Program-Related Investment Rules for Private Foundations — Course Transcript

Introduction

Maya: Hi, in case we haven’t met before, I’m Maya and I am new to my work at a private foundation. I have so much to learn. Like you, I’m interested in learning about program-related investments, which are also known by their acronym: PRIs. I want to understand how these investments can expand the charitable work that private foundations usually fund with grants and contracts, and when I should think about making a PRI instead of a grant. I am so excited about the possibilities that I think I will start work on my first PRI right now!

Narrator: Hello Maya! Good to see you again. I can help guide you through the PRI process.

Maya: Oh, uh, hello. I’m glad you’ll be here! I am excited to learn more about PRIs because I understand that some private foundations use PRIs to support their programmatic work.

Narrator: Yes, that’s right Maya. There is quite a bit private foundations can do with PRIs. In this course, we will cover the modules listed on your screen. As you’re going through the modules, some of the terms used might be new to you. For definitions of these terms, you can click on the information icon when it appears. The icon will take you to the Glossary of terms.

Maya: I feel like a whole new world of investing in our grantees’ work has just opened up! I can’t wait to start making PRIs!

Narrator: OK, Maya, hold on … Before we get started, if you’re taking a LearnFoundationLaw.org course for the first time, it’s best that you start by clicking the Course Navigation button on the bottom of your screen to learn how to control your training experience.

Additionally, if you’re taking this course for the first time we recommend that you go through each module in order, starting with the module called “Introduction to Program-Related Investments”. If you are a returning user, please select any of the modules to continue with your learning.

Narrator: Again, if you’re taking this course for the first time, it’s best that you go through each module in order.

If you’re returning to the course and using it as a reference, you can click any of the module titles on this page and jump right to your specific area of interest.

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Introduction to PRIs

Phone rings.

Maya: Hello, this is Maya, may I help you?

Joe: wonk wonk

Maya: Hi, Joe. Yes, I just got back yesterday from my conference in Cleveland.

Joe: wonk wonk

Maya: What were the highlights? Well, I always love seeing my colleagues AND there was one session – about program-related investments, or PRIs – that seemed intriguing. Do you make those at your private foundation?

Joe: wonk wonk

Maya: No, you don’t either? But you’d like to hear more about what I learned? Ok, let me look at my notes and I’ll get back to you.

Oh no. Help! I am not sure I understand my notes well enough to complete my own PRI, let alone to tell Joe about them. Oh no. Help! I am not sure I understand my notes well enough to complete my own PRI, let alone to tell Joe about them.

Narrator: Don’t worry, Maya. I think I can help. Maybe you can start by sharing with me the gist of the PRI session you attended? I can help you with the details from there…

Maya: Well, basically, I learned that in addition to making grants and contracts to support our work, private foundations can make PRIs that further our strategic goals. PRIs provide an additional tool for me to work with!

Narrator: That’s right, Maya. What else did you learn?

Maya: I learned that there are lots of different forms that PRIs can take. A loan is a common form of a PRI. But a PRI can also be in the form of a deposit in a community development bank, a guarantee or an equity investment.

Narrator: Did you get a description of these various kinds of PRIs?

Maya: Here is a nifty handout they gave us that defines grants and also describes the possible kinds of PRIs.

Narrator: Yes, this shows some of the possible ways a private foundation can make PRIs. There are even more ways to invest in an organization, but I just want to share the basic PRI concept with you today. Take a moment to review these terms. Click the forward arrow when you are ready to move on.

Maya: As a member of the program staff, I know about the grantmaking side of the Foundation’s work, but it’s our investment staff – or the team managing the private foundation’s endowment – that focuses on the traditional ”investment” side of things, such as earning money to preserve and grow our endowment. PRIs seem more like those kinds of investments than a grant or a contract, where we don’t see a monetary return.

Narrator: That’s partially right. One important point to note at the outset is that although a PRI is considered an investment, it is unlike typical commercial investments. The primary purpose of a PRI is charitable. Unlike a commercial investment, getting a financial return is not a significant purpose of a PRI, although some PRIs can generate sizeable returns.

Maya: So let me make sure I understand your point … A grant is made with the expectation that the grantee will use the grant dollars for the intended charitable work, but the grantee does not repay the grant.

But with a PRI, in most cases, the expectation is that the PRI recipient will use the PRI dollars for the intended charitable work, but will also repay the principal amount of the loan or other investment. But the interest or other repayment that the private foundation will get, typically will not be at the same rate of return as, let’s say, a commercial investor. Did I get this right?

