According to the IRS, a Program Related Investment meets two conditions:
1.The primary purpose of the investment (i.e., loan, equity) is to accomplish one or more of a foundation’s programs.
2. Income production is not the primary purpose of the investment.
PRIs are counted as part of the annual distribution (at least 5% of its endowment) a private foundation in the US is required to make. PRIs often take the form of low interest loans to enterprises and organizations that result in social or environmental benefits and are paid back to the foundation, in some cases with a modest return.
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