![Article title “A grant isn’t always the right tool: The case for program-related investments” by Karen Anderson and Michael Brown.](https://socialfinance.org/wp-content/uploads/2026/11/WEBSITE-News-Insight-Thumbnail-7-1000x673.png")
The Social Finance Institute
Key Takeaway
When a loan can achieve the same result as a grant without harming the recipient, a program-related investment lets a foundation recycle its capital and fund more impact over time.
In this op-ed, Karen Anderson and Maoz (Michael) Brown argue that foundations should consider program-related investments (PRIs), such as low-interest loans and equity, alongside traditional grants, yet fewer than 1% of private foundations make them in a given year. Drawing on interviews with 36 recent PRI adopters, they find that PRIs are less burdensome than commonly assumed, and that difficulty depends on factors foundations control: deal complexity, execution capacity, and internal alignment. Because repaid capital can be redeployed, a PRI can deliver comparable impact to a grant while funding more work over time. In their model, a foundation directing a fifth of its payout to PRIs deploys roughly $20M more over 20 years than a grants-only peer.
Related Insight
![Three translucent overlapping circles in red, blue, and green are displayed on a pale background, creating blended color areas where they intersect.](https://socialfinance.org/wp-content/uploads/2026/03/Untitled-design-19.png")
Demystifying Program-Related Investing: Lessons from Recent Adopters
Demystifying Program-Related Investing: Lessons from Recent Adopters is produced through a partnership between the Social Finance Institute, Wharton Impact at the University of Pennsylvania’s Wharton School of Business, and the Center for High Impact Philanthropy…