A program-related investment is an arrangement by a foundation that meets the following qualifications:
- Whose core purpose is to achieve one or more of a foundation's exempt purposes
- That does not consider taking part in a political campaign on behalf of a candidate or influencing legislation a purpose;
- Does not consider the appreciation of property or production of income as a significant objective
Here are some examples of program-related investments
Equity Investment in Small Business
X is a small business enterprise located in a deteriorated urban area and owned by members of an economically disadvantaged minority group. Conventional sources of funds are unwilling to provide...more
Loans to Individuals to Attend College
X is a socially and economically disadvantaged individual. Y, a private foundation, makes an interest-free loan to X for the primary purpose of enabling X to attend college. The loan has no...more
Support for Low-Income Housing
Y, a private foundation, makes a high-risk investment in low-income housing, the indebtedness with respect to which is insured by the Federal Housing Administration.
Y's primary purpose in making...more
Philanthropic organizations and housing associations could scale their impact and further their social missions by supporting social innovation of other individuals and groups.