The article describes the U.S. Treasury's new guidance for program-related investments that allow foundations to advance their purposes and serve the public through investment in innovative, for-profit enterprise.

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"Investments must meet two main criteria to qualify as a PRI according to existing Treasury rules. First, the primary purpose must be to carry out the foundation's charitable purpose. This means that foundations must monitor their investment targets - much as they would a recipient of a grant - to ensure that the company remains focused on research and development that is relevant to the charity's mission. Second, 'no significant purpose' of the investment may be to generate income or capital appreciation. In practice, this generally means that the investment must be on terms that would not be attractive to an investor purely motivated by profit."

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