Program Related Investments & Loans

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Program Related Investments & Small Business Loans

 

A program-related investment (PRI) is a tool foundations can use to leverage their philanthropic dollars. Unlike grants, however, foundations get a return on their investment, through either repayment or return on equity. Some foundations provide low interest loans to individuals or small businesses that must be repaid. Additionally, some foundations also provide microcredit loans to individuals in developing countries to start a business and achieve self-sufficiency. Please refer to the IRS description on Program Related Investments:

The following are some typical examples of program-related investments:
1. Low-interest or interest-free loans to needy students,
2. High-risk investments in nonprofit low-income housing projects,
3. Low-interest loans to small businesses owned by members of economically disadvantaged groups, where commercial funds at reasonable interest rates are not readily available,
4. Investments in businesses in deteriorated urban areas under a plan to improve the economy of the area by providing employment or training for unemployed residents, and
5. Investments in nonprofit organizations combating community deterioration. (See IRS Program Related Investments page)

   

Annie E. Casey Foundation
Social investing is part of a wide range of strategies that Casey Foundation implements in its effort to improve outcomes for vulnerable children and families. Our social investments program uses the Foundation’s endowment dollars to generate a financial return and support our investment strategies.

Barberton Community Foundation
A PRI is made through a Barberton nonprofit organization to help satisfy the mission of the Foundation. Most of these investments are loans, related to either economic or neighborhood development.

Baton Rouge Foundation
The Credit Bureau of Baton Rouge Foundation’s (Foundation) purpose is to support, fund, present and participate in programs for schools, businesses and civic groups to educate the public about the consumer credit system and the wise use of consumer credit and to address other current and emerging community needs and opportunities. To download an application (Word document format) please click here.

Claude Worthington Benedum Foundation - West Virgina
Economic development - In addition, many of the communities in the region served by the Foundation are rural, and enjoy abundant natural assets that provide economic opportunities that complement centers of technology-based growth. The Foundation supports efforts to advance agriculture, outdoor recreation, artisanship, and cultural tourism. Specific areas of Foundation interest include: 1. Promotion of entrepreneurship, 2. Projects that promote technology-based economic development, 3. Programs to promote the growth and accessibility of new capital for businesses in distressed communities and areas of high unemployment.

Berks County Community Foundation - Pennsylvania
The investment policy of the Berks County Community Foundation is similar to that of most other community foundations, having a diversified and balanced portfolio. The objective of the investment policy is to provide a return, which will preserve and grow the Community Foundation's assets, while providing a consistent stream of revenue for grantmaking.

Bill & Melinda Gates Foundation
Microcredit—the extension of small loans—has helped millions of people in developing countries improve their lives. It has also shown poor people to be reliable customers who want, and will pay for, financial services. The success of microcredit has helped make it possible to extend a range of financial services—including loans, savings accounts, insurance, and remittances—to many more people in the developing world.

Blue Moon Fund
The Blue Moon Fund makes investments that promote the development  of environmentally responsible, socially equitable, and fiscally sound small and medium scale ventures in support of the fund’s philosophy.

California Community Foundation
The California Community Foundation provides Program-Related Investments (PRIs), which are low-interest loans that extend the reach of its grantmaking.

Calvert Foundation
For over 10 years, Calvert Foundation, a nonprofit 501(c)(3) organization, has been working to make community investment a safe and logical option for all investors seeking to make a positive social impact. We focus on using investment capital, rather than conventional philanthropy, to create a sustainable, scalable model that enables nonprofit organizations and social enterprises to address critical social problems.

CAN Social Investment
The Social Investment Forum is the U.S. national nonprofit membership association for professionals, firms and organizations dedicated to advancing the practice and growth of socially responsible investing (SRI). Critical to responsible investment practice is the consideration of environmental, social and corporate governance criteria in addition to standard financial analysis.

Castanea Foundation, Inc.
The Foundation particularly emphasizes conservation projects that promote economically viable and environmentally sound farm enterprises. The Foundation's underlying belief is that the health of the region's agriculture is essential to the future health of rural communities in Vermont and New York.

