Posted on 12/21/2005 12:32:40 PM PST by nickcarraway
When venture capitalists Bill Draper and Robin Richards Donohoe decided they wanted to give back to the community, they came up with a grant-making foundation modeled on the same principles they use in their VC business.
The Draper Richards Foundation for Social Entrepreneurship provides early-stage grants of $300,000 over three years to social entrepreneurs with a vision of changing the world.
The partners rely on the same due-diligence process and business acumen that brought them success in the financial world. They're among a growing wave of executives and entrepreneurs who have taken business models into the nonprofit arena, not only giving money but providing strategic expertise, evaluating results and providing multiyear support.
This market-based approach to giving is called venture philanthropy and it isn't a new idea. John D. Rockefeller III is credited with coining the term in the late 1960s. While only 42 U.S. foundations identified themselves as venture philanthropists in 2004, more and more foundations are adopting their hands-on, results-oriented approach, said Laura Arrillaga, who teaches strategic philanthropy at the Stanford Graduate School of Business.
"I could just write a check to someone doing good works," said Draper, 77, who was one of the earliest venture capitalists in Silicon Valley. "But that would be different."
Instead, the foundation is closely involved with its grantees, who are called Draper Richards fellows. One of its staff members serves on the fellows' boards. Fellows establish milestones they'll meet during the three-year grant period. The grants can be used for any purpose that furthers the social entrepreneur's work.
"We want to pick people who have a light in their eye," Draper said. The foundation seeks individuals just like those venture capitalists want to fund: entrepreneurs with a compelling vision, a plan for execution, and the drive and willpower to accomplish their goals.
(Excerpt) Read more at sfgate.com ...
That's pretty nifty. Hope they do well.
ping
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