Source: Chicago Tribune
Recently, in the world of philanthropy, impact investing has become a popular trend as charitable donors seek “creative ways to align their investments with their missions.” According to the Chicago Tribune, one method donors are using to accomplish this are program-related investments (PRI’s), created by the Tax Reform Act of 1969.
Successfully enacted by the Ford Foundation and others, a PRI is “a method of making philanthropic capital available to both nonprofits and for-profits that are addressing social or environmental concerns.”
Some examples of PRIs: low-interest-rate loans to nonprofits to pay off building mortgages, investing in a company that researches and develops “orphan drugs” in developing countries, or lending money to a nonprofit or for-profit that employs people in low-income or disaster-affected areas.
Read full story at: Chicago Tribune