Virtuous capital: what foundations can learn from venture capitalists

摘要: U.S. foundations and nonprofits work diligently on behalf of society's most needy yet report that progress is slow social problems persist. How can they learn to be more effective with their limited resources? Foundations should consider expanding mission from investing only in program innovation the organizational needs nonprofit organizations as well. Their overemphasis design has meant deteriorating capacity at many nonprofits. If are help assured making payroll, paying rent, or buying a much-needed computer, must develop hands-on partnering skills. Venture capital firms offer helpful benchmark. In addition putting up capital, closely monitor companies which have invested, provide management support stay involved long enough see company become strong. foundation officers familiarize themselves such practices, begin build sector. hire experts assist grantees; lengthen grant terms allow organization strengths; create new classes grants for effectiveness. Nonprofits turn articulate when applying grants; apply known longer-term plans justify long-term foundations.