More for Mission

What is Mission Investing?

 Market-Rate Mission-Related Investments (MRIs)

• Market-rate investments that support the mission of the foundation and seek competitive risk-adjusted rates of return. Labels can include investing in the emerging domestic markets, double/triple bottom line investing, and green investing.
• MRI seeks financial returns similar to conventional investments (without concern for social or environmental factors) and  target returns against established benchmarks. MRI opportunities exist across asset classes in real estate, venture capital, fixed income, and cash equivalents.

Program-Related Investments (PRIs)

• Below-market investments to nonprofits or commercial ventures for charitable purposes.
• Investments target returns lower than the market-rate average, often in the 2-3% range.
• Loans, loan guarantees, linked deposits, and may include equity investments for specific purposes such as affordable, workforce housing, and community development facilities.
• Foundations vary in their approach that may include PRIs as part of their grant budget or choose PRIs as part of their endowment investment allocation.  PRIs may be included in the 5% payout to maintain non-profit tax-exempt status.
• The IRS states that PRIs:  “…must significantly further the foundation's exempt activities.  They must be investments that would not have been made except for their relationship to the exempt purposes."  1. The primary purpose is to accomplish one or more of the foundation's exempt purposes, 2. Production of income or appreciation of property is not a significant purpose, and, 3. Influencing legislation or taking part in political campaigns on behalf of candidates is not a purpose.

Socially Responsible Investments (SRIs)

• SRI (or just Responsible Investment, ethical investing or sustainable investing) incorporates positive and negative screens on Environmental, Social, and Governance (ESG) factors in the investment-decision making process.
• Screened passive indexes, actively managed broad portfolios, themed portfolios (climate, water, community investment).
• Responsible Investment can target investing that supports sustainable economic growth in underserved communities.

Shareholder Advocacy

• Involves leveraging the foundation's ownership position in the company to affect change in corporations. 
• Proxy voting, direct engagement with corporations, and filing shareholder resolutions.
• Shareholder advocacy is often collaborative, investors come together to boost their capacity to affect change.