While many of us are just worrying about not being betrayed by our favorite philanthropy (I’m thinking about the Susan G. Komen for the Cure Foundation right now), many large donors and foundations are trying to figure out how they can get the most bang for their buck. This movement has been described as venture philanthropy. In short, venture philanthropy is characterized by taking some of the principles of venture capital, such as looking for measurable results, and applying them to the non-profit sector.
In Multiplication Philanthropy, Dan Pallotta tries to turn much of the current thinking on its head:
they’re looking for them in the wrong places. They’re missing the greatest leverage point of all: the multiplying effects of smart investments in fundraising. If you want to maximize the social effects of your donation, why would you buy, for example, $100,000 worth of great educational programming for inner city kids when the same $100,000 directed toward fundraising could generate enough money to buy $1 million worth of it?