What does it mean? This is the philanthropic equivalent of venture capitalism. It is an opportunity for charities to benefit from generous donations on the agreement that the donor gets a say in how things are done.
A classic example of venture philanthropy is the Private Equity Foundation. The foundation is essentially a large investment fund, with around 70 private equity firms as members. These businesses are used to identify, support and grow charities working with children and young people.
In particular, its investments address the issue of young people not in education, employment or training.
Despite the obvious benefits of involving donors with a strong track record in business growth and a set of deep pockets, venture philanthropy has been criticised. The Charity Commission has suggested that venture philanthropy carries risks as well as opportunities, as investors may want to influence how their money is spent.
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