Venture Philanthropy in Development: Dynamics, challenges and lessons in the search for greater impact is the title of a new report from the recently created Global Network of Foundations Working for Development (netFWD), launched today at the Rockefeller Foundation Headquarters in New York City.
netFWD sees the study as ‘a first step towards offering an in-depth insight on how foundations working for development are evolving in their search for greater impact. It looks at the journeys, enabling environment, incentives and drivers that led a number of philanthropic organisations willing to seek novel ways to address global development issues to (re)define their operating model. While they were once “grant-makers only”, considering allocated money gone for good, an increasing share of foundations are becoming real investors, i.e. expecting a financial return alongside social impact or at least seeking to recover their initial capital.’
The report defines venture philanthropy as ‘an entrepreneurial approach to philanthropy that combines a variety of financial and non-financial resources to identify, analyse, co-ordinate and support self-sustaining, systemic and scalable (for
and not-for profit) solutions to development challenges aimed at achieving the greatest impact’. The authors emphasize that the report provides a broader overview of innovative ways to support development and to create shared value.
The report includes case studies of the Emirates, Lundin, Rockefeller and Shell Foundations.