Program-Related Investments
Program-related investments offer foundations an alternative to the traditional grant. They provide a tool that can help bring long-term financial stability to organizations that are addressing critical social needs.
ProgramRelatedInvestment
In 1968, the Ford Foundation pioneered use of a new tool known in the philanthropic sector as program-related investments (PRIs). Ford-funded PRIs use low-cost loans, loan guarantees and equity investments in a strategic way to strengthen the work of our grantees and to provide risk-captial for cutting-edge initiatives.
Financed from the foundation's endowment, PRIs support the work of organizations in the United States and around the world by helping them to establish a loan repayment history, generate earned income, gain access to new funding from mainstream banks and other funders, and to develop new financial management strategies.
To date, the foundation has committed more than $400 million for program-related investments, and sets aside annually an average $25 million for new investments.
If you are interested in learning more about program-related investments, read GrantCraft's Assessing and Managing PRI Risk (PDF) and the foundation's guide, Investing for Social Gain (PDF).
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