Philanthropy Australia has prepared a report called ‘Program Related Investments – an Opportunity for Australia’. The report, commissioned by the Department of Social Services explores ‘Program Related Investments’ (PRIs) as a tool for foundations to complement their traditional grant-making activities.
PRIs (commonly used by US foundations) involve foundations making investments to further their charitable purposes, with the explicit understanding that those investments will earn below market returns.
Common types of PRIs include low cost loans, equity investments in funds with a social/environmental purpose or social enterprises, and loan guarantees, where the foundation guarantees the borrowing of a charity, not-for-profit or social enterprise, so it can access finance from a conventional provider.
For further information, or access to the full report, please click here.