The State of New Jersey has selected Nonprofit Finance Fund (NFF) to administer its newly launched $20 million Social Impact Investment Fund (SIIF), a move that reflects a broader shift in how states are structuring and deploying public capital to address long-term community needs.
Founded in 1980, Nonprofit Finance Fund is a community development financial institution that has provided more than $1.7 billion in financing and facilitated over $6.3 billion in total project capital for organizations nationwide.
The fund, announced by the New Jersey Department of the Treasury, is designed to support projects across affordable housing, early childhood education, and critical infrastructure. Unlike traditional grant programs, SIIF is structured as an investment vehicle, signaling a policy approach that prioritizes sustainability, accountability, and long-horizon impact.
In announcing the initiative, Phil Murphy, Governor of New Jersey, framed the fund as part of a broader effort to expand access to capital for communities that have historically faced structural barriers.
The structure of SIIF reflects a move toward investment-oriented public finance. The fund is designed to support projects with clear financial structures and measurable outcomes, enabling public dollars to be deployed with discipline and redeployed over time.
Administering a fund of this nature requires specialized financial expertise. The state’s selection of Nonprofit Finance Fund underscores the importance of experienced intermediaries in managing complex public investment vehicles.
NFF brings experience structuring, underwriting, and managing impact investments across sectors including housing, education, health, and community infrastructure. Its role as administrator includes evaluating project readiness, aligning capital structures with long-term outcomes, and ensuring that public funds are deployed responsibly and transparently.
As Aisha Benson, President and CEO of Nonprofit Finance Fund, noted in the state’s announcement, the fund aligns closely with NFF’s mission and operating approach.
Benson explained that the organization’s work centers on ensuring communities have access to the capital and resources needed to build wealth and well-being, adding that SIIF provides a platform for delivering flexible capital to organizations advancing affordable housing, early childhood education, and infrastructure across New Jersey.
She emphasized the partnership with the state as an opportunity to accelerate investments that strengthen communities and expand opportunity.
The partnership highlights a growing trend in state-level finance: the use of external, mission-aligned financial institutions to manage public capital with greater rigor and effectiveness. As governments seek to address complex, systemic challenges, fund structures like SIIF reflect an understanding that successful capital deployment requires both policy alignment and financial discipline.
For nonprofits, developers, and service providers operating in New Jersey, SIIF represents both an opportunity and a raised standard.
Access to investment-oriented public capital will require clear project economics, operational readiness, and the ability to demonstrate long-term community benefit alongside financial sustainability.
In this way, the fund also functions as a signal to the market, encouraging organizations to build the financial infrastructure necessary to engage with institutional capital.
As more states explore similar models, New Jersey’s Social Impact Investment Fund may serve as a reference point for how public dollars can be structured to support durable community outcomes while maintaining accountability and fiscal stewardship.
