Venture Philanthropy

Extracted Attributes

• Originator

  John D. Rockefeller III

• Year Coined

  1969

• Core Methodology

  Venture capital finance and business management techniques

• Primary Objective

  Achieving philanthropic goals and social outcomes

• Key Characteristics

  High investor oversight, capacity building, risk-taking, and performance measurement

• Typical Funding Duration

  5-10 years

Timeline

• John D. Rockefeller III first uses the term 'venture philanthropy' to describe an imaginative and risk-taking approach to charitable work. (Source: Wikipedia)

  1969-01-01

• The Chicago Public Education Fund is established as the only venture philanthropy in the U.S. focused on a single urban school district. (Source: Wikipedia)

  2000-01-01

• Venture philanthropy is discussed on the All-In Podcast as a potential model for understanding OpenAI's convoluted non-profit to for-profit structure. (Source: All-In Podcast Episode 169)

  2024-03-01

Venture philanthropy

Venture philanthropy is a type of impact investment that takes concepts and techniques from venture capital finance and business management and applies them to achieving philanthropic goals. The term was first used in 1969 by John D. Rockefeller III to describe an imaginative and risk-taking approach to philanthropy that may be undertaken by charitable organizations.

Web Search Results

• Venture philanthropy - Wikipedia

  Venture philanthropy is a type of impact investment that takes concepts and techniques from venture capital finance and business management and applies them to achieving philanthropic goals. The term was first used in 1969 by John D. Rockefeller III to describe an imaginative and risk-taking approach to philanthropy that may be undertaken by charitable organizations. ## Examples [edit] [...] In the year 2000, the Chicago Public Education Fund became the only venture philanthropy in the United States focused on a single urban school district, which served as a catalyst and strategic investment partner for Mayor Richard M. Daley and four Chicago Public Schools (CPS) administrations. Other examples of this type of venture philanthropy are New Profit Inc., the Robin Hood Foundation, Tipping Point Community, Cure Alzheimer's Fund"), The Redstone Acceleration & Innovation Network (TRAIN)

• Venture Philanthropy: What it Means, How it Works, Origins

  Venture philanthropy is the application or redirection of principles of traditional venture capital (VC) financing to achieve philanthropic endeavors. Often, it is exercised in the context of charitable startups, green companies, or B corporations, as the venture capitalists offering funding to these types of firms will have the greatest breadth of experience in these areas. ### Key Takeaways ## Understanding Venture Philanthropy [...] Venture philanthropy applies most of the same principles of venture capital funding to invest in start-up, growth, or risk-taking social ventures. It is not explicitly interested in profit but rather in making investments that promote some sort of social good, like socially responsible investments (SRI) to meet environmental, social, and governance (ESG) criteria. It is an umbrella term that can be used to refer shorthand to many different kinds of philanthropic investing, but notably, it is [...] Venture philanthropy is characterized by a high degree of investor oversight and engagement, in addition to financing plans which are tailored very specifically to a company or organization's capacity-building needs. Oftentimes, major donors will sit on the boards of organizations they support and they generally have intimate involvement in operational or managerial aspects of the business. ### Important Venture philanthropy ventures generally focus on building capital and scale

• Venture Philanthropy vs. Traditional Giving: A Case for Direct Social ...

  Venture philanthropy represents a paradigm shift in how charitable giving is approached. Unlike traditional philanthropy, it integrates business principles, focusing on long-term engagement and measurable outcomes. Donors act as strategic partners, providing not only funding but also expertise, mentorship, and access to networks. This approach emphasizes capacity building, ensuring recipient organizations are equipped to scale their impact sustainably. [...] A hallmark of venture philanthropy is its commitment to performance measurement and strategic partnerships. Donors actively participate in setting objectives, monitoring progress, and refining strategies. This model not only enhances the effectiveness of philanthropic investments but also addresses root causes rather than symptoms, creating systemic change. For example, a venture philanthropist might fund leadership training or introduce advanced technology to improve a nonprofit’s efficiency [...] ## Building Capacity for Long-term Success ### Organizational Development in Nonprofits A cornerstone of venture philanthropy is its focus on strengthening organizational infrastructure. This includes leadership development, process improvement, and the adoption of advanced technologies. For example, a nonprofit addressing education inequality might receive funding to develop data-driven teaching methods or enhance staff training programs.

• What Is Venture Philanthropy? A New Approach to Scaling Social ...

  No. Venture philanthropy directs grants to nonprofit organizations where financial returns are impossible by design. Success is measured entirely through social outcomes—lives improved, problems solved, systems shifted. This distinguishes venture philanthropy from impact investing, which targets for-profit companies or revenue-generating social enterprises that can repay investors with interest or equity appreciation. Q3. What types of organizations benefit most from venture philanthropy? [...] Venture philanthropy provides multi-year funding (typically 5–10 years) paired with intensive operational support like strategic planning, technology implementation, and measurement systems. Traditional grants run 1–3 years with minimal engagement beyond compliance reporting. The longer commitment and hands-on partnership enable organizations to build sustainable capacity rather than remaining in perpetual fundraising mode. [...] This network approach acknowledges that complex social problems require multi-organization solutions. Rather than treating grantees as isolated competitors, venture philanthropy builds collaborative infrastructure where organizations learn from each other's successes and failures. Example: The European Venture Philanthropy Association convenes nearly 300 member organizations, facilitating knowledge exchange and coordinated funding strategies that amplify individual investments.

• Venture Philanthropy Explained: Strategies for High-Impact Giving ...

  Enter venture philanthropy, a strategic approach to charitable giving that applies the principles of venture capital and social impact assessment. [...] As described in the Stanford Social Innovation Review, “Venture philanthropy applies the analytical rigor of the for-profit world… and has become increasingly popular… as traditional funding sources have shrunk, and donors demand more impact from their giving.” This movement parallels the rise in social impact considerations in for-profit businesses, too. Put more simply, donors increasingly want proof that their money is well spent and that life will authentically improve for others — [...] Our Make It Better Foundation’s venture philanthropy lens uses the following criteria — reflecting what matters most to the experts we work with and our data-driven audience: Every nonprofit that we select, support, and promote has been carefully vetted through a Venture Philanthropy lens. Even more significantly, our Academy of Judges, who select our annual Philanthropy Awards — highly qualified philanthropy experts — use this rubric too.