Program-Related Investments

In certain situations, Rasmuson Foundation employs program-related investments to achieve a desired charitable outcome. An example of when a program-related investment might be employed include helping to increase the availability of credit and capital to nonprofit intermediaries, banks, community development financial institutions (CDFIs), small-business developers, and others whose activities would contribute to conditions that directly help Alaskan families succeed. The intended outcomes would include increasing employment, home ownership, and opportunities to build assets; promoting neighborhood stability; increasing the availability of safe, secure and affordable housing and affordable goods and services; or redevelopment of blighted properties into useful community assets.

What are program-related investments?

Program-Related Investments (PRI) are a collection of financial instruments that can be used by a foundation to support a charitable project or activity. Usually structured as loans, PRIs can also be equity investments, linked deposits or loan guarantees.

The term "program-related investment" was created by Congress in the Tax Act of 1969. As currently defined by the IRS, a "program-related investment" is any investment by a foundation that meets the following three tests:

  1. Its primary purpose is to further the charitable objectives of the foundation.
  2. No significant purpose is the production of income or the appreciation of property (i.e., a prudent investor seeking a market return would not enter into the investment).
  3. It is not used to lobby or support lobbying.

What are the Foundation's PRI programmatic interests?

In general, the Foundation looks for PRI opportunities in the following interest areas:

  • Affordable housing
  • Community and economic development
  • Historic preservation
  • Special opportunities as defined by the Board

The Foundation seeks to avoid consideration of candidate PRI projects which are:

  • bankable through traditional venues (seek only to lower the cost of capital);
  • not necessary from a business perspective and could weaken the borrower;
  • seeking debt reduction associated with a current loan;
  • high risk business ventures that are not congruent with the Foundation's core charitable interests.

How do we apply for a PRI?

The Foundation accepts PRI Letters of Interest by invitation only.

Who could we speak with for more information about this program?

Chris Perez
Program Officer
907 334-0522