The DCIF offers a compliant strategy to avoid classification as an "investment company" under the Investment Company Act of 1940, which allows flexibility in raising community capital, primarily focusing on real estate investments (at least 60% of its assets are non-securities).
This fund can raise funds through various legal avenues like Regulation Crowdfunding or direct public offerings, offering diverse securities options tailored to different investor needs. It supports investments in a wide range of real estate types and up to 40% in local businesses, providing liquidity and potential tax benefits as a Qualified Opportunity Fund. NC3, a nonprofit, advocates for democratizing the economy by empowering communities through community capital tools.