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Mission Related Investment (“MRI”)

Mission Related Investment (“MRI”)

An MRI is an investment made from a tax-exempt foundation’s endowment that is meant to make money and further the foundation’s charitable goals by doing something good for society or the environment. In the past, a foundation’s investing side, which was usually focused on making the most money possible with the least amount of risk, sometimes clashed with its charitable giving side (e.g. a foundation promoting public health holding tobacco or coal mining stocks).

With MRIs, a foundation can put money into impact investments and still be considered by the IRS to be using “ordinary business care and prudence,” even if the expected rate of return is lower than what it could earn on an investment that is not mission-focused. MRIs are related to “Program Related Investments” (see “PRI” below), but they are not the same thing.

About Impact Capital Partners

At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact investing strategies.

OTHER TERMS

Environmental, Social and Governance (“ESG”)

ESG criteria are non-financial factors that investors use to analyze and screen companies. Environmental, social, and governance (ESG) data was int...

Environmental, Social, and Governance (ESG) Investing

ESG investing is a form of sustainable investing that considers environmental, social and governance factors to judge an investment’s financial ret...

Asset

An asset is a financial investment that is bought with the hope that it will grow in value and be sold at a higher price in the future.

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