Mission-related investing, broadly defined, encompasses any investment activity which seeks to generate a positive social or environmental impact in addition to providing a financial return.
“Mission investments” are investments made by foundations and other mission-based organizations to further their philanthropic goals. Mission investments cover two distinct categories of investments: Market-rate mission investments, also known as “mission-related investments,” are part of a foundation’s endowment and have a positive social impact while contributing to the foundation’s long-term financial stability and growth. Below-market mission investments, also known as “program-related investments,” are designed to achieve specific program objectives while they may earn a below-market financial return.
Mission-related investments (MRIs) are those that are made with a clear intention to meaningfully contribute to the accomplishment of the Foundation’s philanthropic mission and the success of our programmatic strategies, and to achieve a financial return commensurate with the risk and the social impact to be achieved. Unlike PRIs, MRIs are not statutorily prescribed and have no consensus definition. The jeopardizing investment rules and other legal requirements, such as state prudent investor rules, do apply to MRIs.
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