Skip the primary navigation if you do not want to read it as the next section.
Skip the main content if you do not want to read it as the next section.
By Susan Mackenzie
After 18 years in the private equity sector, Luciano Balbo is pioneering a new frontier. Founder and president of B&S Private Equity, a leading Italian private equity group, Balbo retired in 2002 to launch Oltre Venture (previously known as Fondazione Oltre Onlus), the first venture philanthropy fund in Italy. Oltre, a €1 million fund, aims to strengthen third sector organisations, supporting them with both financial and capacity-building resources while maximising social return.
The foundation has invested in nine projects to date, all charities and social enterprises in Milan and northern Italy, focusing on social issues, such as immigration, at-risk Youth, family crises, and housing. For example, Oltre is currently supporting several volunteer associations that work with disadvantaged Italian and immigrant youth, as well as some social enterprises that operate in the health, social, and housing sectors. The foundation is also developing a multi-purpose community facility in central Milan.
Despite the prominent role of the State in funding the third sector, Balbo believes that non-profits can help grow charitable giving by increasing donors’ confidence in and understanding of the sector. Balbo elaborated: “There currently is a lack of transparency among third sector organisations; and some management teams are relatively insular. By improving communication with donors, and being more open about their performance, non-profits can encourage more individuals to give, and to give more.” Through its close, strategic relationship with its investees, Oltre addresses these concerns head-on. Balbo explained: “As in private equity, we are selective in choosing organisations, and remain proactive throughout the investment. However, we also still have a lot to learn.”
Balbo says he enjoys the entire process of selecting and working with non-profits to help them address social needs. He credits his family with inspiring his philanthropy, and with instilling in him a recognition of the “obligations of wealth”. Fortunately, an acceptance of the social responsibilities of wealth is increasing across the country, according to Balbo. In the past 50 years, there has been a substantial increase in private wealth, while State spending has declined. Coupled with the potential for tax incentives, these forces could provide an impetus for higher levels of charitable giving in Italy. balbo hopes that Oltre will serve as a vehicle for attracting this new wealth, and for creating a healthier and more vibrant third sector.
This article first appeared in EVPA NEWS, Issue 2, Spring 2005.
