Economic development is programs, policies or activities that work to improve the financial well-being and quality of life. This could include improving infrastructure, bettering public safety, developing education systems, improving the community's aesthics and facilities, and providing incentives to foster and attract new businesses and jobs. This can also apply to developing regions and countries.
By donating to charities, nonprofits or social enterprises in the economic development space, you are directly funding programs and activities that will assist in developing your or another communities economic prospects and strength. This then allows those communities to continue to grow and prosper.