Definitions for "Program-Related Investment"
An investment in a community development or business venture that serves a charitable purpose. Unlike a grant, the foundation expects its investment to be repaid, although usually not at the same rate of return that it would expect from its normal investments.
Broad, functional definition: A method of providing support to an organization, consistent with program goals involving the potential return of capital within an established time frame. In the context of this study, program-related investments include loans, loan guarantees, equity investments, asset purchases or the conversion of asset(s) to charitable use, linked deposits, and, in some cases, recoverable grants.
A loan or other investment (as distinguished from a grant) made by a foundation to another organization for a project related to the foundation's philanthropic purposes and interests.