Meaning and transaction use
An SEC filing identifies a foundation mission-investments portfolio containing mission-related investments, program-related investments and grants as distinct tools. [S1]
IRS guidance defines program-related investments through exempt-purpose primacy and states that income or appreciation cannot be a significant purpose. [S2]
Proposed control method: document MRI financial underwriting and mission thesis separately and avoid treating MRI and PRI classifications as interchangeable.
Worked example
Illustrative portfolio allocation only. Assume a 200.0 million investment portfolio and 30.0 million of investments that pass the approved MRI policy.
Scroll the table horizontally to view all columns.
| Measure | Calculation | Result |
|---|---|---|
| Investment portfolio | Given | 200.0m |
| Approved MRIs | Given | 30.0m |
| MRI allocation | 30.0 / 200.0 | 15.0% |
| Other portfolio assets | 200.0 - 30.0 | 170.0m |
The illustrative MRI allocation is 15.0% under the stated policy.
Proposed transaction review process
Set mission themes
Translate purpose into eligible outcomes and exclusions.
Retain investment tests
Apply return, risk, liquidity, valuation and diligence standards.
Assess alignment
Document intentionality, contribution and measurement.
Monitor both theses
Review financial performance and mission evidence separately.
Evidence checklist
Policy
Mission, mandate, eligibility and decision authority.
Investment
Financial case, risks, terms and portfolio fit.
Mission
Outcome thesis, baseline, indicators and data source.
Monitoring
Performance, impact evidence, incidents and classification review.
Decision framework
| Situation | Proposed action |
|---|---|
| Mission fit is weak | Exclude or reclassify under the policy. |
| Financial terms are inadequate | Decline under the investment mandate. |
| A PRI classification is proposed | Obtain specific tax and legal analysis. |
| Evidence deteriorates | Engage, remediate, divest or reclassify under policy. |
Common errors to check
- Calling every responsible investment an MRI.
- Treating MRI and PRI as synonyms.
- Ignoring financial underwriting.
- Reporting alignment without outcome evidence.
Build the mission-investment framework
Bring the mission, investment policy and measurement approach to an MRI review. Reconcile financial and mission objectives.
Discuss the transactionPrimary references and editorial scope
- SEC filing: Foundation mission-investments portfolio
Example distinction among mission-related investments, program-related investments and grants. Reference checked 17 September 2026. - IRS guidance: Program-related investments
Official United States criteria for program-related investments and examples. Reference checked 17 September 2026.
General investment education using public United States sources. Figures are hypothetical. Foundation status, governing documents, tax law and investment policy determine classification and permitted use.
General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.
