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.
We will cover:
- What a PRI is
- 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