Kresge Foundation

The Kresge Foundation is a prominent private foundation based in Troy, Michigan, USA, not Germany as initially suggested. It operates as both a significant grantmaker and a strategic social investor, deploying capital to advance its mission across critical areas including arts and culture, education, environment, health, human services, and community development. The foundation is committed to building equity and opportunity, particularly for low-income individuals and communities of color, by addressing systemic challenges through its diverse funding mechanisms.

Kresge's social investing arm utilizes various financial tools, notably Program-Related Investments (PRIs) and Mission-Related Investments (MRIs). PRIs are typically low-interest loans, loan guarantees, or equity investments made directly to non-profit organizations and social enterprises that align with the foundation's philanthropic goals. These investments are designed to be catalytic, often leveraging additional capital from other sources to achieve greater impact. MRIs, on the other hand, are investments from the foundation's endowment that seek both financial returns and measurable social impact, demonstrating a holistic approach to capital deployment.

The foundation has a substantial track record in social investing, having committed over $500 million in social investments since 2008. This commitment underscores its belief in using capital beyond traditional grants to foster sustainable change. In 2022 alone, Kresge committed $32.9 million in social investments, alongside $187.9 million in grants, showcasing the scale and breadth of its financial support. These investments often target initiatives such as affordable housing, community development financial institutions (CDFIs), and projects that promote economic mobility and environmental resilience.

Kresge's investment philosophy emphasizes long-term impact and systemic change. By providing flexible capital, the foundation aims to strengthen organizations and initiatives that are vital to community well-being and equitable development. Their strategic use of both grants and investments positions them as a powerful force in addressing complex societal challenges, striving to create more just and vibrant communities across the United States.