Program Related investments

Program-Related Investments and Mission-Related Investments

A Program-Related Investment (PRI) is an investment, rather than a grant, for a charitable purpose.  It often takes the form of a loan, which is paid off within a particular timeframe.  The Hyams Foundation is actively considering opportunities to make PRIs that align with one of more of its grantmaking strategies under its three major program areas as described in the grantmaking guidelines.  PRIs are common in the housing arena, but the Foundation plans to explore ways to use them in all three of its funding areas.

The Foundation is actively considering opportunities to make Program-Related Investments (PRIs) that align with one or more of its grantmaking strategies as described in the grantmaking guidelines and is interested in ideas for PRIs. This is another way for the foundations to support the nonprofit community.    

The Foundation is using the following initial screening criteria when considering potential PRIs: 

1)     the intended program outcomes related to one of the Foundation’s grantmaking strategies are clear;

2)     the project is appropriate for PRI (debt, loan guarantee, equity, etc.) financing and meets IRS criteria for a PRI;

3)     there is an identified repayment source and/or exit strategy; and

4)     the applicant can show that other resources do not exist in sufficient amounts and under acceptable terms to meet the need. 

Organizations do not need to be a current or previous Hyams grantee to be eligible for a PRI.

The Foundation had made and will also consider additional market rate Mission-Related Investments (MRIs) for purposes that align with its grantmaking strategies or one of its three major goals as long as the intended programmatic outcomes of the MRI are clear. 

The Foundation is conducting outreach to gather ideas for possible PRIs and MRIs. Organizations that have a possible interest in a PRI or MRI investment are encouraged to submit a one-page summary of the potential PRI that briefly address the criteria outlined above and contact Angela Brown, Director of Programs, at 617-426-5600, ext. 310 or abrown@hyamsfoundation.org

Other References

A recent report "Compounding Impact: Mission Investing by US Foundations" describes how an increasing number of foundations are making loans or investments to achieve their charitable goals. It is available for download below:

 "Compounding Impact: Mission Investing by US Foundations"

Please follow this link to an eight-page report on foundation Program-Related Investments by the firm Brody Weiser Burns:

http://www.brodyweiser.com/pdf/currentpracticesinpri.pdf

For more information on Mission Related Investing, please follow the link below to Social Impact Advisors web site:

http://www.fsg-impact.org/app/content/ideas/item/485