New research maps UK venture philanthropy, revealing huge growth in funds

By: 

Cheryl Chapman

Managing Editor, Philanthropy UK

A new report that maps the UK venture philanthropy (VP) industry is a response to the increased interest and influence of this new approach, says author Chris Carnie of Factary, a research consultancy specialising in strategic philanthropy and fundraising.

The review reveals the UK VP industry, now nine years old, is worth more than £1.5bn and provides more than £50m in support for nonprofits, representing a 'startling growth' in funds it says.

As well as analysing eleven key funds, reviewing their areas of interest and their finances the report focuses on the people behind this new wave in philanthropy, highlighting the roles of 135 trustees, donors, patrons and board members in the UK VP sector, including brief biographies on each.

Carnie, Factary director, says fundraisers are increasingly interested in VP, as donors, particularly those who work in investment, show more interest. “The ‘city’ group of donors, such as financiers and bankers, have always been a hard bunch to reach for fundraisers, but the idea of investing charitable funds instead of giving them away appeals to them, and it’s an approach they are ready to listen to.

According to the research, over half of  trustees of UK VP organisations come from the financial sector – with 29% coming from the private equity industry, a key target audience for many nonprofits. Many are wealthy – the report  identifies more than £5.2bn in personal wealth.

“We are also seeing the increasing influence VP funds are having on the rest of the philanthropy community. Even traditional organisations such as foundations and trusts are asking how they can adopt venture approaches,” says Carnie.

The tenets of a VP approach according to membership organisation EVPA are; high engagement, tailored finance, multi-year support, non financial support, organisational capacity building and performance measurement.

“Venture philanthropy calls for a much tougher relationship with grantees. VP organisations measure more closely and are interested in outcomes rather than outputs. They are much more engaged in bringing about defined outcomes and will sit on the board if they have too ,” says Carnie.

“VP relies on networking and that is why the report focuses on the people involved which we feel will be of use to both philanthropists who want to become involved and fundraisers.”

The 70 page report – a supplement to Factary’s New Trust update - offers newly-researched information and includes a detailed index of corporate and trust connections. The report details the trends in the sector, as well as giving background on venture philanthropy – history, definition and key features.

The report is available from Factary at £125 per copy. To order email research@factary.com with your contact details.