Blog: Penny Friedman

This week Soapbox connects with Penny Friedman, President and Founder of BeneFactors which, after joining forces with the Health Foundation Fund, became InterAct for Change. Here, Penny blogs on the importance of giving back to our community.

SoapBlog 3 - Let’s Deep-Six Mark Twain's Prediction

"When the end of the world comes, I want to be in Cincinnati because it's always 20 years behind the times." – Mark Twain

I don't know about you but I have to be honest – every time I hear this quote I am completely perturbed.  Cincinnatians, and others for that matter, reference it all the time.  Sometimes I hear people say we're only 10 years behind, but the way I see it, 10, 20 or even one year behind is unacceptable to me.

That's why I need to tell you that in terms of 21st Century philanthropy, Cincinnati is not far behind – in fact we're trying ways of active giving that are at the head of the pack. We have a burgeoning hotbed of venture philanthropy and social enterprise right here in River City!

You may be asking yourself, "What on earth is venture philanthropy"?  Venture philanthropy takes concepts and techniques from venture capital finance and business management and applies them to achieving philanthropic goals instead of profit goals.

Simply put, venture philanthropy is characterized by an entrepreneurial spirit, a focus on ROI, engagement by individuals in giving financial and intellectual resources and multi-year commitments, to push an organization forward strategically and operationally.

Venture philanthropy can take a variety of forms, but the two most popular are giving collaboratives and social enterprises. 

Giving collaboratives, also known as giving circles, are formed so that members can pool financial resources for charitable purposes and work together to make a strategic difference around a particular issue or subject. 

Wiki describes social enterprises as social mission-driven organizations which trade in goods or services for a social purpose. Their goal is to deliver a triple bottom line - meeting financial, social and environmental performance targets.

You are probably thinking, "There is no way Cincinnati has anything that resembles these types of interesting organizations!  Our hometown is too conservative."  How wrong you are. They are here!

Social Venture Partners Cincinnati is a giving collaborative of accomplished individuals who care passionately about making the world a better place. These individuals actively give their time and resources to benefit our community.  Partners bring their collective expertise, financial resources, professional skills, life experience and creativity to work in partnership with area nonprofits to help create long-term change.  Sure they contribute to the community which is fantastic, but having fun is a big part of the equation for this group as well.

SVP Cincinnati launched last November as a program of InterAct for Change and is one of 26 cities affiliated with Social Venture Partners International, based in Seattle. The amazing SVPI model taps into resources from its national and international affiliate network.

Yep, Cincinnati has something the hip northwest has.

In the social enterprise department, the Health Foundation of Greater Cincinnati recently sent out a Request for Proposal to award grants to local nonprofits treating the severely mentally ill.  The goal is to uncover opportunities to extend their services and increase their revenue consistent with their organizational missions.  So far there have been seven grants totaling over $926,000 for developing businesses to increase their triple bottom line.

These aren't the only examples. mpact 100 (a giving circle of women each contributing $1,000 annually – started in the 1990's), Give Back Cincinnati, Community Wealth Ventures, in addition to SVP Cincinnati, are moving Cincinnati rapidly forward into new types of philanthropy – and new ways to solve our community’s issues.  There are lots of ways for YOU to plug in - or you can always organize your own giving collaborative. 

Venture philanthropy, giving collaboratives and social enterprises are decidedly part of the future of philanthropy and the future is here NOW.  It is no longer just about large foundations writing checks. It's about passionate individuals joining forces to make a difference.  Are you ready to help debunk the Mark Twain quote?

I am!

Penny Friedman
COO InterAct for Change

InterAct for Change is a full-service philanthropic organization that applies a fresh, bold approach to charitable giving. We understand that individuals, families, and organizations have distinct passions, beliefs, and ideals that influence their charitable activities, with an end goal that could be different for each. InterAct has developed a highly personalized and flexible approach that meets the philosophical and emotional needs of each client. InterAct’s mission is to inspire, lead, and support active giving and innovative philanthropic solutions.