How do the dollars from Donors get to the Project/s?
The dollars from Donors come through the Venture Philanthropy Foundation (USA) or Trust (UK) and are disbursed to the project in a pre-agreed manner. Projects are reminded that VPC's obligation to their Donors is to only release funds on the proviso that projects stay in line with their milestones, and pre-determined performance indicators.

How can a project be certain that moneys from Donors will be released timeously?

The timing of the release of funding is clearly agreed up front with both the project and the Donor, and is based on the project committing to, as well as continuing to achieve its pre-determined targets and objectives.
Fees for fund raising activities may in some instances be deducted at source. However dependant on the tax status and Foundation / Trust laws in their respective jurisdictions, these fees may be paid to VPC through the Project and in order for the Donor to realize full tax benefits from their contribution.

Accordingly the delay in remittance of fees to a project would not only constitute a breach of the agreement between the Donor, Philanthropist and Project, it would de facto result in the same delay to VPC income.

Donor’s may select to have a member of their Organization / Foundation sit on the boards of the VPC Foundation / VPC Trust and as respective Board Members / Trustees. This provides the Donor with an additional layer of governance.

Could VPC use the moneys as leverage over a project to try to control and influence the project from operating in a manner consistent with it’s past operations?
Yes VPC are in a position to control and influence a project, but only insofar as its performance in accordance with agreed performance parameters is concerned. Indeed the very essence of VPC is our Cost Per Result benchmark and Commercial Performance Requirement both of which offer the Donor peace of mind that their investment is performing and achieving its pre-determined objectives, before further investment is made. The attainment of these goals and objectives is imperative for the project to have an impact (again pre-determined) on its philanthropic cause.
A project is duty bound to perform and achieve its pre-agreed targets within its pre-determined budgets, in order to qualify for additional funding.

It is on this basis “bang for your buck” that VPC raise philanthropic capital.

If VPC hold onto Donor’s moneys for some duration, who will get the interest?
Any interest earned on money donated for a project is channeled to the respective project as the beneficiary of both the donation and any interest earned thereon.

During VPC’s Entrepreneurial Review how does the project ensure that the vision, goals and objectives are those of the project and not those of VPC?
VPC carry out an Entrepreneurial Review through participatory workshops and using a Logical Framework Approach (LFA) which is an objectives orientated planning procedure. The process isa consultative/collaborative one that sees VPC guide participants of workshops and breakaway sessions by challenging participants thinking with an entrepreneurial (performance oriented) mind set. We consider it essential that ownership of a projects’ goals, objectives, and targets is established and developed by the project’s management team if it is to be able to withstand scrutiny.

VPC do NOT take ownership of any project or project team. We simply ensure project performance by that team.

Does VPC have exclusive rights to raise funds for a project?
VPC do not require exclusivity of fund raising activities at all. Funds raised by VPC which are channeled through the VP Foundation / Trust are subject to VPC’s fee thereafter. Should Donor’s wish funds transferred direct to a project, the project would pass on the fee portion to VPC on receipt.

Any fund raising activities carried out by a project are entirely the project’s benefit with no fee payable to VPC.

VPC aim is to ensure that realistically achievable and mutually agreeable targets are put in place to ensure Donor satisfaction when VPC report (with project assistance) on actual performance to the Donors. VPC believe this approach will facilitate continuing donor support particularly given that performance is measured and monitored in terms of results and not activities.

How Do VPC earn their income?
VPC Income is derived predominantly from fund raising activities for which a success-fee is raised.

The fee is charged as a gross percentage of the total funds raised.

The Percentage fee for each project is dependant on the value being raised and the amount of involvement VPC have had with the project in assisting with developing its future objectives, as well as taking cognizance of future project monitoring and reporting requirements.

Fund raising fees are itemized and agreed with the Project.

Any further questions? Please Contact Us