A $350 million impact allocation unlocked $1 billion in private investment. A low-interest loan helped a pharmaceutical company get regulatory clearance. An equity investment in a fintech company spurred better business governance.
All are examples of philanthropies investing, rather than grant-making, to advance their impact goals.
The vehicle: program-related investments, or PRIs, an underutilized tool that allows private foundations to earn a return through debt, equity and other investments made from their program budgets. Less than 0.5% of US foundations deploy funding through PRIs.
The instrument could have more impact now, with public funding for climate change, conservation, key social programs and international development in retreat.