Narrator: Exactly! And don’t forget that a grantee can also be a PRI recipient. In some cases, a foundation will make a PRI and a grant to the same organization to fund different sets of related activities.

Maya: This really opens up a whole new world of programmatic support!

Narrator: It sure does, Maya. Now that you have a sense of what PRI’s are all about, let’s complete a brief Knowledge Check. Click Begin when you’re ready to get started.

 

Legal Requirements for PRIs

Narrator: Hi again, Maya. Let’s move on to module two: Legal Requirements for PRIs. PRIs are defined by the IRS. By meeting the definition of a PRI, an investment counts towards a private foundation’s payout requirement when paid.

Our tax code provides special treatment to these types of investments because they are made to achieve a charitable purpose. There are three requirements that private foundations must meet in order to make this type of investment. They are:

  1. The investment’s primary purpose is to further the private foundation’s tax exempt purposes or mission;
  2. The production of income or increased value is not a significant purpose of the investment (meaning that an investor solely engaged in investing for profit would not likely enter into such a transaction on the same terms as the private foundation); and
  3. The proceeds of the private foundation’s investment cannot be used to support lobbying or

If an investment meets the PRI requirements, it will also provide the private foundation with a “safe harbor” from the tax code provision that penalizes private foundations for investments that may “jeopardize” a foundation’s exempt purposes (for example, because the investment is unduly risky).

Remember, you can view definitions of many of these terms in the glossary. You can also view the courses on Advocacy and Lobbying Rules and Electioneering Rules by clicking the links on the screen.

Click the Next button when you’re ready to continue.

Maya: Let me see if I can say that without sounding so much like a lawyer. The three criteria for a PRI are that the goal of the investment must be to further a charitable purpose, that making money from the investment cannot be a significant purpose of the PRI, and the private foundation’s money cannot be used for lobbying or electioneering.

Narrator: Good job, Maya. Although the rules seem simple, it’s important to always check in with your legal advisor before considering a potential PRI.

Maya: I thought that might be the case. I actually have some questions now. For example, how do I decide if a PRI is in line with our private foundation’s mission?

Narrator: Good place to start, Maya. You and your legal advisor can review the foundation’s bylaws, other organizing documents and funding areas to see if the proposed PRI fits within the foundation’s mission and work. Most of the time private foundations make PRIs in areas where they already have programmatic expertise and experience so usually this is not a very difficult requirement to meet; but it is an important requirement to think about at the outset. It also is helpful to develop a set of charitable indicators and metrics for the PRI to report on and to track.

Maya: Ok, now what about the second requirement. I am not sure what you mean when you say that no significant purpose of the PRI can be to make money. At the conference, people said that PRIs can generate a financial return. I’m confused.

Narrator: The main question here is whether your reasons for investing are charitable or financial. To make sure that your investment is a PRI, you should ask yourself a couple of questions:

  • Would commercial investors, who are primarily interested in just a financial return, enter into this investment on similar terms?
  • Would my foundation’s investment team consider this investment as part of its normal income-generating investing?

If you answer yes to these questions, then you need to think carefully about whether you really have a qualifying PRI.

Think of it this way, unlike commercial investments, PRIs are primarily about seeking charitable returns. PRIs might involve additional risk or less appealing potential returns, in exchange for achieving a charitable goal.

Maya: What kind of risk do you mean?

Narrator: Good question! If the risk is greater than a commercial investor would take, this part of the PRI test is satisfied. You and your legal advisor can look at whether commercial investors would make the investment on the same terms, particularly on the same financial terms. Often times, investors are not interested in making an investment that would qualify as a PRI because there is too much risk or because they would want a higher return if they were to take on that level of risk.

Maya: Ok, I think I know what to look for. How about the third requirement that the PRI cannot be used for lobbying or electioneering – do the same definitions for lobbying and electioneering that apply to grants apply here?

Narrator: Yes, the definitions and rules are the same. Remember that you can check LearnFoundationLaw.org for courses that cover those rules.

Click the next button to continue.

Maya: I understand that the tax code contains the three PRI requirements that we have been discussing. Does the tax code contain any examples of what the IRS considers a “good” or “bad” PRI?

Narrator: That’s a good question, Maya. The regulations that accompany the tax code provide several examples of what the IRS considers “good” PRIs and an example of a “bad” PRI. To read more about these examples, click the buttons on your screen. Click the next arrow when you are ready to move on.

