The Rise and Fall of Eastside Community Investments, Inc.: The Life of an Extraordinary Community Development Corporation

ABSTRACT:

This article presents a case study of the rise and fall of Eastside Community Investments (ECI) of Indianapolis, Indiana—one of the largest, best known, and highly regarded community development corporations in the United States. It addresses three basic research questions: 1) How did ECI become so successful so fast? 2) What caused ECI’s financial collapse? and 3) What are the implications of the ECI failure for municipal, state and federal governments who have grown increasingly dependent on community-based organizations to deliver basic human services, while fostering economic and community development? Answers to these questions have important implications for non-profit CDCs, governments and philanthropic organizations that fund CDCs, and researchers in public and nonprofit finance and management.