New Philanthropy

Philanthropy and Volunteerism- K. Kazarian (author NPB) speech at the United Nations (September 11, 2001)

Many donors believe that the cassic model of arms length charity write a check and leave execution to the nonprofit agency is flawed. Passive contributions limit participation in how funds are used, as well as incentive to remain involved and take responsibility for outcomes. While traditional charity has a role in society, it is often not the best way to create sustainable change.

This advanced donor philosophy, accompanied by unprecedented wealth creation and technology-focused advances in productivity and efficiency, has set the stage for a new breed of philanthropy: a fundamentally different approach that draws upon contemporary best practices in both the private and nonprofit sectors to meet society's most pressing problems.

At its core, New Philanthropy seeks to obtain greater return from nonprofit organizations, whether social, financial, or both. It offers a promising way to tap the financial and intellectual resources of leading minds, in an effort to increase the effectiveness of social enterprises. Major New Philanthropy efforts can be categorized into several approaches:

Social Venture Capital/Venture Philanthropy:
Social venture capital and venture philanthropy typically refer to a foundation or fund's use of venture capital techniques (e.g., focused use of financial resources, experience, and contacts) to achieve the foundation's mission.

As defined by the W.K. Kellogg Foundation, "Intersectoral" is the blending of two or more sectors working collaboratively and using their resources, inherent perspectives, experience, and management tools to achieve common goals. The Intersectoral approach lies midway on the spectrum between philanthropy and commercialism. It represents the highest standards and bears the expectation that investments will create a return on both social and financial resources.

Social Investing:
Social Investors typically pursue a passive, FROI- focused approach and invest in existing businesses that meet certain social requirements (e.g., no gambling or firearms companies). represents an Intersectoral approach to New Philanthropy, in that it seeks to achieve SROI through the education of social sector leaders, while achieving FROI through execution of a innovative business model structured within a for-profit entity.

New Philanthropy Links
The following organizations have demonstrated a firm commitment to the "New Philanthropy" approach. Importantly, they seek out quantifiable value creation as a primary goal.

James Irvine Foundation
Nathan Cummings Foundation
David & Lucille Packard Foundation
Ewing & Marion Kaufman Foundation
Penninsula Community Foundation
Robin Hood Foundation
Surdna Foundation
W.K. Kellogg Foundation

Social Entrepreneurs/Social Venture Funds

Echoing Green
Morino Institute
Center for Venture Philanthropy
Entrepreneurs' Foundation
Flatiron Foundation
Roberts Enterprise Development Fund
Silicon Valley Social Venture Fund
Social Venture Partners


Japonica Intersectoral Bank
Flatiron Future Fund
New Profit, Inc.
New Schools Venture Fund
Silicon Valley Community Ventures

Social Investors
New Vantage Partners
Calvert Social Venture Ventures