Maya: Ok, I think I have the basics. I am going to email Joe with some of the notes from our conversation and then call him to see if he has any questions.

Maya: Joe, I just sent you over some basic information about PRIs and the ways in which grants and contracts are different from PRIs. I know you just got the information, but do you have any questions that come to mind?

Joe: wonk, wonk

Maya: You want to know how program officers can determine whether to fund a project with a grant, contract or PRI? In other words, which type of private foundation funding should be used in which circumstances?

Joe: wonk, wonk

Maya: Good question. You stumped me with that one. Let me look at my notes and get back to you… Call you later, Joe.

Narrator: Hey Maya, remember I am here to help. Understanding the kind of need you are trying to meet will help you decide if a PRI is a good alternative to a grant. For example, if the PRI recipient has a source of money but needs funding sooner than that money is available, it might want a PRI structured as a loan. One of the easiest things to look for then is whether the project has a source of repayment that would make it a good PRI instead of a grant. For example, many nonprofit organiz- ations conduct capital campaigns to raise money to build their buildings. As part of this process, they seek donations from private foundations and other funders.

In those capital campaigns, some donors pay their pledges right away but others pay over a period of time, maybe even over a period of years. But, in many cases, the organization wants to get the building built without having to wait for all the pledges to be paid. In this scenario, a PRI can serve as a bridge loan, or a way to count on the money eventually raised from the capital campaign, but without delaying construction while the pledges and payments come in.

Maya: Ah, I see. Do you have another example?

Narrator: Sometimes, in conservation and community development work, there is publicly funded money – federal, state, or local money – that will become available for the project that can eventually repay the PRI. This same kind of bridge financing works if there is a product or service that will eventually generate income to repay a PRI loan. These are only some examples of how PRIs can be used.

Maya: So the key to think about is whether the PRI recipient has a source of funds to repay the PRI?

Narrator: That is certainly the case for PRI loans, Maya. But it is also possible to make many different kinds of PRIs. The goal the private foundation is trying to achieve, as well as the goals and needs of the PRI recipient, will help to determine the proper PRI form.

For example, in order to help an organization qualify for financing, or obtain financing on better terms, a private foundation can make a deposit or loan guarantee. In the case of a deposit, the private foundation puts money into a bank; the bank then loans the same amount to the organization. If the organization defaults, the bank has recourse to the private foundation’s deposit. In the case of a guarantee, the private foundation guarantees the loan of the organization and if the organization defaults, the foundation has to repay the bank.

Maya: This seems like a great use of the foundation’s resources.

Narrator: Yes, it can be a great source of support. But depending on how the deposit or guarantee is structured, it may or may not count as part of the foundation’s payout requirement, so you will want to get assistance with that from your legal advisor.

Maya: What should I think about with an equity investment PRI?

Narrator: In some cases, a loan or guarantee isn’t going to work. Often an equity investment may be a preferred structure for such recipients as start-up companies or organizations taking on risky ventures in a new market. Equity investments are usually intended to help develop or grow a business in a way that furthers the private foundation’s charitable mission. Equity investments in a for-profit company, typically take the form of shares of stock, membership interest in a limited liability company, or interest in a limited partnership.

Equity investments may be more risky than other PRIs, and private foundations must consider the significant legal and business issues that come with ownership in an organization. In addition, equity investments require careful attention to process and documentation, including maintaining expenditure responsibility, methods of monitoring the investment, determining how the foundation will receive a return on its investment (both in the normal course and in the event of a problem) and still meet the PRI requirements.

Equity is typically a more risky investment than a loan, because a loan is a contract that entitles the lender to fixed repayments of principal and interest. Therefore, it is all the more important to enter into and manage these investments in close coordination with your legal advisor.

If you’re unfamiliar with Expenditure Responsibility, you can click this link to launch the course and view it later. Otherwise, click the next button to continue.

 

Due Diligence for PRIs

Maya: Now that I know the basics of how a PRI works, how do I get started? I’m comfortable with how to start the grant process, but what about PRIs? What information do I need? Is the process different from a grant?

Narrator: Those are all great questions Maya. Module three is all about due diligence for PRIs, so let’s dive in. The due diligence done on a PRI will depend on the type of PRI to be used. For example, equity PRIs may require a more in-depth analysis than that required for a PRI loan or a deposit. But, in many ways, PRI due diligence is similar to reviewing a grant proposal. You start with the basics: the organization’s history and mission; its legal and tax status; a detailed project description; justification of the need for the project; timeline for the project’s implementation; details about key personnel responsible for implementing the project; the organization’s financial condition as described in its financial statements, audits and tax returns, etc.

