It feels good to donate to organizations and causes we believe in. In the United States, 60% of households participate in some sort of charitable giving. Whatever the motivation to donate money, everyone shares the desire for their philanthropic efforts to be as effective as possible.

One avenue to consider is venture philanthropy, which approaches charitable giving as an investment. This approach can be an excellent way to make the most of your donor-advised fund (DAF), family foundation or other philanthropic resources.

My vantage point for proposing venture philanthropy as a worthy investment strategy is my role as the executive director of a leading social enterprise accelerator. And full disclosure: Our organization has an impact-first investment fund that qualifies as venture philanthropy. But the ideas here apply to any and all venture philanthropy efforts.

Venture philanthropists operate through foundations, education capital funds and private firms that give grants and other capital to social entrepreneurs and nonprofits. The investment goals of venture philanthropy focus on portfolio organizations’ social and environmental impact in addition to financial metrics.

As you plan both your philanthropic and investment strategies for 2024, here are five reasons why directing some of your philanthropic giving to venture philanthropy can be a good idea.

  1. Provide flexible capital that helps de-risk and strengthen social ventures.
  2. Multiply your impact and generate leverage on your philanthropic capital.
  3. Give in a way that’s more economically sustainable over time.
  4. De-risk your own philanthropic efforts.
  5. Contribute to the development of a strong impact investment ecosystem.

Read the full article about venture philanthropy by Brigit Helms at Forbes.