Venture philanthropy is an approach to charitable giving that applies venture capital principles, such as long-term investment and tailored development support, to the voluntary sector. This is a relatively new approach to addressing social issues, which brings new money into the voluntary sector and follows the principles of:
- High engagement - we will actively participate in helping organisations to succeed.
- Long term sustained support and investment, both financial and non-financial.
- Funding the general operations (core costs) of voluntary organisations as well as delivery of their services.
- Organisational capacity building, including funding charities to grow the scale of their operations.
- Defining clear, measurable social benefits.
- Rigorous evaluation and performance measurement.
- Holding organisations accountable for results and reward success.
- Sharing successes and failures openly
Our model is simple; we raise philanthropic funding and invest it in a selected portfolio of charitable ventures. Rigorous performance monitoring ensures we achieve maximum return, just like any commercial investment fund.
All the work will be around particular themes – we are tackling issues to change the social landscape. Work will be funded around these issues as opposed to funding work regardless of its focus.
The first challenge that we have chosen to tackle is the significant number of young people who struggle to make a successful transition into adulthood, and as a result end up in a situation where they are neither working nor learning. Significant funding will be delivered over a 7-10 year period, with investment targeted at the areas of greatest need.