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The SV2 revolution
'Venture philanthropy' pioneered 10 years ago by Silicon Valley Social Venture Fund

by Jennifer Pence

Silicon Valley is a hotbed not only of venture capital but also of venture philanthropy — the practice of providing both money and expertise to nonprofits in much the same way that venture capital firms fund and guide start-up companies.

One of the key innovators in this area, Silicon Valley Social Venture Fund (SV2), is about to celebrate its 10-year anniversary of bringing a new mentality to philanthropy in the Bay Area.

SV2 is a network of philanthropists that borrows heavily in its thinking, beginning with its terminology, from the corporate and high-tech worlds. Members of this donor network are called "partners," and not only write checks but also contribute their time and talents to strengthen nonprofits' organizational capacity in areas such as marketing and communications, fund raising and strategic planning.

The fund, headquartered out of the Silicon Valley Community Foundation in Mountain View, has a dual mission: to help deserving nonprofits, and to enable partners to learn about issues facing Silicon Valley and address those issues through philanthropy.

"SV2 has been a wonderful experience, allowing me to grow from a philanthropy novice to a board member of several leading nonprofits," says Lance Fors, SV2 vice chairman. "In the process, I have met dozens of new interesting and passionate people."

Partners come from a variety of professions (doctors, lawyers, full-time parents, tech entrepreneurs, business professionals) and range in age from their 20s through their 70s. But they all share an interest in making an impact in the community — and in the ability to contribute funds ranging from $3,000 per year at the introductory level up to $15,000 or more per year. Most live in Silicon Valley.

Each year, the partners organize into affinity groups based on areas of interest, which change from year to year. This year's groups are focused on education, self-reliance, international issues and the environment. Each group then chooses relevant organizations to award grants to out of the pooled money from SV2. Current grants are typically around $50,000 each. Over the past 10 years, SV2 has awarded grants totaling over $2.2 million.

The level of participation in the process is flexible. Some of the 150 partners are highly involved — attending all grant meetings and spending significant time working with the nonprofits — while others have a minimal level of involvement. Some partners also leave SV2 and rejoin years later when their life situation allows.

"The power of SV2's venture philanthropy model is that partners work together to put their time and expertise into selecting grantees and engaging with them to take their work to the next level of impact," explains Lindsay Austin Louie, executive director. "Partners are able to see organizations benefit from a grant that is much larger than they could give by themselves and enjoy being part of a philanthropic community."

Coming up on its 10-year anniversary, SV2 is taking a slightly new direction organizationally by becoming an independent nonprofit (it formerly was under the umbrella of the Silicon Valley Community Foundation). SV2 is also continually seeking new partners to bring in fresh perspectives. Prospective partners typically meet with the executive director and one to two board members to learn more about the group, then fill out a short application detailing areas of interest.

If you are interested in learning more about becoming a partner, see the Web site at www.sv2.org, or e-mail sv2@siliconvalleycf.org.

Jennifer Pence lives in Mountain View. She is founder of the Windmill Giving Circle and founder and owner of Academic Springboard, a tutoring group. She can be reached at japence@hotmail.com.