Venture Philanthropy Partners
Encyclopedia
Venture Philanthropy Partners (VPP) is a high-engagement philanthropic organization based in the DC metro area. It was founded in 2000 by Mario Morino, Raul Fernandez
, and Mark Warner
to invest in high-performing nonprofits in the National Capital Region. Since then, it has made over $40 million in direct investments in nonprofits serving children and youth.
VPP has a high-engagement model with its nonprofit partners, and provides technical support along with its grants. It makes investments in three areas: Early Childhood, Education, and Youth Transitions.
Its investment partners, past and present, are currently serving more than 42,000 children and youth around the National Capital Region.
Once VPP finds a potential nonprofit partner, it goes through a due diligence process to determine the potential for a partnership, appropriate timelines for an investment, and the necessary steps to move forward. Typically, a VPP investment partnership lasts anywhere from 2-5 years and can involve a $500,000 to $5 million investment.
In its first fund, VPP focused on serving more organization with smaller grants. In its second fund, it shifted to a focus on larger and longer investments in fewer organizations.
, a local DC organization that provided after-school programming to area youth. In the subsequent nine years, VPP made an investment in a total of 12 organizations. These investments had varying degrees of success, with some expanding rapidly into new areas, while others faltered and did not meet expectations.
In total, VPP invested over $31.4 million into these 12 organizations. Additionally, VPP also leveraged an additional $32 million in funds for these investment partners, creating a more than 1:1 ratio of invested dollars and additional outside, leveraged donations. VPP has a large network of influential people across the National Capital Region, some of whom are board members and some of whom are donors to VPP itself, and VPP frequently taps into that network on behalf of the nonprofits it supports.
VPP's first portfolio expanded into more than 45 new neighborhoods and opened up over 20 new sites. As of 2010, the portfolio organizations had expanded to serve 16,000 more youth. Much of this growth was into the Maryland suburbs outside DC, as that region, like many US suburbs, was experiencing a rapid influx of low-income and immigrant communities.
's Social Innovation Fund, and will result in a $12.8 million investment. The overall goal of the network is to improve the lives of 20,000 youth in the National Capital Region by 2015.
The youthCONNECT investment is a part of VPP's second fund, but is a different approach to investments than VPP has done before. Instead of making an investment in one organization, it has invested in six. These six together form youthCONNECT. Leaders and programmatic staff meet regularly to discuss the goals of youthCONNECT and provide support to each other as they work to meet these goals. They also operate under a "shared outcomes framework" which aligns all their activities towards the network's goals.
Additionally, the network investments are investments in programs, and not organizations, which is another difference from VPP's traditional investments.
The rationale behind switching to a "network approach" was that VPP began to realize that solving large societal problems cannot be done by a single organization. Instead, many organizations must work together with a common framework for action to affect change in a significant way. This approach is similar to the "collective impact" model for change that the social impact consulting firm FSG
has developed.
The Economist article on social innovation
VPP's YouTube Page
VPP's Twitter Feed
NewSchools Venture Fund
REDF
SeaChange Capital Partners
Social Venture Partners
Raul Fernandez (entrepreneur)
Raul J. Fernandez is an American entrepreneur. He is currently Chairman and CEO of ObjectVideo, and co-owner of the NHL Washington Capitals, the NBA Washington Wizards, and the WNBA Washington Mystics.- Historic roots :...
, and Mark Warner
Mark Warner
Mark Robert Warner is an American politician and businessman, currently serving in the United States Senate as the junior senator from the Commonwealth of Virginia. He is a member of the Democratic Party. Warner was the 69th governor of Virginia from 2002 to 2006 and is the honorary chairman of...
to invest in high-performing nonprofits in the National Capital Region. Since then, it has made over $40 million in direct investments in nonprofits serving children and youth.
VPP has a high-engagement model with its nonprofit partners, and provides technical support along with its grants. It makes investments in three areas: Early Childhood, Education, and Youth Transitions.
Its investment partners, past and present, are currently serving more than 42,000 children and youth around the National Capital Region.
Mission
VPP's mission is:We aim to help strong leaders make their organizations as effective as they can be. And we hope to demonstrate the value of making strategic, engaged, highly leveraged investments to build and strengthen nonprofit organizations.
Approach
VPP's approach differs from traditional grantmakers in that it does not ask for grant applications, but seeks out high-performing organizations with the capacity to grow to serve more children and youth. It focuses on general operation support and not on programmatic expenses, another deviation from the traditional grantmaker model. Its investments are tailored to increase the capacity of nonprofits so that their growth can be sustained once the investment life cycle is complete.Once VPP finds a potential nonprofit partner, it goes through a due diligence process to determine the potential for a partnership, appropriate timelines for an investment, and the necessary steps to move forward. Typically, a VPP investment partnership lasts anywhere from 2-5 years and can involve a $500,000 to $5 million investment.
In its first fund, VPP focused on serving more organization with smaller grants. In its second fund, it shifted to a focus on larger and longer investments in fewer organizations.
Portfolio I
VPP began its first fund in 2000, with an investment in Heads UpHeads up
Heads up may refer to:* Heads Up! , an educational television show which is produced and broadcast by TVOntario* Head-up display or heads-up display, a transparent display that presents data without obstructing the user's view of objects behind it* Seven Up , also called Heads Up, a traditional...
, a local DC organization that provided after-school programming to area youth. In the subsequent nine years, VPP made an investment in a total of 12 organizations. These investments had varying degrees of success, with some expanding rapidly into new areas, while others faltered and did not meet expectations.
