MISSION-RELATED INVESTING

In addition to grants, the Foundation seeks to accelerate the level of its assets invested in efforts with strong financial and social returns. Mission-related investments may take the following forms:

• Program-related investments, typically low-interest senior or subordinated loans or equity-like investments to nonprofit or for-profit organizations whose work closely corresponds with the Foundation’s programmatic interests;
• Market-rate insured deposits in low-income designated credit unions or community development banks;
• Other mission-related investments including, but not limited to, private equity and fixed-income securities offering a risk-adjusted market rate of return with substantial social benefits to low-income families and communities.

When reviewing a potential mission-related investment, Foundation staff conduct a comprehensive review of the prospective investee’s program achievements, governance, management and program competencies, financial health, and future plans in order to judge its ability to meet the terms of the investment. As is the case with any investor, the Foundation will balance the risks of a given investment against its potential financial and social returns.

Please note that program-related investments (PRIs) are only made where the proceeds will be used to support an organization’s direct charitable activities. PRIs will not be made, for example, to support endowments. In most cases, PRIs are made to organizations that also receive grant support from the Foundation.