For 18 years, the Dakota Foundation has sought to combine business discipline and charitable intentions to solve social problems. With grants and program-related investments (PRIs) we take an investment approach: we want the total social return of our outlays to be higher than the cost.
In doing so, we hope to foster organizations and activities that are both economically and environmentally sustainable. We help people invest in themselves to improve their economic condition and those of their families and communities. This mission stems from our values: self-reliance, personal responsibility, human dignity, equal opportunity, and the preservation of life and beauty on our earth.
We at the Dakota Foundation understand the special
position that family foundations like ours occupy in the
non-profit world. Each day we are privileged to encounter
dedicated individuals working to make the world a better
place for ours and future generations. We are pleased to
support their efforts.
- Bart Holaday
Founder and President, The Dakota Foundation
The Dakota Foundation is a non-profit organization founded in 1997 by A. Bart Holaday to focus his philanthropic efforts on initiatives that foster social entrepreneurship.
To pursue its goals, The Dakota Foundation makes program-related investments (PRIs), a type of low-interest financing. PRIs are most commonly made as below-market rate loans or, occasionally, equity interest, and require that the agency receiving the PRI generate sufficient cash flow ultimately to repay the loan or provide a return on the equity. Most of our PRIs do not exceed $100,000.
The Dakota Foundation does not have deadlines. Each inquiry receives an initial screening and preliminary review. Proposals that make it past preliminary review will receive thorough consideration, and a final decision will be made in a timely fashion. When we do have to say no to a funding request, our knowledge, networking and other non-dollar assets may help.
Interest rates on PRIs may vary from zero percent to just below the prevailing market rate. The IRS requires rates to be below-market on a risk-adjusted basis. Typically, rates are calibrated to each partner's capacity and to the project's ability to generate revenues. Potential interest income from our PRI is not a significant reason for making the PRI.
Our PRIs are made for anywhere from five to seven years. We try to be flexible in this regard and to meet the needs of the program or agency receiving the PRI.
Historically, most of our PRIs range between $50,000 and $100,000. The size of a loan is influenced by the needs of the project and the ability of the non-profit to repay.
Our guidelines (from the top menu above) contains a submission form for applying for a PRI.