Philanthropreneur

Philanthropreneurs are interested in effecting positive change in the world and doing so whilst making a profit. Philanthropreneurs are often "driven to do good and have their profit, too," as Stephanie Strom wrote in an article for the New York Times. ==Theoretical Framework of Philanthropreneurship ==

As an emerging field, there is no defined operating model or strategic approach. Still, philanthropreneurship marks the transition from a grant and donation model to a profit model with predefined objectives and constant focus on quantifiable results. This form of "commercial giving" demands measurable return, which is why opportunities are assessed and evaluated according to different criteria. Factors such as profitability and quantifiable performance are fixed requirements for granting support. The shift towards more business-minded professional management has also resulted in a greater focus on long-term goals. Philanthropic buying has a limited reach, which is why philanthropreneurs do not dispose of surplus funds, but tailor investments by actively leveraging their class advantages like wealth, time, business expertise, networks, and reputation. Philanthropreneurs include Bill and Melinda Gates, Steve Case, Pierre Omidyar and Bill Clinton. Philanthropreneurship is now supported by emerging new business models and legislation including low-profit limited liability companies (L3Cs), created by a tax attorney experienced in entrepreneurial finance named Marc J. Lane. ==Controversies==

Non-profit organizations have historically found it challenging to trust and accept the concept of "philanthro-capitalism". Critics note that many metrics of the commercial sectors, such as return on investment lack applicability to non-profit organizations. The performance assessment of philanthropreneurial ventures remains an area of concern for many, as there is no precise measurement for social impact. For example, in "impact investing", a core practice of philanthropreneurship, project selection for funding is based on estimated social impact and financial return. From an ethical context, many critics argue that the incorporation of a business model commercializes the non-profit sector and further increases the risk of distorting the organization's mission and principles, alienating the very people it would help. ==Practitioners of philanthropreneurship==

• Amr Al-Dabbagh • Steve Case • Bill Clinton • Bill and Melinda Gates Foundation • Pierre Omidyar ==See also==