Program Related Investment Policy

The Mary Reynolds Babcock Foundation uses Program-Related Investments (PRIs) to support charitable projects, with a focus on nonprofit organizations such as community development financial institutions (CDFIs). Introduced by the Ford Foundation in 1968 and formalized in the Tax Reform Act of 1969, PRIs are below-market investments aimed at advancing a foundation’s charitable objectives rather than generating income or property appreciation. Typically structured as loans, deposits, or equity investments, PRIs fund vital initiatives like housing production, microenterprise lending, and nonprofit facility renovations, driving meaningful community impact while aligning with the Foundation’s mission.