But your review, Maya, whether done by you or your foundation’s financial staff or consultants, differs in one big way from grantmaking due diligence. For loans, the proposed structure has to show that the investment can be repaid, so you need to understand the structure of the principal and interest repayment; specifically, whether the terms also assure you that the return of the invested funds to the foundation does not impair the financial health of the entity you are trying to help. For equity investments, the analysis focuses on the specific form of the private foundation’s investment (for example, preferred stock with special rights versus common stock) and on the foundation’s exit strategy in the event that the investment no longer accomplishes its charitable purposes. So, while your review is similar to a grant review in that, in each case, you will consider whether the recipient can use the foundation’s funds to accomplish its charitable purposes, more detailed financial analysis is necessary. You should definitely reach out to your legal advisor in these cases.

Maya: So when I am looking for how an organization will structure repayment, what am I looking for? What would that review look like?

Narrator: It depends on the particular transaction but it can involve detailed review of the organization’s audited financial statements, its financial projections, and the likelihood of the sources of repayment, if the investment is a loan. You might want to get some help in reviewing the financial information from someone at the foundation if you don’t have experience doing this analysis.

Maya: Are there other legal issues I need to worry about with PRIs?

Narrator: If a PRI is made to an organization that is not a U.S. public charity (or its equivalent) – for example, a foreign entity or a U.S. for-profit entity – the expenditure responsibility rules will apply. For more information about how to apply the expenditure responsibility rules, please see the LearnFoundationLaw.org course on Expenditure Responsibility. Also, more complex business transactions can raise any number of issues such as security and withdrawal rights.

Maya: Gee. I am beginning to think that this could be a lot of work! Why bother with a PRI with all that’s involved? I am going to call one of the people I met at the conference whose foundation makes PRIs and see what she says.

Hi, Julene, it’s me Maya. We met at the conference in Cleveland. I know you really are enthusiastic about making PRIs but it seems like a lot of work. Is it worth it?

Julene: wonk, wonk, wonk, wonk, wonk

Maya: Wow, those are really good points. Thanks, Julene. This is really helpful. I think I am going to consider making a PRI if I can find the right opportunity. Talk to you soon. (Click). I better write Julene’s point’s down.

Maya: Some of the benefits of PRIs:

  • First, they allow funds to be recycled and used
  • Second, they build the recipient’s capacity and financial
  • Third, they can help prove or strengthen a business model that serves a charitable
  • And fourth, they can provide the funder with more insight into an organization’s

Narrator: Hi Maya, just a quick note that Julene’s analysis is focused on nonprofit organizations. PRIs can also provide funding to for-profit recipients. The issues that private foundations care about are often neglected by for-profit funding. However, the inexpensive capital associated with PRIs can induce for-profits to work on charitable issues that your private foundation cares about.

Maya: Got it! Thanks.

Narrator: Click on each item to learn more about the benefits of PRIs. When you’re finished, click the next button.

Maya: Oh, darn… I have another question. I see how PRIs might be good for the recipient, and I‘ve heard they can also benefit private foundations by counting towards their payout requirement. How does that work?

Narrator: I can help you with that question. Under the IRS rules for PRIs, a PRI counts towards the foundation’s 5% payout requirement in the year, or years, when the PRI is paid. Then, when the money is repaid it acts like “negative payout”, meaning the amount that is recovered is added to the amount that a private foundation has to pay out.

Interest, dividends, and other types of gains on PRIs, however, are treated just like any other investment income and are subject to the annual excise tax on a foundation’s net investment income. Tax and financial reporting for PRIs can be tricky, so you will also want to make sure that your finance team is aware of how to treat PRIs and report them.

Feel free to go to the glossary if you need help defining some of these terms. It’s important to note that PRIs are also reported on the foundation’s annual tax return, also known as the 990-PF.

Maya: Are there other tracking and reporting implications for the foundation that I should be aware of?

Narrator: That’s a good question Maya. Foundations also need to consider staff capacity for tracking and monitoring their PRIs, including monitoring compliance with the terms of the relevant PRI agreement.

Maya: I’m getting it, I think. But I have one more question. Today, we’ve talked about program-related investments. The presenters at the conference used that term, but also spoke of “mission investing?” Is there a difference?

