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: Philanthropy Promotion Programs : Mission Investments
Mission Investments
TPI is partnering with a new center, CAP, which is focused on increasing the understanding, use, and adoption of PRIs and MRIs. CAP is working with funders and nonprofits to learn about and implement these strategies. Learn more about CAP here
TFS is a special purpose investment fund being launched by CAP and the Calvert Foundation. It provides opportunities for funders and donors to partner with CAP in program related investments (PRIs) that fund working capital and programmatic needs. Learn more about TFS here
While not new, Program Related Investments (PRIs) and Mission Related Investments (MRIs) are becoming increasingly popular tools for donors to combat unfavorable economic climate and increase their impact. How best to utilize PRI's and MRI's – or use them all – remains unknown, however, to many foundations. In collaboration with the Center for Applied Philanthropy, TPI works with donors to educate staff and board in why, where and how to use these valuable tools.
Program Related Investments (PRIs) are investments in either a nonprofit or commercial venture made by a philanthropic institution with the primary objective of furthering its mission. They provide a tool for foundations to leverage their grant dollars, as they are considered charitable expenditures - just like grants - and are included within a foundation’s 5% payout requirement. PRIs offer a return through either repayment or return on equity, which can then be recycled for another charitable purpose. While generally structured as a below-market loan, PRIs can also include loan guarantees, lines of credit, linked deposits, and even equity investments.
Mission Related Investments (MRIs) are market-rate investments that seek financial returns similar to conventional investments, while also producing social, environmental, or educational impact, which provides foundations the opportunity to better align their investment strategies with their mission
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