Sometimes, those outcomes are hard to measure, he says. Proponents of venture philanthropy defend their approach, saying that their aim is to catalyze a new generation of donors and encourage them to build the capabilities of non-profit organizations. They point out that theirs is a niche endeavor, not one intended to supplant traditional grant making. We're fulfilling different roles. What's more, venture philanthropists say that they are not trying to force-fit charities into a template of spreadsheets and quarterly profit statements.
Venture capitalism is, for the most part, a mercenary business.
It is focused on fast investment and even faster returns, and it imposes dramatic consequences for falling short of either. Venture capitalism serves its purpose. But it is not our purpose. Mr. Morino says he wants representatives of the fund to sit on the boards of grantees. His goal, he says, is to help the organizations become stronger.