Resources on Program Related Investing
June 29, 2009
By Elizabeth Ü
I spent most of last week in Greensboro, NC, attending the Sustainable Agriculture & Food Systems Funders Annual Forum: Deep Roots (you can check out the agenda here: safsf.org/documents/DeepRoots_D4.pdf). This annual event is an excellent forum for foundations and government funders (such as staff from the USDA and Risk Management Agency) to discuss trends, identify collaboration opportunities, and challenge each other to do more to support local and sustainable food systems; the conversations continue throughout the year via the SAFSF listserv, and I highly recommend joining as a member if you are an individual or institutional funder interested in food issues. As is so often the case, the value of the collective consciousness is so much more than the sum of its parts! To learn more about membership, click here. Readers seeking grants for projects that contribute to sustainable food systems may be interested in the list of funder members here.
In preparation for a presentation that Kathleen Fluegel (HRK Foundation), Jeff Rosen (Solidago Foundation) and I gave on program related investing (PRI) at Deep Roots, I compiled the short list below of resources that I have found most helpful for foundations interested in learning about how they can more effectively activate their assets toward strategic goals with PRI. (See also my previous blog post on the topic: rsfsocialfinance.org/investing/pri-doing-more-with-less/)
PRI MAKERS NETWORK
The PRI Makers Network seeks to strengthen the capacity of grantmakers to affect change across diverse program areas. It is an association of grantmakers that use program-related and other investments to accomplish their philanthropic goals. The organization provides a forum for networking, professional development, collaboration and outreach to funders, including those not currently making PRIs or other social investments. The network’s website (www.primakers.net) includes regularly updated links to various resources and articles (including the ones listed below). It also facilitates a variety of workshops and discussions – ranging from one-day briefings to sessions at regional and national affinity group conferences – and maintains a database of PRI activity. Certain features are accessible to members only.
PRI ARTICLES
These three articles, from the law offices of Brody, Weiser, and Burns, provide general overviews, definitions, legal information, and key considerations for foundations considering PRI.
1. Should We Consider a PRI? Basic program-related investment criteria for foundations and nonprofit organizations, Christa Velasquez and Francie Brody, 2002; www.brodyweiser.com/pdf/shouldweconsider.pdf
2. Current Practices in Program-Related Investing, Francie Brody, Kevin McQueen, Christa Velasquez and John Weiser, 2002;
www.brodyweiser.com/pdf/currentpracticesinpri.pdf
3. Matching Program Strategy and PRI Cost, Frances Brody, John Weiser and Scott Miller. Phyllis Joffe, editor.
www.brodyweiser.com/pdf/matchingprogstrategy.pdf
As you can see from these articles, direct PRI requires staff skilled in:
• Finding and evaluating eligible PRI projects,
• Drafting investment term sheets,
• Administering investments,
• Monitoring projects, and
• Providing technical assistance as necessary.
Intermediated PRI models, such as the RSF PRI Funds (www.rsfsocialfinance.org/pri), make PRI accessible to a wide range of foundations. Whether your foundation is just getting started with PRI, or does not want to go through the challenge and expense of starting up an in-house program, or wants to leverage the experience and systems of an intermediary, there are many reasons to consider this approach. For more information on PRI intermediaries, visit: www.primakers.net/intermediaries.
MISSION RELATED INVESTING
Mission Related Investing (MRI) is another powerful concept foundations can consider to allocate a greater percentage of total assets toward their strategic goals. There is still a lot of confusion around what constitutes MRI compared with PRI, and this article is quite helpful in breaking down the differences:
Capital with a Conscience: Private foundations must distinguish carefully their investments’ purpose, character and strategy, Jane M. Searing,
www.primakers.net/files/Capital_With_a_Conscience_-_J_Searing_-_JoA_Jul_08%5B1%5D.pdf
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This is of course only a partial list of the resources available online and otherwise, and I’d be happy to point you in the right direction if you have specific questions. Please also feel free to list your own favorite resources in the comments below!
- Published by Elizabeth U
- Categories: Food & Agriculture, Giving, Investing, Lending, Money, Social Finance
Your article will be a very helpful resource. Thanks.
Comment by Christine Sculati — June 29, 2009 @ 12:16 pm