Introduction to Program-Related Investments (“PRIs”)

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Although PRIs are relatively new to The Gambrell Foundation, The Ford foundation originated the concept in 1968. A PRI is money that leaves the foundation’s corpus, counting towards a private foundation’s 5% annual payout requirement in the year made, and goes into the hands of a non-profit or for-profit entity. The primary distinction between a PRI and a grant is that a PRI comes back to the foundation after a predetermined term, increasing a private foundation’s annual payout requirement in the year reimbursed. In other words, a PRI is a recyclable, interest-bearing grant.

The IRS requires that an investment pass the following three basic tests in order to be classified as a PRI:

  1. The primary purpose of the investment is to further the foundation’s charitable mission.
  2. Income generation and capital appreciation are not a meaningful intention of the investment.
    • In other words, would an investor solely engaged in investing for profit make the investment on the same terms? When the answer is no, it means the foundation is accepting higher risk and lower return, thus satisfying this requirement.
  3. The investment can in no way participate in political activities, such as lobbying, campaigning, etc.

Creating, executing and monitoring a PRI requires a team approach comprised of a diverse set of skills, including programmatic, financial and legal. PRIs are customizable and can take various forms, including but not limited to:

  • Interest free or below market rate loan to a non-profit
  • Purchase of promissory note of a non-profit
  • Low interest rate deposit with a bank or other financial institution “linked” to lending for a charitable purpose (often housing or economic development)
  • Loan guarantee or letter of credit to enhance a charitable organization’s creditworthiness in a third-party loan transaction
  • Equity investment in a for-profit entity

United Neighborhoods Partnership

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United Way of Central Carolinas is honored to partner with The Gambrell Foundation on United Neighborhoods, a comprehensive initiative launched by this agency that supports greater economic mobility for residents of Charlotte’s most under-resourced neighborhoods.

The Gambrell Foundation funding – $100,000 per year for five years – serves as a foundation for sustaining United Way’s multi-year commitment to two neighborhoods, Grier Heights and Renaissance West.

With support from The Gambrell Foundation, United Way funds two community quarterback organizations that lead revitalization efforts: CrossRoads Corporation for Affordable Housing and Community Development in Grier Heights and Renaissance West Community Initiative in Renaissance West. United Way’s funding ensures each organization can attract and retain the talent needed to remain focused on resident engagement and neighborhood revitalization.

United Way also funds a community grants pool. Residents identify desired neighborhood services at community meetings, and we work with the community quarterbacks to identify and invite service providers to submit grants.

United Way convenes residents and stakeholders to serve on grant review panels that make funding recommendations. Through this grant process, neighborhood residents have the opportunity to access vital services that promote the health, education and financial stability of children and families – all offered in their own neighborhoods.

United Way benefits from The Gambrell Foundation’s broad commitment to advancing economic mobility and racial equity in Charlotte-Mecklenburg. Most notably, United Way led an effort to secure funding to strengthen our community’s capacity to understand whether the work being done by our nonprofit agencies is positively impacting children and families and laying the foundation for greater economic mobility.

With support from The Duke Endowment, Foundation for the Carolinas and Wells Fargo, United Way is funding two graduate fellowships at University of North Carolina-Charlotte. Over the course of the 2019-2020 academic year, these two graduate students will work directly with CrossRoads Corporation and a group of the agencies funded by the community grants process.

The graduate students will help develop a strategy for evaluating the holistic impact of the agencies’ shared efforts, particularly the efforts to promote early care and education of children from birth to age eight and their families.

A third UNC-Charlotte student, funded by a grant from The Gambrell Foundation to the Urban Institute, will expand upon the work of these graduate fellows by analyzing data collected by all nonprofit partners working in Grier Heights. The long-term goal is to equip these nonprofits to entrust their data in an integrated database, allowing for robust, long-term evaluation of our efforts to promote economic mobility.

United Way proudly serves as a funder, thought leader, and community convener to advance economic mobility in Charlotte and the surrounding community. We cannot do our work alone and celebrate our partnership with The Gambrell Foundation.

Central Piedmont Gambrell Foundation Opportunity Scholar – Kavyn Cordon

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Kavyn Cordon, Gambrell Foundation Opportunity Scholar

Gambrell Foundation Opportunity Scholar Kavyn Cordon has had a passion for creating food and cooking for as long as he can remember. The North Mecklenburg High School graduate took a number of culinary classes in high school, knowing it was a career path he wanted to pursue after graduation.

But as commencement drew closer, and the prospect of attending Johnson & Wales remained out of reach due to its high cost, Kavyn turned his attention to Central Piedmont and its nationally-accredited culinary arts program.

The more he learned about Central Piedmont, the more attractive it became to the Huntersville, N.C., resident. Kavyn especially liked the college’s affordability and accessibility.

So, he decided to discuss his options at Central Piedmont with his high school guidance counselor. They recommended he apply for the college’s Opportunity Scholars program. With this in mind, Kavyn gathered the required letters of recommendation, worked to maintain his GPA, and preserve his school performance. His hard work paid off – he met the program’s requirements and was named a Gambrell Foundation Opportunity Scholar in spring 2019.

The recognition meant there would be no down time for Kavyn after high school graduation. In mid-June he began Central Piedmont’s Summer Bridge Program, an initiative that strives to make high school graduates more aware of what is expected of them in college before the start of the semester; participation in the program is a component of his scholarship.

Walking around Central Campus during Summer Bridge, Kavyn soaked in the close proximity to uptown Charlotte, enjoyed the campus’s vibrant atmosphere, and reveled in spending time with the many friends he was making as a result of being named a Gambrell Foundation Opportunity Scholar.

“I cannot thank The Gambrell Foundation enough for their support of the Opportunity Scholarship program at Central Piedmont,” explains Kavyn. “I am appreciative of the generosity they’ve shown me and my peers, and I hope I make them proud by using my culinary gifts to make a difference both in my personal life and as a professional in the kitchen.”

Kavyn is currently exploring apprenticeship opportunities that are available through the college’s culinary arts program. He aspires to join the workforce after earning his associate degree in culinary arts from Central Piedmont in spring 2021. What the future will look like post-commencement is still unclear – even to Kavyn.

“I would love to work in a restaurant setting, but I haven’t ruled out the food truck industry either,” said Kavyn. “All I know is I want to jump right into the workforce after graduation. I can’t wait to make my mark on Charlotte’s culinary scene and am hopeful about what’s still to come.”