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WORKPLACE
VENTURE PHILANTHROPY
Through direct involvement entrepreneurs can play a very useful role in the non-profit sector and obtain self-fulfilment at the same time, reports Jain Spirit
Direct involvement is key
Ajay Gudka (far right) at the school construction site
'Venture Philanthropy' is a term that is used to describe active involvement with the projects to which one donates,
HARITY IS A VERY IMPORTANT SOCIAL responsibility, one that should not be neglected during these times of economic and geopolitical uncertainty. The Jain community can be proud of the prominent examples set by many of its members in undertaking philanthropic work. This article looks at a specific approach to charity, which is sometimes called 'Venture Philanthropy'. The article explains the nature of venture philanthropy, and then makes it more concrete by giving a profile of an excellent Jain involved in it.
An important role model in the community was Mr. Meghji Pethraj Shah, the founder of Meghraj Group. He donated not just his own money, but also gave his time and effort to encourage others to co-donate. He took an active role in the building and running of projects in which he was involved.
Active Charity
dupin
Looking at the current trends in philanthropy in the US, we can unravel some interesting ideas about a more disciplined and
active approach to charity. There are numerous ways to Examples
undertake philanthropic work, ranging from simply signing a cheque to taking an active involvement in the fund-raising and distribution process, the management of a charity, or a direct relationship with the ultimate recipient. It is this idea of active involvement that we will explore.
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Jain Education International 2010 03
particularly for business people, through the transferral of business skills to the charitable domain. The basic analogy is to apply some of the disciplines of business and venture capital to philanthropy. While we should not become too caught up in this analogy, it still provides some interesting insights and pointers. The goal for anyone making a donation should be clear - to create as much benefit for the recipients as possible for the amount of money given. Venture philanthropy takes this objective very seriously and suggests some approaches of how to achieve it.
Rather than a family charitable foundation just acting as a conduit for funds to reach a registered charity, venture philanthropy suggests that in addition to money, the individual donors offer their time, contacts and business skills to increase the efficiency with which the charity is managed and undertakes its various projects. The resultant benefit to the recipients can be seen as the leveraging of financial capital (the donation) with intellectual and human capital (the business skills and contacts), the combined effects of which should be far greater than the donation itself. This tends to require a longer-term, relationshipbased approach rather than the transaction-based approach of a one-off donation.
The approach is more about teaching than just giving - the old adage very correctly says that it is better in the long term to teach someone to grow food than to provide him with food. The impact is far more profound and long-term, the lessons can be shared with others, and it benefits a greater number of people. Many venture philanthropic activities are therefore focussed on education, whether for adults or for children from disadvantaged backgrounds.
noblis
What kind of active roles can individuals play to assist charities?
. Guidance on the running and management of the charity, teaching and sharing basic business skills;
. Help with 'marketing' through the provision of contacts and introductions when the charity is collecting donations;
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