The seeds of change are taking root in the nation’s Capital. This past month, the IRS released proposed regulations that would add nine new examples of investments which qualify as “program-related investments” (PRIs) for private foundations.

Having the ability to make PRIs is advantageous for private foundations, which are required to make “qualifying distributions” each year of at least 5% of their net assets. Although most private foundations satisfy this requirement by making grants, they are also allowed to count PRIs as qualifying distributions and thus have additional opportunities for return on investment – provided that the IRS will recognize their investments as “program-related.”