Venture Philanthropy
The term is derived from the English " Venture Philanthropy ". It describes an approach to philanthropy that is strongly oriented towards corporate principles. The term was first used in 1969 by John D. Rockefeller III . Venture philanthropy uses private equity or risk capital to support social, ecological or societal projects. Unlike foundations or donors, venture philanthropy can use various forms of financing, such as loans and equity. Recipients of the funds provided are, for example, non-profit organizations and social enterprises . In addition to financial commitment, representatives of Venture Philanthropy usually also support the funded projects with mentoring , advice and network contacts (three-pillar model). You use methods from venture capital and from business to help professionalize the respective organization over a longer period of time and thus make its work as effective as possible.
Unlike investors in classic venture capital, venture philanthropists do not primarily want to generate profits with their investments. Rather, they are interested in promoting permanent and long-term changes in the interests of sustainability .
Venture philanthropy first gained a foothold in the USA in the 1990s, with the Robin Hood Foundation, founded in 1988, being a key role model . In Europe, among others, CAN (1998), Venturesome (2002) and Impetus Trust (2003) in Great Britain, the Noaber Group (2000) in the Netherlands, Oltre Venture (2002) in Italy, the Canopus Foundation (1997) and BonVenture ( 2003) in Germany and the Good Deed Foundation (2003) in Estonia. The European Venture Philanthropy Association (EVPA) has existed since 2004 and currently has around 100 members across Europe.
literature
- Leborgne-Bonassié, Marie; Coletti, Michele; Sansone, Giuliano. "What do venture philanthropy organizations seek in social enterprises?". BUSINESS STRATEGY & DEVELOPMENT . 0 (0). doi: 10.1002 / bsd2.66. ISSN 2572-3170.
- Philipp Hoelscher / Thomas Ebermann / Andreas Schlüter (eds.): Venture Philanthropy in Theory and Practice , Lucius & Lucius, Stuttgart 2010, ISBN 978-3-8282-0506-2
Web links
- Fashionable empty phrase or innovative funding policy? - “Venture Philanthropy” offers new ideas for foundations, Die Stiftung, September 12, 2007
- Federal Network for Civic Engagement, Venture Philanthropy, April 16, 2009
- Venture Philanthropy takes off in Europe, Die Stiftung, issue 8/2008 (PDF file; 88 kB)
- Strategies for Foundations, EVPA, September 2012