Program Related Investments (PRIs) are a vehicle for philanthropic foundations to achieve their charitable objectives. PRIs are typically investments from a foundation’s grant-making budget and the capital is expected to be returned after an agreed-upon time. PRIs are considered charitable expenditures like grants and count toward the IRS requirement that philanthropic institutions use at least 5% of their endowments annually for charitable purposes.
Reinvestment Fund PRI
A PRI can be an essential source of low cost capital for Reinvestment Fund’s loan fund and has been critical in providing the flexibility to make loans that do not fit the parameters of capital deployment from a for profit bank. Reinvestment Fund has used PRIs in combination with other investments in our loan fund to offer very flexible, low cost, debt capital for our projects.