Venture Philanthropy: A Clarification

To the Editor:

Ben Gose’s article on the small but growing impact of “venture philanthropy” (“Supporters Say Venture Philanthropy Still Thrives, Even if Reach Is Limited,” October 14) provides an excellent example of how some funders are increasingly seeking to achieve measurable results with their grant making — a goal that our foundation has also been working very hard to achieve.

I should point out, however, that Mr. Gose misinterpreted my remarks as “pointed criticism” when I merely cautioned that one shouldn’t try to quantify outcomes more precisely than can realistically be measured.

In fact, cost-benefit analysis or, more accurately, an expected-value analysis is at the very core of sound, strategic grant making. Contrary to Mr. Gose’s implication, the Hewlett Foundation supports REDF (to the tune of $2-million) precisely because, in addition to being a well-managed organization, it uses the concept of “social return on investment” to achieve measurable social impact.

Paul Brest
President
William and Flora Hewlett Foundation
Menlo Park, Calif.