The latest of several annual surveys commissioned by Venture Philanthropy Partners, a Washington, D.C., foundation that supports programs for children, finds that the field is growing but still small, with most American venture philanthropy firms clustered in the New York and Silicon Valley regions. While there are more than 50,000 charitable foundations in the United States, the survey found only 42 pure venture-philanthropy organizations, making grants totaling about $50 million in 2001, less than 0.2 percent of all grants in the country that year.
"A few years ago, the concepts of venture philanthropy and high-engagement grant making were overinflated, with airy promises to transform philanthropy as we know it," the study concluded. "Today, we can see their progress toward that promise is real but not yet revolutionary."
The small count of pure venture philanthropy organizations, however, does not reflect the field's impact. Croson said venture philanthropy techniques have been adopted by many mainstream foundations, leading to a new approach that "has changed the pitch being made to potential donors. How (does one) convince donors to give money? The way is to show (measurable results)...In general, charities have become a lot more results-oriented and are doing a lot more internal metrics on (the question), 'Have we succeeded--yes or no?
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