Our Approach – Venture Philanthropy

The term venture philanthropy best describes the PfC approach to generating social change through the PfC Social Innovation Fund. In recent years, more individuals and organizations have shifted from traditional grant giving to a diverse array of initiatives that make use of business perspectives to contribute to the social good. Phrases like social enterprise, social entrepreneur, philanthrocapitalism, and impact investing are often used when describing projects that include financial returns along with creating social value as goals.

The European Venture Philanthropy Association (EVPA) helpfully illustrates this wide spectrum of approaches and objectives, with societal value through grants at one end and financial aims at the other.

venturephilantropy

Venture philanthropy best captures our work, because our primary driver is to create social value. In addition, we primarily operate through grant giving with many of our projects generating revenue as one objective.

According to EVPA, “venture philanthropy works to build stronger social purpose organisations by providing them with both financial and non-financial support in order to increase their societal impact.” This is what we do.

The tools we use to implement projects also match the EVPA’s description of venture philanthropy’s widely accepted characteristics.

As VP spreads globally, specific practices may be adapted to local conditions, yet it maintains a set of widely accepted key characteristics. These are:

• high engagement
• tailored financing
• multi-year support
• non-financial support
• involvement of networks
• organisational capacity-building
• performance measurement