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
- 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)