What is risky philanthropy?

Venture philanthropy is a term used to describe the philanthropic approach, which generally mimics the way the risk capitalists approach business. Traditionally, when wealthy people put money for charity, allow charity to make all decisions on how to use it, and usually assume that charity organizations use money in the best possible way. In risky philanthropy, donors look at their donation a similar investment and generally want some metric for performance or efficiency. They also usually want some entry into how the charity organization works, or at least much more communication about how things are treated. This approach to philanthropy was mostly created by rich risk capitalists at the end of the 90s who felt that the traditional model of philanthropy was deeply defective.

normally, when charity organizations are looking for gifts, they focus on the importance of their cause. For example, shjak food deficiency can personally affect people in a certain part of the world, and inTo glance why it is important for people to donate money to help the people affected. With risky philanthropy, these things are generally still focused, but it is usually also more significant focus on performance. Caritas could show statistics on how it has helped people in the past or quotes studies to prove that they are wisely using money. The donor can also be provided with some basic assurances of greater communication and more personal involvement.

This general focus on results means that charity organizations will be carried out in the most effective way, and organizations could step out of the way to explain why their strategies are more efficient than strategies of their competitors. This kind of openly competitive environment is often considered to be one of the most important aspects of perfect philanthropy. Theoretically, the competition for donor money with more direct and aggressive quality couldt to better results.

Many traditional charity organizations claim that the ideas for philanthropy of a risky enterprise are not really so unique. In general, they argue that they have already accepted most of these practices, or at least tried them, and found that they had not worked for some reason. Others say that philanthropy of risk had influenced by creating more emphasis on the results together with the relationship between charity and the donor.