Capital in the Communities

If you had asked me to define a community foundation two years ago, I would’ve asked you “what’s a community foundation?”

After working with The Pittsburgh Foundation, I have a way stronger idea of the impact a community or other foundation has on the people, estates, and entities they serve.

Now that I am on a quest to find a new position in human resources due to my re-move to Chicago, I’ve begun thinking about the type of company that best suits my needs and interests. In the past, I’ve been drawn to startups and small businesses since I have an entrepreneurial mindset and want to feel like my voice and ideas matter. I also love nonprofits since I admire the impactful work they accomplish. But there are certain areas that these companies are lacking.

Though the lack of structure in startups and small companies/nonprofits leave more room for entrepreneurial contributors to do their thing, it also means there may be less career development, learning opportunities, and compensation. I just received my master’s degree in human resources management, but I’m eager to continue my learning journey and earn my HRCI and/or SHRM certifications and continue to learn from speakers at conferences.

So I’ve looked into ways the community foundation model can be applied to medium and large enterprises and, indirectly, to my career. What I discovered was that angel investors, venture capital firms, and other philanthropic entities, such as charities, followed this same model, with some differences to be imagined. But each have their own strengths and weaknesses.

Hence, this is my long-winded way of me saying that this article by Harvard Business Review is a worthwhile read to understand the differences between foundations and VC firms.

Credit: https://hbr.org/1997/03/virtuous-capital-what-foundations-can-learn-from-venture-capitalists