Evaluation of the African Development Center (ADC) Through the CDFI Assessment and Rating System (CARS) Framework

Abstract

This report evaluates the African Development Center (ADC) according to the criteria of the Opportunity Finance Network's CARS (CDFI Assessment and Rating System). CARS analysis is a tool to help CDFI's gain access to capital by displaying creditworthiness and organizational effectiveness in a way that is easily interpreted by financial institutions. CARS analysis has two sections: Financial Performance and Impact Performance. Financial Performance analysis measures the overall creditworthiness and financial strength of ADC using the CAMEL system. The CAMEL System is an assessment that examines Capital structure, Assets, Management, Earnings, and Liquidity. Impact Performance rating assesses how well a CDFI does what it says it is trying to do. Some of the criteria for analysis include: • Alignment of strategy and operations • Effective use of financing resources • Tracking of outputs that indicate effectiveness • Tracking of outcomes or impacts that indicate effectiveness A Policy Plus (“+”) rating may be received along with the impact rating noting CDFI's that play a leadership role in developing public policy.