Title of the session: How to set up a venture philanthropy organization- the SVP way

Speakers:

Akila Krishnakumar, Chairman, SVP Bangalore

Takuya Okamoto, Executive Director, SVP Tokyo

Catherina Toh, Chair, SVP Melbourne

Paul Shoemaker, Executive Connector, SVP International

Summary of the content of the session:

Paul introduced Social Venture Partner (SVP), their origins and how they grew as a global movement.

He outlined that SVP serves mainly as a platform to offer skills based volunteering. They focus on

capacity building on a long term basis. They are known as a network that connects people in

philanthropic circles similar to AVPN, except that they focus on serving through skills based

volunteering.

Akila Krishnakumar

The Bangalore SVP was started 2 years ago. She shared her motivation that SVP was started to get a

sense of direction on how to do good. She highlighted the headline grabbing numbers originating

from India and the serious problem of lack of jobs in the job market. The problem was attributed to

a lack of rural job creation. She introduced SVP Bangalore as a volunteer based organization with

middle tier philanthropist as the target. She explained that there is no place for middle tier

philanthropist to go to in India, unlike large tier philanthropist. The organization comprises of

professionals who have made it in Bangalore. For India, SVPs goal is to be in 20 cities and create 1

million jobs by 2020. They have 160 partners in 3 cities so far.

Takuya Okamoto

Takuya left his consulting job at PWC to join SVP Tokyo to be with like-minded individuals. SVP Tokyo

was established in 2003 and is the first SVP in Asia. He explained that it comprises of young

professionals, mainly ages 25-45 years old, rather than wealthy businessmen. He noted that this

type of demography is due to the changing expectations of younger professionals in Japan.

Catherina Toh

Catherina chairs the board of SVP Melbourne which was only established 18 months ago. It is a

volunteer based organization. It was started because the group felt that the time was ripe. She

contextualized SVP in the context of Australia, where the giving scene is still relatively small due to

strong government social policies. SVP Melbourne currently has 27 partners, with each partner

contributing $5000 per year. Money is important in the giving process but the more important point

being the contribution of business and professional skills.

What are some notable success stories in your SVPs?

Catherina Toh

It took 9 months to get all the necessary paperwork cleared to start SVP Melbourne. The greatest

challenge is having an all-volunteer based organization. The greatest success is that none of the

partners come from non-profit sector. Therefore, they are all diving into the sector for the first time

together.

Takuya Okamoto

The Japanese government did not have sufficient resources to deal with the effects of the 2011

tsunami in 2011. SVP Tokyo was able to help 14 beneficiaries by partnering with a large range of

corporate investors such as Mitsubishi, Accenture and UBS.

Akila Krishnakumar

Partners make up the greatest part of the joy in SVP. Getting partners might be difficult but getting

an ambassador in the form of Friends of SVP is much easier and also helpful. SVP provides a large

room for experimentation.

What is the impact of volunteering in SVP for partners?

Catherina Goh

SVP Melbourne gets partners to be involved through skill sets, opening up a whole new dimension

on their personal lives. Partners get to utilize skill sets gained in their work with MNCs in local NGOs,

with very clear outcomes that resonates with the partners.

Takuya Okamoto

Ken Ito used to be a partner in SVP Tokyo and started various interesting projects. His journey

started as a partner in SVP to a leader in social sector.

Akila Krishnakumar

Partners from SVP Bangalore take knowledge from SVP back to their organizations and do amazing

things with their own organizations. They gain as much as they give. Being shameless in asking for

help. It takes very little for the partners to give as giving is based on the social connection that the

partners have. Partners also help each other realize their dreams as they interact in SVP.

Questions and Answers:

Question 1: How do you select an organizations to support? Who takes on the role to filter the

landscape?

Catherina

Personal networks. Australian Post has their own pool of grants. SVP Melbourne leveraged on their

network and got a list of 25 from them. A SVP Grant Committee was set up shortly after, and lead

partners were assigned to each organizations.

Akila

Importance is really on the lead partner. And also, the need to partner with other organization for

sourcing. In India, the organizations were sourced through Ashoka during the first year. Today we

have our own database of potential organizations.

Takuya

During the first 3 years of operations, SVP Tokyo mainly organized events for the social sector and

did not engage in making any grants. This helped us establish a pool of potential organizations to

work with. The selection process is conducted by all the partners, which makes it difficult to get all

partners to agree. SVP Tokyo has a good portfolio of investees. In fact, the winner of the best social

venture in Japan according to a leading local newspaper is one of SVP Tokyos investees.

Question 2: How do you deliver capacity building?

Paul

Lead partner attached to each organization. Decided based on best fit to the organization.

Akila

Lead partner (2 instead of 1) spends at least one day in organization. 6 areas identified as broadly

covering all areas an NGO need as community practice. SVP then get people with expertise across all

areas to help.

Catherina

Partners reach to personal contacts if they do not have the requisite skill.

Takuya

Most important point in capacity building is relationship. Requires 3 months after relationship is

established with organization.

Question 3: 160 investors is a large network. How to get partners on board?

Akila

The importance lies in identifying a founding partner in a city who has convening power. There is a

need to talk to the person for 1-2 years before they can be completely bought in. Then, not more

than

10 partners in a city, where they are the founding partners. They craft mission and direction.

Following then, they can then proceed.

Question 4: Are there other sources of donors? Like foundations?

Catherina

Community funds are very state based. SVP Melbourne wanted to explore if they could be under a

community fund. SVP Melbourne wants to partner community fund to get more money, but do not

want to relinquish autonomy in grant disbursement to stay true to the mission of the organization.

Question 5: Are there conditionalities attached to the grant? Are there instances where a chapter

cannot find an optimal partner?

Paul

Unrestricted funding is a mantra. Goals together-yes. How to achieve it? Up to the NGO. In the

context of the grant, not pre grant. SVP do not do startups generally, some might have incubator.

SVP has a high degree of autonomy in crafting their direction.

Question 6: How to nail down commitment of the partners? Especially at the initial stage?

Catherina

Depends on motivation of the partner. Depends on the lead partner. People do drop out. We have

no choice because it is a volunteer organization. 2 lead partners instead of 1 is selected to try to

combat the case where 1 drops out.

Paul

Utilize peer pressure to get people commit.

Question 7: Do you have suggestion for funding social causes which are business in nature?

Akila

SVP is best as a seed investor. We advise organizations which could potentially be businesses to be

businesses and try to find them business partner. If a firm becomes profitable, SVP Bangalore stops

financial support and grant disbursement. SVP Bangalore has no different criteria from other

organizations in selecting grantees, except being stricter with the business/social division.

Takuya

Once we start the investment, after 1 year due diligence in grant model, we invest in equity model.

Depends a lot on the people running the organization. We have a total support duration of 6 years.

We also support for profit model. Selection based a lot based on ambition and peoples capability