Program related investment–or PRI–is a potential source of funding for both nonprofits and for-profit social enterprises. A program related investment is an investment made by a tax-exempt private foundation that furthers the foundation’s charitable purpose while providing the foundation with a potential for financial return. The popularity of the program related investment is on the rise, but there are specific requirements that must be met to qualify.
Crowdfunding is a fantastic tool for generating early stage funds for all types of enterprises, including nonprofits, social enterprises, startups, and small businesses. There are many easy-to-use platforms and the legal requirements for launching a crowdfunding campaign are minimal (see this article on crowdfunding laws for nonprofits). But the benefits of crowdfunding go beyond simply raising funds. This article discusses several of the benefits of crowdfunding, including demonstrating proof of concept as a means to raise money from professional and institutional investors. Read more