Program Related Investments
What is a Program-Related Investment?
|Jackson Commons, a project of the Home Funders Collaborative
A Program-Related Investment (PRI) is an investment, rather than a grant, to achieve a charitable purpose. It often takes the form of a loan, with a specified maturity or repayment date, but also can be in the form of a loan guarantee or equity investment. PRIs are another way for foundations to support the nonprofit community, and although they are common in the housing arena, they also have been used to address other social needs.
Program Related Investing at Hyams
The Foundation will continue to seek opportunities to use PRIs that will further its impact. Previous Foundation PRIs have been used to help revitalize low-income neighborhoods, spur the creation of affordable housing, and address specific housing needs such as those created by the mortgage foreclosure crisis and transit oriented development. The Foundation currently has $3.4 million in outstanding PRIs and under a policy of the board is able to utilize up to 5% of its endowment for this purpose at any one time. (Also refer to the Mission Related Investing section of the website.)