Program Related Investments
The George Gund Foundation makes program-related investments (PRIs) in nonprofit ventures that fit particularly well with the Foundation’s grantmaking objectives. PRIs can take the form of loans, equity investments, linked deposits and loan guarantees. Unlike grants, PRIs are expected to be repaid.
The Foundation’s first PRI was made in 1984 when $333,000 was loaned to the Famicos Foundation for construction of the Lexington Village Project, a 183 unit housing development in the Hough neighborhood of Cleveland. Since then, nearly 26 separate PRI transactions have been completed. Currently, the Foundation has almost $11 million invested in 13 active transactions.
PRIs are generally made only to nonprofit organizations with a strong record of performance using Foundation grants. Given expectations for repayment, the application process for a PRI is considerably more detailed than for a grant. Conversations on a possible program-related investment should begin with the program officer the organization normally deals with regarding grants.