George Roberts Foundation and Venture Philanthropy

Venture Philanthropy is a fairly new trend among big-name investors and venture capitalists. Venture philanthropy is a "new age" approach to philanthropy that mixes venture capital with financial handouts to worthy causes. Sometimes referred to as "philanthrocapitalism," venture philanthropy is not about indiscriminate giving.

Traditionally, philanthropy is about giving aid to the needy without any expectation of returns. This type of philanthropy is charitable, but sometimes earns the ire of social groups and government lawmakers. Proponents to traditional philanthropy argue that is builds community. Opponents argue that philanthropy drains resources without necessarily making the impact in community it intends to. Venture philanthropy, on the other hand, applies financial research to philanthropy to determine if an investment made for a philanthropic venture will gain both beneficiary and benefactor a return on the investment. Venture philanthropy is designed to fund programs that help people help themselves.

The George Roberts Foundation

George Roberts is one of the original founding partners of the financial giant Kohlberg Kravis Roberts & Co along with Henry Kravis and Jerome Kohlberg. George Roberts is among the earliest venture philanthropists. The George Roberts Foundation has helped the advancement of non-profit organizations and businesses since 1986. In 1997, George Roberts and his wife Leanne founded the Roberts Enterprise Development Fund (REDF). The goals of the REDF focus on creating jobs for the underprivileged and those most disconnected from the regular workforce, such as those challenged by homelessness, limited education, drug or alcohol addiction, criminal records, and physical or mental health issues. The REDF does this through supporting social enterprises that teach vocational skills to those who really need them.

The REDF works by building a portfolio of social purpose ventures. This is where the application of venture capital finance comes in: philanthropic investments have to be carefully analyzed to determine the profitability of a venture. When a venture has been deemed profitable, the REDF provides start-up capital and builds links between the venture and other business and philanthropic networks. Because of its innovative and valuable work in this field, the REDF has gone on to win the first ever International Venture Philanthropy Award in 2001.


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