This year was an important period in Contact Fund's development, and we look forward to increased growth in 2010.  As 2009 draws to a close, here is a re-cap, a forecast, and an invitation for you to join us in delivering intelligent private investment to strengthen New York City's hardest hit neighborhoods. 

First, the context:  According to the Bridgespan Group, 93% of nonprofit leaders said their organizations are feeling the effects of the economic downturn, up from 75% a year ago.  The effects of the economic crisis are extensive, as local governments remain in fiscal crisis, philanthropic foundations and corporations reduce giving, and unemployment remains above 10%.  New York City and State governments are under intense fiscal pressure, having announced large cutbacks.  Although there are some signs of nascent economic recovery, these statistics reflect a new reality which is unlikely to ease quickly.

Given the relative bleak financial news this year, I am particularly pleased to highlight the positive developments in Contact Fund in 2009.

2009 Highlights

• Raised additional capital.  In March we welcomed new investors and received increases from existing investors, increasing our lending capacity in 2009. 
• Closed two new loans.  Lower East Side People's Federal Credit Union will use Contact Fund investment to support a new lending campaign for distressed (but solvent) homeowners city-wide.  Fifth Avenue Committee will draw on our funds to develop and sell affordable housing in Red Hook and Carroll Gardens. 
• Received repayment.  Women's Housing & Economic Development Corp (WHEDCO) repaid us following the completion of a thrilling, new green affordable housing development in the South Bronx. 
• Invested in organizational infrastructure.  We expanded our team, initiated collaborations with established CDFI's such as Calvert Foundation, and redesigned our website. 
• Participated in the national dialogue.  Contact Fund attended several industry conferences; most recently, I sat on a mission-related investing panel as part of a larger event hosted by Rockefeller Philanthropy Advisors on how philanthropists can maximize the impact of public investments (known as "Philanthrostimulus").  Large New York focused foundations are important potential partners. 
•  Celebrated.  On November 10^th we hosted our 2^nd annual reception where we welcomed investors, friends, and non-profit professionals.  Over 70 of you came!  Special thanks go to our presenters, Linda Levy of Lower East Side People's Federal Credit Union and Josh Zinner of NEDAP.

Looking To 2010

We remain committed to offering high-impact, safe, and rewarding opportunities to invest private capital in New York City's under-resourced neighborhoods.  In 2010, we expect the community investment landscape to be more risky than in 2009.  This will be driven by the lagging nature of the cutbacks that are resulting from the fiscal crisis.  Unsurprisingly, the needs will be greater and liquidity will be tighter.  And furthermore, the market will be choppier, as stimulus funds flow into disparate communities in massive, clumsy waves.  For all of these reasons, we believe that Contact Fund will play a critical role in providing nimble, prudent and flexible capital to leading non-profit organizations. 

The role of private investment capital in this context is a vital and unique addition.  In our city, there is already a strong base of non-profits, small and large banks, philanthropic foundations, and advocates.  Private investment can complement this mix and thereby deliver expanding opportunities for communities in need.  In 2010, you will see Contact Fund convening investors more frequently and collaborating with larger institutions more aggressively.  

I hope to have the opportunity to work with you in 2010 as we execute our growth plan and accelerate investment in real opportunities for change.  As always, you can direct all inquiries to info@contactfund.com or (212) 209-3877.

I wish you a happy, healthy, and prosperous 2010.