Entrepreneurial Incentives and Venture Philanthropy
ENTREPRENEURIAL INCENTIVES &
VENTURE PHILANTHROPY
NOT JUST YOUR GRANDMOTHER’S BENEVOLENCE
Abstract
As emerging donors, fund managers, and philanthropic practitioners begin to devise the most efficient, resourceful, and promising channels of philanthropy, the traditional method of writing checks is swiftly transitioning to model the common practices of oversight, accountability, and returns on investment that contributed to the wealth produced in the corporate sector.
Based on the significant literature and dialogue available on philanthrocapitalism, social investors, and highly engaged philanthropy, this paper aims to focus on how two major movements in building social capital have impacted traditional philanthropy.
This research explores Venture Philanthropy and Entrepreneurial Incentives separately; it examines the definition of the two terms, tools that are required to implement each model, and organizational input from foundations whose work demonstrates best practices within each concept. By examining the integration of Venture Philanthropy and Entrepreneurial Incentives within traditional grant-making foundations, this paper will attempt to address the following:
- Considerations for a traditional foundation to take into account when directing its efforts to supporting projects that genuinely contribute to systemic change
- Specific measurement efforts that have enabled traditional foundations to be more effective in grant-making
- Implications for foundations regarding the readiness to adapt to these tools
This qualitative analysis and informational review draws from literature reviews, involvement in conferences, and interviews with leading experts, practitioners, and researchers from regional, national, and international foundations and associations that have integrated these practices within their work. This paper intends to contribute to the dialogue about different approaches within traditional philanthropy. Readers can evaluate several components of venture philanthropy and entrepreneurial incentives that were successful, and determine which practices may be a suitable match for related foundation programs.