Give to one of more than 30 participating Massachusetts community development corporations, and a qualifying gift can earn a state tax credit worth half the donation. That is the pitch behind the Community Investment Tax Credit, a program that has helped community development organizations across Massachusetts raise more than $100 million since it launched in 2014.
The credit offers a 50% state tax credit for qualifying gifts, according to United Way of Massachusetts Bay, which lists individuals, businesses and foundations as eligible donors. United Way's figures show the credit has helped community development corporations catalyze nearly $3.2 billion in additional public and private funding on top of the direct donations it has generated. The nonprofit itself has raised more than $21.4 million to date as the program's lead fundraiser, while separately reporting that contributions made through its CITC channel have generated nearly $28.6 million to date — a distinction the group's materials do not explain further.
The Massachusetts Association of Community Development Corporations reports that CDCs across the state built or preserved 1,233 homes in 2023, part of the broader momentum the trade group credits to the tax credit since its 2014 debut.
Where the Money Is Building Homes
One of the clearest local examples sits north of Boston. The Neighborhood Developers, which works in Revere, says on its own site that it increased the number of affordable homes it provides by 66% during its 2020-2024 strategic planning period. By 2025, the organization's portfolio was growing to 769 homes serving more than 1,000 people, and it was managing projects expected to add another 300 homes in the years following.
That pipeline includes concrete projects now in the works: 107 affordable homes coming to Lynn, 56 affordable homes in the heart of Revere Beach, and a 125-unit development for families in Everett's Commercial Triangle Economic Development District.
Further west, the Lowell-based Coalition for a Better Acre has built and renovated more than 556 residential units, according to a account published by NeighborWorks Capital. The same source notes CBA's broader community work, which has included a food pantry.
How the Credit Works for Donors
The Community Investment Tax Credit offers a 50 percent state tax credit for qualifying donations.
That guidance, available through Mass.gov, lays out the program's rules for the more than 30 CDCs currently eligible to receive qualifying gifts. For donors weighing a year-end contribution, the basic math is straightforward: qualifying gifts can generate a state tax credit worth 50 percent of the donation.
A Statewide Network With Local Roots
The Community Investment Tax Credit supports community development organizations across Massachusetts. Those organizations work on affordable housing and other community-development efforts.
For Massachusetts residents, the tax credit represents one lever — modest in dollar terms relative to the overall housing market, but one that supporters say has quietly compounded into real production numbers over more than a decade. The 1,233 homes built or preserved in 2023, as reported by the Massachusetts Association of Community Development Corporations, suggest the program's reach extends well beyond any single city or project.
