How to practice VP
EVPA uses the term VP to describe grant making and social investment that employs the following characteristics:
- High engagement – Hands-on relationships between the social enterprise or nonprofit management and the venture philanthropists.
- Organizational capacity-building – Building the operational capacity of the portfolio organizations, by funding core operating costs rather than individual projects.
- Multi-year support – Supporting a limited number of organizations for 3-5 years, then exiting when organizations supported are financially or operationally sustainable
- Non-financial support – Providing value-added services such as strategic planning to strengthen management.
- Involvement of networks – Providing access to networks enables various and often complementing skill-sets and resources being made available to the investees.
- Tailored financing – Using a range of financing mechanisms tailored to needs of organization supported.
- Impact measurement – Placing emphasis on good business planning, measurable outcomes, achievement of milestones and financial accountability and transparency.
More details on how to establish and manage a VP organisation can be found in “Establishing a VP Organisation in Europe: A Practical Guide” available at Publications – EVPA Publications. Publications on how to practice VP are available at Publications – VP in Practice.
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