Alliance Online - December 2006

Venture philanthropists in a hurry in Paris

Susan Mackenzie

EVENT European Venture Philanthropy Association (EVPA) 2nd Annual Conference
Date 15 September 2006
Venue Le Senat, Paris, France

‘Venture philanthropists are in a hurry. They are ambitious to make a difference,’ said David Carrington, an honorary member of the EVPA and a speaker at its 2006 annual conference. Throughout the day one was struck by the buzz of enthusiasm and goodwill. As EVPA Chairman Doug Miller remarked, ‘There was a real thirst for more knowledge and more live examples, as well as networking with like-minded people.’

Judging by the crowd, which filled the auditorium of the French Senate to capacity, the prospects for European venture philanthropy look bright. The conference attracted 270 participants from 21 countries, including venture philanthropy funds, foundations, private equity groups, private banks, universities, professional service firms and government bodies. Participants came from countries as far away as Estonia, Russia, Australia and the US. As EVPA Adviser Rob John explained: ‘EVPA’s membership is under a broad canopy. We made a conscious decision to be inclusive.’

Reflecting feedback from the 2005 conference, this year’s event was much more engaging and interactive. The conference opened with a lively panel discussion by venture philanthropy organizations at varying stages of development and based in different countries, who shared their experiences in selecting and working with investees. This was followed by a keynote address from Didier Pineau-Valencienne of Sagard Private Equity Partners, who argued the important role that business leaders have to play in engaging in and supporting broader civil society.

Three breakout sessions addressed some important issues for venture philanthropists: ‘Ready, steady, go! Starting a VP operation’; ‘Backing the best individuals: VP and social entrepreneurs’ and ‘Does it work, does it matter? Measuring performance and impact’.

In the session on measuring performance, participants heard from several EVPA members, as well as an investee, who are using and learning from various evaluation tools, including the Balanced Scorecard and Social Return on Investment (SROI). The panellists underscored that it is possible to understand and demonstrate impact, although it may not always be easily quantifiable: it is an art, not a science. Softer indicators, such as self-esteem, are especially difficult to measure, but it is important to try to monitor impact (for example by using proxies or qualitative measures, such as stories). Otherwise, organizations only measure outputs without understanding impact. It is better to ‘be imprecisely right than to be precisely wrong’. Panellists also emphasized the importance of working jointly with investees to develop indicators and targets that are relevant and meaningful to them.

Some common messages emerged across all three sessions. One was the importance of ‘staying curious’: venture philanthropists should never stop listening to and learning from their investees and supporters, and should continue to seek opportunities for collaboration to lever their money and skills. Another theme was the need to be risk-alert but not risk-averse. Venture philanthropists can take risks in tackling social challenges that government and other publicly accountable bodies cannot. They should be encouraged to be adventurous in their philanthropy.

Commenting on the sessions, David Carrington observed: ‘EVPA gets stronger with each meeting as the practical experience grows. The rhetoric of venture philanthropy is now being tempered by reality.’

The conference ended with a panel discussion on ‘Leveraging resources for venture philanthropy’. The speakers included Jamie Cooper-Hohn, who talked about her Children’s Investment Fund Foundation. The success of the Foundation’s model is an inspiration to potential philanthropists – and envied by existing ones.

The conference also saw the launch of EVPA’s European Venture Philanthropy Directory. In addition to information on its members and other venture philanthropy resources, it also includes a venture philanthropy ‘primer’ and investment case studies. The Directory is available free on the EVPA website.

EVPA plans to continue developing new resources to engage all those interested in venture philanthropy, and its own growth seems set to continue. Among the participants were representatives of 35 EVPA members, double the number of those attending the first conference in London last year. Following this year’s conference, it now has applications from 30 other potential members.

Susan Mackenzie is Director of Philanthropy UK. Email susan@philanthropyuk.org

For more information
www.evpa.eu.com

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