement helps increase the availability of affordable housing, reducing homelessness and housing insecurity in the community. 

Small Business Support 

Supporting small businesses helps create jobs, stimulate local economies, and encourage entrepreneurship. Employees can volunteer to offer financial advice to small businesses, particularly those in LMI areas. By sharing their unique job knowledge and financial expertise in areas such as financial planning, lending, marketing, and operations, volunteers can help these businesses grow and thrive. This support benefits small businesses and contributes to the community’s economic vitality. 

See More Qualifying Examples from the FDIC

For additional qualifying examples, consider the following from the Federal Deposit Insurance Corporation (FDIC): 

• Affordable Housing: Loans, investments, and services that support affordable housing initiatives for low- and moderate-income (LMI) individuals.
• Community Services: Provision of community services targeted at LMI individuals.
• Economic Development: Activities that promote economic development by financing small businesses and farms, especially those owned by LMI individuals.
• Revitalization or Stabilization: Efforts to revitalize or stabilize LMI geographies, such as investing in infrastructure improvements or community centers.

Join EVERFI’s Network of 600+ Financial Institutions

By engaging in these volunteer activities, employees can make a significant difference in their communities while helping their financial institutions meet CRA requirements. Their contributions foster a stronger, more resilient community and promote sustainable growth and development. 

EVERFI from Blackbaud partners with financial institutions to enhance their community impact through educational platforms. By joining EVERFI’s network, banks can effectively support their communities and earn CRA credit through a variety of educational programs and resources.  

Learn more about how EVERFI can help boost your community’s financial inclusion by participating in these CRA-qualifying activities or through school sponsorship of financial education programs.