Program-related investments are loans and equity investments that foundations provide at favorable rates to support activities that have a direct charitable purpose. Frequently referred to as PRIs, they expand the resources from foundations – and, in the right circumstances, can be even more effective than grants. Any foundation can make PRIs, yet most shy away from them. In this guide, experienced PRI makers walk through the process, offering practical advice at each step – from explaining the concept to your board to structuring and closing your first deal.

By Neil Carson, GrantCraft Series (New York, NY: The Ford Foundation, 2006). Find it at GrantCraft.