Venture philanthropy is an active approach to philanthropy, which involves giving skills as well as money. It uses the principles of venture capital, with the investee organisation receiving management support, specialist expertise and financial resources. The aim is for a social, rather than financial, return.
Most venture philanthropy organisations work closely with the charities or social enterprises they invest in for a defined period of time. Clear targets will be set, and most commonly the impact of the charity will be measured. The ultimate aim is for the charity or social enterprise to greatly increase its social impact.
Impetus Trust is the pioneer of venture philanthropy in the UK. Read about the Impetus model of venture philanthropy.
The leading European member association, the European Venture Philanthropy Association (EVPA) lists the four main characteristics of venture philanthropy as:
- A highly-engaged partnership between the charity and venture philanthropy organisation to achieve agreed outcomes
- Using a variety of financial tools (not only grants), depending on which are most appropriate to the charity's needs
- Building the capacity of the charity
- Maximising donors' social return on investment.
Picture right: Impetus social enterprise Blue Sky Development & Regeneration.
Every individual has both a responsibility and a capability to improve society. The responsibility is to the next generation and the capability comes from volunteering, providing capital and joining organisations where you have a passion to make a difference.
Doug Miller
Impetus founding trustee