Narrator: Yes, mission investing is a broader topic. And, individual private foundations think about mission investing quite differently. An important difference between mission investments and PRIs is that mission investments are not defined in the tax code and do not provide the same tax-related benefits as PRIs, no matter the positive social impact that a mission investment may have. To learn more about mission investing, click on the term on your screen now.

Narrator: At some private foundations, PRIs are only one component of a broad- based approach to mission investing. A separate investment policy pursued by some foundations is the application of a screen to their entire portfolio of investments, including those made to support the growth of their endowments, to weed out investments that are perceived to be contrary to the foundation’s values. This is typically referred to as socially-responsible investing (and such investments as socially responsible investments).

Maya: Ok. Now I see how PRIs fit within mission investing as one type among a few.

Narrator: Ready for another knowledge check? Click Begin when you’re ready.

 

Examples of PRIs

Joe: wonk, wonk

Maya: Oh, hello Joe. It’s so nice of you to call to see how my first PRI presentation went. Our foundation was very happy with our analysis and unanimously approved the PRI!

Joe: wonk, wonk

Maya: Did the foundation make any changes? No, not one change. The deal is exactly as we proposed it – a loan to the International Film Festival for $500,000,  over five years, at 1% interest to buy ten new digital projectors. The Film Festival had trouble obtaining a bank loan with an interest rate it could afford. The loan will be amortized to be paid back in quarterly payments of principal and interest and secured by a lien on the projectors.

Joe: Wonk, wonk.

Maya: Why do we think the borrower will be able to repay the loan? Well, last year it cost the Film Festival $100,000 to rent ten digital projectors for its annual film festival, which they paid from ticket sales. Projectors cost $50,000, so with our $500,000 loan, the Film Festival will be able to buy, rather than rent, the ten projectors and use the funds from its annual ticket sales to repay the foundation over five years.

In addition, the Film Festival has a strong balance sheet with cash reserves sufficient to cover the 1% interest on the loan plus any unexpected shortfalls in ticket sales.

Our loan is secured by the projectors themselves, which means that if the Film Festival defaults on the loan, we would have the right to take possession of the projectors to satisfy the debt.

Joe: wonk, wonk

Maya: What kinds of questions did I get from the foundation? Well, they asked questions about the key elements of the investment that make it qualify as a PRI. In particular, they wanted to be clear about the charitable purpose. So, I started by sharing with them that the borrower is a 501(c)(3) public charity. Then, I stated that our loan would help anchor the festival in the center of town. Given all the young residents now living there, having a strong viable theater helps increase the local vitality we are trying to encourage as part of our foundation’s programmatic work. So, there are both local arts and community development benefits that flow from our PRI.

Joe: wonk, wonk

Maya: What? You think you have a project that may be suitable for a PRI? That’s fantastic, tell me about it.

Joe: wonk, wonk, wonk, wonk…

Maya: I know the organization you’re talking about, Joe, Save Our Open Space. Their mission is to preserve open space around town, right? I bike past the big piece of land you’re describing. I didn’t know the landowner was willing to sell it to Save

Our Open Space! That’s good news. So Save Our Open Space is confident that state funds will be available to finance the purchase, but that the state money won’t be available until next year?

Joe: wonk, wonk

Maya: So it sounds like this PRI would be a bridge loan. You would make a loan to Save our Open Space and they would use the funds to purchase the land. Then, when the state money is available, Save our Open Space would repay your foundation. And part of the deal is that they would put a conservation easement on the land so that the land cannot be developed. Sounds like a great PRI to me! How do you feel about the terms of the loan and the borrower’s repayment plans?

Joe: wonk, wonk

Maya: Ok, so it would be a bridge loan to Save our Open Space for $1.2 million for one year, at 1% interest, secured by the land and repayable within 30 days of receipt of the state funds. And the funding from the state is already approved but just can’t be paid until the next fiscal year.

Sounds good. Be sure to let me know what your foundation decides!

 

Documentation for PRIs

Maya: I was wondering if you could help me out. What kind of documents should I expect to see for the PRI that our foundation recently approved? Our lawyer says we need to negotiate these before the foundation can close the loan.

Narrator: To help you answer some of these questions, in this module we will talk about documentation for PRIs. Documentation will vary depending on the type of PRI, the complexity of the PRI, and your foundation’s internal procedures. It is probably fair to say that just as most private foundations have a written grant agreement, most private foundations will have a written agreement that lists the terms and conditions of the PRI. This might be a credit agreement, a deposit agreement, a limited partnership agreement or a shareholder’s agreement. If you’re exercising expenditure responsibility, you must have a written agreement.

