The document outlines the venture philanthropy model, which emphasizes long-term partnerships, performance measurement, and a shift from traditional nonprofit practices towards community-focused investments. It discusses the importance of understanding overhead costs and developing a clear plan for nonprofit capacity building to break the cycle of 'nonprofit starvation.' Additionally, it highlights the role of various funding sources and the need for strategic planning in the nonprofit sector.

1. The Venture Philanthropy Mindset
Strategy, Evaluation, & Development
Mark P. Fulop, MA, MPH
mark@facilitationprocess.com

2. Roadmap
Characteristics Of Venture Philanthropy;
Nonprofits And Venture Philanthropy Thinking;
Planning Tools
• Social Impact Model
• Strategic Planning
• Program Evaluation
• Resource Development Planning

3. Philanthropy’s Shifting Model
old model new model
Donors responded to community Donors have more self-interest
needs 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 boundaries
problems. of traditional nonprofits.
Focus was on the gift Focus is on the Investment

4. New Pathways for Philanthropy
Giving Circles
Foundations
• Private
Living • Corporate
People • 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. 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. Programs &
Outcomes
Strategic Fundraising
Planning
Capacity
Building
Nonprofit Old Thinking

7. Strategic Capital &
Planning Operating Revenue
Capacity Programs &
Building Outcomes
Nonprofit New Thinking – What is your Impact

8. 
Toolkit for Action
Process for Nonprofit Venture Thinking

10. Social Impact Model
Organizing for Success

11. “The burden of breaking the cycle of nonprofit starvation
does not rest solely with funders. Nonprofit leaders also play
a role. As a baseline task, they should commit to
understanding their real overhead costs and their real
infrastructure needs. At LGON, for instance, senior managers
spent several months digging into their costs, analyzing their
current systems—including the organization’s subpar
tracking process—and identifying gaps in capacity. After this
strategic planning process, the organization could articulate
a clear plan for a new tracking system and a 150% increase in
non-program staff over three years.”
NONPROFIT STARVATION CYCLE
FULL 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

12. 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

13. Models for Growth
• Operational Growth
• Program Growth
• Program Expansion
• Program Replication
See: http://facilitationprocess.com/four-dimensions-of-nonprofit-growth

14. Kinds of Money
Mission Investment
Social Impact Bonds
Pure
Investment 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.

15. Draw your funding model
• Individual Donors _____%
• Foundation Grants _____%
• Government Grants _____%
• Federated Support _____%
• Earned Income _____%
• Other _____% Key Conversations
Autonomy, Reliability, Concentration

17. Bringing it all Together
• Strategic, Business, Operat
ional & Measurement
Planning drive a different
conversation with
donors, funders, &
policymakers.

18. Facilitation & Process, LLC is a consulting firm based in Portland, Oregon. With Facilitation & Process, you are not our client but
rather we are your partner in strategy, performance improvement and success. We design customized approaches that are
tailored to your needs. Organizations that benefit most from working with us are those who are tired of the same old solutions
and are ready for the fresh, imaginative and objective. We help you think about your organizational context and the larger
community 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 performance
assessments, facilitation, strategic, capacity, business & social impact planning, board & staff development and retreats, and
developing 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
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