Program Related Investments: How Private Foundations Can Earn a Return While Making Qualifying Distributions

Speaker: Casey S. Hale

Like a grant, a PRI is a vehicle for making charitable capital available to organizations committed to addressing social or environmental concerns. Unlike a grant, however, a PRI is repaid with at least a modest rate of return. After a PRI is repaid, the private foundation may reuse the PRI to fund other charitable purposes. Therefore, a PRI can be a more effective use of foundation assets than a grant. You will learn:

• What is a PRI
• When a private foundation should consider making a PRI
• How making a PRI affects minimum distribution requirements
• How making PRIs can grow a private foundation’s portfolio
• Typical barriers to PRI use and ways to overcome them