Venture Philanthropy is no longer a new concept in philanthropy world. Similar to venture capital firms in the for-profit world, venture philanthropy organizations seek equity investments in nonprofit organizations and social entrepreneurs which align with their social change investment priorities.

A brief overview of the process: venture firms develop investment partnerships with nonprofit organizations through a competitive application process. These applications are generally reviewed by a team of investors. Similar to foundations, venture firms have specific social objectives and interests. However, venture funds are not intended to maintain or build organizational programs. Venture firms and portfolio organization partner within “company-shareholder/investor” framework. Therefore, the performance of the portfolio organizations is scrutinized on a different scale. To ensure that the investment in the organization proves fruitful, portfolio partners receive management and capacity building expertise from the firm. The portfolio organizations are supported through large-scale, multi-year funding; and with the expertise of the venture firm, portfolio organizations can work to achieve social change on a larger and more effective scale.

Here is a list of links to some well-known venture philanthropy firms:

Ashoka

Edna McConnell Clark Foundation

Entrepreneurs Foundation

New Schools

Nonprofit Finance Fund 

Roberts Enterprise Development Fund

Robin Hood Foundation

Venture Philanthropy Partners