Venture philanthropy

Venture philanthropy

Venture philanthropy (VP) is a modern and relatively young form of philanthropy. It is a new way of investing in social ventures with a social purpose to enable them to create a larger and more sustainable social impact. VP is also considered as the new model for ‘Grant making’: the making of a gift’. The biggest difference with a traditional gift, pure charity without the desire for anything in return, being that that VP requires compensation in the form of a social or financial return.

Distinction with traditional philanthropy

VP differs from traditional philanthropy by a combination of:

  • A larger involvement of the venture philanthropist in the social venture
  • Attention for organizational development
  • Custom made financing
  • Non-financial support
  • Granting access to complementary networks.
  • Multi-annual cooperation
  • Impact management