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A program-related investment is an arrangement by a foundation that meets the following qualifications:
- Whose core purpose is to achieve one or more of a foundation's exempt purposes
- That does not consider taking part in a political campaign on behalf of a candidate or influencing legislation a purpose;
- Does not consider the appreciation of property or production of income as a significant objective
Here are some examples of program-related investments
Loan to Small Enterprise in Deteriorated Urban Area 
The ACME Manufacturing Co. is a small business operating in a under-served urban community. It is owned by a group of African American and Latino men and women. The company has approached a number...more
The ACME Manufacturing Co. is a small business operating in a under-served urban community. It is owned by a group of African American and Latino men and women. The company has approached a number...more
Extension of Loan Terms on an Existing Program Related Investment 
The ACME Manufacturing Co. is a small business operating in a under-served urban community. It is owned by a group of African American and Latino men and women. The company has approached a number...more
The ACME Manufacturing Co. is a small business operating in a under-served urban community. It is owned by a group of African American and Latino men and women. The company has approached a number...more
Equity Investment in Small Business 
X is a small business enterprise located in a deteriorated urban area and owned by members of an economically disadvantaged minority group. Conventional sources of funds are unwilling to provide...more
X is a small business enterprise located in a deteriorated urban area and owned by members of an economically disadvantaged minority group. Conventional sources of funds are unwilling to provide...more
Below Market Interest Loan to Un-Disadvantaged Business Owners 
X is a business enterprise which is not owned by low-income persons or minority group members, but the continued operation of X is important to the economic well-being of a deteriorated urban area...more
X is a business enterprise which is not owned by low-income persons or minority group members, but the continued operation of X is important to the economic well-being of a deteriorated urban area...more
Below Market Rate Loan to Publicly Traded Company 
X is a business enterprise which is financially secure and the stock of which is listed and traded on a national exchange. Y, a private foundation, makes a loan to X at an interest rate below the...more
X is a business enterprise which is financially secure and the stock of which is listed and traded on a national exchange. Y, a private foundation, makes a loan to X at an interest rate below the...more
Below Martket Rate Loan to Nonprofit as Seed Funding 
X is a business enterprise which is owned by a nonprofit community development corporation. When fully operational, X will market agricultural products, thereby providing a marketing outlet for...more
X is a business enterprise which is owned by a nonprofit community development corporation. When fully operational, X will market agricultural products, thereby providing a marketing outlet for...more
Something that's Not a Program Related Investment 
X, a private foundation, invests $100,000 in the common stock of corporation M. The dividends received from such investment are later applied by X in furtherance of its exempt purposes. Although...more
X, a private foundation, invests $100,000 in the common stock of corporation M. The dividends received from such investment are later applied by X in furtherance of its exempt purposes. Although...more
Changes in Performance of a PRI and Implications 
S, a private foundation, makes an investment in T, a business corporation, which qualifies as a program-related investment under section 4944(c) at the time that it is made. All of T's voting stock...more
S, a private foundation, makes an investment in T, a business corporation, which qualifies as a program-related investment under section 4944(c) at the time that it is made. All of T's voting stock...more
Loans to Individuals to Attend College 
X is a socially and economically disadvantaged individual. Y, a private foundation, makes an interest-free loan to X for the primary purpose of enabling X to attend college. The loan has no...more
X is a socially and economically disadvantaged individual. Y, a private foundation, makes an interest-free loan to X for the primary purpose of enabling X to attend college. The loan has no...more
Support for Low-Income Housing 
Y, a private foundation, makes a high-risk investment in low-income housing, the indebtedness with respect to which is insured by the Federal Housing Administration. Y's primary purpose in making...more
Y, a private foundation, makes a high-risk investment in low-income housing, the indebtedness with respect to which is insured by the Federal Housing Administration. Y's primary purpose in making...more
PRI News from...
Kresge Foundation
Social Entrepreneurship
Spotlight
Foundation Provides Interest-free Loans to Start Up Social Enterprises
The Charities Aid Foundation has set up a scheme, called the Social Enterprise Assist, that will render interest-free loans of up to £10,000 each to help social enterprise start-ups.
