AJL Foundation believes that system change requires bold, creative, nontraditional funding responses and one of the ways we do that is through program-related investments (PRIs). PRIs are a type of mission or social investment that foundations make in order to achieve philanthropic goals and they enable AJL to invest directly in both nonprofit and for-profit organizations that support families and youth in a variety of ways and generate below-market returns. The funds are then returned and recycled back out into the community.

To date, most of AJL’s PRIs take the form of low/no-interest loans, but we’ve also made an equity investment, a guarantee and a pay-for-success security. More information on our active and closed PRIs can be found here.

In an effort to align PRIs with AJL’s strategic priorities, abide by IRS regulations and maximize community impact, AJL has created a Programmatic Investment Policy Statement (PIPS) and PRI process document that outlines the due diligence criteria, PRI rating system and glossary. In line with our commitment to transparency and accountability, we are sharing these documents publicly to try to demystify the decision-making process and contribute our learnings to the field.

AJL is dedicating up to 10% of our portfolio - approximately $1.5 million - to PRIs at or below market interest rates and flexible terms.  If your organization is interested in discussing a PRI opportunity, please reach out to Alece Montez at amontez@ajlfoundation.org.