# Nonprofits "missing out" on surge in European venture philanthropy, says Carnie

- Link: https://fundraising.co.uk/2010/10/12/nonprofits-quotmissing-outquot-surge-european-venture-philanthropy-says-carnie/
- Published: 2010-10-12T07:55:01+01:00
- Author: Howard Lake

Nonprofit organisations are missing out on securing funding from a new model of 
of European venture philanthropy, according to Chris Carnie, founder of prospect
research firm [Factary](http://www.factary.com), because they remain too focused
on traditional methods of fundraising.

He will be exploring how nonprofit organisations can build relationships with these
new European philanthropists and maximise their fundraising potential at the International
Fundraising Congress, taking place next week in Noordwijkerhout, the Netherlands.

The model, whereby venture philanthropy (VP) funds invest in projects and measure
the resulting social impact, with the ultimate aim of returning part of the original
investment back to the VP fund, has been in existence for some time, but Carnie 
reports that it has gathered pace in the last year in Continental Europe, with renewed
interest from a number of philanthropists.

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This new wave, he says, is being spurred by research and fundraising practice and
publications including La Nouvelle Philanthropie.

Attendances at the European Venture Philanthropy Association’s conferences have 
soared in the last year, despite its relatively modest membership base of 31 VP 
funds.

“These new philanthropists can invest in social change,” he said, “measure the change
created, and in some cases get the money back so that it can be recycled into more
social change. Mainstream foundations are taking an increasing interest in this 
area.”

He is concerned that some nonprofits will miss out on this opportunity. “Traditional
nonprofits find it harder to understand the viewpoint of new philanthropists,” he
said.

“Critically, nonprofits need to involve philanthropists at the problem stage, rather
than just with solutions. They need to look at the services they offer, and the 
ways in which they measure the impact of their programmes. Many of the VP funds 
insist on a board seat if they are to invest, and again this can be difficult for
many non-profits to accept. It is a paradigm chasm, with traditional nonprofits 
on one side, and wealthy, willing but frustrated philanthropists on the other.”

Carnie will be running a masterclass at this year’s International Fundraising Congress,
highlighting the cultures of money and philanthropy in Continental Europe and the
assumptions behind fundraising strategies.

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