This research investigates the impact of Community Development Financial Institution (CDFI) parameters through the perception of beneficiaries of two different types of financial institutions: a commercial bank and a local credit union. Currently the parameter of CDFI are implemented mostly in developed countries, where it is initiated, compared to the emerging and developing countries. Consequently, the CDFI standard reporting systems have not been applied in countries like Indonesia. Qualitative and quantitative methods was conducted in sequential exploratory design approach by conducting analysis of interview verbatim of previous research on a commercial bank (PT Bank BTPN Syariah) and a credit union (Koperasi Maju Wijaya), and Structural Equation Modeling from the data collected from customers of the two organizations. Subsequently, the within case analysis was applied to answer the questions on how would the capacity building effort from the commercial bank and the credit union (CDFIs) impact their communities’ development through social capital; and how the relationships among those variables exist. The cross-case analysis was done to explore how the two different business models and community development approaches of CDFIs would affect the impact on its beneficiaries. This research finds that social capital is the bridge between capacity building and community development. Therefore, it is expected that this research will contribute to the knowledge by giving a novel point of view towards the impact of CDFI in Indonesia. It will also have practical implications by providing the social impact measurement that is applicable for different business models and community development approaches in the country. Keywords: Community Development Financial Institution (CDFI), Social Impact, Social Entrepreneurship, Sustainability