The Venture Philanthropy Mindset

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Workshop given at the Willamette Valley Development Officers Annual Conference May 17, 2012.

Helping nonprofits to think strategically using a venture philanthropy mindset

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  • Works when donors have disinterest benevolence & trust
  • Works when donors have disinterest benevolence & trust
  • What is the gap between reimbursement & true costs
  • The Venture Philanthropy Mindset

    1. 1. The Venture Philanthropy MindsetStrategy, Evaluation, & Development Mark P. Fulop, MA, MPH mark@facilitationprocess.com
    2. 2. RoadmapCharacteristics Of Venture Philanthropy;Nonprofits And Venture Philanthropy Thinking;Planning Tools• Social Impact Model• Strategic Planning• Program Evaluation• Resource Development Planning
    3. 3. Philanthropy’s Shifting Modelold model new modelDonors responded to community Donors have more self-interestneeds by sharing resources. in sharing resources.Focus was to alleviate suffering Focus is to create community& improve the social welfare of change & impact.the community.Nonprofit agencies were the Unprecedented ability to self-trusted conduits to solve organize outside the boundariesproblems. of traditional nonprofits.Focus was on the gift Focus is on the Investment
    4. 4. New Pathways for Philanthropy Giving Circles Foundations • PrivateLiving • CorporatePeople • Operating Monthly Giving Nonprofits Estates Public Charities Self-organized events • Federated Funds Corporations • Community Trusts • Gift Funds Social Media Chart Adapted from: Frumkin, Peter. 2006. Strategic Giving: The Art and Science of Philanthropy (Chicago: University of Chicago Press).
    5. 5. Venture Philanthropy Model • Long-term partnerships with organizations addressing significant needs • Significant involvement in the organizations operations & management • Focus on performance measurement & outcomes • Scale projects that can grow into larger initiatives.
    6. 6. Programs & Outcomes Strategic Fundraising Planning Capacity BuildingNonprofit Old Thinking
    7. 7. Strategic Capital & Planning Operating Revenue Capacity Programs & Building OutcomesNonprofit New Thinking – What is your Impact
    8. 8. Toolkit for ActionProcess for Nonprofit Venture Thinking
    9. 9. Social Impact ModelOrganizing for Success
    10. 10. “The burden of breaking the cycle of nonprofit starvationdoes not rest solely with funders. Nonprofit leaders also playa role. As a baseline task, they should commit tounderstanding their real overhead costs and their realinfrastructure needs. At LGON, for instance, senior managersspent several months digging into their costs, analyzing theircurrent systems—including the organization’s subpartracking process—and identifying gaps in capacity. After thisstrategic planning process, the organization could articulatea clear plan for a new tracking system and a 150% increase innon-program staff over three years.”NONPROFIT STARVATION CYCLEFULL COST IS A CRITIAL ISSUE FOR MANY NONPROFITS TO THINK ABOUT A Goggins Gregory & D Howard (Fall 2009) The nonprofit starvation cycle. Stanford Social Innovation review Online at: http://www.ssireview.org/images/articles/2009FA_feature_Gregory_Howard.pdf
    11. 11. Examples of True Cost of Services People Systems Support• Living Wages • HR, $, IT • Board• Benefits • Performance Development• Career Path • Communications • ED Coaching• Development • Donor • Development• Flexibility Management • Social Media
    12. 12. Models for Growth • Operational Growth • Program Growth • Program Expansion • Program Replication See: http://facilitationprocess.com/four-dimensions-of-nonprofit-growth
    13. 13. Kinds of Money Mission Investment Social Impact BondsPureInvestment Cause Marketing Venture philanthropy Corporate Fee-based Services Donor advised funds Government Grants small individual gifts Pure Giving Pure Pure Nonprofit Profit Adapted from: Raymond, S (2010) Nonprofit Finance for hard Times. John Wiley & Sones, Hoboken, NJ.
    14. 14. Draw your funding model• Individual Donors _____%• Foundation Grants _____%• Government Grants _____%• Federated Support _____%• Earned Income _____%• Other _____% Key Conversations Autonomy, Reliability, Concentration
    15. 15. Bringing it all Together• Strategic, Business, Operat ional & Measurement Planning drive a different conversation with donors, funders, & policymakers.
    16. 16. Facilitation & Process, LLC is a consulting firm based in Portland, Oregon. With Facilitation & Process, you are not our client butrather we are your partner in strategy, performance improvement and success. We design customized approaches that aretailored to your needs. Organizations that benefit most from working with us are those who are tired of the same old solutionsand are ready for the fresh, imaginative and objective. We help you think about your organizational context and the largercommunity ecosystem in which you operate. We help you think systemically, systematically with a focus on the long view.To help you create solutions, we offer a range of supporting services including performanceassessments, facilitation, strategic, capacity, business & social impact planning, board & staff development and retreats, anddeveloping meaningful community engagement.Contact us for a free initial consultation Mark P. Fulop, MA, MPH mark@facilitationprocess.com 1 (503) 928-4082 Skype: facilitation.process Website http://www.facilitationprocess.com Twitter: http://www.twitter.com/facilitationpro Facebook: http://www.facebook.com/facilitationprocess Linked In: http://www.linkedin.com/in/markfulop Google+ http://gplus.to/facilitationProcess

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