Consider It an Investment

November 9, 2009, The Wall Street Journal — With fewer resources to go around, philanthropists are using a host of methods to stretch their charitable dollars.

Instead of simply giving money away to a cause, groups and individuals are plowing their funds into financial vehicles—known as program-related investments—that let their money grow while it does good. So, rather than make a one-time gift of $1,000, they might invest in a project that generates revenue, such as a loan to an entrepreneur in the developing world or real estate that rents to nonprofits. The returns can then go to other causes.