Venture philanthropy is taking root in Europe as wealthy donors seek to maximize their impact in a time of declining charity spending, The Wall Street Journal reports.

Experts expect overall giving in Europe to mirror the sharp drop this year in the United States. Many donors who remain active are turning from outright gifts to loans and other investments and encouraging charities to become more open and entrepreneurial.

“Since the credit crisis, we’ve seen more philanthropists turning to alternative ways of helping charities, notably through specialist finance in providing the capital to fund loans to charities,” said Mike Packman, head of private clients, enterprise and philanthropy at the U.K.-based Charities Aid Foundation.

Plus: In New England, venture capitalists have established a foundation to promote social entrepreneurship among urban youths, according to the Journal. Technology Underwriting Greater Good was founded in October by executives at two venture-philanthropy firms in the Boston metropolitan area.