Venture philanthropy is the nonprofit sector’s version of venture capital, in which unrestricted grants, strategic support, and other resources are mobilized over multiple years to catalyze visionary social entrepreneurs, organizations, and initiatives that can break through and impact the lives of millions of people.
Why Venture Philanthropy Works
Our 20+ years of practicing venture philanthropy have shown us that big results often come from unconventional approaches, and we are driven by the belief that no single organization can solve complex social problems on its own. That’s why we invest in a portfolio of diverse social entrepreneurs who are advancing on-the-ground results and working collectively to change systems and conditions that hold social problems in place.
Our offering to portfolio organizations includes a multi-year, unrestricted grant coupled with world-class strategic support delivered by New Profit Deal Partners, who serve as close advisors to social entrepreneurs and board members at their organizations. Each year, Deloitte also collaborates with New Profit Deal Partners in providing pro bono strategic consulting to a set of our portfolio organizations. Finally, we provide opportunities for social entrepreneurs to connect and collaborate with peer leaders, whether through cohort-based learning communities or network convenings. We believe that this type of funding and relationship-based support is critical to the success of social entrepreneurs, and while prevalent in the for-profit sector, it is hard to access in the nonprofit sector where grantee-funder relationships often lack depth beyond formal reporting and grants are often short-term, restricted, and program-focused.
Providing [unrestricted support] is a linchpin of the venture philanthropy approach. Such financing is the norm in the private investing world, but it’s hard to come by for nonprofits.