Measuring What Matters: How Venture Philanthropy Metrics Can Enhance Strategic Philanthropy

In recent times philanthropy evolved significantly, with strategic philanthropy (SP) and venture philanthropy (VP) emerging as crucial and modern approaches for addressing complex socio-economic challenges. This thesis explores the theoretical foundations of SP and VP, analysing their evolution, impact, and limitations, as well as highlighting exemplary cases, such as the Rockefeller Foundation and the Bill and Melinda Gates Foundation. While SP emphasizes structured and outcome-oriented interventions, VP introduces entrepreneurial methodologies, risk tolerance, and innovative tools to achieve measurable social impact. The principal objective of the research is to investigate whether the methods, tools, and metrics utilized in venture philanthropy projects can enhance the transparency and effectiveness of social impact measurement within strategic philanthropy. To address this question, the elaborate applies a two-steps approach. First, it examines existing measurement systems by analysing and comparing the metrics used in SP and VP projects. Second, it performs an empirical analysis by applying VP metrics to SP projects. This quantitative analysis assesses whether the integration of VP measurement frameworks improves the accuracy and clarity of impact assessment. The main objective is to define whether the adoption of VP metrics in SP projects could fill existing gaps in transparency and efficiency, providing a more robust and enhanced understanding of social impact, contributing to the discourse on improving accountability and performance in philanthropy, proposing that a synthesis of SP and VP measurement systems could lead to more effective resource allocation and greater social value creation.