Warren Buffett's decision to hand over tons of money to a trusted organization is an old-school way of charitable giving: Take this check, put it to good use.
Increasingly, though, wealthy donors are opting for a more hands-on approach, giving money on the condition that the charity take their management advice, too. In many cases, fledgling nonprofits, in exchange for new funding, agree to let benefactors overhaul their business models, make personnel changes and install financial controls.
Donors often see it as the way to get the best bang for their charitable buck by building sustainable organizations, not simply funding pet programs.
These efforts have roots in the "venture philanthropy" wave of the 1990s, when newly rich dot-com executives looked at nonprofits much as venture capitalists eye start-ups. Many of their ideas fizzled when the technology bubble burst and the stock market tanked. Some survived, though, and today the field is enjoying a battle-hardened renaissance.
[Excerpt of an article by Christopher Conkey The Wall Street Journal]
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