History

Opportunity Finance Network (OFN) launched CARS™ in 2004 as a central component of its strategy to lead the opportunity finance industry to scale. OFN believes that greater transparency, standardization of information and industry-wide performance standards are central to increasing the flow of capital to CDFIs. The CARS™ methodology and business model were developed during a three-year period under the guidance of an independent advisory board that included investors, CDFIs, bank regulators, and representatives of major ratings companies. Funding for the initial development of CARS™ was provided by Fannie Mae Foundation, Ford Foundation, and J.P. Morgan Chase Foundation with additional support from the John D. and Catherine T. MacArthur Foundation, F.B. Heron Foundation, the Wachovia Foundation, the Washington Mutual Foundation, Citi Foundation, and Trillium Asset Management.

The first subscribers to CARS™ were and continue to be leaders in community investing—the Heron Foundation, Key Bank, HSBC Bank, Merrill Lynch CDC, Trillium Asset Management, and Domini Social Investments LLC.

Since its launch in 2004, CARS™ has rated a diverse group of CDFIs ranging from large national institutions with complex business models and strategies to small, locally focused organizations. CARS™ ratings and reports have been used by both sophisticated community investors and those new to the field to augment their investment decision-making and monitoring. CARS™ maintains a robust pipeline of CDFIs that have expressed interest in becoming rated, with many more requested by CARS™ subscribers.