In the News

Consider It an Investment

Published in the Wall Street Journal: November 9, 2009
By Shelly Banjo

With fewer resources to go around, philanthropists are using a host of methods to stretch their charitable dollars.

Instead of simply giving money away to a cause, groups and individuals are plowing their funds into financial vehicles—known as program-related investments—that let their money grow while it does good. So, rather than make a one-time gift of $1,000, they might invest in a project that generates revenue, such as a loan to an entrepreneur in the developing world or real estate that rents to nonprofits. The returns can then go to other causes...

To be sure, these charitable options aren't new, but for a long time only big institutions like the Ford Foundation pursued them. Given the lingering economic slump, though, program-related investments are getting attention from a wider array of potential donors—including smaller family foundations, investors with donor-advised funds and everyday individual givers. And lots of options are springing up to help donors along, from specialized donor-advised funds to opportunities to invest in microfinance and community development.

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Read Investing for Social Gain: Reflections on Two Decades of Program-Related Investments (PDF) to learn more about our history with this innovative approach.

Learn more about the foundation's program-related investments and other types of support.