Venture philanthropy

This has been termed a 'movement' and is variously called or is related to "social entrepreneurism," "strategic philanthropy" or "e-philanthropy" and claims to have adopted techniques (and have been influenced by) the activities of venture capital firms in the 1990s. The argument is, mainly, that a deeper interaction between giver and recipient is engendered alongside an emphasis on measurable results.

There is plenty of debate over questions as to its efficacy and, as of yet, not much academic research.

The annual survey of Venture Philanthropy Partners, a Washington, D.C., foundation that supports programs for children, finds that:

"A few years ago, the concepts of venture philanthropy and high-engagement grant making were overinflated, with airy promises to transform philanthropy as we know it," the study concluded. "Today, we can see their progress toward that promise is real but not yet revolutionary."

Writers such as Thomas J. Donaldson have traced the movement to the moves 20 years ago to get American companies to divest themselves of stocks in companies with interests in South Africa. Now, socially conscious investment philosophy has gone mainstream, with one out of every six to nine investment dollars in the U.S. subject to some kind of social or ethical criteria.