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The world of giving is filled with different approaches, but two impactful methods stand out: strategic philanthropy and venture philanthropy.

While both have the aim of doing good, they work in very different ways. Understanding the difference can help any donor, not just the very rich, make a bigger impact with their time or money.

This guide breaks down these two styles while using ideas from Dr. Susan Aurelia Gitelson’s book, Giving Is Not Just for the Very Rich, to help you narrow down which method works best for you and your intentions.

Her book is also a testimony, an affirmation that giving is for everyone. It’s also a good primer that explains how different donors use different tools to create change.

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What is Strategic Philanthropy?

Strategic philanthropy is the approach of having a detailed roadmap for giving. Donors set clear, long-term goals that would be followed and amended according to the situation. They then carefully plan their donations to meet those goals.

The focus is on creating lasting change in a specific area, like education or disease research.

This approach thinks more deeply about the root causes of problems—not just methods to remedy them. Thus, strategic philanthropists invest in solutions that can work for many years.

A key part of strategic philanthropy is long-term capacity building, which means giving charities the necessary tools and skills they require to stay strong and effective on their own, far into the future.

Dr. Gitelson highlights foundations that use this thoughtful approach. She notes that serious donors ask tough questions:

“What are your real purposes in life? How can you express them best through giving?”

This self-reflection is the start of a strategic plan.

What is Venture Philanthropy?

Venture philanthropy borrows ideas from the business and investing world. Thus, it is more catered to corporations and investors. Sometimes, it is called philanthropic venture capital.

Just like a business investor puts money into a new company, a venture philanthropist invests in a charity or social project. Of course, they also want to see a clear return on their investment, but that return can also be tied to social impact.

This style is known for high-engagement philanthropy.

Donors don’t just write a check when conducting venture philanthropy; they often get very involved, offering their business skills and helping with planning, or even joining the board.

Thus, the relationship is close and active.

Dr. Gitelson gives a great example: the Robin Hood Foundation. People started it in finance. They use “investment principles to reduce poverty” and closely measure the results of their grants.

This focus on measurable performance results is a hallmark of venture philanthropy.

Strategic Philanthropy vs. Venture Philanthropy

Let’s compare these two approaches side by side to identify the key differences between strategic philanthropy and venture philanthropy and better help you decide which approach is the best for you.

Main Goal: Solutions vs. Growth

This is the core tension between funding projects that build lasting local capacity versus those that prioritize rapid expansion or scale.

Strategic Philanthropy has the aim of solving significant problems. Through the creation of major, lasting changes in fields such as science or the arts, strategic philanthropists seek solutions that cut at the heart of the issues in poverty, sexism, racism, etc.

Venture Philanthropy focuses more on growing a specific organization or idea to better find solutions to the world’s various problems. Their primary aims are to enhance the effectiveness and scalability of projects, much like a successful business.

Time Frame: Long-Term vs. Intensive

This is the contrast between a multi-year commitment to systemic change and a focused, high-effort engagement with immediate outputs.

Strategic philanthropists think in terms of decades. They support the development of institutions and knowledge that will endure over time; this is in order to better adapt to the evolution issues and establish a semi-permanent solution.

Venture philanthropists, on the other hand, often work in shorter, more intensive bursts. They help organizations become stronger and more self-sufficient quickly.

Donor Role: Planner vs. Partner

This is a traditional model where the donor designs the blueprint for change, with a collaborative model where the donor learns and adapts alongside the implementer.

Strategic philanthropists act as planners and funders, supporting a well-researched plan. They are deeply involved with everything, wanting to know the ins and outs of the project before committing to it.

Venture philanthropists take on the role of a hands-on partner. As Gitelson describes, social entrepreneurs “apply business methods and management techniques,” actively engaging in the work to improve every possibility.

Measuring Success: Impact vs. Performance

This is the difference between evaluating broad, long-term change in communities or ecosystems and assessing the efficiency and outputs of a specific program or organization.

Strategic philanthropy’s success is assessed by its broad impact. For example, did the research lead to a cure? Did the educational program result in improved community outcomes?

Venture philanthropy’s success, in contrast, is evaluated by organizational performance. Did the charity serve more people at a lower cost? Did its model demonstrate that it can be replicated elsewhere?

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Finding the Right Tool for Your Giving

You don’t have to pick just one. Many donors use a mix. You might use a strategic approach to your lifelong passion, such as supporting your alma mater. At the same time, you might also use a venture approach for a new local project you help manage.

The most crucial step is to think before you give. As Dr. Gitelson advises, “research and scrutinize [charities] to be certain that they are going to maximize your contributions.” Whether you prefer a strategic roadmap or a hands-on venture investment, being informed is key.

Start Your Informed Giving Journey

Understanding the differences between strategic philanthropy and venture philanthropy enables you to give with more intention. Regardless of whether your contributions are large and small, make sure to align your approach with your passions and skills.

To explore hundreds of real-world examples and learn more about how to make your giving matter, get Dr. Susan Aurelia Gitelson’s essential guide, Giving Is Not Just for the Very Rich.