What is venture philanthropy?
Look up the term “venture philanthropy” and you’ll find various meanings. I like the simplicity of defining venture philanthropy as “the application or redirection of principles of traditional venture capital (VC) financing to achieve philanthropic endeavors.”
Venture philanthropists operate through foundations, education capital funds and private firms that give grants and other capital to social entrepreneurs and nonprofits. The investment goals of venture philanthropy focus on portfolio organizations’ social and environmental impact in addition to financial metrics.
Significantly, venture philanthropy grants extend over multiple years, much longer than the one-year grants of most charitable giving. In addition to this more prolonged financial support, venture philanthropists often tend to get more directly involved in guiding the operations of their portfolio enterprises. This high-engagement, multiyear support is designed to help build the capacity and impact effectiveness of the social enterprises and nonprofits in which they invest.
Full story: 5 Reasons To Focus On Venture Philanthropy In 2024
