How the aggregation of consortium capital can fill a void left by traditional national intermediaries: case study of the National Association for Latino Community Asset Builders
Traditional national intermediaries have historically impacted the community development field by investing millions of dollars and providing quality affordable housing units to low- and moderate- income communities. They have also dominated the accessibility to corporate, foundation, and federal financial capital and functioned as substitute service providers on behalf of governmental entities to employ such impact. Accessing capital is the most crucial element for nonprofits to deliver services to communities of need and has momentously driven the traditional national intermediaries' ability to be successful. However, the traditional national intermediaries have left a void in the community development field by not equitably supporting Latino-led and Latino-serving organizations. The National Association for Latino Community Asset Builders (NALCAB) was created in 2002, to fill the void left by the traditional national intermediaries and to access financial capital for underserved Latino organizations and communities, initially in the South but also across the United States. Imploring a different intermediary model, NALCAB distinguishes itself from the traditional national intermediaries by following a different operational and structural model. Moreover, the aggregation of consortium capital has allowed NALCAB access to the financial capital for local organizations that has been conventionally reserved for the traditional national intermediaries and to more equitably benefit Latino organizations, populations, and families. This paper will provide a historical analysis of the roles and influences of the traditional national intermediaries and a firsthand interpretation of how the NALCAB structural and operational models were created and evolved in direct response to the inadequacies of the entities controlling the flow of capital and the role of consortium capital for implementing successful community development activities. Moreover, this paper will serve as the baseline for future research about NALCAB. Detailed examples of the consortium model are provided to illustrate the complexity and intricacies within the design and implementation of the consortium model, and to illustrate why the consortium model is utilized out of necessity.