Why Foundations Begin Making Program-Related Investments: Evidence from Recent Adopters
Year: 2025
Type: article
Abstract: Why do foundations begin making program-related investments (PRIs)? This article answers that question by drawing on interviews with professionals at 36 U.S. foundations that recently began implementing PRIs. While achieving positive impact is a central motivating factor, the study reveals it is uncommon for new PRI-makers to target impact uniquely tailored to PRIs, e.g., establishing a credit history for the recipient. Operational benefits, e.g., stretching the foundation’s financial resources, are more salient in the decision to undertake PRIs, even though such benefits are often marginal. This article also highlights a previously underexplored but apparently significant driver of PRI adoption: the influence of normative ideals of strategic philanthropy. The article concludes by reviewing practical implications for foundation professionals and consultants, emphasizing the need to clarify underlying motivations for PRI-making and ensure these rationales align with other strategic priorities.
Source: The Foundation Review
Author: Maoz (Michael) Brown
Institution: University of Pennsylvania
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4417134986
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