Nonprofit Law Matters

Tag Archives: jeopardizing investment

Final PRI Regulations Released

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

The Treasury Department and Internal Revenue Service yesterday released final regulations on private foundation program-related investments. These regulations put in final form nine examples of investments that qualify as PRIs, initially proposed by the IRS in 2012. The White House has been enthusiastic about impact investing as a tool to further social and charitable objectives,… Continue Reading

IRS Clarifies Position on Private Foundation Mission-Related Investments Under Section 4944

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

In Notice 2015-62 issued on Tuesday, the IRS explained that a private foundation and its managers will not necessarily be penalized under Internal Revenue Code Section 4944 for a mission-related investment that does not qualify as a program-related investment (PRI) and that offers a lower return than more standard alternatives, since a foundation’s charitable purposes… Continue Reading

California May Introduce Social Impact Bonds

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

Social impact bonds (“SIBs”), sometimes referred to as “pay-for-success” financing, may arrive in California.  A bill introduced in the legislature, SB9, would establish the Office of Social Innovation and Entrepreneurship Development.  The purpose of this governor’s office would be “to establish partnerships with government agencies, private investors, nonprofit organizations, and for-profit service providers to facilitate the… Continue Reading