In 2011, the Dunham Fund Board of Advisors awarded the first two of what they hoped to be many Dunham Fund Program Related Investments. Like grants, foundations use program-related investments (PRls) to support charitable activities. Unlike grants, PRIs take the form of investments, usually requiring the return of capital within an established time frame.
The Dunham Fund made its first two Program Related Investments in Joseph Corporation and the Paramount Theatre in 2011:
Dunham Fund Joseph Corporation Home Rehab and Refill Program/$500,000 first installment of a two-year $1,000,000 Program Related Investment ($500,000 in 2011; $500,000 in 2012)
On December 1, 2011, the Dunham Fund made a two-year, interest-free, $1 million program related investment in the Joseph Corporation to create the Dunham Fund Home Rehab and Refill Program, a revolving loan fund to purchase, rehab and resell ten to fifteen unoccupied and distressed homes a year ($1,150,000 projected total purchase price annually) on the near east side of Aurora, an area which has been identified as a "Neighborhood Revitalization Strategy Area" (NRSA) by the City of Aurora. The goal of the program is to eliminate as many as half of the vacant housing units in the NRSA, to increase the home ownership rate by 1% in two years and 3% in five years by providing the opportunity for home ownership to more than 100 low-income families over the next five to ten years, and ultimately to revitalize and beautify the declining neighborhoods in the NRSA.
Paramount Theatre In-House Broadway Series Productions/$350,000
The Dunham Fund made a $350,000 interest-free program related investment in the Paramount Theatre to provide the start-up cost to improve the infrastructure and to purchase the capital equipment, sound and lighting technology necessary to upgrade the theatre to produce its own four-show, in-house Broadway Series for the 2011-2012 season and beyond. Purchase of the equipment versus rental will save the theatre more than $250,000 in rental expense in just a three-year period. This start-up cost is in addition to the approximately $2.6M the theatre must invest each season to produce the shows, including royalties, actor salaries, set construction, costuming, directing, and marketing.