Program-Related Investments (PRIs)

Program-Related Investments (PRIs)

Overview: PRIs are repayable financial instruments inspired by the business sector that complement RAF's grant mechanism. These are structured loans that help organizations meet financial needs while building financial management capacity.

What Are PRIs?

Definition: Repayable financial instruments that function as loans, meaning invested funds are returned and recycled into new charitable endeavors.

Types of PRIs Available

• Bridge Loans: Cover programmatic expenses while awaiting EU grant reimbursement
• Working Capital Financing: Support operational cash flow needs
• Guarantees: Financial guarantees for partner initiatives

Strategic Purpose

• Complements RAF's grant mechanisms
• Increases impact of interventions
• Helps organizations build financial management capacity
• Adapts daily operations (cash flow management)
• Consolidates financial management capabilities

Geographic Scope

Romania only - Borrowers must be Romanian registered organizations.

Eligibility Criteria for PRIs

Organizational Requirements:

Romanian registered non-governmental charitable organization OR their social enterprises

Active in fields covered by RAF's strategic priorities (rural economy, technology & innovation, civil society & philanthropy)

Capable of furthering RAF's mission in their field

NOT individually owned business entities

Financial Requirements:

Demonstrate satisfactory income source over relevant period

Satisfy cash flow requirements

Probable agreements for partnership include:

- Projects with Romanian Government for EU structural funds
- Other governmental funds
- Foreign governmental organizations
- Income generated from economic activity run by the NGO

Demonstrate ability to use RAF's capital productively and repay

Restrictions:

Cannot use funds directly or indirectly for lobbying

Cannot use funds for political purposes

Selection Process

Invitation-Based: Borrowers are selected on an invitation-only basis. RAF program officers identify and approach prospective clients.

Contact Information

Address: Strada Gina Patrichi nr. 6 (fosta Orlando), 010449 București, România

Phone: +40 312 261 223

Fax: +40 312 261 230

Email: office@rafonline.org

Website: rafonline.org

How to Apply for Program-Related Investments (PRIs)

Important Note: PRIs are available by invitation only. RAF targets organizations based on their strategic priorities and financial capacity.

Selection and Application Process:

1. Identification Phase: RAF program officers identify organizations meeting PRI eligibility criteria

2. Invitation: RAF approaches qualified organizations with an invitation to apply for PRI financing

3. Financial Assessment: RAF evaluates:
- Income sources and stability
- Cash flow capacity
- Ability to repay the capital
- Productive use of funds

4. Proposal Development: Organizations work with RAF team to structure the PRI arrangement

5. Board Approval: PRI agreements are approved by the Board of Trustees (February, May, October)

Required Documentation (based on eligibility):

Proof of legal registration as NGO/charitable organization in Romania

Financial statements demonstrating satisfactory income sources

Cash flow projections

Detailed project/operational plan for use of capital

Evidence of capacity to repay

Documentation of funding source (EU grants, government funds, economic activity, etc.)

Organizational capacity documentation

Timeline:

Development and review: 3-4 months

Board approval: Three times per year (February, May, October)

No formal deadline - RAF works with potential partners on an ongoing basis.