The primary goal of a PRI is to achieve charitable benefit. The U.S. Internal Revenue Service allows a foundation to provide a PRI if the investment fulfills all three of the following criteria:
- The primary purpose is to accomplish one or more of the foundation’s exempt purposes
- Production of income or appreciation of property is not a significant purpose, and
- Influencing legislation or taking part in political campaigns on behalf of candidates is not a purpose.
The IRS provides additional guidance that further clarifies each of these criterion. We encourage you to consult with your legal counsel and review the IRS guidance and other resources about philanthropic PRIs before you submit an application.