Impact of Venture Philanthropy on Foundations and Nonprofits in the US

This paper examines the effectiveness of venture philanthropy in addressing the historically ineffective relationship between foundations and nonprofits in the US. It argues that venture philanthropy, adapted from venture capital investment, offers a solution by emphasizing "management" and organizational development for both foundations and nonprofits. Through a case study, the paper explores critical factors faced by contemporary venture philanthropists, showing how this approach supports new venture creations and encourages foundations to invest in the organizational rather than solely programmatic needs of nonprofits to enhance the social sector's development.