A Program Related Investment (PRI) is a special type of investment that the foundation can make to further its philanthropic goals. Through a PRI, foundations are allowed by the IRS to place assets from the endowment toward allowable mission-related activities. In 2016, The Alleghany Foundation made its first PRI through Virginia Community Capital (VCC) – a Community Development Financial Institution that, over the last decade, has supported housing and community development ventures, increased jobs, and built sustainable communities by offering flexible financial products and advisory services.
This PRI creates opportunities for VCC to support community growth by lending to for-profit and non-profit organizations interested in economic development in the Alleghany Highlands. The PRI is outside the foundation’s routine grantmaking. Through this tool, VCC can be a partner in lending with banks already serving businesses in the area to help move vital projects to completion.
Jane Henderson, CEO and President of VCC says, “VCC is very pleased to forge the significant partnership with The Alleghany Foundation—an innovative and forward-thinking philanthropic partner. VCC’s mission aligns well with the foundation’s desire to further community development and job creation projects in the Alleghany Highlands region.”