NFPs Missing Out On New Model of Philanthropy Funding
Wednesday, 13th October 2010 at 9:24 am
Not for Profit organisations risk losing out on attracting donations from a new model of European venture philanthropy because they remain too focused on traditional methods of fundraising, according to a UK expert.
According to Chris Carnie, founder of a UK consultancy firm, Factary, Not for Profits around the world will have to change their approach to fundraising dramatically if they are to meet the needs, aspirations, energy and imaginations of these new philanthropists.
He will be explaining how NFPs can build relationships with these new European philanthropists and maximise their fundraising potential at the forthcoming International Fundraising Congress, taking place in Amsterdam from the 19-22 October.
The model, whereby venture philanthropy (VP) funds invest in projects and measure the resulting social impact, with the ultimate aim of returning part of the original investment back to the VP fund, has been in existence for some time, but has gathered pace in the last year in Continental Europe, with renewed interest from a number of philanthropists.
This new wave, says Carnie, is being spurred by research and fundraising practice and publications including La Nouvelle Philanthropie.
Carnie says people in the financial sector are especially interested in the VP model, as are younger philanthropists.
He believes that the model highlights how VPs have found a way to both help society and return part of their original investment to the fund, enabling them to invest further in projects.
As well he says these new philanthropists can invest in social change, measure the change created and in some cases get the money back so that it can be recycled into more social change and mainstream foundations are taking an increasing interest in this area.
Carnie believes that NFPs in Europe in particular are missing out on this philanthropy model as they are too reliant on the asker-giver relationship and too inflexible in the services they offer to donors.
He says traditional Not for Profits find it harder to understand the viewpoint of new philanthropists, and critically, Not for Profits need to involve philanthropists at the problem stage, rather than just with solutions.