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In a Denver Post article, philanthropy is discussed as the ultimate "risk capital." According to Bill Gates, renowned business magnate and philanthropist, philanthropy is taking much bigger risks than business. The challenges that philanthropy tackle are not easy; if these problems are that easy to solve, Gates added, business and government can come in and solve them.
Unlike the business or government, philanthropy is unaccountable for the performance of donated funds. This means that donors have major freedom to take big risks in experimenting to find solutions to the world's most difficult problems.
Typically, philanthropic capital is money that is no longer owned by the donor. The funds are now transferred to a separate 501c(3) nonprofit organization that actually owns the funds – such as a foundation or donor-advised fund.
Philanthropic organizations, nonprofits, and charities are now taking big risks in an effort to solve regional, national and global challenges.
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Selected Foundation News
A customized collection of news from foundations from around the Web.
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