How We Work
Key Values of the EHI Venture Philanthropy Approach (7)
While EHI decisions remain driven by its philanthropic mission and mandate, the venture philanthropy model provides a more rigorous focus on measuring and managing impact results (instead of focusing on the size of a grant or input-like indicators).
Because venture philanthropy is oriented towards optimizing impact through a collaborative approach, entities of varying sizes, sectors, expertise, etc. can all be a key part of an EHI venture philanthropy initiative.
This funding model enables EHI to bring together both financial and non-financial resources as well as co-investment partners optimizing social impact and best evidence outcomes.
The following are some of the common value elements - (although each element is not necessarily found in every venture philanthropy initiative EHI undertakes):
- Target systemic change through collaborative, strategic capital allocation.
- Long-term engagement with grantees and investees in alignment with a systems change mindset.
- Multi-stakeholder focus that promotes collaboration with key players within a sector.
- Blended investing approach that combines the use of grants and return-seeking investments.
- Focus on scaled interventions at a sector level, as opposed to single organizations.
- Agile evidence based research encouraging swift adaptation of interventions as needed based on outcomes.
Over the past decade or so, there has been a significant shift in philanthropy’s approach to addressing some of society’s biggest problems and the growing popularity of market-based or market-inspired solutions to these challenges.
At the same time, ideas like shared value, the notion of businesses favoring social good over a pure economic gain, or impact-investing have become more common.
This is due in part to declining funding from traditional sources, including traditional government funding, and donors’ growing demand for more impact from their charitable dollars.
Philanthropy and private equity used to be very distant worlds. Today, the idea of venture philanthropy has become more widespread. (8)
(7) https://www.sopact.com/venture-philanthropy
(8) https://ssir.org/podcasts/entry/how venture philanthropy works and its role in effective charity