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A Venture Philanthropy approach

 

A Venture Capital approach can just as easily be applied to the non-profit sector as it has been to the private sector, as has been successfully demonstrated for several years now in the United Kingdom and the US.
‘Venture Philanthropy’ encourages a donor to change his/her approach to project funding from that of a donor to that of an investor.

 

  • Such donor-investors are not satisfied with merely providing funds, they wish to become actively involved in the project alongside the project leader.
  • Such donors develop active partnerships and no longer want to be considered as simply a fund source.
  • Such donors are no longer interested in just funding projects, but wish to help develop entrepreneurial skills among project leaders.

 

At PhiTrust, we look at the non-profit sector as we would a viable economic business whose return is social, cultural and/or environmental rather than purely monetary. This explains our detailed analysis of the non-profit’s team and management. A social venture has the same expectations of ‘return on investment’, even if the means and goals are different:

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