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Economics of PRIs for private foundations


Significant multi-generational economic benefit


By recycling grant money, PRIs have the potential to significantly increase a foundation’s charitable impact
  • Multiplier effect allows more distributions without eroding endowment
  • Stay relevant for decades despite distributing at least 5% every year
PRIs are not assets
  • Since they do not factor into the minimum distribution, they do not affect liquidity 
  • Asset base only rises when there are realized positive returns
  • They do not factor into fiduciary/“prudent investor” concerns (risk, diversification, illiquidity)
Any positive realized returns have “alpha” impact on portfolio

The impact on long term distributions

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The long term portfolio impact

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