Program Related Investments and You: Perfect Together?
As a legal concept, PRIs have been part of the laaw of charitable giving in the US since the Tax Reform Act of 1969, which restructured the rules governing the operations of charities and created a distinction between public charities and private foundations. Technically, PRIs are investments by private foundations in ventures that help to achieve the charitable goals of the foundation, but that also have elements of for-profit investments. This article presents ten top reasons that foundations – large and small, private and public – should consider making PRIs, including:
PRIs do not have to be complex
PRIs are attractive investments in turbulent economic times
PRIs can help your foundation to achieve sustainable giving
PRIs expand your options, and can be a bridge to market-based solutions
PRIs can help you to collaborate with other funders, and your grantees