MRIs are typically risk-adjusted or “prudent”, market-rate investments made from the foundation’s endowment — or what some affectionately call the other 95% — to advance a foundation’s mission across asset class and issue area. Unlike program-related investments (PRIs), MRIs are not an official IRS designation, and different funders utilize different names to refer to this kind of impact investment. PRIs are another tool foundations can use to align their assets in service of their mission. The key differentiator between MRIs and PRIs is that PRIs are essentially a program activity for tax and compliance purposes and must primarily be made to advance the charitable purpose of the foundation, and not to achieve an investment return.
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