BLC Foundation Completes a Project-Related Investment with Beacon Interfaith Housing Collaborative

It’s been called the “future of philanthropy” by the president of the Minnesota Council of Foundations. Program Related Investments (PRIs) are below-market-rate investments designed to achieve charitable goals. PRIs count towards the U.S. tax law requirement that foundations pay out at least 5% of total assets each year for charitable or educational purposes, and unlike grants, foundations can recycle the dollars returned from successful PRIs for new investments.

The Bethlehem Foundation made its second PRI in January 2021 to Beacon Interfaith Housing Collaborative, providing $200,000 loan at the below-market 2% interest rate for for two years to support its mission to provide affordable housing in the Twin Cities. The loan was then renewed for two additional years at 3% interest. Beacon repaid the loan plus accrued interest on March 31, 2025.  
 
PRIs give the Bethlehem Foundation one more tool for supporting our community. Our grants are a fast, up-front means of helping new programs and initiatives get off the ground. PRIs, however, enable the foundation to support projects requiring more capital and a longer timeline. Beacon was one of several non-profit low-income housing developers that applied for the PRI dollars and was selected because of Bethlehem’s long-standing ties to the organization.
 
The Foundation is now accepting new proposals from non-profit housing developers, again with a focus on affordable housing. Stay tuned!