Venture philanthropy and social investment are about matching the soul of philanthropy with the spirit of investing. They are seen as a holistic, high engagement, long-term approach to building stronger investee organisations with a societal purpose. With financial and non-financial support and by using a wide spectrum of financing instruments, the VP/SI approach ranges from high engagement grant making to social investment.
Traditional grant-making has been criticised for failing to help non-profits build capacity, grow and become financially sustainable. VP and SI are a response to this criticism and therefore play an important role in diversifying capital markets for social purpose organisations and reaffirming some key principles for good grant making.
In particular, they have filled a gap between traditional grants for non-profits and commercial market rate equity and loans. Capital investments made by venture philanthropists also aim to address issues of sustainability and scale. By providing support to strengthen capacity and management, skills and expertise over a longer term social purpose, organisations can benefit greatly from this model.
Last June, the Ministry for the Economy, Investment and Small Business published a White Paper on the Social Enterprise Act, which touched on a number of points. Social enterprises are seen as important contributors to the social and economic development of a country. In fact, the European Commission has put social economy at the forefront of its 2020 agenda.
Apart from social enterprises, Malta also has a very strong and vibrant voluntary sector that could also benefit from venture philanthropy and social investment. The voluntary sector addresses social problems in many areas doing great work and reaching a number of people. In both sectors there are also issues of lack of stable funding, organisational capacity and access to partnerships to solve challenges and create impact.
Social enterprises and the voluntary sector both have important functions in society and are essential to contributing effectively to address social problems. Both need tools intended to enable access to forms of financing, developing the infrastructure and support. Could VP and SI be a good model for Malta? While other European countries have become more involved in this sector, could Malta benefit too?
On October 2, the European Venture Philanthropy Association and Inspirasia Foundation will be holding a half-day event.
The event provides an exclusive environment to learn and network while exploring strategic ways of giving and supporting. Participants will get an understanding of how EVPA can support them should they get involved in the sector. This event is a follow-up from the Malta Philanthropy Forum organised by Inspirasia Foundation in May.
The guest speaker, Hedda Pahlson-Moller, is a full-time Business Angel focusing on social investment. Anyone wishing to attend should contact Louisa Attard at louisa@inspirasia.org or call 9924 8141.
European Venture Philanthropy Association was established in 2004, as the highest-value catalytic network of European social investors, venture philanthropists and foundations committed to using venture philanthropy and social investment tools to target societal impact.
Founded in 2003, Inspirasia is the official foundation of Mark Weingard’s businesses worldwide. Since 2003, the foundation has directed around $10 million to health, disability, education and disaster relief services in India, Indonesia and Thailand.
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