Program Related Investing
Great Saves Through Innovative, No-Interest Loans
How could giving money to a good cause ever be considered a philanthropic activity if you told your grantee that you wanted it back in a few months?
Believe it or not, there are many nonprofits out there that would jump at the opportunity. Program Related Investing (PRI) is a relatively new practice in philanthropy, and the Knott Foundation is leading the charge in the Baltimore area with its cash flow loan program.
Consider this scenario: Your shelter for homeless individuals was promised a city grant for $25,000 towards the salary of a key employee. However, there’s been a delay in the processing of your grant, and the money won’t arrive for another six months. You think you may have no choice but to terminate your employee, or ask her to become a volunteer for the next six months – neither is an attractive option, is it?
That’s where the Knott Foundation comes in with its cash flow loan program. We will make no-interest loans based on delayed receivables such as grant agreements or other reimbursable expenses, with a small processing fee of between 0.75 and 2% depending on the length of the loan. The program provides much-needed, quick cash that helps our grantees continue serving their communities without disruption.
Some of our “Great Saves” have included the Southeast Youth Academy, the Community Mediation Program, and Children’s Chorus of Maryland.