Demystifying Program-Related Investing: Lessons from Recent Adopters is produced through a partnership between the Social Finance Institute, the Impact Investing Research Lab at the Impact, Value, and Sustainable Business Initiative at the Wharton School, and the Center for High Impact Philanthropy at the University of Pennsylvania.
Program-related investments (PRIs) enable foundations to provide loans, equity capital, and other return-generating financing that prioritizes social mission over financial performance. Existing research has thoroughly documented barriers to PRI adoption, including resource constraints and cultural resistance, but the focus on obstacles obscures an important reality: Some foundations have successfully integrated PRIs into their philanthropic practice, and many have done so recently.
What distinguishes these recent adopters? How did they navigate challenges that deter so many of their peers?
This research 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.
By demystifying PRI adoption while respecting its genuine challenges, this research helps more foundations find their own path toward successful implementation.
