After a decade of hard work, the Prairie Food Co-op (PFC) in Lombard, IL, is in the final phases of construction of its food co-op as it draws closer to opening its doors later this year. CDS is always ready to celebrate cooperative successes, but we are especially excited to cheer on PFC as one of our fiscal sponsorship clients, and the very first for which we administered a federal HUD grant.
Helping co-ops access capital has been a key initiative of Cooperative Development Services and our affiliated charitable nonprofit organization, the Cooperative Development Fund of CDS (“the Fund”), for over 20 years. Several years ago, CDS developed a formal fiscal sponsorship program in which the Fund uses its charitable, mission-aligned purpose to help our co-op clients access tax-deductible contributions from individuals in their communities, and by applying for and administering grants from foundations.
In the last year, we have deepened our experience through our work with PFC, by serving as the fiscal sponsor and administering the expenditure of $750,000 from the Dept. of Housing and Urban Development (HUD) to support the construction of PFC’s new store. “We did a lot of learning with this project, because administering a grant of this size is complex. But the value created in the community is so rewarding”, says Kevin Edberg, CDS’s former executive director, who oversaw the work.
“This HUD grant has played a crucial role in helping us achieve our financial goals by enhancing credibility with external lenders and reducing the need for additional long-term debt,” says Theresa Giambrone, board treasurer of Prairie Food Co-op. “As the first co-op to engage in this process with CDS, we faced some initial hiccups, but Kevin’s attention to detail and consistent communication kept us informed and on track throughout. We hope this partnership will pave the way for more financial opportunities for future co-ops.”
