Madhu Anand, Director of the TechSoup Global Network
By Madhu Anand, Director of the TechSoup Global Network
European Foundation Week Session: New Ideas and Experiences in granting and supporting social investment: The ‘strange’ case of Foundazione CRT and its network organised by Fondazione Sviluppo e Crescita-CRT, 1st June 2010
Another approach to grant making and supporting social causes is Venture Philanthropy, also referred to as Social Investing. It’s a concept that puts greater responsibilities on both the grantor and grantee. Foundations, at least in Italy, seem to be trying different approaches to grant making.
Foundation CRT, established in 2007 ‘invests’ over 40% of it’s funds in programs that create social value using a diversified set of investment ‘tools’. This includes a real estate fund with social aims (schools, hospitals), a social housing initiative (addressing the problem of housing for the underserved), micro credit, environmental protection, investment in the development of small medium enterprises, and investment in shares of ventures of non-listed companies. Not really sure how the last 2 fit into ‘social causes’ other than, in its broadest terms, employment creation.
The key elements that determines which organisations get funds are strong engagement, multiyear support, tailored financing, non-financial support, organisational capacity building and performance measurement. Ireland’s One Foundation follows much the same guidelines when investing in social issues in Ireland and Vietnam.
Interesting bit of information – Irish charities likely to see grants drying up; 2 of the largest Foundations in Ireland are time bound; they will draw down in the next 3 to 5 years.
Tagged: Civil Society Organisations, Ireland, social investment