Cleveland Colectivo
Our mission is to strengthen our community through collective investments that identify and nurture innovative projects. We pool our funds and share our energy to invest it back into projects that we see as worthwhile and exciting in Cleveland.

Civic Innovation Lab - Cleveland, Ohio
The Civic Innovation Lab fuels innovation by providing mentoring and funding of up to $30,000 for ideas that can improve the Greater Cleveland economy.

Community Foundation of North Central Washington - Washington  
If an organization submitting a grant request for a charitable purpose is not a 501(c)(3) entity, the
organization must submit the grant request under umbrella of a 501(c)(3) organization who has
agreed to be the “Fiscal Sponsor” on the grant request.

Dakota Foundation - North Dakota & New Mexico
The Dakota Foundation Program Related Investments (PRIs) are most commonly made as below-market rate loans or, occasionally, equity interest, and require that the agency receiving the PRI generate sufficient cash flow ultimately to repay the loan or provide a return on the equity. Our geographic focus primarily is on activities in North Dakota and New Mexico, although ventures in other areas may be funded infrequently if they meet our criteria and show promise to be transferable to activities in North Dakota and New Mexico. Most of our PRIs do not exceed $100,000.

Deutsche Bank - Microfinance
With more than half of the world’s population living on less than two dollars a day, there is an urgent need to alleviate poverty. Microcredit, the extension of very small loans (microloans) to those who lack collateral or a credit history, is proving to be a revolutionary model in enabling people to rise from poverty. Small loans to small businesses and individual entrepreneurs foster self-reliance and community-wide economic development. Small loans to families can also provide opportunities for education and training.

Erich & Hannah Sachs Foundation
Grants and Loans to Individuals - Primarily in the fields of education, health and housing, to selected individuals and families who demonstrate a willingness and ability to improve themselves and the quality of their own lives. To download an application please click here. To visit their web site please click here.

Pearl M. & Julia J. Harmon Foundation
The Harmon Foundation's objective is to be the lender-of-first choice to Northeastern Oklahoma charitable organizations. We fund loans to buy, build, expand, or renovate real property or tangible assets.

F.B. Heron Foundation
The Foundation makes grants to and investments in entities that are engaged in one or more of the following wealth-creation strategies—including emerging opportunities to incorporate sustainable practices within the context of healthy environments—that benefit low- and moderate-income families and communities. The specific wealth-creation and preservation strategies are: Advancing home ownership, Supporting enterprise development, and Increasing access to capital and preserving assets.

Ford Foundation
Program Related Investments are usually loans made at below-market interest rates. PRIs can be made to both nonprofit and for-profit businesses as long as the money is used to further a charitable purpose. PRIs are helpful to businesses and social enterprises whose access to the market banking system is limited because of a lack of credit history or uncertainty about the eventual success of a project. When using a PRI, a program officer can also grant loan guarantees, equity investments or deposits in banks to help grantee organizations gain access to capital. Sometimes a grant can be coupled to a PRI to provide technical assistance or other support to guarantee the success of a PRI.

Pearl M. & Julia J. Harmon Foundation
In 1981 the Foundation’s Trustees decided to experiment with offering Program-Related Investments in the form of zero interest loans. It was a time of hyper-inflation and charities were having to borrow at high rates just to begin building so rising costs would not make their buildings more expensive faster than they could raise money. Our goal was to establish a revolving fund of loan principal which would enable the Foundation to support more and larger projects than it could with its normal distribution. Bringing this pool of charitable capital into existence was a significant aspect of the decision to make loans. In the 25+ years since, the Harmon Foundation has made 103 Program Loans, about $20 million.

Helen Bader Foundation - Wisconsin
The Foundation has used PRIs to strengthen the job- and business-development objectives of its Economic Dev. program area. The Foundation has awarded loans and loan guarantees to ventures and projects with the potential for improving Milwaukee's economic vitality, with a particular focus on the city's struggling neighborhoods.

