Venture capital investing funds started by some Silicon Valley schools help them raise money for their mission. Is VC a possible answer for other nonprofits? Dr. Michael Moody, professor of philanthropic studies at the Indiana University Lilly Family School of Philanthropy, explains the opportunities and challenges of the concept.

“Starting in the late 1990s there was a big push, especially on the West Coast, toward ‘venture philanthropy’ – adapting venture capitalists’ successful investment principles for use in giving, and reframing giving as an investment seeking social returns, not just financial ones. After some backlash, it fell out of fashion somewhat,” Moody says. “But these programs at Silicon Valley schools show that the core impulse behind this approach to philanthropy remains appealing, especially in places infused by and made wildly affluent through the venture capital-driven economy.”

Innovation of this type can be both high reward and high risk.

Read the full article about venture capital investing funds at Lilly Family School of Philanthropy.