Quite a few readers have asked for more posts around Venture Philanthropy. This is consistent with what Peter Drucker predicted in the early 1990’s. In a variety of books and articles, he wrote that the there would be a growing base of people with wealth, much of it gained through entrepreneurial activity. He also said that this wave of new wealth would begin to look for ways to make an impact in more societally beneficial ways. They would realize that success and wealth are hollow without meaning. He said that we would see a wave of venture philanthropy, where people began to apply their entrepreneurial skills towards solving the ills of the world. The not-for-profit model is broken and there is a massive amount of new capital pouring into it. However, this time, it will have a lot attached to it.
As I have written, I think that Warren Buffett’s recent moves are a water shed event in Venture Philanthropy. In a very telling Forbes article on Pierre Omidyar’s Foundation, it lays out the justification for a new approach to Philanthropy. One in which time and involvement is, in fact, more important than just the money. As many have commented, unless things change, they could easily spend $100 million and have no impact on the world.
Entrepreneurs are successful in business not because of money or because of good intentions. They are successful because they will companies into existence through determination, vision and hard personal work. Why should we expect dealing with societal issues, which are often even more stubborn and difficult, to be any different?
This is a very exciting time in the world of philanthropy. This chapter will be right up there with the Robber Baron Era with Ford, Rockefeller and Carnegie. I will post tomorrow on what I think this model looks like.
Matt, thanks for following through and writing about this. I look forward to your post tomorrow.
Matt, thanks for following through and writing about this. I look forward to your post tomorrow.