Rockefeller Foundation Aims to Make Tax Perk Work for Poor

Wednesday, May 22, 2019

By Noah Buhayar

Wall Street’s obsession with a new tax break that rewards investment in low-income areas has raised doubts that the poor will benefit. Can a modest philanthropic effort change that?

The Rockefeller Foundation is set to announce that it will hand out $5.5 million to help six U.S. cities promote “responsible” investment in areas designated as opportunity zones.

Prudential Financial Inc. is contributing to the first award, which will provide $920,000 to Newark, New Jersey. The money will allow a local nonprofit, the Newark Alliance, to hire a chief opportunity zone officer who will be embedded with the city, and two “community engagement specialists.” The grant also comes with two years of technical assistance to help structure deals.

Photo courtesy of Mike Boening Photography.

Source: Bloomberg (link opens in a new window)

impact investing, philanthropy, poverty alleviation, startups, urban development