Program Related Investments: Process and Tools
Program Related Investment Process
This flow chart shows how our Foundation manages Program Related Investments (PRIs). There are four process phases: Pipeline Generation, Deal Analysis & Decision, Implementation, and Monitoring & Reporting. Each phase identifies critical path action items and task ownership.
Program Related Investment Process
Program Related Investment Tools
Raúl Pomares together with Doug Bauer of Rockefeller Philanthropy Advisors and the KL Felicitas Foundation developed tools for supporting due diligence for each investment category. A PDF version of the PRI Evaluator tool can be downloaded at the end of this page. We encourage other social investors to use this tool. If you are interested in receiving the source file, please contact info@klfelicitasfoundation.org.
The PRI Evaluator tool is designed to work in conjunction with a formal investment due diligence process. It allows a foundation to assess, document and define roles for evaluating any given investment opportunity in the areas of:
- Documentation of PRI status for IRS compliance
- Alignment with Program and/or Mission
- Investment structure, portfolio implications, and financial performance reporting
- Establishing Program 'Impact' criteria
Social investors may be as detailed as they like in documenting their responses. For examples of how we use the PRI Evaluator tool, please go to PRI Investment Section.
A scoring system is included for each question, allowing the social investor to establish a more objective framework for evaluating PRI investments. It is important to document a pass or fail scale for scoring results . We use a very simple scoring system of -1, 0, and +1 to document if a given investment is either compliant, neutral, or not compliant with the various guidelines and objectives as expressed in the questions of the Evaluator tool. If an investment is scoring -1, an explicit exception will have to be made before moving forward.
For effective use of the tools, it is important to have a defined mission and defined programs, a documented investment policy and portfolio objectives, an established investment due diligence process, and a commitment to Program Related Investments.
© Raúl Pomares. All rights reserved. The PRI Evaluator tool is not intended for commercial use. Users may utilize this tool only for personal and private use. Please review our Terms and Conditions before downloading.