Giving in a changing world
The way philanthropists are giving their money away is changing, so non profits have to change if they are to keep on attracting donations
Philanthropists are changing the way they give but non profits are stuck in the traditional fundraising loop and haven't adapted to the new model of European “venture philanthropy”, says UK expert Chris Carnie.
If non profits are to meet the needs, aspirations, energy and imaginations of Europe's new philanthropists they will have to change their approach to fundraising dramatically, says Carnie, who is the founder of Factary, a consultancy firm that specialises in providing fundraising guidance to non profits.
So what are these new philanthropists looking for exactly? According to Carnie venture philanthropy, or VP, invests in, rather than gives to projects and measures “profits” in terms of resulting social impact. The overall goal is for the project to be able to return some of the investment to the fund thereby ensuring a degree of sustainability.
Carnie, who will explain his theory at the International Fundraising Congress in Amsterdam on October 19 – 22, believes that European non profits are still fundamentally tied to the asker-giver model and are not flexible in the services they offer donors – for example, allowing philanthropists to have more say in the various stages of the project.