Program Related Investment (“PRI”)

Program Related Investment (“PRI”)

A PRI is an investment that a tax-exempt charity makes at a rate below the market rate as part of its annual giving requirement. In order to keep their tax-exempt status, charitable foundations must give away at least 5% of their assets each year. Most of the time, this is done through grants to nonprofits. However, PRIs allow foundations to make for-profit investments (loans, guarantees, and equity investments) as long as the main goal of the investment is to help the foundation’s charitable mission and not to make money.

The IRS lets PRIs be treated as grants (and counted toward the annual giving requirement) as long as the goal of the investment is not to make market-rate returns. Based on IRS metrics, this means that an investor who is only interested in making money would probably not invest in the same way as the PRI. Foundations like Rockefeller and Skoll have used PRIs to invest in social enterprises and other high-impact businesses with a positive social impact. PRIs are related to “Mission-Related Investments,” but they are not the same thing (see “MRI”).

Community Development Finance Institutions (“CDFIs”)

CDFIs are private financial institutions with a mission. They provide credit and other financial services to underserved markets and people in orde...

Impact Investing

Impact Investments are investments made in social enterprises or investment funds that target social enterprises with the intention of generating p...

Financial Inclusion

Financial inclusion means that people and businesses have access to a full range of financial services that meet their needs in a responsible and l...

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This is my 15th year of growing my MOustache (aka “MO) with MOvember. I grow my MO to honor my father-in-law, who passed away from prostate cancer + to raise awareness and funds + to literally and figuratively change the face of men’s health. Movember is a fun approach to serious issues (testicular cancer for younger men + prostate cancer for older men + mental health for all of us), so I hope when you see our MOs that you will check yourself + remember to schedule your annual physicals + reach out if you need a friend.   #movember #menshealth #SouthBayMoBros