Program-Related Investing

Program-related investments are loans and equity investments that foundations provide at favorable rates to support activities that have a direct charitable purpose. Frequently referred to as PRIs, they expand the resources from foundations - and, in the right circumstances, can be even more effective than grants. Any foundation can make PRIs, yet most shy away from them. In this guide, experienced PRI makers walk through the process, offering practical advice at each step - from explaining the concept to your board to structuring and closing your first deal.

Underwriting for this guide was provided by the Ford Foundation and The John D. and Catherine T. MacArthur Foundation.
 

HIGHLIGHTS

• Skills for getting started
• Making the first deal
• Lessons learned by PRI makers
   

SAMPLE QUOTES

"PRIs are really just another tool for grant makers. You don't make a PRI just because it's a sexy financial investment; you make it because it furthers your mission."

- A grantmaker on how PRIs fit within a grantmaking context
 

"For PRI makers, getting the money out is important, but getting it back is important, too."

- An investor on emphasizing repayment of PRIs
 

"It's important to realize that you don't have to do this alone. Over the years, there's an 'involving' practice in program-related investments, which means that it's possible to jointly underwrite deals with other foundations."

- A founding member of the PRI Makers Network on getting (and giving) help with PRI deals
 

MORE ON THIS SUBJECT

Philanthropy's New Passing Gear: Mission-Related Investing
Rockefeller Philanthropy Advisors, March 2008. A policy and implementation guide for foundation trustees. Offers a practical look at how foundations can undertake investment activities that also generate social impact in addition to financial return. Reflective and accesible, without losing any of the nuance involved. Includes mini-cases and comprehensive set of tools.
[PDF - 132 pages]