While most foundations make grants to support their programmatic interests, some funders also use alternative forms of financing to supply capital to the nonprofit sector. Taking the form of loans, loan guarantees, and other investments made for charitable purposes, program-related investments (PRIs) are commonly used to support community revitalization, low-income housing, microenterprise development, and also historic preservation, human services, education, church renovations, and many other types of projects.

With the Foundation Center's new publication, The PRI Directory: Charitable Loans and Other Program-Related Investments by Foundations, fundraisers and researchers have a comprehensive and up-to-date resource that measures the scope of this important means of nonprofit support and provides a wealth of data on foundations and their most recent PRIs. In addition to examining the latest PRI trends, the volume profiles 192 of the top PRI providers and includes 800 individual PRI records totaling over $564 million.

Directory entries include vital information on foundation PRI interests; contact names, addresses, and telephone numbers; types of PRI support provided; and a listing of actual PRIs made between 1997 and 2000, including recipient name, type of financial vehicle (loan, loan guarantee, etc.), purpose of financing, and terms of the loan if known. Seven indexes are included to research PRIs by subject, types of support, recipient name, recipient location, foundation name, foundation location, and names of foundation trustees, officers and donors. In addition, The PRI Directory includes tips on how to seek out and manage PRIs.

PRI distributions from all U.S. foundations topped $266 million in 1999, up from $147 million in 1997. Although the level of financing has soared, the number of "active" funders has remained fairly steady since the mid-1990s. Still, several major new PRI providers have emerged recently, while the programs of many experienced funders have expanded. Key findings:

5-Year Growth Trends: Based on a sample of 133 leading PRI providers in 1998-99, the two-year value of new PRI authorizations grew 141 percent to $427 million since 1993-1994, while the number of PRIs increased by half to 581.

Shifts in PRI Financing for Community Development and Housing: Although these fields together attracted the greatest amount in loans and investments, the proportion of support earmarked for housing has declined. The share of PRI financing for community/economic development remained at or above 3/10 of total PRIs throughout the 1990s, while the share for housing accounted for less than 9% of PRI dollars in 1998-1999-down from 18% in 1993-1994.

PRI Financing for Educational Institutions Up Dramatically: Nearly 15% of PRI dollars supported education in 1998-1999, compared to less than 5% as recently as 1993-1994. Of the $50.4 million invested in education, approximately half provided loans for capital projects of higher education institutions or for student loans. PRI support rose sharply for elementary and secondary education as well, as the largest PRI provider for education, the New Jersey-based Prudential Foundation, provided 30 loans for charter schools, primarily in New Jersey.

PRIs Support Many Fields: The share of PRI support also increased in the late 1990s for health, arts, and the environment, while decreasing slightly for human services and church support.

Increasing Uses for PRIs: Approximately half of PRI dollars in the 1998-1999 sample of 133 foundations were for capital projects - building, renovation, and equipment (36%) and other capital projects (15%). The share of PRI dollars for non-capital special projects and programs jumped to one-third since the mid-1990s, up from only 16% earlier in the decade. PRIs increased modestly in the same time period for student aid and research.

Orders for The PRI Directory may be charged with VISA, MasterCard or AMEX by calling the Foundation Center's toll-free number, 1-800-424-9836; by faxing your request (with return address and credit card number) to 212-807-3677; by placing an order On-line; or by mailing orders to the Foundation Center, Dept. NO8, 79 Fifth Avenue, New York, NY 10003-3076. Prepayment of $75.00 is required. Please add $5.50 shipping and handling for the first copy ordered, and $2.50 for each additional copy. Make checks payable to the Foundation Center. Call 1-800-424-9836 for information on multiple copy discounts.

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