Giving Compass' Take:

• In this post for The Scotsman, investor Leslie Robb discusses the world of venture philanthropy and the measurements of success in funds that support social causes.

• Are we thinking strategically enough when it comes to impact investments? Which tools are most effective?

• Here's more on how venture philanthropy is bringing about social impact.


When an investor is running the rule over a potential deal, one question pops up again and again: what’s the return on my investment? Whether it is the dividend or the interest rate or the increase in the share price, investors want to know how much money they will make from a deal.

Yet, not all returns on investment can — or should — be measured in terms of money. As one of the investors in the 14:19 Fund run by non-profit organization Inspiring Scotland, the return that I want to see is how many young people are being helped into education, employment and training by the charities supported by the fund.

Inspiring Scotland was launched in 2008 to help essential charities become exceptional ones. The organization not only invests cash from its funds, but also uses what’s known as the “venture philanthropy” model.

This means that charitable organizations receive both funding and advice on how to manage their operations. This knowledge comes from performance advisors and professional volunteers, who help the third-sector organizations on a pro bono basis. The performance advisors work alongside members of staff to strengthen the day-to-day running of the charities. Whether it’s succession planning or risk management strategies, the advisors help the organizations to enhance the essential skills they need to ultimately help more young people.

Read the full article about investing in a good cause to receive greater returns by Leslie Robb at scotsman.com.