In total, VPP invested over $31.4 million into these 12 organizations. Additionally, VPP also leveraged an additional $32 million in funds for these investment partners, creating a more than 1:1 ratio of invested dollars and additional outside, leveraged donations. VPP has a large network of influential people across the National Capital Region, some of whom are board members and some of whom are donors to VPP itself, and VPP frequently taps into that network on behalf of the nonprofits it supports.
VPP's first portfolio expanded into more than 45 new neighborhoods and opened up over 20 new sites. As of 2010, the portfolio organizations had expanded to serve 16,000 more youth. Much of this growth was into the Maryland suburbs outside DC, as that region, like many US suburbs, was experiencing a rapid influx of low-income and immigrant communities.
Full List of Portfolio I Investments
This is the full list of VPP's Portfolio I investments:- AALEAD
- Boys and Girls Clubs of Greater Washington
- Center for Multicultural and Humans Services
- CentroNíaCentroniaCentronia is a genus of plant in family Melastomataceae.Species include:* Centronia brachycera, Triana* Centronia laurifolia, D. Don* Centronia mutisii, Triana* Centronia peruviana, J. F. Macbr....
(Formerly Calvary Multicultural Learning Center) - Child and Family Network Services
- College Summit, National Capital Region
- Friendship Public Charter School
- Heads UpHeads upHeads up may refer to:* Heads Up! , an educational television show which is produced and broadcast by TVOntario* Head-up display or heads-up display, a transparent display that presents data without obstructing the user's view of objects behind it* Seven Up , also called Heads Up, a traditional...
- Latin American Youth Center
- Mary's Center for Maternal and Child Care
- See Forever Foundation (Which operates the Maya Angelou Public Charter Schools
- SEED FoundationSEED FoundationThe SEED Foundation also often referred to as the SEED Schools, is a private foundation, established in 1997 to provide boarding school educational opportunities to underserved students....
(Which operates the SEED SchoolSEED SchoolSEED Alternative School is a small Toronto District School Board alternative high school now located in Toronto's east end.Previous locations include Yonge and College, McCaul St, and Bloor and Spadina, in downtown Toronto...
)
Portfolio II
At the close of its first portfolio in 2007, VPP decided to continue its work and begin to raise funds for a second round of investments. Learning from the first fund, VPP decided to make fewer investments, but with more resources devoted to each investment. As of summer of 2011, VPP had made two direct investments and one networked investment, including an investment in KIPP DC for $5.5 million, its largest investment to date.Full list of Portfolio II Investments
This is the full list of VPP's Portfolio II investments, as of Summer, 2011.- KIPP DC (Local DC chapter of the KIPP Foundation)
- Year UpYear UpYear Up is a nonprofit organization based in Boston, Massachusetts. Year Up was founded in 2000 by Harvard Business School graduate Gerald Chertavian, and currently has sites in Atlanta, Boston, San Francisco Bay Area, Chicago, New York, Providence, Puget Sound , and Washington, D.C..- Mission...
, National Capital Region - youthCONNECT
youthCONNECT
youthCONNECT is VPP's investment in a network of nonprofits in the National Capital Region. youthCONNECT is funded in part by the Corporation for National and Community ServiceCorporation For National and Community Service
The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through Senior Corps, AmeriCorps, and Learn and Serve America, and other national service initiatives...
's Social Innovation Fund, and will result in a $12.8 million investment. The overall goal of the network is to improve the lives of 20,000 youth in the National Capital Region by 2015.
The youthCONNECT investment is a part of VPP's second fund, but is a different approach to investments than VPP has done before. Instead of making an investment in one organization, it has invested in six. These six together form youthCONNECT. Leaders and programmatic staff meet regularly to discuss the goals of youthCONNECT and provide support to each other as they work to meet these goals. They also operate under a "shared outcomes framework" which aligns all their activities towards the network's goals.
Additionally, the network investments are investments in programs, and not organizations, which is another difference from VPP's traditional investments.
The rationale behind switching to a "network approach" was that VPP began to realize that solving large societal problems cannot be done by a single organization. Instead, many organizations must work together with a common framework for action to affect change in a significant way. This approach is similar to the "collective impact" model for change that the social impact consulting firm FSG
FSG
FSG can refer to:* Falling sand game* Fenway Sports Group* Fluorosilicate glass * Stability and Growth Pact* Folkestone School for Girls* Formula Student Germany* Farrar, Straus and Giroux, an American book publisher...
has developed.
Full list of organizations in youthCONNECT
This is the full list of VPP's youthCONNECT investments:- College Summit, National Capital Region
- KIPP DC (Local DC chapter of the KIPP Foundation)
- Latin American Youth Center
- Metro TeenAIDS
- Urban Alliance
- Year UpYear UpYear Up is a nonprofit organization based in Boston, Massachusetts. Year Up was founded in 2000 by Harvard Business School graduate Gerald Chertavian, and currently has sites in Atlanta, Boston, San Francisco Bay Area, Chicago, New York, Providence, Puget Sound , and Washington, D.C..- Mission...
, National Capital Region
See Also
More learning resources from VPPThe Economist article on social innovation
VPP's YouTube Page
VPP's Twitter Feed
Other High-Engagement Philanthropic Organizations
The Edna McConnell Clark FoundationNewSchools Venture Fund
REDF
SeaChange Capital Partners
Social Venture Partners