Table of Contents

Preface: A Lesson from the Past

Introduction

Part 1 The Venture Philanthropy Continuum

1. The Challenge: Changing the Focus of Charitable Giving

2. Venture Grantmaking
   • Venture Investing Defined
   • A Venture Grant Defined
   • When to Make a Venture Grant
   • Illustrations of Capacity Building
   • Characteristics of Venture Grantees
   • The Venture Grantor as Catalyst
   • Grantor as Investment Banker
   • Bailing Out a Charity

3. Models of Venture Grantmaking
   • The Robin Hood Foundation
   • The Vera Institute of Justice
   • The Edna McConnell Clark Foundation
   • The Ford Foundation's Program-Related Investments
   • Social Venture Capital: An Innovative Form of Venture Grantmaking

Part 2 The Venture Grantmaking Process: A Step-by-Step Blueprint

4. Phase One: Selecting a Grantee
   • Exercising Due Diligence
   • The Evergreen Business Plan
     • Defining the Organization's Mission
     • The Organization's Strategic Advantage
     • Present and Projected Future Demand for Programs ("The Market")
     • Revenue Generation
     • Managerial Capability
     • Impact on Employee Morale
     • Improving Organizational Capacity
     • Risks
     • Periodic Program Evaluation
     • Financial Projections
     • Financial Controls
     • A Timeline for Achieving Objectives
     • Linkage to Staff Compensation
     • Form of Reports
     • The Drafting Process
   • Board Deliberations
   • Capping Phase One: The Independence Agreement
   • Exit Strategy
   • Enforcement

5. Phase Two: Assistance
   • Building an Effective Board of Trustees
   • Organizing an Advisory Council
   • Strengthening Management
   • Oversight
   • Portfolio Construction
   • The Watch List
   • Oversight and Assistance vs. Independence
   • Making Assistance Effective: The California Wellness Foundation Findings

6. Phase Three: Post-Independence Contact

Part 3 Implications for Philanthropy

7. Implications for Grantees
   • Diligence Cuts Both Ways
   • Converting the Evergreen Business Plan into Action Steps

8. Implications for Grantors
   • Recruiting and Developing Venture Grantmakers

9. Degrees of Grantor Engagement

10. Governance of Nonprofit Organizations

Appendices

• Appendix A: The Venture Capital Industry
• Appendix B: The McKinsey Capacity Framework and Assessment Grid

Index