New IRS Regulations Encourage Use of Program-Related Investments

Each year, more than 87,000 U.S. foundations make grants to help improve their communities, their nation and their world.

With more than $800 billion of foundation assets, these annual grants total more than $56 billion—doing a lot of good. Each year, however, nearly $750 billion remains in endowments—where it usually is invested for the single bottom line of financial gain.

Foundations traditionally have believed they must invest the bulk of their money to maximize financial return, with little regard to the impact of those investments on society or on a foundation’s unique mission.