A new research report offers clearer understanding of how foundations are integrating program‑related investments (PRIs) into their philanthropic practice. Demystifying Program‑Related Investing: Lessons from Recent Adopters was conducted in partnership with the Center for High Impact Philanthropy (CHIP), Social Finance Institute, and the Impact Investing Research Lab at the Impact, Value, and Sustainable Business Initiative at the Wharton School.
PRIs allow foundations to use loans, equity, and other return‑generating tools to advance mission‑driven outcomes. While prior research has emphasized the barriers to PRI adoption, this study focuses on organizations that have moved forward despite those challenges.
Maoz (Michael) Brown, Director of Impact Research, Evaluation, and Learning at the Wharton Impact, lead the research that distills lessons from 36 U.S. foundations that began making PRIs between 2016 and 2023, translating their experiences into practical guidance for foundations considering this transition. The project documents a more nuanced reality: PRIs are not inherently difficult; rather, foundation experiences vary dramatically based on factors that organizations can deliberately manage. Success depends less on organizational size or sophistication than on deliberately managing complexity, capacity, and congruity.
The paper was previewed to donors and advisors on January 15 at an event hosted at Tangen Hall, ahead of the Wharton Impact Conference. Get the research brief and full paper at no cost.