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:
- Its primary purpose is to further the charitable objectives of the foundation.
- 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).
- 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?