Venture philanthropy - also known as angel philanthropy or enterprise philanthropy - uses  traditional venture capital strategies to  achieve philanthropic goals. For example, the Hyatt Family Foundation recently partnered with  the Sick Children's Hospital in Toronto to fund potentially world-changing research that helps treat disease - roughly $100,000 is being invested over a three-year period. A great deal of investor oversight and involvement, along with detailed financial plans customized to each unique organization, are hallmarks of venture philanthropy. While there's no set way for investors to go about venture philanthropy, there are several typical steps they can take to achieve their goals. 

The selection process 
The selection process can be considered the first stage of venture philanthropy,  Rezwan Manji explains. It essentially involves investors researching and weighing up various organizations to find the most suitable one to partner with. During this stage, investors look at multiple relevant aspects, such as the business model and managerial team, along with  the organization's social impact. Above all, investors are looking to determine the partnership's potential for large-scale growth. It's also important for investors to invest in organizations aligned with their own interests - for example, challenge grants (or matching grants) are a popular way to do this.

Providing financial capital
Once the right organization has been selected, the next step is investing in it. Venture philanthropists typically invest large amounts in order to cover the organization's main expenses throughout the entirety of the partnership (which usually lasts at least three to five years). By providing unlimited financial capital, the investor can help ensure the organization can succeed financially in the most important areas. Additionally, both the organization and the donor work to measure the success of investment throughout the partnership.  

The importance of non-financial support
 The role of the venture philanthropist often extends far beyond mere financial assistance. In many cases, the investor will join the organization's board of directors and have an input in both the operational and managerial elements of the organization. Additionally, venture philanthropists provide further support focused on growing the organization. For example, they may provide management with executive, hiring, and coaching advice, measure growth and performance, and devise ways to market new projects. Having intimate involvement with the organization allows venture philanthropists to provide the necessary tailored support in order to  best drive overall growth. Before the end of the partnership, the investor works with the organization to create an effective and sustainable funding model.  

Ultimately, venture philanthropists first work to optimize the organization's operations before helping them grow. Likewise, partnerships work best when nonprofits invest in their donors at the same time - this can simply mean taking the time to learn which aspects of the organization appeal to each donor the most. The best results are manifested when an investor partners with an organization strongly aligned with their interests.