Philanthrocapitalism or philanthropic capitalism is a way of doing philanthropy, which mirrors the way that business is done in the for-profit world. It may involve venture philanthropy that actively invests in social programs to pursue specific philanthropic goals that would yield return on investment over the long term, or in a more passive form whereby ‘social investors’ benefit from investing in socially-responsible programs.
The term was coined by Matthew Bishop and Michael Green in their book ‘Philanthrocapitalism: How the Rich Can Save The World.’ The book was endorsed by Bill Clinton, who wrote in its foreword that this concept drives the Clinton Foundation. The shift in implementing business models in charity is not a new concept – John D. Rockefeller and Andrew Carnegie sought to apply their business strategies in their philanthropy in the 20th century. Since then, a significant increase in charity spending by other organizations such as the Bill & Melinda Gates Foundation and Chan Zuckerberg Initiative, both described as examples of philanthrocapitalism, has been noted.
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The Daily Omnivore 