2010 Legacies Now has announced its evolution into a venture philanthropy organization called LIFT Philanthropy Partners on the eve of the one-year anniversary of the 2010 Winter Games.
As an official partner of the Vancouver-Whistler Winter Olympics, 2010 Legacies Now was mandated to connect the Games with communities throughout B.C. With the support of the provincial government and numerous other partners, 2010 Legacies Now has invested in programs, organizations and communities to create social legacies in the arts, literacy, sport and recreation, accessibility, volunteerism and aboriginal engagement.
Realizing it needed a new business model when the Games ended, 2010 Legacies Now concentrated on distinguishing itself from other organizations. The result is LIFT Philanthropy Partners and an approach to philanthropy that focuses on increasing the impact, accountability and effectiveness of non-profit organizations in Canada.
Venture philanthropy, or philanthro-capitalism, applies the concepts of venture capital finance and business management to philanthropic investments. LIFT plans to employ a staged investment process based on measurement, reporting and accountability.
According to LIFT CEO Bruce Dewar, “People think it’s throwing money at the issue, when really it’s having a strategic investment, while more importantly having the right talent and minds around to help that organization grow.”
LIFT plans to invest in non-profits with an established record of success in the areas of sport and healthy living, literacy and lifelong learning. Dewar said a LIFT management team will work with each non-profit’s chief executive to establish a shared mindset, whereby a larger impact can be made on a larger audience. The team will provide funding, expertise and a network of experts to address the needs of the organizations for three to five years.
“As the organizations graduate from working with us,” Dewar said, “they will have a graduation network whereby the not-for-profits will work with each other, but also start working with the new organizations being benefited by LIFT. This exemplifies one of our core values of shared experience and continuous learning.”
Financing and expertise will come from corporations, individual donors, foundations and government. Dewar noted that while the provincial government was 2010 Legacies Now’s biggest partner leading up to the Games, he sees financial and resource support coming from all levels of governments across Canada, but accounting for less than one-third of LIFT’s capital pool.
Impetus Trust in the U.K. and New Profit in the United States are considered venture philanthropy pioneers. Based in Cambridge, Massachusetts, New Profit aligns itself with the Harvard School of Business and promotes the idea of combining business acumen with non-profits. Since 2005, New Profit has invested US$805,000 in the U.S. affiliate of the Canadian youth organization Right to Play. During that time, Right to Play has grown 36% and its revenue has increased 27%.
Lululemon founder Chip Wilson, who has started two charities, echoed Dewar’s sentiments.
“The day of simply giving to charity and hoping it will yield expected results is over. Charities have an obligation to build business-oriented leaders who can be responsible for their own future.”