VPP currently manages two funds: a social-venture fund
and a long-term innovation fund.
THE CHILDREN'S LEARNING FUND FOR THE NATIONAL CAPITAL
REGION
The Children’s Learning Fund is the philanthropic
investment fund that we are now using to make investments
in nonprofit organizations that seek to improve the
lives of children through high-quality learning, education,
and development activities. This fund was launched in 2001.
By 2006, this fund will be fully invested in approximately
12-14 nonprofit organizations in the National Capital Region.
This fund has commitments of more than $30 million, and
we have already capitalized $30 million of these pledges.
With this money, we are making three to five new multi-year
investments (grants) each year. We envision that these philanthropic
investments will in some cases be leveraged through joint
venture and co-investments with other foundations and private
givers.
Up to 10 percent of the fund’s capital is available
to VPP to deploy for purposes other than direct philanthropic
investments in nonprofit organizations. VPP management can
use this allocation to fund programs to enhance the philanthropic/nonprofit
ecosystem of our region, make early-stage seed investments,
fund education programs to advance the understanding of
venture philanthropy and/or nonprofit and management effectiveness,
develop a broader network of contributors, and undertake
other activities consistent with VPP’s mission.
The monies for this first fund have been contributed by
private donors, private foundations, and donor-advised funds.
See the complete list of VPP’s
investors for more information.
THE PHILANTHROPIC INNOVATION FUND FOR THE NATIONAL
CAPITAL REGION
The Philanthropic Innovation Fund will provide capital for
VPP to fund new venture philanthropy approaches that:
- Provide additional funding to enlarge the Children’s
Learning Fund, if we decide to raise capital beyond the
initial $30+ million;
- Create subsequent philanthropic investment funds to
benefit children that focus on areas other than education,
learning, and development;
- Create early-stage “angel” funds to support
the emergence of social entrepreneurs;
- Provide later-stage, larger funding to support our
investment partners beyond the terms of our current agreements;
- Fund programs and studies to advance the effectiveness
of philanthropic investment, the development of philanthropic
capital markets, the recruitment of talent into the nonprofit
sector, and the development of new funding vehicles to
advance the VPP mission. (See
more information on possible
directions for VPP after the Children’s Learning
Fund is fully invested.)
The Philanthropic Innovation Fund will be funded from
additional contributions to VPP beyond the initial monies
secured for the first venture fund. Currently, the Philanthropic
Innovation Fund is capitalized at less than $500,000. There
is no active fund development under way at this time.
