|
Home
: The Center for Applied Philanthropy : Why Program Related Investments
Why Program Related Investments
Simply stated, there are not enough 'traditional' philanthropic dollars available to meet even a fraction of the needs of the domestic population. Adding to the increasing philanthropic challenges, the next several years promise a period of "forced dislocation" of vital services from government to nonprofit organizations,
CAP believes that 'non-traditional capital' - structured as loans and other Program Related Investments (PRIs) - represent largely untapped investment strategies that could help bring to market millions of dollars in new capital to nonprofits. Importantly, PRIs can compliment and leverage existing grant dollars - helping philanthropic institutions extend their grant making capacity and maximize their resources and impact.
--- For nonprofits - access to new types of capital through PRI investments and could substantially reduce their reliance on more traditional forms of philanthropic dollars that are less likely to be available in the future. Additionally, the increased accountability and improved management strength that occurs from access to this capital can serve to strengthen an organization and improve its sustainable funding streams
--- For foundations and donors - incorporating PRI investments into their philanthropic strategies offers foundations and donors who are facing the challenges of dwindling returns and fewer resources an opportunity to pursue their philanthropic goals in ways that allow them to recycle their capital and to leverage their balance sheet more effectively. Additionally, PRIs can also achieve social benefits in a way that grants cannot, while improving the alignment of their total portfolio with their mission. Finally, in terms of performance, PRIs and other mission investments have increasingly become a valued asset in a total portfolio
|