Investors' Circle
Our process begins with an online application. In order to be evaluated for inclusion in our deal database or considered for a venture fair presentation, you must complete this application. We recommend that you review our company criteria before beginning an application.

KLFelicitas Foundation
PRIs are awarded to charitable organizations or commercial ventures providing charitable goods or services. PRIs employ financing methods such as loans, loan guarantees, lines of credit, linked deposits, or equity investments.

Kresge Foundation
Program-related investments are loans to nonprofit organizations, including nonprofit banks or community development financial institutions. PRIs provide high-performance organizations with access to financial capital. A secondary benefit of the PRI is that interest is charged at below-market rates.

MacArthur Foundation
To expand the impact of its grantmaking, the MacArthur Foundation uses program-related investments (PRIs). PRIs are an innovative type of philanthropy tool that usually takes the form of low-interest loans to nonprofit organizations. The Foundation is not accepting proposals for new PRIs at this time.

Maine Community Foundation   
Maine Community Foundation has several funds that make grants to individuals for professional development and special projects. Click here to review their programs.

Marin Community Foundation Loan Fund
Besides making grants to nonprofit groups, the Marin Community Foundation has also established the Marin Community Foundation Loan Fund to maximize the financial capacity of nonprofit organizations in Marin County. The loan fund provides a financial resource to the community by offering debt financing to organizations that typically cannot access or afford commercial debt.

Marion I. & Henry J. Knott Foundation
Eligible nonprofits may apply for short-term (30–180 days) cash flow loans against delayed receivables from government, foundation or corporate grants and contracts. Loan amounts can range from a minimum of $10,000 to $25,000 for organizations that the Foundation has never funded and $30,000 for previously funded organizations. Loans are made in alignment with the Foundation’s funding guidelines, policies, criteria and priorities. The loans will be made on a first-come, first-served basis from a revolving pool of $200,000.

Melville Charitable Trust - Connecticut
The Trust will make available money for general purposes, seed money and support for special projects, including technical assistance. Requests for program related investments (non-grant support such as loans - called PRIs) will also be considered. Support will typically be for one year, although multi-year requests will be considered.

Napa Valley Community Foundation
Applications from programs/projects with a fiscal agent that is a 501(c)(3) public charity will be accepted, provided that a letter of support is included from the fiscal agent. Applications from charitable programs of schools or faith-based groups also will be accepted.

Northwest Area Foundation
A key strategy for moving low-income people out of poverty is to increase financial assets and build wealth among individuals and in communities. We support efforts that link asset development strategies for greater impact.

RSF Social Finance
Since 1984, RSF has made over $190 million in loans to both nonprofit and for-profit organizations. Borrowers not only receive financing to meet their capital needs; through a close relationship with RSF, each becomes part of a larger community working to change the way the world works with money. If RSF is not the most appropriate source of capital for your organization at the time you contact us, we will do our best to refer you to additional resources for your unique situation.

Skoll Foundation
The Skoll Foundation drives large-scale change by investing in, connecting, and celebrating social entrepreneurs and other innovators dedicated to solving the world’s most pressing problems. Social entrepreneurs are proven leaders whose approaches and solutions to social problems are helping to better the lives and circumstances of countless underserved or disadvantaged individuals. By identifying the people and programs already bringing positive changes to communities throughout the world, the Skoll Foundation empowers them to extend their reach, deepen their impact and fundamentally improve society.

Whole Planet Foundation
The Whole Planet Foundation, a private, nonprofit organization established by Whole Foods Market, provides grants to microfinance institutions in Latin America, Africa and Asia who in turn develop and offer microenterprise loan programs, training and other financial services to the self-employed poor.

Wieboldt Foundation
The Wieboldt Foundation offers program related investments (PRIs) to support neighborhood development and revitalization. Through program related investments, loans, loan guarantees, or equity investments are available to help community organizations or groups working with low-income people whose work on housing, community economic development, and community ventures require this kind of financing. The Wieboldt Foundation funds Grassroots Community Organizing in Metropolitan Chicago
 

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