+ What is 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.
+ What are Program-Related Investments?
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 ultimately generate sufficient cash flow to repay the loan or provide a return on equity. Most of our PRIs do not exceed $100,000.
+ What is the deadline for submitting inquiries?
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.
+ What are the interest rates?
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.
+ What is the typical length of a 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.
+ How much is a program-related investment from the Dakota Foundation?
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.
+ Do you have an application form?
Yes, click here to learn more.
+ Where are you most active?
Colorado, North Dakota, North Carolina, Dallas, Texas, and Santa Fe, New Mexico.