Maya: Can you give me an idea of some other common documents?

Narrator: Sure, for a loan, in addition to a credit agreement, you might see a promissory note, or a filing of a security interest, such as a UCC filing. For an equity investment you might see a document such as a shareholder’s agreement describing withdrawal rights – which explains what the private foundation can do if certain conditions change. If there are multiple investors, you may have a separate agreement such as a side letter that lists the rights and responsibilities of the private foundation and its PRI recipient in addition to the standard documents for all investors.

Maya: I remember at the conference that there seemed to be some discussion about whether it was necessary to get IRS approval of a PRI.

Narrator: Good question. IRS approval is not required for PRIs. However, for some complicated PRIs, your legal advisor may recommend that your foundation seek an opinion of counsel, or even a ruling from the IRS.

Maya: Ok but some of the documentation sounds a little daunting. In fact, I’m not really sure I know what some of it is.

Narrator: Hey Maya, I know how you feel. Sometimes it seems there is a whole different language when people talk about PRIs. But don’t worry. Your financial staff colleagues and your legal advisor can help. And there are lots of resources for what the concepts and terms mean. You don’t have to become an investment expert to make a PRI.

Maya: Good to know. Here is something else that I’m wondering about… What is my role as a program officer in reviewing the PRI documentation?

Narrator: Generally, your legal advisor will be responsible for the legal and technical terms, but you will want to check that the documentation reflects the programmatic requirements for the investments.

Sometimes all of this can take some time to negotiate and review, depending on the complexity of the investment. These issues are important to resolve to assure the foundation will recoup its investment and that PRI funds are used exclusively for their intended charitable purposes.

Maya: Good to know. That helps a lot!

Maya: My legal advisor and I worked through all the documents and I’m so excited because our PRI deal closed today. We sent the $500,000 to the International Film Festival to purchase the digital projectors. They are thrilled and so am I.

Narrator: Congratulations! Your first PRI.

Maya: Now that I have learned about this part of making a PRI, all that’s left is tracking the payments and Bob in finance has that all taken care of so I think I am home free.

Narrator: Wait a minute, Maya. Not quite so fast. Hopefully this will go like clockwork, but there is still an important role you have to play.

Maya: There’s more?

Narrator: It is important for you to keep in good touch with the International Film Festival and to read the reports they send you. Remember, depending on the term or the length of the PRI, reports might come to you for an extended period of time. PRIs often have longer terms than grants. And you should get help from your finance team if the report is complicated or tracks funds in a way you’re not familiar with.

Maya: What should I look for?

Narrator: Well, just as you would for a grant, you want to see progress on the project that furthers your programmatic work. You will also want to see if the project is within its budget. Look for any red flags or delays. In the future, if you have a PRI that is funding a building and there are delays in getting plans approved or permits issued, that might delay the project, driving up costs. That might be a concern. Or if you are bridging a capital campaign and the donors are not paying their pledges on the timeframe that was expected, that could also be a problem.

Maya: I get it. But what would I do then?

Narrator: I think you would want to talk with your financial team and your legal advisor to understand the foundation’s legal options and how you might work with the PRI recipient to resolve the issues. But complications are pretty rare.

Maya: OK, I will definitely do that.

Narrator: I think you’ve got the hang of this, Maya! Ready for our final knowledge check? Click Begin when you’re ready.

 

Resources

Maya: This has been great! I feel confident using PRIs as a tool for providing programmatic support now. Most importantly, I understand how PRIs can expand the charitable work that private foundations usually fund with grants and contracts, and when I should think about making a PRI instead of or in addition to a grant. Do you have any ideas about how I can keep learning about PRIs?

Narrator: One resource is the Mission Investors Exchange. It is an affinity group for mission investors and PRI makers. It has lots of resources online and offers trainings, workshops, calls and even a national conference.

Maya: I’ll be sure to check it out. Thanks for all your help learning about PRIs!

Narrator: You’re very welcome, Maya. And remember, you can always click the Course Map button, and access any topic of interest to you. Use this course as a reference, as often as you need. If you want to return to the Home screen, then click … you guessed it … the Home button. You can now print a certificate of completion and complete a short survey. We hope you will take the time to complete the survey. Your feedback will help us design future courses. Thanks!