By Us
For Us
Growing a Community Investment Ecosystem in Central Appalachia
An Introduction
This is the story of how the people of Central Appalachia capitalized on the region’s assets and worked together to create an ecosystem to invest in transformative change. A community investment ecosystem refers to the key actors, resources, and supporting conditions that enable the flow of investment capital to community priorities. It includes the people and organizations that help to shape projects and get them ready for investment, the financial intermediaries (e.g., banks, community development financial institutions, foundations) that provide various forms of capital, as well as contextual factors (cultural, regulatory, economic, political) that constrain or encourage community-focused investment.
Like other persistent poverty regions, Appalachia has significant assets: resilient people, unparalleled natural beauty, a heritage of craft and industry, the legacy of organized labor, vibrant culture, and a love of place. Perhaps its most important asset is a homegrown and broadly shared vision that is fueling a community-led economic transition.
This piece asks: How did a persistently poor, economically marginalized, chronically underinvested region build a community investment ecosystem with the capacity to absorb and deploy catalytic capital for transformative change? And what have we learned along the way?
At the core of this story lies a commitment to self-determination and a central focus on equity, in both process and outcomes. A shared analysis united partners around key sectors and a framework for economic transition. This common vision and trusting relationships supported the growth of collective impact networks within the community economic development and philanthropic sectors as well as cross-sector partnerships that collaboratively developed priority industry sectors and aligned strategies. Finally, a long-term commitment to building technical and community capacity and infrastructure ensured that the ecosystem is not only effective but also accountable and responsive to the people and places of Central Appalachia.
Central Appalachia’s story is specific to the region and the partners that created it, yet it offers lessons for other under-resourced places faced with persistent poverty and structural inequities.
The Journey Unfolds in Three Phases
COALESCING (Pre-2010)
Decades of work by visionary, committed, place-based organizations created the foundation for today’s community investment ecosystem. Over those decades, leaders and organizations operating at the intersection of community economic development, community development finance, and community organizing built trusting relationships.
INVESTING in OURSELVES (2010-2015)
The deep and lingering effects of the Great Recession (described by one regional leader as a disaster sitting on top of a catastrophe) added urgency to the region’s economic challenges and opened opportunities for bottom-up solutions to go mainstream. A new narrative around Appalachian Transition spread throughout the region, buoyed by collective impact networks organized around a shared analysis and complementary strategies.
COLLABORATING for SCALE & IMPACT (2016-present)
Increased grant capital from philanthropy and the federal POWER initiative supported community capacity building and collaboration to accelerate the development of priority sectors. However, regional partners recognized that the influx of grant dollars was not a sufficient or sustainable solution and collaborated to develop an ecosystem to absorb large-scale investment capital.
Story Themes
Every community investment ecosystem story is unique, but the principles and strategies that contributed to success in Appalachia can serve other communities as they develop their own ecosystems:
SELF-DETERMINATION
The ecosystem was built from the ground up by and for people and organizations in Central Appalachia, reflecting the collectively held vision, values, and priorities of the region.
EQUITY AT THE CENTER
Centering equity, inclusivity, and justice in our vision, as well as the ecosystem’s process, structure, and goals, maintained accountability to grassroots constituents and influenced institutional partners to embrace a commitment to equity.
SHARED ANALYSIS
We developed a common analysis and framework around shared priorities, allowing each partner organization to see itself as part of the whole and to understand its role in advancing the collective vision.
COLLECTIVE IMPACT NETWORKS
Informal relationships developed around shared analyses and goals were strategically transformed into formal networks with clear roles and the ability to take collective action to advance regional investment pipelines in specific sectors.
CROSS-SECTOR PARTNERSHIPS
Cross-sector networks were critical to building a coordinated enabling ecosystem that could align resources, capital, and capacity.
TECHNICAL CAPACITY
Providing training and tools for community development finance, impact investing, and sector development at the local level helped build the infrastructure for community investment.
COMMUNITY CAPACITY
Recognizing that effective infrastructure must be rooted in community involvement, we engaged local leaders to help design and iterate solutions based on their lived experience and knowledge.