A worthwhile upgrade, for the right need
Mission-Related Investments (MRI) / Program-Related (PRI)
For foundations: invest a portion of endowment or assets in line with mission (MRI) or below-market for charitable purpose (PRI). Requires legal structure and often advisor support.
Personal fit. Clear tradeoffs. Room to skip.
The short answer
Examine the investment and the impact claim separately.
Examine the financial risk, fees and stated impact separately. A label is not evidence of either return or impact.
Worth considering when
You will use the difference.
- You can explain the impact objective and how it is assessed.
- The risk and liquidity fit your financial plan.
- You understand the fees and investment structure.
Probably skip it when
A simpler choice serves you.
- The impact claim cannot be substantiated.
- You expect a label to remove investment risk.
- A direct charitable gift better serves the intended goal.
Make it personal
Does this sound like you?
Start with your priorities. Matching them is a reason to compare the options, rather than a reason to spend automatically.
What would you like to make easier, better or more memorable?
What the premium should buy
Pay for the useful part.
- Understandable disclosures and impact criteria.
- A suitable risk and liquidity profile.
- Independent review of fees and conflicts.
The smaller alternative
Start one level down.
Compare investing and charitable giving as separate ways to pursue the objective.
The best comparison includes keeping what already works.
Planning details and practical considerations
Potential benefits to check
- Entire asset base can advance mission
- PRI counts toward 5% payout
- MRI can target market-rate impact
- Aligns capital with grantmaking
- Growing practice and precedent
Tradeoffs to discuss
- Complexity; need legal and investment advice
- Fiduciary and board alignment required
- Deal flow and diligence take time
- Liquidity and return tradeoffs
- Not for DAFs (foundation-only)
The questions that matter
A little more clarity.
Mission-Related Investments (MRI) / Program-Related (PRI): is it worth considering?
Examine the financial risk, fees and stated impact separately. A label is not evidence of either return or impact.
What makes the extra spending worthwhile?
Understandable disclosures and impact criteria. A suitable risk and liquidity profile. Independent review of fees and conflicts.
When should I choose a smaller option?
Compare investing and charitable giving as separate ways to pursue the objective.
Before you commit
Make one worthwhile next step.
Compare investing and charitable giving as separate ways to pursue the objective.
The fit criteria are our editorial judgment. Guide prices and itineraries are planning estimates, not live quotes. Verify the current offer, access and full price with each provider. Illustrative imagery sets the mood and does not establish a venue’s current appearance.